[Federal Register Volume 79, Number 90 (Friday, May 9, 2014)]
[Notices]
[Pages 26717-26720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-10700]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-851-803]


Grain-Oriented Electrical Steel From the Czech Republic: 
Preliminary Determination of Sales at Less Than Fair Value, Negative 
Preliminary Determination of Critical Circumstances, and Postponement 
of Final Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that grain-oriented electrical steel (GOES) from the Czech 
Republic is being, or is likely to be, sold in the United States at 
less than fair value (LTFV), as provided in section 733(b) of the 
Tariff Act of 1930, as amended (the Act). The period of investigation 
(POI) is July 1, 2012, through June 30, 2013. The estimated weighted-
average dumping margins of sales at LTFV are listed in the 
``Preliminary Determination'' section of this notice. Interested 
parties are invited to comment on this preliminary determination.

DATES: Effective Date: May 9, 2014.

FOR FURTHER INFORMATION CONTACT: Dennis McClure at (202) 482-5973 or 
Stephen Bailey at (202) 482-0193, AD/CVD Operations, Office II, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    The Department initiated this investigation on October 24, 2013.\1\ 
For a complete description of the events that followed the initiation 
of this investigation, see the memorandum that is dated concurrently 
with and hereby adopted by this notice (Preliminary Decision 
Memorandum).\2\ The

[[Page 26718]]

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 at http://enforcement.trade.gov/frn/. The signed 
Preliminary Decision Memorandum and the electronic version of the 
Preliminary Decision Memorandum are identical in content.
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    \1\ See Grain-Oriented Electrical Steel From the People's 
Republic of China, the Czech Republic, Germany, Japan, the Republic 
of Korea, Poland, and the Russian Federation: Initiation of 
Antidumping Duty Investigations, 78 FR 65283 (Oct. 31, 2013) 
(Initiation Notice). AK Steel Corporation, Allegheny Ludlum, LLC, 
and the United Steelworkers (collectively, the petitioners) filed 
the underlying petitions. Id. at 65283.
    \2\ See memorandum to Paul Piquado, Assistant Secretary for 
Enforcement and Compliance, from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
entitled: ``Decision Memorandum for the Preliminary Determination of 
the Antidumping Duty Investigation of Grain-Oriented Electrical 
Steel from the Czech Republic'' (Preliminary Decision Memorandum).
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Scope of the Investigation

    The scope of the investigation covers GOES, which is a flat-rolled 
alloy steel product containing by weight specific levels of silicon, 
carbon and aluminum. For a complete description of the scope of the 
investigation, see Appendix I to this notice.
    Various parties submitted comments on the scope. For discussion of 
these comments, see the Preliminary Decision Memorandum.

Tolling and Postponement of Deadline for Preliminary Determination

    As explained in the memorandum from the Assistant Secretary for 
Enforcement and Compliance, the Department exercised its discretion to 
toll deadlines for the duration of the partial closure of the Federal 
Government from October 1, through October 16, 2013. Therefore, all 
deadlines in this segment of the proceeding have been extended by 16 
days.\3\ 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.\4\
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    \3\ See Memorandum for the Record from Paul Piquado, Assistant 
Secretary for Enforcement and Compliance, ``Deadlines Affected by 
the Shutdown of the Federal Government,'' dated October 18, 2013.
    \4\ 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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    On February 10, 2014, the petitioners made a timely request for a 
50-day postponement of the preliminary determinations for this and the 
other concurrent GOES antidumping duty investigations, pursuant to 
section 733(c)(1)(A) of the Act and 19 CFR 351.205(e).\5\ On February 
20, 2014, we postponed the preliminary determinations by 50 days.\6\ As 
a result of the postponement and aforementioned tolling, the revised 
deadline for the preliminary determination of this investigation is now 
May 2, 2014.
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    \5\ See letter from the petitioners entitled, ``Antidumping 
Investigations of Grain-Oriented Electrical Steel (``GOES'') From 
China, Czech Republic, Germany, Japan, South Korea, Poland, and 
Russia: Petitioners' Request for Extension of the Preliminary 
Determination,'' dated February 10, 2014.
    \6\ See Grain-Oriented Electrical Steel From the People's 
Republic of China, the Czech Republic, Germany, Japan, the Republic 
of Korea, Poland, and the Russian Federation: Postponement of 
Preliminary Determinations in the Antidumping Duty Investigations, 
79 FR 11082 (February 27, 2014).
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Methodology

    The Department conducted this investigation in accordance with 
section 731 of the Act. Export price (EP) and constructed export price 
(CEP) are calculated in accordance with section 772 of the Act. Normal 
value (NV) is calculated in accordance with section 773 of the Act.
    For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum.

Negative Preliminary Determination of Critical Circumstances

    On February 24, 2014, the petitioners filed a timely allegation, 
pursuant to section 733(e)(1) of the Act and 19 CFR 351.206(c)(1), 
alleging that critical circumstances exist with respect to imports of 
the merchandise under consideration.\7\ In accordance with 19 CFR 
351.206(c)(2)(i), when a critical circumstances allegation is submitted 
more than 20 days before the scheduled date of the preliminary 
determination, the Department must issue a preliminary finding whether 
there is a reasonable basis to believe or suspect that critical 
circumstances exist no later than the date of the preliminary 
determination. We conducted an analysis of critical circumstances in 
accordance with section 733(e) of the Act and 19 CFR 351.206, and 
preliminarily determined that critical circumstances do not exist for 
imports of GOES from the Czech Republic. For a full description of the 
methodology and results of our analysis, see the Preliminary Decision 
Memorandum.
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    \7\ See letter from the petitioners, ``Grain-Oriented Electricl 
{sic{time}  Steel from the Czech Republic, Poland, and the Russian 
Federation--Critical Circumstances Allegations,'' dated February 24, 
2014 (the petitioners' Critical Circumstances Allegation).
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All Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated ``all 
others'' rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated, excluding any zero or de 
minimis margins, and any margins determined entirely under section 776 
of the Act. Pursuant to section 735(c)(5)(B) of the Act, if the 
estimated weighted-average dumping margins established for all 
exporters and producers individually examined are zero, de minimis or 
determined based entirely under section 776 of the Act, the Department 
may use any reasonable method to establish the estimated dumping margin 
for all other producers or exporters.
    We based our calculation of the ``All Others'' rate on the 
weighted-average of the margins calculated for ArcelorMittal 
Fr[yacute]dek-M[iacute]stek (AMFM) and Sujani Enterprises, Inc. 
(Sujani) using publicly-ranged data. Because we cannot apply our normal 
methodology of calculating a weighted-average margin due to requests to 
protect business-proprietary information, we find this rate to be the 
best proxy of the actual weighted-average margin determined for these 
respondents.\8\ For further discussion of this calculation, see 
memorandum entitled ``Calculation of the All Others Rate for the 
Preliminary Determination of the Antidumping Duty Investigation of 
Grain-Oriented Electrical Steel From the Czech Republic,'' dated 
concurrently with this notice.
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    \8\ See, e.g., Certain Frozen Warmwater Shrimp From India: Final 
Results of Antidumping Duty Administrative Review, Partial 
Rescission, and Final No Shipment Determination, 76 FR 41203, 41205 
(July 13, 2011).
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Preliminary Determination

    The preliminarily estimated weighted-average dumping margins are as 
follows:

 
------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                 Manufacturer/ exporter                       dumping
                                                              margin
                                                             (percent)
------------------------------------------------------------------------
ArcelorMittal Fr[yacute]dek-M[iacute]stek...............           11.45
Sujani Enterprises, Inc.................................           10.35
All Others..............................................           10.38
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed to interested parties 
in this proceeding within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b).

[[Page 26719]]

Verification

    As provided in section 782(i) of the Act, we intend to verify 
information relied upon in making our final determination.

Public Comment

    Interested parties are invited to comment on this preliminary 
determination. Interested parties may submit case briefs to the 
Department no later than seven days after the date of the final 
verification report issued in this proceeding. Rebuttal briefs, the 
content of which is limited to the issues raised in the case briefs, 
must be filed within five days from the deadline date for the 
submission of case briefs.\9\ A list of authorities used, a table of 
contents, and an executive summary of issues should accompany any 
briefs submitted to the Department.\10\ Executive summaries should be 
limited to five pages total, including footnotes. Interested parties 
who wish to comment on the preliminary determinations must file briefs 
electronically using IA ACCESS. An electronically filed document must 
be received successfully in its entirety by the Department's electronic 
records system, IA ACCESS, by 5 p.m. Eastern Standard Time on the date 
the document is due.
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    \9\ See 19 CFR 351.309(d)(1) and 19 CFR 351.309(d)(2).
    \10\ See 19 CFR 351.309(c)(2).
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    In accordance with section 774 of the Act, the Department will hold 
a hearing, if timely requested, to afford interested parties an 
opportunity to comment on arguments raised in case or rebuttal briefs, 
provided that such a hearing is requested by an interested party.\11\ 
Interested parties who wish to request a hearing, or to participate if 
one is requested, must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce, 
filed electronically using IA ACCESS, as noted above. An 
electronically-filed request must be received successfully in its 
entirety by IA ACCESS by 5 p.m. Eastern Standard Time within 30 days 
after the date of publication of this notice.\12\ Requests should 
contain the following information: (1) The party's name, address, and 
telephone number; (2) the number of participants; and (3) a list of the 
issues to be discussed.\13\ If a request for a hearing is made, we will 
inform parties of the scheduled date for the hearing which will be held 
at the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW., Washington, DC 20230.\14\ Parties should confirm by telephone the 
date, time, and location of the hearing.
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    \11\ See also 19 CFR 351.310.
    \12\ Id.
    \13\ Id.
    \14\ Id.
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Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we will direct 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of subject merchandise from the Czech Republic entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register.
    Pursuant to section 733(d) of the Act and 19 CFR 351.205(d), we 
will instruct CBP to require cash deposits \15\ equal to the dumping 
margins, as indicated in the chart above, as follows: (1) The rate for 
the mandatory respondents listed above will be the respondent-specific 
rate we determined in this preliminary determination; (2) if the 
exporter is not a mandatory respondent identified above, but the 
producer is, the rate will be the specific rate established for the 
producer of the subject merchandise; and (3) the rate for all other 
producers or exporters will be the all others rate. These suspension of 
liquidation instructions will remain in effect until further notice.
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    \15\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
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Postponement of Final Determination

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. 19 CFR 351.210(e)(2) requires that requests by 
respondents for postponement of a final determination be accompanied by 
a request for extension of provisional measures from a four-month 
period to a period not more than six months in duration.
    Respondents AMFM and Sujani requested that, in the event of an 
affirmative preliminary determination in this investigation, the 
Department postpone its final determination by 60 days (i.e., to 135 
days after publication of the preliminary determination), and agreed to 
extend the application of the provisional measures prescribed under 
section 733(d) of the Act and 19 CFR 351.210(e)(2), from a four-month 
period to a period not to exceed six months.\16\ In accordance with 
section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because 
(1) our preliminary determination is affirmative; (2) the requesting 
producer or exporter accounts for a significant proportion of exports 
of the subject merchandise; and (3) no compelling reasons for denial 
exist, we are postponing the final determination until no later than 
135 days after the publication of this notice in the Federal Register 
and extending the provisional measures from a four-month period to a 
period not greater than six months. Accordingly, we will issue our 
final determination no later than 135 days after the date of 
publication of this preliminary determination, pursuant to section 
735(a)(2) of the Act.\17\
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    \16\ See letters from AMFM and Sujani entitled, ``Grain-Oriented 
Electrical Steel From The Czech Republic: Request To Postpone Final 
Determination,'' dated April 30, 2014.
    \17\ See 19 CFR 351.210(b)(2) and (e).
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International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, we will notify the 
ITC of our affirmative preliminary determination of sales at LTFV. If 
our final determination in this investigation is affirmative, section 
735(b)(2) of the Act requires that the ITC make its final determination 
as to whether the domestic industry in the United States is materially 
injured, or threatened with material injury, by reason of imports of 
GOES from the Czech Republic before the later of 120 days after the 
date of this preliminary determination or 45 days after our final 
determination.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act.

    Dated: May 2, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The scope of the 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

[[Page 26720]]

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. Excluded 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 HTSUS as a 
transformer part (i.e., laminations).

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

1. Summary
2. Background
3. Period of Investigation
4. Scope of the Investigation
5. Scope Comments
6. Product Comparisons
7. Respondent Selection
8. Critical Circumstances
9. Discussion of the Methodology
    a. Determination of the Comparison Method
    b. Results of the Differential Pricing Analysis
    c. Date of Sale
    d. Export Price/Constructed Export Price
    i. AMFM
    ii. Sujani
e. Normal Value
    i. Home Market Viability
    ii. Particular Market Situation
    iii. Affiliated-Party Transactions and Arm's-Length Test
    iv. Level of Trade
    1. AMFM
    2. Sujani
    f. Cost of Production Analysis
    i. Calculation of Cost of Production
    ii. Test of Comparison Market Prices
    iii. Results of COP Test
    g. Calculation of NV Based on Comparison Market Prices
    i. AMFM
    ii. Sujani
10. Currency Conversion
11. Conclusion

[FR Doc. 2014-10700 Filed 5-8-14; 8:45 am]
BILLING CODE 3510-DS-P