[Federal Register Volume 81, Number 1 (Monday, January 4, 2016)]
[Notices]
[Pages 63-67]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-32758]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-863]
Certain Corrosion-Resistant Steel Products From India:
Affirmative Preliminary Determination of Sales at Less Than Fair Value
and Postponement of Final Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
[[Page 64]]
SUMMARY: The Department of Commerce (the ``Department'') preliminarily
determines that certain corrosion-resistant steel products
(``corrosion-resistant steel'') from India are being, or are 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 April 1, 2014, through
March 31, 2015. The estimated weighted-average dumping margins of sales
at LTFV are shown in the ``Preliminary Determination'' section of this
notice. Interested parties are invited to comment on this preliminary
determination.
DATES: Effective date: January 4, 2016.
FOR FURTHER INFORMATION CONTACT: Alexis Polovina or Ryan Mullen, AD/CVD
Operations, Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3927 or (202) 482-5260, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published the notice of initiation of this
investigation on June 30, 2015.\1\ For a complete description of the
events that followed the initiation of this investigation, see the
memorandum that is dated concurrently with this determination and
hereby adopted by this notice.\2\ A list of topics included in the
Preliminary Decision Memorandum is included as Appendix II to this
notice. 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 (``ACCESS'').
ACCESS is available to registered users at https://access.trade.gov,
and to all parties in the Central Records Unit, Room B8024 of the main
Department of Commerce building. In addition, a complete version of the
Preliminary Decision Memorandum can be found 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 Certain Corrosion-Resistant Steel Products from Italy,
India, the People's Republic of China, the Republic of Korea, and
Taiwan: Initiation of Less-Than-Fair-Value Investigations, 80 FR
37228 (June 30, 2015) (``Initiation Notice'').
\2\ See Memorandum from Gary Taverman, Associate Deputy
Assistant Secretary for Antidumping and Countervailing Duty
Operations, to Paul Piquado, Assistant Secretary for Enforcement and
Compliance ``Decision Memorandum for the Preliminary Determination
in the Antidumping Duty Investigation of Certain Corrosion-Resistant
Steel Products from India'' (``Preliminary Decision Memorandum''),
dated concurrently with this notice.
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Scope of the Investigation
The product covered by this investigation is corrosion-resistant
steel from India. For a full description of the scope of this
investigation, see the ``Scope of the Investigation,'' in Appendix I.
Scope Comments
In accordance with the preamble to the Department's regulations,\3\
the Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., ``scope'').\4\ Certain
interested parties commented on the scope of the investigation as it
appeared in the Initiation Notice, as well as additional language
proposed by the Department. For a summary of the product coverage
comments and rebuttal responses submitted to the record for this
preliminary determination, and accompanying discussion and analysis of
all comments timely received, see the Preliminary Scope Decision
Memorandum.\5\ The Department is preliminarily modifying the scope
language as it appeared in the Initiation Notice to clarify that
corrosion-resistant steel which is further processed in a third country
is covered by the scope of the investigation. See ``Scope of the
Investigation,'' in Appendix I, which includes the additional
clarifying language.
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\3\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
\4\ See Initiation Notice, 80 FR at 37229.
\5\ See Memorandum to Gary Taverman, Associate Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations,
``Certain Corrosion-Resistant Steel Products From the People's
Republic of China, India, Italy, the Republic of Korea, and Taiwan:
Scope Comments Decision Memorandum for the Preliminary
Determinations,'' dated concurrently with this preliminary
determination.
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Methodology
The Department is conducting this investigation in accordance with
section 731 of the Act. Export prices have been calculated in
accordance with section 772(a) of the Act. Constructed export prices
have been calculated in accordance with section 772(b) 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
preliminary conclusions, see the Preliminary Decision Memorandum.
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 and de
minimis margins, and any margins determined entirely under section 776
of the Act.\6\ Therefore, we preliminary calculated the all-others rate
based on a weighted-average of the dumping margins calculated for the
mandatory respondents using each company's publicly-ranged values for
the merchandise under consideration.\7\
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\6\ With two respondents, we would normally calculate (A) a
weighted-average of the dumping margins calculated for the mandatory
respondents; (B) a simple average of the dumping margins calculated
for the mandatory respondents; and (C) a weighted-average of the
dumping margins calculated for the mandatory respondents using each
company's publicly-ranged values for the merchandise under
consideration. We would compare (B) and (C) to (A) and select the
rate closest to (A) as the most appropriate rate for all other
companies. See Ball Bearings and Parts Thereof From France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010).
\7\ See Memorandum to the File, From Ryan Mullen, International
Trade Compliance Analyst, ``Certain Corrosion-Resistant Steel
Products from India: Calculation of All-Others' Rate in Preliminary
Determination,'' dated concurrently with this preliminary
determination.
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Preliminary Determination
The Department preliminarily determines that the following
weighted-average dumping margins exist:
[[Page 65]]
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Weighted-
average
Exporter/producer margin
(percent)
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JSW: \8\, JSW Steel Ltd., JSW Coated Products Limited....... 6.64
Uttam Galva: \9\, Uttam Galva Steels Limited, Uttam Value 6.92
Steels Limited, Atlantis International Services Company
Ltd., Uttam Galva Steels, Netherlands, B.V., and Uttam
Galva Steels (BVI) Limited.................................
All-Others.................................................. 6.76
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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 corrosion-resistant steel from India as described in the
scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register.\10\
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\8\ We preliminarily find JSWSL and its wholly-owned affiliated
JSW Steel Coated Products Limited (``JSCPL''), (collectively
``JSW'') are affiliated and have met the criteria to be collapsed.
See Memorandum to the File, Through Catherine Bertrand, Program
Manager, Enforcement and Compliance, Office V, From Alexis Polovina,
Senior International Trade Analyst, Enforcement and Compliance,
Office V, ``Antidumping Duty Investigation of Certain Corrosion
Resistant Steel Products from India: JSW Preliminary Affiliation and
Collapsing Memorandum,'' dated concurrently with this preliminary
determination. Therefore, we will assign one rate to these
companies.
\9\ We preliminarily find Uttam Galva Steels, Ltd. (``UGSL'') to
be affiliated with these companies and that they have met the
criteria to be treated as a single entity. For further discussion of
this issue, which includes business proprietary information, see
Memorandum to James C. Doyle, Director, Office V, from Ryan Mullen,
International Trade Analyst, Office V, through Catherine Bertrand,
Program Manager, Office V ``Antidumping Duty Investigation of
Certain Corrosion Resistant Steel Products from India: JSW
Preliminary Affiliation and Single Entity Memorandum'' dated
concurrently with this preliminary determination. Therefore, we will
assign one rate to these companies.
\10\ On October 29, 2015, we preliminarily found that critical
circumstances do not exist for imports exported by JSW, Uttam Galva,
and ``all others.'' Because we reached a preliminary negative
critical circumstances determination in this LTFV investigation, the
suspension of liquidation will not be retroactive from effective
from the date of publication of this notice. See Antidumping and
Countervailing Duty Investigations of Corrosion-Resistant Steel
Products from India, Italy, the People's Republic of China, the
Republic of Korea, and Taiwan: Preliminary Determination of Critical
Circumstances, 80 FR 68504 (November 5, 2015).
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Pursuant to section 733 (d)(1)(B) of the Act and 19 CFR 351.205(d),
the Department will instruct CBP to require a cash deposit equal to the
weighted-average amount by which the NV exceeds U.S. price as indicated
in the chart above,\11\ adjusted where appropriate for export
subsidies,\12\ as follows: (1) The rate for JSW, when adjusted for
export subsidies, is 3.91 percent; (2) the rate for Uttam Galva, when
adjusted for export subsidies, is 2.96 percent; (3) the rate for all
others producers or exporters, when adjusted for export subsidies, is
3.11 percent. These suspension of liquidation instructions will remain
in effect until further notice.
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\11\ 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).
\12\ See section 772(c)(1)(C) of the Act. Unlike in
administrative reviews, the Department calculates the adjustment for
export subsidies in investigations not in the margin calculation
program, but in the cash deposit instructions issued to CBP. See
Notice of Final Determination of Sales at Less Than Fair Value, and
Negative Determination of Critical Circumstances: Certain Lined
Paper Products from India, 71 FR 45012 (August 8, 2006), and
accompanying Issues and Decision Memorandum at Comment 1.
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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). Interested parties are
invited to comment on this preliminary determination. Case briefs or
other written comments may be submitted to the Assistant Secretary for
Enforcement and Compliance no later than seven days after the date on
which the final verification report is issued in this proceeding, and
rebuttal briefs, limited to issues raised in case briefs, may be
submitted no later than five days after the deadline date for case
briefs.\13\ 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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\13\ See 19 CFR 351.309.
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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 and Compliance, U.S. Department of Commerce.
All documents must be filed electronically using ACCESS. An
electronically-filed request must be received successfully in its
entirety by ACCESS by 5:00 p.m. Eastern Time, within 30 days after the
date of publication of this notice.\14\ Requests should contain the
party's name, address, and telephone number, the number of
participants, and a list of the issues to be discussed. If a request
for a hearing is made, the Department intends to hold the hearing at
the U.S. Department of Commerce, 14th Street and Constitution Avenue
NW., Washington, DC 20230, at a time and date to be determined. Parties
should confirm by telephone the date, time, and location of the hearing
two days before the scheduled date.
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\14\ See 19 CFR 351.310(c).
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Verification
As provided in section 782(i) of the Act, we intend to verify
information relied upon in making our final determination.
Postponement of Final Determination and Extension of Provisional
Measures
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
Petitioners. 19 CFR 351.210(e)(2) requires that requests by respondents
for postponement of a final antidumping 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.
On December 2, 2015, and December 3, 2015, pursuant to 19 CFR
351.210(b) and (e), JSW and Uttam Galva requested that, contingent upon
an affirmative preliminary determination of sales at LTFV for the
respondents, the Department postpone the final determination and that
provisional measures be extended to a period not to exceed six
months.\15\
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\15\ See Letter to the Secretary of Commerce from JSW ``Request
for Postponement of Final Determination'' (December 2, 2015); see
also Letter to the Secretary of Commerce from Uttam Galva ``Request
for Postponement of Final Determination'' (December 3, 2015).
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[[Page 66]]
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 exporters account for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, we are postponing the final determination and
extending the provisional measures from a four-month period to a period
not greater than six months. Accordingly, we will make 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.\16\
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\16\ See also 19 CFR 351.210(e).
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International Trade Commission (``ITC'') Notification
In accordance with section 733(f) of the Act, we are notifying the
ITC of our affirmative preliminary determination of sales at LTFV. If
our final determination is affirmative, the ITC will determine before
the later of 120 days after the date of this preliminary determination
or 45 days after our final determination whether these imports are
materially injuring, or threaten material injury to, the U.S. industry.
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: December 21, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The products covered by the scope 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 metal 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 4.75 mm or more
than 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 for above, and
(2) where the width and thickness vary for a specific period
(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 in this investigation 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; (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
1.25 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 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 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
investigations 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
investigation unless specifically excluded. The following products
are outside of and/or specifically excluded from the scope of this
investigation:
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
measure at least twice the thickness; and
Certain clad stainless flat-rolled products, which are
three-layered corrosion-resistant steel 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 investigation 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 investigation may also enter under
the following HTSUS item numbers: 7210.90.1000, 7215.90.1000,
7215.90.3000, 7215.20.1500, 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
investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Preliminary Determination of No Critical Circumstances
V. Scope of the Investigation
VI. All-Others Rate
VII. Affiliation and Collapsing
VIII. Discussion of Methodology
A. Determination of the Comparison Method
B. Results of the Differential Pricing Analysis
IX. Date of Sale
X. Product Comparisons
XI. Export Price and Constructed Export Price
XII. Normal Value
A. Comparison Market Viability
B. Affiliated Party Transactions and Arm's-Length Test
C. Level of Trade
D. Cost of Production Analysis
1. Calculation of COP
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2. Test of Comparison Market Sales Prices
3. Results of the COP Test
E. Calculation of NV Based on Comparison-Market Prices
XIII. Currency Conversion
XIV. Adjustments to Cash Deposit Rates for Export Subsidies in
Companion Countervailing Duty Investigation
XV. Conclusion
[FR Doc. 2015-32758 Filed 12-31-15; 8:45 am]
BILLING CODE 3510-DS-P