[Federal Register Volume 79, Number 32 (Tuesday, February 18, 2014)]
[Notices]
[Pages 9162-9164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-03490]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-856]
Steel Threaded Rod from India: Preliminary Affirmative
Determination of Critical Circumstances for the Countervailing Duty
Investigation
AGENCY: Enforcement and Compliance, formerly Import Administration,
International Trade Administration, Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') has preliminarily
determined that critical circumstances exist with respect to imports of
subject merchandise in the countervailing duty (``CVD'') investigation
of steel threaded rod from India, with the exception of imports from
Mangal Steel Enterprises Limited (``Mangal Steel'').
DATES: Effective Date: February 18, 2014.
FOR FURTHER INFORMATION CONTACT: Andrew Medley, AD/CVD Operations,
Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, Room 4416, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: 202-482-4987.
SUPPLEMENTARY INFORMATION:
Case History
On June 27, 2013, the Department received a CVD Petition concerning
imports of steel threaded rod from India filed in proper form by All
America Threaded Products Inc.; Bay Standard Manufacturing Inc.; and
Vulcan Threaded Products Inc. (collectively, ``Petitioners'').\1\ This
investigation was initiated on July 17, 2013.\2\ The affirmative
Preliminary Determination was published on December 19, 2013.\3\
---------------------------------------------------------------------------
\1\ See submission by Petitioners titled ``Petitions for the
Imposition of Antidumping Duties on Steel Threaded Rod from Thailand
and Antidumping and Countervailing Duties on Steel Threaded Rod from
India,'' and dated June 27, 2013 (``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, Room 7046 of the main Department of Commerce building.
\2\ See Steel Threaded Rod From India: Initiation of
Countervailing Duty Investigation, 78 FR 44532 (July 24, 2013), and
accompanying Initiation Checklist.
\3\ See Steel Threaded Rod from India: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final
Determination with Final Antidumping Determination, 78 FR 76815
(December 19, 2013) (``Preliminary Determination'').
---------------------------------------------------------------------------
On January 10, 2014, Petitioners alleged that critical
circumstances exist with respect to imports of steel threaded rod from
India and submitted U.S. Census Bureau import data in support of their
allegation. On January 17, 2014, the Department requested from Mangal
Steel monthly shipment data of subject merchandise to the United States
for the period February 2013 through November 2013. On January 22,
2014, Mangal Steel submitted the requested data.
Period of Investigation
The period for which we are measuring subsidies, or the period of
investigation (``POI''), is calendar year 2012.
Scope of 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.\4\
---------------------------------------------------------------------------
\4\ For a complete description of the scope of the
investigation, see Appendix 1 to the Preliminary Determination.
---------------------------------------------------------------------------
[[Page 9163]]
Comments of the Parties
In their critical circumstances allegation, Petitioners 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 Mangal Steel and
Babu Exports (``Babu'') received subsidies which are contingent on
export performance.
Petitioners also claim that there have been massive imports of
steel threaded rod in the five months following the filing of the
Petition on June 27, 2013. Petitioners provided data 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 Tariff Act of 1930, as amended (``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).\5\
---------------------------------------------------------------------------
\5\ 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).
---------------------------------------------------------------------------
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).\6\
---------------------------------------------------------------------------
\6\ See 19 CFR 351.206(h)(2).
---------------------------------------------------------------------------
19 CFR 351.206(i) 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., February 2013 through June 2013) and a five-month
comparison period (i.e., July 2013 through November 2013).
Mangal Steel
In the Preliminary Determination, the Department found that, during
the POI, Mangal Steel received countervailable benefits under five
programs that are contingent upon export performance: Pre- and Post-
Shipment Export Financing, Duty Drawback, Export Promotion of Capital
Goods Scheme, Focus Product Scheme, and Status Holder Incentive Scrip.
Therefore, we preliminarily determine that there is a reasonable basis
to believe or suspect that these programs are inconsistent with the
Subsidies Agreement.
In determining whether there were massive imports from Mangal
Steel, we analyzed Mangal Steel's monthly shipment data for the period
February 2013 through November 2013. These data indicate that there was
not a massive increase in shipments of subject merchandise to the
United States by Mangal Steel during the five-month period immediately
following the filing of the Petition on June 27, 2013.\7\
---------------------------------------------------------------------------
\7\ See the Memorandum to the File from Andrew Medley titled
``Critical Circumstances Shipment Data Analysis,'' dated
concurrently with this notice (``Critical Circumstances
Memorandum'').
---------------------------------------------------------------------------
Babu
Because Babu is not participating in this investigation,\8\
consistent with Department practice, we have based our critical
circumstances determination for Babu on adverse facts available
(``AFA''), in accordance with sections 776(a) and (b) of the Act and 19
CFR 351.308(c).\9\ As AFA, we preliminarily determine that Babu
received countervailable benefits under programs that are contingent
upon export performance. Also, as AFA, we preliminarily determine that
Babu made massive imports of subject merchandise over a relatively
short period of time.
---------------------------------------------------------------------------
\8\ Babu did not respond to the Department's September 6, and
19, 2013, questionnaires; thus, for the Preliminary Determination,
we based Babu's CVD rate upon facts otherwise available and made an
adverse inference for Babu, pursuant to section 776(b) of the Act,
because we determined that, by not responding to our questionnaires,
Babu had failed to cooperate to the best of its ability.
\9\ See, e.g., Final Determination of Sales at Less Than Fair
Value and Affirmative Determination of Critical Circumstances: Small
Diameter Graphite Electrodes from the People's Republic of China, 74
FR 2049, 2052-53 (January 14, 2009), where we cite to the Statement
of Administrative Action accompanying the Uruguay Round Agreements
Act, H.R. Doc. 103-316, Vol. 1 (1994) at 870, noting that the
Department may employ adverse inferences in selecting from among the
facts available ``to ensure that the party does not obtain a more
favorable result by failing to cooperate fully.''
---------------------------------------------------------------------------
All Other Exporters
With regard to whether imports of subject merchandise by the ``all
other'' exporters of steel threaded rod from India 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 section 703(e)(1)(B) of the Act and 19 CFR 351.206(h). Therefore,
we analyzed, in accordance with 19 CFR 351.206(i), monthly shipment
data for the period February 2013 through November 2013, using shipment
data from the U.S. Census Bureau, adjusted to remove shipments reported
by the only exporter actively participating in this investigation,
Mangal Steel.\10\ The resulting data indicate there was a massive
increase in shipments, as defined by 19 CFR 351.206(h)(2).\11\
---------------------------------------------------------------------------
\10\ See, e.g., Steel Wire Garment Hangers From the Socialist
Republic of Vietnam: Preliminary Affirmative Determination of
Critical Circumstances, 77 FR 73430, 73432 (December 10, 2012),
unchanged in Certain Steel Wire Garment Hangers From the Socialist
Republic of Vietnam: Final Affirmative Countervailing Duty
Determination and Final Affirmative Critical Circumstances
Determination, 77 FR 75973, 75974 (December 26, 2012); see also
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, 64047 (December 7, 2009).
\11\ See Critical Circumstances Memorandum.
---------------------------------------------------------------------------
Conclusion
We preliminarily determine that critical circumstances do not exist
with regard to shipments from one mandatory respondent, Mangal Steel
and, as AFA, preliminarily determine that critical circumstances exist
with regard to shipments from the other mandatory respondent, Babu. We
also preliminarily determine, based on our analysis of the shipment
data on the record, that critical circumstances exist for imports from
``all other'' exporters of
[[Page 9164]]
steel threaded rod from India. We will make a final determination
concerning critical circumstances for steel threaded rod from India
when we make our final countervailable subsidy determination in this
investigation. As provided in section 782(i)(1) of the Act, we intend
to verify the information submitted in response to the Department's
questionnaires.
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 regards to all exporters except Mangal Steel, of any unliquidated
entries of subject merchandise from the India entered, or withdrawn
from warehouse for consumption, on or after September 20, 2013, 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: February 7, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2014-03490 Filed 2-14-14; 8:45 am]
BILLING CODE 3510-DS-P