Notice2025-16608

Certain Corrosion-Resistant Steel Products From South Africa: Final Affirmative Determination of Sales at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part

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Published
August 29, 2025

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) determines that imports of certain corrosion-resistant steel products (CORE) from South Africa are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is July 1, 2023, through June 30, 2024.

Full Text

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<title>Federal Register, Volume 90 Issue 166 (Friday, August 29, 2025)</title>
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[Federal Register Volume 90, Number 166 (Friday, August 29, 2025)]
[Notices]
[Pages 42198-42200]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16608]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-791-829]


Certain Corrosion-Resistant Steel Products From South Africa: 
Final Affirmative Determination of Sales at Less Than Fair Value and 
Final Affirmative Determination of Critical Circumstances, in Part

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
imports of certain corrosion-resistant steel products (CORE) from South 
Africa are being, or are likely to be, sold in the United States at 
less than fair value (LTFV). The period of investigation (POI) is July 
1, 2023, through June 30, 2024.

DATES: Applicable August 29, 2025.

FOR FURTHER INFORMATION CONTACT: Jacob Saude, AD/CVD Operations, Office 
VII, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230; telephone: (202) 482-0981.

SUPPLEMENTARY INFORMATION:

Background

    On April 10, 2025, Commerce published in the Federal Register its 
preliminary affirmative determination in the LTFV investigation of CORE 
from South Africa,\1\ in which we also postponed the final 
determination until August 25, 2025, and invited interested parties to 
comment on the Preliminary Determination.\2\ On July 18, 2025, Commerce 
issued a post-preliminary analysis memorandum in which we made certain 
changes to our differential pricing analysis.\3\ We invited interested 
parties to comment on general issues, sales issues, and the changes to 
the differential pricing analysis.\4\
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    \1\ See Certain Corrosion-Resistant Steel Products from South 
Africa: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, Postponement of Final Determination, and Extension of 
Provisional Measures, 90 FR 15330 (April 10, 2025) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Preliminary Determination, 90 FR at 15331-2.
    \3\ See Memorandum, ``Post-Preliminary Analysis,'' dated July 
18, 2025.
    \4\ See Memorandum, ``Briefing Schedule for Post-Preliminary 
Determination,'' dated July 18, 2025.
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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, may be found in the 
Issues and Decision Memorandum.\5\ 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 
<a href="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete version of the Issues 
and 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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    \5\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Certain Corrosion-Resistant Steel Products from 
South Africa,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is CORE from South 
Africa. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In the Preliminary Scope Memorandum, we set aside a period of time 
for parties to raise issues regarding product coverage (i.e., scope) in 
scope-specific case briefs or other written comments.\6\ We received 
scope case and rebuttal briefs from multiple interested parties. For a 
summary of the product coverage comments and rebuttal responses 
submitted to the record for this final determination, and accompanying 
discussion and analysis of all comments timely received, see the Final 
Scope Memorandum.\7\ In the Final Scope Memorandum, Commerce made no 
changes to the scope language as it appeared in the Initiation 
Notice.\8\ See Appendix I.
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    \6\ See Memorandum, ``Less-Than-Fair-Value Investigations of 
Certain Corrosion-Resistant Steel Products from Australia, Brazil, 
Canada, Mexico, the Netherlands, South Africa, Taiwan, the Republic 
of T[uuml]rkiye, the United Arab Emirates, and the Socialist 
Republic of Vietnam, and Countervailing Duty Investigations of 
Certain Corrosion-Resistant Steel Products from Brazil, Canada, 
Mexico, and the Socialist Republic of Vietnam: Preliminary Scope 
Decision Memorandum,'' dated April 3, 2025 (Preliminary Scope 
Memorandum).
    \7\ See Memorandum, ``Less-Than-Fair-Value Investigations of 
Certain Corrosion-Resistant Steel Products from Australia, Brazil, 
Canada, Mexico, the Netherlands, South Africa, Taiwan, the Republic 
of T[uuml]rkiye, the United Arab Emirates, and the Socialist 
Republic of Vietnam, and Countervailing Duty Investigations of 
Certain Corrosion-Resistant Steel Products from Brazil, Canada, 
Mexico, and the Socialist Republic of Vietnam: Final Scope Decision 
Memorandum,'' dated concurrently with this notice (Final Scope 
Memorandum).
    \8\ 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).
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Verification

    Commerce conducted verification of the information relied upon in 
making its final determination in this investigation, in accordance 
with section 782(i) of the Tariff Act of 1930, as amended (the Act). 
Specifically, we conducted on-site verifications of the sales and cost 
information submitted by Duferco Steel Processing PTY Ltd. (DSP), for 
use in our final determination.\9\ We used standard verification 
procedures, including an examination of relevant sales and accounting 
records, and original source documents provided by DSP.
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    \9\ See Memoranda, ``Verification of the Cost Responses of 
Duferco Steel Processing (PTY) Limited in the Less Than Fair Value 
Investigation of Certain Corrosion-Resistant Steel Products from 
South Africa,'' dated May 18, 2025; and ``Verification of the Sales 
Response of Duferco Steel Processing Pty Ltd. in the Antidumping 
Investigation of Certain Corrosion-Resistant Steel Products from 
South Africa,'' dated June 24, 2025.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs submitted by 
interested parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of the issues addressed in the Issues 
and Decision Memorandum is attached to this notice as Appendix II.

Final Affirmative Determination of Critical Circumstances, In Part

    Commerce preliminarily determined, in accordance with section 
733(e)(1) of

[[Page 42199]]

the Act and 19 CFR 351.206, that critical circumstances do not exist 
with respect to imports of CORE from South Africa produced and exported 
by DSP and all other producers and exporters.\10\ For the final 
determination, pursuant to sections 735(a)(3)(A) and (B) of the Act and 
19 CFR 351.206, we find that critical circumstances exist for all other 
producers and exporters. Furthermore, we continue to find that critical 
circumstances do not exist for DSP. For a discussion and analysis of 
comments regarding Commerce's critical circumstances analysis, see the 
Issues and Decision Memorandum.
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    \10\ See Certain Corrosion-Resistant Steel Products From the 
United Arab Emirates and South Africa: Preliminary Affirmative 
Determination, in Part, of Critical Circumstances, 90 FR 14599 
(April 3, 2025).
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and additional 
information obtained since the Preliminary Determination, we made 
certain changes to the margin calculation for this final determination. 
For a discussion of these changes, see the Issues and Decision 
Memorandum.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that Commerce shall 
determine an estimated all-others rate for all exporters and producers 
not individually examined. This 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 and de minimis margins, and any margins determined 
entirely under section 776 of the Act.
    In this investigation, Commerce calculated an individual estimated 
weighted-average dumping margin for DSP, the only individually examined 
exporter/producer in this investigation, that is not zero, de minimis, 
or based entirely on facts otherwise available. Therefore, because the 
only individually calculated dumping margin is not zero, de minimis, or 
based entirely on facts otherwise available, the estimated weighted-
average dumping margin calculated for DSP is the margin assigned to all 
other producers and exporters, pursuant to section 735(c)(5)(A) of the 
Act.

Final Determination

    Commerce determines that the following estimated weighted-average 
dumping margins exist:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Producer/exporter                         dumping
                                                                margin
                                                               (percent)
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Duferco Steel Processing PTY Ltd............................       19.21
All Others..................................................       19.21
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Disclosure

    Commerce intends to disclose its calculations and analysis 
performed in connection with this final determination to interested 
parties within five days of any public announcement or, if there is no 
public announcement, within five days of the date of publication of 
this notice in the Federal Register, in accordance with 19 CFR 
351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of CORE, as described in Appendix I 
of this notice, which were entered, or withdrawn from warehouse, for 
consumption on or after April 10, 2025, the date of publication of the 
Preliminary Determination in the Federal Register.
    Pursuant to sections 735(c)(1)(B)(ii) and 735(c)(5)(A) of the Act, 
and 19 CFR 351.210(d), upon the publication of this notice, we will 
instruct CBP to require a cash deposit for estimated antidumping duties 
as follows: (1) the cash deposit rate for the companies listed in the 
table above that exported the subject merchandise will be equal to the 
company-specific estimated weighted-average dumping margins determined 
in this final determination; (2) if the exporter is not a company 
identified in the table above, but the producer is, then the cash 
deposit rate will be equal to the company-specific estimated weighted-
average dumping margin established for that producer; and (3) the cash 
deposit rate for all other producers and exporters will be equal to the 
estimated weighted-average dumping margin for all other producers and 
exporters listed in the table above. These suspension of liquidation 
instructions will remain in effect until further notice.

U.S. International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination of sales at LTFV. 
Because the final determination is affirmative, in accordance with 
section 735(b)(2) 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 or 
sales (or the likelihood of sales) for importation of CORE from South 
Africa no later than 45 days after this final determination. If the ITC 
determines that such injury does not exist, this proceeding will be 
terminated, all cash deposits posted will be refunded, and suspension 
of liquidation will be lifted. 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 duties on 
all imports of CORE from South Africa entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation, as discussed in the ``Continuation of 
Suspension of Liquidation'' section above.

Administrative Protective Order (APO)

    This notice serves as the only reminder to parties subject to an 
APO of their responsibility concerning the disposition of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or 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 sanctionable violation.

Notification to Interested Parties

    This final determination and notice are issued and published in 
accordance with sections 735(d) and 777(i) of the Act, and 19 CFR 
351.210(c).

    Dated: August 25, 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

[[Page 42200]]

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, both tin and lead (``terne 
plate'') or both chromium and chromium oxides (``tin free steel''), 
whether or not painted, varnished or coated with plastics or other 
non-metallic 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, 81FR 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, 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 investigation 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 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Final Affirmative Determination of Critical Circumstances, In 
Part
IV. Changes from the Preliminary Determination
V. Discussion of the Issues
    Comment 1: Whether Commerce Should Apply Zeroing to All Sales 
Comparisons and Deny Offsets by Assigning a Value of Zero to Non-
Dumped Sales
    Comment 2: Whether Commerce Should Maintain its Determination 
That Critical Circumstances Do Not Exist for CORE From South Africa
    Comment 3: Whether Commerce Should Not Exclude Two Post-Sale 
Adjustments Because Both Excluded Discounts Are Supported by Record 
Evidence
    Comment 4: Whether Commerce Should Update the Margin Program to 
Rely on CONNUM2U for U.S. Sales, and CONNUMU as the Link to the Cost
    Comment 5: Whether DSP's Unaffiliated Hot Rolled Coil (HRC) 
Purchases Are Distorted and Cannot be Relied on as a Market Price in 
the Transactions Disregarded Analysis
    Comment 6: Whether Commerce Should Correct a Methodological 
Error in its Calculation of the Transactions Disregarded Adjustment 
to DSP's Purchases of HRC From Affiliated Parties
    Comment 7: Whether Commerce Should Continue to Impute Interest 
Expenses on DSP's Interest-Free Shareholder Loans
    Comment 8: Whether Commerce Should Continue to Adjust DSP's 
Purchases of Electricity From an Affiliated Party
    Comment 9: Whether Commerce Should Reduce the Denominator of the 
General and Administrative (G&A) and Financial Expenses Ratios for 
Scrap Recoveries
    Comment 10: Whether Commerce Should Continue to Grant Offsets to 
DSP's G&A Expenses
VI. Recommendation

[FR Doc. 2025-16608 Filed 8-28-25; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on August 29, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.