[Federal Register Volume 79, Number 173 (Monday, September 8, 2014)]
[Notices]
[Pages 53169-53171]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-21335]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-012]


Carbon and Certain Alloy Steel Wire Rod From the People's 
Republic of China: Preliminary Determination of Sales at Less Than Fair 
Value and Preliminary Affirmative Determination of Critical 
Circumstances, in Part

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

SUMMARY: The Department of Commerce (``Department'') preliminarily 
determines that carbon and certain alloy steel wire rod (``steel wire 
rod'') from the People's Republic of China (``PRC'') is being, or is 
likely to be, sold in the United States at less than fair value 
(``LTFV''), as provided in section 733(b) of the Tariff Act of 1930, as 
amended (``the Act''). The period of investigation (``POI'') is July 1, 
2013, through December 31, 2013. The weighted-average dumping margins 
are shown in the ``Preliminary Determination'' section of this notice. 
We invite interested parties to comment on this preliminary 
determination.

DATED: Effective Date: September 8, 2014.

FOR FURTHER INFORMATION CONTACT: Brian Smith or Brandon Custard, AD/CVD 
Operations, Office II, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
1766 and (202) 482-1823, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

    The merchandise covered by this investigation is 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 conducted this investigation in accordance with 
section 733 of the Act. Because certain companies, including the 
mandatory respondents,\1\ in this investigation did not cooperate to 
the best of their ability with the Department's requests for 
information, the Department preliminarily determines that the 
application of adverse facts available (``AFA'') is warranted for this 
preliminary determination, in accordance with section 776 of the Act 
and 19 CFR 351.308.
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    \1\ The mandatory respondents in this investigation are Benxi 
Beiying Iron and Steel Group Imp. and Exp. Corp. Ltd. and Tangshan 
Iron and Steel Group Co. Ltd.
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    For a full description of the methodology underlying our 
conclusions, see ``Decision Memorandum for the Preliminary 
Determination in the Antidumping Duty Investigation of Carbon and 
Certain Alloy Steel Wire Rod from the People's Republic of China,'' 
from Gary Taverman, Associate Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations, to Paul Piquado, 
Assistant Secretary for Enforcement and Compliance (``Preliminary 
Decision Memorandum''), dated concurrently with, and hereby adopted by, 
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 (``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 at http://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum and the electronic 
version of the Preliminary Decision Memorandum are identical in 
content.

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.\2\ This

[[Page 53170]]

practice is described in Policy Bulletin 05.1.\3\
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    \2\ See Carbon and Certain Alloy Steel Wire Rod From the 
People's Republic of China: Initiation of Antidumping Duty 
Investigation, 78 FR 11077, 11081 (February 27, 2014) (``Initiation 
Notice'').
    \3\ See 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 at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

    The Department preliminarily determines that the following 
weighted-average dumping margins exist:
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    \4\ For the reasons explained in the Preliminary Decision 
Memorandum, the Department finds it appropriate to consider Bei Tai 
Iron and Steel Group Imp. and Exp. (Dalian) Co., Ltd. (Beitai) a 
part of Benxi Beiying Iron and Steel Group Imp. and Exp. Corp. Ltd. 
for this preliminary determination. See Preliminary Decision 
Memorandum at the section, ``The PRC-Wide Entity.''

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
             Exporter                     Producer        dumping margin
                                                             (percent)
------------------------------------------------------------------------
Rizhao Steel Wire Co., Ltd........  Rizhao Steel Wire             106.19
                                     Co., Ltd.
Hunan Valin Xiangtan Iron & Steel   Hunan Valin Xiangtan          106.19
 Co., Ltd.                           Iron & Steel Co.,
                                     Ltd.
Jiangsu Shagang International       Zhangjiagang Shajing          106.19
 Trade Co., Ltd.                     Steel Co. Ltd.
Jiangsu Shagang International       Zhangjiagang                  106.19
 Trade Co., Ltd.                     Runzhong Steel Co.,
                                     Ltd.
Jiangsu Shagang International       Zhangjiagang                  106.19
 Trade Co., Ltd.                     Hongxing Gaoxian
                                     Co., Ltd.
Jiangsu Shagang International       Zhangjiagang                  106.19
 Trade Co., Ltd.                     Rongsheng Steel-
                                     Making Co., Ltd.
Jiangsu Shagang International       Jiangsu Runzhong              106.19
 Trade Co., Ltd.                     High-Tech Co., Ltd.
Jiangsu Shagang International       Zhangjiagang                  106.19
 Trade Co., Ltd.                     Hongchang Gaoxian
                                     Co., Ltd.
PRC-wide Entity *.................  ....................          110.25
------------------------------------------------------------------------
* As detailed in the Preliminary Decision Memorandum, the PRC-wide
  entity includes, among other companies Benxi Beiying Iron and Steel
  Group Imp. and Exp. Corp. Ltd.,\4\ Tangshan Iron and Steel Group Co.
  Ltd., Angang Group International Trade Corporation, Qingdao Iron and
  Steel Co., Ltd., Jiangsu Yonggang Group Co. Ltd., and Baotou Steel
  International Economic & Trading Co., Ltd.

Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    On June 4, 2014, the petitioners \5\ filed a timely critical 
circumstances allegation, pursuant to section 733(e)(1) of the Act and 
19 CFR 351.206(c)(1), alleging that critical circumstances exist with 
respect to imports of steel wire rod from the PRC.\6\ We preliminarily 
determine that critical circumstances do not exist for the separate 
rate companies,\7\ but do exist for the PRC-wide entity. A discussion 
of our determination can be found in the Preliminary Decision 
Memorandum at the section, ``Critical Circumstances.''
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    \5\ The Petitioners are ArcelorMittal USA LLC, Charter Steel, 
Evraz Pueblo (formerly Evraz Rocky Mountain Steel), Gerdau 
Ameristeel US Inc., Keystone Consolidated Industries, Inc., and 
Nucor Corporation.
    \6\ See the Petitioners' Letter to the Secretary of Commerce, 
``Carbon and Certain Alloy Steel Wire Rod From the People's Republic 
of China--Critical Circumstances Allegations,'' dated June 4, 2014.
    \7\ Rizhao Steel Wire Co., Ltd., Hunan Valin Xiangtan Iron & 
Steel Co., Ltd., and Jiangsu Shagang International Trade Co., Ltd. 
(collectively, the separate rate companies).
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Disclosure and Public Comment

    The Department intends to disclose calculations performed for this 
preliminary determination to the parties within five days after the 
date of publication of this notice in accordance with 19 CFR 
351.224(b).
    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance via IA ACCESS no 
later than 30 days after the date of publication of this preliminary 
determination notice, and rebuttal briefs, limited to issues raised in 
case briefs, must be submitted via IA ACCESS no later than five days 
after the deadline for filing case briefs.\8\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal 
briefs in this proceeding 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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    \8\ See 19 CFR 351.309.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, or to participate in a hearing if one is requested, 
must submit a written request to the Assistant Secretary for 
Enforcement and Compliance. An electronically filed request must be 
submitted via IA ACCESS within 30 days after the date of publication of 
this notice.\9\ Hearing requests should contain: (1) The party's name, 
address, and telephone number; (2) the number of participants in the 
hearing; and (3) a list of the issues to be discussed at the hearing. 
If a request for a hearing is made, the Department intends to hold the 
hearing at the U.S. Department of Commerce, 14th Street and 
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.
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    \9\ See also 19 CFR 351.310(c).
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    All documents submitted to IA ACCESS must be received successfully 
in their entirety by no later than 5:00 p.m. Eastern Daylight Time on 
the day in which the document is due.

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, the Department 
will instruct U.S. Customs and Border Protection (``CBP'') to suspend 
liquidation of all entries of steel wire rod from the PRC, as described 
in the ``Scope of Investigation'' section, entered or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. As described above, we 
preliminarily find that critical circumstances exist for imports of 
steel wire rod from the PRC produced or exported by the PRC-wide 
entity. Accordingly, for the PRC-wide entity, in accordance with 
section 733(e)(2)(A) of the Act, the suspension of liquidation shall 
apply to unliquidated entries of merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date

[[Page 53171]]

which is 90 days before the publication of this notice.
    Pursuant to 19 CFR 351.205(d), we will instruct CBP to require a 
cash deposit \10\ for all suspended entries at an ad valorem rate equal 
to the weighted-average amount by which normal value exceeds U.S. 
price, adjusted where appropriate for export subsidies and estimated 
domestic subsidy pass-through \11\ where, as here, the product under 
investigation is also subject to a concurrent countervailing duty 
(``CVD'') investigation: (1) For those PRC exporter/producer 
combinations listed in the table above, the cash deposit rates will be 
the rates shown in that table; (2) for all combinations of PRC 
exporters/producers of merchandise under consideration that have not 
received their own separate rate above, the cash-deposit rate will be 
the cash deposit rate established for the PRC-wide entity; and (3) for 
all non-PRC exporters of merchandise under consideration which have not 
received their own separate rate above, the cash-deposit rate will be 
the cash deposit rate applicable to the PRC exporter/producer 
combination that supplied that non-PRC exporter. These suspension of 
liquidation and cash deposit instructions will remain in effect until 
further notice.
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    \10\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
    \11\ 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 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.
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    Furthermore, as stated above and consistent with our practice, 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, less the amount of the CVD determined to constitute an export 
subsidy. In this LTFV investigation, we have not adjusted the 
preliminary cash deposit rates for export subsidies. With respect to 
the separate rate companies which were not individually investigated, 
we find that no export-subsidy adjustment to the rates is warranted 
because these companies are currently subject to the CVD rate 
calculated for ``All Others'' in the preliminary determination of the 
companion CVD investigation, and we did not include any export 
subsidies in the calculation of that CVD rate.\12\ Accordingly, we made 
no adjustment to the AD cash deposit rate for the separate rate 
companies. With respect to the PRC-wide entity, we find that no export-
subsidy adjustment is warranted, as AFA, because the lowest export 
subsidy amount included in a CVD rate to which PRC-wide entries are 
currently subject is zero. Accordingly, we made no adjustment to the AD 
cash deposit rate for the PRC-wide entity.
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    \12\ See 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, 79 FR 
38490, 38491 (July 8, 2014), and accompanying Preliminary Decision 
Memorandum at 26-28.
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    We are not adjusting the preliminary determination rates for 
estimated domestic subsidy pass through because we have no basis upon 
which to make such an adjustment. See Preliminary Decision Memorandum 
at the section, ``Section 777A(f) of the Act.''

International Trade Commission (``ITC'') Notification

    In accordance with section 733(f) of the Act, we notified the ITC 
of our preliminary affirmative determination of sales at LTFV. If our 
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 our final determination whether these imports are 
materially injuring, or threaten material injury to, the U.S. industry.
    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: August 29, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

List of Topics Discussed in the Preliminary Decision Memorandum

1. Background
2. Period of Investigation
3. Scope of Investigation
4. Scope Comments
5. Respondent Selection
6. Discussion of the Methodology
    a. Non-Market Economy Country
    b. Separate Rates
    c. PRC-Wide Entity
    d. Application of Facts Available and Adverse Inferences
    e. Corroboration of the AFA Rate
    f. Margin for the Separate Companies
    g. Combination Rates
7. Critical Circumstances
8. Verification
9. Section 77A(f) of the Act
10. ITC Notification

[FR Doc. 2014-21335 Filed 9-5-14; 8:45 am]
BILLING CODE 3510-DS-P