[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Notices]
[Pages 49940-49943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17952]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-351-844]
Countervailing Duty Investigation of Certain Cold-Rolled Steel
Flat Products From Brazil: Final Affirmative Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
countervailable subsidies are being
[[Page 49941]]
provided to producers and exporters of certain cold-rolled steel flat
products (cold-rolled steel, or CRS) from Brazil. For information on
the estimated subsidy rates, see the ``Final Determination'' section of
this notice. The period of investigation is January 1, 2014, through
December 31, 2014.
DATES: Effective July 29, 2016.
FOR FURTHER INFORMATION CONTACT: Sergio Balbontin, Nicholas Czajkowski,
or Lana Nigro, AD/CVD Operations, Office I, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
6478, (202) 482-1395, and (202) 482-1779, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published the Preliminary Determination on December
22, 2015.\1\ A summary of the events that occurred since the Department
published the Preliminary Determination, as well as a full discussion
of the issues raised by parties for this final determination, may be
found in the Issues and Decision Memorandum.\2\ The Issues and 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 http://access.trade.gov, and is available to all
parties in the Central Records Unit, Room B8024 of the main Department
of Commerce building. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum
and the electronic version are identical in content.
---------------------------------------------------------------------------
\1\ See Countervailing Duty Investigation of Certain Cold-Rolled
Steel Flat Products From Brazil: Preliminary Affirmative
Determination and Alignment of Final Determination With Final
Antidumping Duty Determination Preliminary Determination, 80 FR
79562 (December 22, 2015) (Preliminary Determination).
\2\ See Memorandum from Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations, to
Paul Piquado, Assistant Secretary for Enforcement and Compliance,
``Issues and Decision Memorandum for the Final Determination in the
Countervailing Duty Investigation of Certain Cold-Rolled Steel Flat
Products from Brazil,'' dated concurrently with this determination
(Final Decision Memorandum) and hereby adopted by this notice.
---------------------------------------------------------------------------
Scope Comments
In accordance with the Preliminary Scope Determination,\3\ the
Department set aside a period of time for parties to address scope
issues in case briefs or other written comments on scope issues.
---------------------------------------------------------------------------
\3\ See Memorandum to Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations,
``Certain Cold-Rolled Steel Products from Brazil, the People's
Republic of China, India, Japan, the Republic of Korea, the Russian
Federation, and the United Kingdom: Scope Comments Decision
Memorandum for the Preliminary Determinations,'' dated February 29,
2016.
---------------------------------------------------------------------------
For a summary of the product coverage comments and rebuttal
responses submitted to the records of the cold-rolled steel
investigations, and accompanying discussion and analysis of all
comments timely received, see the Final Scope Decision Memorandum.\4\
The Final Scope Decision Memorandum is incorporated by, and hereby
adopted by, this notice.
---------------------------------------------------------------------------
\4\ See Memorandum to Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations,
``Certain Cold-Rolled Steel Products from Brazil, the People's
Republic of China, India, Japan, the Republic of Korea, the Russian
Federation, and the United Kingdom: ``Final Scope Comments Decision
Memorandum,'' dated May 16, 2016.
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are cold-rolled steel
flat products from Brazil. For a complete description of the scope of
this investigation, see the ``Scope of the Investigation,'' attached to
this notice at Appendix I.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
that parties raised, and to which we responded in the Issues and
Decision Memorandum, is attached to this notice at Appendix II.
Use of Adverse Facts Available
In making this final determination, the Department relied, in part,
on facts available and, because the Government of Brazil and the
respondent companies did not act to the best of their abilities in
responding to the Department's requests for information, we drew an
adverse inference where appropriate in selecting from among the facts
otherwise available.\5\ Specifically, we applied facts available, with
adverse inferences, for the Reduction of Tax on Industrialized Products
for Machines and Equipment, the BNDES FINAME Loan program, and the Ex-
Tarif[aacute]rio program, in accordance with section 776(a) and (b) of
the Tariff Act of 1930, as amended, (the Act). For further information,
see the section ``Use of Adverse Facts Available'' in the accompanying
Final Decision Memorandum.
---------------------------------------------------------------------------
\5\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our analysis of the comments received from parties, and
the minor corrections presented and additional items discovered at
verification, we made certain changes to the respondents' subsidy rate
calculations. For a discussion of these changes, see the Issues and
Decision Memorandum.
Final Determination
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated a rate for Usinas Siderurgicas de Minas Gerais S.A.
(Usiminas) and Companhia Siderurgica Nacional (CSN), the exporters/
producers of subject merchandise selected for individual examination in
this investigation.
In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) of
the Act, for companies not individually investigated, we apply an ``all
others'' rate, which is normally calculated by weighting the subsidy
rates of the individual companies selected as mandatory respondents by
those companies' exports of the subject merchandise to the United
States. Under section 705(c)(5)(A)(i) of the Act, the all-others rate
excludes zero and de minimis rates calculated for the exporters and
producers individually investigated as well as any rates based entirely
on facts otherwise available, pursuant to section 776 of the Act.
Neither of the respondents' rates was zero or de minimis or based
entirely on facts otherwise available. Notwithstanding the language of
section 705(c)(5)(A)(i) of the Act, we did not not calculate the ``all-
others'' rate by weight averaging the rates of the two individually
investigated respondents using their actual export sales data, because
doing so risks disclosure of proprietary information. Instead, we
calculated the all-others rate using the simple average of the
respondents' calculated rates.\6\ The estimated
[[Page 49942]]
countervailable subsidy rates are as follows:
---------------------------------------------------------------------------
\6\ See Memorandum to Dana S. Mermelstein, Program Manager, AD/
CVD Operations, Office I, ``Final Affirmative Countervailing Duty
Determination: Cold-Rolled Steel Flat Products from Brazil;
Calculation of the All Others Rate for the Final Determination in
the Countervailing Duty Investigation of Cold-Rolled Steel Flat
Products from Brazil'' dated concurrently with this notice.
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
Companhia Siderurgica Nacional (CSN).................... 11.31
Usinas Siderurgicas de Minas Gerais S.A. (Usiminas)..... 11.09
All Others.............................................. 11.20
------------------------------------------------------------------------
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d) of the Act, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of all entries of cold-rolled
steel from Brazil, that were entered, or withdrawn from warehouse, for
consumption on or after December 22, 2015, the date of the publication
of the Preliminary Determination in the Federal Register. In accordance
with section 703(d) of the Act, we issued instructions to CBP to
discontinue the suspension of liquidation for countervailing duty (CVD)
purposes for subject merchandise entered, or withdrawn from warehouse,
on or after April 20, 2016, but to continue the suspension of
liquidation of all entries from December 22, 2015 through April 19,
2016.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order and will
reinstate the suspension of liquidation under section 706(a) of the Act
and will require a cash deposit of estimated CVDs for such entries of
subject merchandise in the amounts indicated above. If the ITC
determines that material injury, or threat of material injury, does not
exist, this proceeding will be terminated and all estimated duties
deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related 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 (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Notification Regarding Administrative Protective Orders
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). 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 terms of an APO
is a violation which is subject to sanction.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: July 20, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The products covered by this investigation are certain cold-
rolled (cold-reduced), flat-rolled steel products, whether or not
annealed, painted, varnished, or coated with plastics or other non-
metallic substances. The products covered do not include those that
are clad, plated, or coated with metal. The products covered include
coils that have a width or other lateral measurement (``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 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; 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, high strength low alloy (HSLA) steels, motor
lamination steels, Advanced High Strength Steels (AHSS), and Ultra
High Strength Steels (UHSS). 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. Motor lamination steels contain micro-alloying levels of
elements such as silicon and aluminum. AHSS and UHSS are considered
high tensile strength and high elongation steels, although AHSS and
UHSS are covered whether or not they are high tensile strength or
high elongation steels.
Subject merchandise includes cold-rolled 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 investigation
if performed in the country of manufacture of the cold-rolled 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:
Ball bearing steels; \1\
---------------------------------------------------------------------------
\1\ Ball bearing steels are defined as steels which contain, in
addition to iron, each of the following elements by weight in the
amount specified: (i) Not less than 0.95 nor more than 1.13 percent
of carbon; (ii) not less than 0.22 nor more than 0.48 percent of
manganese; (iii) none, or not more than 0.03 percent of sulfur; (iv)
none, or not more than 0.03 percent of phosphorus; (v) not less than
0.18 nor more than 0.37 percent of silicon; (vi) not less than 1.25
nor more than 1.65 percent of chromium; (vii) none, or not more than
0.28 percent of nickel; (viii) none, or not more than 0.38 percent
of copper; and (ix) none, or not more than 0.09 percent of
molybdenum.
---------------------------------------------------------------------------
[[Page 49943]]
Tool steels; \2\
---------------------------------------------------------------------------
\2\ Tool steels are defined as steels which contain the
following combinations of elements in the quantity by weight
respectively indicated: (i) More than 1.2 percent carbon and more
than 10.5 percent chromium; or (ii) not less than 0.3 percent carbon
and 1.25 percent or more but less than 10.5 percent chromium; or
(iii) not less than 0.85 percent carbon and 1 percent to 1.8
percent, inclusive, manganese; or (iv) 0.9 percent to 1.2 percent,
inclusive, chromium and 0.9 percent to 1.4 percent, inclusive,
molybdenum; or (v) not less than 0.5 percent carbon and not less
than 3.5 percent molybdenum; or (vi) not less than 0.5 percent
carbon and not less than 5.5 percent tungsten.
---------------------------------------------------------------------------
Silico-manganese steel; \3\
---------------------------------------------------------------------------
\3\ Silico-manganese steel is defined as steels containing by
weight: (i) Not more than 0.7 percent of carbon; (ii) 0.5 percent or
more but not more than 1.9 percent of manganese, and (iii) 0.6
percent or more but not more than 2.3 percent of silicon.
---------------------------------------------------------------------------
Grain-oriented electrical steels (GOES) as defined in
the final determination of the U.S. Department of Commerce in Grain-
Oriented Electrical Steel From Germany, Japan, and Poland.\4\
---------------------------------------------------------------------------
\4\ Grain-Oriented Electrical Steel From Germany, Japan, and
Poland: Final Determinations of Sales at Less Than Fair Value and
Certain Final Affirmative Determination of Critical Circumstances,
79 FR 42,501, 42,503 (Dep't of Commerce, July 22, 2014). This
determination defines grain-oriented electrical steel as ``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.''
---------------------------------------------------------------------------
Non-Oriented Electrical Steels (NOES), as defined in
the antidumping orders issued by the U.S. Department of Commerce in
Non-Oriented Electrical Steel From the People's Republic of China,
Germany, Japan, the Republic of Korea, Sweden, and Taiwan.\5\
---------------------------------------------------------------------------
\5\ Non-Oriented Electrical Steel From the People's Republic of
China, Germany, Japan, the Republic of Korea, Sweden, and Taiwan:
Antidumping Duty Orders, 79 FR 71,741, 71,741-42 (Dep't of Commerce,
Dec. 3, 2014). The orders define NOES as ``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' 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 Oersteds) along
(i.e., parallel to) the rolling direction of the sheet (i.e., B800
value). NOES contains by weight more than 1.00 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 has a
surface oxide coating, to which an insulation coating may be
applied.''
---------------------------------------------------------------------------
The products subject to this investigation are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under item numbers: 7209.15.0000, 7209.16.0030,
7209.16.0060, 7209.16.0070, 7209.16.0091, 7209.17.0030,
7209.17.0060, 7209.17.0070, 7209.17.0091, 7209.18.1530,
7209.18.1560, 7209.18.2510, 7209.18.2520, 7209.18.2580,
7209.18.6020, 7209.18.6090, 7209.25.0000, 7209.26.0000,
7209.27.0000, 7209.28.0000, 7209.90.0000, 7210.70.3000,
7211.23.1500, 7211.23.2000, 7211.23.3000, 7211.23.4500,
7211.23.6030, 7211.23.6060, 7211.23.6090, 7211.29.2030,
7211.29.2090, 7211.29.4500, 7211.29.6030, 7211.29.6080,
7211.90.0000, 7212.40.1000, 7212.40.5000, 7225.50.6000,
7225.50.8080, 7225.99.0090, 7226.92.5000, 7226.92.7050, and
7226.92.8050. The products subject to the investigation may also
enter under the following HTSUS numbers: 7210.90.9000, 7212.50.0000,
7215.10.0010, 7215.10.0080, 7215.50.0016, 7215.50.0018,
7215.50.0020, 7215.50.0061, 7215.50.0063, 7215.50.0065,
7215.50.0090, 7215.90.5000, 7217.10.1000, 7217.10.2000,
7217.10.3000, 7217.10.7000, 7217.90.1000, 7217.90.5030,
7217.90.5060, 7217.90.5090, 7225.19.0000, 7226.19.1000,
7226.19.9000, 7226.99.0180, 7228.50.5015, 7228.50.5040,
7228.50.5070, 7228.60.8000, and 7229.90.1000.
The HTSUS subheadings above are provided for convenience and
U.S. Customs purposes only. The written description of the scope of
the investigation is dispositive.
Appendix II--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
Issues
II. Background
A. Case History
B. Period of Investigation
III. Scope of the Investigation
IV. Use of Adverse Facts Available
Subsidies Valuation
A. Allocation Period
B. Attribution of Subsidies
C. Denominators
V. Interest Rates Benchmarks and Discount Rates
VI. Analysis of Programs
A. Programs Determined To Be Countervailable
B. Program Determined To Be Not Countervailable
C. Programs Determined To Be Not Used, or Not To Confer a
Measurable Benefit, During the POI
D. Program Determined Not to Exist
VII. Analysis of Comments
Comment 1: Whether To Apply AFA to both the GOB and Respondents
for the Reduction of IPI for Machines and Equipment Program
Comment 2: Whether the Reduction of IPI for Machines and
Equipment Program is Countervailable
Comment 3: Whether To Apply AFA for the Ex-Tarif[aacute]rio
Program
Comment 4: Whether Ex-Tarif[aacute]rio is De Facto Specific
Comment 5: Whether Ex-Tarif[aacute]rio Provides a Financial
Contribution
Comment 6: Whether the FINAME Loan Program is Specific
Comment 7: Whether To Apply AFA to Determine the Benefit of the
FINAME Program
Comment 8: Whether To Re-Calculate the FINAME Program for
Usiminas
Comment 9: Whether To Use a Company-Specific Interest Rate
Benchmark for the FINAME Loan Program
Comment 10: Whether the Integrated Drawback Scheme is
Countervailable
Comment 11: Whether Usiminas Received a Benefit from the
Integrated Drawback Scheme
Comment 12: Whether Reintegra is Countervailable
Comment 13: Whether To Recalculate the Reintegra Subsidy Rate
Comment 14: Whether CSN Applied For/Used the Reintegra Program
During the POI
Comment 15: Whether the Exemption of Payroll Tax is
Countervailable
Comment 16: Whether Subsidies Provided to UMSA should be
Attributed to Usiminas
Comment 17: Whether the Economic Subvention to National
Innovation Program is not Countervailable
Comment 18: Whether FINEP's Economic Subvention Program has not
Conferred a Measurable Benefit
Comment 19: Whether the Bahia State Industrial Development and
Economic Integration Program (Desenvolve) is De Jure specific
Comment 20: Whether the GOB's References to Web sites Constitute
a Full Response
VIII. Recommendation
[FR Doc. 2016-17952 Filed 7-28-16; 8:45 am]
BILLING CODE 3510-DS-P