[Federal Register Volume 85, Number 20 (Thursday, January 30, 2020)]
[Notices]
[Pages 5381-5384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01723]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-201-851]


Certain Fabricated Structural Steel From Mexico: Final 
Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain fabricated structural steel (fabricated structural steel) 
from Mexico. The period of investigation is January 1, 2018 through 
December 31, 2018.

DATES: Applicable January 30, 2020.

FOR FURTHER INFORMATION CONTACT: Maliha Khan, AD/CVD Operations, Office 
IV, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230; telephone: (202) 482-0895.

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 Mexico (GOM), the mandatory respondents in this 
investigation are Building Systems de Mexico, S.A. de C.V. (BSM) and 
Corey S.A. de C.V. (Corey).
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    \1\ See Certain Fabricated Structural Steel from Mexico: 
Preliminary Affirmative Countervailing Duty Determination, and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 84 FR 33227 (July 12, 2019). (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
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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 https://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 Issues and Decision 
Memorandum and the electronic version 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 Mexico,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation is fabricated structural 
steel from Mexico. 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 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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Use of Adverse Facts Available (AFA)

    For purposes of this final determination, we relied on facts 
available, and because certain respondents did not act to the best of 
their ability in responding to Commerce's requests for information, we 
drew an adverse inference, where appropriate, in selecting from among 
the facts otherwise available in accordance with sections 776(a) and 
(b) of the Act.\7\ A full discussion of our decision to rely on adverse 
facts available is presented in the ``Use of Facts Otherwise Available 
and Adverse Inferences'' section of the Issues and Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.

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[[Page 5382]]

Verification

    As provided in section 782(i) of the Act, in August 2019, Commerce 
verified the subsidy information reported by BSM, Corey, and the GOM. 
We used standard verification procedures, including an examination of 
relevant accounting records and original source documents provided by 
the respondents.\8\
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    \8\ See Memoranda, ``Countervailing Duty Investigation of 
Certain Fabricated Structural Steel from Mexico: Verification of the 
Questionnaire Responses of Building Systems de Mexico S.A. de 
C.V.,'' dated September 6, 2019; ``Countervailing Duty Investigation 
of Certain Fabricated Structural Steel from Mexico: Verification of 
the Questionnaire Responses of Corey S.A. de C.V.,'' dated September 
26, 2019; and ``Countervailing Duty Investigation of Certain 
Fabricated Structural Steel from Mexico: Verification of the 
Questionnaire Responses of the Government of Mexico,'' dated 
September 10, 2019.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to Commerce's application of adverse 
facts available to certain companies. 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 countervailable subsidy rates for BSM 
and Corey and established subsidy rates for the 5 companies that failed 
to respond to Commerce's quantity and value questionnaire by applying 
AFA. Section 705(c)(5)(A)(i) of the Act states that, for companies not 
individually investigated, Commerce will determine an all-others rate 
equal to the weighted-average countervailable subsidy rates established 
for exporters and producers individually examined, excluding any zero 
and de minimis countervailable subsidy rates, and any rates determined 
entirely under section 776 of the Act.
    In this investigation, Commerce has found a de minimis rate for 
mandatory respondent BSM. Therefore, the only rate that is not zero, de 
minimis or based entirely on facts otherwise available for exporters or 
producers individually examined is the rate calculated for Corey. 
Consequently, the rate calculated for Corey is also assigned as the 
rate for all other producers and exporters.
    Commerce determines the total estimated net countervailable subsidy 
rates to be the following:
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    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Corey: Inversiones de Jalisco, S.A. de C.V.; Aceros Corey, S.A.P.I. 
de C.V.; Industrias Recal, S.A. de C.V.; 6190, S.A. de C.V; 
Servicios Integrales Corey, S.A. de C.V.; Servicios T[eacute]cnicos 
Corey, S.A. de C.V.; Estructuras de Acero CVGS, S.A. de C.V.; and 
Operadora Industrial El Salto, S.A. de C.V. See Preliminary Decision 
Memorandum at 15.

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                                                           Subsidy rate
                         Company                             (percent)
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Building Systems de Mexico, S.A. de C.V.................            0.01
Corey S.A. de C.V.\9\...................................           13.62
Acero Technologia, S.A. de C.V..........................           68.87
Construcciones Industriales Tapia S.A. de C.V...........           68.87
Estructuras Metalicas la Popular S.A. de C.V./MSCI......           68.87
Operadora CICSA, S. A. de C. V. Swecomex--Guadalajara...           68.87
Preacero Pellizzari Mexico S.A. de C.V..................           68.87
All Others..............................................           13.62
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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).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to suspend liquidation of entries 
of subject merchandise, as described in the scope of the investigation 
section, that was entered or withdrawn from warehouse for consumption 
on or after July 12, 2019, the date of publication of the Preliminary 
Determination in the Federal Register. In accordance with section 
703(d) of the Act, we issued instructions to CBP to discontinue the 
suspension of liquidation for countervailing duty (CVD) purposes for 
subject merchandise entered, or withdrawn from warehouse, on or after 
November 9, 2019 but to continue the suspension of liquidation of all 
entries from July 12, 2019 through November 8, 2019.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, reinstate 
the suspension of liquidation under section 706(a) of the Act, and will 
require a cash deposit of estimated countervailing duties for such 
entries of subject merchandise in the amounts indicated above. If the 
ITC determines that material injury, or threat of material injury, does 
not exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. Because the final determination in this 
proceeding is affirmative, in accordance with section 705(b) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of fabricated 
structural steel from China no later than 45 days after our final 
determination. If the ITC determines that material injury or threat of 
material injury does not exist, the proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue a CVD order directing CBP to 
assess, upon further instruction by Commerce, countervailing duties on 
all imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed above in the ``Continuation of 
Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    In the event the ITC issues a final negative injury determination, 
this notice serves as the only reminder to parties subject to an 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 or 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 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.

[[Page 5383]]

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 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

[[Page 5384]]

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 Final Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Subsidies Valuation Information
VII. Analysis of Programs
VIII. Analysis of Comments
    Comment 1: Eighth Rule
    Comment 2: Calculation of Total Adverse Facts Available Rate
    Comment 3: Application of Adverse Facts Available to BSM
    Comment 4: Application of Adverse Facts Available to Certain 
Companies
    Comment 5: Modification of Corey's Denominators
IX. Recommendation
[FR Doc. 2020-01723 Filed 1-29-20; 8:45 am]
 BILLING CODE 3510-DS-P