[Federal Register Volume 79, Number 198 (Tuesday, October 14, 2014)]
[Notices]
[Pages 61609-61612]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-24372]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-428-843, A-588-872, A-570-996, A-401-809]


Non-Oriented Electrical Steel from Germany, Japan, the People's 
Republic of China, and Sweden: Final Affirmative Determinations of 
Sales at Less Than Fair Value and Final Affirmative Determinations of 
Critical Circumstances, in Part

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
non-oriented electrical steel (NOES) from Germany, Japan, the People's 
Republic of China (the PRC), and Sweden 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 estimated weighted average dumping margins are shown in the 
``Final Determinations'' section of this notice.

DATES: Effective Date: October 14, 2014.

FOR FURTHER INFORMATION CONTACT: Patrick O'Connor at (202) 482-0989 
(Germany); Thomas Martin at (202) 482-3936 (Japan); Yang Jin Chun at 
(202) 482-5760 (the PRC); or Drew Jackson at (202) 482-4406 (Sweden); 
AD/CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On May 22, 2014, the Department published its preliminary 
affirmative determinations of sales at LTFV and preliminary affirmative 
determinations of critical circumstances, in part, in the LTFV 
investigations of NOES from Germany, Japan, Sweden,\1\ and the PRC.\2\ 
We invited interested parties to comment on our preliminary 
determinations. We received no comments in the investigations of NOES 
from Germany, Sweden, and the PRC. We received case and rebuttal briefs 
in the investigation of NOES from Japan. On June 23, 2014, we received 
case briefs from Marubeni Itochu Steel America Inc. and Nippon Steel & 
Sumitomo Metal Corporation. On June 30, 2014, we received a rebuttal 
brief from AK Steel Corporation (Petitioner). On July 2, 2014, we 
postponed the final determinations of these LTFV investigations to 
October 6, 2014.\3\
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    \1\ See Non-Oriented Electrical Steel from Germany, Japan, and 
Sweden: Preliminary Determinations of Sales at Less Than Fair Value, 
and Preliminary Affirmative Determinations of Critical 
Circumstances, in Part, 79 FR 29423 (May 22, 2014) (Preliminary 
Determinations).
    \2\ See Non-Oriented Electrical Steel From the People's Republic 
of China: Preliminary Affirmative Determinations of Sales at Less 
Than Fair Value and Critical Circumstances, 79 FR 29421 (May 22, 
2014) (Preliminary Determination PRC).
    \3\ See Non-Oriented Electrical Steel From the People's Republic 
of China, Germany, Japan, and Sweden: Postponement of Final 
Determinations of Sales at Less Than Fair Value, 79 FR 37718 (July 
2, 2014).
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Period of Investigations

    The period of investigation for the investigations of NOES from 
Germany, Japan and Sweden is July 1, 2012, through June 30, 2013. The 
period of investigation for the investigation of NOES from the PRC is 
January 1, 2013, through June 30, 2013.

Scope of the Investigations

    The merchandise subject to these investigations 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 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.
    NOES is subject to these investigations whether it is fully 
processed (i.e., fully annealed to develop final magnetic properties) 
or semi-processed (i.e., finished to final thickness and physical form 
but not fully annealed to develop final magnetic properties). Fully 
processed NOES is typically made to the requirements of ASTM 
specification A 677, Japanese Industrial Standards (JIS) specification 
C 2552, and/or International Electrotechnical Commission (IEC) 
specification 60404-8-4. Semi-processed NOES is typically made to the 
requirements of ASTM specification A

[[Page 61610]]

683. However, the scope of this investigation is not limited to 
merchandise meeting the ASTM, JIS and IEC specifications noted 
immediately above.
    NOES is sometimes referred to as cold-rolled non-oriented (CRNO), 
non-grain oriented (NGO), non-oriented (NO), or cold-rolled non-grain 
oriented (CRNGO) electrical steel. These terms are interchangeable.
    Excluded from the scope of these investigations are flat-rolled 
products not in coils that, prior to importation into the United 
States, have been cut to a shape and undergone all punching, coating, 
or other operations necessary for classification in Chapter 85 of the 
Harmonized Tariff Schedule of the United States (HTSUS) as a part 
(i.e., lamination) for use in a device such as a motor, generator, or 
transformer.
    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.

Verification

    Because none of the mandatory respondents in the investigations of 
NOES from Germany, Japan, and Sweden provided information requested by 
the Department and because the Department preliminarily determined that 
each of the mandatory respondents in these investigations had been 
uncooperative,\4\ the Department did not conduct verifications. 
Additionally, the only party in the investigation of NOES from the PRC, 
the PRC-wide entity, did not cooperate to the best of its ability.\5\ 
Accordingly, the Department did not conduct a verification in the PRC 
investigation.
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    \4\ See Preliminary Determinations, 79 FR at 29425.
    \5\ See Preliminary Determination PRC, 79 FR at 29422.
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Analysis of Comments Received

    Because we received no comments in the investigations of NOES from 
Germany, Sweden, and the PRC, we made no changes to the Preliminary 
Determinations with respect to these investigations. All issues raised 
in the case and rebuttal briefs filed by parties in the Japan 
investigation are addressed in the Japan Issues and Decision 
Memorandum.\6\ A list of the issues that parties raised and to which we 
responded is in the Japan Issues and Decision Memorandum and attached 
to this notice as an appendix. The Japan 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 it is available to all parties in the 
Central Records Unit, room 7046, of the main Department of Commerce 
building. In addition, a complete version of the Japan Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html.
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    \6\ See the Memorandum from Deputy Assistant Secretary Christian 
Marsh to Assistant Secretary Paul Piquado entitled ``Issues and 
Decision Memorandum for the Final Determination of Sales at Less 
Than Fair Value for Non-Oriented Electrical Steel from Japan'' dated 
concurrently with and adopted by this notice (Japan Issues and 
Decision Memorandum).
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Changes Since the Preliminary Determinations

    Based on a review of the record and comments received from 
interested parties, we made one revision to our preliminary 
determination in the investigation of NOES from Japan. As discussed 
below in the ``Final Affirmative Determinations of Critical 
Circumstances, in Part'' section, we do not find there to be massive 
imports for the non-individually examined companies receiving the ``All 
Others'' rate in the investigation of NOES from Japan, pursuant to 
section 735(a)(3)(B) of the Act and 19 CFR 351.206(h). Accordingly, we 
no longer find that critical circumstances exist for the non-
individually examined companies receiving the ``All Others'' rate in 
the Japan investigation. We made no changes to our preliminary 
determinations in the LTFV investigations of NOES from Germany, Sweden, 
or the PRC.

Final Affirmative Determinations of Critical Circumstances, in Part

    In accordance with section 733(e) of the Act and 19 CFR 351.206, we 
preliminarily found critical circumstances exist with respect to each 
of the mandatory respondents in the investigations of NOES from 
Germany, Japan and Sweden, and for all other producers and exporters 
subject to the investigations of NOES from Japan and Sweden.\7\ With 
respect to all other producers and exporters subject to the 
investigation of NOES from Germany, including ThyssenKrupp Steel Europe 
AG, we preliminarily found that critical circumstances did not 
exist.\8\ In addition, in accordance with section 733(e)(1) of the Act, 
we preliminarily found that critical circumstances exist with respect 
to the PRC-wide entity in the investigation of NOES from the PRC.\9\
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    \7\ See Preliminary Determinations, 79 FR at 29424.
    \8\ Id.
    \9\ See Preliminary Determination PRC, 79 FR at 29422.
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    As stated above, for the investigations of NOES from Sweden, 
Germany, and the PRC, we received no comments concerning the 
preliminary determinations. Thus, we continue to find that, in 
accordance with section 735(a)(3) of the Act and 19 CFR 351.206, 
critical circumstances exist for all exporters and producers, including 
the mandatory respondent, of NOES from Sweden, and that critical 
circumstances exist for each of the mandatory respondents in the 
investigation of NOES from Germany. With respect to all other producers 
and exporters subject to the investigation of NOES from Germany, 
including ThyssenKrupp Steel Europe AG, we find that critical 
circumstances do not exist. Also, for the investigation of NOES from 
the PRC, we continue to find that, in accordance with section 735(a)(3) 
of the Act and 19 CFR 351.206, critical circumstances exist with 
respect to the PRC-wide entity.
    For Japan, we received a comment that the Department should update 
the U.S. import statistics used in its critical circumstances analysis 
if additional data up through May 2014 (the month the preliminary 
determination was issued and published) are available. In response to 
this comment, in conducting our critical circumstances analysis for the 
final determination, we compared relevant import data for the 
comparison period October 2013 to May 2014 to data for the base period 
February 2013 to September 2013. Based on this comparison, we did not 
find an increase in imports of 15 percent or more during a ``relatively 
short period'' of time, in accordance with 19 CFR 351.206(h) and (i). 
Therefore, we do not find there to be massive imports for the non-
individually examined companies receiving the ``All Others'' rate in 
the investigation of NOES from Japan, pursuant to section 735(a)(3)(B) 
of the Act and 19 CFR 351.206(h).\10\ Accordingly, while we continue to 
find that critical circumstances exist with respect to each of the 
mandatory respondents in the investigation of

[[Page 61611]]

NOES from Japan, we find that critical circumstances do not exist for 
the non-individually examined companies receiving the ``All Others'' 
rate in the investigation of NOES from Japan under section 735(a)(3) of 
the Act and 19 CFR 351.206.
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    \10\ See Memorandum from Thomas Martin to the File, ``Non-
Oriented Electrical Steel from Japan: U.S. Import Data Considered in 
Critical Circumstances Analysis for the Final Determination'' dated 
October 6, 2014.
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Use of Facts Available and Adverse Facts Available

    As stated in the Preliminary Determinations and Preliminary 
Determination PRC, all mandatory respondents in the Germany, Japan, and 
Sweden proceedings and the PRC-wide entity in the PRC proceeding failed 
to cooperate to the best of their ability in providing requested 
information because they withheld requested information, failed to 
provide the information in a timely manner and in the form requested, 
and significantly impeded these proceedings.\11\ Accordingly, pursuant 
to sections 776(a)(2)(A), (B), and (C) and section 776(b) of the Act, 
we find it appropriate to assign the estimated weighted-average dumping 
margins in the table below, which are based on total adverse facts 
available.\12\
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    \11\ See Preliminary Determinations, and accompanying 
Preliminary Decision Memorandum at 7-10; Preliminary Determination 
PRC, and accompanying Preliminary Decision Memorandum at 6-9.
    \12\ Id.
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Final Determinations

    As stated above, we made no changes to our preliminary LTFV 
determinations in the Germany, Japan, Sweden, and PRC investigations. 
Therefore, we continue to determine that the following estimated 
weighted-average dumping margins exist for the following producers or 
exporters for Germany, Japan, and Sweden during the period July 1, 
2012, through June 30, 2013; and for the PRC wide-entity during the 
period January 1, 2013 through June 30, 2013:

Germany

------------------------------------------------------------------------
                  Producer or exporter                         Rate
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CD Walzholz.............................................          98.84%
Thyssenkrupp Electrical Steel EBG GMBH..................          98.84%
All Others..............................................          86.29%
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Japan

------------------------------------------------------------------------
                  Producer or exporter                         Rate
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JFE Steel Corporation...................................         204.79%
Sumitomo Corporation....................................         204.79%
All Others..............................................         135.59%
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Sweden

------------------------------------------------------------------------
                  Producer or exporter                         Rate
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Surahammars Bruks AB....................................         126.72%
All Others..............................................          98.46%
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The People's Republic of China

------------------------------------------------------------------------
                        Exporter                               Rate
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PRC-Wide Entity.........................................         407.52%
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All Others Rate

    For Germany, Japan and Sweden, the ``All Others'' rate is based on 
a simple average of the dumping margins from the petition.\13\ For a 
full description of the methodology underlying our final 
determinations, see All Other Rate Memoranda.\14\
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    \13\ See Preliminary Determinations, 79 FR at 29424.
    \14\ See the Memorandum from Patrick O'Connor to the Germany 
Investigation File ``Non-Oriented Electrical Steel from the Federal 
Republic of Germany: Calculation of All Others Rate, dated May 16, 
2014; the Memorandum from Thomas Martin to the Japan Investigation 
File, ``Non-Oriented Electrical Steel from Japan: Calculation of All 
Others Rate,'' dated May 15, 2014; and the Memorandum from Drew 
Jackson to the Sweden Investigation File, ``Non-Oriented Electrical 
Steel from Sweden: Calculation of All Others Rate'' dated May 16, 
2014 (collectively, All Others Rate Memoranda). See also, e.g., 
Notice of Final Determination of Sales at Less Than Fair Value: Raw 
Flexible Magnets From Taiwan, 73 FR 39673, 39674 (July 10, 2008) 
(where the Department determined the all others rate using a simple 
average of the alleged dumping margins from the petition).
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Continuation and Partial Termination of Suspension of Liquidation

    In accordance with section 735(c)(4)(A) of the Act, the Department 
will instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of NOES from Germany, 
Japan, the PRC, and Sweden, as described in the ``Scope of the 
Investigations'' section, for which critical circumstances have been 
found to exist, which were entered, or withdrawn from warehouse, for 
consumption on or after February 21, 2014, 90 days prior to the date of 
publications of the Preliminary Determinations and the Preliminary 
Determination PRC, pursuant to section 733(e)(2) of the Act.
    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct CBP to continue to suspend liquidation of entries of NOES 
from Germany, as described in the ``Scope of the Investigations'' 
section, from companies receiving the ``All Others'' rate, which were 
entered, or withdrawn from warehouse, for consumption on or after May 
22, 2014, the date of publication of the Preliminary Determinations.
    Because we no longer find that critical circumstances exist for the 
non-individually examined companies receiving the ``All Others'' rate 
in the investigation of NOES from Japan, the Department, in accordance 
with section 735(c)(3) of the Act, will instruct CBP to terminate the 
suspension of liquidation of relevant entries, as described in the 
``Scope of the Investigations'' section, which were entered, or 
withdrawn from warehouse, for consumption prior to the date of 
publication of the Preliminary Determinations (i.e., on or after 
February 21, 2014 through May 21, 2014), and to refund any cash deposit 
with respect to those entries of subject merchandise the liquidation of 
which was suspended retroactively under section 733(e)(2) of the Act. 
In accordance with sections 733(d)(2) and 735(c)(1)(B) of the Act, we 
will direct CBP to continue the suspension of liquidation of all 
entries of NOES from Japan, as described in the ``Scope of the 
Investigations'' section, from companies receiving the ``All Others'' 
rate which were entered, or withdrawn from warehouse, for consumption 
on or after May 22, 2014, the date of publication of the Preliminary 
Determinations.
    Pursuant to section 735(c)(1) of the Act and 19 CFR 351.210(d), we 
will instruct CBP to require a cash deposit for entries of NOES from 
Germany, Japan, and Sweden as follows: (1) The cash deposit rates for 
mandatory respondents will be equal to the estimated weighted-average 
dumping margins that we have determined in these final determinations 
for these respondents; (2) if the exporter is not a mandatory 
respondent identified in the investigation but the producer is, the 
cash deposit rate will be the estimated weighted-average dumping margin 
established for the producer of the subject merchandise in these final 
determinations; and (3) the cash deposit rate for all other producers 
or exporters will be equal to the country-specific estimated weighted-
average dumping margin for ``All Other'' producers and exporters 
determined in these final determinations. The instructions suspending 
liquidation will remain in effect until further notice.\15\
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    \15\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
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    Consistent with our practice, where the product under investigation 
is also subject to a concurrent countervailing duty investigation, we 
instruct CBP to require a cash deposit equal to the

[[Page 61612]]

amount by which the normal value exceeds the export price or 
constructed export price, adjusted where appropriate for export 
subsidies and estimated domestic subsidy pass-through.\16\ With regard 
to the PRC-wide entity, we find that an adjustment for export subsidies 
of 10.77 percent \17\ is warranted because this is the export subsidy 
rate included in the countervailing duty rate to which all entries from 
the PRC-wide entity are currently subject. We are not adjusting the 
final determination rate for estimated domestic subsidy pass-through 
because we have no basis upon which to make such an adjustment. Thus, 
we will offset the estimated weighted-average dumping margin for the 
PRC-wide entity of 407.52 percent by the countervailing duty rate 
attributable to export subsidies (i.e., 10.77 percent) to calculate the 
cash deposit ad valorem rate for the PRC-wide entity of 396.75 percent. 
The suspension of liquidation instructions will remain in effect until 
further notice.
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    \16\ See sections 772(c)(1)(C) and 777A(f) of the Act, 
respectively. Unlike in administrative reviews, the Department makes 
an adjustment for export subsidies in an LTFV investigation not in 
the calculation of the weighted-average dumping margin, but in the 
cash deposit instructions issued to CBP. See Notice of Final 
Determination of Sales at Less Than Fair Value, and Negative 
Determination of Critical Circumstances: Certain Lined Paper 
Products from India, 71 FR 45012 (August 8, 2006), and accompanying 
Issues and Decision Memorandum at comment 1.
    \17\ The following subsidy programs countervailed in the final 
determination of the concurrent countervailing duty investigation 
are export subsidies: Preferential Export Financing from the Export-
Import Bank of China (1.06 percent) and Tax Refunds for Reinvestment 
of FIE Profits in Export-Oriented Enterprises (9.71 percent). See 
Non-Oriented Electrical Steel from the People's Republic of China: 
Final Affirmative Countervailing Duty Determination and Final 
Affirmative Critical Circumstances Determination, and the 
accompanying Issues and Decision Memorandum at 8, signed 
concurrently with this notice.
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Combination Rates

    In the Initiation Notice,\18\ the Department stated that it would 
calculate combination rates for PRC respondents that are eligible for a 
separate rate in this investigation. This practice is described in 
Policy Bulletin 05.1, available at http://enforcement.trade.gov/policy/index.html. Because the Department has not granted a separate rate to 
any PRC respondent, the Department has not calculated combination rates 
for any PRC respondents.
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    \18\ See Non-Oriented Electrical Steel From the People's 
Republic of China, Germany, Japan, the Republic of Korea, Sweden, 
and Taiwan: Initiation of Antidumping Duty Investigations, 78 FR 
69041, 69046 (November 18, 2013).
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Disclosure

    We described the calculations used to determine the estimated 
weighted-average dumping margins based on adverse facts available in 
the Preliminary Determinations and Preliminary Determination PRC. We 
made no changes to our calculations since these preliminary affirmative 
determinations. Thus, no additional disclosure of calculations is 
necessary for the final determinations.

U.S. International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of our final affirmative 
determinations of sales at LTFV and final affirmative determinations of 
critical circumstances, in part. Because the final determinations in 
these proceedings are affirmative, section 735(b)(2) of the Act 
requires that the ITC make its final determinations as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of NOES from 
Germany, Japan, Sweden, and the PRC no later than 45 days after our 
final determinations. If the ITC determines that material injury or 
threat of material injury does not exist for any country, the 
associated proceeding will be terminated and all securities posted will 
be refunded. If the ITC determines that such injury does exist for any 
country, the Department will issue an antidumping duty order for that 
country 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 Order

    This notice serves as a reminder to the parties subject to 
administrative protective orders (APOs) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APOs 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 the terms of APOs is a sanctionable violation.

Notification to Interested Parties

    These determinations are issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

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

Appendix: Japan Issues and Decision Memorandum

I. Summary
II. Background
III. Critical Circumstances
IV. Scope Comments
V. Scope of the Investigations
VI. Discussion of the Issues
    Comment 1: Request for a Scope Clarification
    Comment 2: Request to Treat October 2013 as Part of the Base 
Period Rather Than the Comparison Period for Purposes of Critical 
Circumstances
    Comment 3: Request to Revise the Comparison Period for Purposes 
of Critical Circumstances
VII. Recommendation
[FR Doc. 2014-24372 Filed 10-10-14; 8:45 am]
BILLING CODE 3510-DS-P