81_FR_53595 81 FR 53439 - Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat Products From the Republic of Korea: Final Affirmative Determination

81 FR 53439 - Countervailing Duty Investigation of Certain Hot-Rolled Steel Flat Products From the Republic of Korea: Final Affirmative Determination

DEPARTMENT OF COMMERCE
International Trade Administration

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

Page Range53439-53441
FR Document2016-19377

The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers/exporters of certain hot-rolled steel flat products (hot-rolled steel) from the Republic of Korea (Korea). For information on the 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 53439-53441]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19377]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-580-884]


Countervailing Duty Investigation of Certain Hot-Rolled Steel 
Flat Products From the Republic of Korea: 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/exporters of 
certain hot-rolled steel flat products (hot-rolled steel) from the 
Republic of Korea (Korea). For information on the 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: Katie Marksberry, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-
7906.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the Preliminary Determination on January 
15, 2016.\1\ A summary of 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 Korea: Preliminary Negative 
Determination and Alignment of Final Determination With Final 
Antidumping Duty Determination, 81 FR 2172 (January 15, 2016) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum (PDM).
    \2\ See Memorandum to Paul Piquado, ``Issues and Decision 
Memorandum for the Final Determination in the Countervailing Duty 
Investigation of Certain Hot-Rolled Steel Flat Products from the 
Republic of Korea,'' dated August 4, 2016 (Issues and Decision 
Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

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

Use of Adverse Facts Available

    In making this final determination, the Department relied, in part, 
on facts available and, because POSCO and Hyundai Steel Co., Ltd. 
(Hyundai Steel) did not act to the best of their ability in responding 
to the Department's requests for information, we drew an adverse 
inference where appropriate in selecting from among the facts otherwise 
available.\3\ Specifically, we find that the application of adverse 
facts available is warranted for POSCO for its failure to report 
certain cross-owned input suppliers, and facilities located in a 
foreign economic zone (FEZ). We are also applying adverse facts 
available to POSCO's affiliated trading company, Daewoo International 
Corporation (DWI) \4\ for certain loans presented at verification. 
Further, we find that the application of adverse facts available is 
warranted for Hyundai Steel for its failure to report its location in 
an FEZ. For further information, see the section ``Use of Facts 
Otherwise Available and Adverse Inferences'' in the accompanying Issues 
and Decision Memorandum.
---------------------------------------------------------------------------

    \3\ See sections 776(a) and (b) of the Act.
    \4\ POSCO reported at verification that DWI changed its name to 
POSCO Daewoo Corporation (PDC) in March 2016. See IDM at 6.
---------------------------------------------------------------------------

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 Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for POSCO and Hyundai Steel, the two 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 respondents with 
those companies' export sales of the subject merchandise to the United 
States. Under section 705(c)(5)(A)(i) of the Act, the all-others rate 
should exclude zero and de minimis rates calculated for the exporters 
and producers individually investigated, and any rates determined 
entirely under section 776 of the Act. Therefore, we have excluded the 
rate calculated for POSCO because it was determined entirely under 
section 776 of the Act. Thus, for the ``all-others'' rate, we applied 
the rate calculated for Hyundai Steel.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
POSCO...................................................           57.04
Hyundai Steel Co., Ltd..................................            3.89
All-Others..............................................            3.89
------------------------------------------------------------------------


[[Page 53440]]

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

    In the Preliminary Determination, the total net countervailable 
subsidy rates for the individually examined respondents were de minimis 
and, therefore, we did not suspend liquidation of entries of certain 
hot-rolled steel flat products from the Republic of Korea. However, as 
the estimated subsidy rates for the examined companies are above de 
minimis in this final determination, we are directing U.S. Customs and 
Border Protection (CBP) to suspend liquidation of entries of hot-rolled 
steel from Korea that are entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register, and to require a cash deposit for such entries of 
merchandise in the amounts indicated above. The suspension of 
liquidation will remain in effect until further notice.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and 
instruct CBP to 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.

International Trade Commission 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 of Enforcement and Compliance.

Notification Regarding Administrative Protective Orders (APOs)

    In the event 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 disposition of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or destruction 
of APO materials or conversion to judicial protective order, is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation subject to sanction.
    This determination and notice are 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--List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available And Adverse Inferences
VIII. Analysis of Programs
IX. Analysis of Comments
    Comment 1: Whether the Department Should Apply Adverse Facts 
Available (AFA) to the Provision of Electricity for Less Than 
Adequate Remuneration (LTAR)
    Comment 2: Whether the Department Should Find That the Provision 
of Electricity for LTAR is a Countervailable Subsidy
    Comment 3: Whether the Department Should Use Other Bubmitted 
Data to Measure the Adequacy of Remuneration of Electricity
    Comment 4: Whether the Department Should Find the Provision of 
Natural Gas for LTAR Countervailable
    Comment 5: Application of AFA to POSCO and Treatment of POSCO's 
Unreported Affiliates
    Comment 6: Whether To Apply AFA to POSCO Global Research and 
Development (R&D) Center
    Comment 7: Whether To Apply AFA to Certain Loans Submitted at 
Verification
    Comment 8: Whether To Apply AFA to Hyundai Steel for Use of 
Certain Foreign Economic Zones (FEZs)
    Comment 9: The Department Improperly Countervailed Property Tax 
Exemptions Received by the Pohang Plant Under RSTA 78
    Comment 10: The Department's Methodology for Attributing RSTA 
Article 22 Benefits Received by Hyundai Corporation to Hyundai Steel 
Was Incorrect
    Comment 11: Whether Hyundai Steel Should Have Reported 
Additional ITIPA Grants
    Comment 12: Whether Hyundai Steel Should Have Provided a 
Questionnaire Response for Hyundai Green Power
X. Recommendation

Appendix II--Scope of the Investigation

    The products covered by this investigation are certain hot-
rolled, flat-rolled steel products, with or without patterns in 
relief, and whether or not annealed, painted, varnished, or coated 
with plastics or other non-metallic substances. The products covered 
do not include those that are clad, plated, or coated with metal. 
The products covered include coils that have a width or other 
lateral measurement (``width'') of 12.7 mm or greater, regardless of 
thickness, and regardless of form of coil (e.g., in successively 
superimposed layers, spirally oscillating, etc.). The products 
covered also include products not in coils (e.g., in straight 
lengths) of a thickness of less than 4.75 mm and a width that is 
12.7 mm or greater and that measures at least 10 times the 
thickness. The products described above may be rectangular, square, 
circular, or other shape and include products of either rectangular 
or non-rectangular cross-section where such cross-section is achieve 
subsequent to the rolling process, i.e., products which have been 
``worked after rolling'' (e.g., products which have been beveled or 
rounded at the edges). For purposes of the width and thickness 
requirements referenced above:
    (1) Where the nominal and actual measurements vary, a product is 
within the scope if application of either the nominal or actual 
measurement would place it within the scope based on the definitions 
set forth above unless the resulting measurement makes the product 
covered by the existing antidumping \5\ or countervailing duty \6\ 
orders on Certain Cut-To-Length Carbon-Quality Steel Plate Products 
From the Republic of Korea (A-580-836; C-580-837), and
---------------------------------------------------------------------------

    \5\ See Notice of Amendment of Final Determinations of Sales at 
Less Than Fair Value and Antidumping Duty Orders: Certain Cut-To-
Length Carbon-Quality Steel Plate Products From France, India, 
Indonesia, Italy, Japan and the Republic of Korea, 65 FR 6585 
(February 10, 2000).
    \6\ See 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

[[Page 53441]]

     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 investigations 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 these 
investigations unless specifically excluded. The following products 
are outside of and/or specifically excluded from the scope of this 
investigation:
     Universal mill plates (i.e., hot-rolled, flat-rolled 
products not in coils that have been rolled on four faces or in a 
closed box pass, of a width exceeding 150 mm but not exceeding 1250 
mm, of a thickness not less than 4.0 mm, and without patterns in 
relief);
     Products that have been cold-rolled (cold-reduced) 
after hot-rolling; \7\
---------------------------------------------------------------------------

    \7\ For purposes of this scope exclusion, rolling operations 
such as a skin pass, levelling, temper rolling or other minor 
rolling operations after the hot-rolling process for purposes of 
surface finish, flatness, shape control, or gauge control do not 
constitute cold-rolling sufficient to meet this exclusion.
---------------------------------------------------------------------------

     Ball bearing steels; \8\
---------------------------------------------------------------------------

    \8\ Ball bearing steels are defined as steels which contain, in 
addition to iron, each of the following elements by weight in the 
amount specified: (i) Not less than 0.95 nor more than 1.13 percent 
of carbon; (ii) not less than 0.22 nor more than 0.48 percent of 
manganese; (iii) none, or not more than 0.03 percent of sulfur; (iv) 
none, or not more than 0.03 percent of phosphorus; (v) not less than 
0.18 nor more than 0.37 percent of silicon; (vi) not less than 1.25 
nor more than 1.65 percent of chromium; (vii) none, or not more than 
0.28 percent of nickel; (viii) none, or not more than 0.38 percent 
of copper; and (ix) none, or not more than 0.09 percent of 
molybdenum.
---------------------------------------------------------------------------

     Tool steels; \9\ and
---------------------------------------------------------------------------

    \9\ Tool steels are defined as steels which contain the 
following combinations of elements in the quantity by weight 
respectively indicated: (i) More than 1.2 percent carbon and more 
than 10.5 percent chromium; or (ii) not less than 0.3 percent carbon 
and 1.25 percent or more but less than 10.5 percent chromium; or 
(iii) not less than 0.85 percent carbon and 1 percent to 1.8 
percent, inclusive, manganese; or (iv) 0.9 percent to 1.2 percent, 
inclusive, chromium and 0.9 percent to 1.4 percent, inclusive, 
molybdenum; or (v) not less than 0.5 percent carbon and not less 
than 3.5 percent molybdenum; or (vi) not less than 0.5 percent 
carbon and not less than 5.5 percent tungsten.
---------------------------------------------------------------------------

     Silico-manganese steels; \10\
---------------------------------------------------------------------------

    \10\ Silico-manganese steel is defined as steels containing by 
weight: (i) Not more than 0.7 percent of carbon; (ii) 0.5 percent or 
more but not more than 1.9 percent of manganese, and (iii) 0.6 
percent or more but not more than 2.3 percent of silicon.
---------------------------------------------------------------------------

    The products subject to this investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(``HTSUS'') under item numbers: 7208.10.1500, 7208.10.3000, 
7208.10.6000, 7208.25.3000, 7208.25.6000, 7208.26.0030, 
7208.26.0060, 7208.27.0030, 7208.27.0060, 7208.36.0030, 
7208.36.0060, 7208.37.0030, 7208.37.0060, 7208.38.0015, 
7208.38.0030, 7208.38.0090, 7208.39.0015, 7208.39.0030, 
7208.39.0090, 7208.40.6030, 7208.40.6060, 7208.53.0000, 
7208.54.0000, 7208.90.0000, 7210.70.3000, 7211.14.0030, 
7211.14.0090, 7211.19.1500, 7211.19.2000, 7211.19.3000, 
7211.19.4500, 7211.19.6000, 7211.19.7530, 7211.19.7560, 
7211.19.7590, 7225.11.0000, 7225.19.0000, 7225.30.3050, 
7225.30.7000, 7225.40.7000, 7225.99.0090, 7226.11.1000, 
7226.11.9030, 7226.11.9060, 7226.19.1000, 7226.19.9000, 
7226.91.5000, 7226.91.7000, and 7226.91.8000. The products subject 
to the investigation may also enter under the following HTSUS 
numbers: 7210.90.9000, 7211.90.0000, 7212.40.1000, 7212.40.5000, 
7212.50.0000, 7214.91.0015, 7214.91.0060, 7214.91.0090, 
7214.99.0060, 7214.99.0075, 7214.99.0090, 7215.90.5000, 
7226.99.0180, and 7228.60.6000.
    The HTSUS subheadings above are provided for convenience and 
U.S. Customs purposes only. The written description of the scope of 
the investigation is dispositive.

[FR Doc. 2016-19377 Filed 8-11-16; 8:45 am]
 BILLING CODE 3510-DS-P



                                                                                Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices                                                          53439

                                                  Appendix II                                             occurred since the Department                         suppliers, and facilities located in a
                                                  List of Topics Discussed in the Issues and
                                                                                                          published the Preliminary                             foreign economic zone (FEZ). We are
                                                  Decision Memorandum                                     Determination, as well as a full                      also applying adverse facts available to
                                                                                                          discussion of the issues raised by parties            POSCO’s affiliated trading company,
                                                  I. Summary
                                                  II. Background
                                                                                                          for this final determination, may be                  Daewoo International Corporation
                                                  III. Scope of the Investigation                         found in the Issues and Decision                      (DWI) 4 for certain loans presented at
                                                  IV. Margin Calculations                                 Memorandum.2 The Issues and Decision                  verification. Further, we find that the
                                                  V. Comparisons to Fair Value                            Memorandum is a public document and                   application of adverse facts available is
                                                  VI. Discussion of Issues                                is on file electronically via Enforcement             warranted for Hyundai Steel for its
                                                     Comment 1: Total Adverse Facts Available             and Compliance’s Antidumping and                      failure to report its location in an FEZ.
                                                     Comment 2: Level of Trade                            Countervailing Duty Centralized                       For further information, see the section
                                                     Comment 3: Home-Market Freight Revenue               Electronic Service System (ACCESS).                   ‘‘Use of Facts Otherwise Available and
                                                     Comment 4: CEP Credit Expense                        ACCESS is available to registered users               Adverse Inferences’’ in the
                                                     Comment 5: Restructuring and Impairment              at http://access.trade.gov, and is
                                                        Costs
                                                                                                                                                                accompanying Issues and Decision
                                                     Comment 6: Raw Material Costs
                                                                                                          available to all parties in the Central               Memorandum.
                                                     Comment 7: Energy Costs                              Records Unit, Room B8024, of the main
                                                                                                          Department of Commerce building. In                   Changes Since the Preliminary
                                                     Comment 8: Partial Adverse Facts
                                                                                                          addition, a complete version of the                   Determination
                                                        Available for Certain Sales
                                                     Comment 9: Verification Correction                   Issues and Decision Memorandum can                      Based on our analysis of the
                                                  VII. Recommendation                                     be accessed directly at http://
                                                                                                                                                                comments received from parties and the
                                                  [FR Doc. 2016–19374 Filed 8–11–16; 8:45 am]             enforcement.trade.gov/frn/. The signed
                                                                                                                                                                minor corrections presented, and
                                                                                                          Issues and Decision Memorandum and
                                                  BILLING CODE 3510–DS–P                                                                                        additional items discovered at
                                                                                                          the electronic version are identical in
                                                                                                                                                                verification, we made certain changes to
                                                                                                          content.
                                                                                                                                                                the respondents’ subsidy rate
                                                  DEPARTMENT OF COMMERCE                                  Scope of the Investigation                            calculations. For a discussion of these
                                                                                                            The products covered by this                        changes, see the Issues and Decision
                                                  International Trade Administration
                                                                                                          investigation are hot-rolled steel flat               Memorandum.
                                                  [C–580–884]                                             products from Korea. For a complete                   Final Determination
                                                  Countervailing Duty Investigation of                    description of the scope of this
                                                  Certain Hot-Rolled Steel Flat Products                  investigation, see the ‘‘Scope of the                    In accordance with section
                                                  From the Republic of Korea: Final                       Investigation,’’ in Appendix II of this               705(c)(1)(B)(i) of the Act, we calculated
                                                                                                          notice.                                               a rate for POSCO and Hyundai Steel, the
                                                  Affirmative Determination
                                                                                                                                                                two exporters/producers of subject
                                                                                                          Analysis of Subsidy Programs and
                                                  AGENCY:   Enforcement and Compliance,                   Comments Received                                     merchandise selected for individual
                                                  International Trade Administration,                                                                           examination in this investigation.
                                                  Department of Commerce.                                    The subsidy programs under
                                                                                                          investigation and the issues raised in                   In accordance with sections
                                                  SUMMARY: The Department of Commerce                                                                           705(c)(1)(B)(i)(I) and 705(c)(5)(A) of the
                                                  (the Department) determines that                        the case and rebuttal briefs by parties in
                                                                                                          this investigation are discussed in the               Act, for companies not individually
                                                  countervailable subsidies are being                                                                           investigated, we apply an ‘‘all-others’’
                                                  provided to producers/exporters of                      Issues and Decision Memorandum. A
                                                                                                          list of the issues that parties raised, and           rate, which is normally calculated by
                                                  certain hot-rolled steel flat products                                                                        weighting the subsidy rates of the
                                                                                                          to which we responded in the Issues
                                                  (hot-rolled steel) from the Republic of                                                                       individual companies selected as
                                                                                                          and Decision Memorandum, is attached
                                                  Korea (Korea). For information on the                                                                         respondents with those companies’
                                                                                                          to this notice as Appendix I.
                                                  subsidy rates, see the ‘‘Final                                                                                export sales of the subject merchandise
                                                  Determination’’ section of this notice.                 Use of Adverse Facts Available                        to the United States. Under section
                                                  The period of investigation is January 1,                  In making this final determination,                705(c)(5)(A)(i) of the Act, the all-others
                                                  2014, through December 31, 2014.                        the Department relied, in part, on facts              rate should exclude zero and de
                                                  DATES: Effective August 12, 2016.                       available and, because POSCO and                      minimis rates calculated for the
                                                  FOR FURTHER INFORMATION CONTACT:                        Hyundai Steel Co., Ltd. (Hyundai Steel)               exporters and producers individually
                                                  Katie Marksberry, AD/CVD Operations,                    did not act to the best of their ability in           investigated, and any rates determined
                                                  Office V, Enforcement and Compliance,                   responding to the Department’s requests               entirely under section 776 of the Act.
                                                  International Trade Administration,                     for information, we drew an adverse                   Therefore, we have excluded the rate
                                                  U.S. Department of Commerce, 14th                       inference where appropriate in selecting              calculated for POSCO because it was
                                                  Street and Constitution Avenue NW.,                     from among the facts otherwise                        determined entirely under section 776
                                                  Washington, DC 20230; telephone (202)                   available.3 Specifically, we find that the            of the Act. Thus, for the ‘‘all-others’’
                                                  482–7906.                                               application of adverse facts available is             rate, we applied the rate calculated for
                                                  SUPPLEMENTARY INFORMATION:                              warranted for POSCO for its failure to                Hyundai Steel.
                                                                                                          report certain cross-owned input
                                                  Background                                                                                                                                                Subsidy rate
                                                                                                                                                                             Company
                                                                                                          (January 15, 2016) (Preliminary Determination), and                                                (percent)
                                                    The Department published the
mstockstill on DSK3G9T082PROD with NOTICES




                                                                                                          accompanying Preliminary Decision Memorandum
                                                  Preliminary Determination on January                    (PDM).                                                POSCO .................................            57.04
                                                  15, 2016.1 A summary of events that                        2 See Memorandum to Paul Piquado, ‘‘Issues and     Hyundai Steel Co., Ltd. ........                    3.89
                                                                                                          Decision Memorandum for the Final Determination       All-Others ..............................           3.89
                                                    1 See Countervailing Duty Investigation of Certain    in the Countervailing Duty Investigation of Certain
                                                  Hot-Rolled Steel Flat Products From the Republic of     Hot-Rolled Steel Flat Products from the Republic of
                                                  Korea: Preliminary Negative Determination and           Korea,’’ dated August 4, 2016 (Issues and Decision      4 POSCO reported at verification that DWI

                                                  Alignment of Final Determination With Final             Memorandum).                                          changed its name to POSCO Daewoo Corporation
                                                  Antidumping Duty Determination, 81 FR 2172                 3 See sections 776(a) and (b) of the Act.          (PDC) in March 2016. See IDM at 6.



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                                                  53440                         Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices

                                                  Disclosure                                              notice will serve as the only reminder                  Comment 12: Whether Hyundai Steel
                                                                                                          to parties subject to an APO of their                     Should Have Provided a Questionnaire
                                                    We intend to disclose to parties in                                                                             Response for Hyundai Green Power
                                                  this proceeding the calculations                        responsibility concerning the
                                                                                                                                                                X. Recommendation
                                                  performed for this final determination                  disposition of proprietary information
                                                  within five days of the date of public                  disclosed under APO in accordance                     Appendix II—Scope of the Investigation
                                                  announcement of our final                               with 19 CFR 351.305(a)(3). Timely
                                                                                                                                                                   The products covered by this investigation
                                                  determination, in accordance with 19                    written notification of the return or                 are certain hot-rolled, flat-rolled steel
                                                  CFR 351.224(b).                                         destruction of APO materials or                       products, with or without patterns in relief,
                                                                                                          conversion to judicial protective order,              and whether or not annealed, painted,
                                                  Suspension of Liquidation                               is hereby requested. Failure to comply                varnished, or coated with plastics or other
                                                     In the Preliminary Determination, the                with the regulations and terms of an                  non-metallic substances. The products
                                                  total net countervailable subsidy rates                 APO is a violation subject to sanction.               covered do not include those that are clad,
                                                  for the individually examined                                                                                 plated, or coated with metal. The products
                                                                                                             This determination and notice are                  covered include coils that have a width or
                                                  respondents were de minimis and,                        issued and published pursuant to                      other lateral measurement (‘‘width’’) of 12.7
                                                  therefore, we did not suspend                           sections 705(d) and 777(i) of the Act and             mm or greater, regardless of thickness, and
                                                  liquidation of entries of certain hot-                  19 CFR 351.210(c).                                    regardless of form of coil (e.g., in
                                                  rolled steel flat products from the                                                                           successively superimposed layers, spirally
                                                  Republic of Korea. However, as the                        Dated: August 4, 2016.                              oscillating, etc.). The products covered also
                                                  estimated subsidy rates for the                         Ronald K. Lorentzen,                                  include products not in coils (e.g., in straight
                                                  examined companies are above de                         Acting Assistant Secretary for Enforcement            lengths) of a thickness of less than 4.75 mm
                                                  minimis in this final determination, we                 and Compliance.                                       and a width that is 12.7 mm or greater and
                                                  are directing U.S. Customs and Border                                                                         that measures at least 10 times the thickness.
                                                                                                          Appendix I—List of Topics Discussed in                The products described above may be
                                                  Protection (CBP) to suspend liquidation                 the Final Decision Memorandum                         rectangular, square, circular, or other shape
                                                  of entries of hot-rolled steel from Korea                                                                     and include products of either rectangular or
                                                  that are entered, or withdrawn from                     I. Summary
                                                                                                                                                                non-rectangular cross-section where such
                                                  warehouse, for consumption on or after                  II. Background
                                                                                                                                                                cross-section is achieve subsequent to the
                                                                                                          III. Scope Comments
                                                  the date of publication of this notice in                                                                     rolling process, i.e., products which have
                                                                                                          IV. Scope of the Investigation
                                                  the Federal Register, and to require a                                                                        been ‘‘worked after rolling’’ (e.g., products
                                                                                                          V. Subsidies Valuation                                which have been beveled or rounded at the
                                                  cash deposit for such entries of                        VI. Benchmarks and Discount Rates
                                                  merchandise in the amounts indicated                                                                          edges). For purposes of the width and
                                                                                                          VII. Use of Facts Otherwise Available And             thickness requirements referenced above:
                                                  above. The suspension of liquidation                          Adverse Inferences                                 (1) Where the nominal and actual
                                                  will remain in effect until further notice.             VIII. Analysis of Programs                            measurements vary, a product is within the
                                                     If the U.S. International Trade                      IX. Analysis of Comments                              scope if application of either the nominal or
                                                  Commission (ITC) issues a final                            Comment 1: Whether the Department                  actual measurement would place it within
                                                  affirmative injury determination, we                          Should Apply Adverse Facts Available            the scope based on the definitions set forth
                                                  will issue a CVD order and instruct CBP                       (AFA) to the Provision of Electricity for       above unless the resulting measurement
                                                  to require a cash deposit of estimated                        Less Than Adequate Remuneration                 makes the product covered by the existing
                                                  CVDs for such entries of subject                              (LTAR)                                          antidumping 5 or countervailing duty 6 orders
                                                  merchandise in the amounts indicated                       Comment 2: Whether the Department                  on Certain Cut-To-Length Carbon-Quality
                                                                                                                Should Find That the Provision of               Steel Plate Products From the Republic of
                                                  above. If the ITC determines that                             Electricity for LTAR is a Countervailable
                                                  material injury, or threat of material                                                                        Korea (A–580–836; C–580–837), and
                                                                                                                Subsidy                                            (2) where the width and thickness vary for
                                                  injury, does not exist, this proceeding                    Comment 3: Whether the Department                  a specific product (e.g., the thickness of
                                                  will be terminated and all estimated                          Should Use Other Bubmitted Data to              certain products with non-rectangular cross-
                                                  duties deposited or securities posted as                      Measure the Adequacy of Remuneration            section, the width of certain products with
                                                  a result of the suspension of liquidation                     of Electricity                                  non-rectangular shape, etc.), the
                                                  will be refunded or canceled.                              Comment 4: Whether the Department                  measurement at its greatest width or
                                                                                                                Should Find the Provision of Natural Gas        thickness applies.
                                                  International Trade Commission                                for LTAR Countervailable                           Steel products included in the scope of this
                                                  Notification                                               Comment 5: Application of AFA to POSCO             investigation are products in which: (1) Iron
                                                    In accordance with section 705(d) of                        and Treatment of POSCO’s Unreported             predominates, by weight, over each of the
                                                  the Act, we will notify the ITC of our                        Affiliates                                      other contained elements; (2) the carbon
                                                  determination. In addition, we are                         Comment 6: Whether To Apply AFA to                 content is 2 percent or less, by weight; and
                                                                                                                POSCO Global Research and                       (3) none of the elements listed below exceeds
                                                  making available to the ITC all non-
                                                                                                                Development (R&D) Center                        the quantity, by weight, respectively
                                                  privileged and non-proprietary                             Comment 7: Whether To Apply AFA to                 indicated:
                                                  information related to this investigation.                    Certain Loans Submitted at Verification            • 2.50 percent of manganese, or
                                                  We will allow the ITC access to all                        Comment 8: Whether To Apply AFA to                    • 3.30 percent of silicon, or
                                                  privileged and business proprietary                           Hyundai Steel for Use of Certain Foreign           • 1.50 percent of copper, or
                                                  information in our files, provided the                        Economic Zones (FEZs)
                                                  ITC confirms that it will not disclose                     Comment 9: The Department Improperly                 5 See Notice of Amendment of Final

                                                  such information, either publicly or                          Countervailed Property Tax Exemptions           Determinations of Sales at Less Than Fair Value
                                                  under an administrative protective order                      Received by the Pohang Plant Under              and Antidumping Duty Orders: Certain Cut-To-
                                                                                                                RSTA 78                                         Length Carbon-Quality Steel Plate Products From
mstockstill on DSK3G9T082PROD with NOTICES




                                                  (APO), without the written consent of                                                                         France, India, Indonesia, Italy, Japan and the
                                                                                                             Comment 10: The Department’s
                                                  the Assistant Secretary of Enforcement                        Methodology for Attributing RSTA                Republic of Korea, 65 FR 6585 (February 10, 2000).
                                                  and Compliance.                                               Article 22 Benefits Received by Hyundai
                                                                                                                                                                  6 See Notice of Amended Final Determinations:

                                                                                                                                                                Certain Cut-to-Length Carbon-Quality Steel Plate
                                                  Notification Regarding Administrative                         Corporation to Hyundai Steel Was
                                                                                                                                                                From India and the Republic of Korea; and Notice
                                                  Protective Orders (APOs)                                      Incorrect                                       of Countervailing Duty Orders: Certain Cut-To-
                                                                                                             Comment 11: Whether Hyundai Steel                  Length Carbon-Quality Steel Plate From France,
                                                    In the event the ITC issues a final                         Should Have Reported Additional ITIPA           India, Indonesia, Italy, and the Republic of Korea,
                                                  negative injury determination, this                           Grants                                          65 FR 6587 (February 10, 2000).



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                                                                                Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices                                                    53441

                                                     • 1.50 percent of aluminum, or                          • Tool steels; 9 and                                 DEPARTMENT OF COMMERCE
                                                     • 1.25 percent of chromium, or                          • Silico-manganese steels; 10
                                                     • 0.30 percent of cobalt, or                            The products subject to this investigation           International Trade Administration
                                                     • 0.40 percent of lead, or                           are currently classified in the Harmonized
                                                     • 2.00 percent of nickel, or                         Tariff Schedule of the United States
                                                                                                                                                                  [A–583–837]
                                                     • 0.30 percent of tungsten, or
                                                                                                          (‘‘HTSUS’’) under item numbers:
                                                     • 0.80 percent of molybdenum, or                                                                             Polyethylene Terephthalate Film,
                                                     • 0.10 percent of niobium, or                        7208.10.1500, 7208.10.3000, 7208.10.6000,               Sheet, and Strip From Taiwan:
                                                     • 0.30 percent of vanadium, or                       7208.25.3000, 7208.25.6000, 7208.26.0030,               Preliminary Results of Antidumping
                                                     • 0.30 percent of zirconium.                         7208.26.0060, 7208.27.0030, 7208.27.0060,               Duty Administrative Review and
                                                     Unless specifically excluded, products are           7208.36.0030, 7208.36.0060, 7208.37.0030,               Preliminary Determination of No
                                                  included in this scope regardless of levels of          7208.37.0060, 7208.38.0015, 7208.38.0030,               Shipments; 2014–2015
                                                  boron and titanium.                                     7208.38.0090, 7208.39.0015, 7208.39.0030,
                                                     For example, specifically included in this           7208.39.0090, 7208.40.6030, 7208.40.6060,               AGENCY:  Enforcement and Compliance,
                                                  scope are vacuum degassed, fully stabilized             7208.53.0000, 7208.54.0000, 7208.90.0000,               International Trade Administration,
                                                  (commonly referred to as interstitial-free (IF))        7210.70.3000, 7211.14.0030, 7211.14.0090,               U.S. Department of Commerce.
                                                  steels, high strength low alloy (HSLA) steels,                                                                  SUMMARY: The Department of Commerce
                                                                                                          7211.19.1500, 7211.19.2000, 7211.19.3000,
                                                  the substrate for motor lamination steels,                                                                      (the Department) is conducting an
                                                                                                          7211.19.4500, 7211.19.6000, 7211.19.7530,
                                                  Advanced High Strength Steels (AHSS), and
                                                  Ultra High Strength Steels (UHSS). IF steels            7211.19.7560, 7211.19.7590, 7225.11.0000,               administrative review of the
                                                  are recognized as low carbon steels with                7225.19.0000, 7225.30.3050, 7225.30.7000,               antidumping duty order on
                                                  micro-alloying levels of elements such as               7225.40.7000, 7225.99.0090, 7226.11.1000,               polyethylene terephthalate film, sheet,
                                                  titanium and/or niobium added to stabilize              7226.11.9030, 7226.11.9060, 7226.19.1000,               and strip (PET Film) from Taiwan. The
                                                  carbon and nitrogen elements. HSLA steels               7226.19.9000, 7226.91.5000, 7226.91.7000,               period of review (POR) is July 1, 2014,
                                                  are recognized as steels with micro-alloying            and 7226.91.8000. The products subject to               through June 30, 2015. This review
                                                  levels of elements such as chromium, copper,            the investigation may also enter under the              covers respondents Nan Ya Plastics
                                                  niobium, titanium, vanadium, and                        following HTSUS numbers: 7210.90.9000,                  Corporation (Nan Ya) and Shinkong
                                                  molybdenum. The substrate for motor                     7211.90.0000, 7212.40.1000, 7212.40.5000,               Materials Technology Corporation
                                                  lamination steels contains micro-alloying               7212.50.0000, 7214.91.0015, 7214.91.0060,
                                                  levels of elements such as silicon and
                                                                                                                                                                  (SMTC), producers and exporters of PET
                                                                                                          7214.91.0090, 7214.99.0060, 7214.99.0075,               Film from Taiwan. The Department
                                                  aluminum. AHSS and UHSS are considered
                                                  high tensile strength and high elongation               7214.99.0090, 7215.90.5000, 7226.99.0180,               preliminarily determines that sales of
                                                  steels, although AHSS and UHSS are covered              and 7228.60.6000.                                       subject merchandise have not been
                                                  whether or not they are high tensile strength              The HTSUS subheadings above are                      made below normal value (NV) by Nan
                                                  or high elongation steels.                              provided for convenience and U.S. Customs               Ya, and that SMTC had no shipments
                                                     Subject merchandise includes hot-rolled              purposes only. The written description of the           during the POR. Interested parties are
                                                  steel that has been further processed in a              scope of the investigation is dispositive.              invited to comment on these
                                                  third country, including but not limited to             [FR Doc. 2016–19377 Filed 8–11–16; 8:45 am]             preliminary results.
                                                  pickling, oiling, levelling, annealing,
                                                  tempering, temper rolling, skin passing,                BILLING CODE 3510–DS–P                                  DATES: Effective August 12, 2016.
                                                  painting, varnishing, trimming, cutting,                                                                        FOR FURTHER INFORMATION CONTACT:
                                                  punching, and/or slitting, or any other                                                                         Jacqueline Arrowsmith at (202) 482–
                                                  processing that would not otherwise remove                                                                      5255; AD/CVD Operations, Office VII,
                                                  the merchandise from the scope of the                                                                           Enforcement and Compliance,
                                                  investigations if performed in the country of                                                                   International Trade Administration,
                                                  manufacture of the hot-rolled steel.
                                                                                                                                                                  U.S. Department of Commerce, 14th
                                                     All products that meet the written physical
                                                  description, and in which the chemistry                                                                         Street and Constitution Avenue NW.,
                                                  quantities do not exceed any one of the noted                                                                   Washington, DC 20230.
                                                  element levels listed above, are within the             percent of sulfur; (iv) none, or not more than 0.03     SUPPLEMENTARY INFORMATION:
                                                  scope of these investigations unless                    percent of phosphorus; (v) not less than 0.18 nor
                                                  specifically excluded. The following                                                                            Scope of the Order
                                                                                                          more than 0.37 percent of silicon; (vi) not less than
                                                  products are outside of and/or specifically             1.25 nor more than 1.65 percent of chromium; (vii)         The merchandise subject to the order
                                                  excluded from the scope of this investigation:          none, or not more than 0.28 percent of nickel; (viii)   is PET Film. The PET Film subject to
                                                     • Universal mill plates (i.e., hot-rolled,           none, or not more than 0.38 percent of copper; and      the order is currently classifiable under
                                                  flat-rolled products not in coils that have             (ix) none, or not more than 0.09 percent of             subheading 3920.62.00.90 of the
                                                  been rolled on four faces or in a closed box            molybdenum.
                                                  pass, of a width exceeding 150 mm but not                  9 Tool steels are defined as steels which contain
                                                                                                                                                                  Harmonized Tariff Schedule of the
                                                  exceeding 1250 mm, of a thickness not less                                                                      United States.1 The Preliminary
                                                                                                          the following combinations of elements in the
                                                  than 4.0 mm, and without patterns in relief);           quantity by weight respectively indicated: (i) More
                                                                                                                                                                  Decision Memorandum is a public
                                                     • Products that have been cold-rolled                than 1.2 percent carbon and more than 10.5 percent      document and is on file electronically
                                                  (cold-reduced) after hot-rolling; 7                     chromium; or (ii) not less than 0.3 percent carbon      via Enforcement and Compliance’s
                                                     • Ball bearing steels; 8                             and 1.25 percent or more but less than 10.5 percent     Antidumping and Countervailing Duty
                                                                                                          chromium; or (iii) not less than 0.85 percent carbon
                                                     7 For purposes of this scope exclusion, rolling      and 1 percent to 1.8 percent, inclusive, manganese;       1 A full description of the scope of the order is
                                                  operations such as a skin pass, levelling, temper       or (iv) 0.9 percent to 1.2 percent, inclusive,          contained in the memorandum from Christian
                                                  rolling or other minor rolling operations after the     chromium and 0.9 percent to 1.4 percent, inclusive,     Marsh, Deputy Assistant Secretary for Antidumping
                                                  hot-rolling process for purposes of surface finish,     molybdenum; or (v) not less than 0.5 percent carbon     and Countervailing Duty Operations, to Ronald K.
mstockstill on DSK3G9T082PROD with NOTICES




                                                  flatness, shape control, or gauge control do not        and not less than 3.5 percent molybdenum; or (vi)       Lorentzen, Acting Assistant Secretary for
                                                  constitute cold-rolling sufficient to meet this         not less than 0.5 percent carbon and not less than      Enforcement and Compliance, ‘‘Decision
                                                  exclusion.                                                                                                      Memorandum for Preliminary Results of
                                                     8 Ball bearing steels are defined as steels which
                                                                                                          5.5 percent tungsten.
                                                                                                             10 Silico-manganese steel is defined as steels
                                                                                                                                                                  Antidumping Duty Administrative Review and
                                                  contain, in addition to iron, each of the following                                                             Preliminary Determination of No Shipments:
                                                  elements by weight in the amount specified: (i) Not     containing by weight: (i) Not more than 0.7 percent     Polyethylene Terephthalate Film, Sheet, and Strip
                                                  less than 0.95 nor more than 1.13 percent of carbon;    of carbon; (ii) 0.5 percent or more but not more than   from Taiwan; 2014–2015’’ (Preliminary Decision
                                                  (ii) not less than 0.22 nor more than 0.48 percent      1.9 percent of manganese, and (iii) 0.6 percent or      Memorandum), which is hereby adopted by this
                                                  of manganese; (iii) none, or not more than 0.03         more but not more than 2.3 percent of silicon.          notice.



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Document Created: 2018-02-09 11:33:23
Document Modified: 2018-02-09 11:33:23
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.
ContactKatie Marksberry, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone (202) 482- 7906.
FR Citation81 FR 53439 

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