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Cut-to-Length Steel Plate: New AD/CVD Investigations Deadlines & Scope

The Commerce Department issued Federal Register notices on its recently initiated antidumping and countervailing duty investigations on carbon and alloy steel cut-to-length plate from Austria (A-433-812), Belgium (A-423-812), Brazil (A-351-847), France (A-427-828), Germany (A-428-844), Italy (A-475-834), Japan (A-588-875), South Korea (A-580-887), China (A-570-047), South Africa (A-791-822), Taiwan (A-583-858) and Turkey (A-489-828), as well as countervailing duty investigations on cut-to-length plate from Brazil (C-351-848), China (A-570-048) and South Korea (C-570-888).

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The AD period of investigation is April 1, 2015, through March 31, 2016 (except for China, where it's Oct. 1, 2015 through March 31, 2016). The CVD period of investigation is Jan. 1, 2015, through Dec. 31, 2015.

The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized cut-to-length pipe are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due May 23, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in July for CV duties and September for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue an AD and/or CV duty order making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.

If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a "separate rate" will be assigned the "China-wide rate," which can reach over 200 percent for some products. Separate rate applications from Chinese producers and exporters (here) are due on or about June 4.

AD/CVD Respondent Selection

Commerce said it will pick respondents for all of the CV duty investigations and the AD duty investigations on Brazil, Turkey, Germany, Italy, Japan, South Korea, South Africa and Taiwan based on CBP data. Commerce intends to examine all producer/exporters it knows of in Austria, Belgium and France due to the small number identified in the petition.

For the China AD duty investigation, Commerce will send quantity and value questionnaires to each potential respondent, and will base respondent selection on the responses it receives. Chinese exporters that don't get a quantity and value questionnaire can still submit one (here). Questionnaire responses are due May 12.

Scope of the AD/CVD Investigations

"The products covered by these investigations are certain carbon and alloy steel hot-rolled or forged flat plate products not in coils, whether or not painted, varnished, or coated with plastics or other non-metallic substances (cut-to-length plate). Subject merchandise includes plate that is produced by being cut-to-length from coils or from other discrete length plate and plate that is rolled or forged into a discrete length. The products covered include (1) Universal mill plates (i.e., flat-rolled products rolled on four faces or in a closed box pass, of a width exceeding 150 mm but not exceeding 1250 mm, and of a thickness of not less than 4 mm, which are not in coils and without patterns in relief), and (2) hotrolled or forged flat steel products of a thickness of 4.75 mm or more and of a width which exceeds 150 mm and measures at least twice the thickness, and which are not in coils, whether or not with patterns in relief. The covered products described above may be rectangular, square, circular or other shapes and include products of either rectangular or non-rectangular cross-section where such non-rectangular 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, the following rules apply ..."

"... At the time of the filing of the petition, there was an existing antidumping duty order on certain cut-to-length carbon-quality steel plate products from Korea. See Notice of Final Determination of Sales at Less Than Fair Value: Certain Cut-ToLength Carbon-Quality Steel Plate Products from Korea, 64 Fed. Reg. 73,196 (Dep’t Commerce Dec. 29, 1999), as amended, 65 Fed. Reg. 6,585 (Dep’t Commerce Feb 10, 2000) (1999 Korea AD Order). The scope of the antidumping duty investigation with regard to cut-to-length plate from Korea covers only (1) subject cut-to-length plate not within the physical description of cut-to-length carbon quality steel plate in the 1999 Korea AD Order, regardless of producer or exporter; and (2) cut-to-length plate produced and/or exported by those companies that were excluded or revoked from the 1999 Korea AD Order as of April 8, 2016. The only revoked or excluded company is Pohang Iron and Steel Company, also known as POSCO.

"At the time of the filing of the petition, there was an existing countervailing duty order on certain cut-to-length carbon-quality steel plate from Korea. See Final Affirmative Countervailing Duty Determination: Certain Cut-to-Length CarbonQuality Steel Plate From the Republic of Korea, 64 Fed. Reg. 73,176 (Dep’t Commerce Dec. 29, 1999), as amended, 65 Fed. Reg. 6,587 (Dep’t Commerce Feb. 10, 2000) (1999 Korea CVD Order). The scope of the countervailing duty investigation with regard to cut-to-length plate from Korea covers only (1) subject cut-to-length plate not within the physical description of cut-to-length carbon quality steel plate in the 1999 Korea CVD Order regardless of producer or exporter, and (2) cut-to-length plate produced and/or exported by those companies that were excluded or revoked from the 1999 Korea CVD Order as of April 8, 2016. The only revoked or excluded company is Pohang Iron and Steel Company, also known as POSCO.

"Excluded from the scope of the antidumping duty investigation on cut-to-length plate from China are any products covered by the existing antidumping duty order on certain cut-to-length carbon steel plate from the People’s Republic of China. See Suspension Agreement on Certain Cut-to-Length Carbon Steel Plate From the People’s Republic of China; Termination of Suspension Agreement and Notice of Antidumping Duty Order, 68 Fed. Reg. 60,081 (Dep’t Commerce Oct. 21, 2003), as amended, Affirmative Final Determination of Circumvention of the Antidumping Duty Order on Certain Cut-to-Length Carbon Steel Plate From the People’s Republic of China, 76 Fed. Reg. 50,996, 50,996-97 (Dep’t of Commerce Aug. 17, 2011). On August 17, 2011, the U.S. Department of Commerce found that the order covered all imports of certain cut-to-length carbon steel plate products with 0.0008 percent or more boron, by weight, from China not meeting all of the following requirements: aluminum level of 0.02 percent or greater, by weight; a ratio of 3.4 to 1 or greater, by weight, of titanium to nitrogen; and a hardenability test (i.e., Jominy test) result indicating a boron factor of 1.8 or greater.

"The products subject to the investigations are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under item numbers: 7208.40.3030, 7208.40.3060, 7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 7211.13.0000, 7211.14.0030, 7211.14.0045, 7225.40.1110, 7225.40.1180, 7225.40.3005, 7225.40.3050, 7226.20.0000, and 7226.91.5000.

"The products subject to the investigations may also enter under the following HTSUS item numbers: 7208.40.6060, 7208.53.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.19.1500, 7211.19.2000, 7211.19.4500, 7211.19.6000, 7211.19.7590, 7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7214.10.000, 7214.30.0010, 7214.30.0080, 7214.91.0015, 7214.91.0060, 7214.91.0090, 7225.11.0000, 7225.19.0000, 7225.40.5110, 7225.40.5130, 7225.40.5160, 7225.40.7000, 7225.99.0010, 7225.99.0090, 7206.11.1000, 7226.11.9060, 7229.19.1000, 7226.19.9000, 7226.91.0500, 7226.91.1530, 7226.91.1560, 7226.91.2530, 7226.91.2560, 7226.91.7000, 7226.91.8000, and 7226.99.0180.

"The HTSUS subheadings above are provided for convenience and customs purposes only. The written description of the scope of the investigations is dispositive."

(NOTE: This is an abridged version of the scope. See Commerce's notice for the full version, including width and thickness criteria.)

Comments on Scope Due May 18

Participants in the AD/CVD investigations may submit comments on product coverage under the scope of the investigations. Comments on the scope are due by May 18.

Investigations Timetable

EventAD DutyCV Duty
Petitions filed04/08/1604/08/16
DOC initiation date04/28/1604/28/16
ITC prelim determinations*05/23/1605/23/16
DOC prelim determinations†09/15/1607/05/16
DOC final determinations†11/29/1609/15/16
ITC final determinations‡01/13/1710/31/16
Issuance of orders+01/20/1711/07/16

†These deadlines may be extended under the governing statute.*If the ITC makes a negative determination of injury, the investigations are terminated.

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

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

(See 1604080019 for summary of the Commerce Department's receipt of the petition underlying the initiation of this investigation.)

The AD duty initiation notice is (here).

The CV duty initiation notice is (here).

The Commerce Department fact sheet on the initiation of these investigations is (here).