82 FR 16369 - Certain Carbon and Alloy Steel Cut-To-Length Plate From the Republic of Korea: Final Determination of Sales at Less Than Fair Value and Final Negative Critical Circumstances Determination

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 Republic of Korea 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 16369-16372]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06631]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-887]


Certain Carbon and Alloy Steel Cut-To-Length Plate From the 
Republic of Korea: Final Determination of Sales at Less Than Fair Value 
and Final Negative Critical Circumstances Determination

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 
Republic of Korea 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: Michael J. Heaney or Erin Kearney, AD/
CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-4475 and (202) 
482-0167, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On November 14, 2016, the Department published the Preliminary 
Determination of sales at LTFV of CTL plate from the Republic of 
Korea.\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\
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    \1\ See Certain Carbon and Alloy Steel Cut-to-Length Plate from 
the Republic of Korea: Affirmative Preliminary Determination of 
Sales at Less Than Fair Value and Postponement of Final 
Determination, 81 FR 79441 (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 and Final 
Negative Critical Circumstances Determination in the Less-Than-Fair-
Value Investigation of Certain Carbon and Alloy Steel Cut-to-Length 
Plate From the Republic of Korea,'' dated concurrently with this 
notice (Issues and Decision Memorandum).

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[[Page 16370]]

Scope of the Investigation

    The scope of the investigation covers CTL plate from the Republic 
of Korea. 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 December 2016 and February 2017, we verified the sales 
and cost information submitted by POSCO and POSCO Daewoo (collectively 
POSCO) 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 POSCO.\3\
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    \3\ For discussion of our verification findings, see the 
following memoranda: Memorandum to the File from Kalsang Dorjee, 
Staff Accountant, Through Ernest Z. Gziryan, Lead Accountant to Neal 
Halper Director, Office of Accounting, Office II, entitled 
``Verification of the Cost Response of POSCO and Daewoo 
International Corporation in the Antidumping Duty Investigation of 
Certain Carbon and Alloy Steel Cut-To-Length Plate from Korea,'' 
dated January 12, 2016; Memorandum to the File from Michael J. 
Heaney, and Moses Song, Analysts, AD/CVD Operations, Office VI, 
entitled ``Verification of the Sales Response of POSCO/Daewoo 
International Corporation in the Antidumping Duty Investigation of 
Certain Carbon and Alloy Steel Cut-to-Length Plate (CTL Plate) from 
the Republic of Korea,'' dated February 14, 2017; Memorandum from 
Michael J. Heaney to the File entitled ``Verification of the Sales 
Response of Daewoo Corporation America (DWA) in the Antidumping Duty 
Investigation of Certain Carbon and Alloy Steel Cut-to-Length Plate 
(CTL Plate) from the Republic of Korea,'' dated February 14, 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 
POSCO. For a discussion of these changes, see the ``Margin 
Calculations'' section of the Issues and Decision Memorandum.

Final Negative Determination of Critical Circumstances

    On July 26, 2016, the petitioners \4\ timely filed a critical 
circumstances allegation, pursuant to section 733(e)(1) of the Act and 
19 CFR 351.206(c)(1), alleging that critical circumstances exist with 
respect to imports of CTL plate from Korea.\5\ The Department 
preliminarily determined that critical circumstances did not exist with 
respect to POSCO and all-other producers/exporters from Korea.\6\ We 
received no comments concerning our Preliminary Critical Circumstances 
Determination. Accordingly, our analysis and conclusion concerning 
critical circumstances remain unchanged for our final determination.
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    \4\ The petitioners are ArcelorMittal USA LLC, Nucor 
Corporation, and SSAB Enterprises, LLC.
    \5\ See Letter from the petitioners, ``Re: Certain Carbon and 
Alloy Steel Cut-To-Length Plate from Austria, Belgium, Brazil, the 
Republic of Korea, Taiwan, and Turkey: Critical Circumstances 
Allegations,'' dated July 26, 2016.
    \6\ See Certain Carbon and Alloy Steel Cut-to-Length Plate from 
Austria, Belgium, Brazil, the Republic of Korea, Taiwan, and Turkey; 
Antidumping and Countervailing Duty Investigations: Preliminary 
Determinations of Critical Circumstances, 81 FR 61666 (September 7, 
2016) (Preliminary Critical Circumstances Determination).
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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. POSCO is the only respondent for which the Department 
calculated a company-specific margin. Therefore, for purposes of 
determining the ``all-others'' rate and in accordance with section 
735(c)(5)(A) of the Act, we are using the dumping margin calculated for 
POSCO, as referenced in the ``Final Determination'' section below.\7\
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    \7\ In accordance with the scope of this investigation, the 
application of POSCO's antidumping rate to all-other producers/
exporters applies only to subject CTL plate not within the physical 
description of cut-to-length carbon quality steel plate in the 
Notice of Amendment of Final Determination of Sales at Less Than 
Fair Value and Antidumping Duty Orders: Certain Cut-to-Length 
Carbon-Quality Steel Plate Products from France, India, Indonesia, 
Italy, Japan, and the Republic of Korea 65 FR 6585 (February 10, 
2000) (1999 Korea AD Order).
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    Also, as indicated by the scope of the investigation, at the time 
of the filing of the petition, there was an existing antidumping duty 
order on certain cut-to-length carbon-quality steel plate from 
Korea.\8\ The scope of the instant investigation covers only: (1) 
Subject CTL plate not within the physical description of cut-to-length 
carbon quality steel plate in the 1999 Korea AD Order regardless of 
producer or exporter; and (2) CTL plate produced and/or exported by 
those companies that were excluded or revoked from the 1999 Korea AD 
Order as of April 8, 2016. The only revoked or excluded company is 
POSCO.
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    \8\ See 1999 Korea AD Order.
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Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Exporter/manufacturer                       dumping
                                                                margins
                                                               (percent)
------------------------------------------------------------------------
POSCO.......................................................        7.39
All Others..................................................        7.39
------------------------------------------------------------------------

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 the 
Republic of Korea, 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.

International Trade Comission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of the

[[Page 16371]]

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 the Republic of Korea 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 unless the product is already covered by 
an order existing on that specific country (i.e., Certain Hot Rolled 
Steel Flat Products from Australia, Brazil, Japan, the Republic of 
Korea, the Netherlands, the Republic of Turkey, and the United 
Kingdom: Amended Final Affirmative Antidumping Determination for 
Australia, the Republic of Korea, and the Republic of Turkey and 
Antidumping Duty Orders, 81 FR 67962 (October 3, 2016), 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,

[[Page 16372]]

 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 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.
    At the time of the filing of the petition, there was an existing 
antidumping duty order on certain cut-to-length carbon-quality steel 
plate products from Korea. See Notice of Final Determination of 
Sales at Less Than Fair Value: Certain Cut-To-Length Carbon-Quality 
Steel Plate Products from Korea, 64 FR 73,196 (Dep't Commerce Dec. 
29, 1999), as amended, 65 FR 6,585 (Dep't Commerce Feb 10, 2000) 
(1999 Korea AD Order). The scope of the antidumping duty 
investigation with regard to cut-to-length plate from Korea covers 
only (1) subject cut-to-length plate not within the physical 
description of cut-to-length carbon quality steel plate in the 1999 
Korea AD Order, regardless of producer or exporter; and (2) cut-to-
length plate produced and/or exported by those companies that were 
excluded or revoked from the 1999 Korea AD Order as of April 8, 
2016. The only revoked or excluded company is Pohang Iron and Steel 
Company, also known as POSCO.
    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
    2. Whether POSCO Cost Reporting Merits Use of Adverse Facts 
Available
    3. Expenses Related to Greenhouse Gas Emissions Program
    4. Investment Activities
    5. Litigation Expenses
    6. POSCO Sales of CONNUM Used in Line Pipe Applications
    7. Collapsing
    8. Calculation of POSCO Freight Cap
    9. Whether to Grant POSCO a CEP Offset
VII. Recommendation

[FR Doc. 2017-06631 Filed 4-3-17; 8:45 am]
BILLING CODE 3510-DS-P