[Federal Register Volume 82, Number 212 (Friday, November 3, 2017)]
[Notices]
[Pages 51213-51216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-23974]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-055]


Carton-Closing Staples From the People's Republic of China: 
Preliminary Affirmative Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination and Extension of Provisional 
Measures

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that carton closing staples from the People's Republic of 
China (PRC) are being, or are likely to be, sold in the United States 
at less than fair value (LTFV). The period of investigation (POI) is 
July 1, 2016 through December 31, 2016.

[[Page 51214]]


DATES: Applicable November 3, 2017.

FOR FURTHER INFORMATION CONTACT: Irene Gorelik at (202) 482-6905, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on April 27, 
2017.\1\ On August 23, 2017, the Department postponed the preliminary 
determination of this investigation, and the revised deadline is now 
October 27, 2017.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. 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 (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov, 
and to all parties in the Central Records Unit, room B8024 of the main 
Department of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
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    \1\ See Carton-Closing Staples from the People's Republic of 
China: Initiation of Less-Than-Fair-Value Investigation, 82 FR 19351 
(April 27, 2017) (Initiation Notice).
    \2\ See Carton-Closing Staples from the People's Republic of 
China: Postponement of Preliminary Determination in the Less-Than-
Fair-Value Investigation, 82 FR 39982 (August 23, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Carton-
Closing Staples from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are carton-closing 
staples from the PRC. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in Appendix I of 
this notice.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (scope).\5\ An interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice. For a summary of the product coverage comments 
submitted on the record for this investigation, and accompanying 
discussion and analysis of the comments timely received, see the 
Preliminary Decision Memorandum.\6\ The Department is not preliminarily 
modifying the scope language as it appeared in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 82 FR at 19352.
    \6\ See Preliminary Decision Memorandum at pages 3-4.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. The Department has calculated export prices in 
accordance with section 772(a) of the Act. Because the PRC is a non-
market economy, within the meaning of section 771(18) of the Act, the 
Department has calculated normal value (NV) in accordance with section 
773(c) of the Act. In addition, pursuant to section 776(a) and (b) of 
the Act, the Department preliminarily has relied upon facts otherwise 
available, with adverse inferences, for the PRC-wide entity, including 
Zhejiang Best Nail Industrial Co., Ltd. (Best Nail). For a full 
description of the methodology underlying the Department's preliminary 
determination, see the Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,\7\ the Department stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\8\
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    \7\ See Initiation Notice, 82 FR at 19355.
    \8\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``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.
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Preliminary Determination

    The Department preliminarily determines that the following 
estimated weighted-average dumping margins exist:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                                                              average
            Producer                     Exporter             dumping
                                                              margin
                                                             (percent)
------------------------------------------------------------------------
Yueda Group: \9\ Shanghai Yueda  Yueda Group: Shanghai             13.74
 Nails Co., Ltd., or Qiushan      Yueda Nails Co., Ltd.,
 Printing Machinery Co., Ltd.     or Fastnail Products
                                  Limited, or Wuhan FOPO
                                  Trading Co., Ltd.
Hangzhou Huayu Machinery Co.,    Hangzhou Huayu                    13.74
 Ltd.                             Machinery Co., Ltd.
The Stanley Works (Langfang)     The Stanley Works                 13.74
 Fastening Systems Co., Ltd.      (Langfang) Fastening
                                  Systems Co., Ltd.
---------------------------------------------------------
                  PRC-Wide Entity \10\                             58.93
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, the Department 
will direct U.S. Customs and Border Protection (CBP) to suspend 
liquidation of subject merchandise as described in the scope of the 
investigation section entered, or withdrawn from warehouse, for 
consumption on or after the date of

[[Page 51215]]

publication of this notice in the Federal Register, as discussed below. 
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 
351.205(d), the Department will instruct CBP to require a cash deposit 
equal to the weighted average amount by which normal value exceeds U.S. 
price, as indicated in the chart above as follows: (1) For the 
producer/exporter combinations listed in the table above, the cash 
deposit rate is equal to the estimated weighted-average dumping margin 
listed for that combination in the table; (2) for all combinations of 
PRC producers/exporters of subject merchandise that have not 
established eligibility for their own separate rates, the cash deposit 
rate will be equal to the estimated weighted-average dumping margin 
established for the PRC-wide entity; and (3) for all third-county 
exporters of subject merchandise not listed in the table above, the 
cash deposit rate is the cash deposit rate applicable to the PRC 
producer/exporter combination (or the PRC-wide entity) that supplied 
that third-country exporter. These suspension of liquidation 
instructions will remain in effect until further notice.
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    \9\ The Department preliminarily determines that Shanghai Yueda 
Nails Co., Ltd, Qiushan Printing Machinery Co., Ltd., Fastnail 
Products Limited, and Wuhan FOPO Trading Co., Ltd. comprise a single 
entity. See Preliminary Decision Memorandum. See also Memorandum, 
``Preliminary Affiliation and Single Entity Determination,'' dated 
concurrently with, and hereby adopted by, this notice.
    \10\ As detailed in the Preliminary Decision Memorandum, Best 
Nail, a mandatory respondent in this investigation, and certain 
other non-responsive PRC companies did not demonstrate that they 
were entitled to a separate rate. Accordingly, we consider these 
companies to be part of the PRC-wide entity.
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Disclosure

    The Department intends to disclose to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement or, if there 
is no public announcement, within five days of the date of publication 
of this notice in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, the Department intends 
to verify information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the verification report is issued in this 
investigation, unless the Secretary alters the time limit. Rebuttal 
briefs, limited to issues raised in case briefs, may be submitted no 
later than five days after the deadline date for case briefs.\11\ 
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case 
briefs or rebuttal briefs in this investigation are encouraged to 
submit with each argument: (1) A statement of the issue; (2) a brief 
summary of the argument; and (3) a table of authorities.
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    \11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, the 
Department intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Pursuant to 19 CFR 351.210(e)(2), the Department 
requires that requests by respondents for postponement of a final 
antidumping determination be accompanied by a request for extension of 
provisional measures from a four-month period to a period not more than 
six months in duration.
    On October 10, 2017, pursuant to 19 CFR 351.210(b)(2)(ii), Yueda 
requested\12\ that the Department postpone its final determination and 
extend the application of the provisional measures prescribed under 
section 773(d) of the Act and 19 CFR.210(e)(2), from a four-month 
period to a period not to exceed six months. In accordance with section 
735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because (1) the 
preliminary determination is affirmative; (2) the requesting exporter 
accounts for a significant proportion of exports of the subject 
merchandise; and (3) no compelling reasons for denial exist, the 
Department is granting Yueda's request by postponing the final 
determination and extending the provisional measures from a four-month 
period to a period not greater than six months. Accordingly, the 
Department's final determination will publish no later than 135 days 
after the date of publication of this preliminary determination.
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    \12\ See Yueda's letter to the Department, re: ``Extension 
Request for Final Determination,'' dated October 10, 2017.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, the Department will 
notify the International Trade Commission (ITC) of its preliminary 
determination of sales at LTFV. If the final determination is 
affirmative, the ITC will determine before the later of 120 days after 
the date of this preliminary determination or 45 days after the final 
determination whether imports of the subject merchandise are materially 
injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

     Dated: October 27, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation is carton-closing staples. 
Carton-closing staples may be manufactured from carbon, alloy, or 
stainless steel wire, and are included in the scope of the 
investigation regardless of whether they are uncoated or coated, 
regardless of the type of coating.
    Carton-closing staples are generally made to American Society 
for Testing and Materials (ASTM) specification ASTM D1974/D1974M-16, 
but can also be made to other specifications. Regardless of 
specification, however, all carton-closing staples meeting the scope 
description are included in the scope. Carton-closing staples 
include stick staple products, often referred to as staple strips, 
and roll staple products, often referred to as coils. Stick staples 
are lightly cemented or lacquered together to facilitate handling 
and loading into stapling machines. Roll staples are taped together 
along their crowns. Carton-closing staples are covered regardless of 
whether they are imported in stick form or roll form.
    Carton-closing staples vary by the size of the wire, the width 
of the crown, and the length of the leg. The nominal leg length 
ranges from 0.4095 inch to 1.375 inches and the nominal crown width 
ranges from 1.125

[[Page 51216]]

inches to 1.375 inches. The size of the wire used in the production 
of carton-closing staples varies from 0.029 to 0.064 inch (nominal 
thickness) by 0.064 to 0.100 inch (nominal width).
    Carton-closing staples subject to this investigation are 
currently classifiable under subheadings 8305.20.00.00 and 
7317.00.65.60 of the Harmonized Tariff Schedule of the United States 
(``HTSUS''). While the HTSUS subheadings and ASTM specification are 
provided for convenience and for customs purposes, the written 
description of the subject merchandise is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Selection of Respondents
VII. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Surrogate Country and Surrogate Values Comments
    C. Separate Rates
    D. Combination Rates
    E. Affiliation and Single Entity
    F. The PRC-Wide Entity
    G. Application of Facts Available and Adverse Inferences
    H. Date of Sale
    I. Fair Value Comparisons
    J. Export Price
    K. Value-Added Tax (VAT)
    L. Normal Value
    M. Factor Valuation Methodology
VIII. Currency Conversion
IX. Verification
X. Conclusion

[FR Doc. 2017-23974 Filed 11-2-17; 8:45 am]
BILLING CODE 3510-DS-P