80_FR_76680 80 FR 76444 - Antidumping Duty Investigations of Certain Hot-Rolled Steel Flat Products From Australia, Brazil, Japan, and the Netherlands and Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat Products From Brazil: Preliminary Determinations of Critical Circumstances

80 FR 76444 - Antidumping Duty Investigations of Certain Hot-Rolled Steel Flat Products From Australia, Brazil, Japan, and the Netherlands and Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat Products From Brazil: Preliminary Determinations of Critical Circumstances

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 80, Issue 236 (December 9, 2015)

Page Range76444-76447
FR Document2015-31083

On August 11, 2015, the Department of Commerce (the Department) received antidumping duty (AD) petitions concerning imports of certain hot-rolled steel flat products (hot-rolled steel) from Australia, Brazil, Japan, and the Netherlands, and a countervailing duty (CVD) petition concerning hot-rolled steel from Brazil.\1\ On October 23, 2015, the Department received timely allegations, pursuant to sections 703(e)(1) and 733(e)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.206, that critical circumstances exist with respect to imports of the merchandise under investigation.\2\ Based on information provided by the petitioners, data placed on the record of these investigations by the mandatory respondents, and data collected by the Department from Global Trade Atlas (GTA), the Department preliminarily determines that critical circumstances exist for imports of hot-rolled steel from certain producers and exporters from Brazil and Japan. ---------------------------------------------------------------------------

Federal Register, Volume 80 Issue 236 (Wednesday, December 9, 2015)
[Federal Register Volume 80, Number 236 (Wednesday, December 9, 2015)]
[Notices]
[Pages 76444-76447]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-31083]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-602-809, A-351-845, A-588-874, A-421-813, C-351-846]


Antidumping Duty Investigations of Certain Hot-Rolled Steel Flat 
Products From Australia, Brazil, Japan, and the Netherlands and 
Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat 
Products From Brazil: Preliminary Determinations of Critical 
Circumstances

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

SUMMARY: On August 11, 2015, the Department of Commerce (the 
Department) received antidumping duty (AD) petitions concerning imports 
of certain hot-rolled steel flat products (hot-rolled steel) from 
Australia, Brazil, Japan, and the Netherlands, and a countervailing 
duty (CVD) petition concerning hot-rolled steel from Brazil.\1\ On 
October 23, 2015, the Department received timely allegations, pursuant 
to sections 703(e)(1) and 733(e)(1) of the Tariff Act of 1930, as 
amended (the Act), and 19 CFR 351.206, that critical circumstances 
exist with respect to imports of the merchandise under 
investigation.\2\ Based on information provided by the petitioners, 
data placed on the record of these investigations by the mandatory 
respondents, and data collected by the Department from Global Trade 
Atlas (GTA), the Department preliminarily determines that critical 
circumstances exist for imports of hot-rolled steel from certain 
producers and exporters from Brazil and Japan.
---------------------------------------------------------------------------

    \1\ See Petitions for the Imposition of Antidumping Duties on 
Imports of Certain Hot-Rolled Steel Flat Products from Australia, 
Brazil, Japan, Korea, the Netherlands, Turkey, and the United 
Kingdom, dated August 11, 2015, and Petitions for the Imposition of 
Countervailing Duties on Imports of Certain Hot-Rolled Steel Flat 
Products from Brazil, Korea, and Turkey, dated August 11, 2015 
(collectively, the petitions). The petitioners for these 
investigations are AK Steel Corporation, ArcelorMittal USA LLC, 
Nucor Corporation, SSAB Enterprises, LLC, Steel Dynamics, Inc., and 
United States Steel Corporation (the petitioners).
    \2\ See Certain Hot-Rolled Steel Flat Products From Australia, 
Brazil, Japan and the Netherlands--Critical Circumstances 
Allegations, October 23, 2105, and Certain Hot-Rolled Steel Flat 
Products From Australia, Brazil, Japan and the Netherlands--Critical 
Circumstances Allegations, November 2, 2015 (making public certain 
information in Attachment 2 of original submission) (collectively, 
Critical Circumstances Allegation).

---------------------------------------------------------------------------
DATES: Effective Date: December 9, 2015.

FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov or Minoo Hatten, AD/
CVD Operations, Office I, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0665, and (202) 482-1690, respectively.

SUPPLEMENTARY INFORMATION:

Background

    Pursuant to 19 CFR 351.206(c)(2), the petitioners requested that 
the Department issue a preliminary affirmative determination of 
critical circumstances on an expedited basis. In accordance with 
sections 703(e)(1) and 733(e)(1) of the Act, because the petitioners 
submitted their critical circumstances allegations more than 20 days 
before the scheduled date of the final determination, the Department 
must promptly issue preliminary critical circumstances determinations.
    Section 703(e)(1) of the Act provides that the Department will 
determine that critical circumstances exist in CVD investigations if 
there is a reasonable basis to believe or suspect: (A) That ``the 
alleged countervailable subsidy'' is inconsistent with the Agreement on 
Subsidies and Countervailing Measures (SCM Agreement) of the World 
Trade Organization, and (B) that ``there have been massive imports of 
the subject merchandise over a relatively short period.'' Section 
733(e)(1) of the Act provides that the Department will preliminarily 
determine that critical circumstances exist in AD investigations if 
there is a reasonable basis to believe or suspect: (A)(i) That ``there 
is a history of dumping and material injury by reason of dumped imports 
in the United States or elsewhere of the subject merchandise,'' or (ii) 
that ``the person by whom, or for whose account, the merchandise was 
imported knew or should have known that the exporter was selling the 
subject merchandise at less than its fair value and that there was 
likely to be material injury by reason of such sales,'' and (B) that 
``there have been massive imports of the subject merchandise over a 
relatively short period.'' Section 351.206(h)(2) of the Department's 
regulations provides that, generally, imports must increase by at least 
15 percent during the ``relatively short period'' to be considered 
``massive'' and section 351.206(i) defines a ``relatively short 
period'' as normally being the period beginning on the date the 
proceeding begins (i.e., the date the petition is filed) \3\ and ending 
at least three months later.\4\ The

[[Page 76445]]

regulations also provide, however, that, if the Department ``finds that 
importers, or exporters or producers, had reason to believe, at some 
time prior to the beginning of the proceeding, that a proceeding was 
likely,'' the Department ``may consider a period of not less than three 
months from that earlier time.'' \5\
---------------------------------------------------------------------------

    \3\ See 19 CFR 351.102(b)(40) (providing that a proceeding 
begins on the date of the filing of a petition).
    \4\ See 19 CFR 351.206(i).
    \5\ Id.
---------------------------------------------------------------------------

Alleged Countervailable Subsidies Are Inconsistent With the SCM 
Agreement

    To determine whether an alleged countervailable subsidy is 
inconsistent with the SCM Agreement, in accordance with section 
703(e)(1)(A) of the Act, the Department considered the evidence 
currently on the record of the Brazil CVD investigation. Specifically, 
as determined in our initiation checklist, the following subsidy 
programs, alleged in the petition and supported by information 
reasonably available to the petitioners, appear to be either export 
contingent or contingent upon the use of domestic goods over imported 
goods, which would render them inconsistent with the SCM Agreement: 
Reduction of Tax on Industrialized Products (IPI) for Machines and 
Equipment,\6\ Brazil's Export Financing Program (PROEX),\7\ Reintegra 
Program,\8\ RECAP: Special Regime for the Acquisition of Capital Goods 
for Export Companies,\9\ Integrated Drawback Scheme,\10\ Export Credit 
Insurance and Guarantees,\11\ Export Guarantee Fund,\12\ Export 
Promotion and Marketing Assistance,\13\ Banco do Brasil and Banco 
Nacional de Desenvolvimento Econ[ocirc]mico e Social (BNDES) ExIm 
loans,\14\ FINAME loans,\15\ and Automatic BNDES.\16\
---------------------------------------------------------------------------

    \6\ See Brazil CVD Initiation Checklist, August 31, 2015, at 7.
    \7\ Id., at 12.
    \8\ Id.
    \9\ Id., at 13.
    \10\ Id., at 14.
    \11\ Id., at 15.
    \12\ Id., at 16.
    \13\ Id., at 17.
    \14\ Id., at 34.
    \15\ Id., at 35.
    \16\ Id., at 38.
---------------------------------------------------------------------------

    Therefore, the Department preliminarily determines for purposes of 
this critical circumstances determination that there are alleged 
subsidies in the Brazil CVD investigation that are inconsistent with 
the SCM Agreement.

History of Dumping and Material Injury/Knowledge of Sales Below Fair 
Value and Material Injury

    In order to determine whether there is a history of dumping 
pursuant to section 733(e)(1)(A)(i) of the Act, the Department 
generally considers current or previous AD orders on subject 
merchandise from the country in question in the United States and 
current orders imposed by other countries with regard to imports of the 
same merchandise.\17\ The Department has previously issued AD orders on 
hot-rolled flat-rolled carbon-quality steel products from Japan \18\ 
and Brazil.\19\ Moreover, there are current AD orders imposed by other 
World Trade Organization members against hot-rolled steel products from 
Brazil and Japan.\20\ Certain HTS numbers subject to these Brazil and 
Japan orders overlap with HTS numbers listed in the scope of these hot-
rolled steel investigations. Therefore, there is evidence of a history 
of dumping of subject merchandise exported from Brazil and Japan.
---------------------------------------------------------------------------

    \17\ See Certain Oil Country Tubular Goods From the People's 
Republic of China: Notice of Preliminary Determination of Sales at 
Less Than Fair Value, Affirmative Preliminary Determination of 
Critical Circumstances and Postponement of Final Determination, 74 
FR 59117, 59120 (November 17, 2009) unchanged in Certain Oil Country 
Tubular Goods from the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value, Affirmative Final 
Determination of Critical Circumstances and Final Determination of 
Targeted Dumping, 75 FR 20335 (April 19, 2010).
    \18\ See Antidumping Duty Order; Certain Hot-Rolled Flat-Rolled 
Carbon-Quality Steel Products From Japan, 64 FR 34778 (June 29, 
1999).
    \19\ See Antidumping Duty Order: Certain Hot-Rolled Flat-Rolled 
Carbon Quality Steel Products from Brazil, 67 FR 11093 (March 12, 
2002).
    \20\ See Attachment 1 of Critical Circumstances Allegation 
(containing ``Semi-Annual Report Under Article 16.4 of the 
Agreement'' from Australia to World Trade Organization depicting 
``Definitive Anti-Dumping Measures in Force, as of December 31, 
2014'' which lists Hot Rolled Steel Coil from, Japan, et.al.; Semi-
Annual Report Under Article 16.4 of the Agreement'' from Canada to 
World Trade Organization depicting ``Definitive Anti-Dumping 
Measures in Force, as of December 31, 2014'' which lists Certain 
Flat Hot-Rolled Carbon and Alloy Steel Sheet and Strip from Brazil, 
et.al.; and ``Semi-Annual Report Under Article 16.4 of the 
Agreement'' from Thailand to World Trade Organization depicting 
``Definitive Anti-Dumping Measures in Force, as of December 31, 
2014'' which lists Flat Hot Rolled Steel in Coils and not in Coils 
from Japan, et.al.).
---------------------------------------------------------------------------

    To determine whether importers knew or should have known that 
exporters were selling at less than fair value, we typically consider 
the magnitude of dumping margins, including margins alleged in 
petitions.\21\ The Department has found margins of 15 to 25 percent 
(depending on whether sales are export price sales or constructed 
export price sales) to be sufficient for this purpose.\22\ The 
Department initiated these AD investigations based on the following 
estimated dumping margins: 99.20 percent (Australia); 34.28 percent 
(Brazil); 16.15 to 34.53 percent (Japan); and 55.21 to 173.17 percent 
(Netherlands). All of these margins are above the 15 to 25 percent 
threshold.\23\ Therefore, on that basis, we preliminarily conclude that 
importers knew or should have known that exporters in all four 
countries were selling subject merchandise at less than fair value.
---------------------------------------------------------------------------

    \21\ See, e.g., Notice of Preliminary Determinations of Critical 
Circumstances: Certain Cold-Rolled Carbon Steel Flat Products from 
Australia, the People's Republic of China, India, the Republic of 
Korea, the Netherlands, and the Russian Federation, 67 FR 19157, 
19158 (April 18, 2002) (unchanged in the final determination).
    \22\ See, e.g., Preliminary Determination of Sales at Less Than 
Fair Value: Certain Cut-to-Length Carbon Steel Plate from the 
People's Republic of China, 62 FR 31972, 31978 (June 11, 1997) 
(unchanged in the final determination) and Notice of Preliminary 
Determination of Sales at Less Than Fair Value, Negative Preliminary 
Determination of Critical Circumstances and Postponement of Final 
Determination: Certain Frozen and Canned Warmwater Shrimp From the 
Socialist Republic of Vietnam, 69 FR 42672 (July 16, 2004) 
(unchanged in the final determination).
    \23\ See Certain Hot-Rolled Steel Flat Products from Australia, 
Brazil, Japan, the Republic of Korea, the Netherlands, the Republic 
of Turkey, and the United Kingdom: Initiation of Less-Than-Fair-
Value Investigations, 80 FR 54261, 54265 (September 9, 2015).
---------------------------------------------------------------------------

    To determine whether importers knew or should have known that there 
was likely to be material injury, we typically consider the preliminary 
injury determinations of the International Trade Commission (ITC).\24\ 
If the ITC finds material injury (rather than the threat of injury), we 
normally find that the ITC's determination provided importers with 
sufficient knowledge of injury. In these investigations, the ITC's 
finding of material injury by reason of imports of hot-rolled steel 
from, inter alia, Australia, Brazil, Japan, and the Netherlands is 
sufficient to impute knowledge of the likelihood of material injury for 
each of these countries.\25\
---------------------------------------------------------------------------

    \24\ See, e.g., Certain Potassium Phosphate Salts from the 
People's Republic of China: Preliminary Affirmative Determination of 
Critical Circumstances in the Antidumping Duty Investigation, 75 FR 
24572, 24573 (May 5, 2010), unchanged in Certain Potassium Phosphate 
Salts from the People's Republic of China: Final Determination of 
Sales at Less Than Fair Value and Termination of Critical 
Circumstances Inquiry, 75 FR 30377 (June 1, 2010).
    \25\ See Certain Hot-Rolled Steel Flat Products from Australia, 
Brazil, Japan, Korea, the Netherlands, Turkey, and the United 
Kingdom, Inv. Nos. 701-TA-545-547 and 731-TA-1291-1297 (Prelim), 
USITC Pub. 4570 (Oct. 2015) at 1.
---------------------------------------------------------------------------

Massive Imports

    In determining whether there have been ``massive imports'' over a 
``relatively short period,'' pursuant to sections 703(e)(1)(B) and 
733(e)(1)(B) of the Act, the Department normally compares the import 
volumes of the subject merchandise for at least three months 
immediately preceding the filing of the petition (i.e., the ``base

[[Page 76446]]

period'') to a comparable period of at least three months following the 
filing of the petition (i.e., the ``comparison period''). Imports 
normally will be considered massive when imports during the comparison 
period have increased by 15 percent or more compared to imports during 
the base period.
    Based on evidence provided by the petitioners, the Department finds 
that pursuant to 19 CFR 351.206(i), importers, exporters or producers 
had reason to believe, at some time prior to the filing of the 
petition, that a proceeding was likely. Specifically, the Department 
concludes that the available factual information provided by the 
petitioners indicates that by June 2015, importers, exporters or 
producers had reason to believe that a proceeding was likely. The 
Department finds the following information relevant from the press 
articles the petitioners provided to support their claim of ``early 
knowledge'':
     On May 11, 2015, American Metal Market issued an article 
acknowledging an industry analyst at Morgan Stanley Equity Research 
indicating that ``flat-rolled steel trade cases could move forward soon 
due to congressional bickering surrounding Trade Promotion Authority 
(TPA).'' \26\ That article included statements about the past and 
current state of hot-rolled coil prices, thereby indicating that the 
potential trade cases included hot-rolled steel.\27\
---------------------------------------------------------------------------

    \26\ See Critical Circumstances Allegation at Attachment 2.
    \27\ Id.
---------------------------------------------------------------------------

     On May 29, 2015, another industry source, Steel Business 
Briefer, indicated that an informant of a service center executive 
stated that he was 90 percent sure that a filing on flat-rolled 
products will take place next week (i.e., in June). According to the 
informant, ``US sheet mills are waiting . . . to finish data collection 
. . . and that {one{time}  mill has already contacted him to gather 
information. {US mills are{time}  having trouble with their customers 
finding out how much import they're buying.'' \28\ The article also 
included assessments on hot-rolled and cold-rolled coil prices, thereby 
demonstrating that the potential trade cases concerned both hot-rolled 
and cold-rolled products.\29\
---------------------------------------------------------------------------

    \28\ Id.
    \29\ Id.
---------------------------------------------------------------------------

     On June 4, 2015, a day after trade cases were filed on 
corrosion-resistant steel products, American Metal Market issued an 
article stating that this case was the ``first of many expected across 
U.S. steel markets in the coming weeks and months.'' Additionally, an 
industry analyst at Morgan Stanley Equity Research was quoted as saying 
that he believed that ``the {U.S{time}  industry is also working on 
cold-rolled and potentially hot-rolled cases as well.'' \30\
---------------------------------------------------------------------------

    \30\ Id.
---------------------------------------------------------------------------

     On June 9, 2015, American Metal Market issued an article 
providing commentary from the chairman, president, and chief executive 
officer (CEO) of AK Steel Corporation (one of the petitioning companies 
in this investigation), confirming that the trade cases on hot-rolled 
and cold-rolled coil were likely to come shortly after the already-
filed trade case on corrosion-resistant steel. In particular, the 
author indicated that, according to the CEO, ``{d{time} omestic 
steelmakers are considering trade petitions against imports of hot-
rolled and cold-rolled coil.'' Further, the CEO was quoted as saying, 
``All aspects of the carbon product are being analyzed. Whether (hot-
rolled coil) is the next case or the third case, all three are being 
looked at and one has been filed. . . The others are being evaluated . 
. . At this point, we look to our advisors and our lawyers to give us 
the go-ahead. . .'' \31\
---------------------------------------------------------------------------

    \31\ Id.
---------------------------------------------------------------------------

    The above references, by industry specialists and authorities, to 
the impending trade cases on hot-rolled steel indicate that steel 
importers, exporters, and producers had, by the end of June 2015, 
sufficiently credible reasons to believe that forthcoming petitions 
were likely.\32\
---------------------------------------------------------------------------

    \32\ In its November 3, 2015, submission, a Japanese producer, 
Nippon Steel & Sumitomo Metal Corporation, commented that the 
Department has previously rejected the mere presence of rumors in 
press articles as being too speculative to form a basis for imputing 
knowledge that a petition was likely. Similarly, in its November 13, 
2015, comments, a Dutch producer, Tata Steel IJmuiden B.V., 
commented that none of the articles the petitioners cited rise to 
anything above speculation, claiming that the strongest 
characterization of the articles that could be made concerning hot-
rolled steel is that the U.S. industry was looking into whether a 
case could be brought, not that a case would be initiated and that 
such an initiation was imminent. In its November 2, 2015, 
submission, an Australian producer/exporter, BlueScope Steel Ltd. 
(BlueScope) asserted that ``the existence of one or two 
uncorroborated rumors reported in the press articles in June 2015, 
hardly constitutes a `reason to believe' that a case against hot-
rolled steel . . . was `likely,' as required by the regulations.'' 
On the basis of the information in various industry articles it 
submitted, BlueScope notes that, in many months leading up to the 
filing of a case against imports of coated steel in June 2015, a 
case against imports of hot-rolled steel had not been mentioned 
since the time it was first rumored in July 2014; and cases against 
imports of cold-rolled and coated steel had been repeatedly rumored 
but not filed. BlueScope argues that, given the repeated 
unreliability of rumors in the past, importers would have been 
understandably skeptical of any reports emerging in June 2015 of a 
case against imports of hot-rolled steel. We do not find interested 
parties' arguments persuasive. The records of these investigations 
show that rumors on trade cases against imports of corrosion-
resistant, cold-rolled, and hot-rolled steels cases had been 
circulating as far back as 2014. The records also show that these 
three cases were often referenced collectively, or were simply 
referred to as ``flat rolled'' cases. When trade cases were actually 
filed on imports of corrosion-resistant steel in early June 2015, we 
find that this solidified rumors into the expectation among steel 
importers, exporters, and producers that forthcoming petitions on 
the remaining products (i.e., cold-rolled and hot-rolled steels) 
were inevitable. This is corroborated by the statements from the CEO 
of AK Steel Corporation in the June 9, 2015, article by American 
Metal Market, which illuminated the imminence of trade cases on 
imports of cold-rolled and hot-rolled steel, stating that the 
requisite data were ``available'' and that other cases are ``going 
to follow'' pending legal approval.
---------------------------------------------------------------------------

    Thus, in order to determine whether there has been a massive surge 
in imports for each cooperating mandatory respondent, the Department 
compared the total volume of shipments during the period June 2015 
through October 2015 (all months for which data was available) with the 
volume of shipments during the preceding five-month period of January 
2015 through May 2015. For ``all others,'' the Department compared GTA 
data for the period June 2015 through September 2015 (the last month 
for which GTA data is currently available) with data for the preceding 
four-month period of February 2014 through May 2015.\33\ We subtracted 
shipments reported by the mandatory respondents from the GTA data. With 
respect to Australia and the Netherlands, the shipment data do not 
demonstrate massive surges in imports for any producers/exporters. 
Therefore, we are reaching a preliminary negative critical 
circumstances determination with respect to Australia and the 
Netherlands. With respect to Brazil and Japan, we preliminarily 
determine the following producers/exporters had massive surges in 
imports.\34\
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    \33\ The Department gathered GTA data under the following 
harmonized tariff schedule numbers: 7208.10.1500, 7208.10.3000, 
7208.10.6000, 7208.25.3000, 7208.25.6000, 7208.26.0030, 
7208.26.0060, 7208.27.0030, 7208.27.0060, 7208.36.0030, 
7208.36.0060, 7208.37.0030, 7208.37.0060, 7208.38.0015, 
7208.38.0030, 7208.38.0090, 7208.39.0015, 7208.39.0030, 
7208.39.0090, 7208.40.6030, 7208.40.6060, 7208.53.0000, 
7208.54.0000, 7208.90.0000, 7210.70.3000, 7211.14.0030, 
7211.14.0090, 7211.19.1500, 7211.19.2000, 7211.19.3000, 
7211.19.4500, 7211.19.6000, 7211.19.7530, 7211.19.7560, 
7211.19.7590, 7225.11.0000, 7225.19.0000, 7225.30.3050, 
7225.30.7000, 7225.40.7000, 7225.99.0090, 7226.11.1000, 
7226.11.9030, 7226.11.9060, 7226.19.1000, 7226.19.9000, 
7226.91.5000, 7226.91.7000, and 7226.91.8000.
    \34\ See respective preliminary critical circumstances memoranda 
for each proceeding, dated concurrently with this notice.
---------------------------------------------------------------------------

     Brazil (A-351-845 and C-351-846): Companhia Siderugica 
Nacional (CSN), Usinas Siderurgicas da Minas Gerais S.A. (Usiminas);

[[Page 76447]]

     Japan (A-588-874): Nippon Steel & Sumikin Bussan 
Corporation (Nippon), JFE Steel Corporation (JFE);

Conclusion

    Based on the criteria and findings discussed above, we 
preliminarily determine that critical circumstances exist with respect 
to imports of hot-rolled steel shipped by certain producers/exporters. 
Our findings are summarized as follows.

----------------------------------------------------------------------------------------------------------------
                                                                Affirmative preliminary    Negative preliminary
               Country                         Case No.         critical  circumstances  critical  circumstances
                                                                     determinations           determinations
----------------------------------------------------------------------------------------------------------------
Australia............................  A-602-809..............  None...................  BlueScope; all other
                                                                                          producers/exporters.
Brazil...............................  A-351-845..............  CSN; Usiminas..........  All other producers/
                                       C-351-846..............                            exporters.
Japan................................  A-588-874..............  Nippon; JFE............  All other producers/
                                                                                          exporters.
Netherlands..........................  A-421-813..............  None...................  Tata; all other
                                                                                          producers/exporters.
----------------------------------------------------------------------------------------------------------------

Final Critical Circumstances Determinations

    We will issue final determinations concerning critical 
circumstances when we issue our final countervailing duty and less than 
fair value determinations. All interested parties will have the 
opportunity to address these determinations in case briefs to be 
submitted after completion of the preliminary countervailing duty and 
less than fair value determinations.

ITC Notification

    In accordance with sections 703(f) and 733(f) of the Act, we have 
notified the ITC of our determinations.

Suspension of Liquidation

    In accordance with section 703(e)(2) of the Act, because we have 
preliminarily found that critical circumstances exist with regard to 
exports made by certain producers and/or exporters, if we make an 
affirmative preliminary determination that countervailable subsidies 
have been provided to these same producers/exporters at above de 
minimis rates,\35\ we will instruct U.S. Customs and Border Protection 
(CBP) to suspend liquidation of all entries of subject merchandise from 
these producers/exporters that are entered, or withdrawn from 
warehouse, for consumption on or after the date that is 90 days prior 
to the effective date of ``provisional measures'' (e.g., the date of 
publication in the Federal Register of the notice of an affirmative 
preliminary determination that countervailable subsidies have been 
provided at above de minimis rates). At such time, we will also 
instruct CBP to require a cash deposit equal to the estimated 
preliminary subsidy rates reflected in the preliminary determination 
published in the Federal Register. This suspension of liquidation will 
remain in effect until further notice.
---------------------------------------------------------------------------

    \35\ The preliminary determination in the countervailing duty 
investigation for Brazil is currently scheduled for January 8, 2016.
---------------------------------------------------------------------------

    In accordance with section 733(e)(2) of the Act, because we have 
preliminarily found that critical circumstances exist with regard to 
exports made by certain producers and/or exporters, if we make an 
affirmative preliminary determination that sales at less than fair 
value have been made by these same producers/exporters at above de 
minimis rates,\36\ we will instruct CBP to suspend liquidation of all 
entries of subject merchandise from these producers/exporters that are 
entered, or withdrawn from warehouse, for consumption on or after the 
date that is 90 days prior to the effective date of ``provisional 
measures'' (e.g., the date of publication in the Federal Register of 
the notice of an affirmative preliminary determination of sales at less 
than fair value at above de minimis rates). At such time, we will also 
instruct CBP to require a cash deposit equal to the estimated 
preliminary dumping margins reflected in the preliminary determination 
published in the Federal Register. This suspension of liquidation will 
remain in effect until further notice.
---------------------------------------------------------------------------

    \36\ The preliminary determinations concerning sales at less 
than fair value are due on March 8, 2016.
---------------------------------------------------------------------------

    This notice is issued and published pursuant to section 777(i) of 
the Act and 19 CFR 351.206(c)(2).

    Dated: December 2, 2015.
Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.
[FR Doc. 2015-31083 Filed 12-8-15; 8:45 am]
BILLING CODE 3510-DS-P



                                                  76444                    Federal Register / Vol. 80, No. 236 / Wednesday, December 9, 2015 / Notices

                                                  the Calexico U.S. Customs and Border                    DEPARTMENT OF COMMERCE                              International Trade Administration,
                                                  Protection port of entry.                                                                                   U.S. Department of Commerce, 14th
                                                                                                          International Trade Administration                  Street and Constitution Avenue NW.,
                                                     The applicant is requesting authority
                                                  to reorganize its existing zone to include                                                                  Washington, DC 20230; telephone: (202)
                                                                                                          [A–602–809, A–351–845, A–588–874, A–421–
                                                                                                                                                              482–0665, and (202) 482–1690,
                                                  existing Sites 1 through 5 and 7 through                813, C–351–846]
                                                                                                                                                              respectively.
                                                  14 as ‘‘magnet’’ sites and existing Sites
                                                  6, 15 and 16 as ‘‘usage-driven’’ sites.                 Antidumping Duty Investigations of                  SUPPLEMENTARY INFORMATION:
                                                  The ASF allows for the possible                         Certain Hot-Rolled Steel Flat Products
                                                                                                                                                              Background
                                                  exemption of one magnet site from the                   From Australia, Brazil, Japan, and the
                                                                                                          Netherlands and Countervailing Duty                    Pursuant to 19 CFR 351.206(c)(2), the
                                                  ‘‘sunset’’ time limits that generally                                                                       petitioners requested that the
                                                                                                          Investigation of Certain Hot-Rolled
                                                  apply to sites under the ASF, and the                                                                       Department issue a preliminary
                                                                                                          Steel Flat Products From Brazil:
                                                  applicant proposes that Site 1 be so                                                                        affirmative determination of critical
                                                                                                          Preliminary Determinations of Critical
                                                  exempted. No new subzones/usage-                        Circumstances                                       circumstances on an expedited basis. In
                                                  driven sites are being requested at this                                                                    accordance with sections 703(e)(1) and
                                                  time.                                                   AGENCY: Enforcement and Compliance,                 733(e)(1) of the Act, because the
                                                     In accordance with the FTZ Board’s                   International Trade Administration,                 petitioners submitted their critical
                                                  regulations, Christopher Kemp of the                    Department of Commerce.                             circumstances allegations more than 20
                                                  FTZ Staff is designated examiner to                     SUMMARY: On August 11, 2015, the                    days before the scheduled date of the
                                                  evaluate and analyze the facts and                      Department of Commerce (the                         final determination, the Department
                                                  information presented in the application                Department) received antidumping duty must promptly issue preliminary critical
                                                  and case record and to report findings                  (AD) petitions concerning imports of                circumstances determinations.
                                                                                                          certain hot-rolled steel flat products                 Section 703(e)(1) of the Act provides
                                                  and recommendations to the FTZ Board.
                                                                                                          (hot-rolled steel) from Australia, Brazil,          that the Department will determine that
                                                     Public comment is invited from                       Japan, and the Netherlands, and a                   critical circumstances exist in CVD
                                                  interested parties. Submissions shall be                countervailing duty (CVD) petition                  investigations if there is a reasonable
                                                  addressed to the FTZ Board’s Executive                  concerning hot-rolled steel from Brazil.1 basis to believe or suspect: (A) That ‘‘the
                                                  Secretary at the address below. The                     On October 23, 2015, the Department                 alleged countervailable subsidy’’ is
                                                  closing period for their receipt is                     received timely allegations, pursuant to            inconsistent with the Agreement on
                                                  February 8, 2016. Rebuttal comments in                  sections 703(e)(1) and 733(e)(1) of the             Subsidies and Countervailing Measures
                                                  response to material submitted during                   Tariff Act of 1930, as amended (the Act), (SCM Agreement) of the World Trade
                                                  the foregoing period may be submitted                   and 19 CFR 351.206, that critical                   Organization, and (B) that ‘‘there have
                                                  during the subsequent 15-day period to                  circumstances exist with respect to                 been massive imports of the subject
                                                  February 22, 2016.                                      imports of the merchandise under                    merchandise over a relatively short
                                                                                                          investigation.2 Based on information                period.’’ Section 733(e)(1) of the Act
                                                     A copy of the application will be
                                                  available for public inspection at the                  provided by the petitioners, data placed provides that the Department will
                                                                                                          on the record of these investigations by            preliminarily determine that critical
                                                  Office of the Executive Secretary,                                                                          circumstances exist in AD investigations
                                                                                                          the mandatory respondents, and data
                                                  Foreign-Trade Zones Board, Room
                                                                                                          collected by the Department from Global if there is a reasonable basis to believe
                                                  21013, U.S. Department of Commerce,                     Trade Atlas (GTA), the Department                   or suspect: (A)(i) That ‘‘there is a history
                                                  1401 Constitution Avenue NW.,                           preliminarily determines that critical              of dumping and material injury by
                                                  Washington, DC 20230–0002, and in the                   circumstances exist for imports of hot-             reason of dumped imports in the United
                                                  ‘‘Reading Room’’ section of the FTZ                     rolled steel from certain producers and             States or elsewhere of the subject
                                                  Board’s Web site, which is accessible                   exporters from Brazil and Japan.                    merchandise,’’ or (ii) that ‘‘the person by
                                                  via www.trade.gov/ftz. For further                                                                          whom, or for whose account, the
                                                                                                          DATES: Effective Date: December 9, 2015.
                                                  information, contact Christopher Kemp                                                                       merchandise was imported knew or
                                                                                                          FOR FURTHER INFORMATION CONTACT:                    should have known that the exporter
                                                  at Christopher.Kemp@trade.gov or (202)
                                                                                                          Dmitry Vladimirov or Minoo Hatten,                  was selling the subject merchandise at
                                                  482–0862.
                                                                                                          AD/CVD Operations, Office I,                        less than its fair value and that there
                                                    Dated: December 3, 2015.                              Enforcement and Compliance,                         was likely to be material injury by
                                                  Andrew McGilvray,                                                                                           reason of such sales,’’ and (B) that
                                                                                                            1 See Petitions for the Imposition of Antidumping
                                                  Executive Secretary.                                                                                        ‘‘there have been massive imports of the
                                                                                                          Duties on Imports of Certain Hot-Rolled Steel Flat
                                                  [FR Doc. 2015–31079 Filed 12–8–15; 8:45 am]             Products from Australia, Brazil, Japan, Korea, the  subject merchandise over a relatively
                                                  BILLING CODE 3510–DS–P                                  Netherlands, Turkey, and the United Kingdom,        short period.’’ Section 351.206(h)(2) of
                                                                                                          dated August 11, 2015, and Petitions for the        the Department’s regulations provides
                                                                                                          Imposition of Countervailing Duties on Imports of
                                                                                                          Certain Hot-Rolled Steel Flat Products from Brazil, that, generally, imports must increase by
                                                                                                          Korea, and Turkey, dated August 11, 2015            at least 15 percent during the ‘‘relatively
                                                                                                          (collectively, the petitions). The petitioners for  short period’’ to be considered
                                                                                                          these investigations are AK Steel Corporation,      ‘‘massive’’ and section 351.206(i)
                                                                                                          ArcelorMittal USA LLC, Nucor Corporation, SSAB
                                                                                                          Enterprises, LLC, Steel Dynamics, Inc., and United  defines a ‘‘relatively short period’’ as
                                                                                                          States Steel Corporation (the petitioners).         normally being the period beginning on
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                                                                                                            2 See Certain Hot-Rolled Steel Flat Products From the date the proceeding begins (i.e., the
                                                                                                          Australia, Brazil, Japan and the Netherlands—       date the petition is filed) 3 and ending at
                                                                                                          Critical Circumstances Allegations, October 23,
                                                                                                          2105, and Certain Hot-Rolled Steel Flat Products
                                                                                                                                                              least three months later.4 The
                                                                                                          From Australia, Brazil, Japan and the Netherlands—
                                                                                                                                                                  3 See 19 CFR 351.102(b)(40) (providing that a
                                                                                                          Critical Circumstances Allegations, November 2,
                                                                                                          2015 (making public certain information in            proceeding begins on the date of the filing of a
                                                                                                          Attachment 2 of original submission) (collectively,   petition).
                                                                                                          Critical Circumstances Allegation).                     4 See 19 CFR 351.206(i).




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                                                                            Federal Register / Vol. 80, No. 236 / Wednesday, December 9, 2015 / Notices                                                       76445

                                                  regulations also provide, however, that,                or previous AD orders on subject                         Department initiated these AD
                                                  if the Department ‘‘finds that importers,               merchandise from the country in                          investigations based on the following
                                                  or exporters or producers, had reason to                question in the United States and                        estimated dumping margins: 99.20
                                                  believe, at some time prior to the                      current orders imposed by other                          percent (Australia); 34.28 percent
                                                  beginning of the proceeding, that a                     countries with regard to imports of the                  (Brazil); 16.15 to 34.53 percent (Japan);
                                                  proceeding was likely,’’ the Department                 same merchandise.17 The Department                       and 55.21 to 173.17 percent
                                                  ‘‘may consider a period of not less than                has previously issued AD orders on hot-                  (Netherlands). All of these margins are
                                                  three months from that earlier time.’’ 5                rolled flat-rolled carbon-quality steel                  above the 15 to 25 percent threshold.23
                                                                                                          products from Japan 18 and Brazil.19                     Therefore, on that basis, we
                                                  Alleged Countervailable Subsidies Are                   Moreover, there are current AD orders                    preliminarily conclude that importers
                                                  Inconsistent With the SCM Agreement                     imposed by other World Trade                             knew or should have known that
                                                    To determine whether an alleged                       Organization members against hot-                        exporters in all four countries were
                                                  countervailable subsidy is inconsistent                 rolled steel products from Brazil and                    selling subject merchandise at less than
                                                  with the SCM Agreement, in accordance                   Japan.20 Certain HTS numbers subject to                  fair value.
                                                  with section 703(e)(1)(A) of the Act, the               these Brazil and Japan orders overlap                       To determine whether importers
                                                  Department considered the evidence                      with HTS numbers listed in the scope                     knew or should have known that there
                                                  currently on the record of the Brazil                   of these hot-rolled steel investigations.                was likely to be material injury, we
                                                  CVD investigation. Specifically, as                     Therefore, there is evidence of a history                typically consider the preliminary
                                                  determined in our initiation checklist,                 of dumping of subject merchandise                        injury determinations of the
                                                  the following subsidy programs, alleged                 exported from Brazil and Japan.                          International Trade Commission (ITC).24
                                                  in the petition and supported by                          To determine whether importers                         If the ITC finds material injury (rather
                                                  information reasonably available to the                 knew or should have known that                           than the threat of injury), we normally
                                                  petitioners, appear to be either export                 exporters were selling at less than fair                 find that the ITC’s determination
                                                  contingent or contingent upon the use of                value, we typically consider the                         provided importers with sufficient
                                                  domestic goods over imported goods,                     magnitude of dumping margins,                            knowledge of injury. In these
                                                  which would render them inconsistent                    including margins alleged in petitions.21                investigations, the ITC’s finding of
                                                  with the SCM Agreement: Reduction of                    The Department has found margins of                      material injury by reason of imports of
                                                  Tax on Industrialized Products (IPI) for                15 to 25 percent (depending on whether                   hot-rolled steel from, inter alia,
                                                  Machines and Equipment,6 Brazil’s                       sales are export price sales or                          Australia, Brazil, Japan, and the
                                                  Export Financing Program (PROEX),7                      constructed export price sales) to be                    Netherlands is sufficient to impute
                                                  Reintegra Program,8 RECAP: Special                      sufficient for this purpose.22 The                       knowledge of the likelihood of material
                                                  Regime for the Acquisition of Capital                                                                            injury for each of these countries.25
                                                                                                             17 See Certain Oil Country Tubular Goods From
                                                  Goods for Export Companies,9
                                                  Integrated Drawback Scheme,10 Export                    the People’s Republic of China: Notice of                Massive Imports
                                                                                                          Preliminary Determination of Sales at Less Than
                                                  Credit Insurance and Guarantees,11                      Fair Value, Affirmative Preliminary Determination           In determining whether there have
                                                  Export Guarantee Fund,12 Export                         of Critical Circumstances and Postponement of            been ‘‘massive imports’’ over a
                                                  Promotion and Marketing Assistance,13                   Final Determination, 74 FR 59117, 59120                  ‘‘relatively short period,’’ pursuant to
                                                                                                          (November 17, 2009) unchanged in Certain Oil
                                                  Banco do Brasil and Banco Nacional de                   Country Tubular Goods from the People’s Republic
                                                                                                                                                                   sections 703(e)(1)(B) and 733(e)(1)(B) of
                                                  Desenvolvimento Econômico e Social                     of China: Final Determination of Sales at Less Than      the Act, the Department normally
                                                  (BNDES) ExIm loans,14 FINAME                            Fair Value, Affirmative Final Determination of           compares the import volumes of the
                                                  loans,15 and Automatic BNDES.16                         Critical Circumstances and Final Determination of        subject merchandise for at least three
                                                                                                          Targeted Dumping, 75 FR 20335 (April 19, 2010).
                                                    Therefore, the Department                                18 See Antidumping Duty Order; Certain Hot-
                                                                                                                                                                   months immediately preceding the
                                                  preliminarily determines for purposes of                Rolled Flat-Rolled Carbon-Quality Steel Products         filing of the petition (i.e., the ‘‘base
                                                  this critical circumstances                             From Japan, 64 FR 34778 (June 29, 1999).
                                                  determination that there are alleged                       19 See Antidumping Duty Order: Certain Hot-           Steel Plate from the People’s Republic of China, 62
                                                  subsidies in the Brazil CVD                             Rolled Flat-Rolled Carbon Quality Steel Products         FR 31972, 31978 (June 11, 1997) (unchanged in the
                                                                                                          from Brazil, 67 FR 11093 (March 12, 2002).               final determination) and Notice of Preliminary
                                                  investigation that are inconsistent with                   20 See Attachment 1 of Critical Circumstances         Determination of Sales at Less Than Fair Value,
                                                  the SCM Agreement.                                      Allegation (containing ‘‘Semi-Annual Report Under        Negative Preliminary Determination of Critical
                                                                                                          Article 16.4 of the Agreement’’ from Australia to        Circumstances and Postponement of Final
                                                  History of Dumping and Material                         World Trade Organization depicting ‘‘Definitive          Determination: Certain Frozen and Canned
                                                  Injury/Knowledge of Sales Below Fair                    Anti-Dumping Measures in Force, as of December           Warmwater Shrimp From the Socialist Republic of
                                                  Value and Material Injury                               31, 2014’’ which lists Hot Rolled Steel Coil from,       Vietnam, 69 FR 42672 (July 16, 2004) (unchanged
                                                                                                          Japan, et.al.; Semi-Annual Report Under Article          in the final determination).
                                                    In order to determine whether there is                16.4 of the Agreement’’ from Canada to World                23 See Certain Hot-Rolled Steel Flat Products from

                                                  a history of dumping pursuant to                        Trade Organization depicting ‘‘Definitive Anti-          Australia, Brazil, Japan, the Republic of Korea, the
                                                  section 733(e)(1)(A)(i) of the Act, the                 Dumping Measures in Force, as of December 31,            Netherlands, the Republic of Turkey, and the
                                                                                                          2014’’ which lists Certain Flat Hot-Rolled Carbon        United Kingdom: Initiation of Less-Than-Fair-Value
                                                  Department generally considers current                  and Alloy Steel Sheet and Strip from Brazil, et.al.;     Investigations, 80 FR 54261, 54265 (September 9,
                                                                                                          and ‘‘Semi-Annual Report Under Article 16.4 of the       2015).
                                                    5 Id.
                                                                                                          Agreement’’ from Thailand to World Trade                    24 See, e.g., Certain Potassium Phosphate Salts
                                                    6 See Brazil CVD Initiation Checklist, August 31,     Organization depicting ‘‘Definitive Anti-Dumping         from the People’s Republic of China: Preliminary
                                                  2015, at 7.                                             Measures in Force, as of December 31, 2014’’ which       Affirmative Determination of Critical Circumstances
                                                    7 Id., at 12.                                         lists Flat Hot Rolled Steel in Coils and not in Coils    in the Antidumping Duty Investigation, 75 FR
                                                    8 Id.                                                 from Japan, et.al.).                                     24572, 24573 (May 5, 2010), unchanged in Certain
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                                                    9 Id., at 13.                                            21 See, e.g., Notice of Preliminary Determinations    Potassium Phosphate Salts from the People’s
                                                    10 Id., at 14.                                        of Critical Circumstances: Certain Cold-Rolled           Republic of China: Final Determination of Sales at
                                                    11 Id., at 15.                                        Carbon Steel Flat Products from Australia, the           Less Than Fair Value and Termination of Critical
                                                    12 Id., at 16.
                                                                                                          People’s Republic of China, India, the Republic of       Circumstances Inquiry, 75 FR 30377 (June 1, 2010).
                                                                                                          Korea, the Netherlands, and the Russian                     25 See Certain Hot-Rolled Steel Flat Products from
                                                    13 Id., at 17.
                                                                                                          Federation, 67 FR 19157, 19158 (April 18, 2002)          Australia, Brazil, Japan, Korea, the Netherlands,
                                                    14 Id., at 34.
                                                                                                          (unchanged in the final determination).                  Turkey, and the United Kingdom, Inv. Nos. 701–
                                                    15 Id., at 35.                                           22 See, e.g., Preliminary Determination of Sales at   TA–545–547 and 731–TA–1291–1297 (Prelim),
                                                    16 Id., at 38.                                        Less Than Fair Value: Certain Cut-to-Length Carbon       USITC Pub. 4570 (Oct. 2015) at 1.



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                                                  76446                     Federal Register / Vol. 80, No. 236 / Wednesday, December 9, 2015 / Notices

                                                  period’’) to a comparable period of at                  analyst at Morgan Stanley Equity                            Thus, in order to determine whether
                                                  least three months following the filing                 Research was quoted as saying that he                    there has been a massive surge in
                                                  of the petition (i.e., the ‘‘comparison                 believed that ‘‘the {U.S} industry is also               imports for each cooperating mandatory
                                                  period’’). Imports normally will be                     working on cold-rolled and potentially                   respondent, the Department compared
                                                  considered massive when imports                         hot-rolled cases as well.’’ 30                           the total volume of shipments during
                                                  during the comparison period have                          • On June 9, 2015, American Metal                     the period June 2015 through October
                                                  increased by 15 percent or more                         Market issued an article providing                       2015 (all months for which data was
                                                  compared to imports during the base                     commentary from the chairman,                            available) with the volume of shipments
                                                  period.                                                 president, and chief executive officer                   during the preceding five-month period
                                                     Based on evidence provided by the                    (CEO) of AK Steel Corporation (one of                    of January 2015 through May 2015. For
                                                  petitioners, the Department finds that                  the petitioning companies in this                        ‘‘all others,’’ the Department compared
                                                  pursuant to 19 CFR 351.206(i),                          investigation), confirming that the trade                GTA data for the period June 2015
                                                  importers, exporters or producers had                   cases on hot-rolled and cold-rolled coil                 through September 2015 (the last month
                                                  reason to believe, at some time prior to                were likely to come shortly after the                    for which GTA data is currently
                                                  the filing of the petition, that a                      already-filed trade case on corrosion-                   available) with data for the preceding
                                                  proceeding was likely. Specifically, the                resistant steel. In particular, the author               four-month period of February 2014
                                                  Department concludes that the available                 indicated that, according to the CEO,                    through May 2015.33 We subtracted
                                                  factual information provided by the                     ‘‘{d}omestic steelmakers are considering                 shipments reported by the mandatory
                                                  petitioners indicates that by June 2015,                trade petitions against imports of hot-                  respondents from the GTA data. With
                                                  importers, exporters or producers had                   rolled and cold-rolled coil.’’ Further, the              respect to Australia and the
                                                  reason to believe that a proceeding was                 CEO was quoted as saying, ‘‘All aspects                  Netherlands, the shipment data do not
                                                  likely. The Department finds the                        of the carbon product are being                          demonstrate massive surges in imports
                                                  following information relevant from the                 analyzed. Whether (hot-rolled coil) is                   for any producers/exporters. Therefore,
                                                  press articles the petitioners provided to              the next case or the third case, all three               we are reaching a preliminary negative
                                                  support their claim of ‘‘early                          are being looked at and one has been                     critical circumstances determination
                                                  knowledge’’:                                            filed. . . The others are being evaluated                with respect to Australia and the
                                                     • On May 11, 2015, American Metal                    . . . At this point, we look to our                      Netherlands. With respect to Brazil and
                                                  Market issued an article acknowledging                  advisors and our lawyers to give us the                  Japan, we preliminarily determine the
                                                  an industry analyst at Morgan Stanley                   go-ahead. . .’’ 31                                       following producers/exporters had
                                                  Equity Research indicating that ‘‘flat-                    The above references, by industry                     massive surges in imports.34
                                                  rolled steel trade cases could move                     specialists and authorities, to the                         • Brazil (A–351–845 and C–351–846):
                                                  forward soon due to congressional                       impending trade cases on hot-rolled                      Companhia Siderugica Nacional (CSN),
                                                  bickering surrounding Trade Promotion                   steel indicate that steel importers,
                                                                                                                                                                   Usinas Siderurgicas da Minas Gerais
                                                  Authority (TPA).’’ 26 That article                      exporters, and producers had, by the
                                                                                                                                                                   S.A. (Usiminas);
                                                  included statements about the past and                  end of June 2015, sufficiently credible
                                                  current state of hot-rolled coil prices,                reasons to believe that forthcoming
                                                                                                                                                                   show that rumors on trade cases against imports of
                                                  thereby indicating that the potential                   petitions were likely.32                                 corrosion-resistant, cold-rolled, and hot-rolled
                                                  trade cases included hot-rolled steel.27                                                                         steels cases had been circulating as far back as 2014.
                                                                                                                                                                   The records also show that these three cases were
                                                     • On May 29, 2015, another industry
                                                                                                            30 Id.
                                                                                                            31 Id.                                                 often referenced collectively, or were simply
                                                  source, Steel Business Briefer, indicated                  32 In its November 3, 2015, submission, a             referred to as ‘‘flat rolled’’ cases. When trade cases
                                                  that an informant of a service center                   Japanese producer, Nippon Steel & Sumitomo Metal         were actually filed on imports of corrosion-resistant
                                                  executive stated that he was 90 percent                 Corporation, commented that the Department has           steel in early June 2015, we find that this solidified
                                                                                                          previously rejected the mere presence of rumors in       rumors into the expectation among steel importers,
                                                  sure that a filing on flat-rolled products                                                                       exporters, and producers that forthcoming petitions
                                                                                                          press articles as being too speculative to form a
                                                  will take place next week (i.e., in June).              basis for imputing knowledge that a petition was         on the remaining products (i.e., cold-rolled and hot-
                                                  According to the informant, ‘‘US sheet                  likely. Similarly, in its November 13, 2015,             rolled steels) were inevitable. This is corroborated
                                                  mills are waiting . . . to finish data                  comments, a Dutch producer, Tata Steel IJmuiden          by the statements from the CEO of AK Steel
                                                                                                                                                                   Corporation in the June 9, 2015, article by American
                                                  collection . . . and that {one} mill has                B.V., commented that none of the articles the
                                                                                                                                                                   Metal Market, which illuminated the imminence of
                                                                                                          petitioners cited rise to anything above speculation,
                                                  already contacted him to gather                         claiming that the strongest characterization of the      trade cases on imports of cold-rolled and hot-rolled
                                                  information. {US mills are} having                      articles that could be made concerning hot-rolled        steel, stating that the requisite data were ‘‘available’’
                                                  trouble with their customers finding out                steel is that the U.S. industry was looking into         and that other cases are ‘‘going to follow’’ pending
                                                                                                          whether a case could be brought, not that a case         legal approval.
                                                  how much import they’re buying.’’ 28                                                                                33 The Department gathered GTA data under the
                                                                                                          would be initiated and that such an initiation was
                                                  The article also included assessments                   imminent. In its November 2, 2015, submission, an        following harmonized tariff schedule numbers:
                                                  on hot-rolled and cold-rolled coil prices,              Australian producer/exporter, BlueScope Steel Ltd.       7208.10.1500, 7208.10.3000, 7208.10.6000,
                                                  thereby demonstrating that the potential                (BlueScope) asserted that ‘‘the existence of one or      7208.25.3000, 7208.25.6000, 7208.26.0030,
                                                  trade cases concerned both hot-rolled                   two uncorroborated rumors reported in the press          7208.26.0060, 7208.27.0030, 7208.27.0060,
                                                                                                          articles in June 2015, hardly constitutes a ‘reason      7208.36.0030, 7208.36.0060, 7208.37.0030,
                                                  and cold-rolled products.29                             to believe’ that a case against hot-rolled steel . . .   7208.37.0060, 7208.38.0015, 7208.38.0030,
                                                     • On June 4, 2015, a day after trade                 was ‘likely,’ as required by the regulations.’’ On the   7208.38.0090, 7208.39.0015, 7208.39.0030,
                                                  cases were filed on corrosion-resistant                 basis of the information in various industry articles    7208.39.0090, 7208.40.6030, 7208.40.6060,
                                                  steel products, American Metal Market                   it submitted, BlueScope notes that, in many months       7208.53.0000, 7208.54.0000, 7208.90.0000,
                                                                                                          leading up to the filing of a case against imports of    7210.70.3000, 7211.14.0030, 7211.14.0090,
                                                  issued an article stating that this case                coated steel in June 2015, a case against imports of     7211.19.1500, 7211.19.2000, 7211.19.3000,
                                                  was the ‘‘first of many expected across                 hot-rolled steel had not been mentioned since the        7211.19.4500, 7211.19.6000, 7211.19.7530,
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                                                  U.S. steel markets in the coming weeks                  time it was first rumored in July 2014; and cases        7211.19.7560, 7211.19.7590, 7225.11.0000,
                                                  and months.’’ Additionally, an industry                 against imports of cold-rolled and coated steel had      7225.19.0000, 7225.30.3050, 7225.30.7000,
                                                                                                          been repeatedly rumored but not filed. BlueScope         7225.40.7000, 7225.99.0090, 7226.11.1000,
                                                                                                          argues that, given the repeated unreliability of         7226.11.9030, 7226.11.9060, 7226.19.1000,
                                                    26 See Critical Circumstances Allegation at
                                                                                                          rumors in the past, importers would have been            7226.19.9000, 7226.91.5000, 7226.91.7000, and
                                                  Attachment 2.                                           understandably skeptical of any reports emerging in      7226.91.8000.
                                                    27 Id.                                                                                                            34 See respective preliminary critical
                                                                                                          June 2015 of a case against imports of hot-rolled
                                                    28 Id.
                                                                                                          steel. We do not find interested parties’ arguments      circumstances memoranda for each proceeding,
                                                    29 Id.                                                persuasive. The records of these investigations          dated concurrently with this notice.



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                                                                                    Federal Register / Vol. 80, No. 236 / Wednesday, December 9, 2015 / Notices                                                                                 76447

                                                    • Japan (A–588–874): Nippon Steel &                                  Conclusion                                                                exist with respect to imports of hot-
                                                  Sumikin Bussan Corporation (Nippon),                                     Based on the criteria and findings                                      rolled steel shipped by certain
                                                  JFE Steel Corporation (JFE);                                           discussed above, we preliminarily                                         producers/exporters. Our findings are
                                                                                                                         determine that critical circumstances                                     summarized as follows.

                                                                                                                                                                   Affirmative preliminary critical                     Negative preliminary critical
                                                                      Country                                             Case No.                                 circumstances determinations                        circumstances determinations

                                                  Australia .........................................     A–602–809 ...................................         None .............................................   BlueScope; all other producers/
                                                                                                                                                                                                                        exporters.
                                                  Brazil ..............................................   A–351–845       ...................................   CSN; Usiminas .............................          All other producers/exporters.
                                                                                                          C–351–846       ...................................
                                                  Japan .............................................     A–588–874       ...................................   Nippon; JFE ..................................       All other producers/exporters.
                                                  Netherlands ....................................        A–421–813       ...................................   None .............................................   Tata; all other producers/export-
                                                                                                                                                                                                                       ers.



                                                  Final Critical Circumstances                                           Register. This suspension of liquidation                                  DEPARTMENT OF COMMERCE
                                                  Determinations                                                         will remain in effect until further notice.
                                                                                                                                                                                                   International Trade Administration
                                                    We will issue final determinations                                      In accordance with section 733(e)(2)
                                                  concerning critical circumstances when                                 of the Act, because we have                                               [A–201–837; A–570–954]
                                                  we issue our final countervailing duty                                 preliminarily found that critical
                                                                                                                         circumstances exist with regard to                                        Certain Magnesia Carbon Bricks From
                                                  and less than fair value determinations.                                                                                                         Mexico and the People’s Republic of
                                                  All interested parties will have the                                   exports made by certain producers and/
                                                                                                                                                                                                   China: Final Results of Expedited
                                                  opportunity to address these                                           or exporters, if we make an affirmative
                                                                                                                                                                                                   Sunset Review of the Antidumping
                                                  determinations in case briefs to be                                    preliminary determination that sales at
                                                                                                                                                                                                   Duty Orders
                                                  submitted after completion of the                                      less than fair value have been made by
                                                  preliminary countervailing duty and                                    these same producers/exporters at above                                   AGENCY:   Enforcement and Compliance,
                                                  less than fair value determinations.                                   de minimis rates,36 we will instruct CBP                                  International Trade Administration,
                                                                                                                         to suspend liquidation of all entries of                                  Department of Commerce.
                                                  ITC Notification
                                                                                                                         subject merchandise from these                                            SUMMARY: On August 3, 2015, the
                                                    In accordance with sections 703(f)                                   producers/exporters that are entered, or                                  Department of Commerce (the
                                                  and 733(f) of the Act, we have notified                                withdrawn from warehouse, for                                             ‘‘Department’’) initiated the first five-
                                                  the ITC of our determinations.                                         consumption on or after the date that is                                  year (‘‘sunset’’) review of the
                                                                                                                         90 days prior to the effective date of                                    antidumping duty orders on certain
                                                  Suspension of Liquidation                                                                                                                        magnesia carbon bricks (‘‘MCBs’’) from
                                                                                                                         ‘‘provisional measures’’ (e.g., the date of
                                                     In accordance with section 703(e)(2)                                publication in the Federal Register of                                    Mexico and the People’s Republic of
                                                  of the Act, because we have                                                                                                                      China (‘‘PRC’’) pursuant to section
                                                                                                                         the notice of an affirmative preliminary
                                                                                                                                                                                                   751(c) of the Tariff Act of 1930, as
                                                  preliminarily found that critical                                      determination of sales at less than fair
                                                                                                                                                                                                   amended (the ‘‘Act’’).1 On the basis of
                                                  circumstances exist with regard to                                     value at above de minimis rates). At                                      a notice of intent to participate and an
                                                  exports made by certain producers and/                                 such time, we will also instruct CBP to                                   adequate substantive response, filed on
                                                  or exporters, if we make an affirmative                                require a cash deposit equal to the                                       behalf of the domestic interested parties,
                                                  preliminary determination that                                         estimated preliminary dumping margins                                     as well as a lack of response from
                                                  countervailable subsidies have been                                    reflected in the preliminary                                              respondent interested parties, the
                                                  provided to these same producers/                                      determination published in the Federal                                    Department conducted an expedited
                                                  exporters at above de minimis rates,35                                 Register. This suspension of liquidation                                  sunset review of the antidumping duty
                                                  we will instruct U.S. Customs and                                      will remain in effect until further notice.                               orders, pursuant to section 751(c)(3)(B)
                                                  Border Protection (CBP) to suspend
                                                                                                                            This notice is issued and published                                    of the Act and 19 CFR
                                                  liquidation of all entries of subject
                                                                                                                         pursuant to section 777(i) of the Act and                                 351.218(e)(1)(ii)(C)(2). As a result of this
                                                  merchandise from these producers/
                                                                                                                         19 CFR 351.206(c)(2).                                                     sunset review, the Department finds that
                                                  exporters that are entered, or withdrawn
                                                                                                                                                                                                   revocation of the Orders would be likely
                                                  from warehouse, for consumption on or                                    Dated: December 2, 2015.                                                to lead to continuation or recurrence of
                                                  after the date that is 90 days prior to the                            Christian Marsh,                                                          dumping at the levels indicated in the
                                                  effective date of ‘‘provisional measures’’
                                                                                                                         Deputy Assistant Secretary for Antidumping                                ‘‘Final Results of Review’’ section of this
                                                  (e.g., the date of publication in the
                                                                                                                         and Countervailing Duty Operations.                                       notice.
                                                  Federal Register of the notice of an
                                                  affirmative preliminary determination                                  [FR Doc. 2015–31083 Filed 12–8–15; 8:45 am]                               DATES: Effective Date: December 9, 2015.
                                                  that countervailable subsidies have been                               BILLING CODE 3510–DS–P                                                    FOR FURTHER INFORMATION CONTACT:
                                                  provided at above de minimis rates). At                                                                                                          Kenneth Hawkins, Enforcement and
                                                  such time, we will also instruct CBP to                                                                                                          Compliance, Office V, International
mstockstill on DSK4VPTVN1PROD with NOTICES




                                                  require a cash deposit equal to the                                                                                                              Trade Administration, U.S. Department
                                                  estimated preliminary subsidy rates                                                                                                              of Commerce, 14th Street and
                                                  reflected in the preliminary
                                                                                                                                                                                                     1 See Initiation of Five-Year (‘‘Sunset’’) Review, 80
                                                  determination published in the Federal
                                                                                                                                                                                                   FR 45945 (August 3, 2015) (‘‘Initiation Notice’’); see
                                                                                                                                                                                                   also Notice of Antidumping Duty Order: Certain
                                                    35 The preliminary determination in the                                36 The preliminary determinations concerning
                                                                                                                                                                                                   Magnesia Carbon Bricks from Mexico and the
                                                  countervailing duty investigation for Brazil is                        sales at less than fair value are due on March 8,                         People’s Republic of China: Antidumping Orders,
                                                  currently scheduled for January 8, 2016.                               2016.                                                                     75 FR 57257 (September 20, 2010) (‘‘Orders’’).



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Document Created: 2015-12-14 13:32:44
Document Modified: 2015-12-14 13:32:44
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ContactDmitry Vladimirov or Minoo Hatten, AD/ CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482- 0665, and (202) 482-1690, respectively.
FR Citation80 FR 76444 

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