81 FR 69 - Certain Corrosion-Resistant Steel Products From Italy: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Postponement of Final Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 1 (January 4, 2016)

The Department of Commerce (the ``Department'') preliminarily determines that certain corrosion-resistant steel products (``corrosion-resistant steel'') from Italy are being, or are likely to be, sold in the United States at less-than-fair-value (``LTFV''), as provided in section 733(b) of the Tariff Act of 1930, as amended (the ``Act''). The period of investigation (``POI'') is April 1, 2014, through March 31, 2015. The estimated weighted-average dumping margins shown in the ``Preliminary Determination'' section of this notice. Interested parties are invited to comment on this preliminary determination.

[Federal Register Volume 81, Number 1 (Monday, January 4, 2016)]
[Notices]
[Pages 69-72]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-32759]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-832]


Certain Corrosion-Resistant Steel Products From Italy: 
Preliminary Affirmative Determination of Sales at Less Than Fair Value 
and Postponement of Final Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the ``Department'') preliminarily 
determines that certain corrosion-resistant steel products 
(``corrosion-resistant steel'') from Italy are being, or are likely to 
be, sold in the United States at less-than-fair-value (``LTFV''), as 
provided in section 733(b) of the Tariff Act of 1930, as amended (the 
``Act''). The period of investigation (``POI'') is April 1, 2014, 
through March 31, 2015. The estimated weighted-average dumping margins 
shown in the ``Preliminary Determination'' section of this notice. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Effective Date: January 4, 2016.

FOR FURTHER INFORMATION CONTACT: Julia Hancock or Susan Pulongbarit, 
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-
1394 or (202) 482-4031, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the notice of initiation of this 
investigation on June 30, 2015.\1\ For a complete description of the 
events that followed the initiation of this investigation, see the 
memorandum that is dated concurrently with this determination and 
hereby adopted by this notice.\2\ The Preliminary Decision Memorandum 
is a public document and is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (``ACCESS''). ACCESS is available to registered users at 
https://access.trade.gov, and to all parties in the Central Records 
Unit, Room B8024 of the main Department of Commerce building. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be found at http://enforcement.trade.gov/frn/. The signed Preliminary 
Decision Memorandum and the electronic version of the Preliminary 
Decision Memorandum are identical in content.
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    \1\ See Certain Corrosion-Resistant Steel Products from Italy, 
India, the People's Republic of China, the Republic of Korea, and 
Taiwan: Initiation of Less-Than-Fair-Value investigations, 80 FR 
37228 (June 30, 2015) (``Initiation Notice'').
    \2\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Paul Piquado, Assistant Secretary for Enforcement and 
Compliance ``Decision Memorandum for the Preliminary Determination 
in the Antidumping Duty Investigation of Certain Corrosion-Resistant 
Steel Products from Italy'' (``Preliminary Decision Memorandum''), 
dated concurrently with and hereby adopted by this notice.
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Scope of the Investigation

    The product covered by this investigation is corrosion-resistant 
steel from Italy. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\3\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., ``scope'').\4\ Certain 
interested parties commented on the scope of the investigation as it 
appeared in the Initiation Notice, as well as additional language 
proposed by the Department. For a summary of the product coverage 
comments and rebuttal responses submitted to the record for this 
preliminary determination, and accompanying discussion and analysis of 
all comments timely received, see the Preliminary Scope Decision 
Memorandum.\5\ The Department is preliminarily modifying the scope 
language as it appeared in the Initiation Notice to clarify that 
corrosion-resistant steel which is further processed in a third country 
is covered by the scope of the investigation. See ``Scope of the 
Investigation,'' in Appendix I, which includes the additional 
clarifying language.
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    \3\ See Antidumping Duties; Countervailing Duties, 62 FR 27296 
(May 19, 1997).
    \4\ See Initiation Notice, 80 FR at 37229.
    \5\ See Memorandum to Gary Taverman, Associate Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, 
``Certain Corrosion-Resistant Steel Products From the People's 
Republic of China, India, Italy, the Republic of Korea, and Taiwan: 
Scope Comments Decision Memorandum for the Preliminary 
Determinations,'' dated December 21, 2015.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. Export prices have been calculated in 
accordance with section 772(a) of the Act. Constructed export prices 
have been calculated in

[[Page 70]]

accordance with section 772(b) of the Act. Normal value (``NV'') is 
calculated in accordance with section 773 of the Act. For a full 
description of the methodology underlying our preliminary conclusions, 
see the Preliminary Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated all-
others rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated excluding any zero or de 
minimis and margins based entirely under section 776 of the Act. 
Pursuant to section 735(c)(5)(B) of the Act, if the estimated weighted-
average dumping margins established for all exporters and producers 
individually examined are zero, de minimis or determined based entirely 
under section 776 of the Act, the Department may use any reasonable 
method to establish the estimated weighted-average dumping margin for 
all other producers or exporters.
    Accordingly, because Arvedi is the only respondent in this 
investigation for which the Department preliminarily calculated a 
company-specific rate which is not zero, de minimis or based entirely 
on facts available, pursuant to section 735(c)(5)(A) of the Act, we are 
using the weighted-average dumping margin calculated for Arvedi as the 
estimated weighted-average dumping margin assigned to all other 
producers and exporters of the merchandise under consideration.

Preliminary Determination

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

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/producer                         margin
                                                               (percent)
------------------------------------------------------------------------
Acciaieria Arvedi S.p.A.....................................        3.11
Marcegaglia S.p.A...........................................        0.00
All-Others..................................................        3.11
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we are directing 
U.S. Customs and Border Protection (``CBP'') to suspend liquidation of 
all entries of corrosion-resistant steel from Italy, as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register except for those produced and exported 
by Marcegaglia. Because the estimated weighted-average dumping margin 
for Marcegaglia is zero, we are not directing CBP to suspend 
liquidation of entries of the merchandise it produced and exported.
    Pursuant to section 733 (d)(1)(B) of the Act and 19 CFR 351.205(d), 
the Department will instruct CBP to require a cash deposit equal to the 
weighted-average amount by which the NV exceeds U.S. price as indicated 
in the chart above,\6\ adjusted where appropriate for export 
subsidies.\7\ The Department has preliminarily determined in its 
companion countervailing duty investigation of corrosion-resistant 
steel from Italy that subject merchandise exported by Arvedi and 
Marcegaglia did not benefit from export subsidies.\8\ As a result, the 
Department will make no adjustment to Arvedi's or Marcegaglia's cash 
deposit rates. The rate for all others producers or exporters when 
adjusted for export subsidies is 2.96 percent. The suspension of 
liquidation instructions will remain in effect until further notice.
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    \6\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
    \7\ See section 772(c)(1)(C) of the Act. Unlike in 
administrative reviews, the Department calculates the adjustment for 
export subsidies in investigations not in the margin calculation 
program, but in the cash deposit instructions issued to CBP. See 
Notice of Final Determination of Sales at Less Than Fair Value, and 
Negative Determination of Critical Circumstances: Certain Lined 
Paper Products from India, 71 FR 45012 (August 8, 2006), and 
accompanying Issues and Decision Memorandum at Comment 1.
    \8\ See Countervailing Duty Investigation of Certain Corrosion-
Resistant Steel Products from Italy: Preliminary Affirmative 
Determination, 80 FR 68839 (November 6, 2015).
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Disclosure

    We will disclose the calculations performed to interested parties 
in this proceeding within five days of the date of the publication of 
this notice in accordance with 19 CFR 351.224(b). Interested parties 
are invited to comment on this preliminary determination. Case briefs 
or other written comments may be submitted to the Assistant Secretary 
for Enforcement and Compliance no later than seven days after the date 
on which the final verification report is issued in this proceeding, 
and rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than five days after the deadline date for case 
briefs.\9\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in this proceeding are encouraged 
to submit with each argument: (1) A statement of the issue; (2) a brief 
summary of the argument; and (3) a table of authorities.
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    \9\ See 19 CFR 351.309.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce. 
All documents must be filed electronically using ACCESS. An 
electronically-filed request must be received successfully in its 
entirety by ACCESS by 5:00 p.m. Eastern Time, within 30 days after the 
date of publication of this notice.\10\ Requests should contain the 
party's name, address, and telephone number, the number of 
participants, and a list of the issues to be discussed. If a request 
for a hearing is made, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW., Washington, DC 20230, at a time and date to be determined. Parties 
should confirm by telephone the date, time, and location of the hearing 
two days before the scheduled date.
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    \10\ See 19 CFR 351.310(c).
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Verification

    As provided in section 782(i) of the Act, we intend to verify 
information relied upon in making our final determination.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the

[[Page 71]]

event of an affirmative preliminary determination, a request for such 
postponement is made by exporters who account for a significant 
proportion of exports of the subject merchandise, or in the event of a 
negative preliminary determination, a request for such postponement is 
made by Petitioners. 19 CFR 351.210(e)(2) requires that requests by 
respondents for postponement of a final antidumping determination must 
be accompanied by a request for extension of provisional measures from 
a four-month period to a period not more than six months in duration.
    On November 13, 2015, pursuant to sections 735(a)(2)(A) and 705(b) 
of the Act, Arvedi and Marcegaglia requested that, contingent upon an 
affirmative preliminary determination of sales at LTFV, the Department 
postpone the final determination and that provisional measures be 
extended to a period not to exceed six months.\11\
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    \11\ See Letter to the Secretary of Commerce from Arvedi and 
Marcegaglia ``Request for Postponement of Final Determination'' 
(November 13, 2015).
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    In accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), because (1) our preliminary determination is 
affirmative; (2) the requesting exporters account for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, we are postponing the final determination and 
extending the provisional measures from a four-month period to a period 
not greater than six months. Accordingly, we will make our final 
determination no later than 135 days after the date of publication of 
this preliminary determination, pursuant to section 735(a)(2) of the 
Act.\12\
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    \12\ See also 19 CFR 351.210(e).
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International Trade Commission (``ITC'') Notification

    In accordance with section 733(f) of the Act, we have notified the 
ITC of our affirmative preliminary determination of sales at LTFV. If 
our final determination is affirmative, the ITC will determine before 
the later of 120 days after the date of this preliminary determination 
or 45 days after our final determination whether these imports are 
materially injuring, or threaten material injury to, the U.S. industry.
    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: December 21, 2015.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by the scope are certain flat-rolled steel 
products, either clad, plated, or coated with corrosion-resistant 
metals such as zinc, aluminum, or zinc-, aluminum-, nickel- or iron-
based alloys, whether or not corrugated or painted, varnished, 
laminated, or coated with plastics or other non-metallic substances 
in addition to the metal coating. The products covered include coils 
that have a width of 12.7 mm or greater, 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 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 covered also include products not in 
coils (e.g., in straight lengths) of a thickness 4.75 mm or more 
than a width exceeding 150 mm and measuring at least twice 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 
achieved subsequent to the rolling process, i.e., products which 
have been ``worked after rolling'' (e.g., products which have been 
beveled or rounded at the edges). For purposes of the width and 
thickness requirements referenced above:
    (1) Where the nominal and actual measurements vary, a product is 
within the scope if application of either the nominal or actual 
measurement would place it within the scope based on the definitions 
set for above, and
    (2) where the width and thickness vary for a specific period 
(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 in 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; (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
 1.25 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 (also called wolfram), or
 0.80 percent of molybdenum, or
 0.10 percent of niobium (also called columbium), 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 interstitial-free 
(``IF'')) steels and high strength low alloy (``HSLA'') steels. 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.
    Furthermore, this scope also includes Advanced High Strength 
Steels (``AHSS'') and Ultra High Strength Steels (``UHSS''), both of 
which are considered high tensile strength and high elongation 
steels.
    Subject merchandise also includes corrosion-resistant steel that 
has been further processed in a third country, including but not 
limited to annealing, tempering 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 in-
scope corrosion resistant 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:
     Flat-rolled steel products either plated or coated with 
tin, lead, chromium, chromium oxides, both tin and lead (``terne 
plate''), or both chromium and chromium oxides (``tin free steel''), 
whether or not painted, varnished or coated with plastics or other 
non-metallic substances in addition to the metallic coating;
     Clad products in straight lengths of 4.7625 mm or more 
in composite thickness and of a width which exceeds 150 mm and 
measure at least twice the thickness; and
     Certain clad stainless flat-rolled products, which are 
three-layered corrosion-resistant steel flat-rolled steel products 
less than 4.75 mm in composite thickness that consist of a flat-
rolled steel product clad on both sides with stainless steel in a 
20%-60%-20% ratio.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(``HTSUS'') under item numbers: 7210.30.0030, 7210.30.0060, 
7210.41.0000, 7210.49.0030, 7210.49.0091, 7210.49.0095, 
7210.61.0000, 7210.69.0000, 7210.70.6030, 7210.70.6060, 
7210.70.6090, 7210.90.6000, 7210.90.9000, 7212.20.0000, 
7212.30.1030, 7212.30.1090, 7212.30.3000, 7212.30.5000, 
7212.40.1000, 7212.40.5000, 7212.50.0000, and 7212.60.0000.
    The products subject to the investigation may also enter under 
the following HTSUS item numbers: 7210.90.1000, 7215.90.1000, 
7215.90.3000, 7215.20.1500, 7217.30.1530, 7217.30.1560, 
7217.90.1000, 7217.90.5030, 7217.90.5060, 7217.90.5090, 
7225.91.0000, 7225.92.0000, 7225.99.0090, 7226.99.0110,

[[Page 72]]

7226.99.0130, 7226.99.0180, 7228.60.6000, 7228.60.8000, and 
7229.90.1000.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Preliminary Determination of No Critical Circumstances
V. Scope of Investigation
VI. All-Others Rate
VII. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of Differential Pricing Analysis
VIII. Date of Sale
IX. Product Comparisons
X. Export Price and Constructed Export Price
XI. Normal Value
    A. Comparison Market Viability
    B. Affiliated Party Transactions and Arm's-Length Test
    C. Level of Trade
    D. Cost of Production Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    E. Calculation of Normal Value Based on Comparison Market Prices
XII. Currency Conversion
XIII. Conclusion

[FR Doc. 2015-32759 Filed 12-31-15; 8:45 am]
 BILLING CODE 3510-DS-P