Notice2025-02380
Certain Corrosion-Resistant Steel Products From the Socialist Republic of Vietnam: Preliminary Affirmative Countervailing Duty Determination, and Alignment of Final Determination With Antidumping Duty Determination
Primary source
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Published
February 10, 2025
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 certain corrosion-resistant steel products (CORE) from the Socialist Republic of Vietnam (Vietnam) during the period of investigation, January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 90 Issue 26 (Monday, February 10, 2025)</title>
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[Federal Register Volume 90, Number 26 (Monday, February 10, 2025)]
[Notices]
[Pages 9235-9238]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-02380]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-552-844]
Certain Corrosion-Resistant Steel Products From the Socialist
Republic of Vietnam: Preliminary Affirmative Countervailing Duty
Determination, and Alignment of Final Determination With 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 certain corrosion-resistant steel products
(CORE) from the Socialist Republic of Vietnam (Vietnam) during the
period of investigation, January 1, 2023, through December 31, 2023.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable February 10, 2025.
FOR FURTHER INFORMATION CONTACT: Ted Pearson and Mary Kolberg, AD/CVD
Operations, Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2631 and (202) 482-1785,
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). On October 2,
2024, Commerce published the notice of initiation of this
countervailing duty (CVD) investigation.\1\ On November 14, 2024,
Commerce postponed the preliminary determination until February 3,
2025.\2\
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\1\ See Certain Corrosion-Resistant Steel Products from Brazil,
Canada, Mexico, and the Socialist Republic of Vietnam: Initiation of
Countervailing Duty Investigations, 89 FR 80204 (October 2, 2024)
(Initiation Notice).
\2\ See Certain Corrosion-Resistant Steel Products from Brazil,
Canada, Mexico, and the Socialist Republic of Vietnam: Postponement
of Preliminary Determinations in the Countervailing Duty
Investigations, 89 FR 89955 (November 14, 2024).
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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 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
Affirmative Determination of the Countervailing Duty Investigation
of Certain Corrosion-Resistant Steel Products from the Socialist
Republic of Vietnam,'' 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 CORE from Vietnam.
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 less-than-fair-
value (LTFV) and CVD investigations in the preliminary determination of
the companion LTFV investigations. We will incorporate the scope
decisions from the LTFV investigations into the scope of the final CVD
determination for this investigation after considering any relevant
comments submitted in scope case and rebuttal briefs.\6\
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 89 FR at 80205.
\6\ The deadline for interested parties to submit scope case and
rebuttal briefs will be established in the preliminary scope
decision memorandum.
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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.\7\ For a full description of the methodology underlying our
preliminary determination, see the Preliminary Decision Memorandum.
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\7\ 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 certain 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.\8\ For further
information, see the ``Use of Facts Otherwise Available and Adverse
Inferences'' section in the Preliminary Decision Memorandum.
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\8\ See sections 776(a) and (b) of the Act.
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Alignment
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 concurrent LTFV
investigation of CORE from Vietnam, based on a request made by the
petitioners.\9\ Consequently, this final CVD determination will be
issued on the same date as the final determination for the LTFV
investigation, which is currently scheduled to be issued no later than
June 17, 2025, unless postponed.
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\9\ See Petitioners' Letter, ``Request to Align the Final
Determination,'' dated January 6, 2025.
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Rate for Non-Responsive Companies
Six potential exporters and/or producers of CORE from Vietnam did
not respond to Commerce's Q&V questionnaire (i.e., the non-responsive
companies).\10\ We find that, by not responding to the Q&V
questionnaire, these companies withheld requested information and
significantly impeded this proceeding. Thus, in reaching our
preliminary determination, pursuant to sections 776(a)(2)(A) and (C) of
the Act, we are basing the CVD subsidy rate for the non-responsive
companies on facts otherwise available.
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\10\ The companies that failed to respond to Commerce's Q&V
questionnaire are: (1) 190 Steel Pipe Co Ltd; (2) Vietnam Germany
Steel JSC; (3) Vietnam Steel Pipe Co., Ltd.; (4) Vina One Steel
Manufacturing Corporation; (5) VNSTEEL--Thang Long Coated Sheets
Joint Stock Company; and (6) VNSTEEL--Vietnam Steel Corp.
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We further preliminarily determine that an adverse inference is
warranted, pursuant to section 776(b) of the Act. By failing to submit
responses to Commerce's Q&V questionnaire, the non-responsive companies
did not cooperate to the best of their ability in this investigation.
Accordingly, we preliminarily find that an adverse inference is
warranted to ensure that the non-responsive companies will not obtain a
more favorable result than had they fully complied with our request for
information. For more information on the application of adverse facts
available
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to the non-responsive companies, see ``Use of Facts Otherwise Available
and Adverse Inferences'' in the Preliminary Decision Memorandum.
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
rates that are zero, de minimis, or based entirely under section 776 of
the Act. If the rates established for all exporters and producers
individually investigated are zero, de minimis, or determined entirely
under facts available, Commerce may use any reasonable method to
establish an all-others rate.\11\ For this preliminary determination,
Commerce calculated de minimis and zero rates for Hoa Sen Group and Ton
Dong A Corporation, respectively. Further, as described above, we are
applying a rate based entirely under section 776 of the Act for the
non-responsive companies. Therefore, in accordance with section
705(c)(5)(A)(ii) of the Act, we are preliminarily applying a simple
average of the subsidy rates calculated for Hoa Sen Group, Ton Dong A
Corporation, and the non-responsive companies as the all-others
rate.\12\
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\11\ See sections 705(c)(5)(A)(i) and (ii) of the Act.
\12\ See Aluminum Extrusions from Taiwan: Final Affirmative
Determination of Sales at Less Than Fair Value, 89 FR 80477 (October
3, 2024), and accompanying Issues and Decision Memorandum at Comment
3.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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\13\ We preliminarily find Hoa Sen Group to be cross-owned with
the following companies: Hoa Sen Nghe An One Member Limited
Liabilities Company, Hoa Sen Phu Nhon Hoi-Binh Dinh One Member
Limited Liability Company, Hoa Sen Phu My One Member Limited
Liabilities Company, Hoa Sen Steel One Member Company Limited.
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Subsidy rate (percent ad
Company valorem)
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Hoa Sen Group \13\...................... 0.13 (de minimis).
Ton Dong A Corporation.................. 0.00.
190 Steel Pipe Co Ltd................... 140.05.*
Vietnam Germany Steel JSC............... 140.05.*
Vietnam Steel Pipe Co., Ltd............. 140.05.*
Vina One Steel Manufacturing Corporation 140.05.*
VNSTEEL--Thang Long Coated Sheets Joint 140.05.*
Stock Company.
VNSTEEL--Vietnam Steel Corp............. 140.05.*
All Others.............................. 46.73.
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations and analysis
performed in connection with this preliminary determination within five
days of its public announcement, or if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Suspension of Liquidation
In accordance with sections 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 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. Because the subsidy rates for Ton Dong A Corporation
and Hoa Sen Group are zero and de minimis, respectively, Commerce is
directing CBP not to suspend liquidation of entries of the merchandise
from these companies.
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
All interested parties will have the opportunity to submit scope
case and rebuttal briefs on the preliminary decision regarding the
scope of the LTFV and CVD investigations. The deadlines to submit scope
case and rebuttal briefs will be provided in the preliminary scope
decision memorandum. For all scope case and rebuttal briefs, parties
must file identical documents simultaneously on the records of the
ongoing LTFV and CVD CORE investigations. No new factual information or
business proprietary information may be included in either scope case
or rebuttal briefs.
Case briefs or other written comments, excluding scope comments,
may be submitted to the Assistant Secretary for Enforcement and
Compliance no later than seven days after the date on which the last
verification report is issued in this investigation. Rebuttal briefs,
limited to issues raised in the case briefs, may be filed not later
than five days after the date for filing case briefs.\14\ Interested
parties who submit case or rebuttal briefs in this proceeding must
submit: (1) a table of contents listing each issue; and (2) a table of
authorities.\15\
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\14\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\15\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public,
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executive summary for each issue raised in their briefs.\16\ Further,
we request that interested parties limit their public executive summary
of each issue to no more than 450 words, not including citations. We
intend to use the public executive summaries as the basis of the
comment summaries included in the issues and decision memorandum that
will accompany the final determination in this investigation. We
request that interested parties include footnotes for relevant
citations in the executive summary of each issue. Note that Commerce
has amended certain of its requirements pertaining to the service of
documents in 19 CFR 351.303(f).\17\
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\16\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\17\ See APO and Service Final Rule.
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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 and whether any participant is a foreign national, and a
list of the issues to be discussed. Oral presentations at the hearing
will be limited to issues raised in the briefs. If a request for a
hearing is made, Commerce intends to hold the hearing at a time and
date 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 (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the 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, whether imports of CORE from Vietnam are materially
injuring the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: February 3, 2025.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The products covered by this investigation are certain flat-
rolled steel products, either clad, plated, or coated with
corrosion-resistant metals such as zinc, aluminum, or zinc-,
aluminum-, nickel- or iron-based alloys, whether or not corrugated
or painted, varnished, laminated, or coated with plastics or other
non-metallic substances in addition to the metallic coating. The
products covered include coils that have a width of 12.7 mm or
greater, regardless of form of coil (e.g., in successively
superimposed layers, spirally oscillating, etc.). The products
covered also include products not in coils (e.g., in straight
lengths) of a thickness less than 4.75 mm and a width that is 12.7
mm or greater and that measures at least 10 times the thickness. The
products covered also include products not in coils (e.g., in
straight lengths) of a thickness of 4.75 mm or more and a width
exceeding 150 mm and measuring at least twice the thickness. The
products described above may be rectangular, square, circular, or
other shape and include products of either rectangular or non-
rectangular cross-section where such cross-section is achieved
subsequent to the rolling process, i.e., products which have been
``worked after rolling'' (e.g., products which have been beveled or
rounded at the edges).
For purposes of the width and thickness requirements referenced
above:
(1) Where the nominal and actual measurements vary, a product is
within the scope if application of either the nominal or actual
measurement would place it within the scope based on the definitions
set forth above, and
(2) where the width and thickness vary for a specific product
(e.g., the thickness of certain products with non-rectangular cross-
section, the width of certain products with non-rectangular shape,
etc.), the measurement at its greatest width or thickness applies.
Steel products included in the scope of this investigation are
products in which: (1) iron predominates, by weight, over each of
the other contained elements; and (2) the carbon content is 2
percent or less, by weight. Subject merchandise also includes
corrosion-resistant steel that has been further processed in a third
country, including but not limited to annealing, tempering,
painting, varnishing, trimming, cutting, punching and/or slitting or
any other processing that would not otherwise remove the merchandise
from the scope of the investigations if performed in the country of
manufacture of the in-scope corrosion resistant steel.
All products that meet the written physical description are
within the scope of this investigation unless specifically excluded.
The following products are outside of and/or specifically excluded
from the scope of this investigation:
<bullet> Flat-rolled steel products either plated or coated with
tin, lead, chromium, chromium oxides (``tin free steel''), whether
or not painted, varnished or coated with plastics or other
nonmetallic substances in addition to the metallic coating;
<bullet> Clad products in straight lengths of 4.7625 mm or more
in composite thickness and of a width which exceeds 150 mm and
measures at least twice the thickness;
<bullet> Certain clad stainless flat-rolled products, which are
three-layered corrosion-resistant carbon steel flat-rolled products
less than 4.75 mm in composite thickness that consist of a carbon
steel flat-rolled product clad on both sides with stainless steel in
a 20%-60%-20% ratio; and
Also excluded from the scope of the antidumping duty
investigation on corrosion resistant steel from Taiwan are any
products covered by the existing antidumping duty order on
corrosion-resistant steel from Taiwan. See Certain Corrosion-
Resistant Steel Products from India, Italy, the People's Republic of
China, the Republic of Korea and Taiwan: Amended Final Affirmative
Antidumping Determination for India and Taiwan, and Antidumping Duty
Orders, 81 FR 48390 (July 25, 2016); Corrosion-Resistant Steel
Products from Taiwan: Notice of Third Amended Final Determination of
Sales at Less Than Fair Value Pursuant to Court Decision and Partial
Exclusion from Antidumping Duty Order, 88 FR 58245 (August 25,
2023).
Also excluded from the scope of the antidumping duty
investigation on corrosion-resistant steel from the United Arab
Emirates and the antidumping duty and countervailing duty
investigations on corrosion-resistant steel from the Socialist
Republic of Vietnam are any products covered by the existing
antidumping and countervailing duty orders on corrosion-resistant
steel from the People's Republic of China and the Republic of Korea
and the antidumping duty order on corrosion-resistant steel from
Taiwan. See Certain Corrosion-Resistant Steel Products from India,
Italy, the People's Republic of China, the Republic of Korea and
Taiwan: Amended Final Affirmative Antidumping Determination for
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25,
2016); see also Certain Corrosion-Resistant Steel Products from
India, Italy, Republic of Korea and the People's Republic of China:
Countervailing Duty Order, 81 FR 48387 (July 25, 2016). This
exclusion does not apply to imports of corrosion-resistant steel
that are entered, or withdrawn from warehouse, for consumption in
the United States for which the relevant importer and exporter
certifications have been completed and maintained and all other
applicable certification requirements have been met such that the
entry is entered into the United States as not subject to the
antidumping and countervailing duty orders on corrosion-resistant
steel from the People's Republic of China, the antidumping and
countervailing duty orders on corrosion-resistant steel from the
Republic of Korea, or the antidumping duty order on corrosion-
resistant steel from Taiwan.
The products subject to the investigation are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under item numbers: 7210.30.0030,
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7210.30.0060, 7210.41.0000, 7210.49.0030, 7210.49.0040,
7210.49.0045, 7210.49.0091, 7210.49.0095, 7210.61.0000,
7210.69.0000, 7210.70.6030, 7210.70.6060, 7210.70.6090,
7210.90.6000, 7210.90.9000, 7212.20.0000, 7212.30.1030,
7212.30.1090, 7212.30.3000, 7212.30.5000, 7212.40.1000,
7212.40.5000, 7212.50.0000, 7212.60.0000, 7225.91.0000,
7225.92.0000, 7226.99.0110, and 7226.99.0130.
The products subject to the investigations may also enter under
the following HTSUS item numbers: 7210.90.1000, 7215.90.1000,
7215.90.3000, 7215.90.5000, 7217.20.1500, 7217.30.1530,
7217.30.1560, 7217.90.1000, 7217.90.5030, 7217.90.5060,
7217.90.5090, 7225.99.0090, 7226.99.0180, 7228.60.6000,
7228.60.8000, and 7229.90.1000.
The HTSUS subheadings above are provided for convenience and
customs purposes only. The written description of the scope of the
investigations is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Use of Facts Available and Adverse Inferences
V. Subsidies Valuation Information
VI. Interest Rate, Discount Rate, and Land Lease Benchmarks
VII. Analysis of Programs
VIII. Recommendation
[FR Doc. 2025-02380 Filed 2-7-25; 8:45 am]
BILLING CODE 3510-DS-P
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