Notice2026-05807
Certain Corrosion-Resistant Steel Products From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping and Countervailing Duty Orders
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
March 25, 2026
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from Steel Dynamics Inc. and Nucor Corporation (collectively, the requesters), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of certain corrosion-resistant steel products (CORE) completed in Indonesia using hot-rolled steel (HRS) and cold-rolled steel (CRS) manufactured in the People's Republic of China (China), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on CORE from China.
Full Text
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<title>Federal Register, Volume 91 Issue 57 (Wednesday, March 25, 2026)</title>
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[Federal Register Volume 91, Number 57 (Wednesday, March 25, 2026)]
[Notices]
[Pages 14533-14535]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-05807]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-026, C-570-027]
Certain Corrosion-Resistant Steel Products From the People's
Republic of China: Initiation of Circumvention Inquiry on the
Antidumping and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Steel Dynamics Inc. and Nucor
Corporation (collectively, the requesters), the U.S. Department of
Commerce (Commerce) is initiating a country-wide circumvention inquiry
to determine whether imports of certain corrosion-resistant steel
products (CORE) completed in Indonesia using hot-rolled steel (HRS) and
cold-rolled steel (CRS) manufactured in the People's Republic of China
(China), are circumventing the antidumping duty (AD) and countervailing
duty (CVD) orders on CORE from China.
DATES: Applicable March 25, 2026.
FOR FURTHER INFORMATION CONTACT: Justin Enck at (202) 482-1614 or Shawn
Gregor at (202) 482-3226, Office of Policy, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On February 2, 2026, pursuant to section 781(b) of the Tariff Act
of 1930, as amended (the Act), and 19 CFR 351.226(i), the requesters
filed a circumvention inquiry request alleging that CORE completed in
Indonesia using HRS and CRS manufactured in China are circumventing the
AD and CVD orders on CORE from China,\1\ and, accordingly, should be
included within the scope of the Orders.\2\
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\1\ 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)
(collectively, Orders).
\2\ See Requesters' Letter, ``Request for Circumvention Inquiry
(Indonesia),'' dated January 30, 2026 (Circumvention Request). The
request was filed after 5:00 p.m. EST on Friday, January 30, 2026,
and therefore, is considered to be filed on the next business day,
Monday. February 2, 2026.
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On February 13 and 25, 2026, we issued supplemental questionnaires
to the requesters.\3\ On February 19 and 27, 2026, the requesters filed
their responses to our requests for additional information.\4\
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\3\ See Commerce's Letters, ``Indonesia Circumvention Inquiry
Request Supplemental Questionnaire,'' dated February 13, 2026, and
``Indonesia Circumvention Inquiry Request Second Supplemental
Questionnaire,'' dated February 25, 2026.
\4\ See Requesters' Letters, ``Response to Indonesia
Circumvention Inquiry Request Supplemental Questionnaire,'' dated
February 19, 2026, and ``Response to Indonesia Circumvention Inquiry
Request Second Supplemental Questionnaire,'' dated February 27,
2026.
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Scope of the Orders
The products covered by these Orders 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. For a full description of the scope
of the Orders, see the Circumvention Initiation Checklist.\5\
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\5\ See Checklist, ``Certain Corrosion-Resistant Steel Products
from the People's Republic of China,'' dated concurrently with, and
hereby adopted by, this notice (Circumvention Initiation Checklist),
at Attachment I.
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Merchandise Subject to the Circumvention Inquiry
The circumvention inquiry covers CORE completed in Indonesia using
Chinese-origin HRS or CRS that is subsequently exported from Indonesia
and imported into the United States.
Initiation of Circumvention Inquiry
Section 351.226(d) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
circumvention inquiry request allege ``that the elements necessary for
a circumvention determination under section 781 of the Act exist'' and
be ``accompanied by information reasonably available to the interested
party supporting these allegations.'' The requesters alleged
circumvention pursuant to section 781(b) of the Act (merchandise
completed or assembled in other foreign countries).
Section 781(b)(1) of the Act provides that Commerce may find
circumvention of an order when merchandise of the same class or kind
subject to the order is completed or assembled in a foreign country
other than the country to which the order applies. In conducting a
circumvention inquiry, under section 781(b)(1) of the Act, Commerce
relies on the following criteria: (A) merchandise imported into the
United States is of the same class or kind as any merchandise produced
in a foreign country that is the subject of an AD or CVD order; (B)
before importation into the United States, such imported merchandise is
completed or assembled in another foreign country from merchandise
which is subject to the order or is
[[Page 14534]]
produced in the foreign country that is subject to the order; (C) the
process of assembly or completion in the foreign country referred to in
section (B) is minor or insignificant; (D) the value of the merchandise
produced in the foreign country to which the AD or CVD order applies is
a significant portion of the total value of the merchandise exported to
the United States; and (E) the administering authority determines that
action is appropriate to prevent evasion of such order.
In determining whether the process of assembly or completion in a
foreign country is minor or insignificant under section 781(b)(1)(C) of
the Act, section 781(b)(2) of the Act directs Commerce to consider: (A)
the level of investment in the foreign country; (B) the level of
research and development in the foreign country; (C) the nature of the
production process in the foreign country; (D) the extent of production
facilities in the foreign country; and (E) whether or not the value of
processing performed in the foreign country represents a small
proportion of the value of the merchandise imported into the United
States. However, no single factor, by itself, controls Commerce's
determination of whether the process of assembly or completion in a
foreign country is minor or insignificant.\6\ Accordingly, Commerce
will evaluate each of these five factors as they exist in the foreign
country, depending on the particular circumvention scenario.
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\6\ See Statement of Administrative Action Accompanying the
Uruguay Round Agreements Act, H.R. Doc. 103-316, Vol. 1 (1994), at
893.
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In addition, section 781(b)(3) of the Act sets forth additional
factors to consider in determining whether it is appropriate under
section 781(b)(1) of the Act to include merchandise assembled or
completed in a foreign country within the scope of an AD or CVD order.
Specifically, Commerce shall take into account such factors as: (A) the
pattern of trade, including sourcing patterns; (B) whether the
manufacturer or exporter of the merchandise that was shipped to the
foreign country is affiliated with the person who, in the foreign
country, uses the merchandise to complete or assemble the merchandise
which is subsequently imported into the United States; and (C) whether
imports of the merchandise into the foreign country have increased
after the initiation of the investigation that resulted in the issuance
of such order.
Analysis
Based on our analysis of the requesters' circumvention inquiry
request, we determine that they have satisfied the criteria under 19
CFR 351.226(c), and thus, pursuant to 19 CFR 351.226(d)(1)(iii), we are
initiating the requested circumvention inquiry. For a full discussion
of the basis for our decision to initiate the circumvention inquiry,
see the Circumvention Initiation Checklist. As explained in the
Circumvention Initiation Checklist, the information provided by the
requesters warrants initiating the circumvention inquiry on a country-
wide basis. Commerce has taken this approach in prior circumvention
inquiries, where the facts warranted initiation on a country-wide
basis.\7\
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\7\ See, e.g., Hydrofluorocarbon Blends from the People's
Republic of China: Initiation of Circumvention Inquiry on the
Antidumping Duty Order, 88 FR 74150 (October 30, 2023).
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Consistent with the approach in the prior circumvention inquiries
that were initiated on a country-wide basis, Commerce intends to
solicit information from certain companies in Indonesia concerning
their production of CORE and their shipments thereof to the United
States.
Respondent Selection
Commerce intends to base respondent selection on U.S. Customs and
Border Protection (CBP) data. Commerce intends to place the CBP data on
each record within five days of the publication of this initiation
notice, which will be available on 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>. Comments regarding the CBP data and respondent
selection should be submitted within seven days after placement of the
CBP data on the record of the relevant inquiry.
Commerce intends to establish a schedule for questionnaire
responses after respondent selection. A company's failure to completely
respond to Commerce's requests for information may result in the
application of facts available, pursuant to section 776(a) of the Act,
which may include adverse inferences, pursuant to section 776(b) of the
Act.
Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce will notify CBP of this
initiation and direct CBP to continue the suspension of liquidation of
entries of products subject to the circumvention inquiry that were
already subject to the suspension of liquidation under the Orders and
to apply the cash deposit rates that would be applicable if the
products were determined to be covered by the scope of the Orders.
Should Commerce issue affirmative preliminary or final
circumvention determinations, Commerce will follow the suspension of
liquidation rules under 19 CFR 351.226(l)(2)-(4). In the event that
Commerce issues affirmative preliminary or final circumvention
determinations that the products are circumventing the Orders, Commerce
will instruct CBP to continue the suspension of liquidation of
previously suspended entries and to apply the applicable cash deposit
rate. Commerce will also instruct CBP to begin the suspension of
liquidation and application of cash deposits for any unliquidated
entries not yet suspended, entered, or withdrawn from warehouse, for
consumption, on or after the date of publication of the notice of
initiation of the circumvention inquiry pursuant to paragraphs
(l)(2)(ii) and (l)(3)(ii). In addition, pursuant to paragraphs
(l)(2)(iii)(A) and (l)(3)(iii)(A), Commerce may instruct CBP to begin
the suspension of liquidation and application of cash deposits for any
unliquidated entries not yet suspended, entered, or withdrawn from
warehouse, for consumption, prior to the date of initiation of the
circumvention inquiry, but not for such entries prior to November 4,
2021, the effective date of these provisions in the Final Rule.\8\
These rules will not affect CBP's authority to take any additional
action with respect to the suspension of liquidation or related
measures for these entries, as stated in 19 CFR 351.226(l)(5).
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\8\ See Regulations to Improve Administration and Enforcement of
Antidumping and Countervailing Duty Laws, 86 FR 52300, 52345
(September 20, 2021) (Final Rule).
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Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(b) of the Act,
Commerce determines that the requesters' request for this circumvention
inquiry satisfies the requirements of 19 CFR 351.226(c). Accordingly,
Commerce is notifying all interested parties of the initiation of this
circumvention inquiry to determine whether imports of CORE completed in
Indonesia using HRS or CRS manufactured in China, exported from
Indonesia and imported into the United States, are circumventing the
Orders. In addition, we have included a description of the products
that are subject to this inquiry, and an explanation of Commerce's
decision to initiate this inquiry as provided in the accompanying
Circumvention Initiation Checklist.\9\
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\9\ See Circumvention Initiation Checklist.
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[[Page 14535]]
In accordance with 19 CFR 351.226(e)(1), unless this circumvention
inquiry is rescinded, in whole or in part, or extended, Commerce
intends to issue its preliminary circumvention determination no later
than 150 days from the date of publication of this notice of initiation
of this circumvention inquiry in the Federal Register. Furthermore, in
accordance with section 781(f) of the Act and 19 CFR 351.226(e)(2),
unless this circumvention inquiry is rescinded, in whole or in part, or
extended, Commerce intends to issue its final determination within 300
days from the date of publication of this notice of initiation of this
circumvention inquiry in the Federal Register.
This notice is published in accordance with section 781(b) of the
Act, and 19 CFR 351.226(d)(1)(iii).
Dated: March 19, 2026.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
[FR Doc. 2026-05807 Filed 3-24-26; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on March 25, 2026.
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