82 FR 58175 - Countervailing Duty Investigation of Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From the People's Republic of China: Final Affirmative Determination, and Final Affirmative Determination of Critical Circumstances, in Part
DEPARTMENT OF COMMERCE
International Trade Administration Federal Register Volume 82, Issue 236 (December 11, 2017)
International Trade Administration
Federal Register Volume 82, Issue 236 (December 11, 2017)
| Page Range | 58175-58178 | |
| FR Document | 2017-26608 |
[Federal Register Volume 82, Number 236 (Monday, December 11, 2017)] [Notices] [Pages 58175-58178] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-26608] ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE International Trade Administration [C-570-059] Countervailing Duty Investigation of Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel From the People's Republic of China: Final Affirmative Determination, and Final Affirmative Determination of Critical Circumstances, in Part AGENCY: Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of certain cold-drawn mechanical tubing of carbon and alloy steel (cold-drawn mechanical tubing) from the People's Republic of China (PRC), as provided in section 705 of the Tariff Act of 1930 (the Act). The period of investigation is January 1, 2016, through December 31, 2016. For more information on the estimated subsidy rates, see the ``Final Determination'' section of this notice. DATES: Applicable December 11, 2017. FOR FURTHER INFORMATION CONTACT: Shanah Lee at (202) 482-6386 or Alex Rosen at (202) 482-7814, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230. Background The Department published the Preliminary Determination on September 25, 2017.\1\ A summary of 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.\2\ 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 http://access.trade.gov, and is available to all parties in the Central Records Unit, Room B8024 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/. The signed Issues and Decision Memorandum and the electronic version are identical in content. --------------------------------------------------------------------------- \1\ See Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, 82 FR 44562 (September 25, 2017) (Preliminary Determination). \2\ See Memorandum, ``Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China,'' dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). --------------------------------------------------------------------------- Scope of the Investigation The product covered by this investigation is cold-drawn mechanical tubing from the PRC. For a complete description of the scope of this investigation, see Appendix I of this notice. Scope Comments In the Department's Preliminary Scope Decision Memorandum, we set aside a period of time for parties to raise issues regarding product coverage (i.e., scope) in scope case briefs or other written comments on scope issues.\3\ Certain interested parties commented on the scope of the investigation as it appeared in the Preliminary Scope Decision Memorandum. For a summary of the product coverage comments and rebuttal responses submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, see the Final Scope Decision Memorandum.\4\ See the scope in Appendix I to this notice. --------------------------------------------------------------------------- \3\ Seeemorandum, ``Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the Federal Republic of Germany, India, Italy, the Republic of Korea, the People's Republic of China, and Switzerland: Scope Comments Decision Memorandum for the Preliminary Determinations'' dated November 15, 2017 (Preliminary Scope Decision Memorandum). \4\ See Memorandum, ``Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the Federal Republic of Germany, India, Italy, the Republic of Korea, the People's Republic of China, and Switzerland: Scope Comments Decision Memorandum for the Final Determination'' (Final Scope Decision Memorandum), dated concurrently with this final determination. --------------------------------------------------------------------------- [[Page 58176]] Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation and the issues raised in the case and rebuttal briefs by parties in this investigation are discussed in the Issues and Decision Memorandum. A list of the issues that parties raised, and to which we responded in the Issues and Decision Memorandum, is attached to this notice at Appendix II. Verification As provided in section 782(i) of the Act, in September 2017, the Department verified the subsidy information reported by respondents Jiangsu Hongyi Steel Pipe Co., Ltd. (Hongyi) and Zhangjiagang Huacheng Import & Export Co., Ltd. (Huacheng I&E). We used standard verification procedures, including an examination of relevant accounting and production records, and original source documents provided by the respondents.\5\ --------------------------------------------------------------------------- \5\ See memorandum to the file, ``Verification of the Questionnaire Responses of Jiangsu Hongyi Steel Pipe Co., Ltd.,'' dated October 19, 2017; and memorandum to the file, ``Verification of the Questionnaire Responses of Zhangjiagang Huacheng Import & Export Co., Ltd. (Huacheng I&E) and Its Cross-Owned Affiliates'' dated October 18, 2017. --------------------------------------------------------------------------- Use of Adverse Facts Available In making this final determination, the Department relied, in part, on facts available. As discussed in the Issues and Decision Memorandum, because the Government of the People's Republic of China (GOC) did not act to the best of its ability in responding to certain of the Department's requests for information, we drew adverse inferences, where appropriate, in selecting from among the facts otherwise available, pursuant to section 776(a) and (b) of the Act.\6\ For further information, see the section ``Use of Facts Otherwise Available and Adverse Inferences'' in the accompanying Issues and Decision Memorandum. --------------------------------------------------------------------------- \6\ See Issues and Decision Memorandum at ``Use of Facts Otherwise Available and Adverse Inferences'' section. --------------------------------------------------------------------------- Changes Since the Preliminary Determination Based on our review and analysis of the comments received from parties, and minor corrections accepted at verification, we made certain changes to the respondents' subsidy rate calculations since the Preliminary Determination. For a discussion of these changes, see the Issues and Decision Memorandum and Final Analysis Memoranda.\7\ --------------------------------------------------------------------------- \7\ See Issues and Decision Memorandum; see also memorandum to the file, ``Countervailing Duty Investigation of Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China: Analysis Memorandum for the Final Determination of the Countervailing Duty Investigation of Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China: Jiangsu Hongyi Pipe Co., Ltd.,'' dated concurrently with this determination (Hongyi's Final Analysis Memorandum); and, memorandum to the file, ``Countervailing Duty Investigation of Certain Cold- Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China: Calculation Memorandum for the Final Determination for Zhangjiagang Huacheng Import & Export Co., Ltd.,'' dated concurrently with this determination (Huacheng's Final Analysis Memorandum). --------------------------------------------------------------------------- Final Affirmative Determination of Critical Circumstances, in Part Due to the timing of the petitioners' critical circumstance allegation and in accordance with 19 CFR 351.206(b) and (e) the Department did not make a preliminary critical circumstances determination.\8\ Based on information provided by the petitioners, data placed on the record of this investigation by the mandatory respondents Hongyi and Huacheng I&E, and GTA data collected by the Department, for the final determination, the Department finds that, in accordance with 705(a)(2) of the Act, critical circumstances do not exist for individually-examined respondents Huacheng I&E and Hongyi, but that critical circumstances do exist for non-individually examined companies receiving the ``All-Others'' rate in this investigation. A discussion of the determination can be found in the Issues and Decision Memorandum. --------------------------------------------------------------------------- \8\ See the petitioners' letter, ``Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the People's Republic of China, Italy, and the Republic of Korea--Critical Circumstances Allegation,'' dated October 23, 2017. --------------------------------------------------------------------------- All-Others Rate In accordance with section 705(c)(1)(B)(i)(I) of the Act, we calculated a countervailing duty (CVD) rate for each individually- investigated producer/exporter of the subject merchandise. Consistent with section 705(c)(5)(A)(i) of the Act, we calculated an estimated ``all-others'' rate for exporters/producers not individually examined. Section 705(c)(5)(A)(i) of the Act provides that the ``all-others'' rate shall be an amount equal to the weighted average of the countervailable subsidy rates established for individually investigated exporters/producers, excluding any rates that are zero or de minimis or any rates determined entirely under section 776 of the Act. Neither of the mandatory respondents' rates in this final determination was zero or de minimis or based entirely on facts otherwise available. Accordingly, the Department calculated the all-others' rate using a simple average of the individual estimated subsidy rates calculated for the examined respondents. Final Determination We determine the total estimated countervailable subsidy rates to be: --------------------------------------------------------------------------- \9\ Unchanged from Preliminary Determination, the Department finds the following companies to be cross-owned with Hongyi: Hongren Precision Pipe Manufacturing Co., Ltd and Changzhou Kemeng Mechanical Equipment Co., Ltd. \10\ Unchanged from Preliminary Determination, the Department finds the following companies to be cross-owned with Huacheng I&E: Zhangjiagang Huacheng Industry Pipe Making Corporation, Zhangjiagang Salem Fine Tubing Co., Ltd., Zhangjiagang Huacheng Investment Holding Co., Ltd., Zhangjiagang HZB Special Material Technology Co., Ltd. and Zhangjiagang Huacheng Special Materials Corporation. ------------------------------------------------------------------------ Subsidy rate Company (%) ------------------------------------------------------------------------ Jiangsu Hongyi Steel Pipe Co., Ltd \9\.................. 21.41 Zhangjiagang Huacheng Import & Export Co., Ltd \10\..... 18.27 All-Others.............................................. 19.84 ------------------------------------------------------------------------ Disclosure We intend to disclose the calculations performed to interested parties within five days of the public announcement of this final determination in accordance with 19 CFR 351.224(b). Continuation of Suspension of Liquidation In accordance with section 703(d) of the Act, we will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all appropriate entries of cold-drawn mechanical tubing from the PRC, as described in Appendix I of this notice, which were entered, or withdrawn from warehouse, for consumption on or after September 25, 2017, the date of the publication of the Preliminary Determination in the Federal Register. Furthermore, we will instruct CBP to require a cash deposit for such entries of merchandise in the amounts indicated above, pursuant to section 705(c)(1)(B)(ii) of the Act. Section 705(c)(4) of the Act provides that, given an affirmative determination of critical circumstances, any suspension of liquidation shall apply to unliquidated entries of merchandise entered, or withdrawn from warehouse, for consumption on or after the date which is 90 days before the date on which the suspension of liquidation was [[Page 58177]] first ordered. The Department finds that critical circumstances exist for all other exporters or producers of subject merchandise. In accordance with section 705(c)(4) of the Act, the suspension of liquidation shall apply to unliquidated entries of merchandise from all other exporters/producers that were entered, or withdrawn from warehouse, for consumption on or after June 27, 2017, which is 90 days before the suspension of liquidation was first ordered. U.S. International Trade Commission (ITC) Notification In accordance with section 705(d) of the Act, we will notify the ITC of our final affirmative CVD determination. In addition, we are making available to the ITC all non-privileged and non-proprietary information relating to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Enforcement and Compliance. If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated and all cash deposits will be refunded. If the ITC determines that such injury does exist, we will issue a CVD order directing CBP to assess, upon further instruction by the Department, CVDs 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, as discussed above in the ``Continuation of Suspension of Liquidation'' section. Notification Regarding Administrative Protective Orders (APOs) In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to an APO of their responsibility concerning the destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return/destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation that is subject to sanction. This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act. Dated: December 4, 2017. Gary Taverman, Deputy Assistance Secretary for Antidumping and Countervailing Duty Operations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance. Appendix I Scope of the Investigation The scope of this investigation covers cold-drawn mechanical tubing of carbon and alloy steel (cold-drawn mechanical tubing) of circular cross-section, 304.8 mm or more in length, in actual outside diameters less than 331mm, and regardless of wall thickness, surface finish, end finish or industry specification. The subject cold-drawn mechanical tubing is a tubular product with a circular cross-sectional shape that has been cold-drawn or otherwise cold- finished after the initial tube formation in a manner that involves a change in the diameter or wall thickness of the tubing, or both. The subject cold-drawn mechanical tubing may be produced from either welded (e.g., electric resistance welded, continuous welded, etc.) or seamless (e.g., pierced, pilgered or extruded, etc.) carbon or alloy steel tubular products. It may also be heat treated after cold working. Such heat treatments may include, but are not limited to, annealing, normalizing, quenching and tempering, stress relieving or finish annealing. Typical cold-drawing methods for subject merchandise include, but are not limited to, drawing over mandrel, rod drawing, plug drawing, sink drawing and similar processes that involve reducing the outside diameter of the tubing with a die or similar device, whether or not controlling the inside diameter of the tubing with an internal support device such as a mandrel, rod, plug or similar device. Other cold-finishing operations that may be used to produce subject merchandise include cold-rolling and cold- sizing the tubing. Subject cold-drawn mechanical tubing is typically certified to meet industry specifications for cold-drawn tubing including but not limited to: (1) American Society for Testing and Materials (ASTM) or American Society of Mechanical Engineers (ASME) specifications ASTM A-512, ASTM A-513 Type 3 (ASME SA513 Type 3), ASTM A-513 Type 4 (ASME SA513 Type 4), ASTM A-513 Type 5 (ASME SA513 Type 5), ASTM A- 513 Type 6 (ASME SA513 Type 6), ASTM A-519 (cold-finished); (2) SAE International (Society of Automotive Engineers) specifications SAE J524, SAE J525, SAE J2833, SAE J2614, SAE J2467, SAE J2435, SAE J2613; (3) Aerospace Material Specification (AMS) AMS T-6736 (AMS 6736), AMS 6371, AMS 5050, AMS 5075, AMS 5062, AMS 6360, AMS 6361, AMS 6362, AMS 6371, AMS 6372, AMS 6374, AMS 6381, AMS 6415; (4) United States Military Standards (MIL) MIL-T-5066 and MIL-T- 6736; (5) foreign standards equivalent to one of the previously listed ASTM, ASME, SAE, AMS or MIL specifications including but not limited to: (a) German Institute for Standardization (DIN) specifications DIN 2391-2, DIN 2393-2, DIN 2394-2); (b) European Standards (EN) EN 10305-1, EN 10305-2, EN 10305-4, EN 10305-6 and European national variations on those standards (e.g., British Standard (BS EN), Irish Standard (IS EN) and German Standard (DIN EN) variations, etc.); (c) Japanese Industrial Standard (JIS) JIS G 3441 and JIS G 3445; and (6) proprietary standards that are based on one of the above- listed standards. The subject cold-drawn mechanical tubing may also be dual or multiple certified to more than one standard. Pipe that is multiple certified as cold-drawn mechanical tubing and to other specifications not covered by this scope, is also covered by the scope of this investigation when it meets the physical description set forth above. 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. For purposes of this scope, the place of cold-drawing determines the country of origin of the subject merchandise. Subject merchandise that is subject to minor working in a third country that occurs after drawing in one of the subject countries including, but not limited to, heat treatment, cutting to length, straightening, nondestructive testing, deburring or chamfering, remains within the scope of this investigation. 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. Merchandise that meets the physical description of cold-drawn mechanical tubing above is within the scope of the investigation even if it is also dual or multiple certified to an otherwise excluded specification listed below. The following products are outside of, and/or specifically excluded from, the scope of this investigation: (1) Cold-drawn stainless steel tubing, containing 10.5 percent or more of chromium by weight and not more than 1.2 percent of carbon by weight; (2) products certified to one or more of the ASTM, ASME or American Petroleum Institute (API) specifications listed below:ASTM A-53; ASTM A-106; ASTM A-179 (ASME SA 179); ASTM A-192 (ASME SA 192); ASTM A-209 (ASME SA 209); ASTM A-210 (ASME SA 210); ASTM A-213 (ASME SA 213); ASTM A-334 (ASME SA 334); ASTM A-423 (ASME SA 423); ASTM A-498; ASTM A-496 (ASME SA 496); ASTM A-199; ASTM A-500; ASTM A-556; ASTM A-565; API 5L; and API 5CT except that any cold-drawn tubing product certified to one of the above excluded specifications will not be excluded from the scope if it is also dual- or multiple-certified to any other specification that otherwise would fall within the scope of this investigation. [[Page 58178]] The products subject to the investigation are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under item numbers: 7304.31.3000, 7304.31.6050, 7304.51.1000, 7304.51.5005, 7304.51.5060, 7306.30.5015, 7306.30.5020, 7306.50.5030. Subject merchandise may also enter under numbers 7306.30.1000 and 7306.50.1000. 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. Period of Investigation IV. Final Determination of Critical Circumstances, in Part A. Background B. Legal Framework C. Critical Circumstances Allegation D. Analysis V. Scope Comments VI. Scope of the Investigation VII. Application of the Countervailing Duty Law to Imports From the PRC VIII. Subsidies Valuation A. Allocation Period B. Attribution of Subsidies C. Denominators IX. Benchmarks and Discount Rates X. Use of Facts Otherwise Available and Adverse Inferences XI. Analysis of Programs A. Programs Determined To Be Countervailable B. Programs Determined Not To Be Used During the POI by Hongyi and Huacheng I&E XII. Analysis of Comments Comment 1: The Countervailability of the Government Provision of Coking Coal and Steam Coal for Less Than Adequate Remuneration (LTAR) Comment 2: The Provision of Electricity for LTAR Comment 3: The Government Provision of Inputs for LTAR a. Input Producers are ``Authorities'' b. Inputs are Specific c. Input Industries are Distorted (Tier-One Benchmark for Inputs for LTAR) Comment 4: Benchmarks for Steel Rounds/Billets, Hot-Rolled and Cold-Rolled Coiled Steel Comment 5: The Appropriate Benchmark for Ocean Freight Comment 6: External Benchmark Interest Rates for Loans Comment 7: GOC Policy Loans During the POI Comment 8: Huacheng I&E's Bank Acceptance Bills Comment 9: The Export Buyer's Credit Program Comment 10: Income Tax Deductions for R&D Expenses Comment 11: The GOC's Claims Regarding Verification Comment 12: The Department's Investigation of Uninitiated Programs Comment 13: Minor Corrections to the Department's Preliminary Benefit Calculation XIII. Recommendation [FR Doc. 2017-26608 Filed 12-8-17; 8:45 am] BILLING CODE 3510-DS-P
![Federal Register / Vol. 82, No. 236 / Monday, December 11, 2017 / Notices 58175
• ASTM A–53; Comment 10: The Department’s events that occurred since the
• ASTM A–106; Calculation Methodology for Tube Department published the Preliminary
• ASTM A–179 (ASME SA 179); Investments’ EPCGS Benefits Determination, as well as a full
• ASTM A–192 (ASME SA 192); Comment 11: The Department’s discussion of the issues raised by parties
• ASTM A–209 (ASME SA 209); Application of AFA for Certain
• ASTM A–210 (ASME SA 210); Unreported Subsidies Discovered at
for this final determination, may be
• ASTM A–213 (ASME SA 213); Tube Investments’ Verification found in the Issues and Decision
• ASTM A–334 (ASME SA 334); Comment 12: The Department’s Memorandum.2 The Issues and Decision
• ASTM A–423 (ASME SA 423); Calculation Methodology for the Income Memorandum is a public document and
• ASTM A–498; Tax for Research and Development is on file electronically via Enforcement
• ASTM A–496 (ASME SA 496); Program and Compliance’s Antidumping and
• ASTM A–199; Comment 13: The Department’s Decision to Countervailing Duty Centralized
• ASTM A–500; Countervail Benefits for Tube Electronic Service System (ACCESS).
• ASTM A–556; Investments’ Non-Subject Merchandise ACCESS is available to registered users
• ASTM A–565; Comment 14: The Revised Sales and at http://access.trade.gov, and is
• API 5L; and Subsidy Data Presented as Minor
• API 5CT Corrections
available to all parties in the Central
XI. Conclusion Records Unit, Room B8024 of the main
except that any cold-drawn tubing product
Department of Commerce building. In
certified to one of the above excluded [FR Doc. 2017–26609 Filed 12–8–17; 8:45 am]
specifications will not be excluded from the addition, a complete version of the
BILLING CODE 3510–DS–P
scope if it is also dual- or multiple-certified Issues and Decision Memorandum can
to any other specification that otherwise be accessed directly at http://
would fall within the scope of these enforcement.trade.gov/frn/. The signed
DEPARTMENT OF COMMERCE
investigations. Issues and Decision Memorandum and
The products subject to the investigations the electronic version are identical in
International Trade Administration
are currently classified in the Harmonized content.
Tariff Schedule of the United States (HTSUS) [C–570–059]
under item numbers: 7304.31.3000, Scope of the Investigation
7304.31.6050, 7304.51.1000, 7304.51.5005, Countervailing Duty Investigation of The product covered by this
7304.51.5060, 7306.30.5015, 7306.30.5020, Cold-Drawn Mechanical Tubing of investigation is cold-drawn mechanical
7306.50.5030. Subject merchandise may also
Carbon and Alloy Steel From the tubing from the PRC. For a complete
enter under numbers 7306.30.1000 and
7306.50.1000. The HTSUS subheadings People’s Republic of China: Final description of the scope of this
above are provided for convenience and Affirmative Determination, and Final investigation, see Appendix I of this
customs purposes only. The written Affirmative Determination of Critical notice.
description of the scope of the investigations Circumstances, in Part Scope Comments
is dispositive.
AGENCY: Enforcement and Compliance, In the Department’s Preliminary
Appendix II International Trade Administration, Scope Decision Memorandum, we set
List of Topics Discussed in the Final Department of Commerce. aside a period of time for parties to raise
Decision Memo SUMMARY: The Department of Commerce issues regarding product coverage (i.e.,
I. Summary (the Department) determines that scope) in scope case briefs or other
II. Background countervailable subsidies are being written comments on scope issues.3
III. Period of Investigation provided to producers and exporters of Certain interested parties commented on
IV. Scope Comments certain cold-drawn mechanical tubing of the scope of the investigation as it
V. Scope of the Investigation carbon and alloy steel (cold-drawn appeared in the Preliminary Scope
VI. Subsidies Valuation Information mechanical tubing) from the People’s Decision Memorandum. For a summary
VII. Benchmarks and Interest Rates of the product coverage comments and
VIII. Use of Facts Otherwise Available and
Republic of China (PRC), as provided in
section 705 of the Tariff Act of 1930 (the rebuttal responses submitted to the
Adverse Inferences
IX. Analysis of Programs Act). The period of investigation is record for this final determination, and
X. Discussion of the Issues January 1, 2016, through December 31, accompanying discussion and analysis
Comment 1: The Department’s Application 2016. For more information on the of all comments timely received, see the
of AFA for the GOI’s Failure to Provide estimated subsidy rates, see the ‘‘Final Final Scope Decision
Requested Information Determination’’ section of this notice. Memorandum.4 See the scope in
Comment 2: Whether AAP and DDB Appendix I to this notice.
DATES: Applicable December 11, 2017.
Programs are Countervailable
Comment 3: The Department’s Treatment FOR FURTHER INFORMATION CONTACT: Duty Determination, 82 FR 44562 (September 25,
of EPCGS Shanah Lee at (202) 482–6386 or Alex 2017) (Preliminary Determination).
Comment 4: The Department’s Treatment Rosen at (202) 482–7814, AD/CVD 2 See Memorandum, ‘‘Issues and Decision
of SHIS Operations, Office III, Enforcement and Memorandum for the Final Determination in the
Comment 5: Whether the Benefit for MEIS Countervailing Duty Investigation of Cold-Drawn
Compliance, International Trade Mechanical Tubing of Carbon and Alloy Steel from
is Determined at the Date of Issuance Administration, U.S. Department of the People’s Republic of China,’’ dated concurrently
Comment 6: Whether the Deduction under with, and hereby adopted by, this notice (Issues and
32–AC of the Income Tax Act is
Commerce, 1401 Constitution Avenue
Decision Memorandum).
Countervailable NW., Washington, DC 20230. 3 Seeemorandum, ‘‘Certain Cold-Drawn
Comment 7: The Department’s Background Mechanical Tubing of Carbon and Alloy Steel from
daltland on DSKBBV9HB2PROD with NOTICES
Determination Regarding the Entry Tax the Federal Republic of Germany, India, Italy, the
Exemption for the Iron and Steel The Department published the Republic of Korea, the People’s Republic of China,
Industry in Uttar Pradesh Preliminary Determination on and Switzerland: Scope Comments Decision
Memorandum for the Preliminary Determinations’’
Comment 8: The Denominator Used to September 25, 2017.1 A summary of dated November 15, 2017 (Preliminary Scope
Calculate Goodluck’s DDB Exemption Decision Memorandum).
Comment 9: The Inclusion of Tube 1 See Certain Cold-Drawn Mechanical Tubing of 4 See Memorandum, ‘‘Certain Cold-Drawn
Investments’ Non-Subject Merchandise Carbon and Alloy Steel from the People’s Republic Mechanical Tubing of Carbon and Alloy Steel from
in the Benefit Calculation for DDB of China: Preliminary Affirmative Countervailing Continued
VerDate Sep<11>2014 17:54 Dec 08, 2017 Jkt 244001 PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 E:\FR\FM\11DEN1.SGM 11DEN1](https://thefederalregister.org/doc/82_FR_58411/page/1.svg)
![58178 Federal Register / Vol. 82, No. 236 / Monday, December 11, 2017 / Notices
The products subject to the investigation Comment 13: Minor Corrections to the rolled steel of Vietnamese origin are
are currently classified in the Harmonized Department’s Preliminary Benefit circumventing the CRS Orders.2 In their
Tariff Schedule of the United States (HTSUS) Calculation submissions, domestic parties requested
under item numbers: 7304.31.3000, XIII. Recommendation
7304.31.6050, 7304.51.1000, 7304.51.5005,
the Department initiate anti-
[FR Doc. 2017–26608 Filed 12–8–17; 8:45 am]
7304.51.5060, 7306.30.5015, 7306.30.5020, circumvention inquiries pursuant to
BILLING CODE 3510–DS–P
7306.50.5030. Subject merchandise may also section 781(b) of the Tariff Act of 1930,
enter under numbers 7306.30.1000 and as amended (the Act), and 19 CFR
7306.50.1000. The HTSUS subheadings 351.225(h), to determine whether the
above are provided for convenience and DEPARTMENT OF COMMERCE
importation of the PRC-origin HRS
customs purposes only. The written substrate input for finishing into CRS in
description of the scope of the investigation International Trade Administration
is dispositive.
Vietnam and subsequent sale of that
[A–570–029, C–570–030]
CRS to the United States constitutes
Appendix II Certain Cold-Rolled Steel Flat Products circumvention of the CRS Orders.
List of Topics Discussed in the Issues and From the People’s Republic of China: On November 17, 2016, the
Decision Memorandum Affirmative Preliminary Determination Department published the notice of
I. Summary of Anti-Circumvention Inquiries on the initiation of anti-circumvention
II. Background Antidumping Duty and Countervailing inquiries on imports of CRS from
III. Period of Investigation Duty Orders Vietnam.3 On August 29, 2017, the
IV. Final Determination of Critical
AGENCY: Enforcement and Compliance, Department postponed the final
Circumstances, in Part
A. Background International Trade Administration, determination of these inquiries and the
B. Legal Framework Department of Commerce. revised final deadlines are now
C. Critical Circumstances Allegation SUMMARY: The Department of Commerce February 15, 2018.4 For a complete
D. Analysis (the Department) preliminarily description of the events that followed
V. Scope Comments determines that imports of certain cold- the initiation of these inquiries, see the
VI. Scope of the Investigation Preliminary Decision Memorandum.5 A
VII. Application of the Countervailing Duty
rolled steel flat products (CRS),
Law to Imports From the PRC produced in the Socialist Republic of list of topics included in the
VIII. Subsidies Valuation Vietnam (Vietnam) using carbon hot- Preliminary Decision Memorandum is
A. Allocation Period rolled steel (HRS) manufactured in the included as Appendix I to this notice.
B. Attribution of Subsidies People’s Republic of China (PRC), are The Preliminary Decision Memorandum
C. Denominators circumventing the antidumping duty is a public document and is on file
IX. Benchmarks and Discount Rates (AD) and countervailing duty (CVD) electronically via Enforcement and
X. Use of Facts Otherwise Available and orders on CRS from the PRC. Compliance’s Antidumping and
Adverse Inferences
XI. Analysis of Programs DATES: Applicable December 11, 2017. Countervailing Duty Centralized
A. Programs Determined To Be FOR FURTHER INFORMATION CONTACT: Electronic Service System (ACCESS).
Countervailable Victoria Cho, Tyler Weinhold, or John ACCESS is available to registered users
B. Programs Determined Not To Be Used Drury, AD/CVD Operations, Office VI, at https://access.trade.gov, and to all
During the POI by Hongyi and Huacheng Enforcement and Compliance, parties in the Central Records Unit,
I&E International Trade Administration, room B8024 of the main Department of
XII. Analysis of Comments
Comment 1: The Countervailability of the
U.S. Department of Commerce, 1401 Commerce building. In addition, a
Government Provision of Coking Coal Constitution Avenue NW., Washington, complete version of the Preliminary
and Steam Coal for Less Than Adequate DC 20230; telephone: (202) 482–5075; Decision Memorandum can be accessed
Remuneration (LTAR) (202) 482–1121; or (202) 482–0195, directly at http://enforcement.trade.gov/
Comment 2: The Provision of Electricity for respectively. frn/. The signed and the electronic
LTAR versions of the Preliminary Decision
SUPPLEMENTARY INFORMATION:
Comment 3: The Government Provision of
Inputs for LTAR
Memorandum are identical in content.
Background
a. Input Producers are ‘‘Authorities’’
b. Inputs are Specific Certain domestic interested parties, 2 See Certain Cold-Rolled Steel Flat Products from
c. Input Industries are Distorted (Tier-One Steel Dynamics, Inc. (SDI), California Japan and the People’s Republic of China:
Benchmark for Inputs for LTAR) Steel Industries (CSI), ArcelorMittal Antidumping Duty Orders, 81 FR 45955 (July 14,
2016) (CRS AD Order), and Certain Cold-Rolled
Comment 4: Benchmarks for Steel Rounds/ USA LLC (AMUSA), Nucor Corporation Steel Flat Products from the People’s Republic of
Billets, Hot-Rolled and Cold-Rolled (Nucor), United States Steel China: Countervailing Duty Order, 81 FR 45960
Coiled Steel Corporation, and AK Steel Corporation (July 14, 2016) (CRS CVD Order) (collectively, CRS
Comment 5: The Appropriate Benchmark (collectively, the domestic parties), filed Orders).
for Ocean Freight 3 See Certain Cold-Rolled Steel Flat Products from
Comment 6: External Benchmark Interest
submissions 1 alleging that imports of
the People’s Republic of China: Initiation of Anti-
Rates for Loans cold-rolled steel from Vietnam made Circumvention Inquiries on the Antidumping Duty
Comment 7: GOC Policy Loans During the from HRS sourced from the PRC and and Countervailing Duty Orders, 81 FR 81057
POI exported to the United States as cold- (November 17, 2016) (Initiation Notice).
4 See Letter, ‘‘Certain Cold-Rolled Steel Flat
Comment 8: Huacheng I&E’s Bank
Acceptance Bills 1 See Domestic Parties’ Letter, ‘‘Certain Cold- Products (CRS) from the People’s Republic of China
daltland on DSKBBV9HB2PROD with NOTICES
Comment 9: The Export Buyer’s Credit Rolled Steel Flat Products from China: Request for (PRC): Extension of Anti-Circumvention Final
Circumvention Ruling,’’ dated September 22, 2016 Rulings,’’ August 29, 2017.
Program 5 See Memorandum, ‘‘Decision Memorandum for
Comment 10: Income Tax Deductions for (Circumvention Ruling Request September 22,
2017), and Petitioners’ Letter, ‘‘Certain Cold-Rolled the Preliminary Determinations in the Anti-
R&D Expenses Steel Flat Products from the People’s Republic of Circumvention Inquiries of Certain Cold-Rolled
Comment 11: The GOC’s Claims Regarding China—Request for Circumvention Ruling Pursuant Steel Products from the People’s Republic of
Verification to Section 781(b) of the Tariff Act of 1930,’’ dated China,’’ dated concurrently with, and hereby
Comment 12: The Department’s September 27, 2016 (Circumvention Ruling Request adopted by, this notice (Preliminary Decision
Investigation of Uninitiated Programs September 27, 2017). Memorandum).
VerDate Sep<11>2014 17:54 Dec 08, 2017 Jkt 244001 PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 E:\FR\FM\11DEN1.SGM 11DEN1](https://thefederalregister.org/doc/82_FR_58411/page/4.svg)
Document Created: 2017-12-09 01:49:33
Document Modified: 2017-12-09 01:49:33
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Dates | Applicable December 11, 2017. | |
| Contact | Shanah Lee at (202) 482-6386 or Alex Rosen at (202) 482-7814, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230. | |
| FR Citation | 82 FR 58175 |
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