[Federal Register Volume 76, Number 91 (Wednesday, May 11, 2011)]
[Notices]
[Pages 27304-27305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-11571]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-932]


Certain Steel Threaded Rod From the People's Republic of China: 
Notice of Court Decision Not in Harmony With the Final Determination of 
Sales at Less-Than-Fair-Value and Notice of Amended Final Determination 
of Sales at Less-Than-Fair-Value and Amended Antidumping Duty Order 
Pursuant to Court Decision

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: On April 21, 2011, in litigation arising out of the Department 
of Commerce's (``Department'') final determination in the less-than-
fair-value (``LTFV'') investigation of certain steel threaded rod 
(``steel threaded rod'') from the People's Republic of China 
(``PRC''),\1\ the United States Court of International Trade (``CIT'') 
sustained the Department's results of redetermination. Pursuant to the 
CIT's remand order in Jiaxing Brother Fastener Co., Ltd. v. United 
States, Consol. Court No. 09-00205, Slip Op. 10-128 (November 16, 2010) 
(``Jiaxing Brother''), the Department found that the financial 
statements of the Indian company, Rajratan Global Wire Ltd. 
(``Rajratan''), are an appropriate source of data for calculating the 
surrogate financial ratios. See Jiaxing Brother Fastener Co., Ltd. v. 
United States, Consol. Court No. 09-00205, Slip Op. 11-44 (April 21,

[[Page 27305]]

2011) (``Jiaxing Brother II''). Consistent with the decision of the 
United States Court of Appeals for the Federal Circuit (``CAFC'') in 
Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 1990) 
(``Timken''), as clarified by Diamond Sawblades Mfrs. Coalition v. 
United States, 626 F.3d 1374 (Fed. Cir. 2010) (``Diamond Sawblades''), 
the Department is notifying the public that the final judgment in this 
case is not in harmony with the Department's Final Determination and is 
amending its Final Determination and Antidumping Duty Order.
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    \1\ See Certain Steel Threaded Rod from the People's Republic of 
China: Final Determination of Sales at Less Than Fair Value, 74 FR 
8907 (February 27, 2009) (``Final Determination'') and Certain Steel 
Threaded Rod from the People's Republic of China: Notice of 
Antidumping Duty Order, 74 FR 17154 (April 14, 2009) (``Antidumping 
Duty Order'').
    .

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DATES: Effective Date: May 2, 2011.

FOR FURTHER INFORMATION CONTACT: Toni Dach, AD/CVD Operations, Office 
9, Import Administration, International Trade Administration, U.S. 
Department of Commerce, 14th Street and Constitution Avenue, NW., 
Washington DC 20230; telephone (202) 482-1655.

SUPPLEMENTARY INFORMATION: 

Background

    On February 27, 2009, the Department published the Final 
Determination of the investigation of steel threaded rod from the PRC. 
See Final Determination. In calculating surrogate financial ratios, 
pursuant to section 773(c) of the Tariff Act of 1930, as amended (the 
``Act''), the Department used financial statements for three Indian 
companies found by the Department to be producers of merchandise 
comparable to steel threaded rod. The Department determined not to use 
Rajratan's financial statement as part of that calculation upon 
concluding that Rajratan produced wire rod, a material input in the 
production of subject merchandise, which the Department found not to be 
comparable to finished steel products such as steel threaded rod. See 
Final Determination and accompanying Issues and Decision Memorandum at 
Comment 1.
    After the Department published the Antidumping Duty Order, the RMB/
IFI Group and its producer, Jiaxing Brother Fastener Co., Ltd. 
(collectively, ``the RMB/IFI Group''), filed a timely action with the 
CIT challenging the Department's selection of financial statements in 
calculating surrogate financial ratios.
    On November 16, 2010, the CIT issued its decision sustaining the 
Department's Final Determination except for the determination to reject 
the financial statement of Rajratan as part of its calculation of 
surrogate financial ratios. The CIT found that record evidence did not 
support the Department's conclusion that Rajratan manufactured wire 
rod, which is used as an input in the production of steel threaded rod. 
See Jiaxing Brother at 27-28. The CIT thus remanded the issue to the 
Department with instructions to reconsider the appropriateness of using 
Rajratan's financial statement in the calculation of surrogate 
financial ratios by analyzing the comparability of Rajratan's 
merchandise to the subject merchandise. Id. at 30.
    On December 16, 2010, the Department issued its final results of 
redetermination pursuant to Jiaxing Brother. Pursuant to the CIT's 
remand order in Jiaxing Brother, we reexamined the Rajratan financial 
statements and found that Rajratan purchases wire rod, in addition to 
other raw materials, and produces downstream products from that wire 
rod input, namely p.c. wire and tyre bead wire. Thus, we determined on 
remand that Rajratan further manufactures wire rod into finished (or 
semi-finished) steel products in a manner similar to steel threaded rod 
and found that Rajratan is a producer of steel products comparable to 
the subject merchandise. As a consequence, because Rajratan is a 
producer of comparable steel products, we find that its production 
experience, and therefore financial experience, is comparable to that 
of steel threaded rod producers, and included its financial ratios in 
the average calculation of surrogate financial ratios.
    The CIT sustained the Department's remand redetermination on April 
21, 2011. See Jiaxing Brother II.

Timken Notice

    In its decision in Timken, 893 F.2d at 341, as clarified by Diamond 
Sawblades, the CAFC has held that, pursuant to section 516A(e) of the 
Act, the Department must publish a notice of a court decision that is 
not ``in harmony'' with a Department determination and must suspend 
liquidation of entries pending a ``conclusive'' court decision. The 
CIT's April 21, 2011, judgment sustaining the Department's remand 
redetermination that Rajratan is a producer of steel products 
comparable to the subject merchandise constitutes a final decision of 
that court that is not in harmony with the Department's Final 
Determination. This notice is published in fulfillment of the 
publication requirements of Timken. Accordingly, the Department will 
suspend liquidation of the subject merchandise effective May 2, 2011, 
pending the expiration of the period of appeal or, if appealed, pending 
a final and conclusive court decision or pending establishment of a new 
cash deposit rate in a completed administrative review of the 
Antidumping Duty Order.

Amended Final Determination and Order

    Because there is now a final court decision with respect to the 
inclusion of Rajratan in the average calculation of surrogate financial 
ratios, RMB/IFI Group's revised cash deposit rate is 47.37%. In 
accordance with sections 735(c)(1)(B) of the Act, the Department will 
instruct U.S. Customs and Border Protection to collect cash deposits at 
the rate indicated.
    This notice is issued and published in accordance with sections 
516A(c)(1), 735(d), 736(a), and 777(i)(1) of the Act.

    Dated: May 4, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
[FR Doc. 2011-11571 Filed 5-10-11; 8:45 am]
BILLING CODE 3510-DS-P