[Federal Register Volume 79, Number 57 (Tuesday, March 25, 2014)]
[Notices]
[Pages 16290-16292]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-06587]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-583-852]
Non-Oriented Electrical Steel from Taiwan: Preliminary
Countervailing Duty Determination and Alignment of Final Determination
With Final Antidumping Determination
AGENCY: Enforcement and Compliance, formerly Import Administration,
International Trade Administration, Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of non-oriented electrical steel (NOES) from
Taiwan. The period of investigation (POI) is January 1, 2012, through
December 31, 2012. Interested parties are invited to comment on this
preliminary determination.\1\
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\1\ The deadline for the preliminary determination of this
investigation was March 17, 2014. Due to the closure of the Federal
Government in Washington, DC on March 17, 2014, the Department
reached this determination on the next business day (i.e., March 18,
2014). See Notice of Clarification: Application of ``Next Business
Day'' Rule for Administrative Determination Deadlines Pursuant to
the Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
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DATES: Effective Date: March 25, 2014.
FOR FURTHER INFORMATION CONTACT: Patricia Tran and Christopher Hargett,
Office III, AD/CVD Operations, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue NW., Washington, DC 20230; telephone:
(202) 482-1503 and (202) 482-4161, respectively.
SUPPLEMENTARY INFORMATION:
Alignment of Final Countervailing Duty (CVD) Determination With Final
Antidumping Duty (AD) Determination
On the same day that the Department initiated this countervailing
duty (CVD) investigation, the Department also initiated antidumping
duty (AD) investigations of NOES from Germany, Japan, the People's
Republic of China (PRC), the Republic of Korea, Sweden, and Taiwan.\2\
The CVD investigation and the AD investigations cover the same
merchandise. On March 11, 2014, in accordance with section 705(a)(1) of
the Tariff Act of 1930, as amended (Act), alignment of the final CVD
determination with the final AD determination of NOES from Taiwan was
requested by the petitioner.\3\ Therefore, in accordance with section
705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning the
final CVD determination with the final AD determination. Consequently,
the final CVD determination will be issued on the same date as the
final AD determination, which is currently scheduled to be issued no
later than July 29, 2014, unless postponed.
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\2\ See Non-Oriented Electrical Steel From the People's Republic
of China, the Republic of Korea, and Taiwan: Initiation of
Countervailing Duty Investigations, 78 FR 68412 (November 14, 2013)
and Non-Oriented Electrical Steel From the People's Republic of
China, Germany, Japan, the Republic of Korea, Sweden, and Taiwan:
Initiation of Antidumping Duty Investigations, 78 FR 69041 (November
18, 2013).
\3\ See Letter from Petitioner regarding ``Non-Oriented
Electrical Steel from Taiwan: Request to Align,'' (March 11, 2014).
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Scope of the Investigation
The merchandise subject to this investigation consists of (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. For a complete
description of the scope of the investigation, see Appendix 1 to this
notice.
Methodology
The Department is conducting this CVD investigation in accordance
with section 701 of the Act. For a full description of the methodology
underlying our preliminary conclusions, see the Preliminary Decision
Memorandum.\4\ 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 (IA ACCESS). IA ACCESS is available to registered users at
http://iaaccess.trade.gov, and is available to all parties in the
Central Records Unit, room 7046 of the main Department of Commerce
building. In addition, a complete version of the Preliminary Decision
Memorandum can be accessed directly on the internet at http://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum
and the electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\4\ See Memorandum from Gary Taverman, Senior Advisor for
Antidumping and Countervailing Duty Operations, to Paul Piquado,
Assistant Secretary for Enforcement and Compliance, regarding
``Decision Memorandum for the Preliminary Determination in the
Countervailing Duty Investigation Non-Oriented Electrical Steel from
Taiwan,'' dated concurrently with this notice (Preliminary Decision
Memorandum).
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For this preliminary determination, we have relied on facts
available for Leicong Industrial Co., Ltd. (Leicong), a mandatory
respondent, because the company did not act to the best of its ability
and respond to the Department's requests for information. Further, we
have drawn an adverse inference in selecting from among the facts
otherwise available to calculate the ad valorem rate for Leicong.\5\
For further information, see ``Use of Facts Otherwise Available and
Adverse Inferences'' in the Preliminary Decision Memorandum.
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\5\ See sections 776(a) and (b) of the Act.
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The Department's analysis of program usage by China Steel
Corporation (CSC), a mandatory respondent, and its cross-owned
affiliates HiMag Magnetic Corporation (HIMAG), and China Steel Global
Trading Corporation (CSGT) (collectively, CSC Companies), is also
contained in the Preliminary Decision Memorandum.
[[Page 16291]]
Preliminary Determination and Suspension of Liquidation
In accordance with section 703(d)(1)(A)(i) of the Act, we
calculated a CVD rate for each individually investigated producer/
exporter of the subject merchandise. For companies not individually
investigated, we calculated an all others rate as described in the
Preliminary Decision Memorandum.
We preliminarily determine the countervailable subsidy rates to be:
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Company Subsidy rate
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China Steel Corporation (CSC), HiMag Magnetic Corporation 0.15 percent (de minimis).
(HIMAG), and China Steel Global Trading Corporation (CSGT)
(collectively, CSC Companies).
Leicong Industrial Co., Ltd. (Leicong).......................... 12.82 percent.
All Others...................................................... 6.41 percent.
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With the exception of entries from the CSC Companies, in accordance
with sections 703(d)(1)(B) and (2) of the Act, we are directing U.S.
Customs and Border Protection (CBP) to suspend liquidation of all
entries of NOES from Taiwan that are entered, or withdrawn from
warehouse, for consumption on or after the date of the publication of
this notice in the Federal Register, and to require a cash deposit for
such entries of the merchandise in the amounts indicated above. Because
we preliminarily determine that the CVD rate in this investigation for
the CSC Companies is de minimis, we will not direct CBP to suspend
liquidation of the CSC Companies' entries of the subject merchandise
from Taiwan.
In accordance with sections 703(d) and 705(c)(5)(A)(i) of the Act,
for companies not investigated, we apply an ``all-others'' rate equal
to the weighted average countervailable subsidy rates established for
exporters and producers individually investigated, excluding any zero
and de minimis countervailable subsidy rates, and any rates determined
entirely under section 776 of the Act. As indicated above, for this
preliminary determination, we have calculated a de minimis
countervailable subsidy rate for the CSC Companies and a
countervailable subsidy rate for Leicong based entirely on adverse
facts available (AFA) as provided under section 776(b) of the Act.
Where the rates for the investigated companies are all zero or de
minimis or based entirely on AFA, section 705(c)(5)(A)(ii) of the Act
instructs the Department to establish an all-others rate using ``any
reasonable method.'' We preliminarily determine that a reasonable
method for establishing the all-other rate is to calculate a simple
average of the de minimis net subsidy rate calculated for the CSC
companies and the total AFA rate assigned to Leicong.
Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information submitted by the respondents prior to making our final
determination.
Disclosure and Public Comment
The Department intends to disclose to interested parties the
calculations performed in connection with this preliminary
determination within five days of public announcement of this
determination.\6\ Interested parties may submit case and rebuttals
briefs, as well as request a hearing.\7\ For a schedule of the
deadlines for filing case briefs, rebuttal briefs, and hearing request,
see the Preliminary Determination Memorandum.
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\6\ See 19 CFR 351.224(b).
\7\ See 19 CFR 351.309, 19 CFR 351.310.
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International Trade Commission Notification
In accordance with section 703(f) of the Act, we will notify the
International Trade Commission (ITC) of our determination. In addition,
we are making available to the ITC all non-privileged and non-
proprietary information relating to this investigation. We will allow
the ITC access to all privileged and business proprietary information
in our files, provided the ITC confirms that it will not disclose such
information, either publicly or under an administrative protective
order, without the written consent of the Assistant Secretary for
Enforcement and Compliance.
In accordance with section 705(b)(2) of the Act, if our final
determination is affirmative, the ITC will make its final determination
within 45 days after the Department makes its final determination.
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: March 18, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix 1
Scope of the Investigation
The merchandise subject to this investigation consists of non-
oriented electrical steel (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'' in
the prior sentence 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 Oesteds) along (i.e., parallel to) the rolling
direction of the sheet (i.e., B800 value). NOES contains
by weight at least 1.25 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 is subject to this investigation whether it is fully
processed (fully annealed to develop final magnetic properties) or
semi-processed (finished to final thickness and physical form but
not fully annealed to develop final magnetic properties); whether or
not it is coated (e.g., with enamel, varnish, natural oxide surface,
chemically treated or phosphate surface, or other non-metallic
materials). 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 this investigation is not
limited to merchandise meeting the specifications noted above.
NOES is sometimes referred to as cold-rolled non-oriented
electrical steel (CRNO), non-grain oriented (NGO), non-oriented
(NO), or cold-rolled non-grain oriented (CRNGO). These terms are
interchangeable.
The subject merchandise is provided for in subheadings
7225.19.0000, 7226.19.1000, and 7226.19.9000 of the Harmonized
Tariff Schedule of the United States (HTSUS). Subject merchandise
may also be entered under subheadings 7225.50.8085, 7225.99.0090,
7226.92.5000, 7226.92.7050,
[[Page 16292]]
7226.92.8050, 7226.99.0180 of the HTSUS. Although HTSUS subheadings
are provided for convenience and customs purposes, the written
description of the scope is dispositive.
Appendix 2
List of Topics Discussed in the Preliminary Decision Memorandum
1. Scope Comments
2. Scope of the Investigation
3. Injury Test
4. Subsidies Valuation
5. Use of Facts Otherwise Available and Adverse Inferences
6. Analysis of Programs
7. Calculation of the All Others Rate
8. Disclosure and Public Comment
9. Verification
[FR Doc. 2014-06587 Filed 3-24-14; 8:45 am]
BILLING CODE 3510-DS-P