81_FR_53572 81 FR 53416 - Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat Products From Brazil: Final Affirmative Determination, and Final Determination of Critical Circumstances, in Part

81 FR 53416 - Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat Products From Brazil: Final Affirmative Determination, and Final Determination of Critical Circumstances, in Part

DEPARTMENT OF COMMERCE
International Trade Administration

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

Page Range53416-53419
FR Document2016-19376

The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of certain hot-rolled steel flat products (hot-rolled steel, or HRS) from Brazil. For information on the estimated subsidy rates, see the ``Final Determination'' section of this notice. The period of investigation is January 1, 2014, through December 31, 2014.

Federal Register, Volume 81 Issue 156 (Friday, August 12, 2016)
[Federal Register Volume 81, Number 156 (Friday, August 12, 2016)]
[Notices]
[Pages 53416-53419]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19376]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-351-846]


Countervailing Duty Investigation of Certain Hot-Rolled Steel 
Flat Products From Brazil: Final Affirmative Determination, and Final 
Determination of Critical Circumstances, in Part

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

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain hot-rolled steel flat products (hot-rolled steel, or HRS) 
from Brazil. For information on the estimated subsidy rates, see the 
``Final Determination'' section of this notice. The period of 
investigation is January 1, 2014, through December 31, 2014.

DATES: Effective August 12, 2016.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin, Nicholas Czajkowski, 
or Lana Nigro, AD/CVD Operations, Office I, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
6478, (202) 482-1395, and (202) 482-1779, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the Preliminary Determination on January 
15, 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 Issues and Decision Memorandum.\2\ 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 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 Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum 
and the electronic version are identical in content.
---------------------------------------------------------------------------

    \1\ See Countervailing Duty Investigation of Certain Hot-Rolled 
Steel Flat Products From Brazil: Preliminary Affirmative 
Determination and Alignment of Final Determination With Final 
Antidumping Duty Determination, 81 FR 2168 (January 15, 2016) 
(Preliminary Determination) and accompanying Preliminary Decision 
Memorandum (PDM).
    \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 
Determination in the Countervailing Duty Investigation of Certain 
Hot-Rolled Steel Flat Products from Brazil,'' dated concurrently 
with this determination (Issues and Decision Memorandum) and hereby 
adopted by this notice.
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Scope Comments

    In accordance with the Preliminary Scope Determination,\3\ the 
Department set aside a period of time for parties to address scope 
issues in case briefs or other written comments on scope issues.
---------------------------------------------------------------------------

    \3\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Certain Hot-Rolled Steel Products from Australia, Brazil, Japan, 
the Netherlands, the Republic of Korea, Turkey and the United 
Kingdom: Scope Comments Decision Memorandum for the Preliminary 
Determinations,'' dated March 14, 2016.
---------------------------------------------------------------------------

    In the Preliminary Determination, we did not modify the scope 
language as it appeared in the Initiation Notice.\4\ No interested 
party submitted scope comments in case or rebuttal briefs; therefore, 
the scope of this investigation remains unchanged for this final 
determination.
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    \4\ See Preliminary Determination PDM at ``Scope Comments.''
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Scope of the Investigation

    The products covered by this investigation are certain hot-rolled 
steel flat products from Brazil. For a complete description of the 
scope of this investigation, see the ``Scope of the Investigation,'' 
attached to this notice at Appendix I.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
that parties raised, and to which we have responded in the Issues and 
Decision Memorandum, is attached to this notice at Appendix II.

Use of Adverse Facts Available

    In making this final determination, the Department relied, in part, 
on facts available and, because the Government of Brazil and the 
respondent companies did not act to the best of their abilities in 
responding to the Department's requests for information, we drew an 
adverse inference where appropriate in selecting from among the facts 
otherwise available.\5\ Specifically, we applied facts available, with 
adverse inferences, for the Reduction of Tax on Industrialized Products 
for Machines and Equipment, the BNDES FINAME Loan program, and the Ex-
Tarif[aacute]rio program, in accordance with section 776(a) and (b) of 
the Act. For further information, see the section ``Use of Adverse 
Facts Available'' in the accompanying Issues and Decision Memorandum.
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    \5\ See sections 776(a) and (b) of the Tariff Act of 1930, as 
amended (the Act).
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received from parties, and 
the minor corrections presented and additional items discovered at 
verification, we made certain changes to the respondents' subsidy rate 
calculations. For a discussion of these changes, see the Issues and 
Decision Memorandum.

Final Affirmative Determination of Critical Circumstances, in Part

    On October 23, 2015, the petitioner filed a timely critical 
circumstances allegation pursuant to section 703(e)(1) of the Act and 
19 CFR 351.206(c)(1), alleging that critical circumstances exist with 
respect to imports of hot-rolled steel from Brazil.\6\ We preliminarily 
determined that critical circumstances existed with respect to CSN and 
Usiminas, but not for all others companies.\7\ Based on additional 
import data that became available since the Preliminary Determination 
of Critical Circumstances, we are departing from our preliminary 
finding. For this final determination, in accordance with section 
705(a) of the Act, we find that critical circumstances exist with 
respect to CSN but that critical circumstances do not exist with 
respect to Usiminas and all other producers and exporters of

[[Page 53417]]

hot-rolled steel from Brazil.\8\ For a complete discussion, see the 
``Critical Circumstances'' section of the Issues and Decision 
Memorandum.
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    \6\ See letter from the Petitioner, ``Certain Hot-Rolled Steel 
Flat Products From Australia, Brazil, Japan and the Netherlands--
Critical Circumstances Allegations,'' dated October 23, 2015.
    \7\ See Antidumping Duty Investigations of Certain Hot-Rolled 
Steel Flat Products From Australia, Brazil, Japan, and the 
Netherlands and Countervailing Duty Investigation of Certain Hot-
Rolled Steel Flat Products From Brazil: Preliminary Determinations 
of Critical Circumstances, 80 FR 76444 (December 9, 2015) 
(Preliminary Determination of Critical Circumstances).
    \8\ See Issues and Decision Memorandum; see also Memorandum 
``Calculations for Final Determination of Critical Circumstances in 
the Countervailing Duty Investigation of Certain Hot-Rolled Steel 
Flat Products from Brazil,'' dated concurrently with this notice.
---------------------------------------------------------------------------

Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for Usiminas and CSN, the exporters/producers of 
subject merchandise selected for individual examination in this 
investigation.
    In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A) of 
the Act, for companies not individually investigated, we apply an ``all 
others'' rate, which is normally calculated by weighting the subsidy 
rates of the individual companies selected as mandatory respondents by 
those companies' exports of the subject merchandise to the United 
States. 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 any rates based entirely 
on facts otherwise available, pursuant to section 776 of the Act. 
Neither of the respondents' rates was zero or de minimis or based 
entirely on facts otherwise available. Notwithstanding the language of 
section 705(c)(5)(A)(i) of the Act, we did not calculate the ``all-
others'' rate by weight averaging the rates of the two individually 
investigated respondents using their actual export sales data, because 
doing so risks disclosure of proprietary information. Instead, we 
calculated the all-others rate using the simple average of the 
respondents' calculated rates.\9\ The estimated countervailable subsidy 
rates are as follows:
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    \9\ See Memorandum to Dana S. Mermelstein, Program Manager, AD/
CVD Operations, Office I, ``Final Affirmative Countervailing Duty 
Determination: Hot-Rolled Steel Flat Products from Brazil; 
Calculation of the All Others Rate for the Final Determination in 
the Countervailing Duty Investigation of Hot-Rolled Steel Flat 
Products from Brazil,'' dated concurrently with this notice.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                                rate
                                                               (percent)
------------------------------------------------------------------------
Companhia Siderurgica Nacional (CSN).........................      11.30
Usinas Siderurgicas de Minas Gerais S.A. (Usiminas)..........      11.09
All Others...................................................      11.20
------------------------------------------------------------------------

Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of hot-rolled 
steel from Brazil, that were entered, or withdrawn from warehouse, for 
consumption on or after October 17, 2015, for CSN and Usiminas, for 
which we found critical circumstances exist, and on or after January 
15, 2016, the date of the publication of the Preliminary Determination 
in the Federal Register, for all other exporters. In accordance with 
section 703(d) of the Act, we instructed CBP to discontinue the 
suspension of liquidation for countervailing duty (CVD) purposes for 
subject merchandise entered, or withdrawn from warehouse, on or after 
May 14, 2016, but to continue the suspension of liquidation of all 
entries from October 17, 2015, or January 15, 2016, as applicable, 
through May 14, 2016. As a result of our negative critical 
circumstances determination for Usiminas, we will instruct CBP to 
discontinue the suspension of liquidation, and to liquidate, without 
regard to countervailing duties, subject merchandise exported by 
Usiminas and entered, or withdrawn from warehouse, on or after October 
17, 2015 and before January 15, 2016.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
subject merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related 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 (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.201(c).

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

Appendix I--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 \1\ or countervailing duty \2\ 
orders

[[Page 53418]]

on Certain Cut-To-Length Carbon-Quality Steel Plate Products From 
the Republic of Korea (A-580-836; C-580-837), and
---------------------------------------------------------------------------

    \1\ 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).
    \2\ 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; \3\
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    \3\ 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; \4\
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    \4\ 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; \5\ and
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    \5\ 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; \6\
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    \6\ 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.
---------------------------------------------------------------------------

    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.

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

I. Summary
    Issues
II. Background
    A. Case History
    B. Period of Investigation
III. Final Determination of Critical Circumstances, in Part
IV. Scope of the Investigation
V. Use of Adverse Facts Available
VI. Subsidies Valuation
    A. Allocation Period
    B. Attribution of Subsidies
    C. Denominators
VII. Interest Rates Benchmarks and Discount Rates
VIII. Analysis of Programs
    A. Programs Determined To Be Countervailable
    B. Program Determined To Be Not Countervailable
    C. Programs Determined To Be Not Used, or Not To Confer a 
Measurable Benefit, During the POI
    D. Program Determined Not To Exist
IX. Analysis of Comments
    Comment 1: Whether To Apply AFA to Both the GOB and Respondents 
for the Reduction of IPI for Machines and Equipment Program
    Comment 2: Whether the Reduction of IPI for Machines and 
Equipment Program Is Countervailable
    Comment 3: Whether To Apply AFA for the Ex-Tarif[aacute]rio 
Program
    Comment 4: Whether Ex-Tarif[aacute]rio is De Facto Specific
    Comment 5: Whether Ex-Tarif[aacute]rio Provides a Financial 
Contribution
    Comment 6: Whether the FINAME Loan Program Is Specific
    Comment 7: Whether To Apply AFA to Determine the Benefit of the 
FINAME Program
    Comment 8: Whether To Re-Calculate the FINAME Program for 
Usiminas
    Comment 9: Whether To Use a Company-Specific Interest Rate 
Benchmark To Calculate the FINAME Program Benefit for Usiminas
    Comment 10: Whether the Integrated Drawback Scheme Is 
Countervailable
    Comment 11: Whether Usiminas Received a Benefit From the 
Integrated Drawback Scheme
    Comment 12: Whether Reintegra Is Countervailable
    Comment 13: Whether to Recalculate the Reintegra Subsidy Rate
    Comment 14: Whether CSN Applied for/Used the Reintegra Program 
During the POI
    Comment 15: Whether the Exemption of Payroll Tax Is 
Countervailable

[[Page 53419]]

    Comment 16: Whether Subsidies Provided to UMSA Should Be 
Attributed to Usiminas
    Comment 17: Whether the Economic Subvention to National 
Innovation Program Is Not Countervailable
    Comment 18: Whether FINEP's Economic Subvention Program Has Not 
Conferred a Measurable Benefit
    Comment 19: Whether the Bahia State Industrial Development and 
Economic Integration Program (Desenvolve) Is De Jure Specific
    Comment 20: Whether the GOB's References to Web sites Constitute 
a Full Response
X. Recommendation

[FR Doc. 2016-19376 Filed 8-11-16; 8:45 am]
 BILLING CODE 3510-DS-P



                                                  53416                          Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices

                                                  Currency Conversion                                     Memorandum is a public document and                    available and, because the Government
                                                  Recommendation                                          is on file electronically via Enforcement              of Brazil and the respondent companies
                                                  [FR Doc. 2016–19261 Filed 8–11–16; 8:45 am]             and Compliance’s Antidumping and                       did not act to the best of their abilities
                                                  BILLING CODE 3510–DS–P                                  Countervailing Duty Centralized                        in responding to the Department’s
                                                                                                          Electronic Service System (ACCESS).                    requests for information, we drew an
                                                                                                          ACCESS is available to registered users                adverse inference where appropriate in
                                                  DEPARTMENT OF COMMERCE                                  at http://access.trade.gov, and is                     selecting from among the facts
                                                                                                          available to all parties in the Central                otherwise available.5 Specifically, we
                                                  International Trade Administration                      Records Unit, Room B8024 of the main                   applied facts available, with adverse
                                                  [C–351–846]                                             Department of Commerce building. In                    inferences, for the Reduction of Tax on
                                                                                                          addition, a complete version of the                    Industrialized Products for Machines
                                                  Countervailing Duty Investigation of                    Issues and Decision Memorandum can                     and Equipment, the BNDES FINAME
                                                  Certain Hot-Rolled Steel Flat Products                  be accessed directly at http://                        Loan program, and the Ex-Tarifário
                                                  From Brazil: Final Affirmative                          enforcement.trade.gov/frn/. The signed                 program, in accordance with section
                                                  Determination, and Final Determination                  Issues and Decision Memorandum and                     776(a) and (b) of the Act. For further
                                                  of Critical Circumstances, in Part                      the electronic version are identical in                information, see the section ‘‘Use of
                                                                                                          content.                                               Adverse Facts Available’’ in the
                                                  AGENCY:   Enforcement and Compliance,
                                                                                                          Scope Comments                                         accompanying Issues and Decision
                                                  International Trade Administration,
                                                                                                                                                                 Memorandum.
                                                  Department of Commerce.                                   In accordance with the Preliminary
                                                  SUMMARY: The Department of Commerce                     Scope Determination,3 the Department                   Changes Since the Preliminary
                                                  (the Department) determines that                        set aside a period of time for parties to              Determination
                                                  countervailable subsidies are being                     address scope issues in case briefs or
                                                  provided to producers and exporters of                  other written comments on scope issues.                  Based on our analysis of the
                                                  certain hot-rolled steel flat products                    In the Preliminary Determination, we                 comments received from parties, and
                                                  (hot-rolled steel, or HRS) from Brazil.                 did not modify the scope language as it                the minor corrections presented and
                                                  For information on the estimated                        appeared in the Initiation Notice.4 No                 additional items discovered at
                                                  subsidy rates, see the ‘‘Final                          interested party submitted scope                       verification, we made certain changes to
                                                  Determination’’ section of this notice.                 comments in case or rebuttal briefs;                   the respondents’ subsidy rate
                                                  The period of investigation is January 1,               therefore, the scope of this investigation             calculations. For a discussion of these
                                                  2014, through December 31, 2014.                        remains unchanged for this final                       changes, see the Issues and Decision
                                                                                                          determination.                                         Memorandum.
                                                  DATES: Effective August 12, 2016.
                                                  FOR FURTHER INFORMATION CONTACT:                        Scope of the Investigation                             Final Affirmative Determination of
                                                  Sergio Balbontin, Nicholas Czajkowski,                                                                         Critical Circumstances, in Part
                                                                                                             The products covered by this
                                                  or Lana Nigro, AD/CVD Operations,                       investigation are certain hot-rolled steel
                                                  Office I, Enforcement and Compliance,                                                                             On October 23, 2015, the petitioner
                                                                                                          flat products from Brazil. For a complete              filed a timely critical circumstances
                                                  International Trade Administration,                     description of the scope of this
                                                  U.S. Department of Commerce, 1401                                                                              allegation pursuant to section 703(e)(1)
                                                                                                          investigation, see the ‘‘Scope of the                  of the Act and 19 CFR 351.206(c)(1),
                                                  Constitution Avenue NW., Washington,                    Investigation,’’ attached to this notice at
                                                  DC 20230; telephone: (202) 482–6478,                                                                           alleging that critical circumstances exist
                                                                                                          Appendix I.                                            with respect to imports of hot-rolled
                                                  (202) 482–1395, and (202) 482–1779,
                                                  respectively.                                           Analysis of Subsidy Programs and                       steel from Brazil.6 We preliminarily
                                                                                                          Comments Received                                      determined that critical circumstances
                                                  SUPPLEMENTARY INFORMATION:                                                                                     existed with respect to CSN and
                                                                                                             The subsidy programs under
                                                  Background                                                                                                     Usiminas, but not for all others
                                                                                                          investigation and the issues raised in
                                                                                                                                                                 companies.7 Based on additional import
                                                    The Department published the                          the case and rebuttal briefs by parties in
                                                                                                          this investigation are discussed in the                data that became available since the
                                                  Preliminary Determination on January
                                                                                                          Issues and Decision Memorandum. A                      Preliminary Determination of Critical
                                                  15, 2016.1 A summary of the events that
                                                                                                          list of the issues that parties raised, and            Circumstances, we are departing from
                                                  occurred since the Department
                                                                                                          to which we have responded in the                      our preliminary finding. For this final
                                                  published the Preliminary
                                                                                                          Issues and Decision Memorandum, is                     determination, in accordance with
                                                  Determination, as well as a full
                                                                                                          attached to this notice at Appendix II.                section 705(a) of the Act, we find that
                                                  discussion of the issues raised by parties
                                                                                                                                                                 critical circumstances exist with respect
                                                  for this final determination, may be                    Use of Adverse Facts Available                         to CSN but that critical circumstances
                                                  found in the Issues and Decision
                                                                                                            In making this final determination,                  do not exist with respect to Usiminas
                                                  Memorandum.2 The Issues and Decision
                                                                                                          the Department relied, in part, on facts               and all other producers and exporters of
                                                     1 See Countervailing Duty Investigation of Certain

                                                                                                          Rolled Steel Flat Products from Brazil,’’ dated          5 See sections 776(a) and (b) of the Tariff Act of
                                                  Hot-Rolled Steel Flat Products From Brazil:
                                                  Preliminary Affirmative Determination and               concurrently with this determination (Issues and       1930, as amended (the Act).
                                                  Alignment of Final Determination With Final             Decision Memorandum) and hereby adopted by this          6 See letter from the Petitioner, ‘‘Certain Hot-

                                                  Antidumping Duty Determination, 81 FR 2168              notice.                                                Rolled Steel Flat Products From Australia, Brazil,
                                                  (January 15, 2016) (Preliminary Determination) and        3 See Memorandum to Christian Marsh, Deputy          Japan and the Netherlands—Critical Circumstances
mstockstill on DSK3G9T082PROD with NOTICES




                                                  accompanying Preliminary Decision Memorandum            Assistant Secretary for Antidumping and                Allegations,’’ dated October 23, 2015.
                                                  (PDM).                                                  Countervailing Duty Operations, ‘‘Certain Hot-           7 See Antidumping Duty Investigations of Certain
                                                     2 See Memorandum from Christian Marsh, Deputy        Rolled Steel Products from Australia, Brazil, Japan,   Hot-Rolled Steel Flat Products From Australia,
                                                  Assistant Secretary for Antidumping and                 the Netherlands, the Republic of Korea, Turkey and     Brazil, Japan, and the Netherlands and
                                                  Countervailing Duty Operations, to Ronald K.            the United Kingdom: Scope Comments Decision            Countervailing Duty Investigation of Certain Hot-
                                                  Lorentzen, Acting Assistant Secretary for               Memorandum for the Preliminary Determinations,’’       Rolled Steel Flat Products From Brazil: Preliminary
                                                  Enforcement and Compliance, ‘‘Issues and Decision       dated March 14, 2016.                                  Determinations of Critical Circumstances, 80 FR
                                                  Memorandum for the Final Determination in the             4 See Preliminary Determination PDM at ‘‘Scope       76444 (December 9, 2015) (Preliminary
                                                  Countervailing Duty Investigation of Certain Hot-       Comments.’’                                            Determination of Critical Circumstances).



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                                                                                        Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices                                                    53417

                                                  hot-rolled steel from Brazil.8 For a                             Suspension of Liquidation                             Notification Regarding Administrative
                                                  complete discussion, see the ‘‘Critical                             As a result of our Preliminary                     Protective Orders
                                                  Circumstances’’ section of the Issues                            Determination and pursuant to section                   In the event that the ITC issues a final
                                                  and Decision Memorandum.                                         703(d) of the Act, we instructed U.S.                 negative injury determination, this
                                                  Final Determination                                              Customs and Border Protection (CBP) to                notice will serve as the only reminder
                                                                                                                   suspend liquidation of all entries of hot-            to parties subject to an APO of their
                                                     In accordance with section                                    rolled steel from Brazil, that were                   responsibility concerning the
                                                  705(c)(1)(B)(i) of the Act, we calculated                        entered, or withdrawn from warehouse,                 destruction of proprietary information
                                                  a rate for Usiminas and CSN, the                                 for consumption on or after October 17,               disclosed under APO in accordance
                                                  exporters/producers of subject                                   2015, for CSN and Usiminas, for which                 with 19 CFR 351.305(a)(3). Timely
                                                  merchandise selected for individual                              we found critical circumstances exist,                written notification of the return/
                                                  examination in this investigation.                               and on or after January 15, 2016, the                 destruction of APO materials or
                                                     In accordance with sections                                   date of the publication of the                        conversion to judicial protective order is
                                                  705(c)(1)(B)(i)(I) and 705(c)(5)(A) of the                       Preliminary Determination in the                      hereby requested. Failure to comply
                                                  Act, for companies not individually                              Federal Register, for all other exporters.            with the regulations and terms of an
                                                  investigated, we apply an ‘‘all others’’                         In accordance with section 703(d) of the              APO is a violation which is subject to
                                                  rate, which is normally calculated by                            Act, we instructed CBP to discontinue                 sanction.
                                                                                                                   the suspension of liquidation for                       This determination is issued and
                                                  weighting the subsidy rates of the
                                                                                                                   countervailing duty (CVD) purposes for                published pursuant to sections 705(d)
                                                  individual companies selected as
                                                                                                                   subject merchandise entered, or                       and 777(i) of the Act and 19 CFR
                                                  mandatory respondents by those
                                                                                                                   withdrawn from warehouse, on or after                 351.201(c).
                                                  companies’ exports of the subject
                                                  merchandise to the United States. Under                          May 14, 2016, but to continue the                       Dated: August 4, 2016.
                                                  section 705(c)(5)(A)(i) of the Act, the all-                     suspension of liquidation of all entries              Ronald K. Lorentzen,
                                                  others rate excludes zero and de                                 from October 17, 2015, or January 15,                 Acting Assistant Secretary for Enforcement
                                                                                                                   2016, as applicable, through May 14,                  and Compliance.
                                                  minimis rates calculated for the
                                                                                                                   2016. As a result of our negative critical
                                                  exporters and producers individually                                                                                   Appendix I—Scope of the Investigation
                                                                                                                   circumstances determination for
                                                  investigated as well as any rates based
                                                                                                                   Usiminas, we will instruct CBP to                       The products covered by this investigation
                                                  entirely on facts otherwise available,
                                                                                                                   discontinue the suspension of                         are certain hot-rolled, flat-rolled steel
                                                  pursuant to section 776 of the Act.                                                                                    products, with or without patterns in relief,
                                                                                                                   liquidation, and to liquidate, without
                                                  Neither of the respondents’ rates was                                                                                  and whether or not annealed, painted,
                                                                                                                   regard to countervailing duties, subject
                                                  zero or de minimis or based entirely on                                                                                varnished, or coated with plastics or other
                                                                                                                   merchandise exported by Usiminas and
                                                  facts otherwise available.                                                                                             non-metallic substances. The products
                                                                                                                   entered, or withdrawn from warehouse,
                                                  Notwithstanding the language of section                                                                                covered do not include those that are clad,
                                                                                                                   on or after October 17, 2015 and before               plated, or coated with metal. The products
                                                  705(c)(5)(A)(i) of the Act, we did not
                                                                                                                   January 15, 2016.                                     covered include coils that have a width or
                                                  calculate the ‘‘all-others’’ rate by weight
                                                                                                                      If the U.S. International Trade                    other lateral measurement (‘‘width’’) of 12.7
                                                  averaging the rates of the two
                                                                                                                   Commission (ITC) issues a final                       mm or greater, regardless of thickness, and
                                                  individually investigated respondents
                                                                                                                   affirmative injury determination, we                  regardless of form of coil (e.g., in
                                                  using their actual export sales data,                                                                                  successively superimposed layers, spirally
                                                                                                                   will issue a CVD order and will reinstate
                                                  because doing so risks disclosure of                                                                                   oscillating, etc.). The products covered also
                                                                                                                   the suspension of liquidation under
                                                  proprietary information. Instead, we                                                                                   include products not in coils (e.g., in straight
                                                                                                                   section 706(a) of the Act and will
                                                  calculated the all-others rate using the                                                                               lengths) of a thickness of less than 4.75 mm
                                                                                                                   require a cash deposit of estimated                   and a width that is 12.7 mm or greater and
                                                  simple average of the respondents’
                                                                                                                   CVDs for such entries of subject                      that measures at least 10 times the thickness.
                                                  calculated rates.9 The estimated
                                                                                                                   merchandise in the amounts indicated                  The products described above may be
                                                  countervailable subsidy rates are as
                                                                                                                   above. If the ITC determines that                     rectangular, square, circular, or other shape
                                                  follows:
                                                                                                                   material injury, or threat of material                and include products of either rectangular or
                                                                                                                   injury, does not exist, this proceeding               non-rectangular cross-section where such
                                                                                                       Subsidy                                                           cross-section is achieve subsequent to the
                                                                   Company                              rate       will be terminated and all estimated
                                                                                                                   duties deposited or securities posted as              rolling process, i.e., products which have
                                                                                                      (percent)
                                                                                                                                                                         been ‘‘worked after rolling’’ (e.g., products
                                                                                                                   a result of the suspension of liquidation
                                                                                                                                                                         which have been beveled or rounded at the
                                                  Companhia Siderurgica Nacional                                   will be refunded or canceled.                         edges). For purposes of the width and
                                                     (CSN) ........................................       11.30
                                                                                                                   ITC Notification                                      thickness requirements referenced above:
                                                  Usinas Siderurgicas de Minas                                                                                             (1) Where the nominal and actual
                                                     Gerais S.A. (Usiminas) .............                 11.09      In accordance with section 705(d) of                measurements vary, a product is within the
                                                  All Others ......................................       11.20    the Act, we will notify the ITC of our                scope if application of either the nominal or
                                                                                                                   determination. In addition, we are                    actual measurement would place it within
                                                                                                                   making available to the ITC all non-                  the scope based on the definitions set forth
                                                     8 See Issues and Decision Memorandum; see also
                                                                                                                   privileged and non-proprietary                        above unless the resulting measurement
                                                  Memorandum ‘‘Calculations for Final
                                                  Determination of Critical Circumstances in the                   information related to this investigation.            makes the product covered by the existing
                                                                                                                                                                         antidumping 1 or countervailing duty 2 orders
                                                  Countervailing Duty Investigation of Certain Hot-                We will allow the ITC access to all
                                                  Rolled Steel Flat Products from Brazil,’’ dated                  privileged and business proprietary
mstockstill on DSK3G9T082PROD with NOTICES




                                                  concurrently with this notice.                                                                                            1 Notice of Amendment of Final Determinations
                                                     9 See Memorandum to Dana S. Mermelstein,                      information in our files, provided the                of Sales at Less Than Fair Value and Antidumping
                                                  Program Manager, AD/CVD Operations, Office I,                    ITC confirms that it will not disclose                Duty Orders: Certain Cut-To-Length Carbon-Quality
                                                  ‘‘Final Affirmative Countervailing Duty                          such information, either publicly or                  Steel Plate Products From France, India, Indonesia,
                                                  Determination: Hot-Rolled Steel Flat Products from               under an administrative protective order              Italy, Japan and the Republic of Korea, 65 FR 6585
                                                  Brazil; Calculation of the All Others Rate for the                                                                     (February 10, 2000).
                                                  Final Determination in the Countervailing Duty
                                                                                                                   (APO), without the written consent of                    2 Notice of Amended Final Determinations:

                                                  Investigation of Hot-Rolled Steel Flat Products from             the Assistant Secretary for Enforcement               Certain Cut-to-Length Carbon-Quality Steel Plate
                                                  Brazil,’’ dated concurrently with this notice.                   and Compliance.                                                                                 Continued




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                                                  53418                          Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices

                                                  on Certain Cut-To-Length Carbon-Quality                 scope of this investigation unless specifically         7212.50.0000, 7214.91.0015, 7214.91.0060,
                                                  Steel Plate Products From the Republic of               excluded. The following products are outside            7214.91.0090, 7214.99.0060, 7214.99.0075,
                                                  Korea (A–580–836; C–580–837), and                       of and/or specifically excluded from the                7214.99.0090, 7215.90.5000, 7226.99.0180,
                                                     (2) Where the width and thickness vary for           scope of this investigation:                            and 7228.60.6000.
                                                  a specific product (e.g., the thickness of                 • Universal mill plates (i.e., hot-rolled,             The HTSUS subheadings above are
                                                  certain products with non-rectangular cross-            flat-rolled products not in coils that have             provided for convenience and U.S. Customs
                                                  section, the width of certain products with             been rolled on four faces or in a closed box            purposes only. The written description of the
                                                  non-rectangular shape, etc.), the                       pass, of a width exceeding 150 mm but not               scope of the investigation is dispositive.
                                                  measurement at its greatest width or                    exceeding 1250 mm, of a thickness not less
                                                  thickness applies.                                      than 4.0 mm, and without patterns in relief);           Appendix II—List of Topics Discussed
                                                     Steel products included in the scope of this            • Products that have been cold-rolled                in the Issues and Decision
                                                  investigation are products in which: (1) Iron           (cold-reduced) after hot-rolling; 3                     Memorandum
                                                  predominates, by weight, over each of the                  • Ball bearing steels; 4
                                                  other contained elements; (2) the carbon                   • Tool steels; 5 and                                 I. Summary
                                                  content is 2 percent or less, by weight; and               • Silico-manganese steels; 6                            Issues
                                                  (3) none of the elements listed below exceeds              The products subject to this investigation           II. Background
                                                  the quantity, by weight, respectively                   are currently classified in the Harmonized                 A. Case History
                                                  indicated:                                              Tariff Schedule of the United States (HTSUS)               B. Period of Investigation
                                                     • 2.50 percent of manganese, or                      under item numbers: 7208.10.1500,                       III. Final Determination of Critical
                                                     • 3.30 percent of silicon, or                        7208.10.3000, 7208.10.6000, 7208.25.3000,                     Circumstances, in Part
                                                     • 1.50 percent of copper, or                         7208.25.6000, 7208.26.0030, 7208.26.0060,               IV. Scope of the Investigation
                                                     • 1.50 percent of aluminum, or                       7208.27.0030, 7208.27.0060, 7208.36.0030,               V. Use of Adverse Facts Available
                                                     • 1.25 percent of chromium, or                       7208.36.0060, 7208.37.0030, 7208.37.0060,               VI. Subsidies Valuation
                                                     • 0.30 percent of cobalt, or                         7208.38.0015, 7208.38.0030, 7208.38.0090,                  A. Allocation Period
                                                     • 0.40 percent of lead, or                           7208.39.0015, 7208.39.0030, 7208.39.0090,                  B. Attribution of Subsidies
                                                     • 2.00 percent of nickel, or                         7208.40.6030, 7208.40.6060, 7208.53.0000,                  C. Denominators
                                                     • 0.30 percent of tungsten, or                       7208.54.0000, 7208.90.0000, 7210.70.3000,               VII. Interest Rates Benchmarks and Discount
                                                     • 0.80 percent of molybdenum, or                     7211.14.0030, 7211.14.0090, 7211.19.1500,                     Rates
                                                     • 0.10 percent of niobium, or                        7211.19.2000, 7211.19.3000, 7211.19.4500,               VIII. Analysis of Programs
                                                     • 0.30 percent of vanadium, or                       7211.19.6000, 7211.19.7530, 7211.19.7560,                  A. Programs Determined To Be
                                                     • 0.30 percent of zirconium.                         7211.19.7590, 7225.11.0000, 7225.19.0000,                     Countervailable
                                                     Unless specifically excluded, products are           7225.30.3050, 7225.30.7000, 7225.40.7000,                  B. Program Determined To Be Not
                                                  included in this scope regardless of levels of          7225.99.0090, 7226.11.1000, 7226.11.9030,                     Countervailable
                                                  boron and titanium.                                     7226.11.9060, 7226.19.1000, 7226.19.9000,                  C. Programs Determined To Be Not Used,
                                                     For example, specifically included in this           7226.91.5000, 7226.91.7000, and                               or Not To Confer a Measurable Benefit,
                                                  scope are vacuum degassed, fully stabilized             7226.91.8000. The products subject to the                     During the POI
                                                  (commonly referred to as interstitial-free (IF))        investigation may also enter under the                     D. Program Determined Not To Exist
                                                  steels, high strength low alloy (HSLA) steels,          following HTSUS numbers: 7210.90.9000,                  IX. Analysis of Comments
                                                  the substrate for motor lamination steels,              7211.90.0000, 7212.40.1000, 7212.40.5000,                  Comment 1: Whether To Apply AFA to
                                                  Advanced High Strength Steels (AHSS), and                                                                             Both the GOB and Respondents for the
                                                  Ultra High Strength Steels (UHSS). IF steels               3 For purposes of this scope exclusion, rolling            Reduction of IPI for Machines and
                                                  are recognized as low carbon steels with                operations such as a skin pass, levelling, temper             Equipment Program
                                                  micro-alloying levels of elements such as               rolling or other minor rolling operations after the        Comment 2: Whether the Reduction of IPI
                                                  titanium and/or niobium added to stabilize              hot-rolling process for purposes of surface finish,           for Machines and Equipment Program Is
                                                  carbon and nitrogen elements. HSLA steels               flatness, shape control, or gauge control do not
                                                                                                                                                                        Countervailable
                                                  are recognized as steels with micro-alloying            constitute cold-rolling sufficient to meet this
                                                                                                          exclusion.                                                 Comment 3: Whether To Apply AFA for
                                                  levels of elements such as chromium, copper,
                                                                                                             4 Ball bearing steels are defined as steels which          the Ex-Tarifário Program
                                                  niobium, titanium, vanadium, and
                                                                                                          contain, in addition to iron, each of the following        Comment 4: Whether Ex-Tarifário is De
                                                  molybdenum. The substrate for motor
                                                                                                          elements by weight in the amount specified: (i) Not           Facto Specific
                                                  lamination steels contains micro-alloying
                                                                                                          less than 0.95 nor more than 1.13 percent of carbon;       Comment 5: Whether Ex-Tarifário Provides
                                                  levels of elements such as silicon and                  (ii) not less than 0.22 nor more than 0.48 percent            a Financial Contribution
                                                  aluminum. AHSS and UHSS are considered                  of manganese; (iii) none, or not more than 0.03            Comment 6: Whether the FINAME Loan
                                                  high tensile strength and high elongation               percent of sulfur; (iv) none, or not more than 0.03           Program Is Specific
                                                  steels, although AHSS and UHSS are covered              percent of phosphorus; (v) not less than 0.18 nor
                                                                                                                                                                     Comment 7: Whether To Apply AFA to
                                                  whether or not they are high tensile strength           more than 0.37 percent of silicon; (vi) not less than
                                                  or high elongation steels.                              1.25 nor more than 1.65 percent of chromium; (vii)            Determine the Benefit of the FINAME
                                                     Subject merchandise includes hot-rolled              none, or not more than 0.28 percent of nickel; (viii)         Program
                                                  steel that has been further processed in a              none, or not more than 0.38 percent of copper; and         Comment 8: Whether To Re-Calculate the
                                                  third country, including but not limited to             (ix) none, or not more than 0.09 percent of                   FINAME Program for Usiminas
                                                                                                          molybdenum.                                                Comment 9: Whether To Use a Company-
                                                  pickling, oiling, levelling, annealing,                    5 Tool steels are defined as steels which contain
                                                  tempering, temper rolling, skin passing,                                                                              Specific Interest Rate Benchmark To
                                                                                                          the following combinations of elements in the                 Calculate the FINAME Program Benefit
                                                  painting, varnishing, trimming, cutting,                quantity by weight respectively indicated: (i) More
                                                  punching, and/or slitting, or any other                                                                               for Usiminas
                                                                                                          than 1.2 percent carbon and more than 10.5 percent
                                                  processing that would not otherwise remove              chromium; or (ii) not less than 0.3 percent carbon
                                                                                                                                                                     Comment 10: Whether the Integrated
                                                  the merchandise from the scope of the                   and 1.25 percent or more but less than 10.5 percent           Drawback Scheme Is Countervailable
                                                  investigation if performed in the country of            chromium; or (iii) not less than 0.85 percent carbon       Comment 11: Whether Usiminas Received
                                                  manufacture of the hot-rolled steel.                    and 1 percent to 1.8 percent, inclusive, manganese;           a Benefit From the Integrated Drawback
                                                     All products that meet the written physical          or (iv) 0.9 percent to 1.2 percent, inclusive,                Scheme
                                                                                                          chromium and 0.9 percent to 1.4 percent, inclusive,        Comment 12: Whether Reintegra Is
mstockstill on DSK3G9T082PROD with NOTICES




                                                  description, and in which the chemistry
                                                                                                          molybdenum; or (v) not less than 0.5 percent carbon           Countervailable
                                                  quantities do not exceed any one of the noted           and not less than 3.5 percent molybdenum; or (vi)
                                                  element levels listed above, are within the                                                                        Comment 13: Whether to Recalculate the
                                                                                                          not less than 0.5 percent carbon and not less than
                                                                                                          5.5 percent tungsten.
                                                                                                                                                                        Reintegra Subsidy Rate
                                                  From India and the Republic of Korea; and Notice           6 Silico-manganese steel is defined as steels           Comment 14: Whether CSN Applied for/
                                                  of Countervailing Duty Orders: Certain Cut-To-          containing by weight: (i) Not more than 0.7 percent           Used the Reintegra Program During the
                                                  Length Carbon-Quality Steel Plate From France,          of carbon; (ii) 0.5 percent or more but not more than         POI
                                                  India, Indonesia, Italy, and the Republic of Korea,     1.9 percent of manganese, and (iii) 0.6 percent or         Comment 15: Whether the Exemption of
                                                  65 FR 6587 (February 10, 2000).                         more but not more than 2.3 percent of silicon.                Payroll Tax Is Countervailable



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                                                                                Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices                                                   53419

                                                    Comment 16: Whether Subsidies Provided                published the Preliminary                              Verification
                                                      to UMSA Should Be Attributed to                     Determination, as well as a full
                                                      Usiminas                                                                                                     As provided in section 782(i) of the
                                                                                                          discussion of the issues raised by parties             Act, in January, April, and June 2016,
                                                    Comment 17: Whether the Economic
                                                      Subvention to National Innovation
                                                                                                          for this final determination, may be                   the Department verified the sales, cost,
                                                      Program Is Not Countervailable                      found in the Final Issues and Decision                 and further manufacturing data reported
                                                    Comment 18: Whether FINEP’s Economic                  Memorandum.2                                           by the mandatory respondents Hyundai
                                                      Subvention Program Has Not Conferred                   Also, as explained in the                           Steel Company and POSCO,5 pursuant
                                                      a Measurable Benefit                                memorandum from the Acting Assistant                   to section 782(i) of the Act. We used
                                                    Comment 19: Whether the Bahia State                   Secretary for Enforcement and                          standard verification procedures,
                                                      Industrial Development and Economic
                                                                                                          Compliance, the Department exercised                   including an examination of relevant
                                                      Integration Program (Desenvolve) Is De
                                                      Jure Specific                                       its authority to toll all administrative               accounting and production records, and
                                                    Comment 20: Whether the GOB’s                         deadlines due to the closure of the                    original source documents provided by
                                                      References to Web sites Constitute a Full           Federal Government.3 As a                              respondents.
                                                      Response                                            consequence, all deadlines in this
                                                                                                                                                                 Use of Adverse Facts Available
                                                  X. Recommendation                                       segment of the proceeding have been
                                                  [FR Doc. 2016–19376 Filed 8–11–16; 8:45 am]             extended by four business days.                           In making this final determination,
                                                  BILLING CODE 3510–DS–P
                                                                                                                                                                 the Department relied, in part, on facts
                                                                                                          Scope of the Investigation                             available for both POSCO and Hyundai
                                                                                                             The products covered by this                        Steel Company. Furthermore, because
                                                  DEPARTMENT OF COMMERCE                                  investigation are certain hot-rolled steel             Hyundai Steel Company did not act to
                                                                                                          flat products from Korea. For a complete               the best of its ability in responding to
                                                  International Trade Administration                      description of the scope of this                       certain of the Department’s requests for
                                                                                                          investigation, see the ‘‘Scope of the                  information, we drew an adverse
                                                  [A–580–883]
                                                                                                          Investigation,’’ in Appendix II of this                inference where appropriate in selecting
                                                  Certain Hot-Rolled Steel Flat Products                  notice.                                                from among the facts otherwise
                                                  From the Republic of Korea: Final                                                                              available.6 For further information, see
                                                                                                          Analysis of Comments Received                          the accompanying Final Issues and
                                                  Determination of Sales at Less Than
                                                  Fair Value                                                 All issues raised in the case and                   Decision Memorandum.
                                                                                                          rebuttal briefs by parties in this                     Changes to the Margin Calculations
                                                  AGENCY:   Enforcement and Compliance,
                                                                                                          investigation are addressed in the Final               Since the Preliminary Determination
                                                  International Trade Administration,
                                                                                                          Issues and Decision Memorandum,                           Based on our analysis of the
                                                  Department of Commerce.
                                                                                                          which is hereby adopted by this notice.4               comments received and our findings at
                                                  SUMMARY: The Department of Commerce
                                                                                                          A list of the issues raised is attached to             verification, we made certain changes to
                                                  (Department) determines that certain                    this notice as Appendix I. The Final
                                                  hot-rolled steel flat products (hot-rolled                                                                     the margin calculations for Hyundai
                                                                                                          Issues and Decision Memorandum is a                    Steel Company and POSCO. For a
                                                  steel) from the Republic of Korea                       public document and is on file
                                                  (Korea) are being, or are likely to be,                                                                        discussion of these changes, see the
                                                                                                          electronically via Enforcement and                     Final Issues and Decision
                                                  sold in the United States at less than fair             Compliance’s Antidumping and
                                                  value (LTFV). The period of                                                                                    Memorandum. We have also revised the
                                                                                                          Countervailing Duty Centralized                        all-others rate in accordance with the
                                                  investigation (POI) is July 1, 2014,                    Electronic Service System (ACCESS).
                                                  through June 30, 2015. The final                                                                               methodology described below.
                                                                                                          ACCESS is available to registered users
                                                  estimated weighted-average dumping                      at https://access.trade.gov and it is                  All-Others Rate
                                                  margins are listed below in the ‘‘Final                 available to all parties in the Central                  Consistent with sections
                                                  Determination’’ section of this notice.                 Records Unit, room B–8024 of the main                  735(c)(1)(B)(i)(II) and 735(c)(5) of the
                                                  DATES: Effective August 12, 2016.                       Department of Commerce building. In                    Act, the Department also calculated an
                                                  FOR FURTHER INFORMATION CONTACT:                        addition, a complete version of the Final              estimated all-others rate. Section
                                                  Javier Barrientos or Matthew Renkey,                    Issues and Decision Memorandum can                     735(c)(5)(A) of the Act provides that the
                                                  AD/CVD Operations, Office V,                            be accessed directly at http://                        estimated all-others rate shall be an
                                                  Enforcement and Compliance,                             enforcement.trade.gov/frn/index.html.                  amount equal to the weighted average of
                                                  International Trade Administration,                     The signed and electronic versions of                  the estimated weighted-average
                                                  U.S. Department of Commerce, 14th                       the Final Issues and Decision                          dumping margins established for
                                                  Street and Constitution Avenue, NW.,                    Memorandum are identical in content.                   exporters and producers individually
                                                  Washington, DC 20230; telephone: (202)                                                                         investigated, excluding any zero and de
                                                  482–2243 or (202) 482–2312,                               2 See Memorandum from Christian Marsh, Deputy        minimis margins, and any margins
                                                  respectively.                                           Assistant Secretary for Antidumping and                determined entirely under section 776
                                                                                                          Countervailing Duty Operations, to Ronald K.           of the Act. Where the rates for
                                                  SUPPLEMENTARY INFORMATION:                              Lorentzen, Acting Assistant Secretary for
                                                                                                          Enforcement and Compliance, ‘‘Issues and Decision      investigated companies are zero or de
                                                  Background                                                                                                     minimis, or based entirely on facts
                                                                                                          Memorandum for the Final Affirmative
                                                    The Department published the                          Determination in the Antidumping Duty                  otherwise available, section 735(c)(5)(B)
                                                  preliminary determination on March 22,                  Investigation of Certain Hot-Rolled Steel Flat         of the Act instructs the Department to
                                                                                                          Products from the Republic of Korea,’’ (Final Issues
                                                  2016.1 A summary of the events that                                                                            establish an ‘‘all others’’ rate using ‘‘any
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                          and Decision Memorandum), dated concurrently
                                                  occurred since the Department                           with this determination and hereby adopted by this     reasonable method.’’
                                                                                                          notice.
                                                    1 See Certain Hot-Rolled Steel Flat Products from       3 See Memorandum to the File from Ron                  5 We are continuing to collapse the mandatory

                                                  the Republic of Korea: Affirmative Preliminary          Lorentzen, Acting A/S for Enforcement &                respondent POSCO and Daewoo International
                                                  Determination of Sales at Less than Fair Value and      Compliance, ‘‘Tolling of Administrative Deadlines      Corporation (DWI), and henceforward refer to the
                                                  Postponement of Final Determination, 81 FR 15228        As a Result of the Government Closure During           collapsed entity as ‘‘POSCO.’’ See Preliminary
                                                  (March 22, 2016) (Preliminary Determination), and       Snowstorm Jonas,’’ dated January 27, 2016.             Determination, 81 FR at 15229.
                                                  accompanying Preliminary Decision Memorandum.             4 See Final Issues and Decision Memorandum.            6 See sections 776(a) and (b) of the Act.




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Document Created: 2018-02-09 11:32:59
Document Modified: 2018-02-09 11:32:59
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 August 12, 2016.
ContactSergio Balbontin, Nicholas Czajkowski, or Lana Nigro, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482- 6478, (202) 482-1395, and (202) 482-1779, respectively.
FR Citation81 FR 53416 

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