AD/CVD message 0015406 - Notice of final determination of Vietnam-wide circumvention of antidumping duty order on certain corrosion-resistant steel products from the Republic of Korea (A-580-878) (A-552-003)

0015406
Jan 15, 2020
Active

Effective Date: Aug 02, 2018

Cite as: 84 FR 70948 • Cite date: Dec 26, 2019

Category: Antidumping • Type: CSDEP • Sub type: CIRAF • Cases: A-552-003 A-580-878

1. On 12/26/2019, Commerce published in the Federal Register its notice of affirmative final determination of Vietnam-wide circumvention of the antidumping duty (AD) and countervailing duty (CVD) orders on corrosion-resistant steel products (CORE) (AD and CVD Orders) from Korea (84 FR 70948) (Final Determination). On 01/08/2020, Commerce published a correction notice in the Federal Register (85 FR 882) indicating that certain parties identified in the original final determination as ineligible for the certification process below are in fact eligible for the certification process. This message pertains to the AD proceeding, separate cash deposit instructions will be issued for the companion CVD CORE Order.
2. Scope of the antidumping order:
The products covered by this order 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 these orders are products in which: (1) Iron predominates, by weight, over each of the other contained elements; (2) the carbon content is 2 percent or less, by weight; and (3) none of the elements listed below exceeds the quantity, by weight, respectively indicated:

2.50 percent of manganese, or
3.30 percent of silicon, or
1.50 percent of copper, or
1.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
2.00 percent of nickel, or
0.30 percent of tungsten (also called wolfram), or
0.80 percent of molybdenum, or
0.10 percent of niobium (also called columbium), or
0.30 percent of vanadium, or
0.30 percent of zirconium

Unless specifically excluded, products are included in this scope regardless of levels of boron and titanium.

For example, specifically included in this scope are vacuum degassed, fully stabilized (commonly referred to as interstitial-free (IF)) steels and high strength low alloy (HSLA) steels. IF steels are recognized as low carbon steels with micro-alloying levels of elements such as titanium and/or niobium added to stabilize carbon and nitrogen elements. HSLA steels are recognized as steels with micro-alloying levels of elements such as chromium, copper, niobium, titanium, vanadium, and molybdenum.

Furthermore, this scope also includes Advanced High Strength Steels (AHSS) and Ultra High Strength Steels (UHSS), both of which are considered high tensile strength and high elongation steels.

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 orders if performed in the country of manufacture of the in-scope corrosion resistant steel.

All products that meet the written physical description, and in which the chemistry quantities do not exceed any one of the noted element levels listed above, are within the scope of these orders unless specifically excluded. The following products are outside of and/or specifically excluded from the scope of these orders:

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;
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; and

Certain clad stainless flat-rolled products, which are three-layered corrosion-resistant flat-rolled steel products less than 4.75 mm in composite thickness that consist of a flat-rolled steel product clad on both sides with stainless steel in a 20%-60%-20% ratio.

The products subject to the order 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, 7210.49.0091, 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, and 7212.60.0000. The products subject to the orders 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, 7225.91.0000, 7225.92.0000, 7225.99.0090, 7226.99.0110, 7226.99.0130, 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 order is dispositive.
3. Scope of the anti-circumvention inquiry
This anti-circumvention inquiry covers CORE produced in the Socialist Republic of Vietnam (Vietnam) from hot-rolled steel (HRS) and/or cold-rolled steel (CRS) substrate produced in Korea and subsequently exported to the United States from Vietnam. Corrosion-resistant steel flat products produced in Vietnam using HRS and/or CRS substrate manufactured in Vietnam or any country other than Korea are not covered by the scope of this anti-circumvention inquiry.

As a result of this anti-circumvention inquiry, the concurrent anti-circumvention inquiry (related to the AD Order on corrosion-resistant steel products from Taiwan on this same merchandise produced in Vietnam from Taiwanese substrate (A-583-856/A-552-005)), and the prior anti-circumvention inquiry (related to the AD Order on corrosion-resistant steel products from China, A-570-026/A-552-994) on this same merchandise produced in Vietnam from Chinese substrate (see message 8155303, dated 06/04/2018), importers and exporters of CORE from Vietnam are required to fill out and maintain certain certifications regarding the imported merchandise that is not made from Chinese substrate in order to be exempt from the Chinese Orders. The same requirement now applies with respect to the substrate not being from Korea or Taiwan in order for the goods to be exempt from those orders. Please see concurrent instructions issued with respect to the investigation related to the Taiwanese AD CORE Order.

For shipments of CORE from Vietnam entered, or withdrawn from warehouse, for consumption on or after 08/02/2018, the following hierarchy applies:

3a. In the situation where both the importer and exporter have not certified that the HRS and CRS substrate are not of Chinese origin, regardless of other certifications, the Chinese Order on CORE applies.

3b. In the situation where both the importer and exporter have certified that the HRS and CRS substrate are not of Chinese origin, but both have not certified that the HRS and CRS substrate are not of Korean origin, regardless of other certifications, the Korean AD CORE Order applies.

3c. In the situation where both the importer and exporter have certified that the HRS and CRS substrate are not of Chinese or Korean origin, but have not certified that the HRS and CRS substrate are not of Taiwanese origin, then the Taiwanese AD CORE Order applies.

3d. In the situation where both the importer and exporter have certified that the HRS and CRS are not of Chinese, Korean or Taiwanese origin, then none of these AD CORE Orders apply.
4. Suspension of Liquidation
4a. In the situation where the Chinese AD CORE Order applies: See message 8155303, dated 06/04/2018.

4b. In the situation where the Korean AD CORE Order applies:
CBP shall suspend liquidation of unliquidated entries (and entries for which liquidation has not become final) of corrosion-resistant steel products produced in Vietnam using Korean-origin HRS and/or CRS substrate that were entered, or withdrawn from warehouse, for consumption on or after 08/02/2018 under case number A-552-003.

If the Korean-origin HRS and/or CRS substrate used in the production of CORE in Vietnam was supplied by a Korean manufacturer with a company-specific rate, the importer, producer, or exporter may request establishment of a third-country case number specific to the Korean supplier for such imports. For such imports, CBP shall require an AD cash deposit equal to that Korean manufacturer's and/or exporter's company-specific rate. Such requests from an importer, producer, or exporter should be filed on the record of the proceeding in E&Cs electronic record system ACCESS. CBP may also request establishment of a third-country case number. Requests for establishment of company-specific third-country case numbers from CBP should be submitted through the ACE AD/CVD Portal Inquiry System.

If the Korean CRS and/or HRS substrate supplier does not have its own company-specific rate, such entries should be entered under case number A-552-003-000 and CBP shall require a cash deposit equal to 8.31 percent of the entered value.
4c. In the situation where the Taiwanese AD CORE Order applies:
CBP shall suspend liquidation of unliquidated entries (and entries for which liquidation has not become final) of corrosion-resistant steel products produced in Vietnam using Taiwanese-origin HRS and/or CRS substrate that were entered, or withdrawn from warehouse, for consumption on or after 08/02/2018 under case number A-552-005.

If the Taiwanese-origin HRS and/or CRS substrate used in the production of CORE in Vietnam was supplied by a Taiwanese manufacturer with a company-specific rate, the importer, producer, or exporter may request establishment of a third-country case number specific to the Taiwanese supplier for such imports. For such imports, CBP shall require an AD cash deposit equal to that Taiwanese manufacturer's and/or exporter's company-specific rate. Such requests from an importer, producer, or exporter should be filed on the record of the proceeding in E&Cs electronic record system ACCESS. CBP may also request establishment of a third-country case number. Requests for establishment of company-specific third-country case numbers from CBP should be submitted through the ACE AD/CVD Portal Inquiry System.

If the Taiwanese CRS and/or HRS substrate supplier does not have its own company-specific rate, such entries should be entered under case number A-552-005-000 and CBP shall require a cash deposit equal to 3.66 percent of the entered value.

4d. For unliquidated entries (and entries for which liquidation has not become final) of merchandise covered by paragraphs 4a-4c, entered, or withdrawn from warehouse, for consumption during the period 08/02/2018 (the date of initiation of this anticircumvention inquiry) through 07/18/2019 importers should file a Post Summary Correction with CBP, in accordance with CBP's regulations, regarding conversion of such entries from non-AD type entries to AD-type entries and report those entries using the appropriate third-country case number.

4e. Entries suspended under AD CORE Orders from China, Korea or Taiwan (including the appropriate third-country case numbers) will be liquidated pursuant to applicable administrative reviews of the relevant AD order on CORE or through the automatic liquidation process.
5. Certification Requirements
5a. Eligibility for the certification regarding non-Korean origin HRS and/or CRS substrate:
(i) Except for the companies listed in paragraph 5a(ii), importers and exporters of CORE from Vietnam are eligible for the certification process detailed below and in the Final Determination (84 FR 70948).

(ii) The companies listed below are currently not eligible to certify that their CORE is not made from Korean HRS and/or CRS substrate. Note: These companies may be eligible to certify that their CORE is not made from Chinese HRS and/or CRS substrate.

190 Steel Pipe Co. Ltd.;
Chinh Dai Steel Limited;
Hoa Phat Steel Pipe;
NS BlueScope Vietnam Ltd.;
Perstima Viet Nam;
Prima Commodities Co.;
Southern Steel Sheet Co., Ltd.;
Thai Nguyen Iron and Steel Corp.;
Thong Nhat Flat Steel;
Trung Nguyen Steel Co., Ltd.;
Vietnam Germany Steel JSC;
Vietnam Steel Corp.;
Vietnam Steel Pipe
Vina Kyoei Steel Ltd.

5b. Certification requirements for importers and exporters certifying that the merchandise is produced from non-Korean-origin HRS and/or CRS substrate:

(i) For entries of corrosion-resistant steel products from Vietnam entered, or withdrawn from warehouse, for consumption on or after 08/02/2018 for which the importer claims that the CORE was not produced from Korean-origin finished or unfinished HRS and/or CRS substrate, the importer and exporter are required to meet the certification and documentation requirements detailed in the certifications below in order for no cash deposit to be required on such entries.

(ii) The exporter is further required to provide the importer a copy of the exporter certification and the importer is required to maintain a copy of the exporter certification.

(iii) The importer and third-country exporter are also required to maintain sufficient documentation (as indicated in the certifications) supporting their certifications. The importer and exporter are required to maintain the certifications and supporting documentation for the later of (1) a period of five years from the date of entry or (2) a period of three years after the conclusion of any litigation in United States courts regarding such entries.

(iv) Although the importer will not be required to submit the certifications or supporting documentation to CBP as part of the entry process, the importer and the exporter will be required to present the certifications and supporting documentation to Commerce and/or CBP, as applicable, upon request by the respective agency.

(v) Agents of the importer, such as brokers, are not permitted to make this certification. Where the importer uses a broker to facilitate the entry process, it should obtain the entry number and date of entry from the broker.

(vi) The exporter certification should be completed by the party selling the merchandise manufactured in Vietnam to the United States, which is not necessarily the producer of the product.

(vii) The claims made in the importer and exporter certifications and any supporting documentation are subject to verification by Commerce and/or CBP.
5c. Certification Timing Requirements for Importers and Exporters
(i) For subject merchandise (1) shipped and/or (2) entered, or withdrawn from warehouse, for consumption during the period 08/02/2018 through 07/18/2019, for which certifications are required, importers and exporters each have the option to complete a blanket certification covering multiple entries, individual certifications for each entry, or a combination thereof. Importer and Exporter certifications for these entries should be completed, signed, and dated within 30 days of publication of the final determination.
For companies that were not eligible to certify pursuant to the Preliminary Determination, but are now eligible pursuant to the final determination, we are also extending the period for completion of their certifications for shipments and/or entries from 08/02/2018 through the date of Federal Register publication of the final determination until 30 days after publication of this final determination.

Accordingly, the relevant bullet in the certification should be edited to reflect that the certification was completed within this time frame. For example, in the importer certification the bullet that reads: This certification was completed at or prior to the time of entry, could be edited as follows: The shipments/products referenced herein entered before 07/19/2019. This certification was completed on mm/dd/yyyy, within 30 days of the Federal Register notice publication of the final determination of circumvention.

Similarly, the bullet in the exporter certification that reads 'This certification was completed at or prior to the time of shipment,' could be edited as follows: The shipments/products referenced herein shipped before 07/19/2019. This certification was completed on mm/dd/yyyy, within 30 days of the Federal Register notice publication of the final determination of circumvention. For such entries/shipments, importers and exporters each have the option to complete a blanket certification covering multiple entries/shipments, individual certifications for each entry/shipment, or a combination thereof.

Additionally, the exporter must provide the importer a copy of the exporter certification within 30 days of the final determination publication.

(ii) For shipments and/or entries on or after the date of publication in the Federal Register of the final determination of circumvention, for which certifications are required, importers should complete the required certification at or prior to the date of Entry and exporters should complete the required certification and provide it to the importer at or prior to the date of shipment.

For shipments and/or entries made on or after 10 days after the date of publication in the Federal Register of the final determination of circumvention, exporters should use the certification contained below that incorporates additional information that was not in the preliminary determination certification. Specifically, the certification now requires identification of the producer of the merchandise being exported to the United States.

(iii) For unliquidated entries (and entries for which liquidation has not become final) of merchandise entered as non-AD/CVD type entries (e.g., type 01) that were (1) shipped and/or entered, or withdrawn from warehouse, for consumption during the period 08/02/2018 through 07/18/2019, for which certifications are required, importers should file a Post Summary Correction with U.S. Customs and Border Protection (CBP) in accordance with CBPs regulations, regarding conversion of such entries to AD/CVD type (i.e., types 03, 06, 34 and 38) entries and report those AD/CVD type entries using the third country case number A-552-005. Similarly, the importer should pay cash deposits on those entries consistent with the regulations governing post summary corrections that require payment of additional duties.
6. Certifications
6a. IMPORTER CERTIFICATION
I hereby certify that:
' My name is {INSERT COMPANY OFFICIALS NAME HERE} and I am an official of {INSERT NAME OF IMPORTING COMPANY};
' I have direct personal knowledge of the facts regarding the importation into the Customs territory of the United States of the corrosion-resistant steel products produced in Vietnam that entered under entry number(s) {INSERT ENTRY NUMBER(S)} and are covered by this certification. Direct personal knowledge refers to facts the certifying party is expected to have in its own records. For example, the importer should have direct personal knowledge of the importation of the product (e.g., the name of the exporter) in its records;
' I have personal knowledge of the facts regarding the production of the imported products covered by this certification. Personal knowledge includes facts obtained from another party, (e.g., correspondence received by the importer (or exporter) from the producer regarding the source of the input used to produce the imported products);

' These corrosion-resistant steel products produced in Vietnam do not contain hot-rolled steel and/or cold-rolled steel substrate produced in Korea:
' I understand that {INSERT NAME OF IMPORTING COMPANY} is required to maintain a copy of this certification and sufficient documentation supporting this certification (i.e., documents maintained in the normal course of business, or documents obtained by the certifying party, for example, mill certificates, productions records, invoices, etc.) for the later of (1) a period of five years from the date of entry or (2) a period of three years after the conclusion of any litigation in the United States courts regarding such entries;
' I understand that {INSERT NAME OF IMPORTING COMPANY}is required to provide this certification and supporting records, upon request, to U.S. Customs and Border Protection (CBP) and/or the Department of Commerce (Commerce);
' I understand that {INSERT NAME OF IMPORTING COMPANY} is required to maintain a copy of the exporter's certification for the later of (1) a period of five years from the date of entry or (2) a period of three years after the conclusion of any litigation in United States courts regarding such entries;
' I understand that {INSERT NAME OF IMPORTING COMPANY}is required to maintain and provide a copy of the exporters certification and supporting records, upon request, to CBP and/or Commerce;
' I understand that the claims made herein, and the substantiating documentation, are subject to verification by CBP and/or Commerce;
' I understand that failure to maintain the required certification and/or failure to substantiate the claims made herein will result in:
o suspension of liquidation of all unliquidated entries (and entries for which liquidation has not become final) for which these requirements were not met and
o the requirement that the importer post applicable antidumping duty (AD) cash deposits equal to the rates as determined by Commerce;
' I understand that agents of the importer, such as brokers, are not permitted to make this certification; This certification was completed at or prior to the time of Entry; and
' I am aware that U.S. law (including, but not limited to, 18 U.S.C. :1001) imposes criminal sanctions on individuals who knowingly and willfully make materially false statements to the U.S. government.

Signature
NAME OF COMPANY OFFICIAL

TITLE

DATE
6b. EXPORTER CERTIFICATION
I hereby certify that:
' My name is {INSERT COMPANY OFFICIALS NAME HERE} and I am an official of {INSERT NAME OF EXPORTING COMPANY};
' I have direct personal knowledge of the facts regarding the production and exportation of the corrosion-resistant steel products that were sold to the United States under invoice number(s) INSERT INVOICE NUMBER(S). Direct personal knowledge refers to facts the certifying party is expected to have in its own books and records. For example, an exporter should have direct personal knowledge of the producer's identity and location.
' The {MERCHANDISE} covered this certification was produced by {NAME OF PRODUCING COMPANY}, located at {ADDRESS OF PRODUCING COMPANY}; for each additional company, repeat: {NAME OF PRODUCING COMPANY}, located at {ADDRESS OF PRODUCING COMPANY}.
' These corrosion-resistant steel products produced in Vietnam do not contain hot-rolled steel and/or cold-rolled steel substrate produced in Korea:
' I understand that {INSERT NAME OF EXPORTING COMPANY} is required to maintain a copy of this certification and sufficient documentation supporting this certification (i.e., documents maintained in the normal course of business, or documents obtained by the certifying party, for example, mill certificates, productions records, invoices, etc.) for the later of (1) a period of five years from the date of entry or (2) a period of three years after the conclusion of any litigation in the United States courts regarding such entries;
' I understand that {INSERT NAME OF EXPORTING COMPANY} must provide this Exporter Certification to the U.S. importer by the time of shipment;
' I understand that {INSERT NAME OF EXPORTING COMPANY} is required to provide a copy of this certification and supporting records, upon request, to U.S. Customs and Border Protection (CBP) and/or the Department of Commerce (Commerce);
' I understand that the claims made herein, and the substantiating documentation are subject to verification by CBP and/or Commerce;
' I understand that failure to maintain the required certification and/or failure to substantiate the claims made herein will result in:
o suspension of all unliquidated entries (and entries for which liquidation has not become final) for which these requirements were not met and
o the requirement that the importer post applicable antidumping duty (AD) cash deposits equal to the rates as determined by Commerce;
' This certification was completed at or prior to the time of shipment;
' I am aware that U.S. law (including, but not limited to, 18 U.S.C. :1001) imposes criminal sanctions on individuals who knowingly and willfully make materially false statements to the U.S. government.

Signature
NAME OF COMPANY OFFICIAL

TITLE

DATE

7. If there are any questions by the importing public regarding this message, please contact the Call Center for the Office of AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce at (202) 482-0984. CBP ports should submit their inquiries through authorized CBP channels only. (This message was generated by OVII: CY.)

8. There are no restrictions on the release of this information.

Alexander Amdur