81 FR 53406 - Certain Hot-Rolled Steel Flat Products From Australia: Final Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 156 (August 12, 2016)

The Department of Commerce determines that certain hot-rolled steel flat products from Australia are being, or are likely to be, sold in the United States at less than fair value. The period of investigation is July 1, 2014, through June 30, 2015. The final estimated weighted-average dumping margins are listed below in the ``Final Determination'' section of this notice.

[Federal Register Volume 81, Number 156 (Friday, August 12, 2016)]
[Notices]
[Pages 53406-53408]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19375]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-602-809]


Certain Hot-Rolled Steel Flat Products From Australia: Final 
Determination of Sales at Less Than Fair Value

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

SUMMARY: The Department of Commerce determines that certain hot-rolled 
steel flat products from Australia are being, or are likely to be, sold 
in the United States at less than fair value. The period of 
investigation is July 1, 2014, through June 30, 2015. The final 
estimated weighted-average dumping margins are listed below in the 
``Final Determination'' section of this notice.

DATES: Effective August 12, 2016.

FOR FURTHER INFORMATION CONTACT: Frances Veith, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4295.

SUPPLEMENTARY INFORMATION:

Background

    The Department of Commerce (the ``Department'') published the 
preliminary determination on March 22, 2016.\1\ A summary of the events 
that occurred since the Department published the Preliminary 
Determination, as well as a full discussion of the issues raised by 
parties for this final determination, may be found in the final Issues 
and Decision Memorandum.\2\
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    \1\ See Certain Hot-Rolled Steel Flat Products from Australia: 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination, 81 FR 15241 (March 22, 2016) 
(``Preliminary Determination'') and accompanying Preliminary 
Decision Memorandum.
    \2\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, ``Issues and Decision Memorandum for the Final 
Affirmative Determination in the Antidumping Duty Investigation of 
Certain Hot-Rolled Steel Flat Products from Australia,'' (``Issues 
and Decision Memorandum''), dated concurrently with this 
determination and hereby adopted by this notice.
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Scope of the Investigation

    The products covered by this investigation are certain hot-rolled 
steel flat products (``hot-rolled steel'') from Australia. For a full 
description of the scope of this investigation, see the ``Scope of the 
Investigation,'' in Appendix II of this notice.

[[Page 53407]]

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 hereby adopted by this notice.\3\ 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/. The signed and electronic versions of the 
Final Issues and Decision Memorandum are identical in content.
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    \3\ See Issues and Decision Memorandum.
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Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(``the Act''), in April and May 2016, the Department verified the sales 
and cost data reported by the mandatory respondents BlueScope Steel 
Ltd. (``BlueScope''). We used standard verification procedures, 
including an examination of relevant accounting and production records, 
and original source documents provided by BlueScope.

Changes to the Margin Calculations Since the Preliminary Determination

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

Single Entity Treatment

    For the reasons set forth in the Preliminary Decision Memorandum 
and in accordance with 19 CFR 351.401(f) and the Department's practice, 
we are continuing to treat BlueScope Steel Ltd., BlueScope Steel (AIS) 
Pty Ltd., and BlueScope Steel Distribution Pty Ltd. as a single entity, 
BlueScope, for the purposes of this final determination.\4\
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    \4\ See ``Affiliation And Collapsing'' section of the 
Preliminary Decision Memorandum.
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All-Others Rate

    Consistent with sections 735(c)(1)(B)(i)(II) and 735(c)(5) of the 
Act, the Department also calculated an estimated 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 and de minimis 
margins, and any margins determined entirely under section 776 of the 
Act. Where the rates for investigated companies are zero or de minimis, 
or based entirely on facts otherwise available, section 735(c)(5)(B) of 
the Act instructs the Department to establish an ``all others'' rate 
using ``any reasonable method.
    BlueScope is the only respondent for which the Department 
calculated a company-specific rate. Therefore, for purposes of 
determining the ``all others'' rate and pursuant to section 
735(d)(5)(A) of the Act, we are using the dumping margin calculated for 
BlueScope, as referenced in the ``Final Determination'' section below.

Final Determination

    The Department determines that the following weighted-average 
dumping margins exist:

------------------------------------------------------------------------
                                                               Weighted-
                                                                 average
                      Exporter/producer                         dumping
                                                                 margin
                                                               (percent)
------------------------------------------------------------------------
BlueScope Steel Ltd., BlueScope Steel (AIS) Pty Ltd., and          29.37
 BlueScope Steel Distribution Pty Ltd........................
All Others...................................................      29.37
------------------------------------------------------------------------

Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of public announcement of our final determination, in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we are 
directing U.S. Customs and Border Protection (``CBP'') to continue to 
suspend liquidation of all entries of hot-rolled steel from Australia, 
as described in the Scope of the Investigation in Appendix II, entered, 
or withdrawn from warehouse, for consumption on or after March 22, 
2016, the date of publication in the Federal Register of the 
affirmative Preliminary Determination.

International Trade Commission (``ITC'') Notification

    In accordance with section 735(d) of the Act, we are notifying the 
ITC of our affirmative final determination of sales at less than fair 
value (``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 hot-rolled steel from Australia 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 is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).

    Dated: August 4, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Final Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Changes Since the Preliminary Determination
VI. Discussion of the Methodology
VII. Discussion of the Issues
    Comment 1: U.S. Sales of Nonprime (Secondary) Merchandise
    Comment 2: U.S.--Freight Cap
    Comment 3: U.S.--Cost of Production Interest Expense Ratio

[[Page 53408]]

    Comment 4: U.S.--Credit Expense for U.S. Sales in Channels 1 and 
2
    Comment 5: Home Market--Sales Adjustments
    Comment 6: Home Market--Interest Expense Ratio
    Comment 7: Home Market--Adverse Facts Available to Sales Data 
for BSD
    Comment 8: Home Market--Early Payment Discounts
VIII. Negative Finding of Critical Circumstances
IX. Recommendation

Appendix II

Scope of the Investigation

    The products covered by this investigation are certain hot-
rolled, flat-rolled steel products, with or without patterns in 
relief, and whether or not annealed, painted, varnished, or coated 
with plastics or other non-metallic substances. The products covered 
do not include those that are clad, plated, or coated with metal. 
The products covered include coils that have a width or other 
lateral measurement (``width'') of 12.7 mm or greater, regardless of 
thickness, and regardless of form of coil (e.g., in successively 
superimposed layers, spirally oscillating, etc.). The products 
covered also include products not in coils (e.g., in straight 
lengths) of a thickness of less than 4.75 mm and a width that is 
12.7 mm or greater and that measures at least 10 times the 
thickness. The products described above may be rectangular, square, 
circular, or other shape and include products of either rectangular 
or non-rectangular cross-section where such cross-section is achieve 
subsequent to the rolling process, i.e., products which have been 
``worked after rolling'' (e.g., products which have been beveled or 
rounded at the edges). For purposes of the width and thickness 
requirements referenced above:
    (1) Where the nominal and actual measurements vary, a product is 
within the scope if application of either the nominal or actual 
measurement would place it within the scope based on the definitions 
set forth above unless the resulting measurement makes the product 
covered by the existing antidumping \5\ or countervailing duty \6\ 
orders on Certain Cut-To-Length Carbon-Quality Steel Plate Products 
From the Republic of Korea (A-580-836; C-580-837), and
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    \5\ Notice of Amendment of Final Determinations of Sales at Less 
Than Fair Value and Antidumping Duty Orders: Certain Cut-To-Length 
Carbon-Quality Steel Plate Products From France, India, Indonesia, 
Italy, Japan and the Republic of Korea, 65 FR 6585 (February 10, 
2000).
    \6\ Notice of Amended Final Determinations: Certain Cut-to-
Length Carbon-Quality Steel Plate From India and the Republic of 
Korea; and Notice of Countervailing Duty Orders: Certain Cut-To-
Length Carbon-Quality Steel Plate From France, India, Indonesia, 
Italy, and the Republic of Korea, 65 FR 6587 (February 10, 2000).
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    (2) where the width and thickness vary for a specific product 
(e.g., the thickness of certain products with non-rectangular cross-
section, the width of certain products with non-rectangular shape, 
etc.), the measurement at its greatest width or thickness applies.
    Steel products included in the scope of this investigation are 
products in which: (1) Iron predominates, by weight, over each of 
the other contained elements; (2) the carbon content is 2 percent or 
less, by weight; and (3) none of the elements listed below exceeds 
the quantity, by weight, respectively indicated:
     2.50 percent of manganese, or
     3.30 percent of silicon, or
     1.50 percent of copper, or
     1.50 percent of aluminum, or
     1.25 percent of chromium, or
     0.30 percent of cobalt, or
     0.40 percent of lead, or
     2.00 percent of nickel, or
     0.30 percent of tungsten, or
     0.80 percent of molybdenum, or
     0.10 percent of niobium, or
     0.30 percent of vanadium, or
     0.30 percent of zirconium.
    Unless specifically excluded, products are included in this 
scope regardless of levels of boron and titanium.
    For example, specifically included in this scope are vacuum 
degassed, fully stabilized (commonly referred to as interstitial-
free (IF)) steels, high strength low alloy (HSLA) steels, the 
substrate for motor lamination steels, Advanced High Strength Steels 
(AHSS), and Ultra High Strength Steels (UHSS). IF steels are 
recognized as low carbon steels with micro-alloying levels of 
elements such as titanium and/or niobium added to stabilize carbon 
and nitrogen elements. HSLA steels are recognized as steels with 
micro-alloying levels of elements such as chromium, copper, niobium, 
titanium, vanadium, and molybdenum. The substrate for motor 
lamination steels contains micro-alloying levels of elements such as 
silicon and aluminum. AHSS and UHSS are considered high tensile 
strength and high elongation steels, although AHSS and UHSS are 
covered whether or not they are high tensile strength or high 
elongation steels.
    Subject merchandise includes hot-rolled steel that has been 
further processed in a third country, including but not limited to 
pickling, oiling, levelling, annealing, tempering, temper rolling, 
skin passing, painting, varnishing, trimming, cutting, punching, 
and/or slitting, or any other processing that would not otherwise 
remove the merchandise from the scope of the investigation if 
performed in the country of manufacture of the hot-rolled steel.
    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of this 
investigation unless specifically excluded. The following products 
are outside of and/or specifically excluded from the scope of this 
investigation:
     Universal mill plates (i.e., hot-rolled, flat-rolled 
products not in coils that have been rolled on four faces or in a 
closed box pass, of a width exceeding 150 mm but not exceeding 1250 
mm, of a thickness not less than 4.0 mm, and without patterns in 
relief);
     Products that have been cold-rolled (cold-reduced) 
after hot-rolling; \7\
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    \7\ For purposes of this scope exclusion, rolling operations 
such as a skin pass, levelling, temper rolling or other minor 
rolling operations after the hot-rolling process for purposes of 
surface finish, flatness, shape control, or gauge control do not 
constitute cold-rolling sufficient to meet this exclusion.
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     Ball bearing steels; \8\
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    \8\ Ball bearing steels are defined as steels which contain, in 
addition to iron, each of the following elements by weight in the 
amount specified: (i) Not less than 0.95 nor more than 1.13 percent 
of carbon; (ii) not less than 0.22 nor more than 0.48 percent of 
manganese; (iii) none, or not more than 0.03 percent of sulfur; (iv) 
none, or not more than 0.03 percent of phosphorus; (v) not less than 
0.18 nor more than 0.37 percent of silicon; (vi) not less than 1.25 
nor more than 1.65 percent of chromium; (vii) none, or not more than 
0.28 percent of nickel; (viii) none, or not more than 0.38 percent 
of copper; and (ix) none, or not more than 0.09 percent of 
molybdenum.
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     Tool steels; \9\ and
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    \9\ Tool steels are defined as steels which contain the 
following combinations of elements in the quantity by weight 
respectively indicated: (i) More than 1.2 percent carbon and more 
than 10.5 percent chromium; or (ii) not less than 0.3 percent carbon 
and 1.25 percent or more but less than 10.5 percent chromium; or 
(iii) not less than 0.85 percent carbon and 1 percent to 1.8 
percent, inclusive, manganese; or (iv) 0.9 percent to 1.2 percent, 
inclusive, chromium and 0.9 percent to 1.4 percent, inclusive, 
molybdenum; or (v) not less than 0.5 percent carbon and not less 
than 3.5 percent molybdenum; or (vi) not less than 0.5 percent 
carbon and not less than 5.5 percent tungsten.
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     Silico-manganese steels; \10\
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    \10\ Silico-manganese steel is defined as steels containing by 
weight: (i) Not more than 0.7 percent of carbon; (ii) 0.5 percent or 
more but not more than 1.9 percent of manganese, and (iii) 0.6 
percent or more but not more than 2.3 percent of silicon.
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    The products subject to this investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7208.10.1500, 7208.10.3000, 
7208.10.6000, 7208.25.3000, 7208.25.6000, 7208.26.0030, 
7208.26.0060, 7208.27.0030, 7208.27.0060, 7208.36.0030, 
7208.36.0060, 7208.37.0030, 7208.37.0060, 7208.38.0015, 
7208.38.0030, 7208.38.0090, 7208.39.0015, 7208.39.0030, 
7208.39.0090, 7208.40.6030, 7208.40.6060, 7208.53.0000, 
7208.54.0000, 7208.90.0000, 7210.70.3000, 7211.14.0030, 
7211.14.0090, 7211.19.1500, 7211.19.2000, 7211.19.3000, 
7211.19.4500, 7211.19.6000, 7211.19.7530, 7211.19.7560, 
7211.19.7590, 7225.11.0000, 7225.19.0000, 7225.30.3050, 
7225.30.7000, 7225.40.7000, 7225.99.0090, 7226.11.1000, 
7226.11.9030, 7226.11.9060, 7226.19.1000, 7226.19.9000, 
7226.91.5000, 7226.91.7000, and 7226.91.8000. The products subject 
to the investigation may also enter under the following HTSUS 
numbers: 7210.90.9000, 7211.90.0000, 7212.40.1000, 7212.40.5000, 
7212.50.0000, 7214.91.0015, 7214.91.0060, 7214.91.0090, 
7214.99.0060, 7214.99.0075, 7214.99.0090, 7215.90.5000, 
7226.99.0180, and 7228.60.6000.
    The HTSUS subheadings above are provided for convenience and 
U.S. Customs purposes only. The written description of the scope of 
the investigation is dispositive.

[FR Doc. 2016-19375 Filed 8-11-16; 8:45 am]
 BILLING CODE 3510-DS-P