[Federal Register Volume 84, Number 162 (Wednesday, August 21, 2019)]
[Notices]
[Pages 43585-43588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18012]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-026, C-570-027]
Corrosion-Resistant Steel Products From the People's Republic of
China: Initiation of Anti-Circumvention Inquiries on the Antidumping
Duty and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
Summary Based on available information, the Department of Commerce
(Commerce) is self-initiating country-wide anti-circumvention inquiries
to determine whether imports of corrosion-resistant steel products
(CORE) completed in Costa Rica, Guatemala, Malaysia, South Africa, and
the United Arab Emirates (UAE) (collectively, third countries) using
hot-rolled steel (HRS) and cold-rolled steel (CRS) flat products
manufactured in the People's Republic of China (China) are
circumventing the antidumping duty (AD) and countervailing duty (CVD)
orders on CORE from China.
DATES: Applicable August 21, 2019.
FOR FURTHER INFORMATION CONTACT: Brendan Quinn at (202) 482-5848, AD/
CVD Operations, Office III or Justin Enck at (202) 482-1614, Office of
Policy, Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On June 3, 2015, AK Steel Corporation, ArcelorMittal USA LLC,
California Steel Industries, Inc., Nucor Corporation, Steel Dynamics,
Inc., and
[[Page 43586]]
United States Steel Corporation filed petitions seeking the imposition
of antidumping and countervailing duties on imports of CORE from China,
India, Italy, the Republic of Korea, and Taiwan.\1\ Following
Commerce's affirmative determinations of dumping and countervailable
subsidies,\2\ and the U.S. International Trade Commission's (ITC)
finding of material injury,\3\ Commerce issued AD and CVD orders on
imports of CORE from China.\4\
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\1\ See Certain Corrosion-Resistant Steel Products from Italy,
India, the People's Republic of China, the Republic of Korea, and
Taiwan: Initiation of Less-Than-Fair-Value Investigations, 80 FR
37228 (June 30, 2015); Certain Corrosion-Resistant Steel Products
from the People's Republic of China, India, Italy, the Republic of
Korea, and Taiwan: Initiation of Countervailing Duty Investigations,
80 FR 37223 (June 30, 2015).
\2\ See Certain Corrosion-Resistant Steel Products from the
People's Republic of China: Final Determination of Sales at Less
Than Fair Value, and Final Affirmative Critical Circumstances
Determination, in Part, 81 FR 35316 (June 2, 2016); Countervailing
Duty Investigation of Certain Corrosion-Resistant Steel Products
from the People's Republic of China: Final Affirmative
Determination, and Final Affirmative Critical Circumstances
Determination, in Part, 81 FR 35308 (June 2, 2016).
\3\ See Certain Corrosion-Resistant Steel Products from China,
India, Italy, Korea, and Taiwan; Determinations, 81 FR 47177 (July
20, 2016); see also Certain Corrosion-Resistant Steel Products from
China, India, Italy, Korea, and Taiwan; Inv. No. 701-TA-534-537 and
731-TA-1274-1278, USITC Pub. 4620 (July 2016) (Final) (hereinafter,
USITC CORE Report).
\4\ See Certain Corrosion-Resistant Steel Products from India,
Italy, the People's Republic of China, the Republic of Korea and
Taiwan: Amended Final Affirmative Antidumping Determination for
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25,
2016); Certain Corrosion-Resistant Steel Products from India, Italy,
Republic of Korea and the People's Republic of China: Countervailing
Duty Order, 81 FR 48387 (July 25, 2016) (collectively, Orders).
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Scope of the Orders
The products covered by the Orders are certain flat-rolled steel
products, either clad, plated, or coated with corrosion-resistant
metals (CORE). For a full description of the scope of these orders, see
the ``Scope of the Orders,'' in the Appendix to this notice.
Prior Circumvention Finding
On November 14, 2016, pursuant to section 781(b) of the Act and 19
CFR 351.225(h), Commerce initiated anti-circumvention inquiries on the
Orders to determine whether certain imports of CORE completed in the
Socialist Republic of Vietnam (Vietnam) using HRS and CRS flat products
manufactured in China were circumventing the Orders.\5\ Following the
completion of the inquiries, on May 23, 2018, Commerce determined that
imports of CORE completed in Vietnam using HRS or CRS manufactured in
China were circumventing the Orders and, therefore, determined that
such imports fall within the scope of the Orders.\6\
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\5\ See Certain Corrosion-Resistant Steel Products from the
People's Republic of China: Initiation of Anti-Circumvention
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 81
FR 79454 (November 14, 2016).
\6\ See Certain Corrosion-Resistant Steel Products from the
People's Republic of China: Affirmative Final Determination of
Circumvention of the Antidumping Duty and Countervailing Duty
Orders, 83 FR 23895 (May 23, 2018) (China/Vietnam CORE Final
Determination).
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Merchandise Subject to the Anti-Circumvention Inquiries
These anti-circumvention inquiries cover CORE completed in the
third countries using HRS or CRS manufactured in China and subsequently
exported from the third countries to the United States.
Initiation of Anti-Circumvention Inquiries
Section 781(b)(1) of the Tariff Act of 1930, as amended (the Act),
provides that Commerce may find circumvention of an AD or CVD order
when merchandise of the same class or kind subject to the order is
completed or assembled in a foreign country other than the country to
which the order applies. In conducting anti-circumvention inquiries,
under section 781(b)(1) of the Act, Commerce relies on the following
criteria: (A) Merchandise imported into the United States is of the
same class or kind as any merchandise produced in a foreign country
that is the subject of an antidumping or countervailing duty order or
finding, (B) before importation into the United States, such imported
merchandise is completed or assembled in another foreign country from
merchandise which is subject to the order or merchandise which is
produced in the foreign country that is subject to the order, (C) the
process of assembly or completion in the foreign country referred to in
section (B) is minor or insignificant, (D) the value of the merchandise
produced in the foreign country to which the AD or CVD order applies is
a significant portion of the total value of the merchandise exported to
the United States, and (E) the administering authority determines that
action is appropriate to prevent evasion of such order or finding.
In determining whether or not the process of assembly or completion
in a third country is minor or insignificant under section 781(b)(1)(C)
of the Act, section 781(b)(2) of the Act directs Commerce to consider:
(A) The level of investment in the foreign country, (B) the level of
research and development in the foreign country, (C) the nature of the
production process in the foreign country, (D) the extent of production
facilities in the foreign country, and (E) whether or not the value of
processing performed in the foreign country represents a small
proportion of the value of the merchandise imported into the United
States. However, no single factor, by itself, controls Commerce's
determination of whether the process of assembly or completion in a
third country is minor or insignificant.\7\ Accordingly, it is
Commerce's practice to evaluate each of these five factors as they
exist in the third country, depending on the totality of the
circumstances of the particular anti-circumvention inquiry.\8\
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\7\ See Statement of Administrative Action accompanying the
Uruguay Round Agreements Act (SAA), H.R. Doc. No. 103-316 (1994) at
893.
\8\ See Uncovered Innerspring Units from the People's Republic
of China: Final Affirmative Determination of Circumvention of the
Antidumping Duty Order, 83 FR 65626 (December 21, 2018), and
accompanying Issues and Decision Memorandum at 4.
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Furthermore, section 781(b)(3) of the Act sets forth additional
factors to consider in determining whether to include merchandise
assembled or completed in a third country within the scope of an
antidumping and/or countervailing duty order. Specifically, Commerce
shall take into account such factors as: (A) The pattern of trade,
including sourcing patterns; (B) whether the manufacturer or exporter
of the merchandise is affiliated with the person who, in the third
country, uses the merchandise to complete or assemble the merchandise
which is subsequently imported into the United States; and (C) whether
imports of the merchandise into the third country have increased after
the initiation of the investigation that resulted in the issuance of
such order or finding.
We have analyzed the criteria above and from available information
we determine, pursuant to section 781(b) of the Act and 19 CFR
351.225(b) and (h), that initiation of anti-circumvention inquiries is
warranted to determine whether certain imports of CORE, completed in
Costa Rica, Guatemala, Malaysia, South Africa, and the UAE using HRS
and CRS flat products manufactured in China, are circumventing the
Orders. For a full discussion of the basis for our decision to initiate
these anti-circumvention inquiries, see the Anti-Circumvention
Initiation Memo.\9\ As explained in the
[[Page 43587]]
Anti-Circumvention Initiation Memo, the available information warrants
initiating these anti-circumvention inquiries on a country-wide basis.
Commerce has taken this approach in a prior anti-circumvention inquiry,
where the facts warranted initiation on a country-wide basis.\10\
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\9\ See Memorandum, ``Certain Corrosion-Resistant Steel Products
from the People's Republic of China: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing
Duty Orders'' (Anti-Circumvention Initiation Memo). This memo is a
public document that is dated concurrently with, and hereby adopted
by, this notice and on file electronically via ACCESS. Access to
documents filed via ACCESS is also available in the Central Records
Unit, Room B8024 of the main Department of Commerce building.
\10\ See, e.g., Certain Corrosion-Resistant Steel Products from
the Republic of Korea and Taiwan: Initiation of Anti-Circumvention
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83
FR 37785 (August 2, 2018); see also Carbon Steel Butt-Weld Pipe
Fittings from the People's Republic of China: Initiation of Anti-
Circumvention Inquiry on the Antidumping Duty Order, 82 FR 40556,
40560 (August 25, 2017) (stating at initiation that Commerce would
evaluate the extent to which a country-wide finding applicable to
all exports might be warranted); Certain Corrosion-Resistant Steel
Products from the People's Republic of China: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing
Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at
initiation that Commerce would evaluate the extent to which a
country-wide finding applicable to all exports might be warranted).
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Consistent with the approach in the prior anti-circumvention
inquiry that was initiated on a country-wide basis, Commerce intends to
issue questionnaires to solicit information from producers and
exporters in each of the third countries concerning their shipments of
CORE to the United States and the origin of any imported HRS and CRS
being processed into CORE. A company's failure to respond completely to
Commerce's requests for information may result in the application of
partial or total facts available, pursuant to section 776(a) of the
Act, which may include adverse inferences, pursuant to section 776(b)
of the Act.
Notification to Interested Parties
In accordance with 19 CFR 351.225(b), Commerce determines that
available information warrants initiating these anti-circumvention
inquiries to determine whether certain imports of CORE, completed in
Costa Rica, Guatemala, Malaysia, South Africa, and the UAE using HRS
and CRS flat products manufactured in China, are circumventing the
Orders. Accordingly, Commerce hereby notifies all parties on Commerce's
scope service list of the initiation of anti-circumvention inquiries.
In addition, in accordance with 19 CFR 351.225(f)(1)(i) and (ii), in
this notice of initiation issued under 19 CFR 351.225(b), we have
included a description of the product that is the subject of these
anti-circumvention inquiries (i.e., CORE completed in the third
countries using HRS and CRS flat products manufactured in China), and
an explanation of the reasons for Commerce's decision to initiate these
anti-circumvention inquiries, as provided above. Commerce will
establish a schedule for questionnaires and comments on the issues in
these inquiries.
In accordance with 19 CFR 351.225(l)(2), if Commerce issues
preliminary affirmative determinations, we will then instruct U.S.
Customs and Border Protection to suspend liquidation and require a cash
deposit of estimated antidumping and countervailing duties, at the
applicable rate, for each unliquidated entry of the merchandise at
issue, entered or withdrawn from warehouse for consumption on or after
the date of initiation of the inquiries. Commerce intends to issue its
final determinations within 300 days of the date of publication of this
initiation, in accordance with section 781(f) of the Act and 19 CFR
351.225(f)(5).
This notice is published in accordance with section 781(b) of the
Act and 19 CFR 351.225(f).
Dated: August 12, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Orders
The products covered by these Orders are certain flat-rolled
steel products, either clad, plated, or coated with corrosion-
resistant metals such as zinc, aluminum, or zinc-, aluminum-,
nickel- or iron-based alloys, whether or not corrugated or painted,
varnished, laminated, or coated with plastics or other non-metallic
substances in addition to the metallic coating. The products covered
include coils that have a width of 12.7 mm or greater, regardless of
form of coil (e.g., in successively superimposed layers, spirally
oscillating, etc.). The products covered also include products not
in coils (e.g., in straight lengths) of a thickness less than 4.75
mm and a width that is 12.7 mm or greater and that measures at least
10 times the thickness. The products covered also include products
not in coils (e.g., in straight lengths) of a thickness of 4.75 mm
or more and a width exceeding 150 mm and measuring at least twice
the thickness. The products described above may be rectangular,
square, circular, or other shape and include products of either
rectangular or non-rectangular cross-section where such cross-
section is achieved subsequent to the rolling process, i.e.,
products which have been ``worked after rolling'' (e.g., products
which have been beveled or rounded at the edges). For purposes of
the width and thickness requirements referenced above:
(1) where the nominal and actual measurements vary, a product is
within the scope if application of either the nominal or actual
measurement would place it within the scope based on the definitions
set forth above, and
(2) where the width and thickness vary for a specific product
(e.g., the thickness of certain products with non-rectangular cross-
section, the width of certain products with nonrectangular shape,
etc.), the measurement at its greatest width or thickness applies.
Steel products included in the scope of these Orders are
products in which: (1) Iron predominates, by weight, over each of
the other contained elements; (2) the carbon content is 2 percent or
less, by weight; and (3) none of the elements listed below exceeds
the quantity, by weight, respectively indicated:
2.50 percent of manganese, or
3.30 percent of silicon, or
1.50 percent of copper, or
1.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
2.00 percent of nickel, or
0.30 percent of tungsten (also called wolfram), or
0.80 percent of molybdenum, or
0.10 percent of niobium (also called columbium), or
0.30 percent of vanadium, or
0.30 percent of zirconium
Unless specifically excluded, products are included in this
scope regardless of levels of boron and titanium.
For example, specifically included in this scope are vacuum
degassed, fully stabilized (commonly referred to as interstitial-
free (IF)) steels and high strength low alloy (HSLA) steels. IF
steels are recognized as low carbon steels with micro-alloying
levels of elements such as titanium and/or niobium added to
stabilize carbon and nitrogen elements. HSLA steels are recognized
as steels with microalloying levels of elements such as chromium,
copper, niobium, titanium, vanadium, and molybdenum.
Furthermore, this scope also includes Advanced High Strength
Steels (AHSS) and Ultra High Strength Steels (UHSS), both of which
are considered high tensile strength and high elongation steels.
Subject merchandise also includes corrosion-resistant steel that has
been further processed in a third country, including but not limited
to annealing, tempering, painting, varnishing, trimming, cutting,
punching and/or slitting or any other processing that would not
otherwise remove the merchandise from the scope of the investigation
if performed in the country of manufacture of the in-scope corrosion
resistant steel.
All products that meet the written physical description, and in
which the chemistry quantities do not exceed any one of the noted
element levels listed above, are within the scope of these Orders
unless specifically excluded. The following products are outside of
and/or specifically excluded from the scope of these Orders:
Flat-rolled steel products either plated or coated with
tin, lead, chromium, chromium oxides, both tin and lead (terne
plate), or both chromium and chromium oxides (tin free steel),
whether or not painted, varnished
[[Page 43588]]
or coated with plastics or other non-metallic substances in addition
to the metallic coating;
Clad products in straight lengths of 4.7625 mm or more
in composite thickness and of a width which exceeds 150 mm and
measures at least twice the thickness; and
Certain clad stainless flat-rolled products, which are
three-layered corrosion-resistant flat-rolled steel products less
than 4.75 mm in composite thickness that consist of a flat-rolled
steel product clad on both sides with stainless steel in a 20%-60%-
20% ratio.
The products subject to the Orders are currently classified in
the Harmonized Tariff Schedule of the United States (HTSUS) under
item numbers: 7210.30.0030, 7210.30.0060, 7210.41.0000,
7210.49.0030, 7210.49.0091, 7210.49.0095, 7210.61.0000,
7210.69.0000, 7210.70.6030, 7210.70.6060, 7210.70.6090,
7210.90.6000, 7210.90.9000, 7212.20.0000, 7212.30.1030,
7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000,
7212.40.5000, 7212.50.0000, and 7212.60.0000.
The products subject to the Orders may also enter under the
following HTSUS item numbers: 7210.90.1000, 7215.90.1000,
7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530,
7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060,
7217.90.5090, 7225.91.0000, 7225.92.0000, 7225.99.0090,
7226.99.0110, 7226.99.0130, 7226.99.0180, 7228.60.6000,
7228.60.8000, and 7229.90.1000.
The HTSUS subheadings above are provided for convenience and
customs purposes only. The written description of the scope of the
Orders is dispositive.
[FR Doc. 2019-18012 Filed 8-20-19; 8:45 am]
BILLING CODE 3510-DS-P