81 FR 2172 - Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat Products From the Republic of Korea: Preliminary Negative 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 Range2172-2174
FR Document2016-00750

The Department of Commerce (the ``Department'') preliminarily determines that de minimis countervailable subsidies are being provided to producers/exporters of certain hot-rolled steel flat products (``hot-rolled steel'') from the Republic of Korea (``Korea''). 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 2172-2174]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00750]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-884]


Countervailing Duty Investigation of Certain Hot-Rolled Steel 
Flat Products From the Republic of Korea: Preliminary Negative 
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 de minimis countervailable subsidies are being provided 
to producers/exporters of certain hot-rolled steel flat products 
(``hot-rolled steel'') from the Republic of Korea (``Korea''). 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: Katie Marksberry or Bob Palmer, AD/CVD 
Operations, Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-7906 
or (202) 482-9068, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The products covered by this investigation are certain hot-rolled 
steel flat products from Korea. 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 (the ``Act''). For a full description of the methodology 
underlying our preliminary conclusions, see the Preliminary Decision 
Memorandum.\1\ 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 version are identical in content.
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    \1\ 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 Negative Determination: 
Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat 
Products from the Republic of Korea, dated January 8, 2015 
(``Preliminary Decision Memorandum'').
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    The Department notes that, in making this preliminary 
determination, we relied, in part, on facts otherwise available.\2\ For 
further information, see ``Use of Facts Otherwise Available'' in the 
accompanying Preliminary Decision Memorandum.
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    \2\ See section 776(a) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum,\3\ in accordance 
with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigation of hot-rolled 
steel from Korea based on a request made by Petitioners. 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 23, 2016, unless postponed.\4\
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    \3\ See Preliminary Decision Memorandum.
    \4\ We note that the current deadline for the final AD 
determination is May 22, 2016, which is a Sunday. Pursuant to 
Department practice, the signature date will be the next business 
day, which is Monday, March 9, 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 producer/
exporter of the subject merchandise. We preliminarily determine that de 
minimis countervailable subsides are being provided with respect to the 
manufacture, production or exportation of the subject merchandise. 
Consistent with section 703(b)(4)(A) of the Act, we have disregarded de 
minimis rates. Consistent with section 703(d) of the Act, we have not 
calculated an all-others rate because we have not reached an 
affirmative preliminarily

[[Page 2173]]

determination. We preliminarily determine the countervailable subsidy 
rates to be:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
------------------------------------------------------------------------
POSCO and Daewoo International Corporation..................        0.17
Hyundai Steel Co., Ltd......................................        0.63
------------------------------------------------------------------------
Percent (de minimis).

    Because we preliminarily determine that the CVD rates in this 
investigation are de minimis, we will not direct U.S. Customs and 
Border Protection (``CBP'') to suspend liquidation of entries of 
subject merchandise.

Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the 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)(3) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 75 days after the Department makes its final determination.

Disclosure and Public Comment

    The Department intends to disclose to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement.\5\ 
Interested parties may submit case and rebuttal briefs, as well as 
request a hearing.\6\ For a schedule of the deadlines for filing case 
briefs, rebuttal briefs, and hearing requests, see the Preliminary 
Decision Memorandum.
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    \5\ See 19 CFR 351.224(b).
    \6\ 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. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Use of Facts Otherwise Available
VII. Subsidies Valuation
VIII. Analysis of Programs
IX. Disclosure and Public Comment
X. 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 \7\ or countervailing duty \8\ 
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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    \7\ See 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).
    \8\ See 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 investigations 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 these 
investigations 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);

[[Page 2174]]

     Products that have been cold-rolled (cold-reduced) 
after hot-rolling; \9\
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    \9\ 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.
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     Ball bearing steels; \10\
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    \10\ 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; \11\ and
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    \11\ 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; \12\
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    \12\ 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. 2016-00750 Filed 1-14-16; 8:45 am]
 BILLING CODE 3510-DS-P


Current View
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.
ContactKatie Marksberry or Bob Palmer, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-7906 or (202) 482-9068, respectively.
FR Citation81 FR 2172 

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