82 FR 16360 - Certain Carbon and Alloy Steel Cut-to-Length Plate From the Federal Republic of Germany: Final Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 63 (April 4, 2017)

The Department of Commerce (the Department) determines that certain carbon and alloy steel cut-to-length plate (CTL plate) from the Federal Republic of Germany (Germany) is being, or is likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is April 1, 2015, through March 31, 2016. The final dumping margins of sales at LTFV are listed below in the ``Final Determination'' section of this notice.

[Federal Register Volume 82, Number 63 (Tuesday, April 4, 2017)]
[Notices]
[Pages 16360-16363]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06628]


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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: Final Determination of Sales at Less Than 
Fair Value

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

SUMMARY: The Department of Commerce (the Department) determines that 
certain carbon and alloy steel cut-to-length plate (CTL plate) from the 
Federal Republic of Germany (Germany) is being, or is likely to be, 
sold in the United States at less than fair value (LTFV). The period of 
investigation (POI) is April 1, 2015, through March 31, 2016. The final 
dumping margins of sales at LTFV are listed below in the ``Final 
Determination'' section of this notice.

DATES: Effective April 4, 2017.

FOR FURTHER INFORMATION CONTACT: Ross Belliveau or David 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 and (202) 
482-4136, respectively.

SUPPLEMENTARY INFORMATION:

[[Page 16361]]

Background

    On November 14, 2016, the Department published the Preliminary 
Determination of sales at LTFV of CTL plate from Germany.\1\ On 
November 29, 2016, we amended our Preliminary Determination.\2\ A 
summary of the events that occurred since the Department published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum, which is hereby adopted by this 
notice.\3\
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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 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, 81 FR 85930 (November 29, 2016) 
(Amended Preliminary Determination).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Certain Carbon and Alloy Steel Cut-to-Length Plate 
From Germany,'' dated concurrently with this notice (Issues and 
Decision Memorandum).
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Scope of the Investigation

    The scope of the investigation covers CTL plate from Germany. For a 
complete description of the scope of the investigation, see Appendix I.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum. 
A list of the issues raised is attached to this notice as Appendix II. 
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 https://access.trade.gov, 
and it is available to all parties in the Central Records Unit, room B-
8024 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/index.html. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), in November and December 2016, we conducted verification of 
the sales and cost information submitted by AG der Dillinger 
H[uuml]ttenwerke (Dillinger) and Ilsenburger Grobblech GmbH, Salzgitter 
Mannesmann Grobblech GmbH, Salzgitter Flachstahl GmbH, and Salzgitter 
Mannesmann International GmbH (collectively, Salzgitter) for use in our 
final determination. We used standard verification procedures, 
including an examination of relevant accounting and production records, 
and original source documents provided by Dillinger and Salzgitter.\4\
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    \4\ For discussion of our verification findings, see the 
following memoranda: Memorandum, ``Verification of the Sales 
Response of AG der Dillinger H[uuml]ttenwerke in the Antidumping 
Duty Investigation of Certain Carbon and Alloy Steel Cut-to-Length 
Plate From Germany,'' dated December 20, 2016; Memorandum, 
``Verification of Berg Steel Pipe Corp. in the Antidumping Duty 
Investigation of Certain Carbon and Alloy Steel Cut-to-Length Plate 
From Germany,'' dated January 4, 2017; Memorandum, ``Verification of 
the Cost Response of Salzgitter AG in the Antidumping Duty 
Investigation of Certain Carbon and Alloy Steel Cut-To-Length Plate 
from Federal Republic of Germany,'' dated January 4, 2017; 
Memorandum, ``Verification of the Sales Response of Berg Steel Pipe 
Corp. in the Antidumping Duty Investigation of Certain Carbon and 
Alloy Steel Cut-To-Length Plate from the Federal Republic of 
Germany,'' dated January 25, 2017; Memorandum, ``Verification of the 
Home Market Sales Response of Salzgitter Mannesmann Grobblech GmbH 
in the Antidumping Duty Investigation of Certain Carbon and Alloy 
Steel Cut-to-Length Plate From the Federal Republic of Germany,'' 
dated January 31, 2017; Memorandum, ``Verification of the Sales 
Response of Salzgitter Mannesmann International GmbH in the 
Antidumping Duty Investigation of Certain Carbon and Alloy Steel 
Cut-to-Length Plate From the Federal Republic of Germany,'' dated 
February 1, 2017; Memorandum, ``Verification of the Sales Response 
of Salzgitter Mannesmann Stahlhandel GmbH International GmbH in the 
Antidumping Duty Investigation of Certain Carbon and Alloy Steel 
Cut-to-Length Plate From the Federal Republic of Germany,'' dated 
February 1, 2017.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
Dillinger and Salzgitter. For a discussion of these changes, see the 
``Margin Calculations'' section of the Issues and Decision Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the 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 margins, and margins determined entirely under section 776 of 
the Act.
    For the final determination, the Department calculated the all-
others rate based on a weighted average of Dillinger's and Salzgitter's 
margins using publicly-ranged quantities of their sales of subject 
merchandise.\5\
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    \5\ See Memorandum, ``Certain Carbon and Alloy Steel Cut-to-
Length Plate From Germany: Calculation of the Final Margin for All 
Other Companies,'' dated March 29, 2017. With two respondents, we 
normally calculate (A) a weighted-average of the dumping margins 
calculated for the mandatory respondents; (B) a simple average of 
the dumping margins calculated for the mandatory respondents; and 
(C) a weighted-average of the dumping margins calculated for the 
mandatory respondents using each company's publicly-ranged values 
for the merchandise under consideration. We compare (B) and (C) to 
(A) and select the rate closest to (A) as the most appropriate rate 
for all other companies. See Ball Bearings and Parts Thereof From 
France, Germany, Italy, Japan, and the United Kingdom: Final Results 
of Antidumping Duty Administrative Reviews, Final Results of 
Changed-Circumstances Review, and Revocation of an Order in Part, 75 
FR 53661, 53663 (September 1, 2010).
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Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                   Exporter/manufacturer                       dumping
                                                               margins
                                                              (percent)
------------------------------------------------------------------------
AG der Dillinger H[uuml]ttenwerke..........................         5.38
Ilsenburger Grobblech GmbH, Salzgitter Mannesmann Grobblech        22.90
 GmbH, Salzgitter Flachstahl GmbH, and Salzgitter
 Mannesmann International GmbH.............................
All Others.................................................        21.03
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed within five days of the 
date of publication of this notice to parties in this proceeding in 
accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of CTL plate from 
Germany, as described in Appendix I of this notice, which were entered, 
or withdrawn from warehouse, for consumption on or after November 14, 
2016, the date of publication of the preliminary determination of this 
investigation in the Federal Register.
    Further, the Department will instruct CBP to require a cash deposit 
equal to the estimated amount by which the normal value exceeds the 
U.S. price as shown above.

[[Page 16362]]

International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of the final affirmative determination of sales at LTFV. Because 
the final determination in this proceeding is affirmative, in 
accordance with section 735(b)(2) of the Act, the ITC will make its 
final determination as to whether the domestic industry in the United 
States is materially injured, or threatened with material injury, by 
reason of imports of CTL plate from Germany no later than 45 days after 
our final determination. If the ITC determines that material injury or 
threat of material injury does not exist, the proceeding will be 
terminated and all cash deposits will be refunded. If the ITC 
determines that such injury does exist, the Department will issue an 
antidumping duty order directing CBP to assess, upon further 
instruction by the Department, antidumping duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding Administrative Protective Orders (APO)

    This notice serves as a reminder to parties subject to APO of their 
responsibility concerning the disposition of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
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 the terms of an APO is a 
sanctionable violation.
    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.

    Dated: March 29, 2017.
Ronald K. Lorentzen,
Acting 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 investigation;
    (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;

    (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) 320-350HBW;

    (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;


[[Page 16363]]


    (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 75ksi min and UTS 95ksi 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 145ksi or 
more and UTS 160ksi 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.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Margin Calculations
VI. Discussion of the Issues
    1. Differential Pricing Methodology
    2. Application of Adverse Facts Available to Salzgitter
    3. Excluding Sales Produced by an Unaffiliated Manufacturer for 
Salzgitter
    4. Shipment Date for Salzgitter's Export Price Sales
    5. Level of Trade for Salzgitter
    6. Capping Freight Revenue for Berg Steel Pipe Corp.'s (BSPC's) 
Sales
    7. Capping BSPC's Revenues for Further Manufacturing by 
Associated Expenses
    8. Salzgitter's Short-Term Euro-Denominated Interest Rate
    9. Treatment of Salzgitter Home Market Resales of Further-
Processed CTL Plate
    10. Adding a Fabrication Product Characteristic for Salzgitter
    11. Salzgitter Credit Expense Revisions at Verification
    12. Salzgitter Home Market Revenue Items
    13. MGB Underreported Costs
    14. MGB Scrap Offset
    15. Cost Adjustments for Other Salzgitter Manufacturing Entities
    16. MGB's G&A Ratio Denominator
    17. Further Manufacturing General and Administrative (G&A) Ratio 
Denominator
    18. Further Manufacturing Scrap Offset
    19. Further Manufacturing Verification Minor Corrections
    20. Home Market Affiliated Service Center Sales for Dillinger
    21. Level of Trade for Dillinger
    22. Reassignment of Quality Codes for Dillinger
    23. Descaling Product Characteristic for Dillinger
    24. Interest Rate for Dillinger's U.S. Credit Expenses
    25. Excluding Sales of Military Grade Plate for Dillinger
    26. Payment Dates for Certain of Dillinger's Home Market and 
U.S. Sales
    27. Corrections from Verification for Dillinger
    28. Currency Conversions for Certain Movement Expenses Reported 
for Dillinger's U.S. Sales
    29. Inclusion of Interest Rate in the Affiliated Input Cost of 
Production for Dillinger
    30. Non-Prime Plate Product Costs for Dillinger
    31. Blast Furnace Coke Adjustment for Dillinger
    32. Dillinger's Reported Affiliated Party Costs
    33. G&A Expense Ratio Adjustment Related to Services Obtained 
from an Affiliated Party for Dillinger
    34. Cost Reconciliation Adjustments for Dillinger
VII. Recommendation

[FR Doc. 2017-06628 Filed 4-3-17; 8:45 am]
BILLING CODE 3510-DS-P