82 FR 16366 - Certain Carbon and Alloy Steel Cut-To-Length Plate From Austria: Final Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances

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 Austria is being, or is likely to be, sold in the United States at less than fair value (LTFV). In addition, we determine that critical circumstances exist with respect to voestalpine, but not for all-other Austrian producers, imports, or exports of the subject merchandise. 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 16366-16369]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06634]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-433-812]


Certain Carbon and Alloy Steel Cut-To-Length Plate From Austria: 
Final Determination of Sales at Less Than Fair Value and Final 
Affirmative Determination of Critical Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
certain carbon and alloy steel cut-to-length plate (CTL plate) from 
Austria is being, or is likely to be, sold in the United States at less 
than fair value (LTFV). In addition, we determine that critical 
circumstances exist with respect to voestalpine, but not for all-other 
Austrian producers, imports, or exports of the subject merchandise. 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: Edythe Artman or Madeline Heeren, AD/
CVD Operations, Office IV, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-3931 and (202) 
482-9179, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 14, 2016, the Department published the Preliminary 
Determination of sales at LTFV of CTL plate from Austria.\1\ 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.\2\
---------------------------------------------------------------------------

    \1\ See Certain Carbon and Alloy Steel Cut-to-Length Plate from 
Austria: Preliminary Determination of Sales at Less Than Fair Value 
and Postponement of the Final Determination, 81 FR 79416 (November 
14, 2016) (Preliminary Determination).
    \2\ See Memorandum from Gary Taverman, Associate Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, to Ronald K. Lorentzen, Acting Assistant Secretary for 
Enforcement and Compliance, entitled ``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 Austria,'' dated concurrently with, and hereby 
adopted by, this notice (Issues and Decision Memorandum).

---------------------------------------------------------------------------

[[Page 16367]]

Scope of the Investigation

    The scope of the investigation covers CTL plate from Austria. 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 2016 through January 2017 we verified the sales 
and cost information submitted by voestalpine \3\ 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 voestalpine.\4\
---------------------------------------------------------------------------

    \3\ In a Memorandum to Scot Fullerton, Director, Office VI, on 
the subject of the ``Less Than Fair Value Investigation of Certain 
Carbon and Alloy Steel Cut-To-Length Plate from Austria: Preliminary 
Affiliation and Collapsing Memorandum for voestalpine,'' dated 
November 4, 2016, we preliminarily determined that the following 
companies were affiliated and should be treated as a single entity 
for purposes of the investigation, pursuant to section 771(33)(F) of 
the Act: voestalpine Grobblech and voestalpine Steel Service Center 
GmbH, which are producers of carbon plate; Bohler Edelstahl GmbH & 
Co KG and Bohler Bleche GmbH & Co KG, producers of alloy plate; and 
Bohler International GmbH, a home-market sales affiliate 
(collectively voestalpine). The finding has not changed for the 
final determination and we refer to the collapsed entity as 
``voestalpine'' throughout this notice.
    \4\ For discussion of our verification findings, see the 
following memoranda: Memorandum to the File from Madeline Heeren and 
Chelsey Simonovich, Analysts, AD/CVD Operations, Office VI, entitled 
``Verification of the Sales Response of voestalpine Steel and 
Service Center GmbH (SSC) and Bohler Bleche GmbH & Co. KG (BBG) in 
the Antidumping Duty Investigation from Austria,'' dated February 9, 
2017; Memorandum to the File from Edythe Artman, Madeline Heeren, 
and Chelsey Simonovich, Analysts, AD/CVD Operations, Office VI, 
entitled ``Verification of Bohler-Uddeholm Corporation in the 
Antidumping Duty Investigation of Certain Carbon and Alloy Steel 
Cut-to-Length Plate from Austria,'' dated February 9, 2017; 
Memorandum to the File from Milton Koch, Accountant, and Taija A. 
Slaughter, Supervisory Accountant, Office of Accounting, entitled 
``Verification of the Cost Response of voestalpine AG in the 
Antidumping Duty Investigation of Certain Carbon and Alloy Steel 
Cut-to-Length Plate from Austria,'' dated January 30, 2017; and 
Memorandum to the File from Milton Koch, Accountant, and Taija A. 
Slaughter, Supervisory Accountant, entitled ``Verification of the 
Cost Response of voestalpine AG in the Antidumping Duty 
Investigation of Certain Carbon and Alloy Steel Cut-to-Length Plate 
from Austria,'' dated February 1, 2017.
---------------------------------------------------------------------------

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 
voestalpine. For a discussion of these changes, see the ``Margin 
Calculations'' section of the Issues and Decision Memorandum.

Final Affirmative Determination of Critical Circumstances

    For the Preliminary Determination, the Department found that 
critical circumstances exist with respect to imports of CTL plate from 
voestalpine and do not exist with respect to imports of CTL plate from 
the companies that are covered by the ``all others'' rate.\5\ Our 
analysis and conclusion concerning critical circumstances remain 
unchanged for our final determination. For further discussion, see the 
Issues and Decision Memorandum and Final Critical Circumstances Data 
Memo.\6\
---------------------------------------------------------------------------

    \5\ See Preliminary Determination, and accompanying Preliminary 
Decision Memorandum at 23.
    \6\ See Memorandum to the File, ``Calculations for Final 
Determination of Critical Circumstances in the Antidumping Duty 
Investigation of Certain Carbon and Alloy Steel Cut-to-Length Plate 
from Austria,'' dated March 29, 2017 (Final Critical Circumstances 
Data Memo).
---------------------------------------------------------------------------

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 margins, and margins determined entirely under section 776 of 
the Act. voestalpine is the only respondent for which the Department 
calculated a specific margin. Therefore, for purposes of calculating 
the ``all-others'' rate, and pursuant to section 735(c)(5)(A) of the 
Act, we are using the dumping margin calculated for voestalpine as the 
all-others rate, as referenced in the ``Final Determination'' section 
below.

Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Exporter/manufacturer                       dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Bohler Bleche GmbH & Co KG..................................       53.72
Bohler Edelstahl GmbH & Co KG
Bohler International GmbH
voestalpine Grobblech GmbH
voestalpine Steel Service Center GmbH
All Others..................................................       53.72
------------------------------------------------------------------------

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 
Austria, 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. For entries made by voestalpine, 
in accordance with section 735(c)(4)(A) of the Act, because we continue 
to find that critical circumstances exist, we will instruct CBP to 
continue to suspend liquidation of all appropriate entries of CTL plate 
from Austria which were entered, or withdrawn from warehouse, for 
consumption on or after August 16, 2016, which is 90 days prior to 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.

International Trade Comission (ITC) Notification

    In accordance with section 735(c)(1)(A) and (d) of the Act, we will 
notify the ITC of the final affirmative determination of sales at LTFV. 
Because the final determination in this

[[Page 16368]]

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 
Austria 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) 320-350 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

[[Page 16369]]

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. Critical Circumstances
IV. Scope of the Investigation
V. Scope Comments
VI. Margin Calculations
VII. Discussion of the Issues
    1. Product Characteristic and Model Matching Methodology
    2. Collapsing of Companies by Division
    3. Changes to Level of Trade Analysis
    4. Use of Actual Weight Bases
    5. Adjustment to Home Market Sales for Hub Fee
    6. Calculation of U.S. Indirect Selling Expenses for Non-
Further-Manufactured Products
    7. Use of Revised Databases to Calculate Final Dumping Margin
    8. Implementation of Verification Findings
    a. Reported Weight for a CEP Sale
    b. Cost Variances
    9. BBG's Purchases from Affiliated Suppliers
    10. Grobblech and SSC's Affiliated Supplier Purchases
    11. Record Keeping Based on Country of Origin
    12. Differential Pricing
VIII. Recommendation

[FR Doc. 2017-06634 Filed 4-3-17; 8:45 am]
BILLING CODE 3510-DS-P