81 FR 71049 - Phosphor Copper From the Republic of Korea: Affirmative Preliminary Determination of Sales at Less Than Fair Value, Negative Preliminary Determination of Critical Circumstances

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 199 (October 14, 2016)

The Department of Commerce (the Department) preliminarily determines that phosphor copper from the Republic of Korea (Korea) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The Department also preliminarily determines that critical circumstances do not exist with regard to imports of phosphor copper from Korea. The period of investigation (POI) is January 1, 2015, through December 31, 2015. Interested parties are invited to comment on this preliminary determination.

[Federal Register Volume 81, Number 199 (Friday, October 14, 2016)]
[Notices]
[Pages 71049-71051]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-24818]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-885]


Phosphor Copper From the Republic of Korea: Affirmative 
Preliminary Determination of Sales at Less Than Fair Value, Negative 
Preliminary Determination of Critical Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that phosphor copper from the Republic of Korea (Korea) is 
being, or is likely to be, sold in the United States at less than fair 
value (LTFV). The Department also preliminarily determines that 
critical circumstances do not exist with regard to imports of phosphor 
copper from Korea. The period of investigation (POI) is January 1, 
2015, through December 31, 2015. Interested parties are invited to 
comment on this preliminary determination.

DATES: Effective October 14, 2016.

FOR FURTHER INFORMATION CONTACT: Cindy Robinson AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3797.

SUPPLEMENTARY INFORMATION: 

Background

    In response to petitions filed on March 9, 2016,\1\ the Department 
published the notice of initiation of this LTFV investigation 
concerning imports of phosphor cooper from Korea on April 5, 2016.\2\ 
On July 27, 2016, the Department received timely allegations, pursuant 
to sections 703(e)(l) and 733(e)(l) of the Tariff Act of 1930, as 
amended (the Act), and 19 CFR 351.206, that critical circumstances 
exist with respect to imports of phosphor copper from Korea.\3\ 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.\4\ A list of topics 
included in the Preliminary Decision Memorandum is included as Appendix 
II to this notice. 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 the Petition for the Imposition of Antidumping Duties on 
Imports of Phosphor Copper from the Republic of Korea, dated March 
9, 2016 (the Petition).
    \2\ See Phosphor Copper from the Republic of Korea: Initiation 
of Less-Than-Fair-Value Investigation, 81 FR 19552 (April 5, 2016) 
(Initiation Notice).
    \3\ See Petitioner's letter ``Phosphor Copper from the Republic 
of Korea: Petitioner's Critical Circumstances Allegation,'' 
(Critical Circumstances Allegation) dated July 27, 2016.
    \4\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, ``Decision Memorandum for the Preliminary Determination 
in the Antidumping Duty Investigation of Phosphor Copper from the 
Republic of Korea'' (Preliminary Decision Memorandum), dated 
concurrently with this notice.
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Scope of the Investigation

    The product covered by this investigation is phosphor copper from 
Korea. 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,\5\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\6\ No interested party 
submitted comments on the scope of this investigation.
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    \5\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \6\ See Initiation Notice, 81 FR at 19553.
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Postponement of Deadline for Preliminary Determination

    On August 5, 2016, the Department published the notice of 
postponement for the preliminary determination in this investigation in 
accordance with section 733(c)(1)(B) of the Act and 19 CFR 
351.205(f)(1).\7\ As a result of the 50-day postponement, the revised 
deadline for the preliminary determination of this investigation is 
October 5, 2016.\8\
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    \7\ See Phosphor Copper from the Republic of Korea: Postponement 
of Preliminary Determination of Antidumping Duty Investigation, 81 
FR 51858 (August 5, 2016).
    \8\ Id.
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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 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.

Preliminary Negative Determination of Critical Circumstances

    On July 27, 2016, Metallurgical Products Company (Petitioner) filed 
a timely critical circumstance allegation pursuant to section 733(e) of 
the Act and 19 CFR 351.206(c)(l), alleging that critical circumstances 
exist with respect to imports of phosphor copper from Korea.\9\ In 
accordance with 19 CFR 351.206(c)(2)(i), when a critical circumstances 
allegation is submitted more than 20 days before the scheduled date of 
the preliminary determination, the Department must issue a preliminary 
finding whether there is a reasonable basis to believe or suspect that 
critical circumstances exist no later than the date of the preliminary 
determination. Section 733(e)(1) of the Act provides that the 
Department will preliminarily determine that critical circumstances 
exist in a LTFV investigation if there is a reasonable basis to believe 
or suspect that: (A) There is a history of dumping and material injury 
by reason of dumped imports in the United States or elsewhere of the 
subject merchandise, or the person by whom, or for whose account, the 
merchandise was imported knew or should have known that the exporter 
was selling the subject merchandise at less than its fair value and 
that there was likely to be material injury by reason of such sales; 
and (B) there have been massive imports of the subject merchandise over 
a relatively short period. We have conducted an analysis of critical 
circumstances in accordance with section 733(e) of the Act and 19 CFR 
351.206, and preliminarily determine that critical circumstances do not 
exist with regard

[[Page 71050]]

to imports of phosphor copper from Korea. For a full description of 
this issue, see the Preliminary Decision Memorandum.
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    \9\ See Petitioner's letter ``Phosphor Copper from the Republic 
of Korea: Petitioner's Critical Circumstances Allegation,'' dated 
July 27, 2016.
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All-Others Rate

    Consistent with sections 733(d)(1)(A)(ii) and 735(c)(5) of the Act, 
the Department calculated an estimated all-others rate. Section 
735(c)(5)(A) of the Act provides that the estimated all-others rate 
shall be an amount equal to the weighted average of the estimated 
weighted-average dumping margins established for exporters and 
producers individually investigated, excluding any zero and de minimis 
margins, and any margins determined entirely under section 776 of the 
Act.
    Bongsan Co., Ltd. (Bongsan) is the only respondent for which the 
Department has calculated a company-specific rate. Therefore, for 
purposes of determining the ``all others'' rate and pursuant to section 
735(c)(5)(A) of the Act, we are using the dumping margin calculated for 
Bongsan, as referenced in the ``Preliminary Determination'' section 
below.

Preliminary Determination

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

------------------------------------------------------------------------
                                                        Weighted-average
               Producer and/or exporter                  dumping margin
                                                           (percent)
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Bongsan Co., Ltd.....................................               3.79
All-Others...........................................               3.79
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Suspension of Liquidation

    Because the Department has made an affirmative preliminary 
determination of sales at less than fair value, 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 phosphor 
copper from Korea, 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.
    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. The suspension of liquidation instructions and cash 
deposit requirements will remain in effect until further notice.

Disclosure and Public Comment

    We will disclose the calculations performed to interested parties 
in this proceeding within five days after public announcement of the 
preliminary determination 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 investigation, 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.\10\ 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. 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. 
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 351.309.
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    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.\11\
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    \11\ 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.

International Trade Commission (ITC) Notification

    In accordance with section 733(f) of the Act, we are notifying 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.

Notification to Interested Parties

    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: October 5, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is master alloys 
\12\ of copper containing between five percent and 17 percent 
phosphorus by nominal weight, regardless of form (including but not 
limited to shot, pellet, waffle, ingot, or nugget), and regardless 
of size or weight. Subject merchandise consists predominantly of 
copper (by weight), and may contain other elements, including but 
not limited to iron (Fe), lead (Pb), or tin (Sn), in small amounts 
(up to one percent by nominal weight). Phosphor copper is frequently 
produced to JIS H2501 and ASTM B-644, Alloy 3A standards or higher; 
however, merchandise covered by this investigation includes all 
phosphor copper, regardless of whether the merchandise meets, fails 
to meet, or exceeds these standards.
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    \12\ A ``master alloy'' is a base metal, such as copper, to 
which a relatively high percentage of one or two other elements is 
added.
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    Merchandise covered by this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under subheading 7405.00.1000. This HTSUS subheading is 
provided for convenience and customs purposes; the written 
description of the scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum:

I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Scope Comments
VI. Respondent Selection
VII. Preliminary Determination of Critical Circumstances
VIII. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
IX. Date of Sale
X. Product Comparisons
XI. Export Price and Constructed Export Price
XII. Normal Value
    A. Comparison Market Viability
    B. Level of Trade
    C. Cost of Production

[[Page 71051]]

    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    D. Calculation of NV Based on Comparison Market Prices
XIII. Currency Conversion
XIV. Verification
XV. Conclusion
[FR Doc. 2016-24818 Filed 10-13-16; 8:45 am]
 BILLING CODE 3510-DS-P