81 FR 53433 - Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat Products From the Republic of Turkey: Final Affirmative Determination

DEPARTMENT OF COMMERCE
International Trade Administration

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

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) from the Republic of Turkey (Turkey). 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, Number 156 (Friday, August 12, 2016)]
[Notices]
[Pages 53433-53436]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19379]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-827]


Countervailing Duty Investigation of Certain Hot-Rolled Steel 
Flat Products From the Republic of Turkey: Final Affirmative 
Determination

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) from the 
Republic of Turkey (Turkey). For information on the estimated subsidy 
rates, see the ``Final

[[Page 53434]]

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: Emily Halle or Gene Calvert, AD/CVD 
Operations, Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-0176 
or (202) 482-3586, 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 the Republic of Turkey: Preliminary 
Negative Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 81 FR 2166 
(January 15, 2016) (Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Hot-Rolled Steel Flat Products from the Republic of 
Turkey,'' (Issues and Decision Memorandum), dated concurrently with 
this determination and hereby adopted by this notice.
---------------------------------------------------------------------------

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, ``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,''(March 14, 2016) (Preliminary 
Scope Determination).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \4\ See Preliminary Determination and accompanying Preliminary 
Decision Memorandum at ``Scope Comments.''
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are hot-rolled steel 
from Turkey. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix I of 
this notice.

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 responded in the Issues and 
Decision Memorandum, is attached to this notice at Appendix II.

Use of Adverse Facts Available

    The Department, in making these findings, relied, in part, on facts 
available and, because one or more respondents failed to cooperate by 
not acting to the best of their ability, we made adverse inferences.\5\ 
For the final determination, we are basing the countervailing duty 
(CVD) rate for Eregli Demir ve Celik Fabrikalari T.A.S. (Erdemir), in 
part, on facts otherwise available, pursuant to sections 776(a)(2)(A), 
(C) and (D) of the Tariff Act of 1930, as amended (the Act). Further, 
because the Government of Turkey did not cooperate to the best of its 
ability in this investigation, we also determine that an adverse 
inference is warranted, pursuant to section 776(b) of the Act. For 
further information, see the section ``Use of Facts Otherwise Available 
and Adverse Inferences,'' in the Issues and Decision Memorandum.
---------------------------------------------------------------------------

    \5\ See Sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, and minor corrections presented at verification, we made 
certain changes to the respondents' subsidy rate calculations set forth 
in the Preliminary Determination. For a discussion of these changes, 
see the Issues and Decision Memorandum and the Final Analysis 
Memoranda.\6\
---------------------------------------------------------------------------

    \6\ See Issues and Decision Memorandum; see also Memoranda, 
``Final Determination Analysis for Colakoglu Dis Ticaret A.S.,'' and 
``Final Determination Analysis for Eregli Demir ve Celik Fabrikalari 
T.A.S.,'' both dated concurrently with this determination and hereby 
adopted by this notice.
---------------------------------------------------------------------------

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
determined a countervailable subsidy rate for each individually 
investigated exporters/producers of the subject merchandise (i.e., 
Erdemir and Colakoglu Dis Ticaret A.S.). Section 705(c)(5)(A)(i) of the 
Act states that for companies not individually investigated, we will 
determine an ``all others'' rate equal to the weighted average of the 
countervailable subsidy rates established for exporters and producers 
individually investigated, excluding any de minimis countervailable 
subsidy rates and rates determined entirely by adverse facts available. 
In this investigation, the only non-de minimis rate is the rate 
calculated for Erdemir. Consequently, the rate calculated for Erdemir 
is assigned as the ``all others'' rate.
    We determine the estimated net countervailable subsidy rates are as 
follows.

------------------------------------------------------------------------
                  Company                           Subsidy rate
------------------------------------------------------------------------
Colakoglu Dis Ticaret A.S.................  0.34 percent (de minimis).
Eregli Demir ve Celik Fabrikalari T.A.S...  6.01 percent ad valorem.
All-Others................................  6.01 percent ad valorem.
------------------------------------------------------------------------

Disclosure

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

Suspension of Liquidation

    Because the Preliminary Determination was negative, we did not 
instruct U.S. Customs and Border Protection (CBP) to suspend entries of 
subject merchandise. In accordance with sections 705(c)(1)(C) of the 
Act, we are now directing CBP to suspend liquidation of and to require 
the posting of a cash deposit on all imports of the subject merchandise 
from Turkey, other than those produced and exported by Colakoglu Dis 
Ticaret A.S. because its rate is de minimis, that are entered, or 
withdrawn from warehouse, for

[[Page 53435]]

consumption on or after the date of publication of this notice in the 
Federal Register. The suspension of liquidation will remain in effect 
until further notice. In addition, pursuant to section 705(c)(1)(B)(ii) 
of the Act, we are directing CBP to require a cash deposit for such 
entries of merchandise in the amount indicated above.
    As our final determination is affirmative and our preliminary 
determination was negative, in accordance with section 705(b)(3) of the 
Act, the U.S. International Trade Commission (ITC) will determine 
within 75 days whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports or sales (or the likelihood of sales) for importation of the 
subject merchandise. We will issue a CVD order if the ITC issues a 
final affirmative injury determination. 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 the ITC issues a final negative injury determination, 
this notice serves as the only reminder to parties subject to APO of 
their responsibility concerning the return or 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 that is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(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 \7\ or countervailing duty \8\ 
orders on Certain Cut-To-Length Carbon-Quality Steel Plate Products 
From the Republic of Korea (A-580-836; C-580-837), and
---------------------------------------------------------------------------

    \7\ Notice of Amendment of Final Determinations of Sales at Less 
Than Fair Value and Antidumping Duty Orders: Certain Cut-To-Length 
Carbon-Quality Steel Plate Products From France, India, Indonesia, 
Italy, Japan and the Republic of Korea, 65 FR 6585 (February 10, 
2000).
    \8\ 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).
---------------------------------------------------------------------------

    (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; \9\
---------------------------------------------------------------------------

    \9\ For purposes of this scope exclusion, rolling operations 
such as a skin pass, levelling, temper rolling or other minor 
rolling operations after the hot-rolling process for purposes of 
surface finish, flatness, shape control, or gauge control do not 
constitute cold-rolling sufficient to meet this exclusion.
---------------------------------------------------------------------------

     Ball bearing steels; \10\
---------------------------------------------------------------------------

    \10\ Ball bearing steels are defined as steels which contain, in 
addition to iron, each of the following elements by weight in the 
amount specified: (i) Not less than 0.95 nor more than 1.13 percent 
of carbon; (ii) not less than 0.22 nor more than 0.48 percent of 
manganese; (iii) none, or not more than 0.03 percent of sulfur; (iv) 
none, or not more than 0.03 percent of phosphorus; (v) not less than 
0.18 nor more than 0.37 percent of silicon; (vi) not less than 1.25 
nor more than 1.65 percent of chromium; (vii) none, or not more than 
0.28 percent of nickel; (viii) none, or not more than 0.38 percent 
of copper; and (ix) none, or not more than 0.09 percent of 
molybdenum.

---------------------------------------------------------------------------

[[Page 53436]]

     Tool steels; \11\ and
---------------------------------------------------------------------------

    \11\ Tool steels are defined as steels which contain the 
following combinations of elements in the quantity by weight 
respectively indicated: (i) More than 1.2 percent carbon and more 
than 10.5 percent chromium; or (ii) not less than 0.3 percent carbon 
and 1.25 percent or more but less than 10.5 percent chromium; or 
(iii) not less than 0.85 percent carbon and 1 percent to 1.8 
percent, inclusive, manganese; or (iv) 0.9 percent to 1.2 percent, 
inclusive, chromium and 0.9 percent to 1.4 percent, inclusive, 
molybdenum; or (v) not less than 0.5 percent carbon and not less 
than 3.5 percent molybdenum; or (vi) not less than 0.5 percent 
carbon and not less than 5.5 percent tungsten.
---------------------------------------------------------------------------

     Silico-manganese steels; \12\
---------------------------------------------------------------------------

    \12\ Silico-manganese steel is defined as steels containing by 
weight: (i) Not more than 0.7 percent of carbon; (ii) 0.5 percent or 
more but not more than 1.9 percent of manganese, and (iii) 0.6 
percent or more but not more than 2.3 percent of silicon.
---------------------------------------------------------------------------

    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 and Border Protection 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
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Subsidies Valuation Information
VI. Benchmarks and Interest Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Analysis of Comments
    Comment 1: Whether Changes in the Ownership (CIO) of Erdemir's 
Affiliates Resulted in Countervailable Subsidies to Erdemir
    Comment 2: Whether the Government of Turkey's (GOT's) Sale of 
Erdemir to OYAK Resulted in a Privatization that Extinguished the 
Benefits of Prior Subsidies to Erdemir
    Comment 3: Export Sales Denominator for COTAS and Colakoglu 
Metalurji
    Comment 4: COTAS's Rediscount Program Benchmark
    Comment 5: Whether the Department Should Correct Certain Errors 
in Erdemir's Preliminary Calculations
X. Recommendation

[FR Doc. 2016-19379 Filed 8-11-16; 8:45 am]
 BILLING CODE 3510-DS-P