[Federal Register Volume 78, Number 244 (Thursday, December 19, 2013)]
[Notices]
[Pages 76815-76817]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-30113]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-856]
Steel Threaded Rod From India: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final Determination
With Final Antidumping Determination
AGENCY: Enforcement and Compliance, formerly Import Administration,
International Trade Administration, Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of steel threaded rod from India. The period of
investigation (``POI'') is January 1, 2012, through December 31, 2012.
For information on the estimated subsidy rates, see the ``Suspension of
Liquidation'' section of this notice.
DATES: Effective Date: December 19, 2013.
FOR FURTHER INFORMATION CONTACT: Brooke Kennedy, AD/CVD Operations,
Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3818.
SUPPLEMENTARY INFORMATION:
Scope of the Investigation
The merchandise covered by this investigation is steel threaded
rod. Steel threaded rod is certain threaded rod, bar, or studs, of
carbon quality steel, having a solid, circular cross section, of any
diameter, in any straight length, that have been forged, turned, cold-
drawn, cold-rolled, machine straightened, or otherwise cold-finished,
and into which threaded grooves have been applied. In addition, the
steel threaded rod, bar, or studs subject to this investigation are
non-headed and threaded along greater than 25 percent of their total
length. A variety of finishes or coatings, such as plain oil finish as
a temporary rust protectant, zinc coating (i.e., galvanized, whether by
electroplating or hot-dipping), paint, and other similar finishes and
coatings, may be applied to the merchandise. For a complete description
of the scope of the investigation, see Appendix 1 to this notice.
Methodology
The Department is conducting this countervailing duty (``CVD'')
investigation in accordance with section 701 of the Tariff Act of 1930,
as amended (``the Act''). For a full description of the methodology
underlying our preliminary conclusions, see the Preliminary Decision
Memorandum.\1\ The Preliminary Decision Memorandum is a public document
and is on file electronically via Enforcement and Compliance's
Antidumping and Countervailing Duty Centralized Electronic Service
System (``IA ACCESS''). IA ACCESS is available to registered users at
http://iaaccess.trade.gov, and is available to all parties in the
Central Records Unit, room 7046 of the main Department of
[[Page 76816]]
Commerce building. In addition, a complete version of the Preliminary
Decision Memorandum can be accessed directly on the internet at http://www.trade.gov/enforcement/. The signed Preliminary Decision Memorandum
and the electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\1\ See Memorandum from Gary Taverman, Senior Advisor for
Antidumping and Countervailing Duty Operations, to Paul Piquado,
Assistant Secretary for Enforcement and Compliance, ``Decision
Memorandum for the Preliminary Determination in the Countervailing
Duty Investigation on Steel Threaded Rod from India,'' dated
concurrently with this notice (``Preliminary Decision Memorandum'').
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In accordance with section 703(d)(1)(A)(i) of the Act, we
calculated a CVD rate for each individually investigated producer/
exporter of the subject merchandise. Sections 703(d) and 705(c)(5)(A)
of the Act state that for companies not individually investigated, we
will determine an all-others rate by weighting the individual company
subsidy rate of each of the companies investigated by each company's
exports of subject merchandise to the United States. However, the all-
others rate may not include zero and de minimis rates or any rates
based solely on the facts available. In this investigation, the only
rate that is not de minimis or based entirely on facts available is the
rate calculated for Mangal Steel Enterprises Ltd. (``Mangal'').
Accordingly, the rate calculated for Mangal is also assigned as the
all-others rate. For further information, see the Preliminary Decision
Memorandum.
Use of Facts Otherwise Available--Babu Exports (``Babu'')
Babu is a producer/exporter that was selected for investigation. On
September 6, 2013, the Department issued a questionnaire to Babu and
confirmed that Babu received the questionnaire.\2\ Babu never responded
to the Department's questionnaire.
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\2\ See the Department's memorandum, ``Babu Exports Original
Questionnaire Delivery Confirmation,'' dated September 14, 2013.
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Sections 776(a)(1) and (2) of the Act provide that the Department
shall apply ``facts otherwise available'' if, inter alia, necessary
information is not on the record or an interested party or any other
person: (A) Withholds information that has been requested; (B) fails to
provide information within the deadlines established, or in the form
and manner requested by the Department, subject to subsections (c)(1)
and (e) of section 782 of the Act; (C) significantly impedes a
proceeding; or (D) provides information that cannot be verified as
provided by section 782(i) of the Act.
Babu did not provide any of the information requested by the
Department that is necessary to determine a CVD rate for this
preliminary determination. As a result, we have none of the data
necessary to calculate a subsidy rate for Babu. Accordingly, in
reaching our preliminary determination, pursuant to section
776(a)(2)(A) and (C) of the Act, we have based Babu's CVD rate on facts
otherwise available.
Section 776(b) of the Act provides that the Department may use an
adverse inference in applying the facts otherwise available when a
party has failed to cooperate by not acting to the best of its ability
to comply with a request for information. Section 776(b) of the Act
also authorizes the Department to use as adverse facts available
(``AFA'') information derived from the petition, the final
determination, a previous administrative review, or other information
placed on the record.
The Department preliminarily determines that an adverse inference
is warranted, pursuant to section 776(b) of the Act because, by not
responding to our requests for information, Babu failed to cooperate by
not acting to the best of its ability. Accordingly, our preliminary
determination is based on AFA. For further information, see ``Use of
Facts Otherwise Available and Adverse Inferences'' in the Preliminary
Decision Memorandum.
Selection of the Adverse Facts Available Rate
In CVD proceedings, the Department computes a total AFA rate for
the non-cooperating company using the highest calculated program-
specific rates determined for the cooperating respondents in the
instant investigation, or, if not available, rates calculated in prior
CVD cases involving the same country.\3\ Specifically, the Department
applies the highest calculated rate for the identical program in the
investigation if a responding company used the identical program, and
the rate is not zero.\4\ If there is no identical program match within
the investigation, or if the rate is zero, the Department uses the
highest non-de minimis rate calculated for the same or similar program
(based on treatment of benefit) in another CVD proceeding involving the
same country. Absent an above de minimis subsidy rate calculated for
the same or similar program in the same country, the Department applies
the highest calculated subsidy rate for any program otherwise
identified in a CVD case involving the same county that could be used
by the non-cooperating company.\5\
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\3\ See, e.g., Certain Tow-Behind Lawn Groomers and Certain
Parts Thereof from the People's Republic of China: Preliminary
Affirmative Countervailing Duty Determination and Alignment of Final
Countervailing Duty Determination with Final Antidumping Duty
Determination, 73 FR 70971, 70975 (November 24, 2008) (unchanged in
Certain Tow-Behind Lawn Groomers and Certain Parts Thereof From the
People's Republic of China: Final Affirmative Countervailing Duty
Determination, 74 FR 29180, (June 19, 2009), and accompanying Issues
and Decision Memorandum at ``Application of Facts Available,
Including the Application of Adverse Inferences'').
\4\ There is an exception to this approach for income tax
exemption and reduction programs; however, since there are no such
programs in this investigation, the exception is not applicable
here.
\5\ See, e.g., Aluminum Extrusions From the People's Republic of
China: Final Affirmative Countervailing Duty Determination, 76 FR
18521, (April 4, 2011), and accompanying Issues and Decision
Memorandum at ``Application of Adverse Inferences: Non-Cooperative
Companies.''
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For a discussion of the application of the individual AFA rates for
programs preliminarily determined to be countervailable, see
Preliminary Decision Memorandum.
Corroboration of Secondary Information
Section 776(c) of the Act provides that, when the Department relies
on secondary information rather than on information obtained in the
course of an investigation or review, it shall, to the extent
practicable, corroborate that information from independent sources that
are reasonably at its disposal. In the instant case, the Department
preliminarily finds that the information used has been corroborated to
the extent practicable. For further information, see ``Use of Facts
Otherwise Available and Adverse Inferences'' in the Preliminary
Decision Memorandum.
Alignment of Final Determination
On July 29, 2013, the Department initiated an antidumping (``AD'')
investigation concurrent with this CVD investigation of steel threaded
rod.\6\ The scope of the merchandise being covered is the same for both
the AD and CVD investigations. On December 11, 2013, Petitioners
submitted a letter, in accordance with section 705(a)(1) of the Act,
requesting alignment of the final CVD determination with the final
determination in the companion AD investigation. Therefore, in
accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4),
the final CVD determination will be issued on the same date as the
final AD determination, which is currently scheduled to be issued on
April 28, 2014.
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\6\ See Steel Threaded Rod from India and Thailand: Initiation
of Antidumping Duty Investigations, 78 FR 44526 (July 24, 2013).
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[[Page 76817]]
Preliminary Determination and Suspension of Liquidation
We preliminarily determine the countervailable subsidy rates to be:
------------------------------------------------------------------------
Subsidy
Company rate
(percent)
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Mangal Steel Enterprises Ltd. (``Mangal'')................. 8.13
Babu Exports (``Babu'').................................... 38.98
All Others................................................. 8.13
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In accordance with sections 703(d)(1)(B) and (2) of the Act, we are
directing U.S. Customs and Border Protection to suspend liquidation of
all entries of steel threaded rod from India that are entered, or
withdrawn from warehouse, for consumption on or after the date of the
publication of this notice in the Federal Register, and to require a
cash deposit for such entries of the merchandise in the amounts
indicated above.
Disclosure and Public Comment
The Department intends to disclose to interested parties the
calculations performed in connection with this preliminary
determination within five days of public announcement of this
determination.\7\ Interested parties may submit case and rebuttals
briefs.\8\ For a schedule of the deadlines for filing case briefs,
rebuttal briefs, and hearing request, see the Preliminary Determination
Memorandum.
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\7\ See 19 CFR 351.224(b).
\8\ See 19 CFR 351.309.
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This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act.
Dated: December 11, 2013.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix 1
Scope of the Investigation
The merchandise covered by this investigation is steel threaded
rod. Steel threaded rod is certain threaded rod, bar, or studs, of
carbon quality steel, having a solid, circular cross section, of any
diameter, in any straight length, that have been forged, turned,
cold-drawn, cold-rolled, machine straightened, or otherwise cold-
finished, and into which threaded grooves have been applied. In
addition, the steel threaded rod, bar, or studs subject to this
investigation are nonheaded and threaded along greater than 25
percent of their total length. A variety of finishes or coatings,
such as plain oil finish as a temporary rust protectant, zinc
coating (i.e., galvanized, whether by electroplating or hot-
dipping), paint, and other similar finishes and coatings, may be
applied to the merchandise.
Included in the scope of this investigation are steel threaded
rod, bar, or studs, in which: (1) Iron predominates, by weight, over
each of the other contained elements; (2) the carbon content is 2
percent or less, by weight; and (3) none of the elements listed
below exceeds the quantity, by weight, respectively indicated:
1.80 percent of manganese, or
1.50 percent of silicon, or
1.00 percent of copper, or
0.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
1.25 percent of nickel, or
0.30 percent of tungsten, or
0.012 percent of boron, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.41 percent of titanium, or
0.15 percent of vanadium, or
0.15 percent of zirconium.
Steel threaded rod is currently classifiable under subheadings
7318.15.5051, 7318.15.5056, 7318.15.5090 and 7318.15.2095 of the
Harmonized Tariff Schedule of the United States (``HTSUS'').
Although the HTSUS subheadings are provided for convenience and
customs purposes, the written description of the merchandise is
dispositive.
Excluded from the scope of this investigation are: (a) Threaded
rod, bar, or studs which are threaded only on one or both ends and
the threading covers 25 percent or less of the total length; and (b)
threaded rod, bar, or studs made to American Society for Testing and
Materials (``ASTM'') A193 Grade B7, ASTM A193 Grade B7M, ASTM A193
Grade B16, and ASTM A320 Grade L7.
Appendix 2
List of Topics Discussed in the Preliminary Decision Memorandum
1. Scope Comments
2. Scope of the Investigation
3. Injury Test
4. Subsidies Valuation
5. Use of Facts Otherwise Available
6. Analysis of Programs
7. Calculation of the All Others Rate
8. ITC Notification
9. Disclosure and Public Comment
10. Verification
[FR Doc. 2013-30113 Filed 12-18-13; 8:45 am]
BILLING CODE 3510-DS-P