[Federal Register Volume 79, Number 39 (Thursday, February 27, 2014)]
[Notices]
[Pages 11085-11088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04343]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-013]
Carbon and Certain Alloy Steel Wire Rod From the People's
Republic of China: Initiation of Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, formerly Import Administration,
International Trade Administration, Department of Commerce.
DATES: Effective Date: February 27, 2014.
FOR FURTHER INFORMATION CONTACT: Rebecca Trainor at (202) 482-4007 or
Irene Darzenta Tzafolias at (202) 482-0922, AD/CVD Operations,
Enforcement and Compliance, International Trade Administration,
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petition
On January 31, 2013, the Department of Commerce (the Department)
received a countervailing duty (CVD) petition concerning imports of
carbon and certain alloy steel wire rod (steel wire rod) from the
People's Republic of China (PRC), filed in proper form, on behalf of
ArcelorMittal USA LLC, Charter Steel, Evraz Pueblo (formerly Evraz
Rocky Mountain Steel), Gerdau Ameristeel US Inc., Keystone Consolidated
Industries, Inc., and Nucor Corporation (collectively, the
petitioners).\1\ The CVD petition was accompanied by an antidumping
duty (AD) petition with respect to the PRC.\2\ The petitioners are
domestic producers of steel wire rod. On February 5, 2014, the
Department requested information and clarification for certain portions
of the petition.\3\ The petitioners filed their response to this
request on February 11, 2014.\4\
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\1\ See Petition for the Imposition of Countervailing Duties on
Imports of Carbon and Certain Alloy Steel Wire Rod from the People's
Republic of China, dated January 31, 2013 (CVD petition or
petition).
\2\ See Petition for the Imposition of Antidumping Duties on
Imports of Carbon and Certain Alloy Steel Wire Rod from the People's
Republic of China, dated January 31, 2013 (AD petition).
\3\ See Petition for the Imposition of Countervailing Duties on
Carbon and Certain Alloy Steel Wire Rod from the People's Republic
of China: Supplemental Questions, dated February 5, 2014.
\4\ See Petitioners' Response to Commerce Department Request for
Petition Clarifications--Carbon and Certain Steel Wire Rod from the
People's Republic of China, dated February 11, 2014.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioners allege that the Government of the
PRC (GOC) is providing countervailable subsidies (within the meaning of
sections 701 and 771(5) of the Act) with respect to imports of steel
wire rod from the PRC, and that imports of steel wire rod from the PRC
are materially injuring, and threaten material injury to, the domestic
industry producing steel wire rod in the United States. The Department
finds that the petitioners filed the petition on behalf of the domestic
industry because the petitioners are interested parties as defined in
sections 771(9)(C) and (D) of the Act, and that the petitioners
demonstrated sufficient industry support with respect to the initiation
of the investigation the petitioners are requesting.\5\
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\5\ See ``Determination of Industry Support for the Petition''
below.
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Period of Investigation
The period of investigation (POI) is January 1, 2013, through
December 31, 2013.
Scope of Investigation
The product covered by this investigation is steel wire rod from
the PRC. For a full description of the scope of this investigation, see
``Scope of Investigation'' at Appendix I of this notice.
Comments on Scope of Investigation
During our review of the petition, the Department issued questions
to, and received responses from, the petitioners pertaining to the
proposed scope in order to ensure that the scope language in the
petition would be an accurate reflection of the products for which the
domestic industry is seeking relief. As discussed in the Preamble to
the regulations,\6\ we are setting aside a period for interested
parties to raise issues regarding product coverage. The Department
encourages interested parties to submit such comments by 5:00 p.m. EST
on March 12, 2014. All comments must be filed on the records of the PRC
CVD investigation, as well as the concurrent PRC AD investigation.
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\6\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
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Filing Requirements
All submissions to the Department must be filed electronically
using Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (IA ACCESS). An electronically
filed document must be received successfully in its entirety by the
time and date noted above. Documents excepted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 1870,
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230, and stamped with the date and time of receipt by
the deadline noted above.\7\
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\7\ See 19 CFR 351.303(b). Information regarding IA ACCESS
assistance can be found at https://iaaccess.trade.gov/help.aspx and
a handbook can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
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Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department
invited representatives of the GOC for consultations with respect to
the petition.\8\ Consultations were held with the GOC on February 18,
2014.\9\
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\8\ See Letter of Invitation Regarding Countervailing Duty
Petition on Carbon and Alloy Steel Wire Rod from the People's
Republic of China, dated January 31, 2014.
\9\ See Memorandum to the File, ``Consultations with Official
from the Government of the People's Republic of China on the
Countervailing Duty Petition Regarding Carbon and Alloy Steel Wire
Rod from the People's Republic of China,'' dated February 19, 2014.
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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
[[Page 11086]]
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) if there is a large number of producers in the industry, the
Department may 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 U.S. 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,\10\ 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.\11\
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\10\ See section 771(10) of the Act.
\11\ 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 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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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, the 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 determined that steel wire rod, as defined in the
scope of the investigation, constitutes a single domestic like product
and we analyzed industry support in terms of that domestic like
product.\12\
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\12\ See Countervailing Duty Investigation Initiation Checklist:
Carbon and Certain Alloy Steel Wire Rod from the People's Republic
of China (CVD Initiation Checklist), at Attachment II, Analysis of
Industry Support for the Antidumping and Countervailing Duty
Petitions Covering Carbon and Certain Alloy Steel Wire Rod from the
People's Republic of China (Attachment II). This checklist is dated
concurrently with this notice and on file electronically via IA
ACCESS. Access to documents filed via IA ACCESS is also available in
the Central Records Unit, Room 7046 of the main Department of
Commerce building.
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In determining whether the 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'' section above. To
establish industry support, the petitioners provided the production of
the domestic like product in 2013 of all supporters of the petition,
and compared this to the total production of the domestic like product
for the entire domestic industry.\13\ We relied upon data the
petitioners provided for purposes of measuring industry support.\14\
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\13\ See Volume I of the Petition, at 4-5 and Exhibit GEN-1.
\14\ See CVD Initiation Checklist, at Attachment II.
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Based on information provided in the petition, supplemental
submission, and other information readily available to the Department,
we determine that the petitioners 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.\15\ Based on information provided in the petition, 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 production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the petition. 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.\16\
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\15\ Id.
\16\ Id.
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The Department finds that the 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 that they are requesting the Department initiate.\17\
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\17\ Id.
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Injury Test
Because the PRC 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 the PRC materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The 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. The petitioners allege that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\18\
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\18\ See Volume I of the Petition, at 13 and Exhibit INJ-1; see
also General Issues Supplement to the Petition, dated February 7,
2014 (General Issues Supplement), at 6.
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The petitioners contend that the industry's injured condition is
illustrated by reduced market share; underselling and price depression
or suppression; lost sales and revenues; reduced production and
shipments; anemic capacity utilization; decline in employment
variables; and decline in financial performance.\19\ We assessed the
allegations and supporting evidence regarding material injury, threat
of material injury, and causation, and we determined that these
allegations are properly supported by adequate evidence and meet the
statutory requirements for initiation.\20\
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\19\ See Volume I of the Petition, at 9-20 and Exhibits GEN-6,
and INJ-1 through INJ-5; see also General Issues Supplement, at 6
and Exhibit INJ-6.
\20\ See CVD Initiation Checklist, at Attachment III, Analysis
of Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering Carbon and
Certain Alloy Steel Wire Rod from the People's Republic of China.
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Initiation of Countervailing Duty Investigation
Section 702(b)(1) of the Act requires the Department to initiate a
CVD investigation whenever an interested
[[Page 11087]]
party files a CVD 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 supporting the allegations. In the petition, the
petitioners allege that producers/exporters of steel wire rod in the
PRC benefited from countervailable subsidies bestowed by the
government. The Department has examined the petition and finds that it
complies with the requirements of section 702(b)(1) of the Act.
Therefore, in accordance with section 702(b)(1) of the Act, we are
initiating a CVD investigation to determine whether manufacturers,
producers, or exporters of steel wire rod from the PRC receive
countervailable subsidies from the government.
Based on our review of the petition, we find that there is
sufficient information to initiate a CVD investigation on certain
alleged programs. For a full discussion of the basis for our decision
to initiate or not initiate on each program, see PRC CVD Initiation
Checklist.
A public version of the initiation checklist is available on IA
ACCESS and at http://trade.gov/enforcement/news.asp.
Respondent Selection
For this investigation, the Department intends to select
respondents based on U.S. Customs and Border Protection (CBP) data for
U.S. imports of subject merchandise during the POI under the following
Harmonized Tariff Schedule of the United States (HTS) numbers:
7213.91.3011, 7213.91.3015, 7213.91.3020, 7213.91.3093; 7213.91.4500,
7213.91.6000, 7213.99.0030, 7227.20.0030, 7227.20.0080, 7227.90.6010,
7227.90.6020, 7227.90.6030, 7227.90.6035, and 7227.90.6085.\21\ We
intend to release the CBP data under Administrative Protective Order
(APO) to all parties with access to information protected by APO
shortly after the announcement of this case initiation. Interested
parties must submit applications for disclosure under APO in accordance
with 19 CFR 351.305(b). Instructions for filing such applications may
be found at http://enforcement.trade.gov/apo/.
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\21\ While HTS number 7227.90.6085 is not included in the scope,
information in the petition indicates that certain subject
merchandise was classified under this number during the POI. See
Volume I of the Petition, at 8.
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Interested parties may submit comments regarding the CBP data and
respondent selection by 5:00 p.m. EST on the seventh calendar day after
publication of this notice. Comments must be filed in accordance with
the filing requirements stated above. If respondent selection is
necessary, we intend to base our decision regarding respondent
selection upon comments received from interested parties and our
analysis of the record information within 20 days of publication of
this 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), copies of the public version of the petitions have been
provided to the GOC via IA ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the petition to each
known exporter (as named in the petition), as provided in 19 CFR
351.203(c)(2).
ITC Notification
We 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 steel wire rod from the PRC are materially
injuring, or threatening material injury to, a U.S. industry.\22\ A
negative ITC determination will result in the investigation being
terminated; otherwise, this investigation will proceed according to
statutory and regulatory time limits.
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\22\ See section 703(a) of the Act.
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Submission of Factual Information
On April 10, 2013, the Department published Definition of Factual
Information and Time Limits for Submission of Factual Information:
Final Rule, 78 FR 21246 (April 10, 2013), which modified two
regulations related to AD and CVD proceedings: The definition of
factual information (19 CFR 351.102(b)(21)), and the time limits for
the submission of factual information (19 CFR 351.301). The final rule
identifies five categories of factual information in 19 CFR
351.102(b)(21), which are summarized as follows: (i) Evidence submitted
in response to questionnaires; (ii) evidence submitted in support of
allegations; (iii) publicly available information to value factors
under 19 CFR 351.408(c) or to measure the adequacy of remuneration
under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by the
Department; and (v) evidence other than factual information described
in (i)-(iv). The final rule requires any party, when submitting factual
information, to specify under which subsection of 19 CFR 351.102(b)(21)
the information is being submitted and, if the information is submitted
to rebut, clarify, or correct factual information already on the
record, to provide an explanation identifying the information already
on the record that the factual information seeks to rebut, clarify, or
correct. The final rule also modified 19 CFR 351.301 so that, rather
than providing general time limits, there are specific time limits
based on the type of factual information being submitted. These
modifications are effective for all segments initiated on or after May
10, 2013, and thus are applicable to this investigation. Please review
the final rule, available at http://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt, prior to submitting factual information in this
investigation.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\23\
Parties are hereby reminded that the Department issued a final rule
with respect to certification requirements, effective August 16, 2013.
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials as well as their
representatives. All segments of any AD or CVD proceedings initiated on
or after August 16, 2013, should use the formats for the revised
certifications provided at the end of the Final Rule.\24\ The
Department intends to reject factual submissions if the submitting
party does not comply with the applicable revised certification
requirements.
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\23\ See section 782(b) of the Act.
\24\ See Certification of Factual Information To Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also the
frequently asked questions regarding the Final Rule, available at
the following: http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Extension of Time Limits
On September 20, 2013, the Department published Extension of Time
Limits, Final Rule, 78 FR 57790 (September 20, 2013), which modified
one regulation related to AD and CVD proceedings regarding the
extension of time limits for submissions in such proceedings (19 CFR
351.302(c)). These modifications are effective for all segments
initiated on or after October 21, 2013, and thus are applicable to this
investigation. Please review the final rule, available at http://
www.gpo.gov/
[[Page 11088]]
fdsys/pkg/FR-2013-09-20/html/2013-22853.htm prior to requesting an
extension.
Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO 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 (January
22, 2008). 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)).
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: February 20, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is certain hot-
rolled products of carbon steel and alloy steel, in coils, of
approximately circular cross section, less than 19.00 mm in actual
solid cross-sectional diameter. Specifically excluded are steel
products possessing the above-noted physical characteristics and
meeting the Harmonized Tariff Schedule of the United States (HTSUS)
definitions for (a) stainless steel; (b) tool steel; (c) high nickel
steel; (d) ball bearing steel; or (e) concrete reinforcing bars and
rods. Also excluded are free cutting steel (also known as free
machining steel) products (i.e., products that contain by weight one
or more of the following elements: 0.1 percent or more of lead, 0.05
percent or more of bismuth, 0.08 percent or more of sulfur, more
than 0.04 percent of phosphorus, more than 0.05 percent of selenium,
or more than 0.01 percent of tellurium). All products meeting the
physical description of subject merchandise that are not
specifically excluded are included in this scope.
The products under investigation are currently classifiable
under subheadings 7213.91.3011, 7213.91.3015, 7213.91.3020,
7213.91.3093; 7213.91.4500, 7213.91.6000, 7213.99.0030,
7227.20.0030, 7227.20.0080, 7227.90.6010, 7227.90.6020,
7227.90.6030, and 7227.90.6035 of the HTSUS. Products entered under
subheadings 7213.99.0090 and 7227.90.6090 of the HTSUS also may be
included in this scope if they meet the physical description of
subject merchandise above. Although the HTSUS subheadings are
provided for convenience and customs purposes, the written
description of the scope of this proceeding is dispositive.
[FR Doc. 2014-04343 Filed 2-26-14; 8:45 am]
BILLING CODE 3510-DS-P