[Federal Register Volume 79, Number 198 (Tuesday, October 14, 2014)]
[Notices]
[Pages 61614-61616]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24368]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-851]


Non-Oriented Electrical Steel From Taiwan: Final Determination of 
Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (``Department'') determines that 
non-oriented electrical steel (``NOES'') from Taiwan is being, or is 
likely to be, sold in the United States at less than fair value 
(``LTFV''), as provided in section 735 of the Tariff Act of 1930, as 
amended (the ``Act''). The final weighted-average dumping margins of 
sales at LTFV are listed in the ``Final Determination'' section of this 
notice.

DATES: Effective Date: October 14, 2014.

FOR FURTHER INFORMATION CONTACT: Krisha Hill or Karine Gziryan, AD/CVD 
Operations, Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4037 or (202) 482-4081, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The Department published its Preliminary Determination on May 22, 
2014.\1\ We invited parties to comment on our Preliminary 
Determination. On August 11, 2014, we received case briefs from China 
Steel Corporation (``CSC''), and AK Steel Corporation 
(``Petitioner'').\2\ On August 18, 2014, CSC submitted a rebuttal 
brief.\3\ Based on an analysis of the comments received, the Department 
made changes from the Preliminary Determination.
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    \1\ See Non-Oriented Electrical Steel from Taiwan: Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination, 79 FR 29428 (May 22, 2014) (``Preliminary 
Determination'').
    \2\ See Letter from CSC to the Department regarding, ``Non-
Oriented Electrical Steel (NOES) from Taiwan--China Steel Case 
Brief,'' dated August 11, 2014; see also Letter from Petitioner to 
the Department regarding, ``Non-Oriented Electrical Steel From 
Taiwan: Petitioner's Case Brief,'' dated August 11, 2014.
    \3\ See Letter from CSC to the Department regarding, ``Non-
Oriented Electrical Steel (NOES) from Taiwan--China Steel Rebuttal 
Brief,'' dated August 18, 2014.
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Period of Investigation

    The period of investigation (``POI'') is July 1, 2012, through June 
30, 2013.

Scope of the Investigation

    The merchandise subject to this investigation consists of non-
oriented electrical steel (NOES), which includes cold-rolled, flat-
rolled, alloy steel products, whether or not in coils, regardless of 
width, having an actual thickness of 0.20 mm or more, in which the core 
loss is substantially equal in any direction of magnetization in the 
plane of the material. The term ``substantially equal'' means that the 
cross grain direction of core loss is no

[[Page 61615]]

more than 1.5 times the straight grain direction (i.e., the rolling 
direction) of core loss. NOES has a magnetic permeability that does not 
exceed 1.65 Tesla when tested at a field of 800 A/m (equivalent to 10 
Oersteds) along (i.e., parallel to) the rolling direction of the sheet 
(i.e., B<INF>800</INF> value). NOES contains by weight more than 1.00 
percent of silicon but less than 3.5 percent of silicon, not more than 
0.08 percent of carbon, and not more than 1.5 percent of aluminum. NOES 
has a surface oxide coating, to which an insulation coating may be 
applied.
    The subject merchandise is provided for in subheadings 
7225.19.0000, 7226.19.1000, and 7226.19.9000 of the HTSUS. Subject 
merchandise may also be entered under subheadings 7225.50.8085, 
7225.99.0090, 7226.92.5000, 7226.92.7050, 7226.92.8050, 7226.99.0180 of 
the HTSUS. Although HTSUS subheadings are provided for convenience and 
customs purposes, the written description of the scope is dispositive. 
For a complete description of the scope of this investigation, see the 
Issues and Decision Memorandum, dated concurrently with this notice.\4\
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    \4\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance 
regarding, ``Issues and Decision Memorandum for the Final 
Determination of Sales at Less Than Fair Value: Non-Oriented 
Electrical Steel from Taiwan,'' dated October 6, 2014 (``Issues and 
Decision Memorandum'').
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Use of Facts Otherwise Available and Adverse Facts Available (AFA)

    In the Preliminary Determination, we stated that because the 
mandatory respondent Leicong Industrial Company, Ltd. (``Leicong'') 
failed to respond to the Department's questionnaire, we preliminarily 
determined to apply facts otherwise available with an adverse inference 
to this respondent pursuant to sections 776(a) and (b) of the Act. 
Pursuant to section 776 of the Act, the Department continues to find it 
appropriate to base Leicong's rate on AFA. Further, we continue to find 
that the margin in the Petition, which we determined during our pre-
initiation analysis was based on adequate and accurate information, and 
which we corroborated in the Preliminary Determination, is the 
appropriate AFA rate for Leicong. In applying AFA, we are assigning 
Leicong a rate of 52.23 percent.

Verification

    As provided in section 782(i) of the Act, the Department conducted 
sales and cost verifications of the questionnaire responses submitted 
by CSC. The Department used standard verification procedures, including 
examination of relevant accounting and production records and original 
source documents provided by the respondent.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum. 
A list of the issues raised by the parties and to which the Department 
responded in the Issues and Decision Memorandum is attached to this 
notice as an Appendix. 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 (``IA ACCESS''). IA ACCESS is available to registered users at 
http://iaaccess.trade.gov, and is available to all parties in the 
Central Records Unit, which is in room 7046 of the main Department of 
Commerce building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly on the internet at http://enforcement.trade.gov/frn/index.html. The paper copy and electronic 
version of the Issues and Decision Memorandum are identical in content.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made the following changes to the margin calculation 
for CSC. We relied on the COP data submitted by CSC except as follows:
    <bullet> We allowed CSC's full cost allocation to secondary and 
salvage products.
    <bullet> We increased CSC's cost of manufacturing to reflect the 
market value of its affiliated party purchases of scrap in accordance 
with the transactions disregarded rule of section 773(f)(2) of the Act.
    <bullet> For difference-in-merchandise (``DIFMER'') purposes, we 
excluded CSC's depreciation expense for all stages of production (i.e., 
steelmaking through the electrical steel process) from the variable 
cost of manufacturing (``VCOM''). This results in a decrease to the 
per-unit VCOM for DIFMER purposes.

For additional details on the above issues, see Memorandum to Neal M. 
Halper, Director of Office of Accounting, ``Cost of Production and 
Constructed Value Calculation Adjustments for the Final Determination--
China Steel Corporation,'' dated October 6, 2014.

Final Determination

    The Department determines that the following final dumping margins 
exist for the POI:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                    Producer or exporter                       dumping
                                                              margin (%)
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China Steel Corporation....................................        27.54
Leicong Industrial Company, Ltd............................        52.23
All Others.................................................        27.54
------------------------------------------------------------------------

Disclosure

    The Department intends to disclose calculations performed for this 
final determination to the parties within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, we will instruct U.S. 
Customs and Border Protection (CBP) to continue to suspend liquidation 
of all entries of NOES from Taiwan which were entered, or withdrawn 
from warehouse, for consumption on or after May 22, 2014, the date of 
publication of the Preliminary Determination. We will instruct CBP to 
require a cash deposit equal to the weighted-average amount by which 
normal value exceeds U.S. price, as follows: (1) The rates for CSC and 
Leicong Industrial Company, Ltd. will be the rates we have determined 
in this final determination; (2) if the exporter is not a firm 
identified in this investigation but the producer is, the rate will be 
the rate established for the producer of the subject merchandise; (3) 
the rate for all other producers or exporters will be 27.54 percent, as 
discussed in the ``All Others Rate'' section, below. These suspension 
of liquidation instructions will remain in effect until further notice.

``All Others'' Rate

    Section 735(c)(5)(A) of the Act provides that the estimated ``all 
others'' rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated, excluding any zero or de 
minimis margins and any margins determined entirely under section 776 
of the Act. CSC is the only respondent in this investigation for which 
we calculated a company-specific rate that is not zero, de minimis, or

[[Page 61616]]

determined entirely under section 776 of the Act. Therefore, for 
purposes of determining the ``all others'' rate and pursuant to section 
735(c)(5)(A) of the Act, we are using the dumping margin calculated for 
CSC, 27.54 percent, for the ``all others'' rate, as referenced above.

U.S. International Trade Commission (``ITC'') Notification

    In accordance with section 735(d) of the Act, we notified the 
International Trade Commission (ITC) of our final determination. As our 
final determination is affirmative, and in accordance with section 
735(b)(2) of the Act, the ITC will determine, within 45 days, whether 
the domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports or sales (or the 
likelihood of sales) for importation of NOES from Taiwan. If the ITC 
determines that such injury does exist, the Department will issue an 
antidumping duty order directing CBP to assess antidumping duties on 
all imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

Notification Regarding Administrative Protective Orders (``APO'')

    This notice also serves as a reminder to the parties subject to APO 
of their responsibility concerning the disposition of propriety 
information disclosed under APO in accordance with 19 CFR 351.305. 
Timely written notification of 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 sanctionable 
violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

    Dated: October 6, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix

Issues for the Final Determination

Summary
Background
Period of Investigation
Scope of the Investigation
Discussion of Issues
    Comment 1: Whether the Department Should Exclude CSC's Sales 
Ultimately Destined to a Third Country From the Margin Calculation
    Comment 2: Difference Between POI Net Cost of Manufacturing and 
Total Cost of Manufacturing
    Comment 3: Fixed Overhead (FOH) for CONNUM 16216011
Recommendation
[FR Doc. 2014-24368 Filed 10-10-14; 8:45 am]
BILLING CODE 3510-DS-P