81_FR_2178 81 FR 2168 - Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat Products From Brazil: Preliminary Affirmative Determination and Alignment of Final Determination With Final Antidumping Duty Determination

81 FR 2168 - Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat Products From Brazil: Preliminary Affirmative Determination and Alignment of Final Determination With Final Antidumping Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 10 (January 15, 2016)

Page Range2168-2170
FR Document2016-00751

The Department of Commerce (the Department) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain hot-rolled steel flat products (hot- rolled steel) from Brazil. The period of investigation is January 1, 2014, through December 31, 2014. We invite interested parties to comment on this preliminary determination.

Federal Register, Volume 81 Issue 10 (Friday, January 15, 2016)
[Federal Register Volume 81, Number 10 (Friday, January 15, 2016)]
[Notices]
[Pages 2168-2170]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00751]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-846]


Countervailing Duty Investigation of Certain Hot-Rolled Steel 
Flat Products From Brazil: Preliminary Affirmative Determination and 
Alignment of Final Determination With Final Antidumping Duty 
Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain hot-rolled steel flat products (hot-
rolled steel) from Brazil. The period of investigation is January 1, 
2014, through December 31, 2014. We invite interested parties to 
comment on this preliminary determination.

DATES: Effective date: January 15, 2016.

FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski or Lana Nigro, 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-
1395 or (202) 482-1779, respectively.

Scope of the Investigation

    The products covered by this investigation are hot-rolled steel 
flat products from Brazil. For a complete description of the scope of 
this investigation, see Appendix II.

Methodology

    The Department is conducting this countervailing duty (CVD) 
investigation in accordance with section 701 of the Tariff Act of 1930, 
as amended (Act). For each of the subsidy programs found 
countervailable, we preliminarily determine that there is a subsidy, 
i.e., a financial contribution by an ``authority'' that gives rise to a 
benefit to the recipient, and that the subsidy is specific.\1\ For a 
full description of the methodology underlying our preliminary 
conclusions, see the Preliminary Decision Memorandum.\2\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix I to this notice. The Preliminary Decision Memorandum is a 
public document and is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
http://access.trade.gov, and is available to all parties in the Central 
Records Unit, room B8024 of the main Department of Commerce building. 
In addition, a complete version of the Preliminary Decision Memorandum 
can be accessed directly at http://enforcement.trade.gov/frn/. The 
signed Preliminary Decision Memorandum and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \1\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
    \2\ See Memorandum to Paul Piquado, Assistant Secretary for 
Enforcement and Compliance, from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations; Re: 
Decision Memorandum for the Preliminary Determination in the 
Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat 
Products from Brazil, dated January 8, 2016.
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    In making this preliminary determination, the Department relied, in 
part, on facts otherwise available.\3\ For further information, see 
``Use of Facts Otherwise Available'' in the accompanying Preliminary 
Decision Memorandum.
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    \3\ See section 776(a) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning 
the final

[[Page 2169]]

CVD determination in this investigation with the final determination in 
the companion antidumping duty (AD) investigation of hot-rolled steel 
from Brazil based on a request made by Petitioners.\4\ Consequently, 
the final CVD determination will be issued on the same date as the 
final AD determination, which is currently scheduled to be issued no 
later than May 22, 2016,\5\ unless postponed.
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    \4\ AK Steel Corporation, ArcelorMittal USA LLC, Nucor 
Corporation, Steel Dynamics Inc., and the United States Steel 
Corporation (collectively, Petitioners). See letter from 
Petitioners, ``Certain Hot-Rolled Steel Flat Products from Brazil 
and the Republic of Korea: Request to Align the Countervailing Duty 
Final Determinations with the Companion Antidumping Duty Final 
Determinations,'' dated January 7, 2016 (Petitioners' Request for 
Alignment).
    \5\ The current deadline for the final AD determination, May 22, 
2016, is a Sunday. Pursuant to Department practice, the signature 
date will be the next business day, which is Monday, May 23, 2016. 
See Notice of Clarification: Application of ``Next Business Day'' 
Rule for Administrative Determination Deadlines Pursuant to the 
Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
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Preliminary Determination

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated a CVD rate for each individually investigated respondent 
company. Section 705(c)(5)(A)(i) of the Act states that, for companies 
not individually investigated, we will determine an ``all-others'' rate 
equal to the weighted-average countervailable subsidy rates established 
for exporters and producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and any rates 
determined entirely under section 776 of the Act.
    Consistent with the Department's practice, we normally calculate 
the all-others rate based on the weighted average of the mandatory 
respondents' calculated subsidy rates.\6\ In this case however, the two 
mandatory respondents have the same rate. Therefore, it is unnecessary 
to calculate an all-others rate that is the weighted average of the 
mandatory respondents' rates. The all-others rate is the rate 
calculated for both mandatory respondents.
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    \6\ See, e.g., Countervailing Duty Investigation of Certain 
Passenger Vehicle and Light Truck Tires From the People's Republic 
of China: Final Affirmative Determination, and Final Affirmative 
Critical Circumstances Determination, in Part, 80 FR 34888 (June 18, 
2015).
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    We preliminarily determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Companhia Siderurgica Nacional (CSN)....................            7.42
Usinas Siderurgicas de Minas Gerais S.A. (Usiminas).....            7.42
All-Others..............................................            7.42
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 703(d)(2) of the Act, we will direct 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of hot-rolled steel from Brazil as described in the scope of 
the investigation section entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register. Section 703(e)(2) of the Act provides that, given an 
affirmative determination of critical circumstances, any suspension of 
liquidation shall apply to unliquidated entries of merchandise entered, 
or withdrawn from warehouse, for consumption on or after the later of 
(a) the date which is 90 days before the date on which the suspension 
of liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. On December 9, 2015, we 
preliminarily found that critical circumstances exist for imports 
produced or exported by CSN and Usiminas.\7\ For CSN and Usiminas, in 
accordance with section 703(e)(2)(A) of the Act, suspension of 
liquidation of hot-rolled steel products from Brazil, as described in 
the ``Scope of the Investigation'' section, shall apply to unliquidated 
entries of merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date which is 90 days before the 
publication of this notice, the date suspension of liquidation is first 
ordered. Because we preliminarily found critical circumstances do not 
exist for all other producers and exporters, we will begin suspension 
of liquidation for such firms on the date of publication of this notice 
in the Federal Register. In accordance with sections 703(d)(1)(B) and 
703(e)(2)(A) of the Act, the Department will instruct CBP to require a 
cash deposit equal to the amounts indicated above.
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    \7\ See 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 (December 9, 2015).
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Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the respondents prior to making our final 
determination.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (ITC) of our determination. In addition, 
we are making available to the ITC all non-privileged and non-
proprietary information relating to this investigation. We will allow 
the ITC access to all privileged and business proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under an administrative protective 
order, without the written consent of the Assistant Secretary for 
Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.

Disclosure and Public Comment

    The Department intends to disclose to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement.\8\ 
Interested parties may submit case and rebuttal briefs, as well as 
request a hearing.\9\ For a schedule of the deadlines for filing case 
briefs, rebuttal briefs, and hearing requests, see the Preliminary 
Decision Memorandum.
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    \8\ See 19 CFR 351.224(b).
    \9\ See 19 CFR 351.309(c)-(d), 19 CFR 351.310(c).
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    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: January 8, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Preliminary Determination of Critical Circumstances
IV. Scope Comments
V. Scope of the Investigation
VI. Alignment
VII. Injury Test
VIII. Use of Facts Otherwise Available
IX. Subsidies Valuation
X. Analysis of Programs
XI. Calculation of the All-Others Rate
XII. ITC Notification
XIII. Disclosure and Public Comment
XIV. Verification

[[Page 2170]]

XV. Conclusion

Appendix II

Scope of the Investigation

    The products covered by this investigation are certain hot-
rolled, flat-rolled steel products, with or without patterns in 
relief, and whether or not annealed, painted, varnished, or coated 
with plastics or other non-metallic substances. The products covered 
do not include those that are clad, plated, or coated with metal. 
The products covered include coils that have a width or other 
lateral measurement (``width'') of 12.7 mm or greater, regardless of 
thickness, and regardless of form of coil (e.g., in successively 
superimposed layers, spirally oscillating, etc.). The products 
covered also include products not in coils (e.g., in straight 
lengths) of a thickness of less than 4.75 mm and a width that is 
12.7 mm or greater and that measures at least 10 times the 
thickness. The products described above may be rectangular, square, 
circular, or other shape and include products of either rectangular 
or non-rectangular cross-section where such cross-section is achieve 
subsequent to the rolling process, i.e., products which have been 
``worked after rolling'' (e.g., products which have been beveled or 
rounded at the edges). For purposes of the width and thickness 
requirements referenced above:
    (1) Where the nominal and actual measurements vary, a product is 
within the scope if application of either the nominal or actual 
measurement would place it within the scope based on the definitions 
set forth above unless the resulting measurement makes the product 
covered by the existing antidumping \10\ or countervailing duty \11\ 
orders on Certain Cut-To-Length Carbon-Quality Steel Plate Products 
From the Republic of Korea (A-580-836; C-580-837), and
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    \10\ Notice of Amendment of Final Determinations of Sales at 
Less Than Fair Value and Antidumping Duty Orders: Certain Cut-To-
Length Carbon-Quality Steel Plate Products From France, India, 
Indonesia, Italy, Japan and the Republic of Korea, 65 FR 6585 
(February 10, 2000).
    \11\ Notice of Amended Final Determinations: Certain Cut-to-
Length Carbon-Quality Steel Plate From India and the Republic of 
Korea; and Notice of Countervailing Duty Orders: Certain Cut-To-
Length Carbon-Quality Steel Plate From France, India, Indonesia, 
Italy, and the Republic of Korea, 65 FR 6587 (February 10, 2000).
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    (2) where the width and thickness vary for a specific product 
(e.g., the thickness of certain products with non-rectangular cross-
section, the width of certain products with non-rectangular shape, 
etc.), the measurement at its greatest width or thickness applies.
    Steel products included in the scope of this investigation are 
products in which: (1) Iron predominates, by weight, over each of 
the other contained elements; (2) the carbon content is 2 percent or 
less, by weight; and (3) none of the elements listed below exceeds 
the quantity, by weight, respectively indicated:

 2.50 percent of manganese, or
 3.30 percent of silicon, or
 1.50 percent of copper, or
 1.50 percent of aluminum, or
 1.25 percent of chromium, or
 0.30 percent of cobalt, or
 0.40 percent of lead, or
 2.00 percent of nickel, or
 0.30 percent of tungsten, or
 0.80 percent of molybdenum, or
 0.10 percent of niobium, or
 0.30 percent of vanadium, or
 0.30 percent of zirconium.

    Unless specifically excluded, products are included in this 
scope regardless of levels of boron and titanium.
    For example, specifically included in this scope are vacuum 
degassed, fully stabilized (commonly referred to as interstitial-
free (IF)) steels, high strength low alloy (HSLA) steels, the 
substrate for motor lamination steels, Advanced High Strength Steels 
(AHSS), and Ultra High Strength Steels (UHSS). IF steels are 
recognized as low carbon steels with micro-alloying levels of 
elements such as titanium and/or niobium added to stabilize carbon 
and nitrogen elements. HSLA steels are recognized as steels with 
micro-alloying levels of elements such as chromium, copper, niobium, 
titanium, vanadium, and molybdenum. The substrate for motor 
lamination steels contains micro-alloying levels of elements such as 
silicon and aluminum. AHSS and UHSS are considered high tensile 
strength and high elongation steels, although AHSS and UHSS are 
covered whether or not they are high tensile strength or high 
elongation steels.
    Subject merchandise includes hot-rolled steel that has been 
further processed in a third country, including but not limited to 
pickling, oiling, levelling, annealing, tempering, temper rolling, 
skin passing, painting, varnishing, trimming, cutting, punching, 
and/or slitting, or any other processing that would not otherwise 
remove the merchandise from the scope of the investigation if 
performed in the country of manufacture of the hot-rolled steel.
    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of this 
investigation unless specifically excluded. The following products 
are outside of and/or specifically excluded from the scope of this 
investigation:
     Universal mill plates (i.e., hot-rolled, flat-rolled 
products not in coils that have been rolled on four faces or in a 
closed box pass, of a width exceeding 150 mm but not exceeding 1250 
mm, of a thickness not less than 4.0 mm, and without patterns in 
relief);
     Products that have been cold-rolled (cold-reduced) 
after hot-rolling; \12\
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    \12\ For purposes of this scope exclusion, rolling operations 
such as a skin pass, levelling, temper rolling or other minor 
rolling operations after the hot-rolling process for purposes of 
surface finish, flatness, shape control, or gauge control do not 
constitute cold-rolling sufficient to meet this exclusion.
---------------------------------------------------------------------------

     Ball bearing steels; \13\
---------------------------------------------------------------------------

    \13\ Ball bearing steels are defined as steels which contain, in 
addition to iron, each of the following elements by weight in the 
amount specified: (i) Not less than 0.95 nor more than 1.13 percent 
of carbon; (ii) not less than 0.22 nor more than 0.48 percent of 
manganese; (iii) none, or not more than 0.03 percent of sulfur; (iv) 
none, or not more than 0.03 percent of phosphorus; (v) not less than 
0.18 nor more than 0.37 percent of silicon; (vi) not less than 1.25 
nor more than 1.65 percent of chromium; (vii) none, or not more than 
0.28 percent of nickel; (viii) none, or not more than 0.38 percent 
of copper; and (ix) none, or not more than 0.09 percent of 
molybdenum.
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     Tool steels;\14\ and
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    \14\ Tool steels are defined as steels which contain the 
following combinations of elements in the quantity by weight 
respectively indicated: (i) More than 1.2 percent carbon and more 
than 10.5 percent chromium; or (ii) not less than 0.3 percent carbon 
and 1.25 percent or more but less than 10.5 percent chromium; or 
(iii) not less than 0.85 percent carbon and 1 percent to 1.8 
percent, inclusive, manganese; or (iv) 0.9 percent to 1.2 percent, 
inclusive, chromium and 0.9 percent to 1.4 percent, inclusive, 
molybdenum; or (v) not less than 0.5 percent carbon and not less 
than 3.5 percent molybdenum; or (vi) not less than 0.5 percent 
carbon and not less than 5.5 percent tungsten.
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     Silico-manganese steels;\15\
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    \15\ Silico-manganese steel is defined as steels containing by 
weight: (i) Not more than 0.7 percent of carbon; (ii) 0.5 percent or 
more but not more than 1.9 percent of manganese, and (iii) 0.6 
percent or more but not more than 2.3 percent of silicon.
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    The products subject to this investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item 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. The products subject 
to the investigation may also enter under the following HTSUS 
numbers: 7210.90.9000, 7211.90.0000, 7212.40.1000, 7212.40.5000, 
7212.50.0000, 7214.91.0015, 7214.91.0060, 7214.91.0090, 
7214.99.0060, 7214.99.0075, 7214.99.0090, 7215.90.5000, 
7226.99.0180, and 7228.60.6000.
    The HTSUS subheadings above are provided for convenience and 
U.S. Customs purposes only. The written description of the scope of 
the investigation is dispositive.

[FR Doc. 2016-00751 Filed 1-14-16; 8:45 am]
 BILLING CODE 3510-DS-P



                                                  2168                           Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices

                                                  aluminum. AHSS and UHSS are considered                  7208.10.3000, 7208.10.6000, 7208.25.3000,              Scope of the Investigation
                                                  high tensile strength and high elongation               7208.25.6000, 7208.26.0030, 7208.26.0060,
                                                  steels, although AHSS and UHSS are covered              7208.27.0030, 7208.27.0060, 7208.36.0030,                The products covered by this
                                                  whether or not they are high tensile strength           7208.36.0060, 7208.37.0030, 7208.37.0060,              investigation are hot-rolled steel flat
                                                  or high elongation steels.                              7208.38.0015, 7208.38.0030, 7208.38.0090,              products from Brazil. For a complete
                                                     Subject merchandise includes hot-rolled              7208.39.0015, 7208.39.0030, 7208.39.0090,              description of the scope of this
                                                  steel that has been further processed in a              7208.40.6030, 7208.40.6060, 7208.53.0000,              investigation, see Appendix II.
                                                  third country, including but not limited to             7208.54.0000, 7208.90.0000, 7210.70.3000,
                                                  pickling, oiling, levelling, annealing,                 7211.14.0030, 7211.14.0090, 7211.19.1500,              Methodology
                                                  tempering, temper rolling, skin passing,                7211.19.2000, 7211.19.3000, 7211.19.4500,                 The Department is conducting this
                                                  painting, varnishing, trimming, cutting,                7211.19.6000, 7211.19.7530, 7211.19.7560,              countervailing duty (CVD) investigation
                                                  punching, and/or slitting, or any other                 7211.19.7590, 7225.11.0000, 7225.19.0000,              in accordance with section 701 of the
                                                  processing that would not otherwise remove              7225.30.3050, 7225.30.7000, 7225.40.7000,
                                                  the merchandise from the scope of the
                                                                                                                                                                 Tariff Act of 1930, as amended (Act).
                                                                                                          7225.99.0090, 7226.11.1000, 7226.11.9030,
                                                  investigation if performed in the country of                                                                   For each of the subsidy programs found
                                                                                                          7226.11.9060, 7226.19.1000, 7226.19.9000,
                                                  manufacture of the hot-rolled steel.                    7226.91.5000, 7226.91.7000, and                        countervailable, we preliminarily
                                                     All products that meet the written physical          7226.91.8000. The products subject to the              determine that there is a subsidy, i.e., a
                                                  description, and in which the chemistry                 investigation may also enter under the                 financial contribution by an ‘‘authority’’
                                                  quantities do not exceed any one of the noted           following HTSUS numbers: 7210.90.9000,                 that gives rise to a benefit to the
                                                  element levels listed above, are within the             7211.90.0000, 7212.40.1000, 7212.40.5000,              recipient, and that the subsidy is
                                                  scope of this investigation unless specifically         7212.50.0000, 7214.91.0015, 7214.91.0060,              specific.1 For a full description of the
                                                  excluded. The following products are outside            7214.91.0090, 7214.99.0060, 7214.99.0075,              methodology underlying our
                                                  of and/or specifically excluded from the                7214.99.0090, 7215.90.5000, 7226.99.0180,
                                                  scope of this investigation:
                                                                                                                                                                 preliminary conclusions, see the
                                                                                                          and 7228.60.6000.                                      Preliminary Decision Memorandum.2 A
                                                     • Universal mill plates (i.e., hot-rolled,             The HTSUS subheadings above are
                                                  flat-rolled products not in coils that have                                                                    list of topics discussed in the
                                                                                                          provided for convenience and U.S. Customs
                                                  been rolled on four faces or in a closed box            and Border Protection purposes only. The               Preliminary Decision Memorandum is
                                                  pass, of a width exceeding 150 mm but not               written description of the scope of the                included as Appendix I to this notice.
                                                  exceeding 1250 mm, of a thickness not less              investigation is dispositive.                          The Preliminary Decision Memorandum
                                                  than 4.0 mm, and without patterns in relief);                                                                  is a public document and is on file
                                                     • Products that have been cold-rolled                [FR Doc. 2016–00749 Filed 1–14–16; 8:45 am]
                                                                                                                                                                 electronically via Enforcement and
                                                  (cold-reduced) after hot-rolling; 6                     BILLING CODE 3510–DS–P
                                                                                                                                                                 Compliance’s Antidumping and
                                                     • Ball bearing steels; 7
                                                     • Tool steels; 8 and                                                                                        Countervailing Duty Centralized
                                                     • Silico-manganese steels; 9                         DEPARTMENT OF COMMERCE                                 Electronic Service System (ACCESS).
                                                     The products subject to this investigation                                                                  ACCESS is available to registered users
                                                  are currently classified in the Harmonized              International Trade Administration                     at http://access.trade.gov, and is
                                                  Tariff Schedule of the United States (HTSUS)                                                                   available to all parties in the Central
                                                  under item numbers: 7208.10.1500,                                                                              Records Unit, room B8024 of the main
                                                                                                          [C–351–846]
                                                                                                                                                                 Department of Commerce building. In
                                                    6 For  purposes of this scope exclusion, rolling
                                                                                                          Countervailing Duty Investigation of                   addition, a complete version of the
                                                  operations such as a skin pass, levelling, temper                                                              Preliminary Decision Memorandum can
                                                  rolling or other minor rolling operations after the     Certain Hot-Rolled Steel Flat Products
                                                  hot-rolling process for purposes of surface finish,     From Brazil: Preliminary Affirmative                   be accessed directly at http://
                                                  flatness, shape control, or gauge control do not        Determination and Alignment of Final                   enforcement.trade.gov/frn/. The signed
                                                  constitute cold-rolling sufficient to meet this
                                                                                                          Determination With Final Antidumping                   Preliminary Decision Memorandum and
                                                  exclusion.                                                                                                     the electronic versions of the
                                                     7 Ball bearing steels are defined as steels which    Duty Determination
                                                                                                                                                                 Preliminary Decision Memorandum are
                                                  contain, in addition to iron, each of the following
                                                  elements by weight in the amount specified: (i) Not     AGENCY:  Enforcement and Compliance,                   identical in content.
                                                  less than 0.95 nor more than 1.13 percent of carbon;    International Trade Administration,                       In making this preliminary
                                                  (ii) not less than 0.22 nor more than 0.48 percent      Department of Commerce.                                determination, the Department relied, in
                                                  of manganese; (iii) none, or not more than 0.03                                                                part, on facts otherwise available.3 For
                                                  percent of sulfur; (iv) none, or not more than 0.03     SUMMARY:   The Department of Commerce
                                                  percent of phosphorus; (v) not less than 0.18 nor                                                              further information, see ‘‘Use of Facts
                                                                                                          (the Department) preliminarily                         Otherwise Available’’ in the
                                                  more than 0.37 percent of silicon; (vi) not less than
                                                  1.25 nor more than 1.65 percent of chromium; (vii)      determines that countervailable                        accompanying Preliminary Decision
                                                  none, or not more than 0.28 percent of nickel; (viii)   subsidies are being provided to                        Memorandum.
                                                  none, or not more than 0.38 percent of copper; and      producers and exporters of certain hot-
                                                  (ix) none, or not more than 0.09 percent of             rolled steel flat products (hot-rolled                 Alignment
                                                  molybdenum.
                                                     8 Tool steels are defined as steels which contain    steel) from Brazil. The period of                        As noted in the Preliminary Decision
                                                  the following combinations of elements in the           investigation is January 1, 2014, through              Memorandum, in accordance with
                                                  quantity by weight respectively indicated: (i) More     December 31, 2014. We invite interested                section 705(a)(1) of the Act and 19 CFR
                                                  than 1.2 percent carbon and more than 10.5 percent      parties to comment on this preliminary
                                                  chromium; or (ii) not less than 0.3 percent carbon
                                                                                                                                                                 351.210(b)(4), we are aligning the final
                                                  and 1.25 percent or more but less than 10.5 percent
                                                                                                          determination.
                                                                                                                                                                   1 See sections 771(5)(B) and (D) of the Act
                                                  chromium; or (iii) not less than 0.85 percent carbon    DATES:   Effective date: January 15, 2016.
                                                  and 1 percent to 1.8 percent, inclusive, manganese;                                                            regarding financial contribution; section 771(5)(E)
                                                  or (iv) 0.9 percent to 1.2 percent, inclusive,          FOR FURTHER INFORMATION CONTACT:                       of the Act regarding benefit; and section 771(5A) of
                                                  chromium and 0.9 percent to 1.4 percent, inclusive,                                                            the Act regarding specificity.
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                                                                                                          Nicholas Czajkowski or Lana Nigro, AD/
                                                  molybdenum; or (v) not less than 0.5 percent carbon                                                              2 See Memorandum to Paul Piquado, Assistant

                                                  and not less than 3.5 percent molybdenum; or (vi)       CVD Operations, Office I, Enforcement                  Secretary for Enforcement and Compliance, from
                                                  not less than 0.5 percent carbon and not less than      and Compliance, International Trade                    Christian Marsh, Deputy Assistant Secretary for
                                                  5.5 percent tungsten.                                   Administration, U.S. Department of                     Antidumping and Countervailing Duty Operations;
                                                     9 Silico-manganese steel is defined as steels
                                                                                                          Commerce, 14th Street and Constitution                 Re: Decision Memorandum for the Preliminary
                                                  containing by weight: (i) Not more than 0.7 percent                                                            Determination in the Countervailing Duty
                                                  of carbon; (ii) 0.5 percent or more but not more than
                                                                                                          Avenue NW., Washington, DC 20230;                      Investigation of Certain Hot-Rolled Steel Flat
                                                  1.9 percent of manganese, and (iii) 0.6 percent or      telephone: (202) 482–1395 or (202) 482–                Products from Brazil, dated January 8, 2016.
                                                  more but not more than 2.3 percent of silicon.          1779, respectively.                                      3 See section 776(a) of the Act.




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                                                                                 Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices                                                            2169

                                                  CVD determination in this investigation                                                               Subsidy rate   submitted by the respondents prior to
                                                                                                                       Company
                                                  with the final determination in the                                                                    (percent)     making our final determination.
                                                  companion antidumping duty (AD)
                                                                                                          Usinas Siderurgicas de                       International Trade Commission
                                                  investigation of hot-rolled steel from
                                                                                                            Minas Gerais S.A.                          Notification
                                                  Brazil based on a request made by
                                                                                                            (Usiminas) .........................  7.42     In accordance with section 703(f) of
                                                  Petitioners.4 Consequently, the final                   All-Others ..............................
                                                                                                                                                  7.42 the Act, we will notify the International
                                                  CVD determination will be issued on
                                                  the same date as the final AD                                                                        Trade Commission (ITC) of our
                                                                                                          Suspension of Liquidation                    determination. In addition, we are
                                                  determination, which is currently
                                                  scheduled to be issued no later than                       In accordance with section 703(d)(2)      making available to the ITC all non-
                                                  May 22, 2016,5 unless postponed.                        of the Act, we will direct U.S. Customs      privileged and non-proprietary
                                                                                                          and  Border  Protection   (CBP) to suspend   information relating to this
                                                  Preliminary Determination                                                                            investigation. We will allow the ITC
                                                                                                          liquidation of all entries of hot-rolled
                                                     In accordance with section                           steel from Brazil as described in the        access to all privileged and business
                                                  703(d)(1)(A)(i) of the Act, we calculated scope of the investigation section                         proprietary information in our files,
                                                  a CVD rate for each individually                        entered, or withdrawn from warehouse, provided the ITC confirms that it will
                                                  investigated respondent company.                        for consumption on or after the date of      not disclose such information, either
                                                  Section 705(c)(5)(A)(i) of the Act states               publication of this notice in the Federal publicly or under an administrative
                                                  that, for companies not individually                    Register. Section 703(e)(2) of the Act       protective order, without the written
                                                  investigated, we will determine an ‘‘all- provides that, given an affirmative                        consent of the Assistant Secretary for
                                                  others’’ rate equal to the weighted-                    determination of critical circumstances, Enforcement and Compliance.
                                                  average countervailable subsidy rates                   any suspension of liquidation shall              In accordance with section 705(b)(2)
                                                  established for exporters and producers                 apply to unliquidated entries of             of  the Act, if our final determination is
                                                  individually investigated, excluding any merchandise entered, or withdrawn                           affirmative, the ITC will make its final
                                                  zero and de minimis countervailable                     from warehouse, for consumption on or determination within 45 days after the
                                                  subsidy rates, and any rates determined after the later of (a) the date which is 90 Department makes its final
                                                  entirely under section 776 of the Act.                  days before the date on which the            determination.
                                                     Consistent with the Department’s                     suspension of liquidation was first          Disclosure and Public Comment
                                                  practice, we normally calculate the all-                ordered, or (b) the date on which notice         The Department intends to disclose to
                                                  others rate based on the weighted                       of initiation of the investigation was       interested parties the calculations
                                                  average of the mandatory respondents’                   published. On December 9, 2015, we           performed in connection with this
                                                  calculated subsidy rates.6 In this case                 preliminarily found that critical            preliminary determination within five
                                                  however, the two mandatory                              circumstances exist for imports              days of its public announcement.8
                                                  respondents have the same rate.                         produced or exported by CSN and              Interested   parties may submit case and
                                                  Therefore, it is unnecessary to calculate Usiminas.7 For CSN and Usiminas, in
                                                                                                                                                       rebuttal briefs, as well as request a
                                                  an all-others rate that is the weighted                 accordance with section 703(e)(2)(A) of      hearing.9 For a schedule of the
                                                  average of the mandatory respondents’                   the Act, suspension of liquidation of        deadlines for filing case briefs, rebuttal
                                                  rates. The all-others rate is the rate                  hot-rolled steel products from Brazil, as briefs, and hearing requests, see the
                                                  calculated for both mandatory                           described in the ‘‘Scope of the              Preliminary Decision Memorandum.
                                                  respondents.                                            Investigation’’ section, shall apply to          This determination is issued and
                                                     We preliminarily determine the                       unliquidated entries of merchandise          published pursuant to sections 703(f)
                                                  countervailable subsidy rates to be:                    entered, or withdrawn from warehouse, and 777(i) of the Act and 19 CFR
                                                                                                          for consumption on or after the date         351.205(c).
                                                                                         Subsidy rate     which is 90 days before the publication
                                                              Company                                                                                     Dated: January 8, 2016.
                                                                                           (percent)      of this notice, the date suspension of
                                                                                                          liquidation  is first ordered. Because we    Paul Piquado,
                                                  Companhia Siderurgica                                                                                Assistant Secretary for Enforcement and
                                                    Nacional (CSN) .................                 7.42 preliminarily found critical                 Compliance.
                                                                                                          circumstances do not exist for all other
                                                    4 AK Steel Corporation, ArcelorMittal USA LLC,
                                                                                                          producers and exporters, we will begin       Appendix I
                                                  Nucor Corporation, Steel Dynamics Inc., and the         suspension of liquidation for such firms
                                                                                                                                                       List of Topics Discussed in the Preliminary
                                                  United States Steel Corporation (collectively,          on the date of publication of this notice
                                                                                                                                                       Decision Memorandum
                                                  Petitioners). See letter from Petitioners, ‘‘Certain    in the Federal Register. In accordance
                                                  Hot-Rolled Steel Flat Products from Brazil and the      with sections 703(d)(1)(B) and               I. Summary
                                                  Republic of Korea: Request to Align the                                                              II. Background
                                                  Countervailing Duty Final Determinations with the       703(e)(2)(A)  of  the Act, the Department
                                                                                                                                                       III. Preliminary Determination of Critical
                                                  Companion Antidumping Duty Final                        will instruct CBP to require a cash                Circumstances
                                                  Determinations,’’ dated January 7, 2016 (Petitioners’ deposit equal to the amounts indicated
                                                                                                                                                       IV. Scope Comments
                                                  Request for Alignment).                                 above.                                       V. Scope of the Investigation
                                                    5  The current deadline for the final AD
                                                                                                                                                                       VI. Alignment
                                                  determination, May 22, 2016, is a Sunday. Pursuant      Verification                                                 VII. Injury Test
                                                  to Department practice, the signature date will be
                                                  the next business day, which is Monday, May 23,          As provided in section 782(i)(1) of the                     VIII. Use of Facts Otherwise Available
                                                  2016. See Notice of Clarification: Application of                                                                    IX. Subsidies Valuation
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                                                                                                          Act, we intend to verify the information
                                                  ‘‘Next Business Day’’ Rule for Administrative                                                                        X. Analysis of Programs
                                                  Determination Deadlines Pursuant to the Tariff Act                                                                   XI. Calculation of the All-Others Rate
                                                  of 1930, As Amended, 70 FR 24533 (May 10, 2005).          7 See Antidumping Duty Investigations of Certain
                                                                                                                                                                       XII. ITC Notification
                                                     6 See, e.g., Countervailing Duty Investigation of    Hot-Rolled Steel Flat Products From Australia,               XIII. Disclosure and Public Comment
                                                  Certain Passenger Vehicle and Light Truck Tires         Brazil, Japan, and the Netherlands and
                                                                                                                                                                       XIV. Verification
                                                  From the People’s Republic of China: Final              Countervailing Duty Investigation of Certain Hot-
                                                  Affirmative Determination, and Final Affirmative        Rolled Steel Flat Products From Brazil: Preliminary
                                                                                                                                                                         8 See   19 CFR 351.224(b).
                                                  Critical Circumstances Determination, in Part, 80       Determinations of Critical Circumstances, 80 FR
                                                  FR 34888 (June 18, 2015).                               76444 (December 9, 2015).                                      9 See   19 CFR 351.309(c)–(d), 19 CFR 351.310(c).



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                                                  2170                           Federal Register / Vol. 81, No. 10 / Friday, January 15, 2016 / Notices

                                                  XV. Conclusion                                          •  1.25 percent of chromium, or                           • Tool steels;14 and
                                                                                                          •  0.30 percent of cobalt, or                             • Silico-manganese steels;15
                                                  Appendix II                                             •  0.40 percent of lead, or                               The products subject to this investigation
                                                  Scope of the Investigation                              •  2.00 percent of nickel, or                           are currently classified in the Harmonized
                                                                                                          •  0.30 percent of tungsten, or                         Tariff Schedule of the United States (HTSUS)
                                                     The products covered by this investigation           •  0.80 percent of molybdenum, or
                                                  are certain hot-rolled, flat-rolled steel                                                                       under item numbers: 7208.10.1500,
                                                                                                          •  0.10 percent of niobium, or
                                                  products, with or without patterns in relief,                                                                   7208.10.3000, 7208.10.6000, 7208.25.3000,
                                                                                                          •  0.30 percent of vanadium, or
                                                  and whether or not annealed, painted,                                                                           7208.25.6000, 7208.26.0030, 7208.26.0060,
                                                                                                          •  0.30 percent of zirconium.
                                                  varnished, or coated with plastics or other                                                                     7208.27.0030, 7208.27.0060, 7208.36.0030,
                                                  non-metallic substances. The products                      Unless specifically excluded, products are
                                                                                                          included in this scope regardless of levels of          7208.36.0060, 7208.37.0030, 7208.37.0060,
                                                  covered do not include those that are clad,
                                                                                                          boron and titanium.                                     7208.38.0015, 7208.38.0030, 7208.38.0090,
                                                  plated, or coated with metal. The products
                                                  covered include coils that have a width or                 For example, specifically included in this           7208.39.0015, 7208.39.0030, 7208.39.0090,
                                                  other lateral measurement (‘‘width’’) of 12.7           scope are vacuum degassed, fully stabilized             7208.40.6030, 7208.40.6060, 7208.53.0000,
                                                  mm or greater, regardless of thickness, and             (commonly referred to as interstitial-free (IF))        7208.54.0000, 7208.90.0000, 7210.70.3000,
                                                  regardless of form of coil (e.g., in                    steels, high strength low alloy (HSLA) steels,          7211.14.0030, 7211.14.0090, 7211.19.1500,
                                                  successively superimposed layers, spirally              the substrate for motor lamination steels,              7211.19.2000, 7211.19.3000, 7211.19.4500,
                                                  oscillating, etc.). The products covered also           Advanced High Strength Steels (AHSS), and               7211.19.6000, 7211.19.7530, 7211.19.7560,
                                                  include products not in coils (e.g., in straight        Ultra High Strength Steels (UHSS). IF steels
                                                                                                                                                                  7211.19.7590, 7225.11.0000, 7225.19.0000,
                                                  lengths) of a thickness of less than 4.75 mm            are recognized as low carbon steels with
                                                                                                          micro-alloying levels of elements such as               7225.30.3050, 7225.30.7000, 7225.40.7000,
                                                  and a width that is 12.7 mm or greater and
                                                  that measures at least 10 times the thickness.          titanium and/or niobium added to stabilize              7225.99.0090, 7226.11.1000, 7226.11.9030,
                                                  The products described above may be                     carbon and nitrogen elements. HSLA steels               7226.11.9060, 7226.19.1000, 7226.19.9000,
                                                  rectangular, square, circular, or other shape           are recognized as steels with micro-alloying            7226.91.5000, 7226.91.7000, and
                                                  and include products of either rectangular or           levels of elements such as chromium, copper,            7226.91.8000. The products subject to the
                                                  non-rectangular cross-section where such                niobium, titanium, vanadium, and                        investigation may also enter under the
                                                  cross-section is achieve subsequent to the              molybdenum. The substrate for motor                     following HTSUS numbers: 7210.90.9000,
                                                  rolling process, i.e., products which have              lamination steels contains micro-alloying               7211.90.0000, 7212.40.1000, 7212.40.5000,
                                                  been ‘‘worked after rolling’’ (e.g., products           levels of elements such as silicon and                  7212.50.0000, 7214.91.0015, 7214.91.0060,
                                                  which have been beveled or rounded at the               aluminum. AHSS and UHSS are considered                  7214.91.0090, 7214.99.0060, 7214.99.0075,
                                                  edges). For purposes of the width and                   high tensile strength and high elongation
                                                                                                                                                                  7214.99.0090, 7215.90.5000, 7226.99.0180,
                                                  thickness requirements referenced above:                steels, although AHSS and UHSS are covered
                                                     (1) Where the nominal and actual                     whether or not they are high tensile strength           and 7228.60.6000.
                                                  measurements vary, a product is within the              or high elongation steels.                                The HTSUS subheadings above are
                                                  scope if application of either the nominal or              Subject merchandise includes hot-rolled              provided for convenience and U.S. Customs
                                                  actual measurement would place it within                steel that has been further processed in a              purposes only. The written description of the
                                                  the scope based on the definitions set forth            third country, including but not limited to             scope of the investigation is dispositive.
                                                  above unless the resulting measurement                  pickling, oiling, levelling, annealing,                 [FR Doc. 2016–00751 Filed 1–14–16; 8:45 am]
                                                  makes the product covered by the existing               tempering, temper rolling, skin passing,
                                                  antidumping 10 or countervailing duty 11                                                                        BILLING CODE 3510–DS–P
                                                                                                          painting, varnishing, trimming, cutting,
                                                  orders on Certain Cut-To-Length Carbon-                 punching, and/or slitting, or any other
                                                  Quality Steel Plate Products From the                   processing that would not otherwise remove
                                                  Republic of Korea (A–580–836; C–580–837),               the merchandise from the scope of the
                                                  and                                                     investigation if performed in the country of
                                                     (2) where the width and thickness vary for           manufacture of the hot-rolled steel.
                                                  a specific product (e.g., the thickness of                 All products that meet the written physical
                                                  certain products with non-rectangular cross-            description, and in which the chemistry
                                                  section, the width of certain products with             quantities do not exceed any one of the noted
                                                  non-rectangular shape, etc.), the                       element levels listed above, are within the
                                                  measurement at its greatest width or                    scope of this investigation unless specifically
                                                  thickness applies.                                      excluded. The following products are outside            percent of phosphorus; (v) not less than 0.18 nor
                                                     Steel products included in the scope of this         of and/or specifically excluded from the                more than 0.37 percent of silicon; (vi) not less than
                                                  investigation are products in which: (1) Iron           scope of this investigation:                            1.25 nor more than 1.65 percent of chromium; (vii)
                                                  predominates, by weight, over each of the                  • Universal mill plates (i.e., hot-rolled,           none, or not more than 0.28 percent of nickel; (viii)
                                                  other contained elements; (2) the carbon                flat-rolled products not in coils that have             none, or not more than 0.38 percent of copper; and
                                                  content is 2 percent or less, by weight; and            been rolled on four faces or in a closed box            (ix) none, or not more than 0.09 percent of
                                                  (3) none of the elements listed below exceeds           pass, of a width exceeding 150 mm but not               molybdenum.
                                                  the quantity, by weight, respectively                   exceeding 1250 mm, of a thickness not less                 14 Tool steels are defined as steels which contain
                                                  indicated:                                              than 4.0 mm, and without patterns in relief);           the following combinations of elements in the
                                                  • 2.50 percent of manganese, or                            • Products that have been cold-rolled                quantity by weight respectively indicated: (i) More
                                                  • 3.30 percent of silicon, or                           (cold-reduced) after hot-rolling; 12                    than 1.2 percent carbon and more than 10.5 percent
                                                  • 1.50 percent of copper, or                               • Ball bearing steels; 13                            chromium; or (ii) not less than 0.3 percent carbon
                                                  • 1.50 percent of aluminum, or                                                                                  and 1.25 percent or more but less than 10.5 percent
                                                                                                             12 For purposes of this scope exclusion, rolling     chromium; or (iii) not less than 0.85 percent carbon
                                                    10 Notice  of Amendment of Final Determinations       operations such as a skin pass, levelling, temper       and 1 percent to 1.8 percent, inclusive, manganese;
                                                  of Sales at Less Than Fair Value and Antidumping        rolling or other minor rolling operations after the     or (iv) 0.9 percent to 1.2 percent, inclusive,
                                                  Duty Orders: Certain Cut-To-Length Carbon-Quality       hot-rolling process for purposes of surface finish,     chromium and 0.9 percent to 1.4 percent, inclusive,
                                                  Steel Plate Products From France, India, Indonesia,     flatness, shape control, or gauge control do not
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                                                                                                                                                                  molybdenum; or (v) not less than 0.5 percent carbon
                                                  Italy, Japan and the Republic of Korea, 65 FR 6585      constitute cold-rolling sufficient to meet this         and not less than 3.5 percent molybdenum; or (vi)
                                                  (February 10, 2000).                                    exclusion.                                              not less than 0.5 percent carbon and not less than
                                                     11 Notice of Amended Final Determinations:              13 Ball bearing steels are defined as steels which
                                                                                                                                                                  5.5 percent tungsten.
                                                  Certain Cut-to-Length Carbon-Quality Steel Plate        contain, in addition to iron, each of the following        15 Silico-manganese steel is defined as steels
                                                  From India and the Republic of Korea; and Notice        elements by weight in the amount specified: (i) Not
                                                  of Countervailing Duty Orders: Certain Cut-To-          less than 0.95 nor more than 1.13 percent of carbon;    containing by weight: (i) Not more than 0.7 percent
                                                  Length Carbon-Quality Steel Plate From France,          (ii) not less than 0.22 nor more than 0.48 percent      of carbon; (ii) 0.5 percent or more but not more than
                                                  India, Indonesia, Italy, and the Republic of Korea,     of manganese; (iii) none, or not more than 0.03         1.9 percent of manganese, and (iii) 0.6 percent or
                                                  65 FR 6587 (February 10, 2000).                         percent of sulfur; (iv) none, or not more than 0.03     more but not more than 2.3 percent of silicon.



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Document Created: 2018-02-02 12:31:50
Document Modified: 2018-02-02 12:31:50
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
DatesEffective date: January 15, 2016.
ContactNicholas Czajkowski or Lana Nigro, 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- 1395 or (202) 482-1779, respectively.
FR Citation81 FR 2168 

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