2019-27814. Certain Corrosion-Resistant Steel Products From the Republic of Korea: Affirmative Final Determinations of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders  

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    AGENCY:

    Enforcement and Compliance, International Trade Administration, Department of Commerce.

    SUMMARY:

    The Department Commerce (Commerce) determines that imports of certain corrosion-resistant steel products (CORE), produced in the Socialist Republic of Vietnam (Vietnam) using carbon hot-rolled steel (HRS) and/or cold-rolled steel flat products (CRS) manufactured in the Republic of Korea (Korea), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on CORE from Korea.

    DATES:

    Applicable December 26, 2019.

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    FOR FURTHER INFORMATION CONTACT:

    Chien-Min Yang, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-5484.

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    SUPPLEMENTARY INFORMATION:

    Background

    On July 10, 2019, Commerce published the Preliminary Determinations[1] of circumvention of the Korea CORE Orders.[2] A summary of the events that occurred since Commerce published the Preliminary Determinations, as well as a full discussion of the issues raised by parties for these final determinations, may be found in the Issues and Decision Memorandum.[3] The IDM is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at http://access.trade.gov,, and it is available to all parties in the Central Records Unit, room B8024 of the main Commerce building. In addition, a complete version of the IDM can be accessed directly at http://enforcement.trade.gov/​frn/​. The signed and electronic versions of the IDM are identical in content.

    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 complete description of the scope of the orders, see the IDM.[4]

    Scope of the Anti-Circumvention Inquiries

    These anti-circumvention inquiries cover CORE produced in Vietnam from HRS or CRS substrate input manufactured in Korea and subsequently exported from Vietnam to the United States (merchandise under consideration). These final rulings apply to all shipments of merchandise under consideration on or after the date of initiation of these inquiries. Importers and exporters of CORE produced in Vietnam using: (1) HRS manufactured in Vietnam or third countries; (2) CRS manufactured in Vietnam using HRS produced in Vietnam or third countries; and/or (3) CRS manufactured in third countries, and who qualify to Start Printed Page 70949participate in the certification process, must certify that the HRS or CRS processed into CORE in Vietnam did not originate in Korea, as provided for in the certifications attached to the Federal Register notice. Otherwise, their merchandise may be subject to antidumping and countervailing duties in these inquiries.

    Methodology

    Commerce is conducting these anti-circumvention inquiries in accordance with section 781(b) of the Tariff Act of 1930, as amended (the Act).

    Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in these inquiries are addressed in the Issues and Decision Memorandum. A list of the issues raised is attached to this notice as Appendix I.

    Final Affirmative Determinations of Circumvention

    We determine that exports to the United States of CORE produced in Vietnam from HRS or CRS substrate manufactured in Korea are circumventing the Korea CORE Orders. We therefore find it appropriate to determine that this merchandise falls within the Korea CORE Orders, and to instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of any entries of CORE from Vietnam produced using HRS or CRS substrate manufactured in Korea.

    Continuation of Suspension of Liquidation

    As stated above, Commerce has made affirmative determinations of circumvention of the Korea CORE Orders by exports to the United States of CORE produced in Vietnam using Korea-origin HRS or CRS substrate. This circumvention finding applies to CORE produced by any Vietnamese company using Korea-origin HRS or CRS substrate. In accordance with 19 CFR 351.225(l)(3), Commerce will direct CBP to continue to suspend liquidation and to require a cash deposit of estimated duties on unliquidated entries of CORE produced in Vietnam using Korea-origin HRS or CRS substrate that were entered, or withdrawn from warehouse, for consumption on or after August 2, 2018, the date of initiation of these anti-circumvention inquiries.[5]

    The suspension of liquidation and cash deposit instructions will remain in effect until further notice. In order to prevent evasion, and because the AD and CVD rates established in China CORE Anti-Circumvention Finals are higher than the rates established for CORE from Korea and Taiwan, and the rates established for CORE from Korea are higher than the AD rate established for CORE from Taiwan, Commerce will instruct CBP to suspend liquidation and collect cash deposits in the following manner. In the situation where no certification regarding the origin of the substrate is maintained for an entry, and AD/CVD orders from three countries (China, Korea, or Taiwan) potentially apply to that entry, Commerce will instruct CBP to suspend the entry and collect cash deposits at the AD rate established for the China-wide entity (199.43 percent) and the CVD rate established for the China all-others rate (39.05 percent), pursuant to the China CORE Circumvention Finals.[6] In the situation where a certification is maintained for the AD/CVD orders on CORE from China (stating that the merchandise was not produced from HRS and/or CRS from China), but no other certification is maintained, Commerce intends to instruct CBP to suspend the entry and collect cash deposits at the AD and CVD all-others rates (i.e., 8.31 percent and 1.19 percent, respectively) applicable to the AD/CVD orders on CORE from Korea.[7]

    CORE produced in Vietnam from HRS or CRS substrate that is not of Korean origin is not subject to these inquiries. Therefore, cash deposits are not required for such merchandise. However, CORE produced in Vietnam from HRS and/or CRS from China is subject to the AD/CVD orders on CORE from China, and CORE produced in Vietnam from HRS and/or CRS from Taiwan is subject to the AD order on CORE from Taiwan. If an importer imports CORE from Vietnam and claims that the CORE was produced from non-Korean HRS or CRS substrate, in order not to be subject to cash deposit requirements, the importer and exporter are required to meet the certification and documentation requirements described in Appendix II. Exporters of CORE produced in Vietnam from non-Korea-origin HRS or CRS substrate must prepare and maintain an Exporter Certification and documentation supporting the Exporter Certification (see Appendix IV). In addition, importers of such CORE must prepare and maintain an Importer Certification (see Appendix III) as well as documentation supporting the Importer Certification. In addition to the Importer Certification, the importer must also maintain a copy of the Exporter Certification (see Appendix IV) and relevant supporting documentation from its exporter of CORE produced from non-Korea-origin HRS or CRS substrate.

    For these final determinations, we determine that the following companies are not eligible for the certification process: 190 Steel Pipe Co., Ltd.; Chinh Dai Steel Limited; Dai Thien Loc Corporation; Formosa Ha Tinh Corporation; Hoa Phat Steel Pipe Co.; Hoa Sen Group; Perstima Viet Nam; Prima Commodities Co.; Thai Nguyen Iron and Steel Corp.; Thong Nhat Flat Steel; Ton Dong A Corp.; Trung Nguyen Steel Co, Ltd.; Vietname Germany Steel JSC; Vietnam Steel Corp.; Vietnam Steel Pipe; Vian Kyoei Steel Ltd.; Vina One Steel Manufacturing; NS BlueScope Vietnam Ltd.; and Southern Steel Sheet Co., Ltd. Accordingly, importers of CORE from Vietnam that is produced and/or exported by these ineligible companies are similarly ineligible for the certification process with regard to those imports. Additionally, exporters are not eligible to certify shipments of merchandise produced by the above-listed companies. Accordingly, Hoa Phat Group Joint Stock Company and Hoa Phat Steel Sheet are not eligible to certify shipments of CRS produced by Hoa Phat Steel Pipe Co.[8]

    Notification Regarding Administrative Protective Orders

    This notice will serve as the only reminder to all parties subject to administrative protective order (APO) of their responsibility concerning the destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of return/Start Printed Page 70950destruction or APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation.

    Notification to Interested Parties

    These determinations are issued and published in accordance with section 781(b) of the Act and 19 CFR 351.225(f).

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    Dated: December 13, 2019.

    Jeffrey I. Kessler,

    Assistant Secretary for Enforcement and Compliance.

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    Appendix I

    List of Topics Discussed in the Issues and Decision Memorandum

    I. Summary

    II. Background

    III. Scope of the Korea Core Orders

    IV. Scope of the Anti-Circumvention Inquiries

    V. Changes Since the Korea Core Anti-Circumvention Preliminary Determination

    VI. Statutory Framework

    VII. Use of Facts Available and Facts Available With an Adverse Inference

    VIII. Anti-Circumvention Determinations

    IX. Discussion of the Issues

    Comment 1: Whether Companies That Did Not Receive Commerce's Quantity and Value (Q&V) Questionnaire Should Be Permitted to Participate in the Certification Process

    Comment 2: Whether Commerce Lacks Statutory Authority to Apply AFA Where Respondents Did Not Deprive Commerce of Information Regarding Its Ability to Trace Inputs

    Comment 3: Whether Commerce's Use of AFA Impermissibly Departs Without Explanation from Its Decision in the China Anti-Circumvention Inquiries.

    Comment 4: Whether Precluding Certain Importers and Exporters From Participating in the Certification Process is Inappropriate and Unfairly Punishes Importers

    Comment 5: Whether Commerce Should Allow Additional Time for Completing Certification for Pre-Preliminary Determinations Entries

    Comment 6: Whether Country-Wide Determinations Are Justified

    Comment 7: Whether Commerce's Interpretation of Section 781(b) of the Act Supports the CORE Production Process in Vietnam and Expands the Scope of the Korea CORE Orders

    Comment 8: Whether Commerce Should Amend the Exporter Certification Language to Prevent Funneling

    Comment 9: Whether to Apply AFA to Certain Vietnamese Producers That Are Affiliated with Those That Are Deemed Non-Responsive

    Comment 10: Whether Commerce Should Preclude Companies That Failed to Cooperate in Both the CORE from China and CORE from Taiwan Inquiries from Participating in the Certification Regime

    Comment 11: Whether to Apply the Highest the Petition Rate or Investigation Calculated Rate as the Cash Deposit Rate for Non-Responsive Companies

    Comment 12: Whether Commerce Should Continue to Apply AFA to SSSC

    Comment 13:Whether Commerce Should Apply Section 232 Duties Against the Vietnam CORE Products Found Using Korean Substrates

    X. Recommendation

    Appendix II

    Certification Requirements

    If an importer imports certain corrosion-resistant steel products (CORE) from the Socialist Republic of Vietnam (Vietnam) and claims that the CORE was not produced from hot-rolled steel and/or cold-rolled steel substrate (substrate) manufactured in Korea, the importer is required to complete and maintain the importer certification attached hereto as Appendix III and all supporting documentation. Where the importer uses a broker to facilitate the entry process, it should obtain the entry number from the broker. Agents of the importer, such as brokers, however, are not permitted to make this certification on behalf of the importer.

    The exporter is required to complete and maintain the exporter certification, attached as Appendix IV, and is further required to provide the importer a copy of that certification and all supporting documentation.

    As discussed in the Issues and Decision Memorandum for these final determinations, we are extending the period for completing certifications for shipments and/or entries during the August 2, 2018 through July 18, 2019 period established in the Preliminary Determinations. Accordingly, for shipments and/or entries on or after August 2, 2018 through July 18, 2019 for which certifications are required, importers and exporters should complete the required certification within 30 days of the publication of these final determinations notice in the Federal Register.

    For companies that were not eligible to certify pursuant to the Preliminary Determinations, but are now eligible pursuant to the final determinations, we are also extending the period for completion of their certifications for shipments and/or entries from August 2, 2018 through the date of Federal Register publication of the final determinations until 30 days after publication of these determinations.

    Accordingly, where appropriate, the relevant bullet in the certification should be edited to reflect that the certification was completed within the time frame specified above. For example, the bullet in the importer certification 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 July 19, 2019. This certification was completed on mm/dd/yyyy, within 30 days of the Federal Register notice publication of the final determinations 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 July 19, 2019. This certification was completed on mm/dd/yyyy, within 30 days of the Federal Register notice publication of the final determinations 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.

    For shipments and/or entries on or after the date of publication of this notice in the Federal Register, 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 of these final determinations, parties should use the exporter and importer certifications contained below that incorporate additional information that was not in the preliminary determinations certifications. Specifically, the exporter certification now requires identification of the producer of the merchandise being exported to the United States and, also notes that CVD deposits may be required in addition to AD deposits as a result of the failure to maintain the required certification or the inability to substantiate the claims made in the certification. Similarly, the importer certification also notes that CVD deposits may be required in addition to AD deposits as a result of the failure to maintain the required certification or the inability to substantiate the claims made in the certification. The importer and Vietnamese exporter are also required to maintain sufficient documentation supporting their certifications. The importer will not be required to submit the certifications or supporting documentation to U.S. Customs and Border Protection (CBP) as part of the entry process at this time. However, 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. Additionally, the claims made in the certifications and any supporting documentation are subject to verification by Commerce and/or CBP. 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.

    In the situation where no certification is maintained for an entry, and AD/CVD orders from three countries (China, Korea, or Taiwan) potentially apply to that entry, Commerce intends to instruct CBP to suspend the entry and collect cash deposits at the China CORE Circumvention Final rates (i.e., the AD rate established for the China-wide entity (199.43 percent) and the CVD rate established for China all-others rate (39.05 percent)).[9] In the situation where a Start Printed Page 70951certification is maintained for the AD/CVD orders on CORE from China (stating that the merchandise was not produced from HRS and/or CRS from China), but no other certification is maintained, then Commerce intends to instruct CBP to suspend the entry and collect cash deposits at the AD and CVD all-others rates (i.e., 8.31 percent and 1.19 percent, respectively) applicable to the AD/CVD orders on CORE from Korea.[10]

    Appendix III

    Importer Certification

    I hereby certify that:

    • My name is {INSERT COMPANY OFFICIAL'S 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 exporter's 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:

    ○ 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/countervailing duty (AD and/or CVD) 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

    Appendix IV

    Exporter Certification

    I hereby certify that:

    • My name is {INSERT COMPANY OFFICIAL'S 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:

    ○ 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/antidumping duty (AD and/or CVD) cash deposits equal to the rates as determined by Commerce;

    • 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. 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

    End Supplemental Information

    Footnotes

    1.  See Certain Corrosion-Resistant Steel Products from Republic of Korea: Affirmative Preliminary Determination of Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 84 FR 32871 (July 10, 2019) (Preliminary Determinations) and accompanying Preliminary Decision Memorandum.

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    2.  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); and 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, Korea CORE Orders).

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    3.  See Memorandum, “Issues and Decision Memorandum for Anti-Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders on Certain Corrosion-Resistant Steel Products from the Republic of Korea,” dated concurrently with, and hereby adopted by, this notice (IDM).

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    4.  See IDM.

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    5.  See Certain Corrosion-Resistant Steel Products from the Republic of Korea and Taiwan: Initiation of AntiCircumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83 FR 37785 (August 2, 2018) (Initiation Notice).

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    6.  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); and 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, China CORE Orders).

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    7.  See Certain Corrosion-Resistant Steel Flat Products from India, Italy, the People's Republic of China, the Republic of Korea, and Taiwan: Amended Final Affirmative Antidumping Duty Determination/or India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25, 2016). The “all others rate” was subsequently amended as the result of litigation. See Certain Corrosion-Resistant Steel Products from the Republic of Korea: Notice of Court Decision Not in Harmony with Final Determination of Investigation and Notice of Amended Final Results, 83 FR 39054 (August 8, 2018); 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, Korea CORE Orders).

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    8.  See IDM at Comment 11.

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    9.  See China CORE Circumvention Final, 83 FR at 23896.

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    10.  See China CORE Orders.

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    [FR Doc. 2019-27814 Filed 12-23-19; 8:45 am]

    BILLING CODE 3510-DS-P

Document Information

Published:
12/26/2019
Department:
International Trade Administration
Entry Type:
Notice
Document Number:
2019-27814
Dates:
Applicable December 26, 2019.
Pages:
70948-70951 (4 pages)
Docket Numbers:
A-580-878, C-580-879
PDF File:
2019-27814.Pdf
Supporting Documents:
» Requests for Nominations: Trade Promotion Coordinating Committee
» Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Drawn Stainless Steel Sinks from the People's Republic of China; Recission
» Determinations of Sales at Less than Fair Value: Certain Carbon and Alloy Steel Cut-to-Length Plate from Brazil, South Africa, and Republic of Turkey
» Meetings: United States Travel and Tourism Advisory Board
» Investigations; Determinations, Modifications, and Rulings, etc.: Solid Fertilizer Grade Ammonium Nitrate from the Russian Federation
» Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Heavy Walled Rectangular Welded Carbon Steel Pipes and Tubes from Republic of Turkey
» Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Carbon and Alloy Steel Cut-to-Length Plate from People's Republic of China
» Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Pasta from Italy
» Determinations of Sales at Less Than Fair Value: Truck and Bus Tires From People's Republic of China
» Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Initiation of Five-Year (Sunset) Review