[Federal Register Volume 78, Number 142 (Wednesday, July 24, 2013)]
[Notices]
[Pages 44532-44535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-17795]



[[Page 44532]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-856]


Steel Threaded Rod From India: Initiation of Countervailing Duty 
Investigation

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

DATES: Effective Date: July 24, 2013.

FOR FURTHER INFORMATION CONTACT: Brooke Kennedy, AD/CVD Operations, 
Office 8, Import Administration, International Trade Administration, 
U.S. Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: (202) 482-3818.

SUPPLEMENTARY INFORMATION: 

The Petition

    On June 27, 2013, the Department of Commerce (``Department'') 
received a countervailing duty (``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 hereinafter ``Petitioners'').\1\ 
Petitioners are domestic producers of steel threaded rod. On July 2, 
and July 3, 2013, the Department requested additional information and 
clarification of certain areas of the Petition. Petitioners provided 
timely information supplementing the Petition on July 8, and July 9, 
2013.\2\
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    \1\ See Petitions for the Imposition of Antidumping Duties on 
Steel Threaded Rod from India and Thailand and the Imposition of 
Countervailing Duties on Steel Threaded Rod from India, dated June 
27, 2013, (``the Petition'').
    \2\ See Antidumping Investigation of Steel Threaded Rod from 
Thailand and Antidumping and Countervailing Duty Investigations of 
Steel Threaded Rod from India--Petitioners' Response to Supplemental 
Questions (Volume I: General Issues and Injury Information), dated 
July 8, 2013 (``General Issues Supplement''), and Countervailing 
Duty Investigation (``CVD'') of Steel Threaded Rod from India--
Petitioners' Response to Supplemental Questions (Volume IV: CVD--
India), dated July 9, 2013.
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    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (``the Act''), Petitioners allege that manufacturers, 
producers, or exporters of steel threaded rod from India receive 
countervailable subsidies within the meaning of sections 701 and 771(5) 
of the Act, and that such imports are materially injuring, or 
threatening material injury to, the domestic industry producing steel 
threaded rod in the United States. Also, consistent with section 
702(b)(1) of the Act, the Petition is accompanied by information 
reasonably available to Petitioners supporting their allegations.
    The Department finds that 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. The Department also finds that 
Petitioners have demonstrated sufficient industry support with respect 
to the investigation that Petitioners request the Department 
initiate.\3\
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    \3\ See ``Determination of Industry Support for the Petition'' 
below.
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Period of Investigation

    The period of investigation is January 1, 2012, through December 
31, 2012.

Scope of the Investigation

    The product covered by this investigation is steel threaded rod 
from India. For a full description of the scope of the investigation, 
see the ``Scope of the Investigation'' in Appendix I to this notice.

Comments on Scope of Investigation

    During our review of the Petition, the Department had discussions 
pertaining to the proposed scope with Petitioners to ensure that the 
scope language in the Petition was an accurate reflection of the 
products for which the domestic industry is seeking relief. Moreover, 
as discussed in the preamble to the regulations,\4\ we are setting 
aside a period of time for interested parties to raise issues regarding 
product coverage. This period for scope comments is intended to provide 
the Department with ample opportunity to consider all issues and to 
consult with parties prior to the issuance of the preliminary 
determinations. The Department encourages interested parties to submit 
such comments by 5:00 p.m. Eastern Daylight Time on Tuesday, August 6, 
2013, which is 20 calendar days from the signature date of this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
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    All submissions to the Department must be filed electronically 
using Import Administration's Antidumping and Countervailing Duty 
Centralized Electronic Service System (``IA ACCESS''). An 
electronically filed document must be received successfully in its 
entirety by the Department's electronic records system, IA ACCESS, by 
the time and date set by the Department. Documents excepted from the 
electronic submission requirements must be filed manually (i.e., in 
paper form) with the Import Administration's APO/Dockets Unit, Room 
1870, U.S. Department of Commerce, 14th Street and Constitution Avenue 
NW., Washington, DC 20230, and stamped with the date and time of 
receipt by the deadline established by the Department.\5\
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    \5\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011) (available at http://www.gpo.gov/fdsys/pkg/FR-2011-07-06/pdf/2011-16352.pdf) for details 
of the Department's Electronic Filing Requirements, which went into 
effect on August 5, 2011. Information on help using IA ACCESS 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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    The period of scope comments is intended to provide the Department 
with ample opportunity to consider all comments and to consult with 
parties prior to the issuance of the preliminary determination.

Consultations

    Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department 
invited representatives of the Government of India (``GOI'') for 
consultations with respect to the Petition.
    The GOI did not accept our invitation to hold consultations before 
the initiation. All memoranda are on file electronically via IA ACCESS. 
Access to IA ACCESS is available in the Central Records Unit (``CRU''), 
Room 7046, of the main Department of Commerce Building.

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 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) 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

[[Page 44533]]

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,\6\ 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.\7\
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    \6\ See section 771(10) of the Act.
    \7\ 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 subtitle.'' 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, 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 have determined that steel threaded rod constitutes a 
single domestic like product and we have analyzed industry support in 
terms of that domestic like product.\8\
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    \8\ See Countervailing Duty Investigation Initiation Checklist: 
Steel Threaded Rod from India (``India CVD Initiation Checklist''), 
at Attachment II, Analysis of Industry Support for the Petitions 
Covering Steel Threaded Rod from India and Thailand (``Attachment 
II''). This checklist is dated concurrently with this notice and is 
on file electronically via IA ACCESS. Access to documents filed via 
IA ACCESS is also available in the CRU, Room 7046 of the main 
Department of Commerce building.
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    In determining whether 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, Petitioners provided their production of 
the domestic like product in 2012, and compared this to the estimated 
total production of the domestic like product for the entire domestic 
industry.\9\ Petitioners estimated 2012 production of the domestic like 
product by non-petitioning companies based on their knowledge of the 
industry. We have relied upon data Petitioners provided for purposes of 
measuring industry support.\10\
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    \9\ See Volume I of the Petition, at I-4 through I-6, and 
Exhibit I-1.
    \10\ See India 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 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.\11\ Based on information provided in the Petition and other 
submissions, 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.\12\
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    \11\ Id.
    \12\ Id.
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    The Department finds that 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 CVD investigation that they are 
requesting the Department initiate.\13\
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    \13\ Id.
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Injury Test

    Because India 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 India materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    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. Petitioners allege that subject 
imports from India exceed the negligibility threshold provided under 
section 771(24)(B) of the Act, which states that in CVD petitions, 
imports of subject merchandise from developing countries must exceed 
the negligibility threshold of 4 percent.\14\
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    \14\ See Volume I of the Petitions, at I-15 and I-16 and Exhibit 
I-7.
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    Petitioners contend that the industry's injured condition is 
illustrated by reduced market share; increased import penetration; 
underselling and price depression or suppression; lost sales and 
revenues; low capacity utilization; stagnant employment-related 
variables; and decline in financial performance.\15\ We have assessed 
the allegations and supporting evidence regarding material injury, 
threat of material injury, and causation, and we have determined that 
these allegations are properly supported by adequate evidence and meet 
the statutory requirements for initiation.\16\
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    \15\ Id., at I-15 through I-29 and Exhibits I-5 through I-7 and 
I-10 through I-16; see also General Issues Supplement, at (Supp I)-4 
through (Supp I)-7 and Attachments (Supp I)-6 through (Supp I)-10.
    \16\ See India CVD Initiation Checklist, at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Petitions Covering Steel Threaded Rod from India 
and Thailand.
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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 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, Petitioners allege that producers and exporters of 
steel threaded rod from India benefited from countervailable subsidies 
bestowed by the GOI.
    The Department has examined the Petition on steel threaded rod from 
India 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 threaded

[[Page 44534]]

rod from India receive countervailable subsidies.
    Based on our review of the Petition, we find that there is 
sufficient information to initiate a CVD investigation of 11 alleged 
programs. For five other programs alleged to benefit Indian producers 
and exporters of steel threaded rod, we have determined that the 
requirements for initiation have not been met. For a full discussion of 
the basis for our decision to initiate or not initiate on each program, 
see India CVD Initiation Checklist.
    A public version of the initiation checklist for this investigation 
is available at http://ia.ita.doc.gov/ia-highlights-and-news.html).

Respondent Selection

    For this investigation, the Department expects to select 
respondents based on U.S. Customs and Border Protection (``CBP'') data 
for U.S. imports of subject merchandise during the period of 
investigation under the following Harmonized Tariff Schedule of the 
United States numbers: 7318.15.5051, 7318.15.5056, 7318.15.5090 and 
7318.15.2095.
    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 on the Department's Web site at http://ia.ita.doc.gov/apo.
    Interested parties may submit comments regarding the CBP data and 
respondent selection within seven calendar days of publication of this 
notice. Comments must be filed electronically using IA ACCESS. An 
electronically filed document must be received successfully in its 
entirety by the Department's electronic records system, IA ACCESS, by 5 
p.m. Eastern time by the date noted above. Documents excepted from the 
electronic submission requirements must be filed manually (i.e., in 
paper form) with the Import Administration's APO/Dockets Unit, Room 
1870, U.S. 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.
    We intend to make our decision regarding respondent selection 
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 Petition have been 
provided to the representatives of the GOI via IA ACCESS. Because of 
the particularly large number of producers/exporters identified in the 
Petition, the Department considers the service of the public version of 
the Petition to the foreign producers/exporters satisfied by the 
delivery of the public version of the Petition to the Government of 
India, consistent with 19 CFR 351.203(c)(2).

ITC Notification

    We have notified the ITC of our initiation, as required by section 
702(d) of the Act.

Preliminary Determinations 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 allegedly subsidized steel threaded rod from 
India are materially injuring, or threatening material injury to, a 
U.S. industry.\17\ A negative ITC determination will result in the 
investigation being terminated; otherwise, the investigation will 
proceed according to statutory and regulatory time limits.
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    \17\ See section 703(a)(2) 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 antidumping (``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 proceeding segments initiated on or 
after May 10, 2013, and thus are applicable to this investigation. 
Please review the final rule, available at http://ia.ita.doc.gov/frn/2013/1304frn/2013-08227.txt, prior to submitting factual information in 
these investigations.

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
protective orders 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. 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)).
    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\18\ 
Parties are hereby reminded that revised certification requirements are 
in effect for company/government officials, as well as their 
representatives, in all segments of any AD or CVD proceedings initiated 
on or after March 14, 2011.\19\ The formats for the revised 
certifications are provided at the end of the Interim Final Rule. 
Foreign governments and their officials may continue to submit 
certifications in either the format that was in use prior to the 
effective date of the Interim Final Rule, or in the format provided in 
the Interim Final Rule.\20\ The Department intends to reject factual 
information submissions if the submitting party does not comply with 
the revised certification requirements.
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    \18\ See section 782(b) of the Act.
    \19\ See Certification of Factual Information for Import 
Administration during Antidumping and Countervailing Duty 
Proceedings: Interim Final Rule, 76 FR 7491 (February 10, 2011) 
(Interim Final Rule), amending 19 CFR 351.303(g)(1) and (2).
    \20\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings: Supplemental Interim Final Rule, 76 FR 54697 (September 
2, 2011).
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    This notice is issued and published pursuant to section 777(i) of 
the Act.


[[Page 44535]]


    Dated: July 17, 2013.
Paul Piquado,
Assistant Secretary for Import Administration.

Attachment

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.
[FR Doc. 2013-17795 Filed 7-23-13; 8:45 am]
BILLING CODE 3510-DS-P