81_FR_46780 81 FR 46643 - Countervailing Duty Investigation of Stainless Steel Sheet and Strip From the People's Republic of China: Preliminary Affirmative Determination and Alignment of Final Determination With Final Antidumping Duty Determination

81 FR 46643 - Countervailing Duty Investigation of Stainless Steel Sheet and Strip From the People's Republic of China: Preliminary Affirmative Determination and Alignment of Final Determination With Final Antidumping Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 137 (July 18, 2016)

Page Range46643-46645
FR Document2016-16947

The Department of Commerce (the Department) preliminarily determines that countervailable subsidies are being provided to producers and exporters of stainless steel sheet and strip (stainless sheet and strip) from the People's Republic of China (PRC). The period of investigation is January 1, 2015, through December 31, 2015. We invite interested parties to comment on this preliminary determination.

Federal Register, Volume 81 Issue 137 (Monday, July 18, 2016)
[Federal Register Volume 81, Number 137 (Monday, July 18, 2016)]
[Notices]
[Pages 46643-46645]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16947]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-043]


Countervailing Duty Investigation of Stainless Steel Sheet and 
Strip From the People's Republic of China: 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 stainless steel sheet and strip (stainless 
sheet and strip) from the People's Republic of China (PRC). The period 
of investigation is January 1, 2015, through December 31, 2015. We 
invite interested parties to comment on this preliminary determination.

DATES: Effective July 18, 2016.

FOR FURTHER INFORMATION CONTACT: Emily Halle, AD/CVD Operations, Office 
VII, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone (202) 482-0176.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The products covered by this investigation are stainless sheet and 
strip from the PRC. 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 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 version are 
identical in content.
---------------------------------------------------------------------------

    \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, ``Decision Memorandum for the Preliminary 
Affirmative Determination: Countervailing Duty Investigation of 
Stainless Steel Sheet and Strip From the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
---------------------------------------------------------------------------

    The Department notes that, in making these findings, we relied, in 
part, on facts available and, because we find that one or more 
respondents did not act to the best of their ability to respond to the 
Department's requests for information, we drew an adverse inference 
where appropriate in selecting from among the facts otherwise 
available.\3\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
---------------------------------------------------------------------------

    \3\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

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 CVD determination in this investigation with the final 
determination in the companion antidumping duty (AD) investigation of 
stainless sheet and strip from the PRC 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 November 23, 2016, 
unless postponed.
---------------------------------------------------------------------------

    \4\ See Letter from Petitioners, ``Countervailing Duty 
Investigation of Stainless Steel Sheet and Strip from the People's 
Republic of China--Petitioners' Request to Align the Countervailing 
Duty Final Determination with the Companion Antidumping Duty Final 
Determination,'' June 24, 2016.
---------------------------------------------------------------------------

Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated an individual estimated countervailable subsidy rate for 
Shanxi Taigang Stainless Steel Co. Ltd. (Taigang), the only 
cooperating, individually-investigated exporter/producer. Additionally, 
in accordance with sections 703(d) and 705(c)(5)(A) of the Act, for 
companies not individually investigated, we apply an ``all-others'' 
rate, which is normally calculated by weight averaging the subsidy 
rates of the companies selected for individual investigation by those 
companies' exports of the subject merchandise to the United States. 
However, under section 705(c)(5)(A)(i) of the Act, the all-others rate 
excludes zero and de minimis rates calculated for the exporters and 
producers individually investigated, as well as rates based entirely on 
facts otherwise available. Therefore, we have excluded the rates based 
entirely on facts otherwise available assigned to Ningbo Baoxin 
Stainless Steel Co., Ltd. (Ningbo Baoxin) and Daming International 
Import Export Co. Ltd. (Daming) from the all-others rate. Because the 
only individually calculated rate that is not zero, de minimis, or 
based on facts otherwise available is the rate calculated for Taigang, 
in accordance with section 705(c)(5)(A)(i) of the Act, the rate 
calculated for Taigang is preliminarily assigned as the all-others 
rate. The preliminary estimated countervailable subsidy rates are 
summarized in the table below.

[[Page 46644]]



------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Shanxi Taigang Stainless Steel Co. Ltd..................           57.30
Ningbo Baoxin Stainless Steel Co., Ltd., Baosteel                 193.12
 Stainless Steel Co. Ltd., Baoshan Iron & Steel Co.,
 Ltd., Baosteel Desheng Stainless Steel Co., Ltd.,
 Baosteel Co., Ltd., Bayi Iron & Steel Co., Ltd., Ningbo
 Iron & Steel Co., Ltd., Shaoguan Iron & Steel Co.,
 Ltd., Guangdong Shaoguan Iron & Steel Co., Ltd., and
 Zhanjiang Iron & Steel Co., Ltd........................
Daming International Import Export Co. Ltd. and Tianjin           193.12
 Taigang Daming Metal Product Co., Ltd..................
All-Others..............................................           57.30
------------------------------------------------------------------------

    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 stainless sheet and strip from the PRC as described in the 
``Scope of the Investigation. Pursuant to 19 CFR 351.205(d), the 
Department will instruct CBP to require a cash deposit equal to the 
rests indicated above. 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 
June 27, 2016, we preliminarily found that critical circumstances exist 
for imports produced or exported by Taigang, Ningbo Baoxin, Daming, and 
all-other exporters or producers.\5\ Accordingly, for these companies, 
in accordance with section 703(e)(2)(A) of the Act, suspension of 
liquidation of stainless sheet and strip from the PRC, as described in 
the ``Scope of the Investigation,'' 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.
---------------------------------------------------------------------------

    \5\ See Countervailing Duty Investigation of Stainless Steel 
Sheet and Strip From the People's Republic of China: Preliminary 
Determination of Critical Circumstances, 81 FR 41519 (June 27, 
2016).
---------------------------------------------------------------------------

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.\6\ 
Interested parties may submit case and rebuttal briefs, as well as 
request a hearing.\7\ For a schedule of the deadlines for filing case 
briefs, rebuttal briefs, and hearing requests, see the Preliminary 
Decision Memorandum.
---------------------------------------------------------------------------

    \6\ See 19 CFR 351.224(b).
    \7\ See 19 CFR 351.309(c)-(d), 19 CFR 351.310(c).
---------------------------------------------------------------------------

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: July 11, 2016.
Ronald K. Lorentzen,
Acting 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. Preliminary Determination of Critical Circumstances
VI. Injury Test
VII. Application of the CVD Law to Imports From the PRC
VIII. Alignment
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Subsidies Valuation
XI. Benchmarks and Interest Rates
XII. Analysis of Programs
XIII. Disclosure and Public Comment
XIV. Conclusion

Appendix II

Scope of the Investigation

    The merchandise covered by this investigation is stainless steel 
sheet and strip, whether in coils or straight lengths. Stainless 
steel is an alloy steel containing, by weight, 1.2 percent or less 
of carbon and 10.5 percent or more of chromium, with or without 
other elements. The subject sheet and strip is a flat-rolled product 
with a width that is greater than 9.5 mm and with a thickness of 
0.3048 mm and greater but less than 4.75 mm, and that is annealed or 
otherwise heat treated, and pickled or otherwise descaled. The 
subject sheet and strip may also be further processed (e.g., cold-
rolled, annealed, tempered, polished, aluminized, coated, painted, 
varnished, trimmed, cut, punched, or slit, etc.) provided that it 
maintains the specific dimensions of sheet and strip set forth above 
following such processing. The products described include products 
regardless of 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.
    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.
    Subject merchandise includes stainless steel sheet and strip 
that has been further processed in a third country, including but 
not limited to cold-rolling, annealing, tempering, polishing, 
aluminizing, coating, 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 stainless steel 
sheet and strip.

[[Page 46645]]

    Excluded from the scope of this investigation are the following: 
(1) Sheet and strip that is not annealed or otherwise heat treated 
and not pickled or otherwise descaled; (2) plate (i.e., flat-rolled 
stainless steel products of a thickness of 4.75 mm or more); and (3) 
flat wire (i.e., cold-rolled sections, with a mill edge, rectangular 
in shape, of a width of not more than 9.5 mm).
    The products under investigation are currently classifiable 
under Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings 7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.13.0081, 
7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.23.0030, 
7219.23.0060, 7219.24.0030, 7219.24.0060, 7219.32.0005, 
7219.32.0020, 7219.32.0025, 7219.32.0035, 7219.32.0036, 
7219.32.0038, 7219.32.0042, 7219.32.0044, 7219.32.0045, 
7219.32.0060, 7219.33.0005, 7219.33.0020, 7219.33.0025, 
7219.33.0035, 7219.33.0036, 7219.33.0038, 7219.33.0042, 
7219.33.0044, 7219.33.0045, 7219.33.0070, 7219.33.0080, 
7219.34.0005, 7219.34.0020, 7219.34.0025, 7219.34.0030, 
7219.34.0035, 7219.34.0050, 7219.35.0005, 7219.35.0015, 
7219.35.0030, 7219.35.0035, 7219.35.0050, 7219.90.0010, 
7219.90.0020, 7219.90.0025, 7219.90.0060, 7219.90.0080, 
7220.12.1000, 7220.12.5000, 7220.20.1010, 7220.20.1015, 
7220.20.1060, 7220.20.1080, 7220.20.6005, 7220.20.6010, 
7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 
7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 
7220.90.0010, 7220.90.0015, 7220.90.0060, and 7220.90.0080. Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this proceeding is 
dispositive.

[FR Doc. 2016-16947 Filed 7-15-16; 8:45 am]
BILLING CODE 3510-DS-P



                                                                                    Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices                                                      46643

                                                    18, 2016). The FTZ Board has                             Methodology                                            section 705(a)(1) of the Act and 19 CFR
                                                    determined that further review of part of                   The Department is conducting this                   351.210(b)(4), we are aligning the final
                                                    the proposed activity is warranted at                    countervailing duty (CVD) investigation                CVD determination in this investigation
                                                    this time. The production activity                       in accordance with section 701 of the                  with the final determination in the
                                                    described in the notification is                         Tariff Act of 1930, as amended (the Act).              companion antidumping duty (AD)
                                                    authorized on a limited basis, subject to                For each of the subsidy programs found                 investigation of stainless sheet and strip
                                                    the FTZ Act and the Board’s regulations,                 countervailable, we preliminarily                      from the PRC based on a request made
                                                    including Section 400.14, and further                    determine that there is a subsidy, i.e., a             by Petitioners.4 Consequently, the final
                                                    subject to a restriction requiring                       financial contribution by an ‘‘authority’’             CVD determination will be issued on
                                                    admission of foreign-status upholstery                   that gives rise to a benefit to the                    the same date as the final AD
                                                    leather in privileged foreign status (19                 recipient, and that the subsidy is                     determination, which is currently
                                                    CFR 146.41).
                                                                                                             specific.1 For a full description of the               scheduled to be issued no later than
                                                      Dated: July 5, 2016.                                   methodology underlying our                             November 23, 2016, unless postponed.
                                                    Andrew McGilvray,                                        preliminary conclusions, see the
                                                    Executive Secretary.                                     Preliminary Decision Memorandum.2 A                    Preliminary Determination and
                                                    [FR Doc. 2016–16371 Filed 7–15–16; 8:45 am]              list of topics discussed in the                        Suspension of Liquidation
                                                    BILLING CODE 3510–DS–P                                   Preliminary Decision Memorandum is
                                                                                                                                                                      In accordance with section
                                                                                                             included as Appendix I to this notice.
                                                                                                                                                                    703(d)(1)(A)(i) of the Act, we calculated
                                                                                                             The Preliminary Decision Memorandum
                                                    DEPARTMENT OF COMMERCE                                   is a public document and is on file                    an individual estimated countervailable
                                                                                                             electronically via Enforcement and                     subsidy rate for Shanxi Taigang
                                                    International Trade Administration                       Compliance’s Antidumping and                           Stainless Steel Co. Ltd. (Taigang), the
                                                                                                             Countervailing Duty Centralized                        only cooperating, individually-
                                                    [C–570–043]
                                                                                                             Electronic Service System (ACCESS).                    investigated exporter/producer.
                                                    Countervailing Duty Investigation of                     ACCESS is available to registered users                Additionally, in accordance with
                                                    Stainless Steel Sheet and Strip From                     at http://access.trade.gov, and is                     sections 703(d) and 705(c)(5)(A) of the
                                                    the People’s Republic of China:                          available to all parties in the Central                Act, for companies not individually
                                                    Preliminary Affirmative Determination                    Records Unit, Room B8024 of the main                   investigated, we apply an ‘‘all-others’’
                                                    and Alignment of Final Determination                     Department of Commerce building. In                    rate, which is normally calculated by
                                                    With Final Antidumping Duty                              addition, a complete version of the                    weight averaging the subsidy rates of the
                                                    Determination                                            Preliminary Decision Memorandum can                    companies selected for individual
                                                                                                             be accessed directly at http://                        investigation by those companies’
                                                    AGENCY:   Enforcement and Compliance,
                                                                                                             enforcement.trade.gov/frn/. The signed                 exports of the subject merchandise to
                                                    International Trade Administration,
                                                    Department of Commerce.                                  Preliminary Decision Memorandum and                    the United States. However, under
                                                                                                             the electronic version are identical in                section 705(c)(5)(A)(i) of the Act, the all-
                                                    SUMMARY: The Department of Commerce
                                                                                                             content.                                               others rate excludes zero and de
                                                    (the Department) preliminarily                              The Department notes that, in making                minimis rates calculated for the
                                                    determines that countervailable                          these findings, we relied, in part, on
                                                    subsidies are being provided to                                                                                 exporters and producers individually
                                                                                                             facts available and, because we find that              investigated, as well as rates based
                                                    producers and exporters of stainless
                                                                                                             one or more respondents did not act to                 entirely on facts otherwise available.
                                                    steel sheet and strip (stainless sheet and
                                                                                                             the best of their ability to respond to the            Therefore, we have excluded the rates
                                                    strip) from the People’s Republic of
                                                                                                             Department’s requests for information,                 based entirely on facts otherwise
                                                    China (PRC). The period of investigation
                                                                                                             we drew an adverse inference where                     available assigned to Ningbo Baoxin
                                                    is January 1, 2015, through December
                                                                                                             appropriate in selecting from among the                Stainless Steel Co., Ltd. (Ningbo Baoxin)
                                                    31, 2015. We invite interested parties to
                                                                                                             facts otherwise available.3 For further                and Daming International Import Export
                                                    comment on this preliminary
                                                                                                             information, see ‘‘Use of Facts                        Co. Ltd. (Daming) from the all-others
                                                    determination.
                                                                                                             Otherwise Available and Adverse                        rate. Because the only individually
                                                    DATES: Effective July 18, 2016.                          Inferences’’ in the Preliminary Decision               calculated rate that is not zero, de
                                                    FOR FURTHER INFORMATION CONTACT:                         Memorandum.
                                                    Emily Halle, AD/CVD Operations, Office                                                                          minimis, or based on facts otherwise
                                                    VII, Enforcement and Compliance,                         Alignment                                              available is the rate calculated for
                                                    International Trade Administration,                       As noted in the Preliminary Decision                  Taigang, in accordance with section
                                                    U.S. Department of Commerce, 14th                        Memorandum, in accordance with                         705(c)(5)(A)(i) of the Act, the rate
                                                    Street and Constitution Avenue NW.,                                                                             calculated for Taigang is preliminarily
                                                    Washington, DC 20230; telephone (202)                      1 See sections 771(5)(B) and (D) of the Act          assigned as the all-others rate. The
                                                    482–0176.                                                regarding financial contribution; section 771(5)(E)    preliminary estimated countervailable
                                                                                                             of the Act regarding benefit; and section 771(5A) of   subsidy rates are summarized in the
                                                    SUPPLEMENTARY INFORMATION:                               the Act regarding specificity.
                                                                                                               2 See Memorandum, ‘‘Decision Memorandum for          table below.
                                                    Scope of the Investigation                               the Preliminary Affirmative Determination:
                                                                                                                                                                       4 See Letter from Petitioners, ‘‘Countervailing
                                                       The products covered by this                          Countervailing Duty Investigation of Stainless Steel
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                             Sheet and Strip From the People’s Republic of          Duty Investigation of Stainless Steel Sheet and Strip
                                                    investigation are stainless sheet and
                                                                                                             China,’’ dated concurrently with, and hereby           from the People’s Republic of China—Petitioners’
                                                    strip from the PRC. For a complete                       adopted by, this notice (Preliminary Decision          Request to Align the Countervailing Duty Final
                                                    description of the scope of this                         Memorandum).                                           Determination with the Companion Antidumping
                                                    investigation, see Appendix II.                            3 See sections 776(a) and (b) of the Act.            Duty Final Determination,’’ June 24, 2016.




                                               VerDate Sep<11>2014   17:52 Jul 15, 2016   Jkt 238001   PO 00000   Frm 00004   Fmt 4703   Sfmt 4703   E:\FR\FM\18JYN1.SGM   18JYN1


                                                    46644                                       Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices

                                                                                                                                                                                                                                                               Subsidy rate
                                                                                                                                                Company                                                                                                         (percent)

                                                    Shanxi Taigang Stainless Steel Co. Ltd ..............................................................................................................................................                             57.30
                                                    Ningbo Baoxin Stainless Steel Co., Ltd., Baosteel Stainless Steel Co. Ltd., Baoshan Iron & Steel Co., Ltd., Baosteel Desheng
                                                       Stainless Steel Co., Ltd., Baosteel Co., Ltd., Bayi Iron & Steel Co., Ltd., Ningbo Iron & Steel Co., Ltd., Shaoguan Iron & Steel
                                                       Co., Ltd., Guangdong Shaoguan Iron & Steel Co., Ltd., and Zhanjiang Iron & Steel Co., Ltd ......................................................                                                              193.12
                                                    Daming International Import Export Co. Ltd. and Tianjin Taigang Daming Metal Product Co., Ltd ..................................................                                                                 193.12
                                                    All-Others .............................................................................................................................................................................................          57.30



                                                       In accordance with section 703(d)(2)                                     privileged and non-proprietary                                               XII. Analysis of Programs
                                                    of the Act, we will direct U.S. Customs                                     information relating to this                                                 XIII. Disclosure and Public Comment
                                                    and Border Protection (CBP) to suspend                                      investigation. We will allow the ITC                                         XIV. Conclusion
                                                    liquidation of all entries of stainless                                     access to all privileged and business                                        Appendix II
                                                    sheet and strip from the PRC as                                             proprietary information in our files,
                                                    described in the ‘‘Scope of the                                                                                                                          Scope of the Investigation
                                                                                                                                provided the ITC confirms that it will
                                                    Investigation. Pursuant to 19 CFR                                           not disclose such information, either                                           The merchandise covered by this
                                                    351.205(d), the Department will instruct                                    publicly or under an administrative                                          investigation is stainless steel sheet and strip,
                                                                                                                                                                                                             whether in coils or straight lengths. Stainless
                                                    CBP to require a cash deposit equal to                                      protective order, without the written                                        steel is an alloy steel containing, by weight,
                                                    the rests indicated above. Section                                          consent of the Assistant Secretary for                                       1.2 percent or less of carbon and 10.5 percent
                                                    703(e)(2) of the Act provides that, given                                   Enforcement and Compliance.                                                  or more of chromium, with or without other
                                                    an affirmative determination of critical                                       In accordance with section 705(b)(2)                                      elements. The subject sheet and strip is a flat-
                                                    circumstances, any suspension of                                            of the Act, if our final determination is                                    rolled product with a width that is greater
                                                    liquidation shall apply to unliquidated                                     affirmative, the ITC will make its final                                     than 9.5 mm and with a thickness of 0.3048
                                                    entries of merchandise entered, or                                          determination within 45 days after the                                       mm and greater but less than 4.75 mm, and
                                                    withdrawn from warehouse, for                                               Department makes its final                                                   that is annealed or otherwise heat treated,
                                                    consumption on or after the later of (a)                                                                                                                 and pickled or otherwise descaled. The
                                                                                                                                determination.
                                                                                                                                                                                                             subject sheet and strip may also be further
                                                    the date which is 90 days before the                                                                                                                     processed (e.g., cold-rolled, annealed,
                                                                                                                                Disclosure and Public Comment
                                                    date on which the suspension of                                                                                                                          tempered, polished, aluminized, coated,
                                                    liquidation was first ordered, or (b) the                                     The Department intends to disclose to                                      painted, varnished, trimmed, cut, punched,
                                                    date on which notice of initiation of the                                   interested parties the calculations                                          or slit, etc.) provided that it maintains the
                                                    investigation was published. On June                                        performed in connection with this                                            specific dimensions of sheet and strip set
                                                    27, 2016, we preliminarily found that                                       preliminary determination within five                                        forth above following such processing. The
                                                    critical circumstances exist for imports                                    days of its public announcement.6                                            products described include products
                                                    produced or exported by Taigang,                                            Interested parties may submit case and                                       regardless of shape, and include products of
                                                                                                                                rebuttal briefs, as well as request a                                        either rectangular or non-rectangular cross-
                                                    Ningbo Baoxin, Daming, and all-other                                                                                                                     section where such cross-section is achieved
                                                    exporters or producers.5 Accordingly,                                       hearing.7 For a schedule of the                                              subsequent to the rolling process, i.e.,
                                                    for these companies, in accordance with                                     deadlines for filing case briefs, rebuttal                                   products which have been ‘‘worked after
                                                    section 703(e)(2)(A) of the Act,                                            briefs, and hearing requests, see the                                        rolling’’ (e.g., products which have been
                                                    suspension of liquidation of stainless                                      Preliminary Decision Memorandum.                                             beveled or rounded at the edges).
                                                    sheet and strip from the PRC, as                                              This determination is issued and                                              For purposes of the width and thickness
                                                    described in the ‘‘Scope of the                                             published pursuant to sections 703(f)                                        requirements referenced above: (1) Where the
                                                    Investigation,’’ shall apply to                                             and 777(i) of the Act and 19 CFR                                             nominal and actual measurements vary, a
                                                                                                                                351.205(c).                                                                  product is within the scope if application of
                                                    unliquidated entries of merchandise                                                                                                                      either the nominal or actual measurement
                                                    entered, or withdrawn from warehouse,                                         Dated: July 11, 2016.                                                      would place it within the scope based on the
                                                    for consumption on or after the date                                        Ronald K. Lorentzen,                                                         definitions set forth above; and (2) where the
                                                    which is 90 days before the publication                                     Acting Assistant Secretary for Enforcement                                   width and thickness vary for a specific
                                                    of this notice, the date suspension of                                      and Compliance.                                                              product (e.g., the thickness of certain
                                                    liquidation is first ordered.                                                                                                                            products with non-rectangular cross-section,
                                                                                                                                Appendix I                                                                   the width of certain products with non-
                                                    Verification                                                                                                                                             rectangular shape, etc.), the measurement at
                                                                                                                                List of Topics Discussed in the Preliminary
                                                      As provided in section 782(i)(1) of the                                                                                                                its greatest width or thickness applies.
                                                                                                                                Decision Memorandum
                                                    Act, we intend to verify the information                                                                                                                    All products that meet the written physical
                                                                                                                                I. Summary                                                                   description, and in which the chemistry
                                                    submitted by the respondents prior to                                       II. Background                                                               quantities do not exceed any one of the noted
                                                    making our final determination.                                             III. Scope Comments                                                          element levels listed above, are within the
                                                    International Trade Commission                                              IV. Scope of the Investigation                                               scope of this investigation unless specifically
                                                                                                                                V. Preliminary Determination of Critical                                     excluded.
                                                    Notification                                                                      Circumstances                                                             Subject merchandise includes stainless
                                                      In accordance with section 703(f) of                                      VI. Injury Test                                                              steel sheet and strip that has been further
                                                    the Act, we will notify the International                                   VII. Application of the CVD Law to Imports                                   processed in a third country, including but
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                                                    Trade Commission (ITC) of our                                                     From the PRC                                                           not limited to cold-rolling, annealing,
                                                    determination. In addition, we are                                          VIII. Alignment                                                              tempering, polishing, aluminizing, coating,
                                                    making available to the ITC all non-                                        IX. Use of Facts Otherwise Available and                                     painting, varnishing, trimming, cutting,
                                                                                                                                      Adverse Inferences                                                     punching, and/or slitting, or any other
                                                      5 See Countervailing Duty Investigation of
                                                                                                                                X. Subsidies Valuation                                                       processing that would not otherwise remove
                                                                                                                                XI. Benchmarks and Interest Rates                                            the merchandise from the scope of the
                                                    Stainless Steel Sheet and Strip From the People’s
                                                    Republic of China: Preliminary Determination of                                                                                                          investigation if performed in the country of
                                                    Critical Circumstances, 81 FR 41519 (June 27,                                  6 See   19 CFR 351.224(b).                                                manufacture of the stainless steel sheet and
                                                    2016).                                                                         7 See   19 CFR 351.309(c)–(d), 19 CFR 351.310(c).                         strip.



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                                                                                    Federal Register / Vol. 81, No. 137 / Monday, July 18, 2016 / Notices                                                      46645

                                                       Excluded from the scope of this                       and, as such, if the Department upholds                that Hyundai Steel ‘‘did not reference or
                                                    investigation are the following: (1) Sheet and           these preliminary results in the final                 attempt to show good cause’’ in its
                                                    strip that is not annealed or otherwise heat             results, Hyundai Steel will be entitled to             February 24, 2016, request.6 On May 31,
                                                    treated and not pickled or otherwise                     the antidumping duty deposit rate                      2016,7 Hyundai Steel filed its second
                                                    descaled; (2) plate (i.e., flat-rolled stainless
                                                    steel products of a thickness of 4.75 mm or
                                                                                                             currently assigned to Hyundai HYSCO                    request for a CCR, in which it alleged
                                                    more); and (3) flat wire (i.e., cold-rolled              with respect to the subject merchandise.               that that good cause exists in this case
                                                    sections, with a mill edge, rectangular in               FOR FURTHER INFORMATION CONTACT:                       and requested that the Department
                                                    shape, of a width of not more than 9.5 mm).              Victoria Cho, AD/CVD Operations,                       initiate a CCR.
                                                       The products under investigation are                  Office VI, Enforcement and Compliance,                    We received no comments from any
                                                    currently classifiable under Harmonized                  International Trade Administration,                    other interested party.
                                                    Tariff Schedule of the United States (HTSUS)             U.S. Department of Commerce, 14th
                                                    subheadings 7219.13.0031, 7219.13.0051,                                                                         Scope of the Review
                                                                                                             Street and Constitution Avenue NW.,
                                                    7219.13.0071, 7219.13.0081, 7219.14.0030,
                                                                                                             Washington, DC 20230; telephone: (202)                    The merchandise covered by this
                                                    7219.14.0065, 7219.14.0090, 7219.23.0030,                                                                       review is certain oil country tubular
                                                    7219.23.0060, 7219.24.0030, 7219.24.0060,                482–5075.
                                                                                                                                                                    goods (OCTG), which are hollow steel
                                                    7219.32.0005, 7219.32.0020, 7219.32.0025,                SUPPLEMENTARY INFORMATION:
                                                                                                                                                                    products of circular cross-section,
                                                    7219.32.0035, 7219.32.0036, 7219.32.0038,                                                                       including oil well casing and tubing, of
                                                    7219.32.0042, 7219.32.0044, 7219.32.0045,
                                                                                                             Background
                                                    7219.32.0060, 7219.33.0005, 7219.33.0020,                   On September 10, 2014, the                          iron (other than cast iron) or steel (both
                                                    7219.33.0025, 7219.33.0035, 7219.33.0036,                Department published an antidumping                    carbon and alloy), whether seamless or
                                                    7219.33.0038, 7219.33.0042, 7219.33.0044,                duty order on OCTG from Korea.1                        welded, regardless of end finish (e.g.,
                                                    7219.33.0045, 7219.33.0070, 7219.33.0080,                   On February 24, 2016,2 Hyundai Steel                whether or not plain end, threaded, or
                                                    7219.34.0005, 7219.34.0020, 7219.34.0025,                informed the Department that effective                 threaded and coupled) whether or not
                                                    7219.34.0030, 7219.34.0035, 7219.34.0050,
                                                                                                             July 1, 2015, it had merged with                       conforming to American Petroleum
                                                    7219.35.0005, 7219.35.0015, 7219.35.0030,                                                                       Institute (API) or non-API
                                                    7219.35.0035, 7219.35.0050, 7219.90.0010,                Hyundai HYSCO,3 and requested that:
                                                                                                             (1) The Department conduct a CCR                       specifications, whether finished
                                                    7219.90.0020, 7219.90.0025, 7219.90.0060,                                                                       (including limited service OCTG
                                                    7219.90.0080, 7220.12.1000, 7220.12.5000,                under 19 CFR 351.216(b) to determine
                                                                                                             that it is the successor-in-interest to                products) or unfinished (including
                                                    7220.20.1010, 7220.20.1015, 7220.20.1060,
                                                    7220.20.1080, 7220.20.6005, 7220.20.6010,                Hyundai HYSCO for purposes of                          green tubes and limited service OCTG
                                                    7220.20.6015, 7220.20.6060, 7220.20.6080,                determining Hyundai Steel’s                            products), whether or not thread
                                                    7220.20.7005, 7220.20.7010, 7220.20.7015,                                                                       protectors are attached. The scope of the
                                                                                                             antidumping duty cash deposits and
                                                    7220.20.7060, 7220.20.7080, 7220.90.0010,                                                                       investigation also covers OCTG
                                                                                                             liabilities; (2) the Department’s
                                                    7220.90.0015, 7220.90.0060, and                                                                                 coupling stock. For a complete
                                                                                                             successor-in-interest determination be
                                                    7220.90.0080. Although the HTSUS                                                                                description of the scope of the
                                                    subheadings are provided for convenience                 effective as of July 1, 2015, the date on
                                                                                                                                                                    investigation, see Appendix I to this
                                                    and customs purposes, the written                        which the merger was completed; and
                                                                                                                                                                    notice.
                                                    description of the scope of this proceeding is           (3) on an expedited basis under 19 CFR
                                                    dispositive.                                             351.221(c)(3)(ii).                                     Initiation and Preliminary Results
                                                    [FR Doc. 2016–16947 Filed 7–15–16; 8:45 am]
                                                                                                                On May 18, 2016,4 the Department                      Pursuant to section 751(b)(1) of the
                                                                                                             declined to initiate the CCR that                      Act, the Department will conduct a CCR
                                                    BILLING CODE 3510–DS–P
                                                                                                             Hyundai Steel requested in its February                upon receipt of a request from an
                                                                                                             24, 2016, CCR Request. The Department                  interested party or receipt of
                                                    DEPARTMENT OF COMMERCE                                   determined that it would not conduct a                 information concerning an antidumping
                                                                                                             CCR of a final determination in an                     duty order which shows changed
                                                    International Trade Administration                       investigation less than 24 months after                circumstances sufficient to warrant a
                                                                                                             the publication of the final                           review of the order.8 In addition,
                                                    [A–580–870]
                                                                                                             determination absent showing of good                   because the final determination was
                                                    Certain Oil Country Tubular Goods                        cause.5 The Department further found                   published less than 24 months prior to
                                                    From the Republic of Korea: Initiation                                                                          the date on which Hyundai Steel
                                                                                                               1 See Certain Oil Country Tubular Goods From
                                                    and Expedited Preliminary Results of                     India, the Republic of Korea, Taiwan, the Republic
                                                                                                                                                                    submitted its request for a CCR (i.e.,
                                                    Changed Circumstances Review                             of Turkey, and the Socialist Republic of Vietnam:      May 31, 2016), and pursuant to section
                                                                                                             Antidumping Duty Orders; and Certain Oil Country       351.216(c) of the Department’s
                                                    AGENCY:   Enforcement and Compliance,                    Tubular Goods From the Socialist Republic of           regulations, a CCR will not be initiated
                                                    International Trade Administration,                      Vietnam: Amended Final Determination of Sales at
                                                                                                                                                                    unless good cause exists. We find that
                                                    Department of Commerce.                                  Less Than Fair Value, 74 FR 53691 (September 10,
                                                                                                             2014).                                                 good cause exists in the instant CCR
                                                    DATES: Effective Date: July 18, 2016.                      2 See the February 24, 2016, letter from Hyundai     request to initiate this CCR before the 24
                                                    SUMMARY: In response to a request from                   Steel, ‘‘Oil Country Tubular Goods from the            month anniversary of the final
                                                    Hyundai Steel Co. Ltd. (Hyundai Steel),                  Republic of Korea: Request for a Changed               determination, as demonstrated by
                                                                                                             Circumstances Review,’’ (CCR Request).
                                                    a producer/exporter of certain oil                         3 Hyundai HYSCO was a respondent in the
                                                                                                                                                                    Hyundai Steel.9 Moreover, as noted
                                                    country tubular goods (OCTG) from the                    investigation of OCTG from Korea covering the          above in the ‘‘Background’’ section, we
                                                    Republic of Korea (Korea), and pursuant                  period July 1, 2012–June 30, 2013. Hyundai HYSCO       have received information indicating
                                                    to section 751(b) of the Tariff Act of                   received a 15.75 percent dumping margin. See           that on July 1, 2015, Hyundai HYSCO
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                                                                                                             Certain Oil Country Tubular Goods From the
                                                    1930, as amended (the Act), 19 CFR                       Republic of Korea: Final Determination of Sales at
                                                                                                                                                                    merged with Hyundai Steel, with the
                                                    351.216 and 351.221(c)(3)(ii), the                       Less Than Fair Value and Negative Final
                                                    Department is initiating a changed                       Determination of Critical Circumstances, 79 FR           6 See the CCR Request; and also see the

                                                    circumstances review (CCR) and issuing                   41983 (July 18, 2014).                                 Department’s Rejection Letter.
                                                                                                               4 See the Department’s May 18, 2016, letter to         7 See the May 31, 2016, letter from Hyundai Steel
                                                    this notice of preliminary results. We                                                                          to the Department.
                                                                                                             Hyundai Steel.
                                                    have preliminarily determined that                         5 See the Department’s May 18, 2016, letter to         8 See 19 CFR 351.216(c); section 735(a) of the Act.
                                                    Hyundai Steel is the successor-in-                       Hyundai Steel (the Department’s Rejection Letter);       9 See the May 31, 2016, letter from Hyundai Steel

                                                    interest to the former Hyundai HYSCO                     19 CFR 351.216(c); and section 751(b)(4) of the Act.   to the Department.



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Document Created: 2016-07-16 02:28:46
Document Modified: 2016-07-16 02:28:46
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 July 18, 2016.
ContactEmily Halle, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-0176.
FR Citation81 FR 46643 

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