[Federal Register Volume 85, Number 32 (Tuesday, February 18, 2020)]
[Notices]
[Pages 8815-8818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03138]



[[Page 8815]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-856]


Certain Corrosion-Resistant Steel Products From Taiwan: 
Affirmative Preliminary Determination of Circumvention Inquiry 
Involving Malaysia

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that imports of certain corrosion-resistant steel products (CORE) 
completed in Malaysia, using hot-rolled steel (HRS) and/or cold-rolled 
steel (CRS) flat products manufactured in Taiwan, are circumventing the 
antidumping duty (AD) order on CORE from Taiwan.

DATES: Applicable February 18, 2020.

FOR FURTHER INFORMATION CONTACT: Shanah Lee and Stephanie Berger, AD/
CVD Operations, Office III, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-6386 and (202) 
482-2483, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On August 12, 2019, Commerce self-initiated a country-wide anti-
circumvention inquiry of the Taiwan CORE Order \1\ covering Taiwanese-
origin HRS and/or CRS exported to Malaysia for completion into CORE and 
subsequently exported to the United States.\2\ In the Initiation 
Notice, Commerce initiated the instant anti-circumvention inquiry based 
on available information and an analysis pursuant to section 781(b) of 
the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.225(h), to 
determine whether the importation of Taiwanese-origin HRS or CRS 
substrate for completion into CORE in Malaysia and subsequent sale of 
that CORE to the United States constitutes circumvention of the Taiwan 
CORE Order.
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    \1\ See Certain Corrosion-Resistant Steel Flat Products from 
India, Italy, the People's Republic of China, the Republic of Korea, 
and Taiwan: Amended Final Affirmative Antidumping Duty Determination 
for India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 
25, 2016) (Taiwan CORE Order).
    \2\ The notice of initiation was subsequently published in the 
Federal Register on August 21, 2019. See Corrosion-Resistant Steel 
Products from Taiwan: Initiation of Anti-Circumvention Inquiry on 
the Antidumping Duty Order, 84 FR 43581 (August 21, 2019) 
(Initiation Notice) and accompanying Memorandum, ``Certain 
Corrosion-Resistant Steel Products from Taiwan: Initiation of Anti-
Circumvention Inquiry on the Antidumping Duty Order,'' dated August 
12, 2019.
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    For a complete description of the record developed since the 
initiation of this inquiry, see the Preliminary Decision Memorandum.\3\ 
A list of topics included in the Preliminary Decision Memorandum is 
included as Appendix I to this notice. The Preliminary 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 to all parties in the 
Central Records Unit, Room B8024 of the main Commerce building. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/. The signed 
and the electronic versions of the Preliminary Decision Memorandum are 
identical in content.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Anti-Circumvention Inquiry of Certain 
Corrosion-Resistant Steel Products from Taiwan,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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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. For a complete description of the 
scope of the order, see the Preliminary Decision Memorandum.

Scope of the Anti-Circumvention Inquiry

    This anti-circumvention inquiry covers CORE completed in Malaysia 
from HRS and/or CRS substrate input manufactured in Taiwan and 
subsequently exported from Malaysia to the United States (merchandise 
subject to this inquiry).

Methodology

    Commerce is conducting this anti-circumvention inquiry in 
accordance with section 781(b) of the Act. Because certain interested 
parties did not cooperate to the best of their abilities in responding 
to Commerce's requests for information, we have based parts of our 
preliminary determination on the facts available, with adverse 
inferences, pursuant to sections 776(a) and (b) of the Act. For a full 
description of the methodology underlying Commerce's preliminary 
determination, see the Preliminary Decision Memorandum.

Preliminary Finding

    As detailed in the Preliminary Decision Memorandum, we 
preliminarily determine that CORE completed in Malaysia from HRS and/or 
CRS substrate sourced from Taiwan is circumventing the Taiwan CORE 
Order. We therefore preliminarily determine that it is appropriate to 
include this merchandise within the Taiwan CORE Order and to instruct 
U.S. Customs and Border Protection (CBP) to suspend any entries of CORE 
from Malaysia produced from HRS and/or CRS from Taiwan.

Suspension of Liquidation

    As stated above, Commerce has made a preliminary affirmative 
determination that imports of CORE completed in Taiwan, using HRS and/
or CRS flat products manufactured in China, are circumventing the 
Taiwan CORE Order. In accordance with 19 CFR 351.225(l)(2), Commerce 
will direct CBP to suspend liquidation and to require a cash deposit of 
estimated duties on unliquidated entries of CORE produced in Malaysia, 
as appropriate, that were entered, or withdrawn from warehouse, for 
consumption on or after August 12, 2019, the date of initiation of the 
anti-circumvention inquiry. The suspension of liquidation instructions 
will remain in effect until further notice.
    CORE produced in Malaysia from HRS and/or CRS that is not of 
Taiwanese-origin is not subject to this inquiry. However, imports of 
such merchandise are subject to certification requirements, and cash 
deposits may be required if the certification requirements are not 
satisfied. CORE completed in Malaysia from HRS and/or CRS from China 
also has preliminarily been found to be circumventing the AD/CVD orders 
on CORE from China and such merchandise is subject to similar 
certification requirements.\4\ Additionally, if an importer imports 
CORE from Malaysia and claims that the CORE was not produced from HRS 
and/or CRS substrate manufactured in Taiwan, the importer and exporter 
are required to meet the certification and documentation requirements 
described

[[Page 8816]]

in Appendices II, III and IV, in order for cash deposits pursuant to 
the Taiwan CORE Order not to be required.
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    \4\ See Federal Register notice, ``Certain Corrosion-Resistant 
Steel Products from Taiwan: Affirmative Preliminary Determination of 
Anti-Circumvention Inquiry on the Antidumping Duty Order,'' dated 
concurrently with this notice.
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    In the situation where no certification is provided for an entry, 
and AD/CVD orders from two countries (China and Taiwan) potentially 
apply to that entry, Commerce intends to instruct CBP to suspend 
liquidation of the entry and collect cash deposits at the rates 
applicable to the China CORE Orders \5\ (i.e., the AD rate established 
for the China-wide entity (199.43 percent) and the CVD rate established 
for all-other Chinese producers/exporters (39.05 percent)).\6\ This is 
to prevent evasion, given that the CORE China Orders rates are higher 
than the AD rate established for CORE from Taiwan. In the situation 
where a certification is provided for the AD/CVD orders on CORE from 
China (stating that the merchandise was not produced from HRS and/or 
CRS from China), but no other certification is provided, then Commerce 
intends to instruct CBP to suspend the entry and collect cash deposits 
at the AD all-others rate applicable to the Taiwan CORE Order (i.e., 
3.66 percent).
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    \5\ See Certain Corrosion-Resistant Steel Flat Products from 
India, Italy, the People's Republic of China, the Republic of Korea, 
and Taiwan: Amended Final Affirmative Antidumping Duty Determination 
for India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 
25, 2016); see also 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, China CORE Orders).
    \6\ See China CORE Orders.
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    Commerce preliminarily determines that the following companies are 
not eligible for the certification process: Hsin Kuang Steel Co Ltd; 
FIW Steel Sdn Bhd; NS BlueScope Malaysia Sdn Bhd; and YKGI/Yung Kong 
Galv. Ind/Starshine Holdings Sdn Bhd/ASTEEL Sdn Bhd. Additionally, 
exporters are not eligible to certify shipments of merchandise produced 
by above-listed companies. Further, imports of CORE from Malaysia that 
is produced and/or exported by these ineligible companies are similarly 
ineligible for the certification process with regard to those imports.

Verification

    As provided in 19 CFR 351.307, Commerce intends to verify 
information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last final verification report is 
issued in this anti-circumvention inquiry, unless the Secretary alters 
the time limit. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\7\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this anti-
circumvention inquiry are encouraged to submit with each argument: (1) 
A statement of the issue; (2) a brief summary of the argument; and (3) 
a table of authorities.
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    \7\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

International Trade Commission Notification

    Commerce, consistent with section 781(e) of the Act, has notified 
the International Trade Commission (ITC) of this preliminary 
determination to include the merchandise subject to this anti-
circumvention inquiry within the Taiwan CORE Order. Pursuant to section 
781(e) of the Act, the ITC may request consultations concerning 
Commerce's proposed inclusion of the merchandise subject to this 
inquiry. If, after consultations, the ITC believes that a significant 
injury issue is presented by the proposed inclusion, it will have 60 
days from the date of notification by Commerce to provide written 
advice.

Notification to Interested Parties

    This determination is issued and published in accordance with 
section 781(b) of the Act and 19 CFR 351.225(f).

    Dated: February 7, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Scope of the Anti-Circumvention Inquiry
V. Period of Inquiry
VI. Statutory Framework
VII. Use of Facts of Available With An Adverse Inference
VIII. Anti-Circumvention Determination
IX. Country-Wide Determination
X. Certification for Not Using Taiwanese-Origin HRS and/or CRS
XI. Verification
XII. Recommendation

Appendix II

Certification Requirements

    If an importer imports certain corrosion-resistant steel 
products (CORE) from Malaysia and claims that the CORE was not 
produced from hot-rolled steel and/or cold-rolled steel substrate 
(substrate) manufactured in Taiwan, the importer is required to 
complete and maintain the importer certification attached hereto as 
Appendix III and all supporting documentation. Where the importer 
uses a broker to facilitate the entry process, it should obtain the 
entry number from the broker. Agents of the importer, such as 
brokers, however, are not permitted to make this certification on 
behalf of the importer.
    The exporter is required to complete and maintain the exporter 
certification, attached as Appendix III, and is further required to 
provide the importer a copy of that certification and all supporting 
documentation.
    For shipments and/or entries on or after August 12, 2019 through 
March 7, 2020 for which certifications are required, importers and 
exporters should complete the required certification within 30 days 
of the publication of this notice in the Federal Register. 
Accordingly, where appropriate, the relevant bullet in the 
certification should be edited to reflect that the certification was 
completed within the time frame specified above. For example, the 
bullet in the importer certification that reads: ``This 
certification was completed at or prior to the time of Entry,'' 
could be edited as follows: ``The imports referenced herein entered 
before March 8, 2020. This certification was completed on mm/dd/
yyyy, within 30 days of the Federal Register notice publication of 
the preliminary determination of circumvention.'' Similarly, the 
bullet in the exporter certification that reads, ``This 
certification was completed at or prior to the time of shipment,'' 
could be edited as follows: ``The shipments/products referenced 
herein shipped before March 8, 2020. This certification was 
completed on mm/dd/yyyy, within 30 days of the Federal Register 
notice publication of the preliminary determination of 
circumvention. For such entries/

[[Page 8817]]

shipments, importers and exporters each have the option to complete 
a blanket certification covering multiple entries/shipments, 
individual certifications for each entry/shipment, or a combination 
thereof.
    For shipments and/or entries on or after March 8, 2020, for 
which certifications are required, importers should complete the 
required certification at or prior to the date of Entry and 
exporters should complete the required certification and provide it 
to the importer at or prior to the date of shipment.
    The importer and Malaysian exporter are also required to 
maintain sufficient documentation supporting their certifications. 
The importer will not be required to submit the certifications or 
supporting documentation to U.S. Customs and Border Protection (CBP) 
as part of the entry process at this time. However, the importer and 
the exporter will be required to present the certifications and 
supporting documentation, to Commerce and/or CBP, as applicable, 
upon request by the respective agency. Additionally, the claims made 
in the certifications and any supporting documentation are subject 
to verification by Commerce and/or CBP. The importer and exporter 
are required to maintain the certifications (the importer must 
retain both certifications) and supporting documentation for the 
later of (1) a period of five years from the date of entry or (2) a 
period of three years after the conclusion of any litigation in 
United States courts regarding such entries.
    In the situation where no certification is provided for an 
entry, and AD/CVD orders from two countries (China and Taiwan) 
potentially apply to that entry, Commerce intends to instruct CBP to 
suspend the entry and collect cash deposits at the rate applicable 
to the China CORE Orders (i.e., the AD rate established for the 
China-wide entity (199.43 percent) and the CVD rate established for 
all-other Chinese producers/exporters (39.05 percent)).\8\ In the 
situation where a certification is provided for the AD/CVD orders on 
CORE from China (stating that the merchandise was not produced from 
HRS and/or CRS from China), but no other certification is provided, 
then Commerce intends to instruct CBP to suspend the entry and 
collect cash deposits at the AD all-others rate applicable to the AD 
order on CORE from Taiwan (i.e., 3.66%).
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    \8\ See China CORE Orders.
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Appendix III

Exporter Certification

    I hereby certify that:

 My name is {COMPANY OFFICIAL'S NAME{time}  and I am an 
official of {NAME OF EXPORTING COMPANY{time} , located at {ADDRESS 
OF EXPORTING COMPANY{time} ;
 I have direct personal knowledge of the facts regarding the 
production and exportation of the corrosion resistant steel products 
identified below. ``Direct personal knowledge'' refers to facts the 
certifying party is expected to have in its own books and records. 
For example, an exporter should have direct personal knowledge of 
the producer's identity and location.
 The corrosion resistant steel products covered by this 
certification were produced by {NAME OF PRODUCING COMPANY{time} , 
located at {ADDRESS OF PRODUCING COMPANY{time} ; for each additional 
company, repeat: {NAME OF PRODUCING COMPANY{time} , located at 
{ADDRESS OF PRODUCING COMPANY{time} 
 The corrosion resistant steel products produced in Malaysia 
were not manufactured using hot-rolled steel and/or cold-rolled 
steel substrate from Taiwan;
 This certification applies to the following sales:

------------------------------------------------------------------------
                                                      Invoice line item
          Producer                 Invoice No.               No.
------------------------------------------------------------------------
 
 
------------------------------------------------------------------------

 The corrosion resistant steel products covered by this 
certification were sold to {NAME OF U.S. CUSTOMER{time} , located at 
{ADDRESS OF U.S. CUSTOMER{time} .
 The corrosion resistant steel products covered by this 
certification were shipped to {NAME OF PARTY TO WHOM MERCHANDISE WAS 
SHIPPED{time} , located at {ADDRESS OF SHIPMENT{time} .
 I understand that {NAME OF EXPORTING COMPANY{time}  is 
required to maintain a copy of this certification and sufficient 
documentation supporting this certification (i.e., documents 
maintained in the normal course of business, or documents obtained 
by the certifying party, for example, mill certificates, production 
records, invoices, etc.) for the later of (1) a period of five years 
from the date of entry or (2) a period of three years after the 
conclusion of any litigation in the United States courts regarding 
such entries;
 I understand that {NAME OF EXPORTING COMPANY{time}  must 
provide a copy of this Exporter Certification to the U.S. importer 
by the time of shipment;
 I understand that {NAME OF EXPORTING COMPANY{time}  is 
required to provide a copy of this certification and supporting 
records, upon request, to U.S. Customs and Border Protection (CBP) 
and/or the Department of Commerce (Commerce);
 I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce;
 I understand that failure to maintain the required 
certification, and/or failure to substantiate the claims made 
herein, and/or failure to allow CBP and/or Commerce to verify the 
claims made herein, may result in a de facto determination that all 
sales to which this certification applies are within the scope of 
the antidumping/countervailing duty order on corrosion resistant 
steel products from Taiwan. I understand that such finding will 
result in:
    [cir] Suspension of all unliquidated entries (and entries for 
which liquidation has not become final) for which these requirements 
were not met; and
    [cir] the requirement that the importer post applicable 
antidumping duty and/or countervailing duty cash deposits (as 
appropriate) equal to the rates as determined by Commerce;
    [cir] the revocation of {NAME OF EXPORTING COMPANY{time} 's 
privilege to certify future exports of corrosion resistant steel 
products from Malaysia as not manufactured using hot-rolled steel 
and/or cold-rolled steel substrate from Taiwan.
 This certification was completed at or prior to the time of 
shipment; and
 I am aware that U.S. law (including, but not limited to, 18 
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly 
and willfully make materially false statements to the U.S. 
government.

Signature

NAME OF COMPANY OFFICIAL

TITLE

DATEAppendix IV

Importer Certification

    I hereby certify that:

 My name is {IMPORTING COMPANY OFFICIAL'S NAME{time}  and I 
am an official of {NAME OF IMPORTING COMPANY{time} , located at 
{ADRESS OF IMPORTING COMPANY{time} .
 I have direct personal knowledge of the facts regarding the 
importation into the Customs territory of the United States of the 
corrosion resistant steel products produced in Malaysia that entered 
under entry number(s), identified below, and which are covered by 
this certification. ``Direct personal knowledge'' refers to facts 
the certifying party is expected to have in its own records. For 
example, the importer should have direct personal knowledge of the 
importation of the product (e.g., the name of the exporter) in its 
records;
 The corrosion resistant steel products covered by this 
certification were exported by {NAME OF EXPORTING COMPANY{time} , 
located at {ADDRESS OF EXPORTING COMPANY{time} .
If the importer is acting on behalf of the first U.S. customer, 
complete this paragraph:
 The corrosion resistant steel products

[[Page 8818]]

covered by this certification were imported by {NAME OF IMPORTING 
COMPANY{time}  on behalf of {NAME OF U.S. CUSTOMER{time} , located 
at {ADDRESS OF U.S. CUSTOMER{time} .
 The corrosion resistant steel products covered by this 
certification were shipped to {NAME OF PARTY TO WHOM MERCHANDISE WAS 
FIRST SHIPPED IN THE UNITED STATES{time} , located at {ADDRESS OF 
SHIPMENT{time} .
 I have personal knowledge of the facts regarding the 
production of the corrosion resistant steel products identified 
below. ``Personal knowledge'' includes facts obtained from another 
party, (e.g., correspondence received by the importer (or exporter) 
from the producer regarding the country of manufacture of the 
imported products);
 The corrosion resistant steel products covered by this 
certification were produced by {NAME OF PRODUCING COMPANY{time} , 
located at {ADDRESS OF PRODUCING COMPANY{time} ; for each additional 
company, repeat: {NAME OF PRODUCING COMPANY{time} , located at 
{ADDRESS OF PRODUCING COMPANY{time} .
 The corrosion resistant steel products covered by this 
certification were not manufactured using hot-rolled steel and/or 
cold-rolled steel substrate from Taiwan.
 This certification applies to the following entries:

----------------------------------------------------------------------------------------------------------------
                                                Entry summary line                            Invoice Line Item
       Producer          Entry summary No.           item No.             Invoice No.                No.
----------------------------------------------------------------------------------------------------------------
 
 
----------------------------------------------------------------------------------------------------------------

 I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to maintain a copy of this certification and sufficient 
documentation supporting this certification (i.e., documents 
maintained in the normal course of business, or documents obtained 
by the certifying party, for example, mill certificates, production 
records, invoices, etc.) for the later of (1) a period of five years 
from the date of entry or (2) a period of three years after the 
conclusion of any litigation in the United States courts regarding 
such entries;
 I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to provide this certification and supporting records, upon 
request, to U.S. Customs and Border Protection (CBP) and/or the 
Department of Commerce (Commerce);
 I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to maintain a copy of the exporter's certification 
(attesting to the production and/or export of the imported 
merchandise identified above), and any supporting records provided 
by the exporter to the importer, for the later of (1) a period of 
five years from the date of entry or (2) a period of three years 
after the conclusion of any litigation in United States courts 
regarding such entries;
 I understand that {NAME OF IMPORTING COMPANY{time} is 
required to maintain and, upon request, provide a copy of the 
exporter's certification and any supporting records provided by the 
exporter to the importer, to CBP and/or Commerce;
 I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce;
 I understand that failure to maintain the required 
certifications, and/or failure to substantiate the claims made 
herein, and/or failure to allow CBP and/or Commerce to verify the 
claims made herein, may result in a de facto determination that all 
entries to which this certification applies are within the scope of 
the antidumping/countervailing duty order on corrosion resistant 
steel products from Taiwan. I understand that such finding will 
result in:
    [cir] Suspension of liquidation of all unliquidated entries (and 
entries for which liquidation has not become final) for which these 
requirements were not met; and;
    [cir] the requirement that the importer post applicable 
antidumping duty and/or countervailing duty cash deposits (as 
appropriate) equal to the rates determined by Commerce;
the revocation of {NAME OF IMPORTING COMPANY{time} 's privilege to 
certify future imports of corrosion resistant steel products from 
Malaysia as not manufactured using hot-rolled steel and/or cold-
rolled steel substrate from Taiwan.
 I understand that agents of the importer, such as brokers, 
are not permitted to make this certification;
 This certification was completed at or prior to the time of 
Entry; and
 I am aware that U.S. law (including, but not limited to, 18 
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly 
and willfully make materially false statements to the U.S. 
government.

Signature

NAME OF COMPANY OFFICIAL

TITLE

DATE

[FR Doc. 2020-03138 Filed 2-14-20; 8:45 am]
 BILLING CODE 3510-DS-P