[Federal Register Volume 78, Number 211 (Thursday, October 31, 2013)]
[Notices]
[Pages 65265-65268]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-26002]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-995]
Grain-Oriented Electrical Steel from the People's Republic of
China: Initiation of Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, formerly Import Administration,
International Trade Administration, Department of Commerce.
DATES: Effective Date: October 31, 2013.
FOR FURTHER INFORMATION CONTACT: Yasmin Nair at (202) 482-3813 or
Angelica Mendoza at (202) 482-3019, AD/CVD Operations, Enforcement and
Compliance, International Trade Administration, Department of Commerce,
14th Street and Constitution Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petition
On September 18, 2013, the Department of Commerce (the Department)
received a countervailing duty (CVD) petition concerning imports of
grain-oriented electrical steel (GOES) from the People's Republic of
China (PRC), filed in proper form, on behalf of AK Steel Corporation
(AK Steel), Allegheny Ludlum, LLC (Allegheny Ludlum), as well as the
United Steelworkers, which represents employees of Allegheny Ludlum
that are engaged in the production of GOES in the United States
(collectively, the petitioners).\1\ The CVD petition was accompanied by
an antidumping duty (AD) petition with respect to seven countries.\2\
The petitioners are domestic producers of GOES. On September 23, 2013,
the Department requested information and clarification for certain
portions of the Petitions.\3\ The petitioners filed their response to
this request on September 26, 2013.\4\
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\1\ See Petition for the Imposition of Countervailing Duties on
imports of Grain-Oriented Electrical Steel from the People's
Republic of China, dated September 18, 2013 (CVD Petition or
Petition).
\2\ See Petition for the Imposition of Antidumping Duties on
imports of Grain-Oriented Electrical Steel from the People's
Republic of China, the Czech Republic, the Federal Republic of
Germany, Japan, the Republic of Korea, Poland, and the Russian
Federation, dated September 18, 2013 (AD Petition) (collectively
referred to as ``Petitions'').
\3\ See Petition for the Imposition of Countervailing Duties on
Grain-Oriented Electrical Steel from the People's Republic of China:
Supplemental Questions, dated September 23, 2013.
\4\ See Petitioners' Response to Commerce Department Request for
Petition Clarifications--Grain-Oriented Electrical Steel from the
People's Republic of China, dated September, 26, 2013.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioners allege that the Government of the
PRC (GOC) is providing countervailable subsidies (within the meaning of
sections 701 and 771(5) of the Act) with respect to imports of GOES
from the PRC, and that imports of GOES from the PRC are materially
injuring, and threaten material injury to, the domestic industry
producing GOES in the United States. The Department finds that the
petitioners filed the Petition on behalf of the domestic industry
because the petitioners are interested parties as defined in sections
771(9)(C) and (D) of the Act, and that the petitioners have
demonstrated sufficient industry support with respect to the initiation
of the investigation the petitioners are requesting.\5\
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\5\ See ``Determination of Industry Support for the Petition''
below.
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Period of Investigation
The period of investigation is January 1, 2012, through December
31, 2012.
Scope of Investigation
The product covered by this investigation is GOES from the PRC. For
a full description of the scope of this investigation, see ``Scope of
Investigation'' at Appendix I of this notice.
Comments on Scope of Investigation
During our review of the Petition, the Department issued questions
to, and received responses from, the petitioners pertaining to the
proposed scope in order to ensure that the scope language in the
Petitions would be an accurate reflection of the products for which the
domestic industry is seeking relief. As discussed in the Preamble to
the regulations,\6\ we are setting aside a period for interested
parties to raise issues regarding product coverage. The Department
encourages interested parties to submit such comments by 5:00 p.m. EST
on November 13, 2013. All comments must be filed on the records of the
PRC CVD investigation, as well as the concurrent PRC, Czech Republic,
Germany, Japan, Republic of Korea, Poland, and the Russian Federation
(Russia) AD investigations.
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\6\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
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Filing Requirements
All submissions to the Department must be filed electronically
using Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (``IA ACCESS''). An
electronically filed document must be received successfully in its
entirety by the time and date
[[Page 65266]]
noted above. Documents excepted from the electronic submission
requirements must be filed manually (i.e., in paper form) with
Enforcement and Compliance's APO/Dockets Unit, Room 1870, Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230, and stamped with the date and time of receipt by the deadline
noted above.\7\
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\7\ See http://www.gpo.gov/fdsys/pkg/FR-2011-07-06/pdf/2011-16352.pdf for details of the Department's Electronic Filing
Requirements, which went into effect on August 5, 2011. Information
regarding IA ACCESS assistance can be found at https://iaaccess.trade.gov/help.aspx and a handbook can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
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Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department
invited representatives of the GOC for consultations with respect to
the Petition.\8\ Consultations were held with the GOC on October 21,
2013.\9\ The memorandum is on file electronically via IA ACCESS.\10\
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\8\ See Letter of Invitation Regarding Countervailing Duty
Petition on Grain-Oriented Electrical Steel from the People's
Republic of China, dated September 19, 2013.
\9\ See Ex-Parte Memorandum, ``Consultations with Official from
the Government of the People's Republic of China on the
Countervailing Duty Petition regarding Grain-Oriented Electrical
Steel from the People's Republic of China,'' dated October 22, 2013.
\10\ See supra note 7 for information pertaining to IA ACCESS.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The United States International Trade Commission
(ITC), which is responsible for determining whether ``the domestic
industry'' has been injured, must also determine what constitutes a
domestic like product in order to define the industry. While both the
Department and the ITC must apply the same statutory definition
regarding the domestic like product (see section 771(10) of the Act),
they do so for different purposes and pursuant to a separate and
distinct authority. In addition, the Department's determination is
subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\11\
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\11\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
Petition).
With regard to the domestic like product, the petitioners do not
offer a definition of the domestic like product distinct from the scope
of the investigation. Based on our analysis of the information
submitted on the record, we have determined that GOES constitutes a
single domestic like product and we have analyzed industry support in
terms of that domestic like product.\12\
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\12\ For a discussion of the domestic like product analysis in
this case, see Countervailing Duty Investigation Initiation
Checklist: Grain-Oriented Electrical Steel from the People's
Republic of China (PRC CVD Initiation Checklist), at Attachment II,
Analysis of Industry Support for the Petitions Covering Grain-
Oriented Electrical Steel from the People's Republic of China, Czech
Republic, Germany, Japan, the Republic of Korea, Poland, and the
Russian Federation. These checklists are dated concurrently with
this notice and on file electronically via IA ACCESS. Documents
filed via IA ACCESS are also accessible in the Central Records Unit
(CRU), Room 7046 of the main Department of Commerce building.
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In determining whether the petitioners have standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in Appendix I of this
notice. To establish industry support, the petitioners provided their
own production of the domestic like product in 2012.\13\ The
petitioners state that there are no other known producers of GOES in
the United States; therefore, the Petition is supported by 100 percent
of the U.S. industry.\14\
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\13\ See Volume I of the Petition, at 4.
\14\ Id. at 1-3.
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Our review of the data provided in the Petition and other
information readily available to the Department indicates that the
petitioners have established industry support.\15\ First, the Petition
established support from domestic producers (or workers) accounting for
more than 50 percent of the total production of the domestic like
product and, as such, the Department is not required to take further
action in order to evaluate industry support (e.g., polling).\16\
Second, the domestic producers (or workers) have met the statutory
criteria for industry support under section 702(c)(4)(A)(i) of the Act
because the domestic producers (or workers) who support the Petition
account for at least 25 percent of the total production of the domestic
like product.\17\ Finally, the domestic producers (or workers) have met
the statutory criteria for industry support under section
702(c)(4)(A)(ii) of the Act because the domestic producers (or workers)
who support the Petition account for more than 50 percent of the
production of the domestic like product produced by that portion of the
industry expressing support for, or opposition to, the Petition.\18\
Accordingly, the Department determines that the Petition was filed on
behalf of the domestic industry within the meaning of section 702(b)(1)
of the Act.
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\15\ See PRC CVD Initiation Checklist, at Attachment II.
\16\ See section 702(c)(4)(D) of the Act; see also PRC CVD
Initiation Checklist, at Attachment II.
\17\ See PRC CVD Initiation Checklist, at Attachment II.
\18\ Id.
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The Department finds that the petitioners filed the Petition on
behalf of the domestic industry because they are interested parties as
defined in sections 771(9)(C) and (D) of the Act and they have
demonstrated sufficient industry support with respect to the CVD
[[Page 65267]]
investigation that they are requesting the Department initiate.\19\
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\19\ Id.
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Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from the PRC materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioners allege that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. The petitioners allege that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\20\
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\20\ See Volume I of the Petition, at 15-16 and Exhibit GENERAL-
6.
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The petitioners contend that the industry's injured condition is
illustrated by reduced market share; underselling and price depression
or suppression; lost sales and revenues; decline in production,
capacity utilization, and shipments; reduced employment variables; and
decline in financial performance.\21\ We have assessed the allegations
and supporting evidence regarding material injury, threat of material
injury, and causation, and we have determined that these allegations
are properly supported by adequate evidence and meet the statutory
requirements for initiation.\22\
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\21\ See Volume I of the Petition, at 13-30 and Exhibits
GENERAL-4 and GENERAL-6 through GENERAL-12.
\22\ See PRC CVD Initiation Checklist, at Attachment III,
Analysis of Allegations and Evidence of Material Injury and
Causation for the Petitions Covering Grain-Oriented Electrical Steel
from the People's Republic of China, Czech Republic, Germany, Japan,
the Republic of Korea, Poland, and the Russian Federation.
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Initiation of Countervailing Duty Investigation
Section 702(b)(1) of the Act requires the Department to initiate a
CVD investigation whenever an interested party files a CVD petition on
behalf of an industry that: (1) Alleges the elements necessary for an
imposition of a duty under section 701(a) of the Act; and (2) is
accompanied by information reasonably available to the petitioner
supporting the allegations. In the Petition, the petitioners allege
that producers/exporters of GOES in the PRC benefited from
countervailable subsidies bestowed by the government. The Department
has examined the Petition and finds that it complies with the
requirements of section 702(b)(1) of the Act. Therefore, in accordance
with section 702(b)(1) of the Act, we are initiating a CVD
investigation to determine whether manufacturers, producers, or
exporters of GOES from the PRC receive countervailable subsidies from
the government.
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on certain
alleged programs. For a full discussion of the basis for our decision
to initiate or not initiate on each program, see PRC CVD Initiation
Checklist.
A public version of the initiation checklist is available on IA
ACCESS and at http://enforcement.trade.gov/ia-highlights-and-news.html.
Respondent Selection
For this investigation, the Department will release U.S. Customs
and Border Protection (CBP) data for U.S. imports of subject
merchandise during the period of investigation under the following
Harmonized Tariff Schedule of the United States numbers: 7225.11.0000,
7226.11.1000, 7226.11.9030, and 7226.11.9060. We intend to release the
CBP data under Administrative Protective Order (APO) to all parties
with access to information protected by APO shortly after the
announcement of this case initiation. Interested parties must submit
applications for disclosure under APO in accordance with 19 CFR
351.305(b). Instructions for filing such applications may be found at
http://enforcement.trade.gov/apo/.
Interested parties may submit comments regarding the CBP data and
respondent selection by 5:00 p.m. EST on the seventh calendar day after
publication of this notice. Comments must be filed in accordance with
the filing requirements stated above. If respondent selection is
necessary, we intend to base our decision regarding respondent
selection upon comments received from interested parties and our
analysis of the record information within 20 days of publication of
this notice.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), copies of the public version of the petitions have been
provided to the GOC via IA ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the petition to each
known exporter (as named in the petition), as provided in 19 CFR
351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of GOES from the PRC are materially injuring,
or threatening material injury to, a U.S. industry.\23\ A negative ITC
determination will result in the investigation being terminated with
respect to that country; otherwise, this investigation will proceed
according to statutory and regulatory time limits.
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\23\ See section 703(a) of the Act.
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Submission of Factual Information
On April 10, 2013, the Department published Definition of Factual
Information and Time Limits for Submission of Factual Information:
Final Rule, 78 FR 21246 (April 10, 2013), which modified two
regulations related to AD and CVD proceedings: The definition of
factual information (19 CFR 351.102(b)(21)), and the time limits for
the submission of factual information (19 CFR 351.301). The final rule
identifies five categories of factual information in 19 CFR
351.102(b)(21), which are summarized as follows: (i) Evidence submitted
in response to questionnaires; (ii) evidence submitted in support of
allegations; (iii) publicly available information to value factors
under 19 CFR 351.408(c) or to measure the adequacy of remuneration
under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by the
Department; and (v) evidence other than factual information described
in (i)-(iv). The final rule requires any party, when submitting factual
information, to specify under which subsection of 19 CFR 351.102(b)(21)
the information is being submitted and, if the information is submitted
to rebut, clarify, or correct factual information already on the
record, to provide an explanation identifying the information already
on the record that the factual information seeks to rebut, clarify, or
correct. The final rule also modified 19 CFR 351.301 so that, rather
than providing general time limits, there are specific time limits
based on the type of factual information being submitted. These
modifications are effective for all segments initiated on or after May
10, 2013, and thus are applicable to this investigation. Please review
the final rule, available at
[[Page 65268]]
http://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt, prior to
submitting factual information in this investigation.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\24\
Parties are hereby reminded that the Department issued a final rule
with respect to certification requirements, effective August 16, 2013.
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials as well as their
representatives. All segments of any AD or CVD proceedings initiated on
or after August 16, 2013, should use the formats for the revised
certifications provided at the end of the Final Rule.\25\ The
Department intends to reject factual submissions if the submitting
party does not comply with the applicable revised certification
requirements.
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\24\ See section 782(b) of the Act.
\25\ See Certification of Factual Information To Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also the
frequently asked questions regarding the Final Rule, available at
the following: http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Extension of Time Limits
On September 20, 2013, the Department published Extension of Time
Limits, Final Rule, 78 FR 57790 (September 20, 2013), which modified
one regulation related to AD and CVD proceedings regarding the
extension of time limits for submissions in such proceedings (19 CFR
351.302(c)). These modifications are effective for all segments
initiated on or after October 21, 2013, and thus are applicable to this
investigation. Please review the final rule, available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm prior to
requesting an extension.
Tolling Deadlines
As explained in the memorandum from the Assistant Secretary for
Enforcement and Compliance, the Department has exercised its discretion
to toll deadlines for the duration of the closure of the Federal
Government from October 1, through October 16, 2013. See Memorandum for
the Record from Paul Piquado, Assistant Secretary for Enforcement and
Compliance, ``Deadlines Affected by the Shutdown of the Federal
Government'' (October 18, 2013). Therefore, all deadlines in this
segment of the proceeding have been extended by 16 days. If the new
deadline falls on a non-business day, in accordance with the
Department's practice, the deadline will become the next business day.
Accordingly, the revised deadline for the initiation of this
investigation is now October 24, 2013.
Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, the
Department published Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate in this investigation should
ensure that they meet the requirements of these procedures (e.g., the
filing of letters of appearance as discussed at 19 CFR 351.103(d)).
This notice is issued and published pursuant to section 777(i)
of the Act.
Dated: October 24, 2013.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation covers grain-oriented silicon
electrical steel (GOES). GOES is a flat-rolled alloy steel product
containing by weight at least 0.6 percent but not more than 6
percent of silicon, not more than 0.08 percent of carbon, not more
than 1.0 percent of aluminum, and no other element in an amount that
would give the steel the characteristics of another alloy steel, in
coils or in straight lengths. The GOES that is subject to this
investigation is currently classifiable under subheadings
7225.11.0000, 7226.11.1000, 7226.11.9030, and 7226.11.9060 of the
Harmonized Tariff Schedule of the United States (HTSUS). Although
the HTSUS subheadings are provided for convenience and customs
purposes, the written description of the scope of this investigation
is dispositive.
[FR Doc. 2013-26002 Filed 10-30-13; 8:45 am]
BILLING CODE 3510-DS-P