81 FR 35313 - Certain Corrosion-Resistant Steel Products From Taiwan: Final Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 106 (June 2, 2016)

The Department of Commerce (``Department'') determines that certain corrosion-resistant steel products (``corrosion-resistant steel'') from Taiwan are being, or are likely to be, sold in the United States at less than fair value (``LTFV''), as provided in section 735(a) of the Tariff Act of 1930, as amended (``the Act''). The period of investigation (``POI'') is April 1, 2014, through March 31, 2015. The final dumping margins of sales at LTFV are listed below in the ``Final Determination'' section of this notice.

[Federal Register Volume 81, Number 106 (Thursday, June 2, 2016)]
[Notices]
[Pages 35313-35316]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-12975]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-856]


Certain Corrosion-Resistant Steel Products From Taiwan: Final 
Determination of Sales at Less Than Fair Value and Final Affirmative 
Determination of Critical Circumstances, in Part

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

SUMMARY: The Department of Commerce (``Department'') determines that 
certain corrosion-resistant steel products (``corrosion-resistant 
steel'') from Taiwan are being, or are likely to be, sold in the United 
States at less than fair value (``LTFV''), as provided in section 
735(a) of the Tariff Act of 1930, as amended (``the Act''). The period 
of investigation (``POI'') is April 1, 2014, through March 31, 2015. 
The final dumping margins of sales at LTFV are listed below in the 
``Final Determination'' section of this notice.

DATES:  Effective Date: June 2, 2016.

FOR FURTHER INFORMATION CONTACT: Shanah Lee or Paul Stolz, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
6386 or (202) 482-4474, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On January 4, 2016, the Department published the Preliminary 
Determination of this antidumping duty (``AD'') investigation and 
invited parties to comment.\1\ As provided in section 782(i) of the 
Act, in January and April 2016, the Department verified the sales and 
cost data reported by Prosperity Tieh Enterprise Co., Ltd. (``PT''), 
Yieh Phui Enterprise Co., Ltd. (``YP''), and Synn Industrial Co., Ltd. 
(``Synn''). In April 2016, Petitioner,\2\ YP, and PT submitted case 
briefs and rebuttal briefs. For a complete discussion of the events 
that occurred since the Preliminary Determination, see the Issues and 
Decision Memorandum.\3\
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    \1\ See Certain Corrosion-Resistant Steel Products from Taiwan: 
Negative Preliminary Determination of Sales at Less Than Fair Value, 
81 FR 72 (January 4, 2016) (``Preliminary Determination''). See also 
Antidumping Duty Investigations of Corrosion-Resistant Steel 
Products from India, Italy, the People's Republic of China, the 
Republic of Korea, and Taiwan: Notice of Correction to Preliminary 
Antidumping Determinations, 81 FR 6236 (February 5, 2016) (``Scope 
Correction Notice'').
    \2\ Petitioners are United States Steel Corporation, Nucor 
Corporation, ArcelorMittal USA, AK Steel Corporation, Steel 
Dynamics, Inc., and California Steel Industries, Inc. AK Steel 
Corporation was the only Petitioner to file comments in this case.
    \3\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Issues and Decision Memorandum for the Final Determination in the 
Antidumping Duty Investigation of Certain Corrosion-Resistant Steel 
Products from Taiwan,'' dated concurrently with this notice 
(``Issues and Decision Memorandum'').
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    Also, as explained in the memorandum from the Acting Assistant 
Secretary for Enforcement and Compliance, the Department exercised its 
authority to toll all administrative deadlines due to the recent 
closure of the Federal Government.\4\ As a consequence, all deadlines 
in this segment of the proceeding have been extended by four business 
days. The revised deadline for the final determination is now May 24, 
2016.
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    \4\ See Memorandum to the File from Ron Lorentzen, Acting A/S 
for Enforcement & Compliance, ``Tolling of Administrative Deadlines 
As a Result of the Government Closure During Snowstorm Jonas'' dated 
January 27, 2016.
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Scope of the Investigation

    The product covered by this investigation is corrosion-resistant 
steel from Taiwan. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix II 
of this notice.

Scope Comments

    In accordance with the Preliminary Scope Determination,\5\ the 
Department set aside a period of time for parties to address scope 
issues in case briefs or other written comments on scope issues.
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    \5\ See Memorandum to Gary Taverman, Associate Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Certain Corrosion-Resistant Steel Products From the People's 
Republic of China, India, Italy, the Republic of Korea, and Taiwan: 
Scope Comments Decision Memorandum for the Preliminary 
Determinations,'' dated December 21, 2015 (``Preliminary Scope 
Decision Memorandum''). See also Memorandum to the File, ``Certain 
Corrosion-Resistant Steel Products From the People's Republic of 
China, India, Italy, the Republic of Korea, and Taiwan: Correction 
to Preliminary Determination Scope Memorandum,'' dated January 29, 
2016.
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    For a summary of the product coverage comments and rebuttal

[[Page 35314]]

responses submitted to the record of this final determination, and 
accompanying discussion and analysis of all comments timely received, 
see the Final Scope Decision Memorandum.\6\ The Final Scope Decision 
Memorandum is incorporated by, and hereby adopted by, this notice.
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    \6\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Scope Comments Decision Memorandum for the Final Determinations,'' 
dated concurrently with this notice.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum, 
which is incorporated by reference and hereby adopted by this notice. A 
list of the issues raised is attached to this notice as Appendix I. The 
Issues and Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (``ACCESS''). 
ACCESS is available to registered users at https://access.trade.gov and 
it is available to all parties in the Central Records Unit, room B-8024 
of the main Department of Commerce building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/index.html. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations. For a 
discussion of these changes, see the Issues and Decision Memorandum. We 
have also revised the all-others rate.

Final Determination of Affiliation and Collapsing

    We continue to find that YP and Synn are affiliated pursuant to 
section 771(33)(E) of the Act and should be collapsed together and 
treated as a single company, pursuant to the criteria laid out in 19 
CFR 351.401(f).\7\ Additionally, for these final results, we have 
determined that PT is also affiliated with Synn, pursuant to section 
771(33)(E) of the Act \8\ and the three companies should be collapsed 
together and treated as a single company (collectively, ``PT/YP/
Synn''), pursuant to the criteria laid out in 19 CFR 351.401(f).\9\
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    \7\ See Preliminary Determination, 81 FR at 73 and Memorandum to 
Erin Begnal, Director, Office III, ``Less Than Fair Value 
Investigation of Certain Corrosion-Resistant Steel Products from 
Taiwan: Preliminary Affiliation and Collapsing Memorandum for Yieh 
Phui Enterprise Co., Ltd.,'' dated December 21, 2015. See also 
Issues and Decision Memorandum at Comment 3.
    \8\ We have also determined that PT and YP are affiliated under 
section 771(33)(A) of the Act.
    \9\ See Memorandum to Eric Greynolds, Acting Director, Office 
III, ``Less Than Fair Value Investigation of Certain Corrosion-
Resistant Steel Products from Taiwan: Final Affiliation and 
Collapsing Memorandum,'' dated concurrently with this notice. See 
also Issues and Decision Memorandum at Comment 3.
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All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated all-
others rate shall be an amount equal to the weighted-average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated excluding any zero or de 
minimis margins, and margins determined entirely under section 776 of 
the Act. In this case, we found the mandatory respondents to be 
collapsed as a single company, PT/YP/Synn, whose margin is calculated 
from its own sales and production data and which is not zero or de 
minimis or based entirely on facts available. Therefore, we are 
assigning PT/YP/Synn's calculated margin as the all-others rate in 
accordance with section 735(c)(5)(A) of the Act.

Final Determination

    The Department determines that the final weighted-average dumping 
margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/producer                         margin
                                                               (percent)
------------------------------------------------------------------------
Prosperity Tieh Enterprise Co., Ltd., Yieh Phui Enterprise          3.77
 Co., Ltd., and Synn Industrial Co., Ltd. (collectively,
 ``PT/YP/Synn'')............................................
All-Others..................................................        3.77
------------------------------------------------------------------------

Disclosure

    We intend to disclose the calculations performed within five days 
of the publication of this notice to interested parties, in accordance 
with 19 CFR 351.224(b).

Final Affirmative Determination of Critical Circumstances, in Part

    On October 29, 2015, the Department found that critical 
circumstances do not exist for merchandise exported by PT and YP, but 
do exist for ``all others.'' \10\ Based on the final sales data 
submitted by PT/YP/Synn and further analysis following the Preliminary 
Critical Circumstances Determination, we are not modifying our findings 
for the final determination.\11\ We continue to find that critical 
circumstances do not exist for PT/YP/Synn, but that critical 
circumstances do exist for the ``all others.'' For a complete 
discussion of this issue, see the ``Final Determination of Critical 
Circumstances, In Part'' section of the Issues and Decision Memorandum.
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    \10\ See Antidumping and Countervailing Duty Investigations of 
Corrosion-Resistant Steel Products from India, Italy, the People's 
Republic of China, the Republic of Korea, and Taiwan: Preliminary 
Determination of Critical Circumstances, 80 FR 68504, (November 5, 
2015) (``Preliminary Critical Circumstances Determination'').
    \11\ As explained in the Issues and Decision Memorandum, 
however, YP did not report sales for December 2015. We have used the 
highest total reported export figure for a single month for YP and 
PT as adverse facts available for December 2015. Even with this 
adverse facts assumption, we still find that PT/YP/Synn, which are 
collapsed together, did not have massive imports in the comparison 
period.
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Suspension of Liquidation

    In accordance with section 735(c)(1)(B) and (C) of the Act, the 
Department will instruct U.S. Customs and Border Protection (``CBP'') 
to suspend liquidation of all entries of corrosion-resistant steel from 
Taiwan, as described in Appendix II of this notice, which were entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of the final determination. Because of our affirmative 
determination of critical circumstances for ``all others,'' in 
accordance with section 735(a)(3) and (c)(4)(C) of the Act, suspension 
of liquidation of corrosion-resistant steel from Taiwan, as described 
in the ``Scope of the Investigation'' section, shall apply, for ``all 
others,'' 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 for ``all others.''
    Further, CBP shall require a cash deposit equal to the estimated 
amount by which the normal value exceeds the U.S. price, as follows: 
(1) For the exporters/producers listed in the table above, the cash 
deposit rates will be equal to the dumping margin which the Department 
determined in this final determination; \12\ (2) if the exporter is

[[Page 35315]]

not a firm identified in this investigation but the producer is, the 
rate will be the rate established for the producer of the subject 
merchandise; (3) the rate for all other producers or exporters will be 
3.77 percent. These instructions suspending liquidation will remain in 
effect until further notice.
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    \12\ Because the Department is making a negative determination 
in the companion countervailing duty (``CVD'') investigation of 
corrosion-resistant steel from Taiwan, we are not adjusting the cash 
deposit rate for export subsidies given that there will be no cash 
deposit rates collected in the companion CVD investigation. See 
section 772(c)(1)(C) of the Act.
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ITC Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of the final affirmative determination of sales at LTFV. Because 
the final determination in this proceeding is affirmative, in 
accordance with section 735(b)(2) of the Act, the ITC will make its 
final determination as to whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of corrosion-resistant steel from Taiwan no later 
than 45 days after our final determination. If the ITC determines that 
material injury or threat of material injury does not exist, the 
proceeding will be terminated and all cash deposits will be refunded. 
If the ITC determines that such injury does exist, the Department will 
issue an antidumping duty order directing CBP to assess, upon further 
instruction by the Department, antidumping duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding Administrative Protective Orders (``APO'')

    This notice serves as a reminder to parties subject to APO of their 
responsibility concerning the disposition of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and the terms of an APO is a violation 
subject to sanction.
    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.

    Dated: May 24, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Final Determination of Critical Circumstances, in Part
V. List of Comments
VI. Discussion of the Issues
    Comment 1: Whether To Apply AFA to PT's and Synn's Misclassified 
Sales
    Comment 2: Whether To Disregard YP/Synn's Home-Market Rebates
    Comment 3: Whether To Continue to Collapse YP and Synn for the 
Final Determination and Whether to Also Collapse YP/Synn with PT
    Comment 4: Whether To Adjust YP's Coil Costs
    Comment 5: Whether To Offset YP's G&A Expenses for Insurance 
Proceeds
    Comment 6: Whether To Offset PT's G&A Expense Ratio by Including 
Additional Non-operating Income Items
VII. Recommendation

Attachment II--Scope of the Investigation

    The products covered by this investigation are certain flat-
rolled steel products, either clad, plated, or coated with 
corrosion-resistant metals such as zinc, aluminum, or zinc-, 
aluminum-, nickel- or iron-based alloys, whether or not corrugated 
or painted, varnished, laminated, or coated with plastics or other 
non-metallic substances in addition to the metallic coating. The 
products covered include coils that have a width of 12.7 mm or 
greater, regardless of form of coil (e.g., in successively 
superimposed layers, spirally oscillating, etc.). The products 
covered also include products not in coils (e.g., in straight 
lengths) of a thickness less than 4.75 mm and a width that is 12.7 
mm or greater and that measures at least 10 times the thickness. The 
products covered also include products not in coils (e.g., in 
straight lengths) of a thickness of 4.75 mm or more and a width 
exceeding 150 mm and measuring at least twice the thickness. The 
products described above may be rectangular, square, circular, or 
other shape and include products of either rectangular or non-
rectangular cross-section where such cross-section is achieved 
subsequent to the rolling process, i.e., products which have been 
``worked after rolling'' (e.g., products which have been beveled or 
rounded at the edges). For purposes of the width and thickness 
requirements referenced above:
    (1) Where the nominal and actual measurements vary, a product is 
within the scope if application of either the nominal or actual 
measurement would place it within the scope based on the definitions 
set forth above, and
    (2) where the width and thickness vary for a specific product 
(e.g., the thickness of certain products with non-rectangular cross-
section, the width of certain products with non-rectangular shape, 
etc.), the measurement at its greatest width or thickness applies.
    Steel products included in the scope of this investigation are 
products in which: (1) Iron predominates, by weight, over each of 
the other contained elements; (2) the carbon content is 2 percent or 
less, by weight; and (3) none of the elements listed below exceeds 
the quantity, by weight, respectively indicated:

 2.50 percent of manganese, or
 3.30 percent of silicon, or
 1.50 percent of copper, or
 1.50 percent of aluminum, or
 1.25 percent of chromium, or
 0.30 percent of cobalt, or
 0.40 percent of lead, or
 2.00 percent of nickel, or
 0.30 percent of tungsten (also called wolfram), or
 0.80 percent of molybdenum, or
 0.10 percent of niobium (also called columbium), or
 0.30 percent of vanadium, or
 0.30 percent of zirconium

    Unless specifically excluded, products are included in this 
scope regardless of levels of boron and titanium.
    For example, specifically included in this scope are vacuum 
degassed, fully stabilized (commonly referred to as interstitial-
free (``IF'')) steels and high strength low alloy (``HSLA'') steels. 
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.
    Furthermore, this scope also includes Advanced High Strength 
Steels (``AHSS'') and Ultra High Strength Steels (``UHSS''), both of 
which are considered high tensile strength and high elongation 
steels.
    Subject merchandise also includes corrosion-resistant steel that 
has been further processed in a third country, including but not 
limited to annealing, tempering, painting, varnishing, trimming, 
cutting, punching and/or slitting or any other processing that would 
not otherwise remove the merchandise from the scope of the 
investigation if performed in the country of manufacture of the in-
scope corrosion resistant 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:
     Flat-rolled steel products either plated or coated with 
tin, lead, chromium, chromium oxides, both tin and lead (``terne 
plate''), or both chromium and chromium oxides (``tin free steel''), 
whether or not painted, varnished or coated with plastics or other 
non-metallic substances in addition to the metallic coating;
     Clad products in straight lengths of 4.7625 mm or more 
in composite thickness and of a width which exceeds 150 mm and 
measures at least twice the thickness; and
     Certain clad stainless flat-rolled products, which are 
three-layered corrosion-resistant flat-rolled steel products less 
than 4.75 mm in composite thickness that consist of a flat-rolled 
steel product clad on both sides with stainless steel in a 20%-60%-
20% ratio.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(``HTSUS'') under item numbers: 7210.30.0030, 7210.30.0060, 
7210.41.0000, 7210.49.0030, 7210.49.0091, 7210.49.0095, 
7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 
7210.70.6090, 7210.90.6000,

[[Page 35316]]

7210.90.9000, 7212.20.0000, 7212.30.1030, 7212.30.1090, 
7212.30.3000, 7212.30.5000, 7212.40.1000, 7212.40.5000, 
7212.50.0000, and 7212.60.0000.
    The products subject to the investigation may also enter under 
the following HTSUS item numbers: 7210.90.1000, 7215.90.1000, 
7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530, 
7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060, 
7217.90.5090, 7225.91.0000, 7225.92.0000, 7225.99.0090, 
7226.99.0110, 7226.99.0130, 7226.99.0180, 7228.60.6000, 
7228.60.8000, and 7229.90.1000.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

[FR Doc. 2016-12975 Filed 6-1-16; 8:45 am]
 BILLING CODE 3510-DS-P