[Federal Register Volume 79, Number 247 (Wednesday, December 24, 2014)]
[Notices]
[Pages 77455-77457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30234]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-821-809]


Termination of the Suspension Agreement on Hot-Rolled Flat-Rolled 
Carbon-Quality Steel Products From the Russian Federation, Rescission 
of 2013-2014 Administrative Review, and Issuance of Antidumping Duty 
Order

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

SUMMARY: The Department of Commerce (``Department'') is terminating the 
Agreement Suspending the Antidumping Investigation on Certain Hot-
Rolled Flat-Rolled Carbon-Quality Steel Products from the Russian 
Federation (``Agreement''), rescinding the 2013-2014 administrative 
review of the agreement, and issuing an antidumping duty (``AD'') order 
on hot-rolled steel products from the Russian Federation. The 
Department is directing the suspension of liquidation to begin on 
December 19, 2014.

FOR FURTHER INFORMATION CONTACT: Sally C. Gannon or Judith Wey Rudman, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-0162 or (202) 482-0192, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 15, 1998, the Department initiated an AD investigation 
on imports of hot-rolled steel from the Russian Federation. See 
Initiation of Antidumping Duty Investigations: Certain Hot-Rolled Flat-
Rolled Carbon-Quality Steel Products from Brazil, Japan, and the 
Russian Federation, 63 FR 56607 (October 22, 1998). On November 25, 
1998, the ITC published its preliminary determination that there was a 
reasonable indication that an industry in the United States was 
threatened with material injury by reason of imports of the subject 
merchandise from the Russian Federation. See Certain Hot-Rolled Steel 
Products From Brazil, Japan, and Russia, 63 FR 65221 (November 25, 
1998). On February 25, 1999, the Department published its preliminary 
determination that hot-rolled steel from the Russian Federation was 
being, or was likely to be, sold in the United States at less than fair 
value. See Notice of Preliminary Determination of Sales at Less Than 
Fair Value: Hot-Rolled Flat-Rolled Carbon-Quality Steel Products From 
the Russian Federation, 64 FR 9312, February 25, 1999.
    On July 12, 1999, the Department and the Ministry of Trade 
(``MOT'') of the Russian Federation signed the Agreement, under section 
734(l) of the Tariff Act of 1930, as amended (``the Act''), which 
suspended the AD investigation on hot-rolled steel from the Russian 
Federation. See Suspension of Antidumping Duty Investigation: Hot-
Rolled Flat-Rolled Carbon-Quality Steel Products From the Russian 
Federation, 64 FR 38642 (July 19, 1999). The basis for this action was 
an agreement between the Department and the MOT accounting for 
substantially all imports of hot-rolled steel from the Russian 
Federation, wherein the MOT agreed to restrict exports of hot-rolled 
steel from all Russian producers/exporters to the United States and to 
ensure that such exports were sold at or above the agreed reference 
prices. The MOT was the predecessor to the Economy Ministry, which is 
now the relevant agency representing the Government of the Russian 
Federation for purposes of this Agreement.
    Upon the request of the petitioners in this proceeding, the 
investigation was continued and the Department made an affirmative 
final determination of sales at less than fair value.\1\ See Notice of 
Final Determination of Sales at Less Than Fair Value: Hot-Rolled Flat-
Rolled Carbon-Quality Steel Products From the Russian Federation, 64 FR 
38626 (July 19, 1999) (Final Determination). In its Final 
Determination, the Department calculated weighted-average dumping 
margins of 73.59 percent for Joint Stock Company (``JSC'') Severstal, a 
respondent company in the investigation, and 184.56 percent as the 
Russia-wide rate. Likewise, the International Trade Commission 
(``ITC'') continued its investigation and made an affirmative 
determination of material injury to an industry in the United States. 
See Certain Hot-Rolled Steel Products From Brazil and Russia, 64 FR 
46951 (August 27, 1999) (Final ITC Determination).
---------------------------------------------------------------------------

    \1\ The petitioners in the original investigation included the 
following: Bethlehem Steel Corp.; Ispat Inland Inc.; LTV Steel 
Company, Inc.; National Steel Corp.; U.S. Steel Group (a Unit of USX 
Corp.); California Steel Industries; Gallatin Steel Company; Geneva 
Steel; Gulf States Steel Inc.; Ipsco Steel Inc.; Steel Dynamics; 
Weirton Steel Corporation; and Independent Steelworkers Union.
---------------------------------------------------------------------------

    On August 26, 2011, at the request of Nucor Corporation, a domestic 
interested party, the Department initiated an administrative review of 
the Agreement for the period of review from July 1, 2010, through June 
30, 2011. See Notice of Initiation of Antidumping and Countervailing 
Duty Administrative Reviews and Requests for Revocation in Part, 76 FR 
53404 (August 26, 2011). On November 30, 2012, the Department and the 
Economy Ministry signed a revision to the Agreement that updated the 
reference prices and revised the mechanism for calculating the 
reference prices. On December 6, 2012, the Department published its 
final results of administrative review and the November 30, 2012, 
revision to the Agreement. See Hot-Rolled Flat-Rolled Carbon-Quality 
Steel Products From the Russian Federation; 2010-2011; Final Results of 
Administrative Review and Revision of Agreement Suspending Antidumping 
Duty Investigation, 77 FR 72820 (December 6, 2012).
    On July 10, 2014, domestic interested parties Nucor Corporation, 
ArcelorMittal USA LLC, United States Steel Corporation, Gallatin Steel 
Company, Steel Dynamics, Inc. (SDI), and SSAB N.A.D., Inc., filed a 
submission alleging that the revised Agreement had failed to achieve 
its statutory purpose of preventing the suppression or undercutting of 
price levels of domestic producers by imports of hot-rolled steel from 
the Russian Federation and that the Department should terminate the 
agreement and impose antidumping duties on imports of hot-rolled steel 
from the Russian Federation. On August 29, 2014, at the request of 
Russian Hot-Rolled Steel producers JSC Severstal and Novolipetsk Steel 
(NLMK), the Department initiated an administrative review of the 
Agreement for the period of July 1, 2013, through June 30, 2014. See 
Notice of Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 79 FR 51548 (August 29, 2014) (``2013-2014 
Administrative Review'').
    On October 17, 2014, the Department issued a letter to the Economy 
Ministry

[[Page 77456]]

stating that it had made a final decision to exercise its option under 
Section X.C of the Agreement to terminate the Agreement, effective in 
60 days. On October 22, 2014, the Trade Representative of the Russian 
Federation in the USA requested by letter that the Department clarify 
the exact date of termination of the Agreement. On October 27, 2014, 
the Department clarified, by letter to the Trade Representative, that 
it considered the official date of notification to the Economy Ministry 
to be October 20, 2014 (i.e., the date the Economy Ministry received 
the notification) and the effective date of termination of the 
Agreement to be December 19, 2014.

Scope of the Order

    The merchandise subject to the AD order is certain hot-rolled flat-
rolled carbon-quality steel products. The covered merchandise is 
classified in the Harmonized Tariff Schedule of the United States 
(``HTSUS'') at subheadings: 7208.10.15.00, 7208.10.30.00, 
7208.10.60.00, 7208.25.30.00, 7208.25.60.00, 7208.26.00.30, 
7208.26.00.60, 7208.27.00.30, 7208.27.00.60, 7208.36.00.30, 
7208.36.00.60, 7208.37.00.30, 7208.37.00.60, 7208.38.00.15, 
7208.38.00.30, 7208.38.00.90, 7208.39.00.15, 7208.39.00.30, 
7208.39.00.90, 7208.40.60.30, 7208.40.60.60, 7208.53.00.00, 
7208.54.00.00, 7208.90.00.00, 7210.70.30.00, 7210.90.90.00, 
7211.14.00.30, 7211.14.00.90, 7211.19.15.00, 7211.19.20.00, 
7211.19.30.00, 7211.19.45.00, 7211.19.60.00, 7211.19.75.30, 
7211.19.75.60, 7211.19.75.90, 7212.40.10.00, 7212.40.50.00, 
7212.50.00.00. Certain hot-rolled flat-rolled carbon-quality steel 
covered include: vacuum degassed, fully stabilized; high strength low 
alloy; and the substrate for motor lamination steel may also enter 
under the following tariff numbers: 7225.11.00.00, 7225.19.00.00, 
7225.30.30.50, 7225.30.70.00, 7225.40.70.00, 7225.99.00.90, 
7226.11.10.00, 7226.11.90.30, 7226.11.90.60, 7226.19.10.00, 
7226.19.90.00, 7226.91.50.00, 7226.91.70.00, 7226.91.80.00, and 
7226.99.01.80. Although the HTSUS subheadings are provided for 
convenience and Customs purposes, the written description of the 
covered merchandise is dispositive.
    See Appendix I for the full description of merchandise covered by 
the Order.

Termination of Suspended Investigation and Issuance of AD Order

    As discussed above, on October 20, 2014, the Department notified 
the Economy Ministry of its decision to terminate the Agreement 
pursuant to Section X.C of the Agreement, which states (in part):

    MOT or DOC may terminate this Agreement at any time upon written 
notice to the other party. Termination shall be effective 60 days 
after such notice is given. Upon termination of this Agreement, the 
provisions of U.S. antidumping law and regulations shall apply.

    As noted above, the underlying investigation in this proceeding was 
continued pursuant to section 734(g) of the Act, following the 
acceptance of the Agreement. The Department made a final affirmative AD 
determination, and the ITC found material injury. See Final 
Determination and ITC Final Injury Determination, respectively. 
Therefore, in accordance with section 735(c) of the Act, the Department 
is issuing an AD order and instructing U.S. Customs and Border 
Protection (``CBP'') to suspend liquidation of entries of subject 
merchandise, effective December 19, 2014, which is 60 days from the 
date the Department gave notice to the Economy Ministry of that it was 
terminating the Agreement, as described above.

Rescission of Administrative Review

    Due to the termination of the Agreement, the Department is 
rescinding the 2013-2014 Administrative Review of the Agreement, 
effective December 19, 2014.

Antidumping Duty Order

    In accordance with section 736(a)(1) of the Act, the Department is 
directing CBP to assess, beginning on December 19, 2014, an antidumping 
duty equal to the weighted-average AD margins listed below.
    We are instructing CBP to require a cash deposit for each entry 
equal to the AD weighted-average margin rates found in the Department's 
Final Determination, as listed below. These suspension-of-liquidation 
instructions will remain in effect until further notice. The all others 
rate applies to all producers and exporters of subject merchandise not 
specifically listed. The final AD ad valorem rates are as follows:

------------------------------------------------------------------------
                                                        Weighted-average
                Manufacturer/Exporter                   margin (percent)
------------------------------------------------------------------------
JSC Severstal........................................              73.59
All Others...........................................             184.56
------------------------------------------------------------------------

    This notice constitutes the AD order with respect to hot-rolled 
steel from the Russian Federation pursuant to section 736(a) of the 
Act. This order is issued and published in accordance with section 
736(a) of the Act and 19 CFR 351.211(b).

    Dated: December 19, 2014.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

    For the purposes of this antidumping duty order, ``hot-rolled 
steel'' means certain hot-rolled flat-rolled carbon-quality steel 
products of a rectangular shape, of a width of 0.5 inch or greater, 
neither clad, plated, nor coated with metal and whether or not 
painted, varnished, or coated with plastics or other non-metallic 
substances, in coils (whether or not in successively superimposed 
layers) regardless of thickness, and in straight lengths, of a 
thickness less than 4.75 mm and of a width measuring at least 10 
times the thickness.
    Universal mill plate (i.e., flat-rolled products rolled on four 
faces or in a closed box pass, of a width exceeding 150 mm but not 
exceeding 1250 mm and of a thickness of not less than 4 mm, not in 
coils and without patterns in relief) of a thickness not less than 
4.0 mm is not included within the scope of this order.
    Specifically subject to the scope of this order are vacuum 
degassed, fully stabilized (commonly referred to as interstitial-
free (``IF'')) steels, high strength low alloy (``HSLA'') steels, 
and the substrate for motor lamination steels. IF steels are 
recognized as low carbon steels with micro-alloying levels of 
elements such as titanium and/or niobium added to stabilize carbon 
and nitrogen elements. HSLA steels are recognized as steels with 
micro-alloying levels of elements such as chromium, copper, niobium, 
titanium, vanadium, and molybdenum. The substrate for motor 
lamination steels contains micro-alloying levels of elements such as 
silicon and aluminum.
    Steel products subject to the scope of this order, regardless of 
HTSUS definitions, are products in which: (1) Iron predominates, by 
weight, over each of the other contained elements; (2) the carbon 
content is 2 percent or less, by weight; and (3) none of the 
elements listed below exceeds the quantity, by weight, respectively 
indicated: 1.80 Percent of manganese, or 1.50 percent of silicon, or 
1.00 percent of copper, or 0.50 percent of aluminum, or 1.25 percent 
of chromium, or 0.30 percent of cobalt, or 0.40 percent of lead, or 
1.25 percent of nickel, or 0.30 percent of tungsten, or 0.012 
percent of boron, or 0.10 percent of molybdenum, or 0.10 percent of 
niobium, or 0.41 percent of titanium, or 0.15 percent of vanadium, 
or 0.15 percent of zirconium.
    All products that meet the physical and chemical description 
provided above are within the scope of this order unless otherwise 
excluded. The following products, by way of example, are outside 
and/or specifically excluded from the scope of this order:

[[Page 77457]]

    --Alloy hot-rolled steel products in which at least one of the 
chemical elements exceeds those listed above (including e.g., ASTM 
specifications A543, A387, A514, A517, and A506).
    --SAE/AISI grades of series 2300 and higher.
    --Ball bearing steels, as defined in the HTSUS.
    --Tool steels, as defined in the HTSUS.
    --Silico-manganese (as defined in the HTSUS) or silicon 
electrical steel with a silicon level exceeding 1.50 percent.
    --ASTM specifications A710 and A736.
    --USS Abrasion-resistant steels (USS AR 400, USS AR 500).
    --Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

----------------------------------------------------------------------------------------------------------------
      C              Mn             P             S            Si            Cr            Cu            Ni
----------------------------------------------------------------------------------------------------------------
0.10-0.14%     0.90% Max      0.025% Max    0.005% Max    0.30-0.50%    0.50-0.70%    0.20-0.40%    0.20% Max
----------------------------------------------------------------------------------------------------------------
Width = 44.80 inches maximum; Thickness = 0.063-0.198 inches; Yield Strength = 50,000 ksi minimum; Tensile
  Strength = 70,000-88,000 psi.

    --Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

----------------------------------------------------------------------------------------------------------------
     C            Mn           P            S            Si           Cr          Cu          Ni          Mo
----------------------------------------------------------------------------------------------------------------
0.10-0.16%   0.70-0.90%   0.025% Max   0.006% Max   0.30-0.50%   0.50-0.70%   0.25% Max   0.20% Max   0.21% Max
----------------------------------------------------------------------------------------------------------------
Width = 44.80 inches maximum; Thickness = 0.350 inches maximum; Yield Strength = 80,000 ksi minimum; Tensile
  Strength = 105,000 psi Aim.

    --Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

--------------------------------------------------------------------------------------------------------------------------------------------------------
       C              Mn               P               S              Si             Cr             Cu             Ni           V(wt.)           Cb
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.10-0.14%      1.30-1.80%      0.025% Max      0.005% Max      0.30-0.50%     0.50-0.70%     0.20-0.40%     0.20% Max      0.10 Max       0.08% Max
--------------------------------------------------------------------------------------------------------------------------------------------------------
Width = 44.80 inches maximum; Thickness = 0.350 inches maximum; Yield Strength = 80,000 ksi minimum; Tensile Strength = 105,000 psi Aim.

    --Hot-rolled steel coil which meets the following chemical, 
physical and mechanical specifications:

--------------------------------------------------------------------------------------------------------------------------------------------------------
      C            Mn             P             S            Si            Cr            Cu            Ni            Nb            Ca            Al
--------------------------------------------------------------------------------------------------------------------------------------------------------
0.15% Max     1.40% Max     0.025% Max    0.010% Max    0.50% Max     1.00% Max     0.50% Max     0.20% Max     0.005% Min    Treated       0.01-0.07%
--------------------------------------------------------------------------------------------------------------------------------------------------------
Width = 39.37 inches; Thickness = 0.181 inches maximum; Yield Strength = 70,000 psi minimum for thicknesses <=0.148 inches and 65,000 psi minimum for
  thicknesses >0.148 inches; Tensile Strength = 80,000 psi minimum.

    --Hot-rolled dual phase steel, phase-hardened, primarily with a 
ferritic-martensitic microstructure, contains 0.9 percent up to and 
including 1.5 percent silicon by weight, further characterized by 
either (i) tensile strength between 540 N/mm\2\ and 640 N/mm\2\ and 
an elongation percentage [gteqt]26 percent for thicknesses of 2 mm 
and above, or (ii) a tensile strength between 590 N/mm\2\ and 690 N/
mm\2\ and an elongation percentage [gteqt]25 percent for thicknesses 
of 2mm and above.
    --Hot-rolled bearing quality steel, SAE grade 1050, in coils, 
with an inclusion rating of 1.0 maximum per ASTM E 45, Method A, 
with excellent surface quality and chemistry restrictions as 
follows: 0.012 percent maximum phosphorus, 0.015 percent maximum 
sulfur, and 0.20 percent maximum residuals including 0.15 percent 
maximum chromium.
    --Grade ASTM A570-50 hot-rolled steel sheet in coils or cut 
lengths, width of 74 inches (nominal, within ASTM tolerances), 
thickness of 11 gauge (0.119 inches nominal), mill edge and skin 
passed, with a minimum copper content of 0.20 percent.
    The covered merchandise is classified in the Harmonized Tariff 
Schedule of the United States (``HTSUS'') at subheadings: 
7208.10.15.00, 7208.10.30.00, 7208.10.60.00, 7208.25.30.00, 
7208.25.60.00, 7208.26.00.30, 7208.26.00.60, 7208.27.00.30, 
7208.27.00.60, 7208.36.00.30, 7208.36.00.60, 7208.37.00.30, 
7208.37.00.60, 7208.38.00.15, 7208.38.00.30, 7208.38.00.90, 
7208.39.00.15, 7208.39.00.30, 7208.39.00.90, 7208.40.60.30, 
7208.40.60.60, 7208.53.00.00, 7208.54.00.00, 7208.90.00.00, 
7210.70.30.00, 7210.90.90.00, 7211.14.00.30, 7211.14.00.90, 
7211.19.15.00, 7211.19.20.00, 7211.19.30.00, 7211.19.45.00, 
7211.19.60.00, 7211.19.75.30, 7211.19.75.60, 7211.19.75.90, 
7212.40.10.00, 7212.40.50.00, 7212.50.00.00. Certain hot-rolled 
flat-rolled carbon-quality steel covered include: Vacuum degassed, 
fully stabilized; high strength low alloy; and the substrate for 
motor lamination steel may also enter under the following tariff 
numbers: 7225.11.00.00, 7225.19.00.00, 7225.30.30.50, 7225.30.70.00, 
7225.40.70.00, 7225.99.00.90, 7226.11.10.00, 7226.11.90.30, 
7226.11.90.60, 7226.19.10.00, 7226.19.90.00, 7226.91.50.00, 
7226.91.70.00, 7226.91.80.00, 7226.99.00.00 and 7226.99.0180. 
Although the HTSUS subheadings are provided for convenience and 
Customs purposes, the written description of the covered merchandise 
is dispositive.

[FR Doc. 2014-30234 Filed 12-23-14; 8:45 am]
BILLING CODE 3510-DS-P