[Federal Register Volume 79, Number 32 (Tuesday, February 18, 2014)]
[Notices]
[Pages 9162-9164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-03490]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-856]


Steel Threaded Rod from India: Preliminary Affirmative 
Determination of Critical Circumstances for the Countervailing Duty 
Investigation

AGENCY: Enforcement and Compliance, formerly Import Administration, 
International Trade Administration, Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') has preliminarily 
determined that critical circumstances exist with respect to imports of 
subject merchandise in the countervailing duty (``CVD'') investigation 
of steel threaded rod from India, with the exception of imports from 
Mangal Steel Enterprises Limited (``Mangal Steel'').

DATES: Effective Date: February 18, 2014.

FOR FURTHER INFORMATION CONTACT: Andrew Medley, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, Room 4416, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: 202-482-4987.

SUPPLEMENTARY INFORMATION:

Case History

    On June 27, 2013, the Department received a CVD Petition concerning 
imports of steel threaded rod from India filed in proper form by All 
America Threaded Products Inc.; Bay Standard Manufacturing Inc.; and 
Vulcan Threaded Products Inc. (collectively, ``Petitioners'').\1\ This 
investigation was initiated on July 17, 2013.\2\ The affirmative 
Preliminary Determination was published on December 19, 2013.\3\
---------------------------------------------------------------------------

    \1\ See submission by Petitioners titled ``Petitions for the 
Imposition of Antidumping Duties on Steel Threaded Rod from Thailand 
and Antidumping and Countervailing Duties on Steel Threaded Rod from 
India,'' and dated June 27, 2013 (``Petition''). A public version of 
the Petition and all other public documents and public versions for 
this investigation are available on the public file in the Central 
Records Unit, Room 7046 of the main Department of Commerce building.
    \2\ See Steel Threaded Rod From India: Initiation of 
Countervailing Duty Investigation, 78 FR 44532 (July 24, 2013), and 
accompanying Initiation Checklist.
    \3\ See Steel Threaded Rod from India: Preliminary Affirmative 
Countervailing Duty Determination and Alignment of Final 
Determination with Final Antidumping Determination, 78 FR 76815 
(December 19, 2013) (``Preliminary Determination'').
---------------------------------------------------------------------------

    On January 10, 2014, Petitioners alleged that critical 
circumstances exist with respect to imports of steel threaded rod from 
India and submitted U.S. Census Bureau import data in support of their 
allegation. On January 17, 2014, the Department requested from Mangal 
Steel monthly shipment data of subject merchandise to the United States 
for the period February 2013 through November 2013. On January 22, 
2014, Mangal Steel submitted the requested data.

Period of Investigation

    The period for which we are measuring subsidies, or the period of 
investigation (``POI''), is calendar year 2012.

Scope of Investigation

    The merchandise covered by this investigation is steel threaded 
rod. Steel threaded rod is certain threaded rod, bar, or studs, of 
carbon quality steel, having a solid, circular cross section, of any 
diameter, in any straight length, that have been forged, turned, cold-
drawn, cold-rolled, machine straightened, or otherwise cold-finished, 
and into which threaded grooves have been applied. In addition, the 
steel threaded rod, bar, or studs subject to this investigation are 
non-headed and threaded along greater than 25 percent of their total 
length. A variety of finishes or coatings, such as plain oil finish as 
a temporary rust protectant, zinc coating (i.e., galvanized, whether by 
electroplating or hot-dipping), paint, and other similar finishes and 
coatings, may be applied to the merchandise.\4\
---------------------------------------------------------------------------

    \4\ For a complete description of the scope of the 
investigation, see Appendix 1 to the Preliminary Determination.

---------------------------------------------------------------------------

[[Page 9163]]

Comments of the Parties

    In their critical circumstances allegation, Petitioners allege that 
there is a reasonable basis to believe that there are subsidies in this 
investigation which are inconsistent with the World Trade Organization 
Agreement on Subsidies and Countervailing Measures (``Subsidies 
Agreement''). Petitioners cite to the Preliminary Determination, in 
which the Department preliminarily determined that Mangal Steel and 
Babu Exports (``Babu'') received subsidies which are contingent on 
export performance.
    Petitioners also claim that there have been massive imports of 
steel threaded rod in the five months following the filing of the 
Petition on June 27, 2013. Petitioners provided data which they contend 
demonstrate that imports of subject merchandise increased by more than 
15 percent, which is required to be considered ``massive'' under 19 CFR 
351.206(h)(2).

Critical Circumstances Analysis

    Section 703(e)(1) of the Tariff Act of 1930, as amended (``the 
Act'') provides that the Department will determine that critical 
circumstances exist if there is a reasonable basis to believe or 
suspect that: (A) The alleged countervailable subsidy is inconsistent 
with the Subsidies Agreement, and (B) there have been massive imports 
of the subject merchandise over a relatively short period.
    When determining whether an alleged countervailable subsidy is 
inconsistent with the Subsidies Agreement, the Department limits its 
findings to those subsidies contingent on export performance or use of 
domestic over imported goods (i.e., those prohibited under Article 3 of 
the Subsidies Agreement).\5\
---------------------------------------------------------------------------

    \5\ See, e.g., Notice of Preliminary Negative Determination of 
Critical Circumstances: Certain New Pneumatic Off-the-Road Tires 
From the People's Republic of China, 73 FR 21588, 21589-90 (April 
22, 2008), unchanged in Final Affirmative Countervailing Duty 
Determination and Final Negative Critical Circumstances 
Determination: Carbon and Certain Alloy Steel Wire Rod From Germany, 
67 FR 55808, 55809 (August 30, 2002).
---------------------------------------------------------------------------

    In determining whether imports of the subject merchandise have been 
``massive,'' 19 CFR 351.206(h)(1) provides that the Department normally 
will examine: (i) The volume and value of the imports; (ii) seasonal 
trends; and (iii) the share of domestic consumption accounted for by 
the imports. In addition, the Department will not consider imports to 
be massive unless imports during the ``relatively short period'' 
(comparison period) have increased by at least 15 percent compared to 
imports during an ``immediately preceding period of comparable 
duration'' (base period).\6\
---------------------------------------------------------------------------

    \6\ See 19 CFR 351.206(h)(2).
---------------------------------------------------------------------------

    19 CFR 351.206(i) defines ``relatively short period'' as normally 
being the period beginning on the date the proceeding commences (i.e., 
the date the petition is filed) and ending at least three months later. 
For consideration of this allegation, we have used a five-month base 
period (i.e., February 2013 through June 2013) and a five-month 
comparison period (i.e., July 2013 through November 2013).

Mangal Steel

    In the Preliminary Determination, the Department found that, during 
the POI, Mangal Steel received countervailable benefits under five 
programs that are contingent upon export performance: Pre- and Post-
Shipment Export Financing, Duty Drawback, Export Promotion of Capital 
Goods Scheme, Focus Product Scheme, and Status Holder Incentive Scrip. 
Therefore, we preliminarily determine that there is a reasonable basis 
to believe or suspect that these programs are inconsistent with the 
Subsidies Agreement.
    In determining whether there were massive imports from Mangal 
Steel, we analyzed Mangal Steel's monthly shipment data for the period 
February 2013 through November 2013. These data indicate that there was 
not a massive increase in shipments of subject merchandise to the 
United States by Mangal Steel during the five-month period immediately 
following the filing of the Petition on June 27, 2013.\7\
---------------------------------------------------------------------------

    \7\ See the Memorandum to the File from Andrew Medley titled 
``Critical Circumstances Shipment Data Analysis,'' dated 
concurrently with this notice (``Critical Circumstances 
Memorandum'').
---------------------------------------------------------------------------

Babu

    Because Babu is not participating in this investigation,\8\ 
consistent with Department practice, we have based our critical 
circumstances determination for Babu on adverse facts available 
(``AFA''), in accordance with sections 776(a) and (b) of the Act and 19 
CFR 351.308(c).\9\ As AFA, we preliminarily determine that Babu 
received countervailable benefits under programs that are contingent 
upon export performance. Also, as AFA, we preliminarily determine that 
Babu made massive imports of subject merchandise over a relatively 
short period of time.
---------------------------------------------------------------------------

    \8\ Babu did not respond to the Department's September 6, and 
19, 2013, questionnaires; thus, for the Preliminary Determination, 
we based Babu's CVD rate upon facts otherwise available and made an 
adverse inference for Babu, pursuant to section 776(b) of the Act, 
because we determined that, by not responding to our questionnaires, 
Babu had failed to cooperate to the best of its ability.
    \9\ See, e.g., Final Determination of Sales at Less Than Fair 
Value and Affirmative Determination of Critical Circumstances: Small 
Diameter Graphite Electrodes from the People's Republic of China, 74 
FR 2049, 2052-53 (January 14, 2009), where we cite to the Statement 
of Administrative Action accompanying the Uruguay Round Agreements 
Act, H.R. Doc. 103-316, Vol. 1 (1994) at 870, noting that the 
Department may employ adverse inferences in selecting from among the 
facts available ``to ensure that the party does not obtain a more 
favorable result by failing to cooperate fully.''
---------------------------------------------------------------------------

All Other Exporters

    With regard to whether imports of subject merchandise by the ``all 
other'' exporters of steel threaded rod from India were massive, we 
preliminarily determine that because there is evidence of the existence 
of countervailable subsidies that are inconsistent with the Subsidies 
Agreement, an analysis is warranted as to whether there was a massive 
increase in shipments by the ``all other'' companies, in accordance 
with section 703(e)(1)(B) of the Act and 19 CFR 351.206(h). Therefore, 
we analyzed, in accordance with 19 CFR 351.206(i), monthly shipment 
data for the period February 2013 through November 2013, using shipment 
data from the U.S. Census Bureau, adjusted to remove shipments reported 
by the only exporter actively participating in this investigation, 
Mangal Steel.\10\ The resulting data indicate there was a massive 
increase in shipments, as defined by 19 CFR 351.206(h)(2).\11\
---------------------------------------------------------------------------

    \10\ See, e.g., Steel Wire Garment Hangers From the Socialist 
Republic of Vietnam: Preliminary Affirmative Determination of 
Critical Circumstances, 77 FR 73430, 73432 (December 10, 2012), 
unchanged in Certain Steel Wire Garment Hangers From the Socialist 
Republic of Vietnam: Final Affirmative Countervailing Duty 
Determination and Final Affirmative Critical Circumstances 
Determination, 77 FR 75973, 75974 (December 26, 2012); see also 
Certain Oil Country Tubular Goods From the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination, 
Preliminary Negative Critical Circumstances Determination, 74 FR 
47210, 47212 (September 15, 2009), unchanged in Certain Oil Country 
Tubular Goods From the People's Republic of China: Final Affirmative 
Countervailing Duty Determination: Final Negative Critical 
Circumstances Determination, 74 FR 64045, 64047 (December 7, 2009).
    \11\ See Critical Circumstances Memorandum.
---------------------------------------------------------------------------

Conclusion

    We preliminarily determine that critical circumstances do not exist 
with regard to shipments from one mandatory respondent, Mangal Steel 
and, as AFA, preliminarily determine that critical circumstances exist 
with regard to shipments from the other mandatory respondent, Babu. We 
also preliminarily determine, based on our analysis of the shipment 
data on the record, that critical circumstances exist for imports from 
``all other'' exporters of

[[Page 9164]]

steel threaded rod from India. We will make a final determination 
concerning critical circumstances for steel threaded rod from India 
when we make our final countervailable subsidy determination in this 
investigation. As provided in section 782(i)(1) of the Act, we intend 
to verify the information submitted in response to the Department's 
questionnaires.

Suspension of Liquidation

    In accordance with section 703(e)(2)(A) of the Act, we are 
directing U.S. Customs and Border Protection to suspend liquidation, 
with regards to all exporters except Mangal Steel, of any unliquidated 
entries of subject merchandise from the India entered, or withdrawn 
from warehouse for consumption, on or after September 20, 2013, which 
is 90 days prior to the date of publication of the Preliminary 
Determination in the Federal Register.

ITC Notification

    In accordance with section 703(f) of the Act, we will notify the 
ITC of our determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i)(1) of the Act.

    Dated: February 7, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2014-03490 Filed 2-14-14; 8:45 am]
BILLING CODE 3510-DS-P