[Federal Register Volume 85, Number 228 (Wednesday, November 25, 2020)]
[Notices]
[Pages 75299-75302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-26091]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-026]


Corrosion-Resistant Steel Products From the People's Republic of 
China: Preliminary Determination of No Shipments in the Antidumping 
Duty Administrative Review and Rescission, in Part; 2018-2019

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

SUMMARY: The Department of Commerce (Commerce) preliminarily finds that 
Nippon Steel and Sumikin Sales Vietnam Co., Ltd. (NSSVC), Hoa Sen Group 
(HSG), and Ton Dong A Corporation (TDA) made no shipments of corrosion-
resistant steel products (CORE) from the People's Republic of China 
(China) during the period of review (POR) from July 1, 2018 through 
June 30, 2019. We invite interested parties to comment on these 
preliminary results. In addition, Commerce is rescinding the 
administrative review, in part, for eight companies for which review 
requests were withdrawn.

DATES: Applicable November 25, 2020.

FOR FURTHER INFORMATION CONTACT: Mark Hoadley, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3148.

SUPPLEMENTARY INFORMATION: 

Background

    On July 1, 2019, Commerce published in the Federal Register a 
notice of opportunity to request an administrative review of the 
antidumping duty (AD) order on CORE from China.\1\ On July 31, 2019, 
the petitioners timely requested that Commerce conduct an 
administrative review.\2\ In addition, on the same day, three domestic 
importers of CORE timely requested an administrative review.\3\ On 
September 9, 2019, Commerce published in the Federal Register a notice 
of initiation of an administrative review of the AD order on CORE from 
China, covering the POR July 1, 2018 through June 3, 2019, with respect 
to 11 companies.\4\ On September 26, 2019, Commerce placed the results 
of a CBP data query on the record conducted for imports from all eleven 
companies subject to the review.\5\ Because Commerce previously 
determined that CORE produced in Vietnam using hot-rolled or cold-
rolled carbon steel substrate is subject to the order on CORE from 
China,\6\ Commerce

[[Page 75300]]

conducted the query for imports under the case number for subject 
merchandise coming directly from China (A-570-026) as well as under the 
third-country case number for subject merchandise coming from Vietnam 
(A-552-994).\7\ The third-country case number was created in CBP's 
Automated Commercial Environment (ACE) as a result of our affirmative 
determination in the Circumvention Inquiry and captures entries of CORE 
produced in Vietnam using hot-rolled or cold-rolled carbon steel 
substrate from China. The query resulted in ``no entries found.'' \8\
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    \1\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity To Request Administrative 
Review, 84 FR 31295 (July 1, 2019).
    \2\ See Petitioners' Letter, ``Corrosion-Resistant Steel 
Products from the People's Republic of China: Request for 
Administrative Review of Antidumping Duty Order,'' dated July 31, 
2019. The petitioners are ArcelorMittal USA LLC, California Steel 
Industries, Inc., Nucor Corporation, Steel Dynamics, Inc., and 
United States Steel Corporation (U.S. Steel).
    \3\ See Metal One America, Inc.'s Letter, ``Corrosion-Resistant 
Steel Products from China: Metal One America, Inc.'s Request for 
Administrative Review,'' dated July 31, 2019 (Metal One Request), 
Mitsui & Co. (U.S.A.) Inc.'s Letter, ``Corrosion-Resistant Steel 
Products from China: Request for Administrative Review,'' dated July 
31, 2019, and Stemcor USA Inc.'s Letter, ``Corrosion-Resistant Steel 
Products from China--Stemcor's Request for Administrative Review,'' 
dated July 31, 2019 (Stemcor Request). Metal One America, Inc. 
(Metal One), Mitsui & Co. (U.S.A.) Inc. (Mitsui), and Stemcor USA 
Inc. (Stemcor) stated that they are U.S. importers of CORE from 
Vietnam that is potentially subject to the order on CORE from China.
    \4\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 84 FR 47242 (September 9, 2019) (Initiation 
Notice).
    \5\ See Memorandum, ``Release of U.S. Customs and Border 
Protection (CBP) Data for Respondent Selection,'' dated September 
26, 2019 (CBP Query).
    \6\ See Certain Corrosion-Resistant Steel Products from the 
People's Republic of China: Affirmative Final Determination of 
Circumvention of the Antidumping Duty and Countervailing Duty 
Orders, 83 FR 23895 (May 23, 2018), and accompanying Issues and 
Decision Memorandum (Circumvention Inquiry).
    \7\ See CBP Query at 3.
    \8\ Id.
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    On October 3, 2019, one of the petitioners, U.S. Steel, submitted 
comments on the CBP query, noting that certain companies subject to the 
review had shipped CORE products to the United States during the POR 
according to third-party manifest data submitted by the petitioners.\9\ 
The petitioners suggested that Commerce collect exporter certifications 
from the companies under review averring that such CORE products were 
not produced using Chinese substrate.\10\ Commerce subsequently 
requested exporter certifications as part of a wider questionnaire 
issued to certain producers, as discussed below.
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    \9\ See U.S. Steel's Letter, ``Corrosion-Resistant Steel 
Products from the People's Republic of China: Comments on U.S. 
Customs and Border Protection Entry Data Results,'' dated October 3, 
2019.
    \10\ Id.
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    On December 4, 2019, the petitioners timely withdrew their request 
for a review in full.\11\ Likewise, on December 6, 2019, Mitsui timely 
withdrew its request for a review in full.\12\ Consequently, only the 
Metal One Request and the Stemcor Request remain unwithdrawn. The Metal 
One Request and the Stemcor request cover three companies: Nippon Steel 
and Sumikin Sales Vietnam Co., Ltd. (NSSVC); Hoa Sen Group (HSG); and 
Ton Dong A Corporation (TDA).\13\ All three companies are Vietnamese 
exporters of CORE.\14\
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    \11\ See Petitioners' Letter, ``Corrosion-Resistant Steel 
Products from the People's Republic of China: Withdrawal of Request 
for Administrative Review of Countervailing Duty Order,'' dated 
December 4, 2019.
    \12\ See Mitsui's Letter, ``Certain Corrosion-Resistant Steel 
Products from the People's Republic of China: Withdrawal of Review 
Request of Countervailing Duty Order,'' dated December 6, 2019.
    \13\ See Metal One Request and Stemcor Request.
    \14\ Id.
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    On February 11, 2020, Commerce issued questionnaires to all three 
companies.\15\ HSG responded to the questionnaire on March 11, 2020; 
\16\ and NSSVC and TDA responded on March 23, 2020.\17\ Commerce 
received no comments on the three questionnaire responses.
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    \15\ See Commerce's Letters, ``Corrosion-Resistant Steel from 
the People's Republic of China: Administrative Review 
Questionnaire,'' dated February 11, 2020 (No Shipment 
Questionnaires).
    \16\ See HSG `s Letter, ``Corrosion-Resistant Steel Products 
from the People's Republic of China--Response to Questionnaire,'' 
dated March 11, 2020.
    \17\ See NSSVC's Letter, ``Corrosion-Resistant Steel Products 
from the People's Republic of China: NSSVC's Response to the 
Department's Administrative Review Questionnaire,'' dated March 20, 
2020; see also TDA's Letter, ``Certain Corrosion-Resistant Steel 
Products from the People's Republic of China, Case No. C-570-027: 
TDA Initial Questionnaire Response,'' dated March 20, 2020.
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    On April 24, 2020, Commerce tolled all deadlines in administrative 
reviews by 50 days.\18\ On July 22, 2020, Commerce tolled statutory 
deadlines for all preliminary and final results in administrative 
reviews by an additional 60 days.\19\ As such, the current deadline for 
the preliminary results in this administrative review is November 17, 
2020.
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    \18\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Administrative Reviews in Response to 
Operational Adjustments Due to COVID-19,'' dated April 24, 2020.
    \19\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Administrative Reviews,'' dated July 21, 2020.
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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. 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 non-rectangular 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 micro-alloying 
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

[[Page 75301]]

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 order 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.

Rescission of Review, in Part

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if all parties that 
requested the review withdraw their request within 90 days of the 
publication date of the notice of initiation of the requested review. 
All review requests were withdrawn for the following eight companies 
included in the Initiation Notice: China Steel Sumikin Vietnam, Dai 
Thien Loc Corp., Hoa Phat Steel Pipe, Maruichi Sun Steel, Nam Kim 
Steel, NS Bluescope, Southern Steel Sheet Co., and Vina One. Therefore, 
we are rescinding the administrative review for these eight companies 
in accordance with 19 CFR 351.213(d)(1).

Preliminary Determination of No Shipments

    The remaining three companies included in the Initiation Notice, 
NSSVC, HSG, and TDA, reported no shipments during the POR.\20\ None of 
the three respondents reported sourcing any substrate from China, and 
thus none reported shipping subject merchandise to the United States 
during the POR--consistent with the CBP data. In the No Shipment 
Questionnaires issued to NSSVC, HSG, and TDA (identical for all three 
companies), Commerce requested information concerning corporate 
structure and affiliation, the total quantity and value of CORE 
shipments to the United States and all other markets during the POR, a 
database containing details of each shipment of CORE to the United 
States during the POR, such as the source of the substrate, a detailed 
reconciliation of the database to the company's financial statements, 
and complete sales documentation for the five largest invoices by sales 
quantity of the POR.\21\ We specifically asked that the exporter 
certifications be included as part of the sales documentation along 
with mill certificates for both the CORE and the substrate. Because a 
single invoice sometimes includes dozens of sales, the requests 
resulted in hundreds of pages of mill certificates and sales and 
shipping documentation. Commerce's review of the sales documentation 
confirms the respondents' reporting (e.g., the mill certificates for 
the substrate indicate the name and location of the factory that 
produced the substrate).
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    \20\ See No Shipment Questionnaires; see also HSG's Letter, 
``Administrative Review of Antidumping and Countervailing Duty 
Orders on Corrosion Resistant Steel Products from the People's 
Republic of China--No Shipment Letter,'' dated October 9, 2019, and 
TDA's Letter, ``Certain Corrosion-Resistant Steel Products from the 
People's Republic of China, Case No. A-570-026: No Shipment 
Letter,'' dated October 9, 2019.
    \21\ See No Shipment Questionnaires.
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    Therefore, we preliminarily determine that NSSVC, HSG, and TDA had 
no shipments of subject merchandise during the POR. Consistent with 
Commerce's practice, we are not preliminarily rescinding the review 
with respect to NSSVC, HSG, and TDA. Rather, we will complete the 
review and issue appropriate instructions to CBP based on the final 
results.\22\
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    \22\ See, e.g., Certain Frozen Warmwater Shrimp from Thailand; 
Preliminary Results of Antidumping Duty Administrative Review, 
Partial Rescission of Review, Preliminary Determination of No 
Shipments; 2012-2013, 79 FR 15951, 15952 (March 24, 2014), unchanged 
in Certain Frozen Warmwater Shrimp from Thailand: Final Results of 
Antidumping Duty Administrative Review, Final Determination of No 
Shipments, and Partial Rescission of Review; 2012-2013, 79 FR 51306 
(August 28, 2014).
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Public Comment

    Interested parties may submit case briefs to Commerce no later than 
30 days after the date of publication of this notice.\23\ Rebuttal 
briefs, limited to issues raised in the case briefs, may be filed no 
later than seven days after the date for filing case briefs.\24\ 
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case 
briefs or rebuttal briefs in this proceeding 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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    \23\ See 19 CFR 351.309(c)(1)(ii).
    \24\ See 19 CFR 351.309(d).
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    Case and rebuttal briefs must be filed electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS) and must also be served 
on interested parties.\25\ Note that Commerce has temporarily modified 
certain of its requirements for serving documents containing business 
proprietary information, until further notice.\26\ ACCESS is available 
to registered users at http://access.trade.gov. An electronically filed 
document must be received successfully in its entirety by 5:00 p.m. 
Eastern Time on the date that the document is due.
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    \25\ See 19 CFR 351.303.
    \26\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement

[[Page 75302]]

and Compliance, filed electronically via Commerce's electronic records 
system, ACCESS. An electronically filed request must be received 
successfully in its entirety by 5:00 p.m. Eastern Time within 30 days 
of the date of publication of this notice.\27\ Requests should contain: 
(1) The party's name, address and telephone number; (2) the number of 
participants; and (3) a list of issues parties intend to discuss. 
Issues raised in the hearing will be limited to those raised in the 
respective case and rebuttal briefs. If a request for a hearing is 
made, Commerce intends to hold the hearing at a date and time to be 
determined.\28\ Parties should confirm the date, time, and location of 
the hearing two days before the scheduled date.
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    \27\ See 19 CFR 351.310(c).
    \28\ See 19 CFR 351.310(d).
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    Commerce intends to issue the final results of this administrative 
review, including the results of its analysis of the issues raised in 
any case or rebuttal briefs, no later than 120 days after the date of 
publication of this notice, unless extended.\29\
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    \29\ See section 751(a)(3)(A) of the Act; and 19 CFR 351.213(h).
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Assessment Rates

    For companies for which this review is rescinded, Commerce will 
instruct CBP to assess AD duties on all appropriate entries at a rate 
equal to the cash deposit of estimated AD duties required at the time 
of entry, or withdrawal from warehouse, for consumption, during the 
period July 1, 2018 through June 30, 2019, in accordance with 19 CFR 
351.212(c)(l)(i). Commerce intends to issue appropriate assessment 
instructions directly to CBP 15 days after publication of this notice.
    If Commerce continues to determine for the final results of this 
administrative review that an exporter under review had no shipments of 
the subject merchandise, any suspended entries that entered under that 
exporter's case number (i.e., at that exporter's cash deposit rate) 
will be liquidated at the rate for the China-wide entity.\30\ Commerce 
intends to issue appropriate assessment instructions for NSSVC, HSG, 
and TDA to CBP 15 days after publication of the final results of this 
review.
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    \30\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694, 65695 (October 24, 2011).
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Cash Deposit Requirements

    The following cash deposit requirements will be effective for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
finals results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) The cash deposit rates for NSSVC, HSG, and 
TDA will remain unchanged from the rates assigned to them in the most 
recently completed segment for each company; (2) for previously 
investigated or reviewed Chinese and non-Chinese exporters not covered 
by this review that have received a separate rate in a prior segment of 
this proceeding, the cash deposit rate will continue to be the existing 
exporter-specific cash deposit rate published for the most recently 
completed period; (3) for all Chinese exporters of subject merchandise 
that have not been found to be entitled to a separate rate, the cash 
deposit rate will be the rate for the China-wide entity; and (4) for 
all non-Chinese exporters of subject merchandise which have not 
received their own separate rate, the cash deposit rate will be the 
rate applicable to the Chinese exporter that supplied that non-Chinese 
exporter. These cash deposit requirements, when imposed, shall remain 
in effect until further notice.

Notification to Importers Regarding the Reimbursement of Duties

    This notice also serves as a preliminary reminder to importers of 
their responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping and/or countervailing duties 
prior to liquidation of the relevant entries during this review period. 
Failure to comply with this requirement could result in Commerce's 
presumption that reimbursement of antidumping and/or countervailing 
duties occurred and the subsequent assessment of double antidumping 
duties.

Notification Regarding Administrative Protective Order

    This notice also serves as a reminder to parties subject to 
administrative protective orders (APO) of their responsibility 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3), which 
continues to govern business proprietary information in this segment of 
the proceeding. 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 the terms of an 
APO is a sanctionable violation.

Notification to Interested Parties

    This notice is issued and published in accordance with sections 
751(a)(1) and 777(i) of the Act, and 19 CFR 351.221(b)(4).

    Dated: November 16, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2020-26091 Filed 11-24-20; 8:45 am]
BILLING CODE 3510-DS-P