[Federal Register Volume 77, Number 16 (Wednesday, January 25, 2012)]
[Notices]
[Pages 3731-3736]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1558]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-812, A-583-849]
Steel Wire Garment Hangers From the Socialist Republic of Vietnam
and Taiwan: Initiation of Antidumping Duty Investigations
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: January 25, 2012.
FOR FURTHER INFORMATION CONTACT: Catherine Bertrand at (202) 482-3207
(the Socialist Republic of Vietnam (``Vietnam'')), or Scot Fullerton at
(202) 482-1386 (Taiwan), AD/CVD Operations, Office 9, Import
Administration, International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230.
SUPPLEMENTARY INFORMATION:
Petitions
On December 29, 2011, the Department of Commerce (the
``Department'') received antidumping duty (``AD'') petition concerning
imports of steel wire garment hangers from Vietnam and Taiwan filed in
proper form on behalf of M&B Metal Products Company, Inc.; Innovative
Fabrication LLC/Indy Hanger; and US Hanger Company, LLC (collectively,
``Petitioners'').\1\ \2\ On January 5, 2012, the Department
issued a request for additional information and clarification of
certain areas of the Petitions. On January 10, 2012, Petitioners filed
a response with respect to general questions about information in the
Petitions (``Supplement to the AD/CVD Petitions''). On January 11,
2012, Petitioners also filed responses specific to the Vietnam and
Taiwan AD Petition (hereinafter, ``Supplement to Vietnam Petition,''
and ``Supplement to the Taiwan Petition,'' respectively). On January
11, 2012, Petitioners also filed a revision to the proposed scope
language (``Second Scope Revision''). In accordance with section 732(b)
of the Tariff Act of 1930, as amended (the ``Act''), Petitioners allege
that imports of steel wire garment hangers from Vietnam and Taiwan are
being, or are likely to be, sold in the United States at less than fair
value, within the meaning of section 731 of the Act, and that such
imports are materially injuring, or threatening material injury to, an
industry in the United States.
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\1\ See ``Petitions for the Imposition of Antidumping Duties on
Steel Wire Garment Hangers from Taiwan and Antidumping and
Countervailing Duties on Steel Wire Garment Hangers from the
Socialist Republic of Vietnam,'' filed on December 29, 2011 (the
``Petitions'').
\2\ A countervailing duty (``CVD'') petition was also filed on
steel wire garment hangers from Vietnam.
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The Department finds that Petitioners filed the Petitions 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 antidumping duty
investigations that Petitioners are requesting that the Department
initiate (see ``Determination of Industry Support for the Petitions''
section below).
Period of Investigation
The period of investigation (``POI'') for the investigation
involving Vietnam is April 1, 2011, through September 30, 2011. The POI
for the investigation involving Taiwan is October 1, 2010, through
September 30, 2011.\3\
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\3\ See 19 CFR 351.204(b)(1).
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[[Page 3732]]
Scope of Investigations
The product covered by these investigations is steel wire garment
hangers from Vietnam and Taiwan. For a full description of the scope of
the investigations, please see the ``Scope of the Investigations,'' in
Appendix I of this notice.
Comments on Scope of Investigations
During our review of the Petitions, 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. Moreover, as
discussed in the preamble to the Department's regulations (Antidumping
Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19,
1997)), we are setting aside a period for interested parties to raise
issues regarding product coverage. 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 determinations. The Department encourages all interested
parties to submit such comments by February 7, 2012, twenty calendar
days from the signature date of this notice. All comments must be filed
on the records of Vietnam and Taiwan antidumping duty investigations as
well as Vietnam countervailing duty investigation. Comments should be
filed electronically using Import Administration's Antidumping and
Countervailing Duty Centralized Electronic Service System (IA ACCESS).
An electronically filed document must be received successfully in its
entirety by the Department's electronic records system, IA ACCESS.
Documents excepted from the electronic submission requirements must be
filed manually (i.e., in paper form) with the APO/Dockets Unit in Room
1870 and stamped with the date and time of receipt by the deadline
noted above.
Comments on Product Characteristics for Antidumping Duty Questionnaires
We are requesting comments from interested parties regarding the
appropriate physical characteristics of steel wire garment hangers to
be reported in response to the Department's antidumping questionnaires.
This information will be used to identify the key physical
characteristics of the subject merchandise in order to more accurately
report the relevant factors and costs of production, as well as to
develop appropriate product comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate listing of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as (1) general product
characteristics and (2) the product comparison criteria. We note that
it is not always appropriate to use all product characteristics as
product comparison criteria. We base product comparison criteria on
meaningful commercial differences among products. In other words, while
there may be some physical product characteristics utilized by
manufacturers to describe steel wire garment hangers, it may be that
only a select few product characteristics that take into account
commercially meaningful physical characteristics. In addition,
interested parties may comment on the order in which the physical
characteristics should be used in product matching. Generally, the
Department attempts to list the most important physical characteristics
first and the least important characteristics last.
In order to consider the suggestions of interested parties in
developing and issuing the antidumping duty questionnaires, we must
receive comments by February 7, 2012. Additionally, rebuttal comments
must be received by February 14, 2011. All comments must be filed on
the records of the Vietnam and Taiwan antidumping duty investigations.
All comments and submissions to the Department must be filed
electronically using IA ACCESS, as referenced above.
Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(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 732(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.\4\
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\4\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp. v. United States, 688 F. Supp. 639,
644 (CIT 1988)).
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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
investigations. 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 ``Antidumping Duty
Investigation Initiation Checklist: Steel Wire Garment Hangers from
Taiwan'' (``Taiwan AD Checklist'') at Attachment II; ``Antidumping Duty
Investigation Initiation Checklist: Steel Wire Garment Hangers from
Vietnam'' (``Vietnam AD Checklist'') at Attachment II, on file
electronically in the Central Records Unit (room 7046 at
[[Page 3733]]
Herbert C Hoover Building) via IA ACCESS.
In determining whether Petitioners have standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petitions with reference to the domestic like product
as defined in the ``Scope of Investigations,'' in Appendix I of this
notice. To establish industry support, Petitioners provided their
production as well as supporters' production of the domestic like
product in 2010, and compared this 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 Taiwan AD Checklist at Attachment II and
Vietnam AD Checklist at Attachment II.
Our review of the information provided in the Petitions,
supplemental submissions, and other information readily available to
the Department indicates that Petitioners have established industry
support. First, the Petitions established support from domestic
producers 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).\5\ Second, the domestic producers have met the
statutory criteria for industry support under section 732(c)(4)(A)(i)
of the Act because the domestic producers who support the Petitions
account for at least 25 percent of the total production of the domestic
like product.\6\ Finally, the domestic producers have met the statutory
criteria for industry support under section 732(c)(4)(A)(ii) of the Act
because the domestic producers who support the Petitions account for
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 Petitions.\7\ Accordingly, the Department determines
that the Petitions were filed on behalf of the domestic industry within
the meaning of section 732(b)(1) of the Act.\8\
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\5\ See section 732(c)(4)(D) of the Act; see also Taiwan AD
Checklist at Attachment II and Vietnam AD Checklist at Attachment
II.
\6\ See Taiwan AD Checklist at Attachment II and Vietnam AD
Checklist at Attachment II.
\7\ See id.
\8\ See id.
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The Department finds that the Petitioners filed the Petitions 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 antidumping duty
investigations they are requesting the Department initiate.\9\
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\9\ See id.
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Allegations and Evidence of Material Injury and Causation
Petitioners allege that the U.S. industry producing the domestic
like product is being materially injured, or is threatened with
material injury, by reason of the imports of the subject merchandise
sold at less than normal value (``NV''). 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.\10\ 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.\11\
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\10\ See Taiwan AD Checklist at Attachment III and Vietnam AD
Checklist at Attachment III.
\11\ See id.
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Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which the Department based its decision to
initiate these investigations of imports of steel wire garment hangers
from Vietnam and Taiwan. The sources of data for the deductions and
adjustments relating to the U.S. price, the factors of production
(``FOPs'') (for Vietnam) and cost of production (``COP'') (for Taiwan)
are also discussed in the country-specific initiation checklists.\12\
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\12\ See Vietnam AD Checklist at 6-9 and Taiwan AD Checklist at
6-8.
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Export Price
Vietnam
For Vietnam, Petitioners calculated export price (``EP'') based on
offers for sale of steel wire garment hangers by certain Vietnamese
exporters/resellers and declarations of lost U.S. sales by U.S.
producers during the POI, as identified in four ``Declarations
Regarding Lost U.S. Sales.'' \13\ Based on the stated sales and
delivery terms, Petitioners deducted adjustments, charges and expenses
associated with exporting and delivering to the U.S. customer, where
appropriate.\14\ Petitioners made no other adjustments.\15\
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\13\ See Vietnam AD Checklist at 6; see also Volume III of the
Petitions at III-5 and Exhibit III-4.
\14\ See Vietnam AD Checklist at 6; see also Volume III of the
Petitions at III-5 and Exhibit III-5, and Supplement to Vietnam
Petition at Attachment III-9
\15\ See Vietnam AD Checklist for additional details.
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Taiwan
For Taiwan, Petitioners based U.S. EP on a declaration of lost U.S.
sales of three major types of steel wire garment hangers by U.S.
producers and the average unit value (``AUV'') for U.S. Harmonized
Tariff Schedule (``USHTS'') 7326.20.0020, described as ``garment wire
hangers of iron or steel,'' during the POI. The lost sales are
supported by affidavits.\16\ Based on the stated sales and delivery
terms, Petitioners deducted from these prices the adjustments, charges,
and expenses associated with exporting and delivering the product to
the U.S. customer, including ocean freight and insurance, U.S. duties
and U.S. inland freight charges, and distributor mark-up, where
appropriate.\17\
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\16\ See Taiwan AD Checklist at 6; see also Volume II of the
Petitions at II-4 and Exhibits II-4.
\17\ See id.
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Normal Value
Vietnam
Petitioners state that the Department has long treated Vietnam as a
non-market economy (``NME'') country and this designation remains in
effect today.\18\ In accordance with section 771(18)(C)(i) of the Act,
the presumption of NME status remains in effect until revoked by the
Department. The presumption of NME status for Vietnam has not been
revoked by the Department and, therefore, remains in effect for
purposes of the initiation of Vietnam investigation. Accordingly, the
NV of the product for Vietnam investigation is appropriately based on
FOPs valued in a surrogate market-
[[Page 3734]]
economy (``ME'') country in accordance with section 773(c) of the Act.
In the course of the Vietnam investigation, all parties, including the
public, will have the opportunity to provide relevant information
related to the issue of Vietnam's NME status and the granting of
separate rates to individual exporters.
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\18\ See Volume III of the Petitions at III-1 through III-3; see
also Circular Welded Carbon-Quality Steel Pipe From India, the
Sultanate of Oman, the United Arab Emirates, and the Socialist
Republic of Vietnam: Initiation of Antidumping Duty Investigations,
76 FR 72164, 72167 (November 22, 2011); see also Certain Frozen
Warmwater Shrimp From the Socialist Republic of Vietnam: Final
Results and Final Partial Rescission of Antidumping Duty
Administrative Review, 76 FR 56158, 56160 (September 12, 2011).
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Petitioners claim that India is an appropriate surrogate country
under 19 CFR 351.408(a) because it is an ME country that is at a
comparable level of economic development to Vietnam and surrogate
values data from India are available and reliable. Petitioners also
believe that India is a significant producer of comparable merchandise.
Petitioners are not aware of significant production of steel wire
garment hangers among other potential surrogate countries, such as
Bangladesh, the Philippines, Indonesia, Sri Lanka, and Pakistan.\19\
Based on the information provided by Petitioners, we believe that it is
appropriate to use India as a surrogate country for initiation
purposes. After initiation of the investigation, interested parties
will have the opportunity to submit comments regarding surrogate
country selection and, pursuant to 19 CFR 351.301(c)(3)(i), will be
provided an opportunity to submit publicly available information to
value FOPs within 40 days after the date of publication of the
preliminary determination.
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\19\ See Volume III of the Petitions at III-2 through III-3.
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Petitioners calculated the NV and dumping margins for the U.S.
price, discussed above, using the Department's NME methodology as
required by 19 CFR 351.202(b)(7)(i)(C) and 19 CFR 351.408. Petitioners
calculated NV based on consumption rates experienced by U.S.
producers.\20\ Petitioners assert that, to the best of Petitioners'
knowledge, the consumption rates of the domestic producers are very
similar, if not identical, to the consumption of Vietnamese
producers.\21\
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\20\ See Volume III of the Petitions at III-3 through III-4.
\21\ See Volume III of the Petitions at III-3 through III-4 and
Exhibits III-2 and III-3, and Supplement to Vietnam Petition at
(Supp-III)-4, Attachment III-3, and Attachment III-8.
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Petitioners valued by-products and most FOPs based on reasonably
available, public surrogate country data, specifically, Indian import
statistics from the Global Trade Atlas (``GTA'').\22\ Petitioners
excluded from these import statistics values from countries previously
determined by the Department to be NME countries, and from Indonesia,
the Republic of Korea and Thailand, as the Department has previously
excluded prices from these countries because they maintain broadly
available, non-industry-specific export subsidies. Finally, imports
that were labeled as originating from an ``unspecified'' country were
excluded from the average value, because the Department could not be
certain that they were not from either an NME country or a country with
generally available export subsidies.\23\ For valuing other FOPs,
Petitioners used sources selected by the Department in recent
proceedings involving Vietnam or publically available sources from
India.\24\ In addition, Petitioners made Indian Rupee/U.S. dollar
(``USD'') currency conversions using average exchange rates for the
POI, based on Federal Reserve exchange rates.\25\
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\22\ See Volume III of the Petitions at III-4 and Exhibit III-2;
see also Supplement to Vietnam Petition at Petition at Attachment
III-5.
\23\ See, e.g., Polyethylene Terephthalate Film, Sheet, and
Strip from the People's Republic of China: Preliminary Determination
of Sales at Less Than Fair Value, 73 FR 24552, 24559 (May 5, 2008),
unchanged in Polyethylene Terephthalate Film, Sheet, and Strip from
the People's Republic of China: Final Determination of Sales at Less
Than Fair Value, 73 FR 55039 (September 24, 2008) (``PET Film'');
see also Volume III of the Petitions at III-4 and Exhibit III-2, and
Supplement to Vietnam Petition at Attachment III-1.
\24\ See Volume III of the Petitions at III-4 and Exhibit III-2;
see also Supplement to Vietnam Petition at Attachment III-1.
\25\ See Volume III of the Petitions at III-4 and Exhibit III-3,
and Supplement to Vietnam Petition at (Supp-III)-2, and Attachment
III-4.
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Petitioners determined labor costs using the labor consumption
rates derived from U.S. producers.\26\ Petitioners valued labor costs
using the calculated wage rate in a recent review involving steel wire
garment hangers from the People's Republic of China.\27\
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\26\ See Volume III of the Petitions at Exhibit III-3.
\27\ See Steel Wire Garment Hangers From the People's Republic
of China: Preliminary Results and Preliminary Rescission, in Part,
of the Second Antidumping Duty Administrative Review, 76 FR 66903,
66910 (October 28, 2011) (citing Memorandum to the File through
Catherine Bertrand, Program Manager, Office 9, from Bob Palmer, Case
Analyst, Office 9 re: ``Second Administrative Review of Steel Wire
Garment Hangers from the People's Republic of China: Surrogate
Values for the Preliminary Results,'' dated October 24, 2011, at 1,
Exhibit 12, and Exhibit 13); see also, See Supplement to Vietnam
Petition at (Supp-III)-1, and Attachment III-1.
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Petitioners determined electricity costs using the electricity
consumption rates, in kilowatt hours, derived from one U.S. producer's
experience.\28\ Petitioners valued electricity using the Indian
electricity rate reported by the Central Electric Authority of the
Government of India.\29\
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\28\ See Volume III of the Petitions at Exhibit III-3,
Supplement to Vietnam Petition at Attachment III-8.
\29\ See Supplement to Vietnam Petition at Attachment III-1.
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Petitioners determined water costs using the water consumption
derived from one U.S. producer's experience.\30\ Petitioners valued
water based on publically available information from the Maharashtra
Industrial Development Corporation.\31\
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\30\ See Volume III of the Petitions at Exhibit III-3,
Supplement to Vietnam Petition at Attachment III-8.
\31\ See Supplement to Vietnam Petition at Attachment III-1.
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Petitioners determined natural gas costs using the natural gas
consumption rates derived from one U.S. producer's experience.\32\
Petitioners valued natural gas costs using GTA import statistics.\33\
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\32\ See Volume III of the Petitions at Exhibit III-3,
Supplement to Vietnam Petition at Attachment III-8.
\33\ See Volume III of the Petitions at Exhibit III-2 and
Supplement to Vietnam Petition at Attachment III-6.
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Petitioners based factory overhead, selling, general and
administrative (``SG&A''), and profit on data from Sterling Tools
Limited (``Sterling''), an Indian producer of comparable
merchandise.\34\ Therefore, because Sterling is a producer of
comparable merchandise, the Department finds that Petitioners' use of
Sterling's financial ratios appropriate.\35\
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\34\ See Volume III of the Petition at III-4 through III-5,
Exhibit III-2, and Supplement to Vietnam Petition at Attachment III-
2.
\35\ See 19 CFR 351.408(4).
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Petitioners determined packing material costs using the consumption
rates derived from U.S. producers' experience.\36\ Petitioners valued
packing materials using GTA India import statistics.\37\
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\36\ See Volume III of the Petition, at Exhibit III-1,
Supplement to Vietnam Petition at Attachment III-8.
\37\ See Volume III of the Petitions at Exhibit III-2.
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Thus, the Department determines that the surrogate values used by
Petitioners are reasonably available and, thus, acceptable for purposes
of initiation.
Taiwan
NV Based on Constructed Value (``CV'')
Petitioners used CV to estimate NV because home market or third
country pricing was not reasonably available.\38\ When such information
is unavailable the Department may use CV to estimate NV. In accordance
with section 773(e)(1) of the Act, Petitioners based constructed value
on actual consumption of direct materials, direct
[[Page 3735]]
labor, energy, overhead, and general expenses, plus amounts for profit
and packing, for several major types of steel wire garment hangers.\39\
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\38\ Petitioners documented its attempts to obtain such
information. See Volume II of the Petition at II-2.
\39\ See Taiwan AD Checklist at 7-8; see also Volume II of the
Petition at II-2 though 4 and Exhibit II-1.
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Petitioners assert that, according to the best available
information, Taiwanese producers of hangers utilize similar production
methods as U.S. producers to produce subject merchandise. As a result,
Petitioners used the actual consumption rates of M&B Metal Products
Inc., one of the Petitioners, to provide a reasonable basis from which
to estimate the costs for the Taiwanese producers of hangers. No
adjustments were made between Petitioners' production process and the
process employed by Taiwanese producers because the production of steel
wire garment hangers for both is very similar.\40\ Petitioners
calculated raw materials, labor, energy, and packing based on its own
production experience using publically available data.\41\ Petitioners
provided financial statements from China Steel Corporation, a Taiwanese
manufacturer of steel products, for the calculation of factory
overhead, SG&A and profit.\42\
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\40\ See Taiwan AD Checklist at 7; see also Volume II of the
Petition at II-3 and Exhibit II-1.
\41\ See Taiwan AD Checklist at 7-8; see also Volume II of the
Petition at II-3 and Exhibit II-2 and Volume II Supplemental at
Attachments II-2, II-3, and II-4.
\42\ See Taiwan AD Checklist at 8; see also Volume II of the
Petition at II-3 through 4 and Exhibit II-2 and Volume II
Supplemental at Attachments II-7 and Attachments II-8.
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Fair Value Comparisons
Based on the data provided by Petitioners, there is reason to
believe that imports of steel wire garment hangers from Vietnam and
Taiwan are being, or are likely to be, sold in the United States at
less than fair value. Based on a comparison of EPs and NV calculated,
in accordance with section 773(c) of the Act, the estimated dumping
margins for steel wire garment hangers from Vietnam range from 117.48
percent to 220.68 percent.\43\ Based on a comparison of EPs and CV
calculated in accordance with section 773(a)(4) of the Act, the
estimated dumping margins for steel wire garment hangers from Taiwan
range from 18.90 percent to 125.43 percent.\44\
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\43\ See Vietnam AD Checklist at 9 and Appendix V.
\44\ See Taiwan AD Checklist at 9 and Attachment V; see also
Volume II of Petitions, at II-5, and Exhibit II-4, and Volume II
Supplemental at (Supp II)-6, and Attachment II-10.
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Initiation of Antidumping Investigations
Based upon the examination of the Petitions on steel wire garment
hangers from Vietnam and Taiwan, the Department finds that the
Petitions meet the requirements of section 732 of the Act. Therefore,
we are initiating antidumping duty investigations to determine whether
imports of steel wire garment hangers from Vietnam and Taiwan are
being, or are likely to be, sold in the United States at less than fair
value. In accordance with section 733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determinations no later than 140 days after the date of these
initiations.
Targeted Dumping Allegations
On December 10, 2008, the Department issued an interim final rule
for the purpose of withdrawing 19 CFR 351.414(f) and (g), the
regulatory provisions governing the targeted dumping analysis in
antidumping duty investigations, and the corresponding regulation
governing the deadline for targeted dumping allegations, 19 CFR
351.301(d)(5).\45\ The Department stated that ``{w{time} ithdrawal will
allow the Department to exercise the discretion intended by the statute
and, thereby, develop a practice that will allow interested parties to
pursue all statutory avenues of relief in this area.'' \46\
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\45\ See Withdrawal of the Regulatory Provisions Governing
Targeted Dumping in Antidumping Duty Investigations, 73 FR 74930
(December 10, 2008).
\46\ See id., at 74931.
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In order to accomplish this objective, if any interested party
wishes to make a targeted dumping allegation in either of these
investigations pursuant to section 777A(d)(1)(B) of the Act, such
allegations are due no later than 45 days before the scheduled date of
the country-specific preliminary determination.
Respondent Selection and Quantity and Value Questionnaire
Vietnam
The Department will request quantity and value information from all
known exporters and producers identified in the Petitions.\47\ The
quantity and value data received from Vietnamese exporters/producers
will be used as the basis to select the mandatory respondents. The
Department requires that the respondents submit a response to both the
quantity and value questionnaire and the separate-rate application by
the respective deadlines in order to receive consideration for
separate-rate status.\48\
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\47\ See Volume I of Petitions, at Exhibit I-8.
\48\ See Circular Welded Austenitic Stainless Pressure Pipe from
the People's Republic of China: Initiation of Antidumping Duty
Investigation, 73 FR 10221, 10225 (February 26, 2008); Initiation of
Antidumping Duty Investigation: Certain Artist Canvas From the
People's Republic of China, 70 FR 21996, 21999 (April 28, 2005).
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In addition, the Department will post the quantity and value
questionnaire along with the filing instructions on the Import
Administration Web site (http://ia.ita.doc.gov/ia-highlights-and-news.html). Exporters and producers of steel wire garment hangers that
do not receive quantity and value questionnaires but intend to submit a
response can obtain a copy from the Import Administration Web site. The
quantity and value questionnaire must be submitted by all Vietnamese
exporters/producers no later than February 8, 2012, 21 days after the
signature date of this Federal Register notice.
Taiwan
Following standard practice in AD investigations involving ME
countries, the Department intends to select respondents based on U.S.
Customs and Border Protection (``CBP'') data for U.S. imports under the
HTSUS numbers 7326.20.0020 and 7323.99.908. We intend to release the
CBP data under Administrative Protective Order (``APO'') to all parties
with access to information protected by APO within five days of
publication of this Federal Register notice and make our decision
regarding respondent selection within 20 days of publication of this
notice. The Department invites comments regarding the CBP data and
respondent selection within seven days of publication of this Federal
Register notice.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on the Department's Web site at http://ia.ita.doc.gov/apo.
Separate Rates in the Vietnam Investigation
In order to obtain separate-rate status in NME investigations,
exporters and producers must submit a separate-rate status
application.\49\ Based on our experience in processing the separate-
[[Page 3736]]
rate applications in previous antidumping duty investigations, we have
modified the application for this investigation to make it more
administrable and easier for applicants to complete.\50\ The specific
requirements for submitting the separate-rate application in this
investigation are outlined in detail in the application itself, which
will be available on the Department's Web site at http://ia.ita.doc.gov/ia-highlights-and-news.html on the date of publication
of this initiation notice in the Federal Register. The separate-rate
application will be due 60 days after publication of this initiation
notice. For exporters and producers who submit a separate-rate status
application and subsequently are selected as mandatory respondents,
these exporters and producers will no longer be eligible for
consideration for separate rate status unless they respond to all parts
of the questionnaire as mandatory respondents. As noted in the
``Respondent Selection'' section above, the Department requires that
Vietnam respondents submit a response to both the quantity and value
questionnaire and the separate-rate application by the respective
deadlines in order to receive consideration for separate-rate status.
The quantity and value questionnaire will be available on the
Department's Web site at http://ia.ita.doc.gov/ia-highlights-and-news.html on the date of the publication of this initiation notice in
the Federal Register.
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\49\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigations
involving Non-Market Economy Countries (April 5, 2005) (``Separate
Rates and Combination Rates Bulletin''), available on the
Department's Web site at http://ia.ita.doc.gov/policy/bull05-1.pdf.
\50\ See, e.g., Initiation of Antidumping Duty Investigation:
Certain New Pneumatic Off-the-Road Tires From the People's Republic
of China, 72 FR 43591, 43594-95 (August 6, 2007).
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Use of Combination Rates in the Vietnam Investigation
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in this
investigation. The Separate Rates and Combination Rates Bulletin
states:
{w{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that the Department will
now assign in its NME investigations will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the weighted-average of the individually calculated rates.
This practice is referred to as the application of ``combination
rates'' because such rates apply to specific combinations of
exporters and one or more producers. The cash-deposit rate assigned
to an exporter will apply only to merchandise both exported by the
firm in question and produced by a firm that supplied the exporter
during the period of investigation.\51\
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\51\ See Separate Rates and Combination Rates Bulletin, at 6
(emphasis added).
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Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public versions of the Petitions have been
provided to the representatives of the Governments of Vietnam and
Taiwan. Because of the large number of producers/exporters identified
in the Petitions, the Department considers the service of the public
version of the Petitions to the foreign producers/exporters satisfied
by the delivery of the public versions of the Petitions to the
Governments of Vietnam and Taiwan, consistent with 19 CFR
351.203(c)(2).
ITC Notification
We have notified the ITC of our initiations, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, no later than February 12,
2012, whether there is a reasonable indication that imports of steel
wire garment hangers from Vietnam and Taiwan are materially injuring,
or threatening material injury to a U.S. industry. A negative ITC
determination with respect to any country will result in the
investigation being terminated for that country; otherwise, these
investigations will proceed according to statutory and regulatory time
limits.
Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). On January 22, 2008, the
Department published Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January
22, 2008). Parties wishing to participate in these investigations
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/CVD proceeding
must certify to the accuracy and completeness of that information.\52\
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 AD/CVD proceeding initiated on
or after March 14, 2011.\53\ The formats for the revised certifications
are provided at the end of the Interim Final Rule and the Supplemental
Interim Final Rule. 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.
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\52\ See section 782(b) of the Act.
\53\ 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) & (2)), as
supplemented by Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings: Supplemental Interim Final Rule, 76 FR 54697 (September
2, 2011) (``Supplemental Interim Final Rule'').
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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 Investigations
The merchandise subject to these investigations 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 these investigations 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 3.4 mm
or greater.
The products subject to these investigations are currently
classified under U.S. Harmonized Tariff Schedule (``USHTS'')
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. 2012-1558 Filed 1-24-12; 8:45 am]
BILLING CODE 3510-DS-P