[Federal Register Volume 79, Number 130 (Tuesday, July 8, 2014)]
[Notices]
[Pages 38490-38492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15949]


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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: Preliminary Affirmative Countervailing Duty 
Determination, Preliminary Affirmative Critical Circumstances 
Determination, and Alignment of Final Countervailing Duty Determination 
With Final Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of carbon and

[[Page 38491]]

certain alloy steel wire rod (steel wire rod) from the People's 
Republic of China (PRC). The period of investigation is January 1, 
2013, through December 31, 2013. Interested parties are invited to 
comment on this preliminary determination.

DATES: Effective Date: July 8, 2014.

FOR FURTHER INFORMATION CONTACT: Rebecca Trainor or Reza Karamloo, 
Office II, AD/CVD Operations, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4007 and (202) 482-4470, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The scope of this investigation covers 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.

Methodology

    The Department is conducting this countervailing duty (CVD) 
investigation in accordance with section 701 of the Tariff Act of 1930, 
as amended (the Act). For a full description of the methodology 
underlying our preliminary conclusions, including our reliance, in 
part, on adverse facts available (AFA), see the Preliminary Decision 
Memorandum.\1\ 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 (IA ACCESS). IA ACCESS is available to registered users at 
http://iaaccess.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 Preliminary Decision 
Memorandum can be accessed directly on the Internet at http://enforcement.trade.gov/frn/index.html. The signed Preliminary Decision 
Memorandum and the electronic version of the Preliminary Decision 
Memorandum are identical in content.
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    \1\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
regarding ``Countervailing Duty Investigation of Carbon and Certain 
Alloy Steel Wire Rod from the People's Republic of China: Decision 
Memorandum for the Preliminary Determination,'' dated concurrently 
with this notice (Preliminary Decision Memorandum). A list of topics 
discussed in the Preliminary Decision Memorandum can be found as an 
appendix to this notice.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning 
the final CVD determination in this investigation with the final 
determination in the companion antidumping (AD) investigation of steel 
wire rod from the PRC. Consequently, the final CVD determination will 
be issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than November 12, 2014, 
unless postponed.

Critical Circumstances

    In accordance with section 703(e)(1) of the Act, we preliminarily 
find that critical circumstances exist with respect to certain imports 
of steel wire rod from the PRC. A discussion of our determination can 
be found in the Preliminary Decision Memorandum.

Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we determine 
separate subsidy rates for the individually-investigated producers/
exporters of the subject merchandise, Benxi Beiying Iron & Steel Group 
Import & Export Corp., Benxi Beiying Iron & Steel (Group) Co., Ltd. and 
13 affiliates (collectively Benxi Steel); \2\ and Hebei Iron & Steel Co 
Ltd Tangshan Branch (Hebei Iron & Steel). We also calculated an all-
others rate. In accordance with sections 703(d) and 705(c)(5)(A) of the 
Act, for companies not individually investigated, we apply an ``all-
others'' rate, which is normally calculated by weighting the subsidy 
rates of the individual companies selected as mandatory respondents by 
those companies' exports of the subject merchandise to the United 
States. Under section 705(c)(5)(A)(i) of the Act, the all-others rate 
should exclude zero and de minimis rates calculated for the exporters 
and producers individually investigated as well as rates based entirely 
on facts otherwise available. Where the rates for the investigated 
companies are all zero or de minimis, or based entirely on facts 
otherwise available, section 705(c)(5)(A)(ii) of the Act instructs the 
Department to establish an all-others rate using ``any reasonable 
method.'' For Hebei Iron & Steel, which did not participate in this 
investigation, we determine a rate based solely on AFA, in accordance 
with sections 776(a) and (b) of the Act.\3\ Therefore, the only rate in 
this investigation that is not de minimis or based entirely on facts 
otherwise available is the rate calculated for Benxi Steel. 
Consequently, the rate calculated for Benxi Steel is also assigned as 
the ``all-others'' rate. The overall preliminary subsidy rates are 
summarized in the table below:
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    \2\ These 13 affiliates are: Benxi Steel Group Corporation; 
Beitai Iron & Steel (Group) Co., Ltd.; Benxi Northern Steel Rolling 
Co., Ltd.; Benxi Beifang Gaosu Steel Wire Rod Co., Ltd.; Benxi 
Beitai Gaosu Steel Wire Rod Co., Ltd.; Benxi Northern Steel Co., 
Ltd.; Benxi Beifang Second Rolling Co., Ltd.; Benxi Beitai Ductile 
Iron Pipes Co., Ltd.; Benxi Iron and Steel (Group) Metallurgy Co., 
Ltd.; Benxi Iron and Steel (Group) Real Estate Development Co., 
Ltd.; Benxi Iron & Steel (Group) Co., Ltd.; Bei Tai Iron and Steel 
Group Imp. and Exp. (Dalian) Co., Ltd.; and Bengang Steel Plate Co., 
Ltd.
    \3\ See the Preliminary Determination Memorandum at ``Use of 
Facts Otherwise Available and Adverse Inferences,'' for a full 
description of our methodology.

[[Page 38492]]



------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Benxi Steel \4\.........................................           10.30
Hebei Iron & Steel......................................           81.36
All Others..............................................           10.30
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    In accordance with sections 703(d)(1)(B) and (d)(2) of the Act, we 
are directing U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of steel wire rod from the PRC that are 
entered, or withdrawn from warehouse, for consumption on or after the 
date of the publication of this notice in the Federal Register, and to 
require a cash deposit for such entries of merchandise in the amounts 
indicated above. Moreover, because we preliminarily find critical 
circumstances exist with respect to all exporters of the subject 
merchandise except Benxi Steel, in accordance with section 703(e)(2)(A) 
of the Act, we are directing CBP to apply the suspension of liquidation 
to any unliquidated entries of the subject merchandise from exporters 
other than Benxi Steel entered, or withdrawn from warehouse for 
consumption, on or after the date 90 days prior to the date of 
publication of this notice in the Federal Register.
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    \4\ The companies comprising Benxi Steel are named above.
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Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the respondent Benxi Steel prior to making 
our final determination.

Disclosure and Public Comment

    The Department intends to disclose to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement.\5\ 
Interested parties may submit case and rebuttal briefs, as well as 
request a hearing.\6\ For a schedule of the deadlines for filing case 
briefs, rebuttal briefs, and hearing requests, see the Preliminary 
Decision Memorandum.
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    \5\ See 19 CFR 351.224(b).
    \6\ See 19 CFR 351.309(c)-(d), 19 CFR 351.310(c).
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, we will notify the 
International Trade Commission (ITC) of our determination. In addition, 
we are making available to the ITC all non-privileged and non-
proprietary information relating to this investigation. We will allow 
the ITC access to all privileged and business proprietary information 
in our files, provided the ITC confirms that it will not disclose such 
information, either publicly or under an administrative protective 
order, without the written consent of the Assistant Secretary for 
Enforcement and Compliance.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: June 30, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Respondent Selection
VII. Injury Test
VIII. Application of the Countervailing Duty Law to Imports from the 
PRC
IX. Subsidies Valuation
X. Benchmarks and Discount Rates
XI. Use of Facts Otherwise Available and Adverse Inferences
XII. Critical Circumstances
XIII. Analysis of Programs
XIV. ITC Notification
XV. Disclosure and Public Comment
XVI. Verification
XVII. Conclusion

[FR Doc. 2014-15949 Filed 7-7-14; 8:45 am]
BILLING CODE 3510-DS-P