[Federal Register Volume 77, Number 237 (Monday, December 10, 2012)]
[Notices]
[Pages 73430-73432]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-29767]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-813]


Steel Wire Garment Hangers From the Socialist Republic of 
Vietnam: Preliminary Affirmative Determination of Critical 
Circumstances

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

SUMMARY: The Department of Commerce (the Department) has preliminarily 
determined that critical circumstances exist with respect to imports of 
steel wire garment hangers from the Socialist Republic of Vietnam 
(Vietnam) with the exception of imports from the Hamico Companies.\1\
---------------------------------------------------------------------------

    \1\ The Hamico Companies are the South East Asia Hamico Export 
Joint Stock Company, Nam A Hamico Export Joint Stock Company, and 
Linh Sa Hamico Company Limited.

---------------------------------------------------------------------------
DATES: Effective Date: December 10, 2012.

FOR FURTHER INFORMATION CONTACT: Robert Copyak, AD/CVD Operations, 
Office 3, Import Administration, International Trade Administration, 
U.S. Department of Commerce, Room CC114, 14th Street and Constitution 
Avenue NW., Washington, DC 20230; telephone: 202-482-2209.

SUPPLEMENTARY INFORMATION:

Case History

    On December 29, 2011, the Department received a countervailing duty 
(CVD) petition concerning imports of garment hangers from Vietnam filed 
in proper form by M&B Metal Products Company, Inc., Innovative 
Fabrication LLC/Indy Hanger, and US Hanger Company, LLC (collectively, 
Petitioners).\2\ This investigation was initiated on January 18, 
2012.\3\ The affirmative preliminary determination was published on 
June 4, 2012.\4\
---------------------------------------------------------------------------

    \2\ See Petition for the Imposition of Countervailing Duties 
(Petition). A public version of the Petition and all other public 
documents and public versions for this investigation are available 
on the public file in the Central Records Unit (CRU), Room 7046 of 
the main Department of Commerce building.
    \3\ See Steel Wire Garment Hangers From the Socialist Republic 
of Vietnam: Initiation of Countervailing Duty Investigation, 77 FR 
3737 (January 25, 2011), and accompanying Initiation Checklist.
    \4\ See Certain Steel Wire Garment Hangers from the Socialist 
Republic of Vietnam: Preliminary Affirmative Countervailing Duty 
Determination and Alignment of Final Countervailing Duty 
Determination with Final Antidumping Duty Determination, 77 FR 32930 
(June 4, 2012) (Preliminary Determination).
---------------------------------------------------------------------------

    On July 10, 2012, Petitioners alleged that critical circumstances 
exist with respect to imports of steel wire garment hangers from 
Vietnam and submitted U.S. Census Data in support of their 
allegation.\5\ On July 23, 2012, the Department requested from the two 
mandatory respondents--the Hamico Companies and the Infinite Companies 
\6\ monthly shipment data of subject merchandise to the United States 
for the period August 2011 through May 2012.
---------------------------------------------------------------------------

    \5\ See Petitioners' Critical Circumstances Allegation (July 10, 
2012), at Attachment 1.
    \6\ The Infinite Companies are Infinite Industrial Hanger 
Limited and Supreme Hanger Company Limited.
---------------------------------------------------------------------------

    On July 31, 2011, the Hamico Companies submitted to the Department 
their monthly shipment data of subject merchandise to the United States 
for the period August 2011 through May 2012.\7\ At verification, the 
Department officials confirmed the accuracy of the Hamico Companies' 
shipment data.\8\ The Infinite Companies did not submit their monthly 
shipment data of subject merchandise to the United States for the 
period August 2011 through May 2012. On August 3, 2012, the Infinite 
Companies withdrew from the investigation.\9\
---------------------------------------------------------------------------

    \7\ See the Hamico Companies' critical circumstances 
questionnaire response (July 31, 2012).
    \8\ See the Department's September 24, 2012, verification report 
titled ``Verification of South East Asia Hamico Export Joint Stock 
Company (SEA Hamico), Nam A Hamico Export Joint Stock Company (Nam A 
Hamico) and Linh Sa Hamico Company Limited (Linh Sa Hamico) 
(collectively SEA Hamico)'' at 5 (filed on IA ACCESS on September 
26, 2012).
    \9\ See the Infinite Companies' August 3, 2012 letter titled 
``Steel Wire Garment Hangers from the Socialist Republic of Vietnam: 
Withdrawal from Investigation.''
---------------------------------------------------------------------------

Period of Investigation

    The period for which we are measuring subsidies, or the period of 
investigation (POI), is calendar year 2011.

Scope of 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

[[Page 73431]]

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.

Comments of the Parties

    In their critical circumstances allegation, Petitioners also allege 
that there is a reasonable basis to believe that there are subsidies in 
this investigation which are inconsistent with the World Trade 
Organization Agreement on Subsidies and Countervailing Measures 
(Subsidies Agreement). Petitioners cite to the Preliminary 
Determination, in which the Department preliminarily determined that 
Hamico Companies and the Infinite Companies have received subsidies 
which are contingent on export performance.\10\
---------------------------------------------------------------------------

    \10\ See Petitioners' Critical Circumstances Allegation (July 
10, 2012) at 2-4.
---------------------------------------------------------------------------

    Petitioners also claim in their critical circumstances allegation 
that there have been massive imports of hangers in the four months 
following the filing of the petition on December 29, 2011. Petitioners 
provided data from the U.S. Department of Commerce and U.S. 
International Trade Commission (ITC), which they contend demonstrate 
that imports of subject merchandise increased by more than 15 percent, 
which is required to be considered ``massive'' under 19 CFR 
351.206(h)(2).

Critical Circumstances Analysis

    Section 703(e)(1) of the Act provides that the Department will 
determine that critical circumstances exist if there is a reasonable 
basis to believe or suspect that: (A) The alleged countervailable 
subsidy is inconsistent with the Subsidies Agreement, and (B) there 
have been massive imports of the subject merchandise over a relatively 
short period.
    When determining whether an alleged countervailable subsidy is 
inconsistent with the Subsidies Agreement, the Department limits its 
findings to those subsidies contingent on export performance or use of 
domestic over imported goods (i.e., those prohibited under Article 3 of 
the Subsidies Agreement).\11\
    In determining whether imports of the subject merchandise have been 
``massive,'' 19 CFR 351.206(h)(1) provides that the Department normally 
will examine: (i) The volume and value of the imports; (ii) seasonal 
trends; and (iii) the share of domestic consumption accounted for by 
the imports. In addition, the Department will not consider imports to 
be massive unless imports during the ``relatively short period'' 
(comparison period) have increased by at least 15 percent compared to 
imports during an ``immediately preceding period of comparable 
duration'' (base period). See 19 CFR 351.206(h)(2).
---------------------------------------------------------------------------

    \11\ See, e.g., Notice of Preliminary Negative Determination of 
Critical Circumstances: Certain New Pneumatic Off-the-Road Tires 
From the People's Republic of China, 73 FR 21588, 21589-90 (April 
22, 2008), unchanged in Final Affirmative Countervailing Duty 
Determination and Final Negative Critical Circumstances 
Determination: Carbon and Certain Alloy Steel Wire Rod From Germany, 
67 FR 55808, 55809 (August 30, 2002).
---------------------------------------------------------------------------

    Section 351.206(i) of the Department's regulations defines 
``relatively short period'' as normally being the period beginning on 
the date the proceeding commences (i.e., the date the petition is 
filed) and ending at least three months later. For consideration of 
this allegation, we have used a five-month base period (i.e., August 
2011 through December 2011) and a five-month comparison period (i.e., 
January 2012 through May 2012).

Hamico Companies

    In the Preliminary Determination, the Department found that, during 
the POI, the Hamico Companies received countervailable benefits under 
two programs that are contingent upon export performance: Import Duty 
Exemptions and Export Loans. Therefore, we preliminarily determine that 
there is a reasonable basis to believe or suspect that these two 
programs are inconsistent with the Subsidies Agreement.
    In determining whether there were massive imports from the Hamico 
Companies, we analyzed the Hamico Companies' monthly shipment data for 
the period August 2011 through May 2012. These data indicate that there 
was not a massive increase in shipments of subject merchandise to the 
United States by the Hamico Companies during the five-month period 
immediately following the filing of the petition on December 29, 2011. 
Specifically, shipments of subject merchandise to the United States 
from the Hamico Companies decreased, both in terms of volume and 
value.\12\
---------------------------------------------------------------------------

    \12\ See the Memorandum to the File from Robert Copyak, Senior 
Financial Analyst, AD/CVD Operations Office 3, titled ``Critical 
Circumstances Shipment Data Analysis,'' dated concurrently with this 
notice (Critical Circumstances Memorandum), at Attachment I.
---------------------------------------------------------------------------

Infinite Companies

    As noted in the case history, on August 3, 2012, the Infinite 
Companies withdrew from the investigation. Section 776(a)(2) of the 
Tariff Act of 1930, as amended (the Act) provides that, if an 
interested party (A) withholds information that has been requested by 
the Department, (B) fails to provide such information in a timely 
manner or in the form or manner requested, subject to subsections 
782(c)(1) and (e) of the Act, (C) significantly impedes a proceeding 
under the antidumping statute, or (D) provides such information but the 
information cannot be verified, the Department shall, subject to 
subsection 782(d) of the Act, use facts otherwise available in reaching 
the applicable determination.
    Information on the record of this investigation indicates that the 
Infinite Companies, in their August 3, 2012, letter to the Department, 
declined to further participate in the investigation. As a result, 
pursuant to section 776(a)(2)(D) of the Act, we find that the use of 
facts available is appropriate. Section 776(b) of the Act provides 
that, in selecting from among the facts otherwise available, the 
Department may employ an adverse inference if an interested party fails 
to cooperate by not acting to the best of its ability to comply with 
requests for information. We find that, because the Infinite Companies 
provided information that could not be verified, it has failed to 
cooperate to the best of its ability. Therefore, the Department finds 
that an adverse inference is appropriate.
    As adverse facts available (AFA), we preliminarily determine that 
the Infinite Companies received countervailable benefits under programs 
that are contingent upon export performance. Also, as AFA, we 
preliminarily determine that the Infinite Companies made massive 
imports of subject merchandise over a relatively short period of time.

[[Page 73432]]

All Other Exporters

    With regard to whether imports of subject merchandise by the ``all 
other'' exporters of hangers from Vietnam were massive, we 
preliminarily determine that because there is evidence of the existence 
of countervailable subsidies that are inconsistent with the Subsidies 
Agreement, an analysis is warranted as to whether there was a massive 
increase in shipments by the ``all other'' companies, in accordance 
with 19 CFR 351.206(h)(1). Therefore, we analyzed, in accordance with 
19 CFR 351.206(i), monthly shipment data for the period August 2011 
through May 2012, using shipment data from the ITC's Dataweb, adjusted 
to remove the shipments by the respondents participating in the 
investigation.\13\ For this analysis, we used only the data pertaining 
to the HTSUS numbers 7326.20.0020 and 7323.99.9080, which are the HTSUS 
categories under which a majority of the subject merchandise entered 
the United States. The data provided by the Hamico Companies and the 
data for shipments by other exporters from the ITC's Dataweb indicate 
there was a massive increase in shipments, as defined by 19 CFR 
351.206(h). See Critical Circumstances Memorandum at Attachment II.
---------------------------------------------------------------------------

    \13\ See, e.g., Certain Oil Country Tubular Goods From the 
People's Republic of China: Preliminary Affirmative Countervailing 
Duty Determination, Preliminary Negative Critical Circumstances 
Determination, 74 FR 47210, 47212 (September 15, 2009), unchanged in 
Certain Oil Country Tubular Goods From the People's Republic of 
China: Final Affirmative Countervailing Duty Determination: Final 
Negative Critical Circumstances Determination, 74 FR 64045 (December 
7, 2009).
---------------------------------------------------------------------------

Conclusion

    We preliminarily determine that critical circumstances do not exist 
for imports of steel wire garment hangers from Hamico Companies. 
Although the Preliminary Determination indicates that the Hamico 
Companies benefited from programs that are inconsistent with the 
Subsidies Agreement, the Hamico Companies' shipment data do not 
indicate a massive increase in shipments of subject merchandise to the 
United States. With regard to the Infinite Companies, as AFA, we 
preliminarily determine that the companies benefited from programs that 
are inconsistent with the Subsidies Agreement and that there was a 
massive increase in the companies' shipments of subject merchandise to 
the United States. Therefore, we preliminarily determine that critical 
circumstances do not exist with regard to shipments from one mandatory 
respondent, the Hamico Companies and, as AFA, preliminarily determine 
that critical circumstances exist with regard to shipments from the 
other mandatory respondent, the Infinite Companies.
    We also preliminarily determine, based on our analysis of the 
shipment data provided by the Hamico Companies and the ITC Dataweb 
data, that critical circumstances exist for imports from ``all other'' 
exporters of steel wire garment hangers from Vietnam. The Department 
conducted its analysis of the shipment data for all other exporters of 
steel wire garment hangers by subtracting the total quantity and value 
of the Hamico Companies' reported quantity and value during the POI 
from the total quantity and value of all imports of steel wire garment 
hangers from Vietnam. The results of this analysis indicate that the 
imports attributed to all other imports exceeded the fifteen percent 
threshold. See Critical Circumstances Memorandum at Attachment 1. We 
will make a final determination concerning critical circumstances for 
steel wire garment hangers from Vietnam when we make our final 
countervailable subsidy determination in this investigation.

Suspension of Liquidation

    In accordance with section 703(e)(2)(A) of the Act, we are 
directing U.S. Customs and Border Protection to suspend liquidation, 
with regard all exporters except the Hamico Companies, of any 
unliquidated entries of subject merchandise from the Vietnam entered, 
or withdrawn from warehouse for consumption, on or after March 6, 2012, 
which is 90 days prior to the date of publication of the Preliminary 
Determination in the Federal Register.

ITC Notification

    In accordance with section 703(f) of the Act, we will notify the 
ITC of our determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i)(1) of the Act.

    Dated: December 4, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.
 [FR Doc. 2012-29767 Filed 12-7-12; 8:45 am]
BILLING CODE 3510-DS-P