[Federal Register Volume 81, Number 178 (Wednesday, September 14, 2016)]
[Notices]
[Pages 63168-63171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21997]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-580-888]
Certain Carbon and Alloy Steel Cut-to-Length Plate From the
Republic of Korea: Preliminary Negative Countervailing Duty
Determination and Alignment of Final Determination With Final
Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that countervailable subsidies are not being provided to
producers/exporters of certain carbon and alloy steel cut-to-length
plate (CTL plate) from the Republic of Korea (Korea). The period of
investigation is January 1, 2015, through December 31, 2015. Interested
parties are invited to comment on this preliminary determination.
DATES: Effective September 14, 2016.
FOR FURTHER INFORMATION CONTACT: Yasmin Bordas or John Corrigan, AD/CVD
Operations, Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-3813
or (202) 482-7438, respectively.
SUPPLEMENTARY INFORMATION:
Alignment of Final Countervailing Duty (CVD) Determination With Final
Antidumping Duty (AD) Determination
On the same day the Department initiated this CVD investigation,
the Department also initiated CVD investigations of CTL plate from
Brazil and the People's Republic of China (PRC) and AD investigations
of CTL plate from Austria, Belgium, Brazil, France, Germany, Italy,
Japan, Korea, the PRC, South Africa, Taiwan, and Turkey.\1\ The CVD
investigation covers the same merchandise as the AD investigations of
CTL plate from Austria, Belgium, Brazil, France, Germany, Italy, Japan,
South Africa, and Taiwan.\2\ On August 25, 2016, in accordance with
section 705(a)(1) of the Tariff Act of 1930, as amended (Act),
Petitioners \3\ requested alignment of the final CVD determination with
the final AD determination of CTL plate from Korea.\4\ 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 of CTL plate from Austria, Belgium, France, Germany,
Italy, Japan, and Taiwan. 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 January 18, 2017, unless
postponed.\5\
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\1\ See Certain Carbon and Alloy Steel Cut-to-Length Plate From
Brazil, the People's Republic of China, and the Republic of Korea:
Initiation of Countervailing Duty Investigations, 81 FR 27098 (May
5, 2016) (Initiation Notice); see also Certain Carbon and Alloy
Steel Cut-To-Length Plate From Austria, Belgium, Brazil, France, the
Federal Republic of Germany, Italy, Japan, the Republic of Korea,
the People's Republic of China, South Africa, Taiwan, and the
Republic of Turkey: Initiation of Less-Than-Fair-Value
Investigations, 81 FR 27089 (May 5, 2016).
\2\ For a complete case history, see Memorandum from Gary
Taverman, Associate Deputy Assistant Secretary for Antidumping and
Countervailing Duty Operations, to Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations,
``Decision Memorandum for the Preliminary Negative Determination:
Countervailing Duty Investigation of Certain Carbon and Alloy Steel
Cut-to-Length Plate from the Republic of Korea,'' dated concurrently
with this notice and hereby incorporated by reference, and adopted
by this notice (Preliminary Decision Memorandum).
\3\ Petitioners in this investigation are ArcelorMittal USA LLC,
Nucor Corporation, and SSAB Enterprises LLC.
\4\ See Letter from Petitioners, ``Carbon and Alloy Steel Cut-
to-Length Plate from Korea: Petitioners' Request to Align the
Countervailing Duty Final Determinations with the Companion
Antidumping Duty Final Determinations,'' dated August 25, 2016.
\5\ The AD determinations of CTL plate from Brazil, South
Africa, and Turkey were not postponed. See Certain Carbon and Alloy
Steel Cut-to-Length Plate Austria, Belgium, France, the Federal
Republic of Germany, Italy, Japan, the Republic of Korea, the
People's Republic of China, and Taiwan: Postponement of Preliminary
Determinations of Antidumping Duty Investigations, 81 FR 59185
(August 29, 2016).
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Scope of the Investigation
The scope of this investigation covers CTL plate from Korea. For a
complete description of the scope of this investigation, see Appendix
I.
Scope Comments
In accordance with the Preamble to the Department's regulations,\6\
the Initiation Notice set aside a period of time for parties to raise
issues regarding
[[Page 63169]]
product coverage (i.e., scope).\7\ Certain interested parties commented
on the scope of this 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 Department's Preliminary Scope Memorandum issued concurrently
with this notice.\8\ The Department is preliminarily modifying the
scope language as it appeared in the Initiation Notice to clarify the
exclusion for stainless steel plate.\9\ The Department is also
correcting two tariff numbers that were misidentified in the Petitions
and in the Initiation Notice.\10\
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\6\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997) (Preamble).
\7\ See Initiation Notice, 81 FR at 27099.
\8\ See Memorandum to Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations,
``Certain Carbon and Alloy Steel Cut-to-Length Plate From Austria,
Belgium, Brazil, the People's Republic of China, France, the Federal
Republic of Germany, Italy, Japan, the Republic of Korea, the
Republic of South Africa, Taiwan, and Turkey: Scope Comments
Decision Memorandum for the Preliminary Determinations''
(Preliminary Scope Memorandum) dated concurrently with this
preliminary determination.
\9\ Specifically, the revised scope now states that stainless
steel plate must not contain more than 1.2 percent of carbon by
weight.
\10\ Id.
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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.\11\ A list of topics discussed 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 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
Preliminary Decision Memorandum can be accessed directly on the
Internet 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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\11\ See (Preliminary Decision Memorandum).
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Preliminary Determination
For this preliminary determination, we calculated a de minimis
countervailable subsidy rate for POSCO. Consistent with section
703(b)(4)(A) of the Act, we are disregarding this rate and
preliminarily determine that countervailable subsides are not being
provided to producers/exporters of the subject merchandise in Korea.
Accordingly, we did not calculate an all-others rate because the rate
for the individually investigated company is de minimis.
We preliminarily determine the countervailable subsidy rate to be:
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Company Subsidy rate
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POSCO..................................... 0.62 percent (de minimis)
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Because we preliminarily determine that the CVD rates in this
investigation are de minimis, we will not direct U.S. Customs and
Border Protection to suspend liquidation of entries of subject
merchandise.
Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information submitted by the respondent prior to making our final
determination.
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)(3) of the Act, if our final
determination is affirmative, the ITC will make its final determination
within 75 days after the Department makes its 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 its public announcement.\12\
Interested parties may submit case and rebuttal briefs, as well as
request a hearing.\13\ For a schedule of the deadlines for filing case
briefs, rebuttal briefs, and hearing requests, see the Preliminary
Decision Memorandum.
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\12\ See 19 CFR 351.224(b).
\13\ See 19 CFR 351.309(c)-(d) and 19 CFR 351.310(c).
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This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: September 6, 2016.
Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations.
Appendix I
Scope of the Investigation
The products covered by this investigation are certain carbon
and alloy steel hot-rolled or forged flat plate products not in
coils, whether or not painted, varnished, or coated with plastics or
other non-metallic substances (cut-to-length plate). Subject
merchandise includes plate that is produced by being cut-to-length
from coils or from other discrete length plate and plate that is
rolled or forged into a discrete length. The products covered
include (1) Universal mill plates (i.e., flat-rolled products rolled
on four faces or in a closed box pass, of a width exceeding 150 mm
but not exceeding 1250 mm, and of a thickness of not less than 4 mm,
which are not in coils and without patterns in relief), and (2) hot-
rolled or forged flat steel products of a thickness of 4.75 mm or
more and of a width which exceeds 150 mm and measures at least twice
the thickness, and which are not in coils, whether or not with
patterns in relief. The covered products described above may be
rectangular, square, circular or other shapes and include products
of either rectangular or non-rectangular cross-section where such
non-rectangular 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, the following rules apply:
(1) Except where otherwise stated where the nominal and actual
thickness or width measurements vary, a product from a given subject
country 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 unless the product is already covered by
an order existing on that specific country (e.g., orders on hot-
rolled flat-rolled steel); 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
[[Page 63170]]
other contained elements; and (2) the carbon content is 2 percent or
less by weight.
Subject merchandise includes cut-to-length plate that has been
further processed in the subject country or a third country,
including but not limited to pickling, oiling, levelling, annealing,
tempering, temper rolling, skin passing, painting, varnishing,
trimming, cutting, punching, beveling, 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 cut-to-length plate.
All products that meet the written physical description, are
within the scope of this investigation unless specifically excluded
or covered by the scope of an existing order. The following products
are outside of, and/or specifically excluded from, the scope of this
investigation:
(1) Products clad, plated, or coated with metal, whether or not
painted, varnished or coated with plastic or other non-metallic
substances;
(2) military grade armor plate certified to one of the following
specifications or to a specification that references and
incorporates one of the following specifications:
MIL-A-12560,
MIL-DTL-12560H,
MIL-DTL-12560J,
MIL-DTL-12560K,
MIL-DTL-32332,
MIL-A-46100D,
MIL-DTL-46100-E,
MIL-46177C,
MIL-S-16216K Grade HY80,
MIL-S-16216K Grade HY100,
MIL-S-24645A HSLA-80;
MIL-S-24645A HSLA-100,
T9074-BD-GIB-010/0300 Grade HY80,
T9074-BD-GIB-010/0300 Grade HY100,
T9074-BD-GIB-010/0300 Grade HSLA80,
T9074-BD-GIB-010/0300 Grade HSLA100, and
T9074-BD-GIB-010/0300 Mod. Grade HSLA115,
except that any cut-to-length plate certified to one of the above
specifications, or to a military grade armor specification that
references and incorporates one of the above specifications, will
not be excluded from the scope if it is also dual- or multiple-
certified to any other non-armor specification that otherwise would
fall within the scope of this order;
(3) stainless steel plate, containing 10.5 percent or more of
chromium by weight and not more than 1.2 percent of carbon by
weight;
(4) CTL plate meeting the requirements of ASTM A-829, Grade E
4340 that are over 305 mm in actual thickness;
(5) Alloy forged and rolled CTL plate greater than or equal to
152.4 mm in actual thickness meeting each of the following
requirements:
(a) Electric furnace melted, ladle refined & vacuum degassed and
having a chemical composition (expressed in weight percentages):
Carbon 0.23-0.28,
Silicon 0.05-0.20,
Manganese 1.20-1.60,
Nickel not greater than 1.0,
Sulfur not greater than 0.007,
Phosphorus not greater than 0.020,
Chromium 1.0-2.5,
Molybdenum 0.35-0.80,
Boron 0.002-0.004,
Oxygen not greater than 20 ppm,
Hydrogen not greater than 2 ppm, and
Nitrogen not greater than 60 ppm;
(b) With a Brinell hardness measured in all parts of the product
including mid thickness falling within one of the following ranges:
(i) 270-300 HBW,
(ii) 290-320 HBW, or
(iii) 320-350HBW;
(c) Having cleanliness in accordance with ASTM E45 method A
(Thin and Heavy): A not exceeding 1.5, B not exceeding 1.0, C not
exceeding 0.5, D not exceeding 1.5; and
(d) Conforming to ASTM A578-S9 ultrasonic testing requirements
with acceptance criteria 2 mm flat bottom hole;
(6) Alloy forged and rolled steel CTL plate over 407 mm in
actual thickness and meeting the following requirements:
(a) Made from Electric Arc Furnace melted, Ladle refined &
vacuum degassed, alloy steel with the following chemical composition
(expressed in weight percentages):
Carbon 0.23-0.28,
Silicon 0.05-0.15,
Manganese 1.20-1.50,
Nickel not greater than 0.4,
Sulfur not greater than 0.010,
Phosphorus not greater than 0.020,
Chromium 1.20-1.50,
Molybdenum 0.35-0.55,
Boron 0.002-0.004,
Oxygen not greater than 20 ppm,
Hydrogen not greater than 2 ppm, and
Nitrogen not greater than 60 ppm;
(b) Having cleanliness in accordance with ASTM E45 method A
(Thin and Heavy): A not exceeding 1.5, B not exceeding 1.5, C not
exceeding 1.0, D not exceeding 1.5;
(c) Having the following mechanical properties:
(i) With a Brinell hardness not more than 237 HBW measured in
all parts of the product including mid thickness; and having a Yield
Strength of 75ksi min and UTS 95ksi or more, Elongation of 18% or
more and Reduction of area 35% or more; having charpy V at -75
degrees F in the longitudinal direction equal or greater than 15 ft.
lbs (single value) and equal or greater than 20 ft. lbs (average of
3 specimens) and conforming to the requirements of NACE MR01-75; or
(ii) With a Brinell hardness not less than 240 HBW measured in
all parts of the product including mid thickness; and having a Yield
Strength of 90 ksi min and UTS 110 ksi or more, Elongation of 15% or
more and Reduction of area 30% or more; having charpy V at -40
degrees F in the longitudinal direction equal or greater than 21 ft.
lbs (single value) and equal or greater than 31 ft. lbs (average of
3 specimens);
(d) Conforming to ASTM A578-S9 ultrasonic testing requirements
with acceptance criteria 3.2 mm flat bottom hole; and
(e) Conforming to magnetic particle inspection in accordance
with AMS 2301;
(7) Alloy forged and rolled steel CTL plate over 407 mm in
actual thickness and meeting the following requirements:
(a) Made from Electric Arc Furnace melted, ladle refined &
vacuum degassed, alloy steel with the following chemical composition
(expressed in weight percentages):
Carbon 0.25-0.30,
Silicon not greater than 0.25,
Manganese not greater than 0.50,
Nickel 3.0-3.5,
Sulfur not greater than 0.010,
Phosphorus not greater than 0.020,
Chromium 1.0-1.5,
Molybdenum 0.6-0.9,
Vanadium 0.08 to 0.12
Boron 0.002-0.004,
Oxygen not greater than 20 ppm,
Hydrogen not greater than 2 ppm, and
Nitrogen not greater than 60 ppm.
(b) Having cleanliness in accordance with ASTM E45 method A
(Thin and Heavy): A not exceeding 1.0(t) and 0.5(h), B not exceeding
1.5(t) and 1.0(h), C not exceeding 1.0(t) and 0.5(h), and D not
exceeding 1.5(t) and 1.0(h);
(c) Having the following mechanical properties: A Brinell
hardness not less than 350 HBW measured in all parts of the product
including mid thickness; and having a Yield Strength of 145ksi or
more and UTS 160ksi or more, Elongation of 15% or more and Reduction
of area 35% or more; having charpy V at -40 degrees F in the
transverse direction equal or greater than 20 ft. lbs (single value)
and equal or greater than 25 ft. lbs (average of 3 specimens);
(d) Conforming to ASTM A578-S9 ultrasonic testing requirements
with acceptance criteria 3.2 mm flat bottom hole; and
(e) Conforming to magnetic particle inspection in accordance
with AMS 2301.
At the time of the filing of the petition, there was an existing
countervailing duty order on certain cut-to-length carbon-quality
steel plate from Korea. See Final Affirmative Countervailing Duty
Determination: Certain Cut-to-Length Carbon-Quality Steel Plate From
the Republic of Korea, 64 FR 73,176 (Dep't Commerce Dec. 29, 1999),
as amended, 65 FR 6,587 (Dep't Commerce Feb. 10, 2000) (1999 Korea
CVD Order). The scope of the countervailing duty investigation with
regard to cut-to-length plate from Korea covers only (1) subject
cut-to-length plate not within the physical description of cut-to-
length carbon quality steel plate in the 1999 Korea CVD Order
regardless of producer or exporter, and (2) cut-to-length plate
produced and/or exported by those companies that were excluded or
revoked from the 1999 Korea CVD Order as of April 8, 2016. The only
revoked or excluded company is Pohang Iron and Steel Company, also
known as POSCO.
The products subject to the investigation are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under item numbers: 7208.40.3030, 7208.40.3060,
7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000,
7211.13.0000, 7211.14.0030, 7211.14.0045, 7225.40.1110,
7225.40.1180, 7225.40.3005, 7225.40.3050, 7226.20.0000, and
7226.91.5000.
The products subject to the investigation may also enter under
the following HTSUS
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item numbers: 7208.40.6060, 7208.53.0000, 7208.90.0000,
7210.70.3000, 7210.90.9000, 7211.19.1500, 7211.19.2000,
7211.19.4500, 7211.19.6000, 7211.19.7590, 7211.90.0000,
7212.40.1000, 7212.40.5000, 7212.50.0000, 7214.10.0000,
7214.30.0010, 7214.30.0080, 7214.91.0015, 7214.91.0060,
7214.91.0090, 7225.11.0000, 7225.19.0000, 7225.40.5110,
7225.40.5130, 7225.40.5160, 7225.40.7000, 7225.99.0010,
7225.99.0090, 7226.11.1000, 7226.11.9060, 7226.19.1000,
7226.19.9000, 7226.91.0500, 7226.91.1530, 7226.91.1560,
7226.91.2530, 7226.91.2560, 7226.91.7000, 7226.91.8000, and
7226.99.0180.
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. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Injury Test
VII. Use of Facts Otherwise Available
VIII. Subsidies Valuation
IX. Analysis of Programs
X. ITC Notification
XI. Disclosure and Public Comment
XII. Verification
XIII. Conclusion
[FR Doc. 2016-21997 Filed 9-13-16; 8:45 am]
BILLING CODE 3510-DS-P