[Federal Register Volume 85, Number 20 (Thursday, January 30, 2020)]
[Notices]
[Pages 5373-5376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01718]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-122-864]
Certain Fabricated Structural Steel From Canada: Final
Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that certain
fabricated structural steel (fabricated structural steel) from Canada
is being, or is likely to be, sold in the United States at less than
fair value (LTFV). The period of investigation (POI) is January 1, 2018
through December 31, 2018. The final dumping margins of sales at LTFV
are listed below in the ``Final Determination'' section of this notice.
DATES: Applicable January 30, 2020.
FOR FURTHER INFORMATION CONTACT: David Goldberger or Ajay Menon, AD/CVD
Operations, Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4136 or (202) 482-1993,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 10, 2019, Commerce published the Preliminary
Determination of sales at LTFV of fabricated structural steel from
Canada, in which we also postponed the final determination to January
23, 2020.\1\ The petitioner in this investigation is the American
Institute of Steel Construction Full Member Subgroup. The mandatory
respondents in this investigation are Les Constructions Beauce-Atlas,
Inc. (Beauce-Atlas) and Canatal Industries, Inc. (Canatal).
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\1\ See Certain Fabricated Structural Steel from Canada:
Preliminary Negative Determination of Sales at Less Than Fair Value
and Postponement of Final Determination, 84 FR 47481 (September 10,
2019) (Preliminary Determination), and accompanying Preliminary
Decision Memorandum.
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, are discussed in the
Issues and Decision Memorandum, which is hereby adopted by this
notice.\2\ 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 https://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/index.html. The signed and electronic
versions of the Issues and Decision Memorandum are identical in
content.
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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Certain Fabricated Structural Steel from Canada,''
dated concurrently with this notice (Issues and Decision
Memorandum).
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Scope of the Investigation
The product covered by this investigation is fabricated structural
steel from Canada. For a complete description of the scope of the
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\3\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\4\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce addressed these comments in the
Preliminary Determination, wherein Commerce preliminarily modified the
scope language.
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\3\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\4\ See Certain Fabricated Structural Steel from Canada, Mexico,
and the People's Republic of China: Initiation of Less-Than-Fair-
Value Investigations, 84 FR 7330 (March 4, 2019) (Initiation
Notice).
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In addition, certain interested parties commented on Commerce's
preliminary scope decisions. For a summary of the product coverage
comments and rebuttal comments submitted to the record for this final
determination, and accompanying discussion and analysis of all comments
timely received, see the Final Scope Decision Memorandum.\5\ Based on
the comments received, Commerce is modifying the scope language as it
appeared in the Preliminary Determination. See the revised scope in
Appendix I to this notice.
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\5\ See Memorandum, ``Fabricated Structural Steel from Canada,
Mexico, and the People's Republic of China: Final Scope Decision
Memorandum,'' dated concurrently with, and hereby adopted by, this
notice (Final Scope Decision Memorandum).
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are addressed in the Issues
[[Page 5374]]
and Decision Memorandum. A list of the issues raised is attached to
this notice as Appendix II.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), in September and October 2019, we conducted verifications of
the sales and cost information submitted by Beauce-Atlas and Canatal
for use in our final determination. We used standard verification
procedures, including an examination of relevant accounting and
production records, and original source documents provided by Beauce-
Atlas and Canatal.\6\
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\6\ For discussion of our verification findings, see the
following memoranda: Memorandum, ``Verification of the Sales
Responses of Les Constructions Beauce-Atlas,'' dated October 18,
2019; Memorandum, ``Verification of the Sales Responses of Canatal
Industries, Inc.,'' dated October 22, 2019; Memorandum,
``Verification of Canatal Steel USA Inc.,'' dated November 4, 2019;
Memorandum, ``Verification of the Cost Response of Industries
Canatal, Inc. in the Antidumping Duty Investigation of Fabricated
Structural Steel from Canada,'' dated November 5, 2019; and
Memorandum, ``Verification of the Cost Response of Les Constructions
Beauce-Atlas, Inc. in the Antidumping Duty Investigation of
Fabricated Structural Steel from Canada,'' dated November 5, 2019.
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Changes Since the Preliminary Determination
Based on our analysis of the comments received and our findings at
verification, we made certain changes to the margin calculations for
Beauce-Atlas and Canatal. For a discussion of these changes, see the
Issues and Decision Memorandum and the Final Calculation Memoranda.\7\
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\7\ See Memoranda, ``Final Determination Margin Calculation for
Beauce-Atlas;'' ``Cost of Production and Constructed Value
Calculation Adjustments for the Final Determination--Beauce-Atlas;''
``Final Determination Margin Calculation for Canatal;'' and ``Cost
of Production and Constructed Value Calculation Adjustments for the
Final Determination--Industries Canatal Inc.,'' dated concurrently
with this notice (collectively Final Calculation Memoranda).
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In addition, we revised the margin calculation for Canatal to
reflect the application of partial facts available with an adverse
inference pursuant to section 776 of the Act. For a discussion of this
change, see Comment 11 of the Issues and Decision Memorandum.
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 margins determined entirely under section 776 of
the Act. Beauce-Atlas is the only respondent for which Commerce
calculated an estimated weighted-average dumping margin that is not
zero, de minimis, or based entirely on facts otherwise available.
Therefore, for purposes of determining the all-others rate, pursuant to
section 735(c)(5)(A) of the Act, we are using the estimated weighted-
average dumping margin calculated for Beauce-Atlas, as referenced in
the ``Final Determination'' section below.
Final Determination
The final estimated weighted-average dumping margins are as
follows:
------------------------------------------------------------------------
Estimated
weighted-
average Cash deposit
Exporter/manufacturer dumping rate 8
margin
(percent)
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Les Constructions Beauce-Atlas, Inc..... 6.70 6.70
Canatal Industries, Inc................. 0.00 0.00
All-Others.............................. 6.70 6.70
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Disclosure
Commerce intends to disclose the calculations performed in
connection with this final determination within five days of the date
of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
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\8\ Because Commerce is making a negative determination in the
companion CVD investigation of fabricated structural steel from
Canada, we are not adjusting the cash deposit rate for export
subsidies. See section 772(c)(1)(C) of the Act.
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Suspension of Liquidation
In accordance with section 735(c)(1)(B) and (C) of the Act,
Commerce will instruct U.S. Customs and Border Protection (CBP) to
suspend liquidation of all appropriate entries of fabricated structural
steel from Canada, as described in Appendix I of this notice, which
were entered, or withdrawn from warehouse, for consumption on or after
the date of publication of this notice in the Federal Register, other
than entries of fabricated structural steel produced and exported by
Canatal, because its rate is zero.
Pursuant to section 735(c)(1)(B)(ii) of the Act, we will instruct
CBP to require a cash deposit for such entries of merchandise equal to
the estimated weighted-average dumping margin as follows: (1) The cash
deposit rate for the respondents listed above will be equal to the
respondent-specific estimated weighted-average dumping margin
determined in this final determination; (2) if the exporter is not a
respondent identified above but the producer is, then the cash deposit
rate will be equal to the respondent-specific estimated weighted-
average dumping margin established for that producer of the subject
merchandise; and (3) the cash deposit rate for all other producers and
exporters will be equal to the all-others estimated weighted-average
dumping margin. These suspension of liquidation instructions will
remain in effect until further notice.
International Trade Commission (ITC) Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of the final affirmative determination of sales at LTFV. Because
the final determination in this proceeding is affirmative, in
accordance with section 735(b)(3) of the Act, the ITC will make its
final determination as to whether the domestic industry in the United
States is materially injured, or threatened with material injury, by
reason of imports of fabricated structural steel from Canada no later
than 75 days after our final determination. If the ITC determines that
material injury or threat of material injury does not exist, this
proceeding will be terminated and all cash deposits will be refunded.
If the ITC determines that such injury does exist, Commerce will issue
an antidumping duty order directing CBP to assess, upon further
instruction by Commerce, antidumping
[[Page 5375]]
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, as discussed above in the ``Suspension of
Liquidation'' section.
Notification Regarding Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the 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/
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 which is subject to sanction.
Notification to Interested Parties
This determination and this notice are issued and published
pursuant to sections 735(d) and 777(i)(1) of the Act and 19 CFR
351.210(c).
Dated: January 23, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by the investigation is carbon and alloy
fabricated structural steel. Fabricated structural steel is made
from steel in which: (1) Iron predominates, by weight, over each of
the other contained elements; and (2) the carbon content is two
percent or less by weight. Fabricated structural steel products are
steel products that have been fabricated for erection or assembly
into structures, including, but not limited to, buildings
(commercial, office, institutional, and multi-family residential);
industrial and utility projects; parking decks; arenas and
convention centers; medical facilities; and ports, transportation
and infrastructure facilities. Fabricated structural steel is
manufactured from carbon and alloy (including stainless) steel
products such as angles, columns, beams, girders, plates, flange
shapes (including manufactured structural shapes utilizing welded
plates as a substitute for rolled wide flange sections), channels,
hollow structural section (HSS) shapes, base plates, and plate-work
components. Fabrication includes, but is not limited to cutting,
drilling, welding, joining, bolting, bending, punching, pressure
fitting, molding, grooving, adhesion, beveling, and riveting and may
include items such as fasteners, nuts, bolts, rivets, screws,
hinges, or joints.
The inclusion, attachment, joining, or assembly of non-steel
components with fabricated structural steel does not remove the
fabricated structural steel from the scope.
Fabricated structural steel is covered by the scope of the
investigation regardless of whether it is painted, varnished, or
coated with plastics or other metallic or non-metallic substances
and regardless of whether it is assembled or partially assembled,
such as into modules, modularized construction units, or sub-
assemblies of fabricated structural steel.
Subject merchandise includes fabricated structural steel that
has been assembled or further processed in the subject country or a
third country, including but not limited to painting, varnishing,
trimming, cutting, drilling, welding, joining, bolting, punching,
bending, beveling, riveting, galvanizing, coating, 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 fabricated structural steel.
All products that meet the written physical description of the
merchandise covered by the investigation are within the scope of the
investigation unless specifically excluded or covered by the scope
of an existing antidumping duty order.
Specifically excluded from the scope of the investigation are:
1. Fabricated steel concrete reinforcing bar (rebar) if: (i) It
is a unitary piece of fabricated rebar, not joined, welded, or
otherwise connected with any other steel product or part; or (ii) it
is joined, welded, or otherwise connected only to other rebar.
2. Fabricated structural steel for bridges and bridge sections
that meets American Association of State and Highway and
Transportation Officials (AASHTO) bridge construction requirements
or any state or local derivatives of the AASHTO bridge construction
requirements.
3. Pre-engineered metal building systems, which are defined as
complete metal buildings that integrate steel framing, roofing and
walls to form one, pre-engineered building system, that meet Metal
Building Manufacturers Association guide specifications. Pre-
engineered metal building systems are typically limited in height to
no more than 60 feet or two stories.
4. Steel roof and floor decking systems that meet Steel Deck
Institute standards.
5. Open web steel bar joists and joist girders that meet Steel
Joist Institute specifications.
6. Also excluded from the scope of the investigation is
scaffolding, and parts and accessories thereof, that comply with
ANSI/ASSE A10.8-2011--Scaffolding Safety Requirements, and/or
Occupational Safety and Health Administration regulations at 29 CFR
part 1926 subpart L--Scaffolds. The outside diameter of the scaffold
tubing covered by this exclusion ranges from 25mm to 150mm.
7. Excluded from the scope of the investigation are access
flooring systems panels and accessories, where such panels have a
total thickness ranging from 0.75 inches to 1.75 inches and consist
of concrete, wood, other non-steel materials, or hollow space
permanently attached to a top and bottom layer of galvanized or
painted steel sheet or formed coil steel, the whole of which has
been formed into a square or rectangle having a measurement of 24
inches on each side +/- 0.1 inch; 24 inches by 30 inches +/- 0.1
inch; or 24 by 36 inches +/- 0.1 inch.
8. Excluded from the investigation are the following types of
steel poles, segments of steel poles, and steel components of those
poles:
Steel Electric Transmission Poles, or segments of such
poles, that meet (1) the American Society of Civil Engineers
(ASCE)--Design of Steel Transmission Pole Structures, ASCE/SEI 48 or
(2) the USDA RUS bulletin 1724E-214 Guide specification for standard
class Steel Transmission Poles. The exclusion for steel electric
transmission poles also encompasses the following components
thereof: Transmission arms which attach to poles; pole bases; angles
that do not exceed 8'' x 8'' x 0.75''; steel vangs, steel brackets,
steel flanges, and steel caps; safety climbing cables; ladders; and
steel templates.
Steel Electric Substation Poles, or segments of such
poles, that meet the American Society of Civil Engineers (ASCE)--
Manuals and Reports on Engineering Practice No. 113. The exclusion
for steel electric substation poles also encompasses the following
components thereof: Substation dead end poles; substation bus
stands; substation mast poles, arms, and cross-arms; steel brackets,
steel flanges, and steel caps; pole bases; safety climbing cables;
ladders; and steel templates.
Steel Electric Distribution Poles, or segments of such
poles, that meet (1) American Society of Civil Engineers (ASCE)--
Design of Steel Transmission Pole Structures, ASCE/SEI 48, (2) USDA
RUS bulletin 1724E-204 Guide specification for steel single pole and
H-frame structures, or (3) ANSI 05.1 height and class requirements
for steel poles. The exclusion for steel electric distribution poles
also encompasses the following components thereof: Distribution arms
and cross-arms; pole bases; angles that do not exceed 8'' x 8'' x
0.75''; steel vangs, steel brackets, steel flanges, and steel caps;
safety climbing cables; ladders; and steel templates.
Steel Traffic Signal Poles, Steel Roadway Lighting
Poles, Steel Parking Lot Lighting Poles, and Steel Sports Lighting
Poles, or segments of such poles, that meet (1) the American
Association of State Highway and Transportation Officials (AASHTO)--
Specifications for Structural Supports for Highway Signs,
Luminaires, and Traffic Signals, (2) any state or local derivatives
of the AASHTO highway sign, luminaries, and traffic signals
requirements, or (3) American National Standard Institute (ANSI)
C136--American National Standard for Roadway and Area Lighting
Equipment standards. The exclusion for steel traffic signal poles,
steel roadway lighting poles, steel parking lot lighting poles, and
steel sports lighting poles also encompasses the following
components thereof: Luminaire arms; hand hole rims; hand hole
covers; base plates that connect to either the shaft or the arms;
mast arm clamps; mast arm tie rods; transformer base boxes; formed
full base covers that hide anchor bolts; step lugs; internal cable
guides;
[[Page 5376]]
lighting cross arms; lighting service platforms; angles that do not
exceed 8'' x 8'' x 0.75''; stainless steel hand hole door hinges and
wind restraints; steel brackets, steel flanges, and steel caps;
safety climbing cables; ladders; and steel templates.
Communication Poles, or segments of such poles, that
meet (1) Telecommunications Industry Association (TIA) ANSI/TIA-222
Structural Standards for Steel Antenna Towers and Antenna Supporting
Structures, or (2) American Association of State Highway and
Transportation Officials (AASHTO)--Specifications for Structural
Supports for Highway Signs, Luminaires, and Traffic Signals. The
exclusion for communication poles also encompasses the following
components thereof: Luminaire arms; hand hole rims; hand hole
covers; base plate that connects the pole to the foundation or arm
to the pole; safety climbing cables; ladders; service ground
platforms; step lugs; pole steps; steel brackets, steel flanges, and
steel caps; angles that do not exceed 8'' x 8'' x 0.75''; coax, and
safety brackets; subcomponent kits for antenna mounts weighing 80
lbs. or less; service platforms; ice bridges; stainless steel hand
hole door hinges and wind restraints; and steel templates.
OEM Round or Polygonal Tapered Steel Poles, segments or
shaft components of such poles, that meet the (1) ASCE 48 or AASHTO,
(2) ANSI/TIA 222, (3) ANSI 05.1, (4) RUS bulletin 1724E-204, or (5)
RUS bulletin 1724E-214. The exclusion for OEM round or polygonal
tapered steel poles also encompasses the following components
thereof: Subcomponent kits for antenna mounts weighing 80 lbs. or
less; mounts and platforms; steel brackets, steel flanges, and steel
caps; angles that do not exceed 8'' x 8'' x 0.75''; bridge kits;
safety climbing cables; ladders; and steel templates.
The inclusion or attachment of one or more of the above-
referenced steel poles in a structure containing fabricated
structural steel does not remove the fabricated structural steel
from the scope of the investigation. No language included in this
exclusion should be read or understood to have applicability to any
other aspect of this scope or to have applicability to or to exclude
any product, part, or component other than those specifically
identified in the exclusion.
9. Also excluded from the scope of the investigation are
Shuttering, Formworks, Propping and Shoring and parts and
accessories thereof that comply with ANSI/ASSE A10.9--Safety
Requirements for Concrete and Masonry Work and ACI-347--Recommended
Practice for Concrete Formwork. For Shoring and propping made from
tube, the outside diameter of the tubing covered by this exclusion
ranges from 48mm to 250mm. For Shuttering and Formworks, the panel
sizes covered by this exclusion range from 25mm x 600mm to 3000mm x
3000mm.
10. Also excluded from the scope of the investigation are
consumer items for do-it-yourself assembly that are prepackaged for
retail sale. For the purposes of this exclusion, prepackaged for
retail sale means that, at the time of importation, all components
necessary to assemble the merchandise, including all steel
components, all accessory parts (e.g., screws, bolts, washers,
nails), and instructions providing guidance on the assembly of the
finished merchandise or directions on where to find such
instructions, are enclosed in retail packaging, such that an end-
use, retail consumer could assemble the completed product with no
additional components. The items may enter the United States in one
or in multiple retail packages as long as all of the components are
imported together.
The products subject to the investigation are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under subheadings: 7308.90.3000, 7308.90.6000, and
7308.90.9590.
The products subject to the investigation may also enter under
the following HTSUS subheadings: 7216.91.0010, 7216.91.0090,
7216.99.0010, 7216.99.0090, 7222.40.6000, 7228.70.6000,
7301.10.0000, 7301.20.1000, 7301.20.5000, 7308.40.0000,
7308.90.9530, and 9406.90.0030.
The HTSUS subheadings above are provided for convenience and
customs purposes only. The written description of the scope of the
investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Changes Since the Preliminary Determination
VI. Analysis of Comments
General
Comment 1: Whether There Was Sufficient Industry Support To
Initiate This Investigation
Comment 2: Calculation of U.S. Price
Comment 3: Revisions to the Fabricated Structural Steel Ratio
Comment 4: Whether To Deduct Use Taxes From U.S. Price
Beauce-Atlas
Comment 5: Beauce-Atlas' Reporting of the Substantial Completion
Date for Certain Projects
Comment 6: Collapsing Beauce-Atlas' Affiliate, Les Dessins de
Structures Steltec
Comment 7: Whether Commerce Double Counted a Billing Adjustment
in the Preliminary Determination
Comment 8: Adjusting Revenue for One Home Market Project With a
Delayed Payment
Comment 9: Calculating General and Administrative Expenses and
Interest Expenses Based on the Revised Cost of Manufacturing
Canatal
Comment 10: Treatment of All of Canatal's U.S. Sales as
Constructed Export Price Sales
Comment 11: Canatal's Further Manufacturing Costs for a
Constructed Export Price Sale
Comment 12: Whether One U.S. Project is In-Scope Merchandise
Comment 13: Revisions to Canatal's Data Based on Commerce's
Verification Findings
Comment 14: Calculation of Constructed Value Selling Expenses
and Profit
VII. Recommendation
[FR Doc. 2020-01718 Filed 1-29-20; 8:45 am]
BILLING CODE 3510-DS-P