[Federal Register Volume 85, Number 39 (Thursday, February 27, 2020)]
[Notices]
[Pages 11339-11341]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03987]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-997]


Non-Oriented Electrical Steel From the People's Republic of 
China: Final Results of the Expedited First Sunset Review of the 
Countervailing Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) finds that revocation of 
the countervailing duty (CVD) order would be likely to lead to the 
continuation or recurrence of a countervailable subsidy at the levels 
indicated in the ``Final Results of Review'' section of this notice.

DATES: Applicable February 27, 2020.

FOR FURTHER INFORMATION CONTACT: Mary Kolberg or Dusten Hom, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1785 or (202) 482-5075, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On December 3, 2014, Commerce published in the Federal Register the 
CVD order on non-oriented electrical steel (NOES) from the People's 
Republic of China (China).\1\ On November 1,

[[Page 11340]]

2019, Commerce published the notice of initiation of the first sunset 
review of the CVD order on NOES from China, pursuant to section 751(c) 
of the Tariff Act of 1930, as amended (the Act).\2\ On November 15, 
2019, Commerce received a notice of intent to participate from the 
domestic interested party, AK Steel Corporation (AK Steel).\3\ The 
notice of intent to participate was timely filed within the deadline 
specified in 19 CFR 351.218(d)(1)(i). Additionally, AK Steel claimed 
interested party status under section 771(9)(C) of the Act, as a 
domestic producer of NOES.
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    \1\ See Non-Oriented Electrical Steel from the People's Republic 
of China and Taiwan: Countervailing Duty Orders, 79 FR 71749 
(December 3, 2014) (Order).
    \2\ See Initiation of Five-Year (Sunset) Reviews, 84 FR 58687 
(November 1, 2019).
    \3\ See AK Steel's Letter, ``Five-Year (`Sunset') Review of 
Countervailing Duty Order on Non-Oriented Electrical Steel from The 
People's Republic of China: Domestic Interested Party Notice of 
Intent to Participate,'' dated November 15, 2019.
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    Commerce received an adequate substantive response to the notice of 
initiation from the domestic producer within the 30-day deadline 
specified in 19 CFR 351.218(d)(3)(i).\4\ However, because we did not 
receive a substantive response from the Government of China (GOC) or 
from any other respondent interested parties who are producers or 
exporters of NOES, we determined that respondent interested parties 
provided inadequate responses to Commerce's notice of initiation.
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    \4\ See AK Steel's Letter, ``Five-Year (`Sunset') Review of 
Countervailing Duty Order on Non-Oriented Electrical Steel from the 
People's Republic of China: Domestic Interested Party Substantive 
Response,'' dated November 27, 2019.
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    On December 13, 2019, Commerce notified the U.S. International 
Trade Commission that it did not receive an adequate substantive 
response from respondent interested parties.\5\ As a result, pursuant 
to 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(B)(2) and 
351.218(e)(1)(ii)(C)(2), Commerce conducted an expedited (120-day) 
sunset review of the CVD Order on NOES from China.
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    \5\ See Commerce's Letter, ``Sunset Reviews Initiated on 
November 1, 2019,'' dated December 13, 2019.
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Scope of the Order

    The merchandise covered by the Order is NOES, which includes cold-
rolled, flat-rolled, alloy steel products, whether or not in coils, 
regardless of width, having an actual thickness of 0.20 mm or more, in 
which the core loss is substantially equal in any direction of 
magnetization in the plane of the material. The term ``substantially 
equal'' means that the cross grain direction of core loss is no more 
than 1.5 times the straight grain direction (i.e., the rolling 
direction) of core loss. NOES has a magnetic permeability that does not 
exceed 1.65 Tesla when tested at a field of 800 A/m (equivalent to 10 
Oersteds) along (i.e., parallel to) the rolling direction of the sheet 
(i.e., B800 value). NOES contains by weight more than 1.00 
percent of silicon but less than 3.5 percent of silicon, not more than 
0.08 percent of carbon, and not more than 1.5 percent of aluminum. NOES 
has a surface oxide coating, to which an insulation coating may be 
applied.
    NOES is subject to the Order whether it is fully processed (i.e., 
fully annealed to develop final magnetic properties) or semi-processed 
(i.e., finished to final thickness and physical form but not fully 
annealed to develop final magnetic properties). Fully processed NOES is 
typically made to the requirements of ASTM specification A 677, 
Japanese Industrial Standards (JIS) specification C 2552, and/or 
International Electrotechnical Commission (IEC) specification 60404-8-
4. Semi-processed NOES is typically made to the requirements of ASTM 
specification A 683. However, the scope of the Order is not limited to 
merchandise meeting the ASTM, JIS, and IEC specifications noted 
immediately above.
    NOES is sometimes referred to as cold-rolled non-oriented (CRNO), 
non-grain oriented (NGO), non-oriented (NO), or cold-rolled non-grain 
oriented (CRNGO) electrical steel. These terms are interchangeable.
    Excluded from the scope of the Order are flat-rolled products not 
in coils that, prior to importation into the United States, have been 
cut to a shape and undergone all punching, coating, or other operations 
necessary for classification in Chapter 85 of the Harmonized Tariff 
Schedule of the United States (HTSUS) as a part (i.e., lamination) for 
use in a device such as a motor, generator, or transformer.
    The subject merchandise is provided for in subheadings 
7225.19.0000, 7226.19.1000, and 7226.19.9000 of the HTSUS. Subject 
merchandise may also be entered under subheadings 7225.50.8085, 
7225.99.0090, 7226.92.5000, 7226.92.7050, 7226.92.8050, 7226.99.0180 of 
the HTSUS. Although the HTSUS subheadings above are provided for 
convenience and customs purpose, the written description of the scope 
of the Order is dispositive.

Analysis of Comments Received

    All issues raised in this sunset review are addressed in the Issues 
and Decision Memorandum,\6\ which is hereby adopted by this notice. The 
issues discussed in the Issues and Decision Memorandum are the 
likelihood of continuation or recurrence of a countervailable subsidy 
and the net countervailable subsidy rates likely to prevail if the 
order were revoked. 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 to all 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/.
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    \6\ See Memorandum ``Issues and Decision Memorandum for the 
Final Results of the Expedited First Sunset Review of the 
Countervailing Duty Order on Non-Oriented Electrical Steel from the 
People's Republic of China,'' dated concurrently with this notice 
(Issues and Decision Memorandum).
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Final Results of Review

    Pursuant to sections 751(c)(1) and 752(b) of the Act, Commerce 
determines that revocation of the CVD order on NOES from China would be 
likely to lead to the continuation or recurrence of a countervailable 
subsidy at the rates listed below:

------------------------------------------------------------------------
                                                                  Net
                                                                subsidy
                      Producer/exporter                          rate
                                                               (percent)
------------------------------------------------------------------------
Baoshan Iron & Steel Co., Ltd...............................      158.88
All Others..................................................      158.88
------------------------------------------------------------------------

Administrative Protective Order (APO)

    This notice also 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. 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 sanctionable violation.

Notification to Interested Parties

    We are issuing and publishing these results in accordance with 
sections 751(c), 752(b), and 777(i)(1) of the Act and 19 CFR 351.218.


[[Page 11341]]


    Dated: February 20, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. History of the Order
V. Discussion of the Issues
    1. Revocation of the Order Is Likely To Lead to a Continuation 
or Recurrence of a Countervailable Subsidy
    2. Net Countervailable Subsidy Rates That Are Likely To Prevail
    3. Nature of the Subsidies
VI. Final Results of Review
VII. Recommendation

[FR Doc. 2020-03987 Filed 2-26-20; 8:45 am]
 BILLING CODE 3510-DS-P