[Federal Register Volume 77, Number 16 (Wednesday, January 25, 2012)]
[Notices]
[Pages 3737-3739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1531]
[[Page 3737]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-552-813]
Steel Wire Garment Hangers From the Socialist Republic of
Vietnam: Initiation of Countervailing Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: January 25, 2012.
FOR FURTHER INFORMATION CONTACT: Robert Copyak or John Conniff, AD/CVD
Operations, Office 3, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
2209 or (202) 482-1009, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On December 29, 2011, the Department of Commerce (Department)
received a countervailing duty (CVD) petition concerning imports of
steel wire garment hangers from the Socialist Republic of Vietnam
(Vietnam) filed in proper form by M&B Metal Products Company, Inc.,
Innovative Fabrication LLC/Innovative Fabrication LLC/Indy Hanger, and
U.S. Hanger Company, LLC (collectively, Petitioners). See Petition for
the Imposition of Antidumping Duties on Steel Wire Garment Hangers from
Taiwan and the Social Republic of Vietnam and the Imposition of
Countervailing Duties Against Steel Wire Garment Hangers from the
Socialist Republic of Vietnam, dated December 29, 2011 (Petition).
On January 5, 2012, the Department issued a questionnaire
requesting information and clarification of certain areas of the
general issues and CVD sections of the Petition. Based on the
Department's requests, Petitioners filed a supplement to the Petition
regarding the CVD section on January 9, 2012, and the general issues on
January 10, 2012.
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), Petitioners allege that producers/exporters of steel
wire garment hangers from Vietnam received countervailable subsidies
within the meaning of sections 701 and 771(5) of the Act, and that
imports from these producers/exporters materially injure, and threaten
further material injury to, an industry in the United States.
The Department finds that Petitioners filed the Petition on behalf
of the domestic industry because Petitioners are interested parties, as
defined in section 771(9)(C) of the Act, and have demonstrated
sufficient industry support with respect to the investigation that it
requests the Department to initiate. See ``Determination of Industry
Support for the Petition,'' below.
Period of Investigation
The period of investigation (POI) is January 1, 2011, through
December 31, 2011.
Scope of the Investigation
The products covered by this investigation are steel wire garment
hangers from Vietnam. For a full description of the scope of the
investigation, see the ``Scope of the Investigation,'' in Appendix I of
this notice.
Comments on Scope of the Investigation
During our review of the Petition, we discussed the scope with
Petitioners to ensure that it is an accurate reflection of the products
for which the domestic industry is seeking relief. Petitioners
submitted revised scope language on January 11, 2011.
As discussed in the preamble to the regulations, we are setting
aside a period for interested parties to raise issues regarding product
coverage. See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997). The Department encourages interested parties to
submit such comments by February 7, 2012, which is twenty calendar days
from the signature date of this notice. All comments must be filed on
the records of both the antidumping duty (AD) and CVD investigations.
Comments must be filed electronically through Import Administration's
Antidumping and Countervailing Duty Centralized Electronic Service
System (IA ACCESS), http://iaaccess.trade.gov, in accordance with 19
CFR 351.303. See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011). The period of scope
consultations is intended to provide the Department with ample
opportunity to consider all comments and to consult with parties prior
to the issuance of the preliminary determination.
Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, on January 3,
2012, the Department invited representatives of the Government of
Vietnam (GOV) for consultations with respect to the CVD Petition. On
January 10, 2012, the Department held consultations with
representatives of the GOV. See Memorandum to the File, regarding
``Consultations with Officials from the Government of Vietnam on the
Countervailing Duty Petition Regarding Steel Wire Garment Hangers,''
dated January 11, 2012 (Consultations Memorandum).
Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the industry.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both the Department and
the ITC must apply the same statutory definition regarding the domestic
like product (see section 771(10) of the Act), they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law. See USEC, Inc. v. United States, 132 F.
Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United
States, 688 F. Supp. 639, 644
[[Page 3738]]
(CIT 1988)), aff'd 865 F.2d 240 (Fed. Cir. 1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioners do not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we have determined that steel wire garment hangers
constitute a single domestic like product and we have analyzed industry
support in terms of that domestic like product. For a discussion of the
domestic like product analysis in this case, see Countervailing Duty
Investigation Initiation Checklist: Steel Wire Garment Hangers from
Vietnam (Vietnam CVD Checklist) at Attachment II, on file
electronically in the Central Records Unit via IA ACCESS.
In determining whether Petitioners have standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of Investigation,'' in Appendix I of this
notice. To establish industry support, Petitioners provided their
production of the domestic like product in 2010, and compared their
shipments to the estimated total production of the domestic like
product for the entire domestic industry. To estimate total 2010
production of the domestic like product, Petitioners used their own
data and industry specific knowledge. We have relied upon data
Petitioners provided for purposes of measuring industry support. For
further discussion, see Vietnam CVD Checklist at Attachment II.
Our review of the information provided in the Petition,
supplemental submissions, and other information readily available to
the Department indicates that Petitioners have established industry
support. First, the Petition established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, the Department is
not required to take further action in order to evaluate industry
support (e.g., polling). See section 702(c)(4)(D) of the Act; see also
Vietnam CVD Checklist at Attachment II. Second, the domestic producers
(or workers) have met the statutory criteria for industry support under
section 702(c)(4)(A)(i) of the Act because the domestic producers (or
workers) who support the Petition account for at least 25 percent of
the total production of the domestic like product. See Vietnam CVD
Checklist at Attachment II. Finally, the domestic producers (or
workers) have met the statutory criteria for industry support under
section 702(c)(4)(A)(ii) of the Act because the domestic producers (or
workers) who support the Petition account for more than 50 percent of
the shipments of the domestic like product produced by that portion of
the industry expressing support for, or opposition to, the Petition.
See Vietnam CVD Checklist at Attachment II. Accordingly, the Department
determines that the Petition was filed on behalf of the domestic
industry within the meaning of section 702(b)(1) of the Act. See
Vietnam CVD Checklist at Attachment II.
The Department finds that Petitioners filed the Petition on behalf
of the domestic industry because they are interested parties as defined
in section 771(9)(C) of the Act and they have demonstrated sufficient
industry support with respect to the countervailing duty investigation
they are requesting the Department initiate. See Vietnam CVD Checklist
at Attachment II.
Injury Test
Because Vietnam is a ``Subsidies Agreement country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from Vietnam materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
Petitioners allege that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, Petitioners allege
that subject imports exceed the negligibility threshold provided for
under section 771(24)(A) of the Act.
Petitioners contend that the industry's injured condition is
illustrated by reduced market share, reduced shipments, reduced
capacity, underselling and price depression or suppression, a decline
in financial performance, lost sales and revenue, an increase in import
penetration, and threat of future injury. See Vietnam CVD Initiation
Checklist at Attachment III, Analysis of Allegations and Evidence of
Material Injury and Causation for the Petition Covering Steel Wire
Garment Hangers from Taiwan and Vietnam. We have assessed the
allegations and supporting evidence regarding material injury, threat
of material injury, and causation, and we have determined that these
allegations are properly supported by adequate evidence and meet the
statutory requirements for initiation. See Vietnam CVD Initiation
Checklist at Attachment III.
Initiation of Countervailing Duty Investigation
Section 702(b)(i) of the Act requires the Department to initiate a
CVD proceeding whenever an interested party files a petition on behalf
of an industry that: (1) Alleges the elements necessary for an
imposition of a duty under section 701(a) of the Act; and (2) is
accompanied by information reasonably available to the petitioner(s)
supporting the allegations. The Department has examined the CVD
Petition on garment hangers from Vietnam and finds that it complies
with the requirements of section 702(b) of the Act. Therefore, in
accordance with section 702(b) of the Act, we are initiating a CVD
investigation to determine whether manufacturers, producers, or
exporters of garment hangers in Vietnam receive countervailable
subsidies. For a discussion of evidence supporting our initiation
determination, see Initiation Checklist.
We are including in our investigation the following programs
alleged in the Petition to have provided countervailable subsidies to
producers and exporters of the subject merchandise in Vietnam:
Loan Program
Preferential Lending to Exporters
Provision of Goods or Services for Less Than Adequate Remuneration
(LTAR)
Land Rent Reduction/Exemption for Foreign Invested
Enterprises (FIEs)
Land Rent Reduction/Exemption for Exporters
Land Preferences for Enterprises in Encouraged Industries
or Industrial Zones
Provision of Water for LTAR in Industrial Zones
Provision of Wire Rod for LTAR
Grant Program
Grants under the Export Promotion Program
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Tax Programs
Income Tax Preferences for FIEs
Income Tax Preferences for Enterprises in Industrial Zones
Income Tax Refund for Reinvestment By FIEs
Import Duty Exemptions on Imports of Goods for Encouraged
Projects
Import Duty Exemptions for Raw Materials for Exported
Goods
Import Duty Preferences for FIEs, Including Goods to
Create Fixed Assets & Raw Materials \1\
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\1\ Initially, Petitioners separately alleged the following
three programs, Import Duty Preferences for FIEs, Import Duty
Exemptions for FIEs Using Imported Goods to Create Fixed Assets, and
Import Duty Exemption on Raw Materials for FIEs Operating in
Designated Areas. In their January 9, 2012, filing Petitioners
subsumed the two latter programs into the Import Duty Preferences
for FIEs program.
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For a description of each of these programs, see the Petition. For
discussion of the Department's decision to initiate an investigation of
these programs, see Initiation Checklist.
Respondent Selection
For this investigation, the Department expects to select
respondents based on U.S. Customs and Border Protection (CBP) data for
U.S. imports during the POI. We intend to make our decision regarding
respondent selection within 20 days of publication of this Federal
Register notice. The Department will release CBP data under
Administrative Protective Order shortly after the signature date of
this notice. The Department invites comments regarding the CBP data and
respondent selection to be submitted to the Department within seven
calendar days of publication of this Federal Register notice.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to representatives of the GOV. Because of the large number of
producers/exporters identified in the Petition, the Department
considers the service of the public version of the Petition to the
foreign producers/exporters satisfied by the delivery of the public
version to the GOV, consistent with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of subsidized garment hangers from Vietnam are
causing material injury, or threatening to cause material injury, to a
U.S. industry. See section 703(a)(2) of the Act. A negative ITC
determination will result in the investigation being terminated;
otherwise, the investigation will proceed according to statutory and
regulatory time limits.
Notification to Interested Parties
Interested parties must submit applications for disclosure under
administrative protective orders in accordance with 19 CFR 351.305. On
January 22, 2008, the Department published Antidumping and
Countervailing Duty Proceedings: Documents Submission Procedures; APO
Procedures, 73 FR 3634. Parties wishing to participate in this
investigation should ensure that they meet the requirements of these
procedures (e.g., the filing of letters of appearance as discussed at
19 CFR 351.103(d)).
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information. See
section 782(b) of the Act. Parties are hereby reminded that revised
certification requirements are in effect for company/government
officials as well as their representatives in all segments of any
antidumping duty or countervailing duty proceedings initiated on or
after March 14, 2011. See Certification of Factual Information to
Import Administration during Antidumping and Countervailing Duty
Proceedings: Interim Final Rule, 76 FR 7491 (February 10, 2011)
(Interim Final Rule) amending 19 CFR 351.303(g)(1) and (2). The formats
for the revised certifications are provided at the end of the Interim
Final Rule. See also Certification of Factual Information To Import
Administration During Antidumping and Countervailing Duty Proceedings:
Supplemental Interim Final Rule, 76 FR 54697 (September 2, 2011). The
Department intends to reject factual submissions in any proceeding
segments initiated on or after March 14, 2011, if the submitting party
does not comply with the revised certification requirements.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: January 18, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.
Appendix I--Scope of the Investigation
The merchandise subject to the investigation is steel wire
garment hangers, fabricated from carbon steel wire, whether or not
galvanized or painted, whether or not coated with latex or epoxy or
similar gripping materials, and/or whether or not fashioned with
paper covers or capes (with or without printing) and/or nonslip
features such as saddles or tubes. These products may also be
referred to by a commercial designation, such as shirt, suit, strut,
caped, or latex (industrial) hangers.
Specifically excluded from the scope of the investigation are
(a) wooden, plastic, and other garment hangers that are not made of
steel wire; (b) steel wire garment hangers with swivel hooks; (c)
steel wire garment hangers with clips permanently affixed; and (d)
chrome-plated steel wire garment hangers with a diameter of 3.4mm or
greater.
The products subject to the investigation are currently
classified under U.S. Harmonized Tariff Schedule (``HTSUS'')
subheadings 7326.20.0020 and 7323.99.9080. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the merchandise is dispositive.
[FR Doc. 2012-1531 Filed 1-24-12; 8:45 am]
BILLING CODE 3510-DS-P