82 FR 16372 - Certain Carbon and Alloy Steel Cut-To-Length Plate From Taiwan: Final Determination of Sales at Less Than Fair Value and Final Negative 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 Taiwan 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 do not exist with respect to imports 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 16372-16375]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06703]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-858]


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

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 
Taiwan 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 do not exist with respect to imports 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: Davina Friedmann or Tyler Weinhold, 
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) 482-0698 and (202) 
482-1121, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 14, 2016, the Department published the Preliminary 
Determination of sales at LTFV of CTL plate from Taiwan.\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

[[Page 16373]]

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 
France: Preliminary Determination of Sales at Less Than Fair Value, 
81 FR 79420 (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, ``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 Taiwan,'' 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 Taiwan. 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, and in January 2017, we 
verified the sales and cost information submitted by China Steel 
Corporation (China Steel) and Shang Chen Steel Co., Ltd. (Shang Chen) 
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 China 
Steel and Shang Chen.\3\
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    \3\ For discussion of our verification findings, see the 
following memoranda: For China Steel, see Memorandum to the File 
from Tyler Weinhold, Davina Friedmann, and Tom Bellhouse, Case 
Analysts, AD/CVD Operations, Office VI, entitled ``Verification of 
the Sales Responses of China Steel corp. in the Investigation on 
Certain Carbon and Alloy Steel Cut-to-Length Plate From France,'' 
dated February 15, 2017 (China Steel Sales Verification Report); and 
Memorandum to Neal Halper from Gary Urso, Senior Accountant, Office 
of Accounting, entitled ``Verification of the Cost Response of China 
Steel Corporation in the Antidumping Duty Investigation of Carbon 
and Alloy Steel Cut-to-Length Plate from Taiwan,'' dated February 9, 
2017 (China Steel Cost Verification Report). For Shang Chen, see 
Memorandum to the File from Davina Friedmann, Tyler Weinhold, and 
Tom Bellhouse, Case Analysts, AD/CVD Operations, Office VI, entitled 
``Verification of the Sales Responses of Shang Chen Steel Co., Ltd. 
in the Investigation on Certain Carbon and Alloy Steel Cut-to-Length 
Plate from Taiwan,'' dated February 9, 2017 (Shang Chen Sales 
Verification Report); Memorandum to Neal Halper File, Director of 
Accounting, from Lakshmi Jones Accountant, Office of Accounting, 
entitled ``Verification of the Cost of Production (COP) and 
Constructed Value (CV) Response of Shang Chen Steel Co. Ltd. (SCS) 
in the antidumping duty investigation of Cut-to-Length Plate from 
Taiwan,'' dated January 26, 2017 (Shang Chen Cost Verification 
Report).
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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 
China Steel and Shang Chen. For a discussion of these changes, see the 
``Margin Calculations'' section of the Issues and Decision Memorandum.

Final Determination of Negative Critical Circumstances

    For the Preliminary Determination, the Department found that 
critical circumstances existed with respect to imports of CTL plate 
from China Steel and the companies that are covered by the ``all 
others'' rate, but did not exist for imports from Shang Chen.\4\ We 
modified our critical circumstances findings for China Steel and the 
companies that are covered by the ``all others'' rate for the final 
determination. For further discussion, see the Issues and Decision 
Memorandum at Comment 11. Thus, pursuant to section 735(a)(3) of the 
Act and 19 CFR 351.206, we find that critical circumstances do not 
exist with respect to subject merchandise produced or exported by China 
Steel, Shang Chen, or the companies that are covered by the ``all 
others'' rate.
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    \4\ See Preliminary Determination, and accompanying Preliminary 
Decision Memorandum at 4 to 5.
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Adverse Facts Available

    In making this final determination, the Department relied, in part, 
on facts available for China Steel and Shang Chen. Furthermore, because 
China Steel and Shang Chen did not act to the best of their ability in 
responding to certain of the Department's requests for information, we 
drew an adverse inference where appropriate in selecting from among the 
facts otherwise available.\5\ For further information, see the 
accompanying Issues and Decision Memorandum.
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    \5\ See sections 776(a) and (b) of the Act.
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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. For the final determination, the Department calculated the 
``all others'' rate based on a simple average of China Steel's and 
Shang Chen's margins.\6\
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    \6\ Because we did not have useable publicly-ranged data on the 
record, we based the all others rate on the simple average of the 
mandatory respondents' margins.
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Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Exporter/manufacturer                       dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
China Steel Corporation.....................................        6.95
Shang Chen Steel Co., Ltd...................................        3.62
All Others..................................................        5.29
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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 
Taiwan, 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. 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.
    Further, because our final critical circumstances determination is 
negative, in accordance with section 735(c)(3) of the Act, we will 
instruct CBP to terminate the retroactive suspension of liquidation 
ordered at the Preliminary Determination for China

[[Page 16374]]

Steel and ``all other'' companies and to release any bond or security 
and refund any cash deposits required with respect to entries covered 
by the retroactive suspension of liquidation.

International Trade Comission (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 France 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,

[[Page 16375]]

 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.
    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. Use of Adverse Facts Available
    a. China Steel
    b. Shang Chen
IV. Scope of the Investigation
V. Scope Comments
VI. Affiliations and Collapsing
VII. Margin Calculations
VIII. Discussion of Issues
    a. China Steel
    1. Whether to Apply Total Adverse Facts Available to China Steel
    2. China Steel Excluded Operating Costs
    3. China Steel Under-Reported Prime Merchandise
    4. China Steel Under-Reported G&A Expenses
    5. China Steel Under-Reported Interest Expenses
    6. China Steel Improperly Reduced COGS
    7. China Steel Date of Sale
    8. China Steel Home Market Post-Sale Price Adjustments
    9. China Steel Destination Codes
    10. China Steel Packing Expenses
    11. Critical Circumstances
    12. Alleged Errors in China Steel Verification Report
    b. Shang Chen
    13. Total Adverse Facts Available for Shang Chen
    14. Adjustments to the Reported Per-Unit Cost of Manufacturing
    15. Shang Chen General and Administrative Expenses
    16. Shang Chen Scrap Offset
    17. Quarterly Cost Data
    18. Shang Chen Differential Pricing Analysis
    19. Shang Chen Date of Sale
    20. Shang Chen Sales-Related Revenues
    21. Shang Chen Reported Packing Cost
    22. Alleged Error in Shang Chen's Margin Calculation Program
IX. Recommendation

[FR Doc. 2017-06703 Filed 4-3-17; 8:45 am]
BILLING CODE 3510-DS-P