[Federal Register Volume 84, Number 162 (Wednesday, August 21, 2019)]
[Notices]
[Pages 43581-43583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18013]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-583-856]
Certain Corrosion-Resistant Steel Products From Taiwan:
Initiation of Anti-Circumvention Inquiry on the Antidumping Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: Based on available information, the Department of Commerce
(Commerce) is self-initiating a country-wide anti-circumvention inquiry
to determine whether imports of corrosion-resistant steel products
(CORE), completed in Malaysia using hot-rolled steel (HRS) and cold-
rolled steel (CRS) flat products manufactured in Taiwan, are
circumventing the antidumping duty (AD) order on CORE from Taiwan.
DATES: Applicable August 21, 2019.
FOR FURTHER INFORMATION CONTACT: Brendan Quinn at (202) 482-5848, AD/
CVD Operations, Office III or Barb Rawdon at (202) 482-0474, 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 United States Steel Corporation filed petitions seeking
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 determination of dumping,\2\ and the
U.S. International Trade Commission's (ITC) finding of material
injury,\3\ Commerce issued an AD order on imports of CORE from
Taiwan.\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 Taiwan:
Final Determination of Sales at Less Than Fair Value and Final
Affirmative Determination of Critical Circumstances, in Part, 81 FR
35313 (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. Nos. 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) (Order).
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Scope of the Order
The products covered by the Order are certain flat-rolled steel
products, either clad, plated, or coated with corrosion-resistant
metals (CORE). For a full description of the scope of the Order, see
the ``Scope of the Order,'' in the Appendix to this notice.
Prior Circumvention Finding
On August 2, 2018, pursuant to section 781(b) of the Act and 19 CFR
351.225(h), Commerce initiated an anti-circumvention inquiry on the
Order to determine whether certain imports of CORE, completed in the
Socialist Republic of Vietnam (Vietnam) using HRS and CRS flat products
manufactured in Taiwan, were circumventing the Order.\5\ Following the
completion of the inquiry, on July 10, 2019, Commerce determined that
imports of CORE completed in Vietnam using HRS or CRS manufactured in
Taiwan were circumventing the Order and, therefore determined that such
imports fall within the scope of the Order.\6\
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\5\ See 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) (Taiwan/Vietnam CORE Initiation).
\6\ See Certain Corrosion-Resistant Steel Products from Taiwan:
Affirmative Preliminary Determination of Anti-Circumvention Inquiry
on the Antidumping Duty Order, 84 FR 32864 (July 10, 2019) and
accompanying Preliminary Decision Memorandum.
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Merchandise Subject to the Anti-Circumvention Inquiry
This anti-circumvention inquiry covers CORE completed in Malaysia
using HRS or CRS manufactured in Taiwan and subsequently exported from
Malaysia to the United States.
Initiation of Anti-Circumvention Inquiry
Section 781(b)(1) of the Tariff Act of 1930, as amended (the Act)
provides
[[Page 43582]]
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 an anti-circumvention inquiry is
warranted to determine whether certain imports of CORE, completed in
Malaysia using HRS and CRS flat products manufactured in Taiwan, are
circumventing the Order. For a full discussion of the basis for our
decision to initiate this anti-circumvention inquiry, see the Anti-
Circumvention Initiation Memo.\9\ As explained in the Anti-
Circumvention Initiation Memo, the available information warrants
initiating this anti-circumvention inquiry 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 Taiwan: Initiation of Anti-Circumvention Inquiry on the
Antidumping Duty Order'' (Anti-Circumvention Initiation Memo). This
memo is a public document 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 Taiwan/Vietnam CORE Initiation; 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 Malaysia 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 an anti-circumvention inquiry
to determine whether certain imports of CORE, completed in Malaysia
using HRS and CRS flat products manufactured in Taiwan, are
circumventing the Order. 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 this anti-circumvention inquiry (i.e., CORE completed in
Malaysia using HRS and CRS flat products manufactured in Taiwan), and
an explanation of the reasons for Commerce's decision to initiate this
anti-circumvention inquiry as provided above. Commerce will establish a
schedule for questionnaires and comments on the issues in this inquiry.
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 the estimated antidumping duty, 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 this inquiry. Commerce intends to issue its final
determination 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).
[[Page 43583]]
Dated: August 12, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Order
The products covered by this Order 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 this Order 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 this Order
unless specifically excluded. The following products are outside of
and/or specifically excluded from the scope of this Order:
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 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 Order 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 Order 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
Order is dispositive.
[FR Doc. 2019-18013 Filed 8-20-19; 8:45 am]
BILLING CODE 3510-DS-P