[Federal Register Volume 84, Number 247 (Thursday, December 26, 2019)]
[Notices]
[Pages 70934-70937]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27816]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-881, C-580-882]
Certain Cold-Rolled Steel Flat Products From the Republic of
Korea: Affirmative Final Determinations of Circumvention of the
Antidumping Duty and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports
of certain cold-rolled steel flat products (CRS), produced in the
Socialist Republic of Vietnam (Vietnam) using carbon hot-rolled steel
(HRS) manufactured in the Republic of Korea (Korea), are circumventing
the antidumping duty (AD) and countervailing duty (CVD) orders on CRS
from Korea.
DATES: Applicable December 26, 2019.
FOR FURTHER INFORMATION CONTACT: Tyler Weinhold or Fred Baker, AD/CVD
Operations, Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1121 or (202) 482-2924,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On July 10, 2019, Commerce published the Preliminary Determinations
\1\ of circumvention of the CRS Orders.\2\ A summary of the events that
occurred since Commerce published the Preliminary Determinations, as
well as a full discussion of the issues raised by parties for these
final determinations, may be found in the Issues and Decision
Memorandum.\3\ The Issues and Decision Memorandum is a public document
and is on file electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (ACCESS). ACCESS is available to registered users at http://access.trade.gov, and it is available to all parties in the Central
Records Unit, Room B8024 of the main Commerce building. In addition, a
complete version of the Issues and Decision Memorandum can be accessed
directly at http://enforcement.trade.gov/frn/. The signed and
electronic versions of the Issues and Decision Memorandum are identical
in content.
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\1\ Certain Cold-Rolled Steel Flat Products from the Republic of
Korea: Affirmative Preliminary Determination of Anti-Circumvention
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 84
FR 32875 (July 10, 2019) (Preliminary Determinations), and
accompanying Preliminary Decision Memorandum (Preliminary Decision
Memorandum).
\2\ See Certain Cold-Rolled Steel Flat Products from Brazil,
India, the Republic of Korea, and the United Kingdom: Amended Final
Affirmative Antidumping Determinations for Brazil and the United
Kingdom and Antidumping Duty Orders, 81 FR 64432 (September 20,
2016); see also Certain Cold-Rolled Steel Flat Products from Brazil,
India, and the Republic of Korea: Amended Final Affirmative
Countervailing Duty Determination and Countervailing Duty Order (the
Republic of Korea) and Countervailing Duty Orders (Brazil and
India), 81 FR 64436 (September 20, 2016) (collectively, CRS Orders).
\3\ See Memorandum, ``Issues and Decision Memorandum for Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing
Duty Orders on Certain Cold-Rolled Steel Flat Products from the
Republic of Korea,'' dated concurrently with, and hereby adopted by,
this notice (Issues and Decision Memorandum).
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Scope of the Orders
The products covered by these orders are certain cold-rolled (cold-
reduced), flat-rolled steel products, whether or not annealed, painted,
varnished, or coated with plastics or other non-metallic substances.
For a complete description of the scope of the orders, see the Issues
and Decision Memorandum.
Scope of the Anti-Circumvention Inquiries
These anti-circumvention inquiries cover CRS produced in Vietnam
using HRS substrate manufactured in Korea and subsequently exported
from Vietnam to the United States (merchandise under consideration).
These final rulings apply to all shipments of merchandise under
consideration entered on or after the date of the initiation of these
inquiries. Importers and exporters of CRS produced in Vietnam using HRS
manufactured in Vietnam or third countries, and who qualify to
participate in the certification process, must certify that the HRS
processed into CRS in Vietnam did not originate in Korea, as provided
for in the certifications attached to this Federal Register notice.
Otherwise, their merchandise may be subject to antidumping and
countervailing duties.
Methodology
Commerce is conducting these anti-circumvention inquiries in
accordance with section 781(b) of the Tariff Act of 1930, as amended
(the Act). Because Vietnam is a non-market economy country within the
meaning of section 771(18) of the Act, Commerce calculated the value of
certain processing and merchandise using factors of production and
market economy values, as discussed in section 773(c) of the Act.\4\
See Preliminary Decision Memorandum for a full description of the
methodology. We have continued to apply this methodology for our final
determination.
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\4\ See, e.g., Certain Oil Country Tubular Goods from the
Socialist Republic of Vietnam: Preliminary Results of Antidumping
Duty Administrative Review, 81 FR 71071 (October 14, 2016) and
accompanying Preliminary Decision Memorandum at 3, unchanged in
Certain Oil Country Tubular Goods from the Socialist Republic of
Vietnam: Final Results of Antidumping Duty Administrative Review;
2014-2015, 82 FR 18611 (April 20, 2017).
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
these inquiries are addressed in the Issues and Decision Memorandum. A
list of the issues raised is attached to this notice as Appendix I.
Final Affirmative Determinations of Circumvention
We determine that exports to the United States of CRS produced in
Vietnam from HRS substrate manufactured in Korea are circumventing the
CRS Orders. We therefore find it appropriate to determine that this
merchandise falls within the CRS Orders, and to instruct U.S. Customs
and Border Protection (CBP) to continue to suspend liquidation of any
entries of CRS from Vietnam produced using HRS substrate manufactured
in Korea.
[[Page 70935]]
Continuation of Suspension of Liquidation
As stated above, Commerce has made an affirmative determination of
circumvention of the CRS Orders by exports to the United States of CRS
produced in Vietnam using Korean-origin HRS substrate. This
circumvention finding applies to CRS produced by any Vietnamese company
using Korean-origin HRS substrate. In accordance with 19 CFR
351.225(l)(3), Commerce will direct CBP to continue to suspend
liquidation and to require a cash deposit of estimated duties on
unliquidated entries of CRS produced in Vietnam using Korean-origin HRS
substrate that were entered, or withdrawn from warehouse, for
consumption on or after August 2, 2018, the date of initiation of these
anti-circumvention inquiries.\5\
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\5\ See Certain Cold-Rolled Steel Flat Products from the
Republic of Korea: Initiation of Anti-Circumvention Inquiries on the
Antidumping Duty and Countervailing Duty Orders, 83 FR 37790 (August
2, 2018).
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The suspension of liquidation and cash deposit instructions will
remain in effect until further notice. In order to prevent evasion, and
because the AD and CVD rates established in the CRS China Circumvention
Final are higher than the rates established for CRS from Korea,
Commerce will instruct CBP to suspend liquidation and collect cash
deposits in the following manner.\6\ In the situation where no
certification regarding the origin of the substrate is maintained for
an entry, and AD/CVD orders from two countries (China or Korea)
potentially apply to that entry, Commerce intends to instruct CBP to
suspend the entry and collect cash deposits at the AD rate established
for the China-wide entity (199.76 percent) and the China CVD all-others
rate (256.44 percent), pursuant to the CRS China Circumvention Final.
In the situation where a certification is maintained for the AD/CVD
orders on CRS from China (stating that the merchandise was not produced
from HRS from China), but no other certification is maintained,
Commerce intends to instruct CBP to suspend the entry and collect cash
deposits at the AD and CVD all-others rates (i.e., 20.33 percent and
3.89 percent, respectively) applicable to the AD/CVD orders on CRS from
Korea.\7\
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\6\ See Certain Cold-Rolled Steel Flat Products from the
People's Republic of China: Affirmative Final Determination of
Circumvention of the Antidumping Duty and Countervailing Duty
Orders, 83 FR 23891 (May 23, 2018) (CRS China Circumvention Final).
\7\ See CRS Orders.
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CRS produced in Vietnam from HRS substrate that is not of Korean-
origin is not subject to these inquiries. Therefore, cash deposits are
not required for such merchandise. However, CRS produced in Vietnam
from HRS from China is subject to the AD/CVD orders on CRS from China.
If an importer imports CRS from Vietnam and claims that the CRS was
produced from non-Korean HRS substrate, in order not to be subject to
cash deposit requirements, the importer and exporter are required to
meet the certification and documentation requirements described in
Appendix II. Exporters of CRS produced in Vietnam from non-Korean
origin HRS substrate must prepare and maintain an Exporter
Certification and documentation supporting the Exporter Certification
(see Appendix IV). In addition, importers of such CRS must prepare and
maintain an Importer Certification (see Appendix III) as well as
documentation supporting the Importer Certification. In addition to the
Importer Certification, the importer must also maintain a copy of the
Exporter Certification (see Appendix IV) and relevant supporting
documentation from its exporter of CRS produced from non-Korean-origin
HRS substrate.
For these final determinations, we determine that the following
companies are not eligible for the certification process: 190 Steel
Pipe Co. Ltd., Central Vietnam Metal Corp., Hoa Phat Steel Pipe Co.,
POSCO E&C, POSCO SS Vina, POSCO VST, VSC--POSCO Steel Corporation,
Prima Commodities Co., Southern Steel Sheet Co., Ltd., Tan Thanh Quyen
Steel Co., Thai Nguyen Iron and Steel Corp., Thong Nhat Flat Steel, Van
Loi Co. Ltd., Vietnam Germany Steel JSC, Vietnam Steel Corp., Vietnam
Steel Pipe, Vina Kyoei Steel Ltd., Vinda Iron & Steel Co. Ltd., and
VNSTEEL--Phu My Flat Steel Co. Accordingly, importers of CRS from
Vietnam that is produced and/or exported by these ineligible companies
are similarly ineligible for the certification process with regard to
those imports. Additionally, exporters are not eligible to certify
shipments of merchandise produced by the above-listed companies.
Accordingly, Hoa Phat Group Joint Stock Company and Hoa Phat Steel
Sheet are not eligible to certify shipments of CRS produced by Hoa Phat
Steel Pipe Co.\8\
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\8\ See Issues and Decision Memorandum at Comment 11.
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Notification Regarding Administrative Protective Orders
This notice will serve as the only reminder to all parties subject
to administrative protective order (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 return/destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
Notification to Interested Parties
These determinations are issued and published in accordance with
section 781(b) of the Act and 19 CFR 351.225(f).
Dated: December 13, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Scope of the Anti-Circumvention Inquiries
V. Changes Since the Preliminary Determination
VI. Statutory Framework
VII. Statutory Analysis
VIII. Discussion of the Issues
Comment 1: Whether Companies That Did Not Receive Commerce's
Quantity and Value (Q&V) Questionnaire Should Be Permitted to
Participate in the Certification Process.
Comment 2: Whether Commerce Abused Its Discretion in Rejecting
the Q&V Questionnaire Responses of Certain Companies
Comment 3: Whether Commerce Should Not Apply AFA to SSSC
Comment 4: Whether Commerce Lacks Statutory Authority to Apply
AFA Where Respondents Did Not Deprive Commerce of Information
Regarding Its Ability to Trace Inputs.
Comment 5: Whether Commerce's Use of AFA Impermissibly Departs
Without Explanation from Its Decision in the China Anti-
Circumvention Inquiry
Comment 6: Whether Precluding Certain Importers and Exporters
from Participating in the Certification Process is Inappropriate and
Unfairly Punishes Importers
Comment 7: Whether Commerce Should Allow Additional Time for
Completing Certifications for Pre-Preliminary Determination Entries
Comment 8: Whether a Country-Wide Determination is Justified
Comment 9: Whether Commerce's Interpretation of Section 781(b)
of the Act Applies to the CRS Production Process in Vietnam and
Expands the Scope of the Orders
Comment 10: Whether Commerce Should Amend the Exporter
Certification Language to Prevent Funneling
[[Page 70936]]
Comment 11: Whether to Apply AFA to Certain Vietnamese Producers
That Are Affiliated with Those That Are Deemed Non-Responsive
Comment 12: Whether Commerce Should Preclude Companies that
Failed to Cooperate in Both the CRS from China and CRS from Korea
Inquiries from Participating in the Certification Regime
Comment 13: Whether to Apply the Highest of the Petition Rate or
Investigation Calculated Rate as the Cash Deposit Rate for Non-
Responsive Companies
Comment 14: Whether POSCO Vietnam's History Demonstrates that It
Cannot Be Viewed as Circumventing
Comment 15: Whether POSCO Vietnam's Operations Confirm that the
Process of Assembly or Completion Is Not Minor or Insignificant
Comment 16: Analysis of Patterns of Trade
Comment 17: Whether the Value Added in Vietnam Is Significant
Comment 18: Whether Commerce Should Rely on AFA to Value POSCO
Vietnam's Scrap Offset
Comment 19: Whether Commerce Should Account for POSCO Vietnam's
Failure to Disclose Corporate Affiliations in Its Final
Determination
IX. Recommendation
Appendix II
Certification Requirements
If an importer imports certain cold-rolled steel flat products
(CRS) from the Socialist Republic of Vietnam (Vietnam) and claims
that the CRS was not produced from hot-rolled steel substrate
(substrate) manufactured in Korea, the importer is required to
complete and maintain the importer certification attached hereto as
Appendix III and all supporting documentation. Where the importer
uses a broker to facilitate the entry process, it should obtain the
entry number from the broker. Agents of the importer, such as
brokers, however, are not permitted to make this certification on
behalf of the importer.
The exporter is required to complete and maintain the exporter
certification, attached as Appendix IV, and is further required to
provide the importer a copy of that certification and all supporting
documentation.
As discussed in the Issues and Decisions Memorandum, for these
final determinations, we are extending the period for completing
certifications for shipments and/or entries during the August 2,
2018 through July 18, 2019 period established in the Preliminary
Determinations. Accordingly, for shipments and/or entries on or
after August 2, 2018 through July 18, 2019 for which certifications
are required, importers and exporters should complete the required
certification within 30 days of the publication of these final
determinations notice in the Federal Register.
For companies that were not eligible to certify pursuant to the
Preliminary Determinations, but are now eligible pursuant to the
final determinations, we are also extending the period for
completion of their certifications for shipments and/or entries from
August 2, 2018 through the date of Federal Register publication of
the final determinations until 30 days after publication of these
determinations.
Accordingly, where appropriate, the relevant bullet in the
certification should be edited to reflect that the certification was
completed within the time frame specified above. For example, the
bullet in the importer certification that reads: ``This
certification was completed at or prior to the time of Entry,''
could be edited as follows: ``The imports referenced herein entered
before July 19, 2019. This certification was completed on mm/dd/
yyyy, within 30 days of the Federal Register notice publication of
the final determinations of circumvention.'' Similarly, the bullet
in the exporter certification that reads, ``This certification was
completed at or prior to the time of shipment,'' could be edited as
follows: ``The shipments/products referenced herein shipped before
July 19, 2019. This certification was completed on mm/dd/yyyy,
within 30 days of the Federal Register notice publication of the
final determinations of circumvention.'' For such entries/shipments,
importers and exporters each have the option to complete a blanket
certification covering multiple entries/shipments, individual
certifications for each entry/shipment, or a combination thereof.
For shipments and/or entries on or after the date of publication
of this notice in the Federal Register, for which certifications are
required, importers should complete the required certification at or
prior to the date of Entry and exporters should complete the
required certification and provide it to the importer at or prior to
the date of shipment.
For shipments and/or entries made on or after 10 days after the
date of publication of these final determinations, parties should
use the exporter and importer certifications contained below that
incorporate additional information that was not in the preliminary
determinations certifications. Specifically, the exporter
certification now requires identification of the producer of the
merchandise being exported to the United States, and also notes that
CVD deposits may be required in addition to AD deposits as a result
of the failure to maintain the required certification or the
inability to substantiate the claims made in the certification.
Similarly, the importer certification also notes that CVD deposits
may be required in addition to AD deposits as a result of the
failure to maintain the required certification or the inability to
substantiate the claims made in the certification. The importer and
Vietnamese exporter are also required to maintain sufficient
documentation supporting their certifications. The importer will not
be required to submit the certifications or supporting documentation
to U.S. Customs and Border Protection (CBP) as part of the entry
process at this time. However, the importer and the exporter will be
required to present the certifications and supporting documentation,
to Commerce and/or CBP, as applicable, upon request by the
respective agency. Additionally, the claims made in the
certifications and any supporting documentation are subject to
verification by Commerce and/or CBP. The importer and exporter are
required to maintain the certifications and supporting documentation
for the later of (1) a period of five years from the date of entry
or (2) a period of three years after the conclusion of any
litigation in United States courts regarding such entries.
In the situation where no certification is maintained for an
entry, and AD/CVD orders from two countries (China or Korea)
potentially apply to that entry, Commerce intends to instruct CBP to
suspend the entry and collect cash deposits at the CRS China
Circumvention Final rates (i.e., the AD rate established for the
China-wide entity (199.76 percent) and the CVD rate established for
China all-others rate (256.44 percent)).\9\ In the situation where a
certification is maintained for the AD/CVD orders on CRS from China
(stating that the merchandise was not produced from HRS from China),
but no other certification is provided, then Commerce intends to
instruct CBP to suspend the entry and collect cash deposits at the
AD and CVD all-others rates (i.e., 20.33 percent and 3.89 percent,
respectively) applicable to the AD/CVD orders on CRS from Korea.\10\
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\9\ See CRS China Circumvention Final.
\10\ See CRS Orders.
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Appendix III
Importer Certification
I hereby certify that:
My name is {INSERT COMPANY OFFICIAL'S NAME HERE{time}
and I am an official of {INSERT NAME OF IMPORTING COMPANY{time} ;
I have direct personal knowledge of the facts regarding
the importation into the Customs territory of the United States of
the cold-rolled steel flat products produced in Vietnam that entered
under entry number(s) {INSERT ENTRY NUMBER(S){time} and are covered
by this certification. ``Direct personal knowledge'' refers to facts
the certifying party is expected to have in its own records. For
example, the importer should have ``direct personal knowledge'' of
the importation of the product (e.g., the name of the exporter) in
its records;
I have personal knowledge of the facts regarding the
production of the imported products covered by this certification.
``Personal knowledge'' includes facts obtained from another party,
(e.g., correspondence received by the importer (or exporter) from
the producer regarding the source of the input used to produce the
imported products);
These cold-rolled steel flat products produced in
Vietnam do not contain hot-rolled steel substrate produced in Korea:
I understand that {INSERT NAME OF IMPORTING
COMPANY{time} is required to maintain a copy of this certification
and sufficient documentation supporting this certification (i.e.,
documents maintained in the normal course of business, or documents
obtained by the certifying party, for example, mill certificates,
productions records, invoices, etc.) for the later of (1) a period
of five years from the date of entry or (2) a period of three years
after the conclusion of
[[Page 70937]]
any litigation in the United States courts regarding such entries;
I understand that {INSERT NAME OF IMPORTING
COMPANY{time} is required to provide this certification and
supporting records, upon request, to U.S. Customs and Border
Protection (CBP) and/or the Department of Commerce (Commerce);
I understand that {INSERT NAME OF IMPORTING
COMPANY{time} is required to maintain a copy of the exporter's
certification for the later of (1) a period of five years from the
date of entry or (2) a period of three years after the conclusion of
any litigation in United States courts regarding such entries;
I understand that {INSERT NAME OF IMPORTING
COMPANY{time} is required to maintain and provide a copy of the
exporter's certification and supporting records, upon request, to
CBP and/or Commerce;
I understand that the claims made herein, and the
substantiating documentation, are subject to verification by CBP
and/or Commerce;
I understand that failure to maintain the required
certification and/or failure to substantiate the claims made herein
will result in:
[cir] Suspension of liquidation of all unliquidated entries (and
entries for which liquidation has not become final) for which these
requirements were not met and
[cir] the requirement that the importer post applicable
antidumping/countervailing duty (AD and/or CVD) cash deposits equal
to the rates as determined by Commerce;
I understand that agents of the importer, such as
brokers, are not permitted to make this certification;
This certification was completed at or prior to the
time of Entry; and
I am aware that U.S. law (including, but not limited
to, 18 U.S.C. 1001) imposes criminal sanctions on individuals who
knowingly and willfully make materially false statements to the U.S.
government.
Signature
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Name of Company Official
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Title
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Date
Appendix IV
Exporter Certification
I hereby certify that:
My name is {INSERT COMPANY OFFICIAL'S NAME HERE{time}
and I am an official of {INSERT NAME OF EXPORTING COMPANY{time} ;
I have direct personal knowledge of the facts regarding
the production and exportation of the cold-rolled steel flat
products that were sold to the United States under invoice number(s)
INSERT INVOICE NUMBER(S). ``Direct personal knowledge'' refers to
facts the certifying party is expected to have in its own books and
records. For example, an exporter should have ``direct personal
knowledge'' of the producer's identity and location.
The {MERCHANDISE{time} covered by this certification
was produced by {NAME OF PRODUCING COMPANY{time} , located at
{ADDRESS OF PRODUCING COMPANY{time} ; for each additional company,
repeat: {NAME OF PRODUCING COMPANY{time} , located at {ADDRESS OF
PRODUCING COMPANY{time} .
These cold-rolled steel flat products produced in
Vietnam do not contain hot-rolled steel substrate produced in Korea:
I understand that {INSERT NAME OF EXPORTING
COMPANY{time} is required to maintain a copy of this certification
and sufficient documentation supporting this certification (i.e.,
documents maintained in the normal course of business, or documents
obtained by the certifying party, for example, mill certificates,
productions records, invoices, etc.) for the later of (1) a period
of five years from the date of entry or (2) a period of three years
after the conclusion of any litigation in the United States courts
regarding such entries;
I understand that {INSERT NAME OF EXPORTING
COMPANY{time} must provide this Exporter Certification to the U.S.
importer by the time of shipment;
I understand that {INSERT NAME OF EXPORTING
COMPANY{time} is required to provide a copy of this certification
and supporting records, upon request, to U.S. Customs and Border
Protection (CBP) and/or the Department of Commerce (Commerce);
I understand that the claims made herein, and the
substantiating documentation are subject to verification by CBP and/
or Commerce;
I understand that failure to maintain the required
certification and/or failure to substantiate the claims made herein
will result in:
[cir] Suspension of all unliquidated entries (and entries for
which liquidation has not become final) for which these requirements
were not met and
[cir] the requirement that the importer post applicable
antidumping/countervailing duty (AD and/or CVD) cash deposits equal
to the rates as determined by Commerce;
This certification was completed at or prior to the
time of shipment; and
I am aware that U.S. law (including, but not limited
to, 18 U.S.C. 1001) imposes criminal sanctions on individuals who
knowingly and willfully make materially false statements to the U.S.
government.
Signature
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Name of Company Official
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Title
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Date
[FR Doc. 2019-27816 Filed 12-23-19; 8:45 am]
BILLING CODE 3510-DS-P