AD/CVD message 0058407 - Notice of preliminary determination of Malaysia-wide circumvention of the antidumping duty order on corrosion-resistant steel products from the People's Republic of China (A-570-026) (A-557-997)

0058407
Feb 27, 2020
Active

Effective Date: Aug 12, 2019

Cite as: 85 FR 8823 • Cite date: Feb 18, 2020

Category: Antidumping • Type: CSDEP • Sub type: CIRAF • Cases: A-223-900 A-520-900 A-552-994 A-557-997 A-570-026

1. On 02/18/2020, Commerce published in the Federal Register its notice of affirmative preliminary determination of Malaysia-wide circumvention of the antidumping duty (AD) order on corrosion-resistant steel products (CORE) from the People's Republic of China (China) (the China CORE AD Order) (85 FR 8823) (Preliminary Determination)

2. Scope of the China CORE AD 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 nonrectangular 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 microalloying 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 investigation 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 order 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 completed in Malaysia from hot-rolled steel (HRS) and/or cold-rolled steel (CRS) substrate input manufactured in China and subsequently exported from Malaysia to the United States (merchandise subject to this inquiry).

CORE completed in Malaysia from HRS and/or CRS from Taiwan also has preliminarily been found to be circumventing the Taiwan CORE AD Order and such merchandise is also subject to certification requirements. Accordingly, for shipments of CORE from Malaysia entered, or withdrawn from warehouse, for consumption on or after 08/12/2019, 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 China CORE AD/CVD Orders apply.

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 Taiwanese origin, regardless of other certifications, the Taiwan CORE AD Order applies. Note for CBP: There is no CVD order on CORE from Taiwan.

3c. In the situation where both the importer and exporter have certified that the HRS and CRS are not of Chinese origin and not of Taiwanese origin, then none of these AD/CVD CORE Orders apply.

4. Suspension of Liquidation

4a. In the situation where the Taiwan CORE AD Order applies:

CBP shall suspend liquidation of unliquidated entries (and entries for which liquidation has not become final) of CORE produced in Malaysia that were entered, or withdrawn from warehouse, for consumption on or after 08/12/2019 under case number A-557-996, which has been set up to accommodate such entries. See the message regarding the preliminary determination of circumvention of the Taiwan CORE AD Order through Malaysia.

4b. In the situation where the China AD CORE Order applies:
The suspension of liquidation and cash deposit requirements set forth in paragraphs 4c and 4d apply to all entries described below that do not meet the certification requirements described in paragraphs 5 through 5c.(iii).

4c. Case number A-577-997 has been set up to accommodate entries of CORE produced in Malaysia that are subject to the China CORE AD Order. Accordingly, CBP shall suspend liquidation, under case number A-577-997, of unliquidated entries (and entries for which liquidation has not become final) of CORE produced in Malaysia that were entered, or withdrawn from warehouse, for consumption on or after 08/12/2019.

If Chinese-origin HRS and/or CRS substrate was used in the production of CORE in Malaysia and was supplied by a Chinese manufacturer with a company-specific rate, the importer, producer, or exporter may request establishment of a third-country case number specific to the Chinese supplier for such imports. For such imports, CBP shall require an AD cash deposit equal to that Chinese 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&C's 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 a Chinese CRS and/or HRS substrate supplier does not have its own company-specific rate, or is not identified, such entries should be entered under case number A-577-997-000 and CBP shall require a cash deposit equal to 199.43 percent of the entered value.

4d. For unliquidated entries (and entries for which liquidation has not become final) of merchandise covered by paragraphs 4b and 4c, entered, or withdrawn from warehouse, for consumption during the period 08/12/2019 (the date of initiation of this anticircumvention inquiry) through 03/07/2020 importers should file a Post Summary Correction with CBP, as appropriate, in accordance with CBP's regulations, regarding conversion of such entries from non-AD/CVD type entries to AD/CVD type entries and report those entries using the appropriate third-country case number. Any such entries that are set for liquidation should be unset immediately.

5. Certification Requirements
If an importer imports CORE from Malaysia and claims that the merchandise was not produced from HRS and/or CRS manufactured in China, the importer and exporter are required to meet the certification and documentation requirements described below in order for no cash deposit to be required pursuant to the AD/CVD order at issue.

5a. Eligibility for the Certification

5a.(i) Except for the companies listed in paragraph 5a(ii), importers and exporters of CORE from Malaysia are eligible for the certification process detailed below and in the Preliminary Determination (85 FR 8823).

5a.(ii) The companies listed below are currently not eligible to certify that their CORE is not made from Chinese HRS or CRS substrate:

FIW Steel Sdn Bhd;
Hsin Kuang Steel Co Ltd;
Nippon EGalv Steel Sdn Bhd;
NS BlueScope Malaysia Sdn Bhd;
YGKI/Yun Kong Galv. Ind/Starshine Holdings Sdn Bhd./ASTEEL Sdn Bhd

5b. Certification Requirements for Importers and Exporters:

5b.(i) For entries of CORE from Malaysia entered, or withdrawn from warehouse, for consumption on or after 08/12/2019 (the date of initiation of this anti-circumvention inquiry) for which the importer claims that the CORE was made from non-Chinese 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 suspension of liquidation and no cash deposit to be required for such entries.

5b.(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.

5b.(iii) The importer and third-country exporter are required to maintain sufficient document 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.

5b.(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.

5b.(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.

5b.(vi) The exporter certification should be completed by the party selling the merchandise manufactured in Malaysia to the United States, which is not necessarily the producer of the product.

5b.(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:

5c.(i) For CORE (1) shipped and/or (2) entered, or withdrawn from warehouse, for consumption during the period 08/12/2019, through 03/07/2020 for which certifications are required, importers and exporters have the option to complete: (a) a blanket certification covering multiple entries, (b) individual certifications for each entry, or (c) a combination thereof. Importer and Exporter certifications for these entries should be completed, signed, and dated no later than 03/19/2020 (within 30 days of publication of the preliminary 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 imports referenced herein entered before March 8, 2020. This certification was completed on mm/dd/yyyy, within 30 days of the Federal Register notice publication of the preliminary determination of circumvention."

Similarly, the bullet in the exporter certification that reads: "This certification was completed by the time of shipment," could be edited as follows: "The shipments/products referenced herein shipped before March 8, 2020. This certification was completed on mm/dd/yyyy, within 30 days of the Federal Register notice publication of the preliminary determination of circumvention."

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

5c.(ii) For subject merchandise (1) shipped and/or (2) entered, or withdrawn from warehouse, for consumption on or after 03/08/2020:

-- the importer certification must be completed, signed and dated by the time of filing of the entry summary for the relevant importation; and

-- the exporter certification must be completed, signed, dated and provided to the importer by the time of shipment.

5c.(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 (2) entered, or withdrawn from warehouse, for consumption during the period 08/12/2019 through 03/07/2020, for which a conversion from non-AD/CVD to AD/CVD type is required; importers should file a Post Summary Correction with U.S. Customs and Border Protection (CBP) (in accordance with CBP's regulations) regarding conversion of such entries to AD/CVD type entries (i.e., types 03, 06, 07, 34 and 38) and report those AD/CVD type entries using case numbers A-557-997. 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. EXPORTER CERTIFICATION

I hereby certify that:

My name is {COMPANY OFFICIAL'S NAME} and I am an official of {NAME OF EXPORTING COMPANY}, located at {ADDRESS OF EXPORTING COMPANY};

I have direct personal knowledge of the facts regarding the production and exportation of the corrosion resistant steel products identified below. "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 corrosion resistant steel products covered by this certification were 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}

The corrosion resistant steel products produced in Malaysia were not manufactured using hot-rolled steel and/or cold-rolled steel substrate from China;

This certification applies to the following sales:
{Repeat this block as many times as necessary}

Producer:
Invoice #:
Invoice Line Item #:

The corrosion resistant steel products covered by this certification were sold to {NAME OF U.S. CUSTOMER}, located at {ADDRESS OF U.S. CUSTOMER}.

The corrosion resistant steel products covered by this certification were shipped to {NAME OF PARTY TO WHOM MERCHANDISE WAS SHIPPED}, located at {ADDRESS OF SHIPMENT}.

I understand that {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, production 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 {NAME OF EXPORTING COMPANY} must provide a copy of this Exporter Certification to the U.S. importer by the time of shipment;

I understand that {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, and/or failure to allow CBP and/or Commerce to verify the claims made herein, may result in a de facto determination that all sales to which this certification applies are within the scope of the antidumping/countervailing duty order on corrosion resistant steel products from China. I understand that such finding will result in:

- suspension of all unliquidated entries (and entries for which liquidation has not become final) for which these requirements were not met; and

- the requirement that the importer post applicable antidumping duty and/or countervailing duty cash deposits (as appropriate) equal to the rates as determined by Commerce;

- the revocation of {NAME OF EXPORTING COMPANY}'s privilege to certify future exports of corrosion resistant steel products from Malaysia as not manufactured using hot-rolled steel and/or cold-rolled steel substrate from China.

This certification was completed at or prior to the time of shipment; and

I am aware that U.S. law (including, but not limited to, 18 U.S.C. section 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. IMPORTER CERTIFICATION

I hereby certify that:

My name is {IMPORTING COMPANY OFFICIAL'S NAME} and I am an official of {NAME OF IMPORTING COMPANY}, located at {ADDRESS 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 Malaysia that entered under entry number(s), identified below, and which 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;

The corrosion resistant steel products covered by this certification were exported by {NAME OF EXPORTING COMPANY}, located at {ADDRESS OF EXPORTING COMPANY}.

If the importer is acting on behalf of the first U.S. customer, complete this paragraph:

The corrosion resistant steel products covered by this certification were imported by {NAME OF IMPORTING COMPANY} on behalf of {NAME OF U.S. CUSTOMER}, located at {ADDRESS OF U.S. CUSTOMER}.

The corrosion resistant steel products covered by this certification were shipped to {NAME OF PARTY TO WHOM MERCHANDISE WAS FIRST SHIPPED IN THE UNITED STATES}, located at {ADDRESS OF SHIPMENT}.

I have personal knowledge of the facts regarding the production of the corrosion resistant steel products identified below. "Personal knowledge" includes facts obtained from another party, (e.g., correspondence received by the importer (or exporter) from the producer regarding the country of manufacture of the imported products);

The corrosion resistant steel products covered by this certification were 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}.

The corrosion resistant steel products covered by this certification were not manufactured using hot-rolled steel and/or cold-rolled steel substrate from China.

This certification applies to the following entries:
{Repeat this block as many times as necessary}
Producer:
Entry Summary #:
Entry Summary Line Item #:
Invoice #:
Invoice Line Item #:

I understand that {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, production 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 {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 {NAME OF IMPORTING COMPANY} is required to maintain a copy of the exporter's certification (attesting to the production and/or export of the imported merchandise identified above), and any supporting records provided by the exporter to the importer, 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 {NAME OF IMPORTING COMPANY}is required to maintain and, upon request, provide a copy of the exporter's certification and any supporting records provided by the exporter to the importer, 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 certifications, and/or failure to substantiate the claims made herein, and/or failure to allow CBP and/or Commerce to verify the claims made herein, may result in a de facto determination that all entries to which this certification applies are within the scope of the antidumping/countervailing duty order on corrosion resistant steel products from China. I understand that such finding will result in:
- suspension of liquidation of all unliquidated entries (and entries for which liquidation has not become final) for which these requirements were not met; and;

- the requirement that the importer post applicable antidumping duty and/or countervailing duty cash deposits (as appropriate) equal to the rates determined by Commerce;

- the revocation of {NAME OF IMPORTING COMPANY}'s privilege to certify future imports of corrosion resistant steel products from Malaysia as not manufactured using hot-rolled steel and/or cold-rolled steel substrate from China.

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. section 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 OIII: SL.)

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

Alexander Amdur.