82_FR_9739 82 FR 9714 - Countervailing Duty Investigation of Stainless Steel Sheet and Strip From the People's Republic of China: Final Affirmative Determination, and Final Affirmative Critical Circumstances Determination, in Part

82 FR 9714 - Countervailing Duty Investigation of Stainless Steel Sheet and Strip From the People's Republic of China: Final Affirmative Determination, and Final Affirmative Critical Circumstances Determination, in Part

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 25 (February 8, 2017)

Page Range9714-9716
FR Document2017-02577

The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of stainless steel sheet and strip (stainless sheet and strip) from the People's Republic of China (PRC) as provided in section 705 of the Tariff Act of 1930, as amended (the Act). For information on the estimated subsidy rates, see the ``Final Determination'' section of this notice. The period of investigation is January 1, 2015, through December 31, 2015.

Federal Register, Volume 82 Issue 25 (Wednesday, February 8, 2017)
[Federal Register Volume 82, Number 25 (Wednesday, February 8, 2017)]
[Notices]
[Pages 9714-9716]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-02577]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-043]


Countervailing Duty Investigation of Stainless Steel Sheet and 
Strip From the People's Republic of China: Final Affirmative 
Determination, and Final Affirmative Critical Circumstances 
Determination, 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 stainless steel sheet and strip (stainless sheet and strip) from the 
People's Republic of China (PRC) as provided in section 705 of the 
Tariff Act of 1930, as amended (the Act). For information on the 
estimated subsidy rates, see the ``Final Determination'' section of 
this notice. The period of investigation is January 1, 2015, through 
December 31, 2015.

DATES: Effective February 8, 2017.

FOR FURTHER INFORMATION CONTACT: Spencer Toubia or David Lindgren, AD/
CVD Operations, Office VII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone (202) 482-0123 or (202) 
482-3870, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published the Preliminary Determination on July 18, 
2016.\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 Final Decision Memorandum.\2\ The Final 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 Final 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Final Decision Memorandum and 
the electronic version are identical in content.
---------------------------------------------------------------------------

    \1\ See Countervailing Duty Investigation of Stainless Steel 
Sheet and Strip from the People's Republic of China: Preliminary 
Affirmative Determination and Alignment of Final Determination with 
Final Antidumping Duty Determination, 81 FR 46643 (July 18, 2016) 
(Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Stainless Steel Sheet and Strip from the People's Republic of 
China,'' (Final Decision Memorandum), dated concurrently with this 
determination and hereby adopted by this notice.
---------------------------------------------------------------------------

Period of Investigation

    The period of investigation (POI) for which we are measuring 
subsidies is January 1, 2015, through December 31, 2015.

Scope Comments

    In accordance with the Preliminary Scope Determination, the 
Department set aside a period of time for parties to address scope 
issues in case briefs or other written comments on scope issues.\3\ No 
interested parties submitted scope comments in case or rebuttal briefs; 
therefore, the scope of this investigation remains unchanged for this 
final determination.
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Stainless Steel Sheet and Strip from the 
People's Republic of China: Preliminary Scope Memorandum for the 
Antidumping and Countervailing Duty Investigations,'' September 9, 
2016.
---------------------------------------------------------------------------

Scope of the Investigation

    The product covered by this investigation is stainless sheet and 
strip from the PRC. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix II 
of this notice.

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 Final Decision Memorandum. A list of the issues that 
parties raised, and to which we responded in the Final

[[Page 9715]]

Decision Memorandum, is attached to this notice at Appendix I.

Use of Adverse Facts Available

    The Department, in making these findings, relied, in part, on facts 
available, and because one or more respondents failed to cooperate by 
not acting to the best of their ability, we made adverse inferences.\4\ 
For the final determination, we are basing the countervailing duty 
(CVD) rates for Ningbo Baoxin Stainless Steel Co., Ltd. (Ningbo Baoxin) 
and Daming International Import Export Co Ltd (Daming) on facts 
otherwise available, pursuant to sections 776(a)(2)(A) and (C) of the 
Tariff Act of 1930, as amended (the Act). Further, because Ningbo 
Baoxin and Daming did not cooperate to the best of their ability in 
this investigation, we also determine that an adverse inference is 
warranted, pursuant to section 776(b) of the Act. For further 
information, see the Preliminary Determination as well as the section 
``Use of Facts Otherwise Available and Adverse Inferences,'' in the 
Final Decision Memorandum.
---------------------------------------------------------------------------

    \4\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

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 
Final Decision Memorandum and the Final Analysis Memorandum.\5\
---------------------------------------------------------------------------

    \5\ See Final Decision Memorandum; see also Memorandum, ``Final 
Determination Analysis for Shanxi Taigang Stainless Steel Co. 
Ltd.,'' dated concurrently with this determination and hereby 
adopted by this notice.
---------------------------------------------------------------------------

Final Affirmative Determination of Critical Circumstances, in Part

    Prior to the Preliminary Determination, the Department found that 
critical circumstances exist with respect to imports of stainless sheet 
and strip from the PRC for Shanxi Taigang Stainless Steel Co. Ltd. 
(Taigang), Ningbo Baoxin, Daming, and ``all other'' companies.\6\ Upon 
further analysis of the data and comments submitted by interested 
parties following the Preliminary Determination, we are modifying our 
findings for the Final Determination.\7\ Specifically, in accordance 
with section 705(a)(2) of the Act, we find that critical circumstances 
exist with respect to imports from Ningbo Baoxin and Daming, but do not 
exist for Taigang and ``all other'' producers or exporters.\8\
---------------------------------------------------------------------------

    \6\ See Countervailing Duty Investigation of Stainless Steel 
Sheet and Strip from the People's Republic of China: Preliminary 
Determination of Critical Circumstances, 81 FR 41519 (June 27, 
2016).
    \7\ For a full description of the methodology and results of our 
analysis, see the Final Decision Memorandum.
    \8\ See Final Decision Memorandum.
---------------------------------------------------------------------------

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established rates for Taigang (the only individually investigated 
exporter/producer of the subject merchandise that participated in this 
investigation), and for Ningbo Baoxin and Daming (which were assigned a 
rate based on adverse facts available (AFA)).
    In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A)(i) 
of the Act, for companies not individually investigated, we apply an 
``all-others'' rate, which is normally calculated by weight averaging 
the subsidy rates of the individual companies selected for individual 
examination with those companies' export sales of the subject 
merchandise to the United States, excluding any zero and de minimis 
rates calculated for the exporters and producers individually 
investigated, and any rates determined entirely under section 776 of 
the Act. Consistent with section 705(c)(5)(A)(i) of the Act, we, 
therefore, have excluded the AFA rate assigned to Ningbo Baoxin and 
Daming from the determination of the all-others rate.
    Because the only individually calculated rate that is not zero, de 
minimis, or based entirely on facts otherwise available is the rate 
calculated for Taigang, in accordance with section 705(c)(5)(A)(i) of 
the Act, the rate calculated for Taigang is assigned as the ``all-
others'' rate. The estimated countervailable subsidy rates are 
summarized in the table below.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                                (%)
------------------------------------------------------------------------
Shanxi Taigang Stainless Steel Co. Ltd..................           75.60
Ningbo Baoxin Stainless Steel Co., Ltd., Baosteel                 190.71
 Stainless Steel Co Ltd, Baoshan Iron & Steel Co, Ltd.,
 Baosteel Desheng Stainless Steel Co., Ltd, Baosteel
 Co., Ltd., Bayi Iron & Steel Co., Ltd., Ningbo Iron &
 Steel Co., Ltd., Shaoguan Iron & Steel Co., Ltd.,
 Guangdong Shaoguan Iron & Steel Co., Ltd., and
 Zhanjiang Iron & Steel Co., Ltd........................
Daming International Import Export Co Ltd. and Tianjin            190.71
 Taigang Daming Metal Product Co., Ltd..................
All-Others..............................................           75.60
------------------------------------------------------------------------

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B), (d)(2), and (e)(2) of the Act, we instructed 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of merchandise under consideration from the PRC that were 
entered or withdrawn from warehouse, for consumption, on or after April 
19, 2016. In accordance with section 703(d) of the Act, we issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, for consumption, on or after November 14, 2016, but to 
continue the suspension of liquidation of all entries from April 19, 
2016, through November 13, 2016.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
subject merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled. Further, because we find 
critical circumstances do not exist for Taigang and ``all other'' 
producers or exporters, we will terminate the retroactive suspension of 
liquidation ordered at the Preliminary Determination and release any 
cash deposits that were required during that period, consistent with 
section 705(c)(3) of the Act.

[[Page 9716]]

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related 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.

Notification Regarding Administrative Protective Orders

    In the event the ITC issues a final negative injury determination, 
this notice serves 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 or 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 subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: February 1, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Final Determination of Critical Circumstances, in Part
IV. Scope Comments
V. Scope of the Investigation
VI. Application of the Countervailing Duty Law to Imports from the 
PRC
VII. Subsidies Valuation Information
VIII. Benchmarks and Discount Rates
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Analysis of Programs
XI. Analysis of Comments
    Comment 1: Subsidies Received by Taigang Xinlei
    Comment 2: Previously Unreported Government Grants Received by 
the Taigang Companies Discovered at Verification
    Comment 3: TISCO's Exemption from Distributing Dividends to the 
State
    Comment 4: Equity Investments in Taigang Wanbang
    Comment 5: The Department's Preliminary Calculations Relating to 
the Provision of Land for LTAR Significantly Understate the 
Countervailable Benefit to TISCO
    Comment 6: The Department's Preliminary Calculations Contain 
Errors in Certain Formulas for Calculating the Benefit from the 
Provision of Electricity for LTAR
    Comment 7: The Department Must Use Taigang's Consolidated Sales 
in Calculating Any Subsidy Rate with Respect to Subsidies Received 
Directly by Taigang
    Comment 8: The Correct Benchmark for Nickel Pig Iron
    Comment 9: Provision of Inputs and Financing from Taigang's 
Cross-Owned Affiliates
    Comment 10: Countervailability of Certain Chromium Purchases
    Comment 11: Use of AFA in Finding Deed Tax Exemption Used by 
Taigang/Untimely Submission
XII. Recommendation

Appendix II--Scope of the Investigation

    The merchandise covered by this investigation is stainless steel 
sheet and strip, whether in coils or straight lengths. Stainless 
steel is an alloy steel containing, by weight, 1.2 percent or less 
of carbon and 10.5 percent or more of chromium, with or without 
other elements. The subject sheet and strip is a flat-rolled product 
with a width that is greater than 9.5 mm and with a thickness of 
0.3048 mm and greater but less than 4.75 mm, and that is annealed or 
otherwise heat treated, and pickled or otherwise descaled. The 
subject sheet and strip may also be further processed (e.g., cold-
rolled, annealed, tempered, polished, aluminized, coated, painted, 
varnished, trimmed, cut, punched, or slit, etc.) provided that it 
maintains the specific dimensions of sheet and strip set forth above 
following such processing. The products described include products 
regardless of shape, and include products of either rectangular or 
non-rectangular cross-section where such 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: (1) Where the nominal and actual measurements vary, a product 
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.
    All products that meet the written physical description, and in 
which the chemistry quantities do not exceed any one of the noted 
element levels listed above, are within the scope of this 
investigation unless specifically excluded.
    Subject merchandise includes stainless steel sheet and strip 
that has been further processed in a third country, including but 
not limited to cold-rolling, annealing, tempering, polishing, 
aluminizing, coating, painting, varnishing, trimming, cutting, 
punching, 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 stainless steel 
sheet and strip.
    Excluded from the scope of this investigation are the following: 
(1) Sheet and strip that is not annealed or otherwise heat treated 
and not pickled or otherwise descaled; (2) plate (i.e., flat-rolled 
stainless steel products of a thickness of 4.75 mm or more); and (3) 
flat wire (i.e., cold-rolled sections, with a mill edge, rectangular 
in shape, of a width of not more than 9.5 mm).
    The products under investigation are currently classifiable 
under Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings 7219.13.0031, 7219.13.0051, 7219.13.0071, 7219.13.0081, 
7219.14.0030, 7219.14.0065, 7219.14.0090, 7219.23.0030, 
7219.23.0060, 7219.24.0030, 7219.24.0060, 7219.32.0005, 
7219.32.0020, 7219.32.0025, 7219.32.0035, 7219.32.0036, 
7219.32.0038, 7219.32.0042, 7219.32.0044, 7219.32.0045, 
7219.32.0060, 7219.33.0005, 7219.33.0020, 7219.33.0025, 
7219.33.0035, 7219.33.0036, 7219.33.0038, 7219.33.0042, 
7219.33.0044, 7219.33.0045, 7219.33.0070, 7219.33.0080, 
7219.34.0005, 7219.34.0020, 7219.34.0025, 7219.34.0030, 
7219.34.0035, 7219.34.0050, 7219.35.0005, 7219.35.0015, 
7219.35.0030, 7219.35.0035, 7219.35.0050, 7219.90.0010, 
7219.90.0020, 7219.90.0025, 7219.90.0060, 7219.90.0080, 
7220.12.1000, 7220.12.5000, 7220.20.1010, 7220.20.1015, 
7220.20.1060, 7220.20.1080, 7220.20.6005, 7220.20.6010, 
7220.20.6015, 7220.20.6060, 7220.20.6080, 7220.20.7005, 
7220.20.7010, 7220.20.7015, 7220.20.7060, 7220.20.7080, 
7220.90.0010, 7220.90.0015, 7220.90.0060, and 7220.90.0080. Although 
the HTSUS subheadings are provided for convenience and customs 
purposes, the written description of the scope of this proceeding is 
dispositive.

[FR Doc. 2017-02577 Filed 2-7-17; 8:45 am]
 BILLING CODE 3510-DS-P



                                                    9714                       Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices

                                                    burring or shot blasting. Any one of these              4. Scope of the Investigation                         discussion of the issues raised by parties
                                                    post-forging processes suffices to render the           5. Scope Comments                                     for this final determination, may be
                                                    forging into a finished carbon steel flange for         6. Postponement of Final Determination and            found in the Final Decision
                                                    purposes of this investigation. However,                     Extension of Provisional Measures                Memorandum.2 The Final Decision
                                                    mere heat treatment of a carbon steel flange            7. Affiliations and Collapsing of Affiliates
                                                    forging (without any other further processing           8. Application of Facts Available and Use of
                                                                                                                                                                  Memorandum is a public document and
                                                    after forging) does not render the forging into              Adverse Inference                                is on file electronically via Enforcement
                                                    a finished carbon steel flange for purposes of          9. Calculation of All-Others Rate                     and Compliance’s Antidumping and
                                                    this investigation.                                     10. Verification                                      Countervailing Duty Centralized
                                                       While these finished carbon steel flanges            11. Conclusion                                        Electronic Service System (ACCESS).
                                                    are generally manufactured to specification                                                                   ACCESS is available to registered users
                                                                                                            [FR Doc. 2017–02605 Filed 2–7–17; 8:45 am]
                                                    ASME B16.5 or ASME B16.47 series A or                                                                         at http://access.trade.gov, and is
                                                    series B, the scope is not limited to flanges           BILLING CODE 3510–DS–P
                                                                                                                                                                  available to all parties in the Central
                                                    produced under those specifications. All
                                                    types of finished carbon steel flanges are                                                                    Records Unit, Room B8024 of the main
                                                    included in the scope regardless of pipe size           DEPARTMENT OF COMMERCE                                Department of Commerce building. In
                                                    (which may or may not be expressed in                                                                         addition, a complete version of the Final
                                                    inches of nominal pipe size), pressure class            International Trade Administration                    Decision Memorandum can be accessed
                                                    (usually, but not necessarily, expressed in                                                                   directly at http://enforcement.trade.gov/
                                                                                                            [C–570–043]
                                                    pounds of pressure, e.g., 150, 300, 400, 600,                                                                 frn/. The signed Final Decision
                                                    900, 1500, 2500, etc.), type of face (e.g., flat                                                              Memorandum and the electronic
                                                    face, full face, raised face, etc.), configuration
                                                                                                            Countervailing Duty Investigation of
                                                                                                            Stainless Steel Sheet and Strip From                  version are identical in content.
                                                    (e.g., weld neck, slip on, socket weld, lap
                                                    joint, threaded, etc.), wall thickness (usually,        the People’s Republic of China: Final                 Period of Investigation
                                                    but not necessarily, expressed in inches),              Affirmative Determination, and Final
                                                    normalization, or whether or not heat treated.          Affirmative Critical Circumstances                      The period of investigation (POI) for
                                                    These carbon steel flanges either meet or               Determination, in Part                                which we are measuring subsidies is
                                                    exceed the requirements of the ASTM A105,                                                                     January 1, 2015, through December 31,
                                                    ASTM A694, ASTM A181, ASTM A350 and                     AGENCY:  Enforcement and Compliance,                  2015.
                                                    ASTM A707 standards (or comparable                      International Trade Administration,
                                                    foreign specifications). The scope includes             Department of Commerce.                               Scope Comments
                                                    any flanges produced to the above-referenced
                                                                                                            SUMMARY: The Department of Commerce                      In accordance with the Preliminary
                                                    ASTM standards as currently stated or as
                                                    may be amended. The term ‘‘carbon steel’’               (the Department) determines that                      Scope Determination, the Department
                                                    under this scope is steel in which:                     countervailable subsidies are being                   set aside a period of time for parties to
                                                       (a) iron predominates, by weight, over each          provided to producers and exporters of                address scope issues in case briefs or
                                                    of the other contained elements:                        stainless steel sheet and strip (stainless            other written comments on scope
                                                       (b) the carbon content is 2 percent or less,         sheet and strip) from the People’s                    issues.3 No interested parties submitted
                                                    by weight; and                                          Republic of China (PRC) as provided in                scope comments in case or rebuttal
                                                       (c) none of the elements listed below                section 705 of the Tariff Act of 1930, as
                                                    exceeds the quantity, by weight, as indicated:                                                                briefs; therefore, the scope of this
                                                       (i) 0.87 percent of aluminum;
                                                                                                            amended (the Act). For information on                 investigation remains unchanged for
                                                       (ii) 0.0105 percent of boron;                        the estimated subsidy rates, see the                  this final determination.
                                                       (iii) 10.10 percent of chromium;                     ‘‘Final Determination’’ section of this
                                                       (iv) 1.55 percent of columbium;                      notice. The period of investigation is                Scope of the Investigation
                                                       (v) 3.10 percent of copper;                          January 1, 2015, through December 31,                    The product covered by this
                                                       (vi) 0.38 percent of lead;                           2015.                                                 investigation is stainless sheet and strip
                                                       (vii) 3.04 percent of manganese;
                                                                                                            DATES: Effective February 8, 2017.                    from the PRC. For a complete
                                                       (viii) 2.05 percent of molybdenum;
                                                       (ix) 20.15 percent of nickel;                        FOR FURTHER INFORMATION CONTACT:                      description of the scope of this
                                                       (x) 1.55 percent of niobium;                         Spencer Toubia or David Lindgren, AD/                 investigation, see the ‘‘Scope of the
                                                       (xi) 0.20 percent of nitrogen;                       CVD Operations, Office VII,                           Investigation,’’ in Appendix II of this
                                                       (xii) 0.21 percent of phosphorus;                    Enforcement and Compliance,                           notice.
                                                       (xiii) 3.10 percent of silicon;                      International Trade Administration,
                                                       (xiv) 0.21 percent of sulfur;                                                                              Analysis of Subsidy Programs and
                                                                                                            U.S. Department of Commerce, 1401                     Comments Received
                                                       (xv) 1.05 percent of titanium;
                                                       (xvi) 4.06 percent of tungsten;                      Constitution Avenue NW., Washington,
                                                       (xvii) 0.53 percent of vanadium; or                  DC 20230; telephone (202) 482–0123 or                   The subsidy programs under
                                                       (xviii) 0.015 percent of zirconium.                  (202) 482–3870, respectively.                         investigation and the issues raised in
                                                       Finished carbon steel flanges are currently          SUPPLEMENTARY INFORMATION:                            the case and rebuttal briefs by parties in
                                                    classified under subheadings 7307.91.5010                                                                     this investigation are discussed in the
                                                    and 7307.91.5050 of the Harmonized Tariff               Background                                            Final Decision Memorandum. A list of
                                                    Schedule of the United States (HTSUS). They               The Department published the                        the issues that parties raised, and to
                                                    may also be entered under HTSUS                                                                               which we responded in the Final
                                                    subheadings 7307.91.5030 and 7307.91.5070.              Preliminary Determination on July 18,
                                                    The HTSUS subheadings are provided for                  2016.1 A summary of the events that
                                                                                                                                                                    2 See Memorandum, ‘‘Issues and Decision
                                                    convenience and customs purposes; the                   occurred since the Department
                                                                                                                                                                  Memorandum for the Final Determination in the
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    written description of the scope is                     published the Preliminary                             Countervailing Duty Investigation of Stainless Steel
                                                    dispositive.                                            Determination, as well as a full                      Sheet and Strip from the People’s Republic of
                                                                                                                                                                  China,’’ (Final Decision Memorandum), dated
                                                    Appendix II                                               1 See Countervailing Duty Investigation of          concurrently with this determination and hereby
                                                    List of Topics Discussed in the Preliminary             Stainless Steel Sheet and Strip from the People’s     adopted by this notice.
                                                    Decision Memorandum                                     Republic of China: Preliminary Affirmative              3 See Memorandum, ‘‘Stainless Steel Sheet and

                                                                                                            Determination and Alignment of Final                  Strip from the People’s Republic of China:
                                                    1. Summary                                              Determination with Final Antidumping Duty             Preliminary Scope Memorandum for the
                                                    2. Background                                           Determination, 81 FR 46643 (July 18, 2016)            Antidumping and Countervailing Duty
                                                    3. Period of Investigation                              (Preliminary Determination).                          Investigations,’’ September 9, 2016.



                                               VerDate Sep<11>2014   17:36 Feb 07, 2017   Jkt 241001   PO 00000   Frm 00006   Fmt 4703   Sfmt 4703   E:\FR\FM\08FEN1.SGM   08FEN1


                                                                                          Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices                                                                                                 9715

                                                    Decision Memorandum, is attached to                                         verification, we made certain changes to                                     producer of the subject merchandise
                                                    this notice at Appendix I.                                                  the respondents’ subsidy rate                                                that participated in this investigation),
                                                                                                                                calculations since the Preliminary                                           and for Ningbo Baoxin and Daming
                                                    Use of Adverse Facts Available
                                                                                                                                Determination. For a discussion of these                                     (which were assigned a rate based on
                                                       The Department, in making these                                          changes, see the Final Decision                                              adverse facts available (AFA)).
                                                    findings, relied, in part, on facts                                         Memorandum and the Final Analysis                                               In accordance with sections
                                                    available, and because one or more                                          Memorandum.5                                                                 705(c)(1)(B)(i)(I) and 705(c)(5)(A)(i) of
                                                    respondents failed to cooperate by not                                                                                                                   the Act, for companies not individually
                                                                                                                                Final Affirmative Determination of
                                                    acting to the best of their ability, we                                                                                                                  investigated, we apply an ‘‘all-others’’
                                                                                                                                Critical Circumstances, in Part
                                                    made adverse inferences.4 For the final                                                                                                                  rate, which is normally calculated by
                                                    determination, we are basing the                                               Prior to the Preliminary                                                  weight averaging the subsidy rates of the
                                                    countervailing duty (CVD) rates for                                         Determination, the Department found                                          individual companies selected for
                                                    Ningbo Baoxin Stainless Steel Co., Ltd.                                     that critical circumstances exist with                                       individual examination with those
                                                    (Ningbo Baoxin) and Daming                                                  respect to imports of stainless sheet and                                    companies’ export sales of the subject
                                                    International Import Export Co Ltd                                          strip from the PRC for Shanxi Taigang                                        merchandise to the United States,
                                                    (Daming) on facts otherwise available,                                      Stainless Steel Co. Ltd. (Taigang),                                          excluding any zero and de minimis rates
                                                    pursuant to sections 776(a)(2)(A) and (C)                                   Ningbo Baoxin, Daming, and ‘‘all other’’                                     calculated for the exporters and
                                                    of the Tariff Act of 1930, as amended                                       companies.6 Upon further analysis of                                         producers individually investigated,
                                                    (the Act). Further, because Ningbo                                          the data and comments submitted by                                           and any rates determined entirely under
                                                    Baoxin and Daming did not cooperate to                                      interested parties following the                                             section 776 of the Act. Consistent with
                                                    the best of their ability in this                                           Preliminary Determination, we are                                            section 705(c)(5)(A)(i) of the Act, we,
                                                    investigation, we also determine that an                                    modifying our findings for the Final                                         therefore, have excluded the AFA rate
                                                    adverse inference is warranted,                                             Determination.7 Specifically, in                                             assigned to Ningbo Baoxin and Daming
                                                    pursuant to section 776(b) of the Act.                                      accordance with section 705(a)(2) of the                                     from the determination of the all-others
                                                    For further information, see the                                            Act, we find that critical circumstances                                     rate.
                                                    Preliminary Determination as well as                                        exist with respect to imports from                                              Because the only individually
                                                    the section ‘‘Use of Facts Otherwise                                        Ningbo Baoxin and Daming, but do not                                         calculated rate that is not zero, de
                                                    Available and Adverse Inferences,’’ in                                      exist for Taigang and ‘‘all other’’                                          minimis, or based entirely on facts
                                                    the Final Decision Memorandum.                                              producers or exporters.8                                                     otherwise available is the rate calculated
                                                                                                                                                                                                             for Taigang, in accordance with section
                                                    Changes Since the Preliminary                                               Final Determination
                                                                                                                                                                                                             705(c)(5)(A)(i) of the Act, the rate
                                                    Determination
                                                                                                                                  In accordance with section                                                 calculated for Taigang is assigned as the
                                                      Based on our review and analysis of                                       705(c)(1)(B)(i)(I) of the Act, we                                            ‘‘all-others’’ rate. The estimated
                                                    the comments received from parties,                                         established rates for Taigang (the only                                      countervailable subsidy rates are
                                                    and minor corrections accepted at                                           individually investigated exporter/                                          summarized in the table below.

                                                                                                                                                                                                                                                               Subsidy rate
                                                                                                                                                Company                                                                                                           (%)

                                                    Shanxi Taigang Stainless Steel Co. Ltd ..............................................................................................................................................                             75.60
                                                    Ningbo Baoxin Stainless Steel Co., Ltd., Baosteel Stainless Steel Co Ltd, Baoshan Iron & Steel Co, Ltd., Baosteel Desheng
                                                       Stainless Steel Co., Ltd, Baosteel Co., Ltd., Bayi Iron & Steel Co., Ltd., Ningbo Iron & Steel Co., Ltd., Shaoguan Iron & Steel
                                                       Co., Ltd., Guangdong Shaoguan Iron & Steel Co., Ltd., and Zhanjiang Iron & Steel Co., Ltd ......................................................                                                              190.71
                                                    Daming International Import Export Co Ltd. and Tianjin Taigang Daming Metal Product Co., Ltd ...................................................                                                                 190.71
                                                    All-Others .............................................................................................................................................................................................          75.60



                                                    Continuation of Suspension of                                               merchandise entered, or withdrawn                                            material injury, or threat of material
                                                    Liquidation                                                                 from warehouse, for consumption, on or                                       injury, does not exist, this proceeding
                                                                                                                                after November 14, 2016, but to                                              will be terminated and all estimated
                                                       As a result of our Preliminary                                           continue the suspension of liquidation                                       duties deposited or securities posted as
                                                    Determination, and pursuant to sections                                     of all entries from April 19, 2016,                                          a result of the suspension of liquidation
                                                    703(d)(1)(B), (d)(2), and (e)(2) of the Act,                                through November 13, 2016.                                                   will be refunded or canceled. Further,
                                                    we instructed U.S. Customs and Border                                          If the U.S. International Trade                                           because we find critical circumstances
                                                    Protection (CBP) to suspend liquidation                                     Commission (the ITC) issues a final                                          do not exist for Taigang and ‘‘all other’’
                                                    of all entries of merchandise under                                         affirmative injury determination, we                                         producers or exporters, we will
                                                    consideration from the PRC that were                                        will issue a CVD order and will reinstate                                    terminate the retroactive suspension of
                                                    entered or withdrawn from warehouse,                                        the suspension of liquidation under                                          liquidation ordered at the Preliminary
                                                    for consumption, on or after April 19,                                      section 706(a) of the Act and will                                           Determination and release any cash
                                                    2016. In accordance with section 703(d)                                     require a cash deposit of estimated
                                                                                                                                                                                                             deposits that were required during that
                                                    of the Act, we issued instructions to                                       CVDs for such entries of subject
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                                                                                                                                                                             period, consistent with section 705(c)(3)
                                                    CBP to discontinue the suspension of                                        merchandise in the amounts indicated
                                                                                                                                                                                                             of the Act.
                                                    liquidation for CVD purposes for subject                                    above. If the ITC determines that
                                                      4 Seesections 776(a) and (b) of the Act.                                    6 See Countervailing Duty Investigation of                                   7 For a full description of the methodology and
                                                      5 SeeFinal Decision Memorandum; see also                                  Stainless Steel Sheet and Strip from the People’s                            results of our analysis, see the Final Decision
                                                    Memorandum, ‘‘Final Determination Analysis for                              Republic of China: Preliminary Determination of                              Memorandum.
                                                    Shanxi Taigang Stainless Steel Co. Ltd.,’’ dated                            Critical Circumstances, 81 FR 41519 (June 27,                                  8 See Final Decision Memorandum.
                                                    concurrently with this determination and hereby                             2016).
                                                    adopted by this notice.



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                                                    9716                       Federal Register / Vol. 82, No. 25 / Wednesday, February 8, 2017 / Notices

                                                    ITC Notification                                          Comment 6: The Department’s Preliminary             processing that would not otherwise remove
                                                                                                                 Calculations Contain Errors in Certain           the merchandise from the scope of the
                                                      In accordance with section 705(d) of                       Formulas for Calculating the Benefit             investigation if performed in the country of
                                                    the Act, we will notify the ITC of our                       from the Provision of Electricity for            manufacture of the stainless steel sheet and
                                                    determination. In addition, we are                           LTAR                                             strip.
                                                    making available to the ITC all non-                      Comment 7: The Department Must Use                     Excluded from the scope of this
                                                    privileged and non-proprietary                               Taigang’s Consolidated Sales in                  investigation are the following: (1) Sheet and
                                                    information related to this investigation.                   Calculating Any Subsidy Rate with                strip that is not annealed or otherwise heat
                                                    We will allow the ITC access to all                          Respect to Subsidies Received Directly           treated and not pickled or otherwise
                                                                                                                 by Taigang                                       descaled; (2) plate (i.e., flat-rolled stainless
                                                    privileged and business proprietary
                                                                                                              Comment 8: The Correct Benchmark for                steel products of a thickness of 4.75 mm or
                                                    information in our files, provided the                       Nickel Pig Iron                                  more); and (3) flat wire (i.e., cold-rolled
                                                    ITC confirms that it will not disclose                    Comment 9: Provision of Inputs and                  sections, with a mill edge, rectangular in
                                                    such information, either publicly or                         Financing from Taigang’s Cross-Owned             shape, of a width of not more than 9.5 mm).
                                                    under an administrative protective order                     Affiliates                                          The products under investigation are
                                                    (APO), without the written consent of                     Comment 10: Countervailability of Certain           currently classifiable under Harmonized
                                                    the Assistant Secretary for Enforcement                      Chromium Purchases                               Tariff Schedule of the United States (HTSUS)
                                                    and Compliance.                                           Comment 11: Use of AFA in Finding Deed              subheadings 7219.13.0031, 7219.13.0051,
                                                                                                                 Tax Exemption Used by Taigang/                   7219.13.0071, 7219.13.0081, 7219.14.0030,
                                                    Notification Regarding Administrative                        Untimely Submission                              7219.14.0065, 7219.14.0090, 7219.23.0030,
                                                    Protective Orders                                       XII. Recommendation                                   7219.23.0060, 7219.24.0030, 7219.24.0060,
                                                                                                                                                                  7219.32.0005, 7219.32.0020, 7219.32.0025,
                                                       In the event the ITC issues a final                  Appendix II—Scope of the Investigation                7219.32.0035, 7219.32.0036, 7219.32.0038,
                                                    negative injury determination, this                                                                           7219.32.0042, 7219.32.0044, 7219.32.0045,
                                                                                                               The merchandise covered by this
                                                    notice serves as the only reminder to                   investigation is stainless steel sheet and strip,     7219.32.0060, 7219.33.0005, 7219.33.0020,
                                                    parties subject to an APO of their                      whether in coils or straight lengths. Stainless       7219.33.0025, 7219.33.0035, 7219.33.0036,
                                                    responsibility concerning the                           steel is an alloy steel containing, by weight,        7219.33.0038, 7219.33.0042, 7219.33.0044,
                                                    destruction of proprietary information                  1.2 percent or less of carbon and 10.5 percent        7219.33.0045, 7219.33.0070, 7219.33.0080,
                                                    disclosed under APO in accordance                       or more of chromium, with or without other            7219.34.0005, 7219.34.0020, 7219.34.0025,
                                                    with 19 CFR 351.305(a)(3). Timely                       elements. The subject sheet and strip is a flat-      7219.34.0030, 7219.34.0035, 7219.34.0050,
                                                                                                            rolled product with a width that is greater           7219.35.0005, 7219.35.0015, 7219.35.0030,
                                                    written notification of the return or                                                                         7219.35.0035, 7219.35.0050, 7219.90.0010,
                                                                                                            than 9.5 mm and with a thickness of 0.3048
                                                    destruction of APO materials, or                                                                              7219.90.0020, 7219.90.0025, 7219.90.0060,
                                                                                                            mm and greater but less than 4.75 mm, and
                                                    conversion to judicial protective order,                that is annealed or otherwise heat treated,           7219.90.0080, 7220.12.1000, 7220.12.5000,
                                                    is hereby requested. Failure to comply                  and pickled or otherwise descaled. The                7220.20.1010, 7220.20.1015, 7220.20.1060,
                                                    with the regulations and terms of an                    subject sheet and strip may also be further           7220.20.1080, 7220.20.6005, 7220.20.6010,
                                                    APO is a violation subject to sanction.                 processed (e.g., cold-rolled, annealed,               7220.20.6015, 7220.20.6060, 7220.20.6080,
                                                       This determination is issued and                     tempered, polished, aluminized, coated,               7220.20.7005, 7220.20.7010, 7220.20.7015,
                                                    published pursuant to sections 705(d)                   painted, varnished, trimmed, cut, punched,            7220.20.7060, 7220.20.7080, 7220.90.0010,
                                                    and 777(i) of the Act.                                  or slit, etc.) provided that it maintains the         7220.90.0015, 7220.90.0060, and
                                                                                                            specific dimensions of sheet and strip set            7220.90.0080. Although the HTSUS
                                                      Dated: February 1, 2017.                              forth above following such processing. The            subheadings are provided for convenience
                                                    Ronald K. Lorentzen,                                    products described include products                   and customs purposes, the written
                                                    Acting Assistant Secretary for Enforcement              regardless of shape, and include products of          description of the scope of this proceeding is
                                                    and Compliance.                                         either rectangular or non-rectangular cross-          dispositive.
                                                                                                            section where such cross-section is achieved          [FR Doc. 2017–02577 Filed 2–7–17; 8:45 am]
                                                    Appendix I—List of Topics Discussed in                  subsequent to the rolling process, i.e.,
                                                    the Final Decision Memorandum                                                                                 BILLING CODE 3510–DS–P
                                                                                                            products which have been ‘‘worked after
                                                    I. Summary                                              rolling’’ (e.g., products which have been
                                                    II. Background                                          beveled or rounded at the edges).
                                                                                                               For purposes of the width and thickness            DEPARTMENT OF COMMERCE
                                                    III. Final Determination of Critical
                                                          Circumstances, in Part                            requirements referenced above: (1) Where the
                                                                                                            nominal and actual measurements vary, a               International Trade Administration
                                                    IV. Scope Comments
                                                    V. Scope of the Investigation                           product is within the scope if application of         [A–570–042]
                                                    VI. Application of the Countervailing Duty              either the nominal or actual measurement
                                                          Law to Imports from the PRC                       would place it within the scope based on the          Antidumping Duty Investigation of
                                                    VII. Subsidies Valuation Information                    definitions set forth above; and (2) where the        Stainless Steel Sheet and Strip From
                                                    VIII. Benchmarks and Discount Rates                     width and thickness vary for a specific
                                                                                                                                                                  the People’s Republic of China: Final
                                                    IX. Use of Facts Otherwise Available and                product (e.g., the thickness of certain
                                                                                                            products with non-rectangular cross-section,          Determination of Sales at Less Than
                                                          Adverse Inferences
                                                    X. Analysis of Programs                                 the width of certain products with non-               Fair Value and Final Affirmative
                                                    XI. Analysis of Comments                                rectangular shape, etc.), the measurement at          Determination of Critical
                                                       Comment 1: Subsidies Received by Taigang             its greatest width or thickness applies.              Circumstances
                                                          Xinlei                                               All products that meet the written physical
                                                       Comment 2: Previously Unreported                     description, and in which the chemistry               AGENCY:  Enforcement and Compliance,
                                                          Government Grants Received by the                 quantities do not exceed any one of the noted         International Trade Administration,
                                                          Taigang Companies Discovered at                   element levels listed above, are within the           Department of Commerce.
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                          Verification                                      scope of this investigation unless specifically       DATES: Effective February 8, 2017.
                                                       Comment 3: TISCO’s Exemption from                    excluded.                                             SUMMARY: The Department of Commerce
                                                          Distributing Dividends to the State                  Subject merchandise includes stainless
                                                                                                                                                                  (the Department) determines that
                                                       Comment 4: Equity Investments in Taigang             steel sheet and strip that has been further
                                                          Wanbang                                           processed in a third country, including but           imports of stainless steel sheet and strip
                                                       Comment 5: The Department’s Preliminary              not limited to cold-rolling, annealing,               (stainless sheet and strip) from the
                                                          Calculations Relating to the Provision of         tempering, polishing, aluminizing, coating,           People’s Republic of China (PRC) is
                                                          Land for LTAR Significantly Understate            painting, varnishing, trimming, cutting,              being, or is likely to be, sold in the
                                                          the Countervailable Benefit to TISCO              punching, and/or slitting, or any other               United States at less than fair value


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Document Created: 2017-02-08 02:59:17
Document Modified: 2017-02-08 02:59:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesEffective February 8, 2017.
ContactSpencer Toubia or David Lindgren, AD/ CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-0123 or (202) 482-3870, respectively.
FR Citation82 FR 9714 

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