Notice2023-13522
Tin Mill Products From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Final Antidumping Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 26, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of tin mill product from the People's Republic of China (China). The period of investigation is January 1, 2022, through December 31, 2022. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 88 Issue 121 (Monday, June 26, 2023)</title>
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[Federal Register Volume 88, Number 121 (Monday, June 26, 2023)]
[Notices]
[Pages 41373-41376]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-13522]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-151]
Tin Mill Products From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination, and
Alignment of Final Determination With Final Antidumping Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of tin mill product from the People's Republic
of China (China). The period of investigation is January 1, 2022,
through December 31, 2022. Interested parties are invited to comment on
this preliminary determination.
DATES: Applicable June 26, 2023.
FOR FURTHER INFORMATION CONTACT: Genevieve Coen or Melissa Porpotage,
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) 482-3251 or (202)
482-1413, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on February
14, 2023.\1\ On March 24, 2023, Commerce postponed the preliminary
determination of this investigation until June 20, 2023.\2\
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\1\ See Tin Mill Products from the People's Republic of China:
Initiation of Countervailing Duty Investigation, 88 FR 9476
(February 14, 2023) (Initiation Notice).
\2\ See Tin Mill Products from the People's Republic of China:
Postponement of Preliminary Determination in the Countervailing Duty
Investigation, 88 FR 17807 (March 24, 2023).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics
[[Page 41374]]
discussed in the Preliminary Decision Memorandum is included as
Appendix II to this notice. The Preliminary 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
<a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Tin Mill
Products from the People's Republic of China,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum).
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Scope of the Investigation
The products covered by this investigation are tin mill products
from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the antidumping
duty (AD) and countervailing duty (CVD) investigation on or before the
preliminary determination of the companion AD investigations.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\6\
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available, and, because it finds that one or more respondents
did not act to the best of their ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\7\
For further information, see the ``Use of Facts Otherwise Available and
Adverse Inferences'' section in the Preliminary Decision Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final CVD determination in this investigation with the
final determination in the companion AD investigation of tin mill
products from China based on a request made by Cleveland-Cliffs Inc.
and the United Steel, Paper and Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service Workers International Union
(collectively, the petitioners).\8\ Consequently, the final CVD
determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
October 30, 2023, unless postponed.
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\8\ See Petitioners' Letter, ``Petitioners' Request to Align
Countervailing Duty Investigation Final Determination with
Antidumping Duty Investigation Final Determination,'' dated May 24,
2023.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce preliminarily assigned a rate based
entirely on facts available to Baoshan Iron & Steel Co. Ltd. Therefore,
the only rate that is not zero, de minimis, or based entirely on facts
otherwise available is the rate calculated for Shougang Jingtang United
Iron & Steel Co., Ltd. (Jingtang Iron). Consequently, the rate
calculated for Jingtang Iron is also assigned as the rate for all other
producers and exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Baoshan Iron & Steel Co., Ltd............................. 542.55
Shougang Jingtang United Iron & Steel Co., Ltd \9\........ 89.02
All Others................................................ 89.02
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Suspension of Liquidation
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\9\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Jingtang Iron: Shougang Group Co., Ltd.; Shougang Casey Steel Co.,
Ltd.; Beijing Shougang Co., Ltd.; Beijing Shougang Steel Trade
Management Co., Ltd.; Beijing Shougang Machinery & Electric Co.,
Ltd.; Beijing Shougang Gas Co., Ltd.; Qinhuangdao Shougang Machinery
Co., Ltd.; Beijing Shoujian Equipment Maintenance Co., Ltd.; Beijing
Shougang Lujiashan Limestone Mine Co., Ltd.; Hebei Shoulang New
Energy Technology Co., Ltd.; Tangshan Caofeidian Industrial Zone
Shouhanxin Industry Co., Ltd.; and China Shougang International
Trade & Engineering Corporation.
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In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
A timeline for the submission of case briefs and written comments
will be notified to interested parties at a later date. Rebuttal
briefs, limited to issues raised in case briefs, may be submitted no
later than five days after the deadline date for case briefs after the
deadline date for case briefs.\10\ Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\11\ Pursuant to
19 CFR
[[Page 41375]]
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal
briefs in this investigation are encouraged to submit with each
argument: (1) a statement of the issue; (2) a brief summary of the
argument; and (3) a table of authorities.
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\10\ See 19 CFR 351.309(d); see also 19 CFR 351.303 (for general
filing requirements).
\11\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a date, time, and location to
be determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final determination is affirmative, the ITC will determine before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: June 20, 2023.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations.
Appendix I
Scope of the Investigation
The products within the scope of this investigation are tin mill
flat-rolled products that are coated or plated with tin, chromium,
or chromium oxides. Flat-rolled steel products coated with tin are
known as tinplate. Flat-rolled steel products coated with chromium
or chromium oxides are known as tin-free steel or electrolytic
chromium-coated steel. The scope includes all the noted tin mill
products regardless of thickness, width, form (in coils or cut
sheets), coating type (electrolytic or otherwise), edge (trimmed,
untrimmed or further processed, such as scroll cut), coating
thickness, surface finish, temper, coating metal (tin, chromium,
chromium oxide), reduction (single- or double-reduced), and whether
or not coated with a plastic material.
All products that meet the written physical description are
within the scope of this investigation unless specifically excluded.
The following products are outside and/or specifically excluded from
the scope of this investigation:
<bullet> Single reduced electrolytically chromium coated steel
with a thickness 0.238 mm (85 pound base box) (<plus-minus>10%) or
0.251 mm (90 pound base box) (<plus-minus>10%) or 0.255 mm (<plus-
minus>10%) with 770 mm (minimum width) (<plus-minus> 1.588 mm) by
900 mm (maximum length if sheared) sheet size or 30.6875 inches
(minimum width) (<plus-minus>\1/16\ inch) and 35.4 inches (maximum
length if sheared) sheet size; with type MR or higher (per ASTM)
A623 steel chemistry; batch annealed at T2 \1/2\ anneal temper, with
a yield strength of 31 to 42 kpsi (214 to 290 Mpa); with a tensile
strength of 43 to 58 kpsi (296 to 400 Mpa); with a chrome coating
restricted to 32 to 150 mg/m\2\; with a chrome oxide coating
restricted to 6 to 25 mg/m\2\ with a modified 7B ground roll finish
or blasted roll finish; with roughness average (Ra) 0.10 to 0.35
micrometers, measured with a stylus instrument with a stylus radius
of 2 to 5 microns, a trace length of 5.6 mm, and a cut-off of 0.8
mm, and the measurement traces shall be made perpendicular to the
rolling direction; with an oil level of 0.17 to 0.37 grams/base box
as type BSO, or 2.5 to 5.5 mg/m\2\ as type DOS, or 3.5 to 6.5 mg/
m\2\ as type ATBC; with electrical conductivity of static probe
voltage drop of 0.46 volts drop maximum, and with electrical
conductivity degradation to 0.70 volts drop maximum after stoving
(heating to 400 degrees F for 100 minutes followed by a cool to room
temperature).
<bullet> Single reduced electrolytically chromium- or tin-coated
steel in the gauges of 0.0040 inch nominal, 0.0045 inch nominal,
0.0050 inch nominal, 0.0061 inch nominal (55 pound base box weight),
0.0066 inch nominal (60 pound base box weight), and 0.0072 inch
nominal (65 pound base box weight), regardless of width, temper,
finish, coating or other properties.
<bullet> Single reduced electrolytically chromium coated steel
in the gauge of 0.024 inch, with widths of 27.0 inches or 31.5
inches, and with T-1 temper properties.
<bullet> Single reduced electrolytically chromium coated steel,
with a chemical composition of 0.005% max carbon, 0.030% max
silicon, 0.25% max manganese, 0.025% max phosphorous, 0.025% max
sulfur 0.070% max aluminum, and the balance iron, with a metallic
chromium layer of 70-130 mg/m\2\, with a chromium oxide layer of 5-
30 mg/m\2\, with a tensile strength of 260-440 N/mm\2\, with an
elongation of 28-48%, with a hardness (HR-30T) of 40-58, with a
surface roughness of 0.5-1.5 microns Ra, with magnetic properties of
Bm (kg) 10.0 minimum, Br (kg) 8.0 minimum, Hc (Oe) 2.5-3.8, and MU
1400 minimum, as measured with a Riken Denshi DC magnetic
characteristic measuring machine, Model BHU-60.
<bullet> Bright finish tin-coated sheet with a thickness equal
to or exceeding 0.0299 inch, coated to thickness of \3/4\ pound
(0.000045 inch) and 1 pound (0.00006 inch).
<bullet> Electrolytically chromium coated steel having ultra
flat shape defined as oil can maximum depth of \5/64\ inch (2.0 mm)
and edge wave maximum of \5/64\ inch (2.0 mm) and no wave to
penetrate more than 2.0 inches (51.0 mm) from the strip edge and
coilset or curling requirements of average maximum of \5/64\ inch
(2.0 mm) (based on six readings, three across each cut edge of a 24
inches (61 cm) long sample with no single reading exceeding \4/32\
inch(3.2 mm) and no more than two readings at \4/32\ inch (3.2 mm))
and (for 85 pound base box item only: crossbuckle maximums of 0.001
inch (0.0025 mm) average having no reading above 0.005 inch (0.127
mm)), with a camber maximum of \1/4\ inch (6.3 mm) per 20 feet (6.1
meters), capable of being bent 120 degrees on a 0.002 inch radius
without cracking, with a chromium coating weight of metallic
chromium at 100 mg/m\2\ and chromium oxide of 10 mg/m\2\, with a
chemistry of 0.13% maximum carbon, 0.60% maximum manganese, 0.15%
maximum silicon, 0.20% maximum copper, 0.04% maximum phosphorous,
0.05% maximum sulfur, and 0.20% maximum aluminum, with a surface
finish of Stone Finish 7C, with a DOS-A oil at an aim level of 2 mg/
square meter, with not more than 15 inclusions/foreign matter in 15
feet (4.6 meters) (with inclusions not to exceed \1/32\ inch (0.8
mm) in width and \3/64\ inch (1.2 mm) in length), with thickness/
temper combinations of either 60 pound base box (0.0066 inch) double
reduced CADR8 temper in widths of 25.00 inches, 27.00 inches, 27.50
inches, 28.00 inches, 28.25 inches, 28.50 inches, 29.50 inches,
29.75 inches, 30.25 inches, 31.00 inches, 32.75 inches, 33.75
inches, 35.75 inches, 36.25 inches, 39.00 inches, or 43.00 inches,
or 85 pound base box (0.0094 inch) single reduced CAT4 temper in
widths of 25.00 inches, 27.00 inches, 28.00 inches, 30.00 inches,
33.00 inches, 33.75 inches, 35.75 inches, 36.25 inches, or 43.00
inches, with width tolerance of \1/8\ inch, with a thickness
tolerance of 0.0005 inch, with a maximum coil weight of 20,000
pounds (9071.0 kg), with a minimum coil weight of 18,000 pounds
(8164.8 kg), with a coil inside diameter of 16 inches (40.64 cm)
with a steel core, with a coil maximum outside diameter of 59.5
inches (151.13 cm), with a maximum of one weld (identified with a
paper flag) per coil, with a surface free of scratches, holes, and
rust.
<bullet> Electrolytically tin coated steel having differential
coating with 1.00 pound/base box equivalent on the heavy side, with
varied coating equivalents in the lighter side (detailed below),
with a continuous cast steel chemistry of type MR, with a surface
finish of type 7B or 7C, with a surface passivation of 0.7 mg/square
foot of chromium applied as a cathodic dichromate treatment, with
coil form having restricted oil film weights of 0.3-0.4 grams/base
box of type DOS-A oil, coil inside diameter ranging from 15.5 to 17
inches, coil outside diameter of a maximum 64 inches, with a maximum
coil weight of 25,000 pounds, and with temper/coating/dimension
combinations of: (1) CAT4 temper, 1.00/.050 pound/base box coating,
70 pound/base box (0.0077 inch) thickness, and 33.1875 inch ordered
width; or (2) CAT5 temper, 1.00/0.50 pound/base box coating, 75
pound/base box (0.0082 inch) thickness, and
[[Page 41376]]
34.9375 inch or 34.1875 inch ordered width; or (3) CAT5 temper,
1.00/0.50 pound/base box coating, 107 pound/base box (0.0118 inch)
thickness, and 30.5625 inch or 35.5625 inch ordered width; or (4)
CADR8 temper, 1.00/0.50 pound/base box coating, 85 pound/base box
(0.0093 inch) thickness, and 35.5625 inch ordered width; or (5)
CADR8 temper, 1.00/0.25 pound/base box coating, 60 pound/base box
(0.0066 inch) thickness, and 35.9375 inch ordered width; or (6)
CADR8 temper, 1.00/0.25 pound/base box coating, 70 pound/base box
(0.0077 inch) thickness, and 32.9375 inch, 33.125 inch, or 35.1875
inch ordered width.
<bullet> Electrolytically tin coated steel having differential
coating with 1.00 pound/base box equivalent on the heavy side, with
varied coating equivalents on the lighter side (detailed below),
with a continuous cast steel chemistry of type MR, with a surface
finish of type 7B or 7C, with a surface passivation of 0.5 mg/square
foot of chromium applied as a cathodic dichromate treatment, with
ultra flat scroll cut sheet form, with CAT5 temper with 1.00/0.10
pound/base box coating, with a lithograph logo printed in a uniform
pattern on the 0.10 pound coating side with a clear protective coat,
with both sides waxed to a level of 15-20 mg/216 sq. in., with
ordered dimension combinations of (1) 75 pound/base box (0.0082
inch) thickness and 34.9375 inch x 31.748 inch scroll cut
dimensions; or (2) 75 pound/base box (0.0082 inch) thickness and
34.1875 inch x 29.076 inch scroll cut dimensions; or (3) 107 pound/
base box (0.0118 inch) thickness and 30.5625 inch x 34.125 inch
scroll cut dimension.
<bullet> Tin-free steel coated with a metallic chromium layer
between 100-200 mg/m\2\ and a chromium oxide layer between 5-30 mg/
m\2\; chemical composition of 0.05% maximum carbon, 0.03% maximum
silicon, 0.60% maximum manganese, 0.02% maximum phosphorous, and
0.02% maximum sulfur; magnetic flux density (Br) of 10 kg minimum
and a coercive force (Hc) of 3.8 Oe minimum.
<bullet> Tin-free steel laminated on one or both sides of the
surface with a polyester film, consisting of two layers (an
amorphous layer and an outer crystal layer), that contains no more
than the indicated amounts of the following environmental hormones:
1 mg/kg BADGE (BisPhenol--A Di-glycidyl Ether), 1 mg/kg BFDGE
(BisPhenol--F Di-glycidyl Ether), and 3 mg/kg BPA (BisPhenol--A).
The merchandise subject to this investigation is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS), under HTSUS subheadings 7210.11.0000, 7210.12.0000,
7210.50.0020, 7210.50.0090, 7212.10.0000, and 7212.50.0000 if of
non-alloy steel and under HTSUS subheadings 7225.99.0090, and
7226.99.0180 if of alloy steel. Although the subheadings are
provided for convenience and customs purposes, the written
description of the scope of the investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Recommendation
[FR Doc. 2023-13522 Filed 6-23-23; 8:45 am]
BILLING CODE 3510-DS-P
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