[Federal Register Volume 85, Number 20 (Thursday, January 30, 2020)]
[Notices]
[Pages 5387-5390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01719]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-865]


Certain Fabricated Structural Steel From Canada: Final Negative 
Countervailing Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are not being provided to producers and 
exporters of certain fabricated structural steel (fabricated structural 
steel) from Canada. The period of investigation is January 1, 2018 
through December 31, 2018.

DATES: Applicable January 30, 2020.

FOR FURTHER INFORMATION CONTACT: Whitley Herndon or Jacob Garten, AD/
CVD Operations, Office II, Enforcement

[[Page 5388]]

and Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: 
(202) 482-6274 or (202) 482-3342, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On July 12, 2019, Commerce published the Preliminary 
Determination.\1\ The petitioner in this investigation is the American 
Institute of Steel Construction Full Member Subgroup. In addition to 
the Government of Canada (GOC), the mandatory respondents in this 
investigation are Les Constructions Beauce-Atlas, Inc. (LC Beauce-
Atlas) and its cross-owned affiliates (collectively, Beauce-Atlas) and 
Les Industries Canatal Inc. (LI Canatal) and its cross-owned affiliates 
(collectively, Canatal).
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    \1\ See Certain Fabricated Structural Steel from Canada: 
Preliminary Negative Countervailing Duty Determination and Alignment 
of Final Determination with Final Antidumping Duty Determination, 84 
FR 33232 (July 12, 2019) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum (PDM).
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, are discussed in the 
Issues and Decision Memorandum, which is hereby adopted by this 
notice.\2\ The Issues and Decision Memorandum is a public document and 
is on file electronically via Enforcement and Compliance's Antidumping 
and Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at http://access.trade.gov, and 
is available to all parties in the Central Records Unit, Room B8024 of 
the main Commerce building. In addition, a complete version of the 
Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Fabricated Structural Steel from Canada,'' dated 
concurrently with this determination (Issues and Decision 
Memorandum).
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Scope of the Investigation

    The product covered by this investigation is fabricated structural 
steel from Canada. For a complete description of the scope of the 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\4\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. Commerce addressed these comments in the 
Preliminary Determination, wherein Commerce preliminarily modified the 
scope language.
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Certain Fabricated Structural Steel from Canada, Mexico, 
and the People's Republic of China: Initiation of Less-Than-Fair-
Value Investigations, 84 FR 7330, 7331 (March 4, 2019) (Initiation 
Notice).
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    In addition, certain interested parties commented on Commerce's 
preliminary scope decisions. For a summary of the product coverage 
comments and rebuttal comments submitted to the record for this final 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Final Scope Decision Memorandum.\5\ Based on 
the comments received, Commerce is modifying the scope language as it 
appeared in the Preliminary Determination. See the revised scope in 
Appendix I to this notice.
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    \5\ See Memorandum, ``Fabricated Structural Steel from Canada, 
Mexico, and the People's Republic of China: Final Scope Decision 
Memorandum,'' dated concurrently with, and hereby adopted by, this 
notice (Final Scope Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
that parties raised, and to which we responded in the Issues and 
Decision Memorandum, is attached to this notice as Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found countervailable, Commerce determines that there 
is a subsidy, i.e., a financial contribution by an ``authority'' that 
gives rise to a benefit to the recipient, and that the subsidy is 
specific.\6\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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Verification

    As provided in section 782(i) of the Act, in July and September 
2019, Commerce verified the subsidy information reported by Beauce-
Atlas, Canatal, the Government of Qu[eacute]bec, the GOC, Caisse de 
d[eacute]p[ocirc]t et Placement du Qu[eacute]bec, and [Eacute]nergir, 
L.P. We used standard verification procedures, including an examination 
of relevant accounting records and original source documents provided 
by the respondents.

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, minor corrections presented at verification, and our 
verification findings, we made certain changes to the subsidy rate 
calculations for both respondents. For a discussion of these changes, 
see the Issues and Decision Memorandum.

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated individual estimated subsidy rates for Beauce-Atlas and 
Canatal. We determine the total estimated net countervailable subsidy 
rates to be:

------------------------------------------------------------------------
             Producer/exporter                   Percent ad valorem
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Les Constructions Beauce-Atlas Inc........  0.22 (de minimis).
Les Industries Canatal Inc................  0.32 (de minimis).
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    Because the total estimated net countervailable subsidy rates are 
de minimis, we determine that countervailable subsidies are not being 
provided to producers or exporters of fabricated structural steel from 
Canada. We have not calculated an all-others rate pursuant to sections 
705(c)(1)(B) and (c)(5) of the Act because we have not reached an 
affirmative final determination. Because our final determination is 
negative, this proceeding is terminated in accordance with section 
705(c)(2) of the Act.

Disclosure

    Commerce intends to disclose the calculations performed in 
connection with this final determination within five days of the date 
of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

Suspension of Liquidation

    In the Preliminary Determination, the total net countervailable 
subsidy rates

[[Page 5389]]

for the individually examined respondents were de minimis and, 
therefore, we did not suspend liquidation of entries of fabricated 
structural steel from Canada.\7\ Because the estimated subsidy rates 
for both examined companies are de minimis in this final determination, 
we are not directing U.S. Customs and Border Protection to suspend 
liquidation of entries of fabricated structural steel from Canada, for 
countervailing duty purposes.
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    \7\ See Preliminary Determination.
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ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return/destruction of APO materials or conversion 
to judicial protective order is hereby requested. Failure to comply 
with the regulations and terms of an APO is a violation that is subject 
to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: January 23, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by the investigation is carbon and alloy 
fabricated structural steel. Fabricated structural steel is made 
from steel in which: (1) Iron predominates, by weight, over each of 
the other contained elements; and (2) the carbon content is two 
percent or less by weight. Fabricated structural steel products are 
steel products that have been fabricated for erection or assembly 
into structures, including, but not limited to, buildings 
(commercial, office, institutional, and multi-family residential); 
industrial and utility projects; parking decks; arenas and 
convention centers; medical facilities; and ports, transportation 
and infrastructure facilities. Fabricated structural steel is 
manufactured from carbon and alloy (including stainless) steel 
products such as angles, columns, beams, girders, plates, flange 
shapes (including manufactured structural shapes utilizing welded 
plates as a substitute for rolled wide flange sections), channels, 
hollow structural section (HSS) shapes, base plates, and plate-work 
components. Fabrication includes, but is not limited to cutting, 
drilling, welding, joining, bolting, bending, punching, pressure 
fitting, molding, grooving, adhesion, beveling, and riveting and may 
include items such as fasteners, nuts, bolts, rivets, screws, 
hinges, or joints.
    The inclusion, attachment, joining, or assembly of non-steel 
components with fabricated structural steel does not remove the 
fabricated structural steel from the scope.
    Fabricated structural steel is covered by the scope of the 
investigation regardless of whether it is painted, varnished, or 
coated with plastics or other metallic or non-metallic substances 
and regardless of whether it is assembled or partially assembled, 
such as into modules, modularized construction units, or sub-
assemblies of fabricated structural steel.
    Subject merchandise includes fabricated structural steel that 
has been assembled or further processed in the subject country or a 
third country, including but not limited to painting, varnishing, 
trimming, cutting, drilling, welding, joining, bolting, punching, 
bending, beveling, riveting, galvanizing, coating, 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 fabricated structural steel.
    All products that meet the written physical description of the 
merchandise covered by the investigation are within the scope of the 
investigation unless specifically excluded or covered by the scope 
of an existing countervailing duty order.
    Specifically excluded from the scope of the investigation are:
    1. Fabricated steel concrete reinforcing bar (rebar) if: (i) It 
is a unitary piece of fabricated rebar, not joined, welded, or 
otherwise connected with any other steel product or part; or (ii) it 
is joined, welded, or otherwise connected only to other rebar.
    2. Fabricated structural steel for bridges and bridge sections 
that meets American Association of State and Highway and 
Transportation Officials (AASHTO) bridge construction requirements 
or any state or local derivatives of the AASHTO bridge construction 
requirements.
    3. Pre-engineered metal building systems, which are defined as 
complete metal buildings that integrate steel framing, roofing and 
walls to form one, pre-engineered building system, that meet Metal 
Building Manufacturers Association guide specifications. Pre-
engineered metal building systems are typically limited in height to 
no more than 60 feet or two stories.
    4. Steel roof and floor decking systems that meet Steel Deck 
Institute standards.
    5. Open web steel bar joists and joist girders that meet Steel 
Joist Institute specifications.
    6. Also excluded from the scope of the investigation is 
scaffolding, and parts and accessories thereof, that comply with 
ANSI/ASSE A10.8-2011--Scaffolding Safety Requirements, and/or 
Occupational Safety and Health Administration regulations at 29 CFR 
part 1926 subpart L--Scaffolds. The outside diameter of the scaffold 
tubing covered by this exclusion ranges from 25mm to 150mm.
    7. Excluded from the scope of the investigation are access 
flooring systems panels and accessories, where such panels have a 
total thickness ranging from 0.75 inches to 1.75 inches and consist 
of concrete, wood, other non-steel materials, or hollow space 
permanently attached to a top and bottom layer of galvanized or 
painted steel sheet or formed coil steel, the whole of which has 
been formed into a square or rectangle having a measurement of 24 
inches on each side +/- 0.1 inch; 24 inches by 30 inches +/- 0.1 
inch; or 24 by 36 inches +/- 0.1 inch.
    8. Excluded from the investigation are the following types of 
steel poles, segments of steel poles, and steel components of those 
poles:
     Steel Electric Transmission Poles, or segments of such 
poles, that meet (1) the American Society of Civil Engineers 
(ASCE)--Design of Steel Transmission Pole Structures, ASCE/SEI 48 or 
(2) the USDA RUS bulletin 1724E-214 Guide specification for standard 
class Steel Transmission Poles. The exclusion for steel electric 
transmission poles also encompasses the following components 
thereof: Transmission arms which attach to poles; pole bases; angles 
that do not exceed 8'' x 8'' x 0.75''; steel vangs, steel brackets, 
steel flanges, and steel caps; safety climbing cables; ladders; and 
steel templates.
     Steel Electric Substation Poles, or segments of such 
poles, that meet the American Society of Civil Engineers (ASCE)--
Manuals and Reports on Engineering Practice No. 113. The exclusion 
for steel electric substation poles also encompasses the following 
components thereof: Substation dead end poles; substation bus 
stands; substation mast poles, arms, and cross-arms; steel brackets, 
steel flanges, and steel caps; pole bases; safety climbing cables; 
ladders; and steel templates.
     Steel Electric Distribution Poles, or segments of such 
poles, that meet (1) American Society of Civil Engineers (ASCE)--
Design of Steel Transmission Pole Structures, ASCE/SEI 48, (2) USDA 
RUS bulletin 1724E-204 Guide specification for steel single pole and 
H-frame structures, or (3) ANSI 05.1 height and class requirements 
for steel poles. The exclusion for steel electric distribution poles 
also encompasses the following components thereof: Distribution arms 
and cross-arms; pole bases; angles that do not exceed 8'' x 8'' x 
0.75''; steel vangs, steel brackets, steel flanges, and steel caps; 
safety climbing cables; ladders; and steel templates.
     Steel Traffic Signal Poles, Steel Roadway Lighting 
Poles, Steel Parking Lot Lighting Poles, and Steel Sports Lighting 
Poles, or segments of such poles, that meet (1) the American 
Association of State Highway and Transportation Officials (AASHTO)--
Specifications for Structural Supports for Highway Signs, 
Luminaires, and Traffic Signals, (2) any state or local derivatives 
of the AASHTO highway sign, luminaries, and

[[Page 5390]]

traffic signals requirements, or (3) American National Standard 
Institute (ANSI) C136--American National Standard for Roadway and 
Area Lighting Equipment standards. The exclusion for steel traffic 
signal poles, steel roadway lighting poles, steel parking lot 
lighting poles, and steel sports lighting poles also encompasses the 
following components thereof: Luminaire arms; hand hole rims; hand 
hole covers; base plates that connect to either the shaft or the 
arms; mast arm clamps; mast arm tie rods; transformer base boxes; 
formed full base covers that hide anchor bolts; step lugs; internal 
cable guides; lighting cross arms; lighting service platforms; 
angles that do not exceed 8'' x 8'' x 0.75''; stainless steel hand 
hole door hinges and wind restraints; steel brackets, steel flanges, 
and steel caps; safety climbing cables; ladders; and steel 
templates.
     Communication Poles, or segments of such poles, that 
meet (1) Telecommunications Industry Association (TIA) ANSI/TIA-222 
Structural Standards for Steel Antenna Towers and Antenna Supporting 
Structures, or (2) American Association of State Highway and 
Transportation Officials (AASHTO)--Specifications for Structural 
Supports for Highway Signs, Luminaires, and Traffic Signals. The 
exclusion for communication poles also encompasses the following 
components thereof: Luminaire arms; hand hole rims; hand hole 
covers; base plate that connects the pole to the foundation or arm 
to the pole; safety climbing cables; ladders; service ground 
platforms; step lugs; pole steps; steel brackets, steel flanges, and 
steel caps; angles that do not exceed 8'' x 8'' x 0.75''; coax, and 
safety brackets; subcomponent kits for antenna mounts weighing 80 
lbs. or less; service platforms; ice bridges; stainless steel hand 
hole door hinges and wind restraints; and steel templates.
     OEM Round or Polygonal Tapered Steel Poles, segments or 
shaft components of such poles, that meet the (1) ASCE 48 or AASHTO, 
(2) ANSI/TIA 222, (3) ANSI 05.1, (4) RUS bulletin 1724E-204, or (5) 
RUS bulletin 1724E-214. The exclusion for OEM round or polygonal 
tapered steel poles also encompasses the following components 
thereof: Subcomponent kits for antenna mounts weighing 80 lbs. or 
less; mounts and platforms; steel brackets, steel flanges, and steel 
caps; angles that do not exceed 8'' x 8'' x 0.75''; bridge kits; 
safety climbing cables; ladders; and steel templates.
    The inclusion or attachment of one or more of the above-
referenced steel poles in a structure containing fabricated 
structural steel does not remove the fabricated structural steel 
from the scope of the investigation. No language included in this 
exclusion should be read or understood to have applicability to any 
other aspect of this scope or to have applicability to or to exclude 
any product, part, or component other than those specifically 
identified in the exclusion.
    9. Also excluded from the scope of the investigation are 
Shuttering, Formworks, Propping and Shoring and parts and 
accessories thereof that comply with ANSI/ASSE A10.9--Safety 
Requirements for Concrete and Masonry Work and ACI-347--Recommended 
Practice for Concrete Formwork. For Shoring and propping made from 
tube, the outside diameter of the tubing covered by this exclusion 
ranges from 48mm to 250mm. For Shuttering and Formworks, the panel 
sizes covered by this exclusion range from 25mm x 600mm to 3000mm x 
3000mm.
    10. Also excluded from the scope of the investigation are 
consumer items for do-it-yourself assembly that are prepackaged for 
retail sale. For the purposes of this exclusion, prepackaged for 
retail sale means that, at the time of importation, all components 
necessary to assemble the merchandise, including all steel 
components, all accessory parts (e.g., screws, bolts, washers, 
nails), and instructions providing guidance on the assembly of the 
finished merchandise or directions on where to find such 
instructions, are enclosed in retail packaging, such that an end-
use, retail consumer could assemble the completed product with no 
additional components. The items may enter the United States in one 
or in multiple retail packages as long as all of the components are 
imported together.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under subheadings: 7308.90.3000, 7308.90.6000, and 
7308.90.9590.
    The products subject to the investigation may also enter under 
the following HTSUS subheadings: 7216.91.0010, 7216.91.0090, 
7216.99.0010, 7216.99.0090, 7222.40.6000, 7228.70.6000, 
7301.10.0000, 7301.20.1000, 7301.20.5000, 7308.40.0000, 
7308.90.9530, and 9406.90.0030.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Subsidies Valuation Information
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Whether There Was Sufficient Industry Support to 
Initiate this Investigation
    Comment 2: Whether to Apply Adverse Facts Available (AFA) to the 
Respondents
    Comment 3: Whether to Adjust the Respondents' Denominator
    Comment 4: Whether the Additional Depreciation for Class 1 and 
1B Assets Program is Specific and Provides a Countervailable Benefit
    Comment 5: Whether the Hydro-Qu[eacute]bec Industrial Systems 
(Energy Efficiency) Program is Specific and Provides a 
Countervailable Benefit
    Comment 6: Whether the Qu[eacute]bec Tax Credit for On-the-Job 
Training Program is Specific and Provides a Countervailable Benefit
    Comment 7: Whether the Qu[eacute]bec Additional Reduction in Tax 
Rate for Primary and Manufacturing Sectors Program is Specific and 
Provides a Countervailable Benefit
    Comment 8: Whether the [Eacute]nergir L.P. Efficiency Program is 
Specific and Provides a Countervailable Benefit
    Comment 9: Whether the EcoPerformance Program is Specific and 
Provides a Countervailable Benefit
    Comment 10: Whether the MEI Audit Industry 4.0 Program is 
Specific and Provides a Countervailable Benefit
    Comment 11: Whether the Qu[eacute]bec Scientific Research and 
Development Tax Credit is de facto Specific
    Comment 12: Whether the Tax Credit for Industrial Establishment 
from Ville de Thetford is de jure Specific
    Comment 13: Whether [Eacute]nergir L.P. is an ``Authority''
    Comment 14: Whether Commerce Should Use Canatal's Consolidated 
Sales Value
    Comment 15: Whether Taxes Should Be Included in the Benefit 
Amount for the Hydro-Quebec Industrial Systems Program
    Comment 16: Whether Commerce Double-Counted Benefit Amounts for 
Certain Programs Used by Canatal
    Comment 17: Whether Commerce Correctly Determined that Three 
Hydro-Qu[eacute]bec Programs Were Not Used in the POI
VIII. Recommendation

[FR Doc. 2020-01719 Filed 1-29-20; 8:45 am]
BILLING CODE 3510-DS-P