[Federal Register Volume 80, Number 99 (Friday, May 22, 2015)]
[Notices]
[Pages 29622-29625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12254]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-818]
Certain Steel Nails From the Socialist Republic of Vietnam: Final
Determination of Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
imports of certain steel nails from the Socialist Republic of Vietnam
(Vietnam) are being, or are likely to be, sold in the United States at
less-than-fair value, as provided in section 735 of the Tariff Act of
1930, as amended (the Act). The final weighted-average dumping margins
of sales at less than fair value are listed below in the ``Final
Determination Margins'' section of this notice.
DATES: Effective date: May 22, 2015.
FOR FURTHER INFORMATION CONTACT: Edythe Artman or Dena Crossland, AD/
CVD Operations, Office VI, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3931 or (202) 482-3362, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published its preliminary determination on December
29, 2014.\1\ On January 2, 2015, United Nail Products Co., Ltd. (United
Nail), a mandatory respondent in this investigation, filed a letter
stating that it had decided to withdraw from the proceeding and would
not be participating in a verification of its questionnaire responses.
On January 7, 2015, the other mandatory respondent, Region Industries
Co., Ltd. (Region Industries), filed a letter to the same effect. On
February 18, 2015, we received a case brief from Petitioner, Mid-
Continent Steel & Wire, Inc. We did not receive any rebuttal comments
or requests for a hearing from interested parties. Based on the events
that transpired after the preliminary determination and an analysis of
the comments received, the Department has made changes to the
Preliminary Determination.
---------------------------------------------------------------------------
\1\ See Certain Steel Nails From the Socialist Republic of
Vietnam: Preliminary Determination of Sales at Less Than Fair Value
and Postponement of Final Determination and Extension of Provisional
Measures, 79 FR 78058 (December 29, 2014) (Preliminary
Determination) and the accompanying Preliminary Decision Memorandum.
---------------------------------------------------------------------------
Period of Investigation
The period of investigation is October 1, 2013, through March 31,
2014.
Scope of the Investigation
The product covered by this investigation is certain steel nails
from Vietnam. For a full description of the scope of the investigation,
see Appendix I to this notice.
Since the Preliminary Determination, several interested parties
(i.e., IKEA Supply AG, The Home Depot, Target Corporation, and
Petitioner) commented on the scope of these investigations. The
Department reviewed these comments and made certain changes. For
further discussion, see the Issue and Decision Memorandum.\2\ The scope
in Appendix I reflects all modifications to the scope made by the
Department for this final determination.
---------------------------------------------------------------------------
\2\ See Memorandum to Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations, from
Abdelali Elouaradia, Acting Office Director, Office VI, Antidumping
and Countervailing Duty Operations, regarding ``Issue and Decision
Memorandum for the Final Determination of the Less-Than-Fair-Value
Investigation of Certain Steel Nails from the Socialist Republic of
Vietnam'' (Issue and Decision Memorandum), dated concurrently with
this determination and hereby adopted by this notice.
---------------------------------------------------------------------------
Verification
In light of each mandatory respondent's decision to withdraw from
the investigation and not to participate in a verification, we
conducted no verifications.
Analysis of Comments Received
Petitioner raised one issue in its case brief, which is addressed
in the Issue and Decision Memorandum. A list of the contents of this
memorandum is attached to this notice in Appendix II. The Issue and
Decision Memorandum is a public document and is on file electronically
via Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). Access to this system
is available to registered and guest users at http://access.trade.gov
and is available to all parties in the Central Records Unit, room 7046
of the main Department of Commerce building. In addition, a complete
version of the Issue and Decision Memorandum can be accessed directly
on the Internet at http://www.trade.gov/enforcement/frn/index.html. The
signed and electronic versions of the Issue and Decision Memorandum are
identical in content.
Changes Since the Preliminary Determination
Based on consideration of the events that transpired after the
preliminary determination and our analysis of the comments received, we
find that Region Industries and United Nail are not separate from the
Vietnam-wide entity and that the estimated dumping margin for the
entity should be based on the adverse facts available on the record,
pursuant to sections 776(a)(2)(A), (C) and (D) and section 776(b) of
the Act. This rate, derived from the Petition,\3\ was corroborated upon
examination of the documentation supporting the Petition. For more
details, see the accompanying Issue and Decision Memorandum and
company-specific analysis memoranda for the final determination.
---------------------------------------------------------------------------
\3\ See Petitions for the Imposition of Antidumping and
Countervailing Duties: Certain Steel Nails from India, the Republic
of Korea, Malaysia, the Sultanate of Oman, Taiwan, the Republic of
Turkey, and the Socialist Republic of Vietnam, dated May 29, 2014
(Petition).
---------------------------------------------------------------------------
Separate Rate
Kosteel Vina Limited Company (Kosteel Vina) established its
eligibility for a separate rate.\4\ The Act and
[[Page 29623]]
regulations do not address how we are to determine the dumping margin
for separate rate companies not selected for individual examination.
Normally, the Department's practice is to assign to separate-rate
companies that were not individually examined a dumping margin equal to
the average of the margins calculated for the individually examined
respondents, excluding any margins that are zero, de minimis, or based
entirely on facts available. If all dumping margins for the
individually examined respondents are zero, de minimis, or based
entirely on facts available, then we will use any reasonable method,
including averaging the dumping margins for the individually examined
respondents. In this investigation, the individually examined
respondents are part of the Vietnam-wide entity, the rate for which is
based entirely on facts available. We have no other reliable margin or
data on the record to determine the separate rate for Kosteel Vina.
Therefore, we have assigned the sole petition rate of 323.99 percent,
which was corroborated by documentation supporting the petition, and is
the only available rate on the record, to Kosteel Vina. For more
details, see the Separate Rate memorandum for the final
determination.\5\
---------------------------------------------------------------------------
\4\ See the Preliminary Decision Memorandum at 7 and 8.
\5\ See Memorandum to Brian Davis, Acting Program Manager,
Office VI, from Edythe Artman, International Trade Compliance
Analyst, Office VI, regarding ``Change in Rate for the Separate-Rate
Company,'' dated May 13, 2015.
---------------------------------------------------------------------------
Combination Rates
In the Initiation Notice, the Department stated that it would
calculate combination rates for the respondents that are eligible for a
separate rate in this investigation.\6\ Policy Bulletin 05.1 sets forth
this practice.\7\
---------------------------------------------------------------------------
\6\ See Certain Steel Nails From India, the Republic of Korea,
Malaysia, the Sultanate of Oman, Taiwan, the Republic of Turkey, and
the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-
Value Investigations, 79 FR 36019 (June 25, 2014) (Initiation
Notice).
\7\ See Enforcement and Compliance Policy Bulletin No. 05.1
``Separate-Rates Practice and Application of Combination Rates in
Antidumping Investigations involving Non-Market Economy Countries,''
(April 5, 2005) (Policy Bulletin 05.1), available on the
Department's Web site at http://enforcement.trade.gov/policy/bull05-1.pdf.
---------------------------------------------------------------------------
Final Determination Margins
The Department determines that the following estimated weighted-
average dumping margins exist for the period October 1, 2013, through
March 31, 2014:
------------------------------------------------------------------------
Weighted-average
Exporter Producer dumping margin
------------------------------------------------------------------------
Kosteel Vina Limited Company. Kosteel Vina Limited 323.99%
Company.
Vietnam-Wide Entity* ..................... 323.99%
------------------------------------------------------------------------
* The Vietnam-wide entity includes the following exporters/producers:
Region Industries Co., Ltd., United Nail Products Co., Ltd., Cong Ty
Tnhh Cong Nghe Nhua A Chau, Kim Tin Group, Megastar Co., Ltd. and
Simone Accessories Collection.
Disclosure
Normally, the Department discloses to interested parties the
calculations performed in connection with a final determination within
five days of the date of public announcement of the final determination
in the Federal Register, in accordance with 19 CFR 351.224(b). However,
because the Department, in accordance with section 776 of the Act,
applied adverse facts available to determine the estimated weighted-
average dumping margin for the mandatory respondents in this
investigation, there are no calculations to disclose to parties.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, the Department
will instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of subject merchandise,
as described in the ``Scope of the Investigation'' section of this
notice, from Vietnam that were entered or withdrawn from warehouse for
consumption on or after December 29, 2014, the publication date of the
Preliminary Determination in the Federal Register.
Consistent with our practice, where the product under investigation
is also subject to a concurrent countervailing duty investigation, we
will instruct CBP to require a cash deposit equal to the amount by
which the normal value exceeds the export price or constructed export
price, adjusted where appropriate for export subsidies and estimated
domestic subsidy pass-through.\8\ In the final determination of the
companion countervailing duty investigation of certain steel nails from
Vietnam, the Department determined that the mandatory respondents and
all other companies benefited from export subsidies.\9\ Thus, we will
offset the estimated weighted-average dumping margin of 323.99 percent
for the Vietnam-wide entity and the separate-rate company by the
countervailing duty rate of 33.59 percent attributable to export
subsidies,\10\ resulting in a cash-deposit rate of 290.40 percent for
the Vietnam-wide entity and the separate-rate company.
---------------------------------------------------------------------------
\8\ See sections 772(c)(1)(C) and 777A(f) of the Act,
respectively. Unlike in administrative reviews, the Department
calculates the adjustment for export subsidies in less-than-fair-
value investigations not in the margin-calculation program, but in
the cash-deposit instructions issued to CBP. See Notice of Final
Determination of Sales at Less Than Fair Value, and Negative
Determination of Critical Circumstances: Certain Lined Paper
Products from India, 71 FR 45012 (August 8, 2006), and accompanying
Issues and Decision Memorandum at Comment 1.
\9\ See Certain Steel Nails From the Socialist Republic of
Vietnam: Final Affirmative Countervailing Duty Determination, and
accompanying Issues and Decision Memorandum at 12-22, signed
concurrently with this notice.
\10\ See id. The following subsidy programs, countervailed for
all companies in the final determination of the concurrent
countervailing duty investigation, are export subsidies:
Preferential Lending to Exporters (1.17 percent), Import Duty
Exemptions and Reimbursements for Imported Raw Materials for
Exported Goods (4.46 percent), Export Factoring (1.17 percent),
Financial Guarantees (1.17 percent), Export Credits from the Vietnam
Development Bank (0.21 percent) and Export Promotion Program (25.41
percent).
---------------------------------------------------------------------------
With respect to the separate-rate company, Kosteel Vina, we find
that an export subsidy adjustment of 33.59 percent to the cash deposit
rate is warranted because this is the export subsidy rate included in
the countervailing duty rate (i.e., the ``All Others'' rate) to which
the separate-rate company is subject in the companion countervailing
duty proceeding. With respect to the Vietnam-wide entity, we find that
an export-subsidy adjustment of 33.59 percent to the cash deposit rate
is warranted because this is the export subsidy rate included in the
countervailing duty rate to which Vietnam-wide entries are currently
subject.
We are not adjusting the final determination rate for estimated
domestic subsidy pass-through because we have no basis upon which to
make such an adjustment.
Pursuant to 19 CFR 351.205(d), we will instruct CBP to require a
cash deposit for all suspended entries at an
[[Page 29624]]
ad valorem rate equal to the weighted-average amount by which normal
value exceeds U.S. price, with the above-noted adjustments, as follows:
(1) The rate for the exporter/producer combinations listed in the chart
above will be the rate we have determined in this final determination;
(2) for all Vietnamese exporters of merchandise under consideration
which have not received their own rate, the cash-deposit rate will be
the rate established for the Vietnam-wide entity; and (3) for all non-
Vietnamese exporters of merchandise under consideration and for all
non-Vietnamese exporters of merchandise under consideration which have
not received their own rate, the cash-deposit rate will be the rate
applicable to the Vietnamese exporter/producer combination that
supplied the non-Vietnamese exporter. These suspension-of-liquidation
and cash-deposit instructions will remain in effect until further
notice.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
U.S. International Trade Commission (ITC) of the final affirmative
determination of sales at less than fair value. Because the final
determination in this proceeding is affirmative, the ITC will make its
final determination, in accordance with section 735(b)(2) of the Act,
as to whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of imports of
certain steel nails from Vietnam no later than 45 days after our final
determination. If the ITC determines that material injury or threat of
material injury does not exist, this proceeding will be terminated and
all securities posted will be refunded or canceled. If the ITC
determines that such injury does exist, then the Department will issue
an antidumping duty order directing CBP to assess, upon further
instruction by the Department, antidumping duties on all imports of the
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation.
Return or Destruction of Proprietary Information
This notice also serves as a reminder to parties subject to
administrative protective orders (APOs) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of the return or destruction of APO materials or
conversion to judicial protective order, is hereby requested. Failure
to comply with the regulations and the terms of an APO is a
sanctionable violation.
Notification to Interested Parties
This determination and notice are issued and published in
accordance with sections 735(d) and 777(i) of the Act.
Dated: May 13, 2015.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is certain steel
nails having a nominal shaft length not exceeding 12 inches.\11\
Certain steel nails include, but are not limited to, nails made from
round wire and nails that are cut from flat-rolled steel. Certain
steel nails may be of one piece construction or constructed of two
or more pieces. Certain steel nails may be produced from any type of
steel, and may have any type of surface finish, head type, shank,
point type and shaft diameter. Finishes include, but are not limited
to, coating in vinyl, zinc (galvanized, including but not limited to
electroplating or hot dipping one or more times), phosphate, cement,
and paint. Certain steel nails may have one or more surface
finishes. Head styles include, but are not limited to, flat,
projection, cupped, oval, brad, headless, double, countersunk, and
sinker. Shank styles include, but are not limited to, smooth,
barbed, screw threaded, ring shank and fluted. Screw-threaded nails
subject to this proceeding are driven using direct force and not by
turning the nail using a tool that engages with the head. Point
styles include, but are not limited to, diamond, needle, chisel and
blunt or no point. Certain steel nails may be sold in bulk, or they
may be collated in any manner using any material.
---------------------------------------------------------------------------
\11\ The shaft length of certain steel nails with flat heads or
parallel shoulders under the head shall be measured from under the
head or shoulder to the tip of the point. The shaft length of all
other certain steel nails shall be measured overall.
---------------------------------------------------------------------------
Excluded from the scope of this investigation are certain steel
nails packaged in combination with one or more non-subject articles,
if the total number of nails of all types, in aggregate regardless
of size, is less than 25. If packaged in combination with one or
more non-subject articles, certain steel nails remain subject
merchandise if the total number of nails of all types, in aggregate
regardless of size, is equal to or greater than 25, unless otherwise
excluded based on the other exclusions below.
Also excluded from the scope are certain steel nails with a
nominal shaft length of one inch or less that are (a) a component of
an unassembled article, (b) the total number of nails is sixty (60)
or less, and (c) the imported unassembled article falls into one of
the following eight groupings: (1) Builders' joinery and carpentry
of wood that are classifiable as windows, French-windows and their
frames; (2) builders' joinery and carpentry of wood that are
classifiable as doors and their frames and thresholds; (3) swivel
seats with variable height adjustment; (4) seats that are
convertible into beds (with the exception of those classifiable as
garden seats or camping equipment); (5) seats of cane, osier, bamboo
or similar materials; (6) other seats with wooden frames (with the
exception of seats of a kind used for aircraft or motor vehicles);
(7) furniture (other than seats) of wood (with the exception of (i)
medical, surgical, dental or veterinary furniture; and (ii) barbers'
chairs and similar chairs, having rotating as well as both reclining
and elevating movements); or (8) furniture (other than seats) of
materials other than wood, metal, or plastics (e.g., furniture of
cane, osier, bamboo or similar materials). The aforementioned
imported unassembled articles are currently classified under the
following Harmonized Tariff Schedule of the United States (HTSUS)
subheadings: 4418.10, 4418.20, 9401.30, 9401.40, 9401.51, 9401.59,
9401.61, 9401.69, 9403.30, 9403.40, 9403.50, 9403.60, 9403.81 or
9403.89.
Also excluded from the scope of this investigation are steel
nails that meet the specifications of Type I, Style 20 nails as
identified in Tables 29 through 33 of ASTM Standard F1667 (2013
revision).
Also excluded from the scope of this investigation are nails
suitable for use in powder-actuated hand tools, whether or not
threaded, which are currently classified under HTSUS subheadings
7317.00.20.00 and 7317.00.30.00.
Also excluded from the scope of this investigation are nails
having a case hardness greater than or equal to 50 on the Rockwell
Hardness C scale (HRC), a carbon content greater than or equal to
0.5 percent, a round head, a secondary reduced-diameter raised head
section, a centered shank, and a smooth symmetrical point, suitable
for use in gas-actuated hand tools.
Also excluded from the scope of this investigation are
corrugated nails. A corrugated nail is made up of a small strip of
corrugated steel with sharp points on one side.
Also excluded from the scope of this investigation are thumb
tacks, which are currently classified under HTSUS subheading
7317.00.10.00.
Certain steel nails subject to this investigation are currently
classified under HTSUS subheadings 7317.00.55.02, 7317.00.55.03,
7317.00.55.05, 7317.00.55.07, 7317.00.55.08, 7317.00.55.11,
7317.00.55.18, 7317.00.55.19, 7317.00.55.20, 7317.00.55.30,
7317.00.55.40, 7317.00.55.50, 7317.00.55.60, 7317.00.55.70,
7317.00.55.80, 7317.00.55.90, 7317.00.65.30, 7317.00.65.60 and
7317.00.75.00. Certain steel nails subject to this investigation
also may be classified under HTSUS subheading 8206.00.00.00 or other
HTSUS subheadings.
While the HTSUS subheadings are provided for convenience and
customs purposes, the written description of the scope of this
investigation is dispositive.
[[Page 29625]]
Appendix II
Contents of the Accompanying Final Issue and Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Scope Comments
VI. Discussion of Comments
Comment 1: Application of Adverse Facts Available to Mandatory
Respondents
VII. Recommendation
[FR Doc. 2015-12254 Filed 5-21-15; 8:45 am]
BILLING CODE 3510-DS-P