81 FR 85930 - Certain Carbon and Alloy Steel Cut-To-Length Plate From the Federal Republic of Germany: Amended Preliminary Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 81, Issue 229 (November 29, 2016)

On November 14, 2016, the Department of Commerce (the Department) published in the Federal Register the Preliminary Determination of the antidumping duty investigation of certain carbon and alloy steel cut-to-length plate (CTL plate) from the Federal Republic of Germany (Germany). The Department is amending the Preliminary Determination of the investigation to correct three ministerial errors.

[Federal Register Volume 81, Number 229 (Tuesday, November 29, 2016)]
[Notices]
[Pages 85930-85932]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28703]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-844]


Certain Carbon and Alloy Steel Cut-To-Length Plate From the 
Federal Republic of Germany: Amended Preliminary Determination of Sales 
at Less Than Fair Value

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

SUMMARY: On November 14, 2016, the Department of Commerce (the 
Department) published in the Federal Register the Preliminary 
Determination of the antidumping duty investigation of certain carbon 
and alloy steel cut-to-length plate (CTL plate) from the Federal 
Republic of Germany (Germany). The Department is amending the 
Preliminary Determination of the investigation to correct three 
ministerial errors.

DATES: Effective November 29, 2016.

FOR FURTHER INFORMATION CONTACT: Ross Belliveau or David J. Goldberger, 
AD/CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-4952 or (202) 
482-4136, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On November 14, 2016, the Department published in the Federal 
Register the Preliminary Determination of CTL plate from Germany.\1\ On 
November 14, 2016, Nucor Corporation (Nucor), a petitioner in this 
investigation, alleged that the Department made significant ministerial 
errors in the Preliminary Determination.\2\
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    \1\ See Certain Carbon and Alloy Steel Cut-to-Length Plate from 
the Federal Republic of Germany: Preliminary Determination of Sales 
at Less Than Fair Value and Postponement of Final Determination, 81 
FR 79446 (November 14, 2016) (Preliminary Determination).
    \2\ See letter from Nucor entitled, ``Nucor's Ministerial Error 
Comments Regarding Salzgitter,'' dated November 14, 2016 (Nucor 
Letter).
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Scope of the Investigation

    The product covered by this investigation is CTL plate from 
Germany. For a full description of the scope of this investigation, see 
the ``Scope of the Investigation,'' in Appendix I of this notice.

Significant Ministerial Error

    A ministerial error is defined in 19 CFR 351.224(f) as ``an error 
in addition, subtraction, or other arithmetic function, clerical error 
resulting from inaccurate copying, duplication, or the like, and any 
other similar type of unintentional error which the Secretary considers 
ministerial.'' Further, 19 CFR 351.224(e) provides that the Department 
``will analyze any comments received and, if appropriate, correct any 
significant ministerial error by amending the preliminary 
determination.'' A significant ministerial error is defined as a 
ministerial error, the correction of which, singly or in combination 
with other errors, would result in: (1) A change of at least five 
absolute percentage points in, but not less than 25 percent of, the 
weighted-average dumping margin calculated in the original (erroneous) 
preliminary determination; or (2) a difference between a weighted-
average dumping margin of zero or de minimis and a weighted-average 
dumping margin of greater than de minimis or vice versa.\3\
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    \3\ See 19 CFR 351.224(g)(1) and (2).
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Ministerial Error Allegations

    Nucor alleges that the Department made three ministerial errors in 
its calculation of the preliminary determination margin for Ilsenburger 
Grobblech GmbH, Salzgitter Mannesmann Grobblech GmbH, Salzgitter 
Flachstahl GmbH, and Salzgitter Mannesmann International GmbH 
(collectively, Salzgitter):
     In making the adjustment to U.S. price for reported 
freight revenue and capping that adjustment by the reported freight 
expense, the Department did not include freight revenue reported as a 
billing adjustment in the freight revenue cap.
     The Department recalculated U.S. credit expenses 
incorrectly by deducting freight revenue from the U.S. price used in 
the calculation. However, the reported U.S. price did not include 
freight revenue.
     The Department made an adjustment to U.S. price for 
inventory carrying expenses without converting the reported amount from 
euros to U.S. dollars.
    We agree that the alleged errors were made. Moreover, pursuant to 
19 CFR 351.224(g)(2), these ministerial errors are significant because 
the correction of these errors results in a change from a weighted-
average dumping margin of zero or de minimis to a weighted-average 
dumping margin of greater than de minimis. Therefore, we are correcting 
the ministerial errors alleged by Nucor and we are amending our 
preliminary determination accordingly.\4\
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    \4\ See Memorandum to the File entitled ``Amended Preliminary 
Determination Margin Calculation for Salzgitter'' (Amended 
Preliminary Determination Memorandum) for further discussion of our 
calculations for this amended preliminary determination.
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Amended Preliminary Determination

    We are amending the preliminary determination of sales at less-
than-fair-value for CTL plate from Germany to reflect the correction of 
ministerial errors made in the margin calculation of that determination 
for Salzgitter. In addition, because we calculated a de minimis 
weighted-average dumping margin for Salzgitter in the Preliminary 
Determination, the preliminary ``All-Others'' Rate was based on the 
estimated weighted-average dumping margin calculated for Dillinger, the 
other mandatory respondent in this investigation. Thus, we are also 
amending the ``All-Others'' rate to account for the change in the 
Salzgitter margin. Accordingly, we are amending the calculation of the 
all-others rate to base it on the weighted-average of the margins 
calculated for Dillinger and Salzgitter using publicly-ranged data. 
Because we cannot apply our normal methodology of calculating a 
weighted-average margin due to requests to protect business-proprietary 
information, we find this rate to be the best proxy of the actual 
weighted-average margin determined for these respondents.\5\ As a 
result of the

[[Page 85931]]

correction of the ministerial error, the revised weighted-average 
dumping margins are as follows:
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    \5\ See, e.g., Welded Line Pipe from the Republic of Turkey: 
Final Determination of Sales at Less Than Fair Value, 80 FR 61362, 
61363 (October 13, 2015). For further discussion of the amended 
calculation of the all-others rate, see Amended Preliminary 
Determination Memorandum.

------------------------------------------------------------------------
                                                        Weighted-average
                Exporter/manufacturer                    dumping margin
                                                           (percent)
------------------------------------------------------------------------
AG der Dillinger H[uuml]ttenwerke....................               6.56
Ilsenburger Grobblech GmbH, Salzgitter Mannesmann                   5.00
 Grobblech GmbH, Salzgitter Flachstahl GmbH, and
 Salzgitter Mannesmann International GmbH............
All[dash]Others......................................               5.17
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Amended Cash Deposits and Suspension of Liquidation

    The collection of cash deposits and suspension of liquidation will 
be revised according to the rates established in this amended 
preliminary determination, in accordance with section 733(d) and (f) of 
the Tariff Act of 1930, as amended (the Act) and 19 CFR 351.224. 
Because the rates are increasing from the Preliminary Determination, 
the amended cash deposit rates will be effective on the date of 
publication of this notice in the Federal Register.

International Trade Commission Notification

    In accordance with section 733(f) of the Act, we notified the 
International Trade Commission of our amended preliminary 
determination.

Disclosure

    We intend to disclose the calculations performed to parties in this 
proceeding within five days after public announcement of the amended 
preliminary determination, in accordance with 19 CFR 351.224.
    This amended preliminary determination is issued and published in 
accordance with sections 733(f) and 777(i) of the Act and 19 CFR 
351.224(e).

    Dated: November 21, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are certain carbon 
and alloy steel hot-rolled or forged flat plate products not in 
coils, whether or not painted, varnished, or coated with plastics or 
other non-metallic substances (cut-to-length plate). Subject 
merchandise includes plate that is produced by being cut-to-length 
from coils or from other discrete length plate and plate that is 
rolled or forged into a discrete length. The products covered 
include (1) Universal mill plates (i.e., flat-rolled products rolled 
on four faces or in a closed box pass, of a width exceeding 150 mm 
but not exceeding 1250 mm, and of a thickness of not less than 4 mm, 
which are not in coils and without patterns in relief), and (2) hot-
rolled or forged flat steel products of a thickness of 4.75 mm or 
more and of a width which exceeds 150 mm and measures at least twice 
the thickness, and which are not in coils, whether or not with 
patterns in relief. The covered products described above may be 
rectangular, square, circular or other shapes and include products 
of either rectangular or non-rectangular cross-section where such 
non-rectangular 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, the following rules apply:
    (1) Except where otherwise stated where the nominal and actual 
thickness or width measurements vary, a product from a given subject 
country 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; and
    (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; and (2) the carbon content is 2 
percent or less by weight.
    Subject merchandise includes cut-to-length plate that has been 
further processed in the subject country or a third country, 
including but not limited to pickling, oiling, levelling, annealing, 
tempering, temper rolling, skin passing, painting, varnishing, 
trimming, cutting, punching, beveling, and/or slitting, or any other 
processing that would not otherwise remove the merchandise from the 
scope of the investigation if performed in the country of 
manufacture of the cut-to-length plate.
    All products that meet the written physical description are 
within the scope of this investigation unless specifically excluded 
or covered by the scope of an existing order. The following products 
are outside of, and/or specifically excluded from, the scope of this 
investigation:
    (1) Products clad, plated, or coated with metal, whether or not 
painted, varnished or coated with plastic or other non-metallic 
substances;
    (2) military grade armor plate certified to one of the following 
specifications or to a specification that references and 
incorporates one of the following specifications:

     MIL-A-12560,
     MIL-DTL-12560H,
     MIL-DTL-12560J,
     MIL-DTL-12560K,
     MIL-DTL-32332,
     MIL-A-46100D,
     MIL-DTL-46100-E,
     MIL-46177C,
     MIL-S-16216K Grade HY80,
     MIL-S-16216K Grade HY100,
     MIL-S-24645A HSLA-80;
     MIL-S-24645A HSLA-100,
     T9074-BD-GIB-010/0300 Grade HY80,
     T9074-BD-GIB-010/0300 Grade HY100,
     T9074-BD-GIB-010/0300 Grade HSLA80,
     T9074-BD-GIB-010/0300 Grade HSLA100, and
     T9074-BD-GIB-010/0300 Mod. Grade HSLA115,

except that any cut-to-length plate certified to one of the above 
specifications, or to a military grade armor specification that 
references and incorporates one of the above specifications, will 
not be excluded from the scope if it is also dual- or multiple-
certified to any other non-armor specification that otherwise would 
fall within the scope of this order;
    (3) stainless steel plate, containing 10.5 percent or more of 
chromium by weight and not more than 1.2 percent of carbon by 
weight;
    (4) CTL plate meeting the requirements of ASTM A-829, Grade E 
4340 that are over 305 mm in actual thickness;
    (5) Alloy forged and rolled CTL plate greater than or equal to 
152.4 mm in actual thickness meeting each of the following 
requirements:
    (a) Electric furnace melted, ladle refined & vacuum degassed and 
having a chemical composition (expressed in weight percentages):
     Carbon 0.23-0.28,
     Silicon 0.05-0.20,
     Manganese 1.20-1.60,
     Nickel not greater than 1.0,
     Sulfur not greater than 0.007,
     Phosphorus not greater than 0.020,
     Chromium 1.0-2.5,
     Molybdenum 0.35-0.80,
     Boron 0.002-0.004,
     Oxygen not greater than 20 ppm,
     Hydrogen not greater than 2 ppm, and
     Nitrogen not greater than 60 ppm;

[[Page 85932]]

    (b) With a Brinell hardness measured in all parts of the product 
including mid thickness falling within one of the following ranges:
    (i) 270-300 HBW,
    (ii) 290-320 HBW, or
    (iii) 320-350 HBW;
    (c) Having cleanliness in accordance with ASTM E45 method A 
(Thin and Heavy): A not exceeding 1.5, B not exceeding 1.0, C not 
exceeding 0.5, D not exceeding 1.5; and
    (d) Conforming to ASTM A578-S9 ultrasonic testing requirements 
with acceptance criteria 2 mm flat bottom hole;
    (6) Alloy forged and rolled steel CTL plate over 407 mm in 
actual thickness and meeting the following requirements:
    (a) Made from Electric Arc Furnace melted, Ladle refined & 
vacuum degassed, alloy steel with the following chemical composition 
(expressed in weight percentages):
     Carbon 0.23-0.28,
     Silicon 0.05-0.15,
     Manganese 1.20-1.50,
     Nickel not greater than 0.4,
     Sulfur not greater than 0.010,
     Phosphorus not greater than 0.020,
     Chromium 1.20-1.50,
     Molybdenum 0.35-0.55,
     Boron 0.002-0.004,
     Oxygen not greater than 20 ppm,
     Hydrogen not greater than 2 ppm, and
     Nitrogen not greater than 60 ppm;
    (b) Having cleanliness in accordance with ASTM E45 method A 
(Thin and Heavy): A not exceeding 1.5, B not exceeding 1.5, C not 
exceeding 1.0, D not exceeding 1.5;
    (c) Having the following mechanical properties:
    (i) With a Brinell hardness not more than 237 HBW measured in 
all parts of the product including mid thickness; and having a Yield 
Strength of 75 ksi min and UTS 95 ksi or more, Elongation of 18% or 
more and Reduction of area 35% or more; having charpy V at -75 
degrees F in the longitudinal direction equal or greater than 15 ft. 
lbs (single value) and equal or greater than 20 ft. lbs (average of 
3 specimens) and conforming to the requirements of NACE MR01-75; or
    (ii) With a Brinell hardness not less than 240 HBW measured in 
all parts of the product including mid thickness; and having a Yield 
Strength of 90 ksi min and UTS 110 ksi or more, Elongation of 15% or 
more and Reduction of area 30% or more; having charpy V at -40 
degrees F in the longitudinal direction equal or greater than 21 ft. 
lbs (single value) and equal or greater than 31 ft. lbs (average of 
3 specimens);
    (d) Conforming to ASTM A578-S9 ultrasonic testing requirements 
with acceptance criteria 3.2 mm flat bottom hole; and
    (e) Conforming to magnetic particle inspection in accordance 
with AMS 2301;
    (7) Alloy forged and rolled steel CTL plate over 407 mm in 
actual thickness and meeting the following requirements:
    (a) Made from Electric Arc Furnace melted, ladle refined & 
vacuum degassed, alloy steel with the following chemical composition 
(expressed in weight percentages):
     Carbon 0.25-0.30,
     Silicon not greater than 0.25,
     Manganese not greater than 0.50,
     Nickel 3.0-3.5,
     Sulfur not greater than 0.010,
     Phosphorus not greater than 0.020,
     Chromium 1.0-1.5,
     Molybdenum 0.6-0.9,
     Vanadium 0.08 to 0.12
     Boron 0.002-0.004,
     Oxygen not greater than 20 ppm,
     Hydrogen not greater than 2 ppm, and
     Nitrogen not greater than 60 ppm.
    (b) Having cleanliness in accordance with ASTM E45 method A 
(Thin and Heavy): A not exceeding 1.0(t) and 0.5(h), B not exceeding 
1.5(t) and 1.0(h), C not exceeding 1.0(t) and 0.5(h), and D not 
exceeding 1.5(t) and 1.0(h);
    (c) Having the following mechanical properties: A Brinell 
hardness not less than 350 HBW measured in all parts of the product 
including mid thickness; and having a Yield Strength of 145 ksi or 
more and UTS 160 ksi or more, Elongation of 15% or more and 
Reduction of area 35% or more; having charpy V at -40 degrees F in 
the transverse direction equal or greater than 20 ft. lbs (single 
value) and equal or greater than 25 ft. lbs (average of 3 
specimens);
    (d) Conforming to ASTM A578-S9 ultrasonic testing requirements 
with acceptance criteria 3.2 mm flat bottom hole; and
    (e) Conforming to magnetic particle inspection in accordance 
with AMS 2301.
    The products subject to the investigation are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under item numbers: 7208.40.3030, 7208.40.3060, 
7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 
7211.13.0000, 7211.14.0030, 7211.14.0045, 7225.40.1110, 
7225.40.1180, 7225.40.3005, 7225.40.3050, 7226.20.0000, and 
7226.91.5000.
    The products subject to the investigation may also enter under 
the following HTSUS item numbers: 7208.40.6060, 7208.53.0000, 
7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.19.1500, 
7211.19.2000, 7211.19.4500, 7211.19.6000, 7211.19.7590, 
7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 
7214.10.0000, 7214.30.0010, 7214.30.0080, 7214.91.0015, 
7214.91.0060, 7214.91.0090, 7225.11.0000, 7225.19.0000, 
7225.40.5110, 7225.40.5130, 7225.40.5160, 7225.40.7000, 
7225.99.0010, 7225.99.0090, 7226.11.1000, 7226.11.9060, 
7226.19.1000, 7226.19.9000, 7226.91.0500, 7226.91.1530, 
7226.91.1560, 7226.91.2530, 7226.91.2560, 7226.91.7000, 
7226.91.8000, and 7226.99.0180.
    The HTSUS subheadings above are provided for convenience and 
customs purposes only. The written description of the scope of the 
investigation is dispositive.

[FR Doc. 2016-28703 Filed 11-28-16; 8:45 am]
BILLING CODE 3510-DS-P