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NOES From Six Countries: New AD Investigations Deadlines & Scope

The Commerce Department issued a Federal Register notice on its recently initiated antidumping duty investigations on non-oriented electrical steel (NOES) from China, Germany, Japan, South Korea, Sweden, and Taiwan (A-570-996, A-428-843, A-588-872, A-580-872, A-401-809, A-583-851). The agency will determine whether imports of the subject merchandise are being, or are likely to be, sold in the U.S. at less than fair value. NOES is a steel product used in the production of large and small motors, generators, lighting ballasts, and ignition coils, the petition said.

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(See 13111317 for the initiation of the concurrent countervailing duty investigation on NOES from China, South Korea, and Taiwan.)

The period of investigation for China is Jan. 1, 2013, through June 30, 2013. The period of investigation for Germany, Japan, South Korea, Sweden, and Taiwan is July 1, 2012, through June 30, 2013.

Respondent Selection

Commerce said it will pick respondents to the Germany, South Korea, and Japan AD duty investigations based on CBP import data. For the Sweden and Taiwan investigations, the petitions only identified one and two exporters, respectively. Commerce will only examine these three Swedish and Taiwanese companies.

For the China investigation, Commerce will send quantity and value questionnaires to each potential respondent, and will base respondent selection on the responses it receives by Nov. 26. Chinese exporters that don't get a quantity and value questionnaire can still submit one. Commerce said it will post a copy of the quantity and value questionnaire on its website (here).

Scope of the AD Investigations

"The merchandise subject to these investigations consists of non-oriented electrical steel (NOES), which includes cold-rolled, flat-rolled, alloy steel products, whether or not in coils, regardless of width, having an actual thickness of 0.20 mm or more, in which the core loss is substantially equal in any direction of magnetization in the plane of the material. The term 'substantially equal' in the prior sentence means that the cross grain direction of core loss is no more than 1.5 times the straight grain direction (i.e., the rolling direction) of core loss. NOES has a magnetic permeability that does not exceed 1.65 Tesla when tested at a field of 800 A/m (equivalent to 10 Oesteds) along (i.e., parallel to) the rolling direction of the sheet (i.e., B800 value). NOES contains by weight at least 1.25 percent of silicon but less than 3.5 percent of silicon, not more than 0.08 percent of carbon, and not more than 1.5 percent of aluminum.

"NOES is subject to these investigations whether it is fully processed (fully annealed to develop final magnetic properties) or semi-processed (finished to final thickness and physical form but not fully annealed to develop final magnetic properties); whether or not it is coated (e.g., with enamel, varnish, natural oxide surface, chemically treated or phosphate surface, or other non-metallic materials). Fully processed NOES is typically made to the requirements of ASTM specification A 677, Japanese Industrial Standards (JIS) specification C 2552, and/or International Electrotechnical Commission (IEC) specification 60404-8-4. Semi-processed NOES is typically made to the requirements of ASTM specification A 683. However, the scope of these investigations is not limited to merchandise meeting the specifications noted above.

"NOES is sometimes referred to as cold-rolled non-oriented electrical steel (CRNO), non-grain oriented (NGO), non-oriented (NO), or cold-rolled non-grain oriented (CRNGO). These terms are interchangeable.

"The subject merchandise is provided for in subheadings 7225.19.0000, 7226.19.1000, and 7226.19.9000 of the Harmonized Tariff Schedule of the United States (HTSUS). Subject merchandise may also be entered under subheadings 7225.50.8085, 7225.99.0090, 7226.92.5000, 7226.92.7050, 7226.92.8050, 7226.99.0180 of the HTSUS. Although HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope is dispositive."

Comments on Scope Due by Nov. 26

Commerce said it discussed the scope with petitioners to ensure that it is an accurate reflection of the products for which the domestic industry is seeking relief. Comments on the scope are due by Nov. 26.

Investigations Timetable

EventDeadline
Petition filed09/30/13
DOC initiation date11/06/13
ITC prelim determination112/02/13
DOC prelim determination203/26/14
DOC final determination206/09/14
ITC final determination306/24/14
Issuance of orders407/31/14

1If the ITC makes a negative determination of injury, the investigations are terminated.

2These deadlines may be extended under the governing statute.

3This will take place only in the event of Commerce Department final affirmative determinations.

4This will take place only in the event of Commerce and ITC final affirmative determinations.

(See 13101707 for summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)

Commerce Department fact sheet available (here).