[Federal Register Volume 79, Number 248 (Monday, December 29, 2014)]
[Notices]
[Pages 78058-78061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30431]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-552-818]
Certain Steel Nails From the Socialist Republic of Vietnam:
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination and Extension of Provisional
Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Effective Date: December 29, 2014.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that certain steel nails from the Socialist Republic of
Vietnam (Vietnam) are being, or are likely to be, sold in the United
States at less than fair value, as provided in section 733(b) of the
Tariff Act of 1930, as amended (the Act). The period of investigation
is October 1, 2013, through March 31, 2014. The estimated weighted-
average dumping margins are shown in the ``Preliminary Determination''
section of this notice. Interested parties are invited to comment on
this preliminary determination. The Department intends to issue the
final determination 135 days after publication of this preliminary
determination in the Federal Register.
FOR FURTHER INFORMATION CONTACT: Edythe Artman or Dena Crossland, 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-
3931 and (202) 482-3362, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published the notice of initiation of this
investigation on June 25, 2014.\1\ Pursuant to section 733(c)(1)(A) of
the Act, the Department postponed this preliminary LTFV determination
42 days until December 17, 2014.\2\
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\1\ See Certain Steel Nails From India, the Republic of Korea,
Malaysia, the Sultanate of Oman, Taiwan, the Republic of Turkey, and
the Socialist Republic of Vietnam: Initiation of Less-Than-Fair-
Value Investigations, 79 FR 36019 (June 25, 2014) (Initation
Notice). On the same day, the Department initiated a countervailing
duty investigation of certain steel nails from Vietnam. See Certain
Steel Nails From India, the Republic of Korea, Malaysia, the
Sultanate of Oman, Taiwan, the Republic of Turkey, and the Socialist
Republic of Vietnam: Initiation of Countervailing Duty
Investigations, 79 FR 36014 (June 25, 2014).
\2\ See Certain Steel Nails From the Republic of Korea,
Malaysia, the Sultanate of Oman, Taiwan, and the Socialist Republic
of Vietnam: Postponement of Preliminary Determination of Antidumping
Duty Investigations, 79 FR 63082 (October 22, 2014).
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Scope of the Investigation
The products covered by this investigation are certain steel nails
from Vietnam. For a complete description of the scope of the
investigation, see Appendix I to this notice.
Scope Comments
Several interested parties (i.e., IKEA Supply AG and IKEA
Distributions Services Inc. (collectively IKEA), Target Corporation,
and The Home Depot) submitted comments to the Department on the scope
of the investigation as it appeared in the Initiation Notice, and Mid
Continent Steel & Wire, Inc. (Petitioner) submitted rebuttal comments.
For discussion of those comments and rebuttal comments, see the
Preliminary Decision Memorandum.\3\
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\3\ See Memorandum to Ronald K. Lorentzen, Acting Assistant
Secretary for Enforcement and Compliance, from Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, ``Decision Memorandum for the Preliminary Determination
of the Less-Than-Fair-Value Investigation of Certain Steel Nails
from the Socialist Republic of Vietnam,'' dated concurrently with
this determination and hereby adopted by this notice. A list of the
topics discussed in the Preliminary Decision Memorandum appears in
Appendix II, below.
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Methodology
The Department conducted this investigation in accordance with
section 731 of the Act. We calculated export prices in accordance with
section 772 of the Act. Because Vietnam is a non-market economy within
the meaning of section 771(18) of the Act, we calculated normal value
in accordance with section 773(c) of the Act.
For a full description of the methodology underlying our
conclusions, see the Preliminary Decision Memorandum.\4\ 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).\5\
ACCESS is available to guest and registered users at http://access.trade.gov and to all parties in the Central Records Unit, room
7046 of the main Department of Commerce building. In addition, parties
can obtain a complete version of the Preliminary Decision Memorandum at
http://trade.gov/enforcement/frn/index.html. The signed and electronic
versions of the Preliminary Decision Memorandum are identical in
content.
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\4\ Id.
\5\ On November 24, 2014, Enforcement and Compliance changed the
name of the Import Administration Antidumping and Countervailing
Duty Centralized Electronic Service System (IA ACCESS) Antidumping
and Countervailing Duty Centralized Electronic Service System
(ACCESS). The Web site location was changed from http://iaaccess.trade.gov to http://access.trade.gov. The Final Rule
changing the references to the Regulations can be found at: 79 FR
69046 (November 20, 2014).
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Use of Facts Available
For the Vietnam-wide entity, we applied facts otherwise available
with an adverse inference, pursuant to section 776(a)(1) and (b) of the
Act. For a detailed discussion of this finding, see the Preliminary
Decision Memorandum at section ``The Vietnam-wide Entity.''
For Region Industries Co., Ltd., we applied facts otherwise
available, pursuant to section 776(a)(1) of the Act, for factor input
information for a toller who performed electroplating on subject
merchandise but did not respond to Region Industries' request for input
information. For a detailed discussion of this finding, see the
Preliminary Decision Memorandum at section ``Facts Available for Region
Industries.''
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. Policy Bulletin 05.1 describes
this practice.\6\
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\6\ 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
In accordance with section 733(d)(1)(A)(i) of the Act, the
Department calculated estimated weighted-average dumping margins for
the individually investigated exporters
[[Page 78059]]
and producers of subject merchandise, listed below. The Department
preliminarily determines that the following estimated weighted-average
dumping margins exist for these individually investigated exporters and
producers exist for the period October 1, 2013, through March 31, 2014:
------------------------------------------------------------------------
Weighted-
average
Exporter Producer dumping
margin
(percentage)
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Region International Co., Ltd..... Region Industries 103.88
Co., Ltd.
United Nail Products Co., Ltd..... United Nail Products 93.42
Co., Ltd.
Kosteel Vina Limited Company...... Kosteel Vina Limited 98.65
Company.
Vietnam-Wide Entity *............. .................... 323.99
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* As detailed in the Preliminary Decision Memorandum, the Vietnam-wide
entity includes the following exporters/producers: Cong Ty Tnhh Cong
Nghe Nhua A Chau, Kim Tin Group, Megastar Co., Ltd. and Simone
Accessories Collection.
Verification
As provided in section 782(i)(1) of the Act, the Department intends
to verify the information submitted by Region International Co., Ltd.,
and its affiliated producer, Region Industries Co., Ltd. and United
Nail Products Co., Ltd. prior to making a final determination in this
investigation.
Disclosure and Public Comment
The Department intends to disclose the calculations performed for
this preliminary determination to parties within five days of 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 ACCESS no later
than no later than seven days after the date on which the final
verification report is issued in this proceeding \7\ and rebuttal
briefs, limited to issues raised in the case briefs, must be submitted
via 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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\7\ See 19 CFR 351.309(c).
\8\ See 19 CFR 351.309(d).
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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 ACCESS within 30 days after the date of publication of
this notice. Electronically filed case briefs/written comments and
hearing requests must be received successfully in their entirety by the
Department's electronic records system, ACCESS, by 5:00 p.m. Eastern
Standard Time. 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.
All documents submitted to ACCESS must be received successfully in
their entirety by no later than 5:00 p.m. Eastern Time on the day in
which the document is due.
Postponement of Final Determination and Extension of Provisional
Measures
Pursuant to section 735(a)(2) of the Act, Region Industries Co.,
Ltd. and United Nail Products Co., Ltd. requested that, in the event of
an affirmative preliminary determination in this investigation, the
Department postpone its final determination and extend provisional
measures from four months to six months.\9\ Additionally, Region
Industries Co., Ltd. and United Nail Products Co., Ltd. agreed to
extend the application of the provisional measures prescribed under
section 733(d) of the Act and 19 CFR 351.210(e)(2), from a four-month
period to a six-month period. Pursuant to requests from Region
Industries Co., Ltd. and United Nail Products Co., Ltd. and in
accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii) and (e)(2),we will make our final determination no
later than 135 days after the publication of this preliminary
determination. The suspension of liquidation described below will be
extended accordingly.
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\9\ See Letter from Region Industries Co., Ltd. and United Nail
Products Co., Ltd., ``Certain Steel Nails from Vietnam; Extension
Request for Final Results,'' dated December 9, 2014.
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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 certain steel nails from Vietnam, as
described in the scope of the investigation in Attachment 1 of this
notice, which are entered or withdrawn from warehouse for consumption
on or after the date of publication of this notice in the Federal
Register.
Pursuant to section 733(d) of the Act and 19 CFR 351.205(d), we
will instruct CBP to require a cash deposit \10\ equal to the estimated
weighted-average amount by which normal value exceeds U.S. price,
adjusted where appropriate for export subsidies \11\ and estimated
domestic subsidy pass-through,\12\ as follows: (1) The cash deposit
rates for the exporter/producer combinations listed in the table above
will be the rate identified for that combination in the table; (2) for
all combinations of Vietnamese 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
Vietnam-wide entity, 323.99 percent; and (3) for all non-Vietnamese
exporters
[[Page 78060]]
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 Vietnamese exporter/producer combination that
supplied that non-Vietnamese 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 section 772(c)(1)(C) of the Act. 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.
\12\ See section 777A(f) of the Act. For further discussion, see
the Preliminary Decision Memorandum at the section, ``Section
777A(f) of the Act.''
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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 normal value exceeds the export price or constructed export
price, less the amount of the countervailing duty rate determined to be
attributable to an export subsidy. With regard to Region Industries
Co., Ltd., export subsidies constitute 8.34 percent \13\ of Region
Industries Co., Ltd.'s preliminarily calculated countervailing duty
rate in the companion countervailing duty investigation. Therefore, we
will offset Region Industries Co., Ltd.'s antidumping duty cash deposit
rate by the countervailing duty rate attributable to export subsidies
(i.e., 8.34 percent) to calculate its preliminary cash deposit rate for
this LTFV investigation. We have not adjusted the preliminary cash
deposit rate for United Nail Products Co., Ltd. for export subsidies
because the amount of its preliminary calculated countervailing duty
rate in the companion countervailing duty investigation attributable to
export subsidies is de minimis.\14\ With respect to the separate rate
company which was not individually investigated, we have adjusted its
antidumping duty cash deposit rate to account for export subsidies
because this company is currently subject to the countervailing duty
rate calculated for ``All Others'' in the preliminary determination of
the companion countervailing duty investigation, and we did include
export subsidies (i.e., 8.34 percent) in the calculation of that
countervailing duty rate.\15\ Accordingly, we have adjusted the
antidumping duty cash deposit rate for the separate rate company. With
respect to the Vietnam-wide entity, we find that an export-subsidy
adjustment is warranted because an export subsidy amount (i.e., 8.34
percent) was included in a countervailing duty rate to which Vietnam-
wide entries are currently subject. Accordingly, we have also adjusted
the antidumping duty cash deposit rate for the Vietnam-wide entity.
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\13\ See Certain Steel Nails From the Socialist Republic of
Vietnam: Preliminary Affirmative Countervailing Duty Determination
and Alignment of Final Countervailing Duty Determination With Final
Antidumping Duty Determination, 79 FR 65184 (November 3, 2014), and
accompanying Preliminary Decision Memorandum at 20.
\14\ See id.
\15\ See id. at 65185.
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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.\16\
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\16\ See Preliminary Decision Memorandum at the section,
``Section 777A(f) of the Act.''
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International Trade Commission Notification
In accordance with section 733(f) of the Act, we will notify the
International Trade Commission (ITC) of our preliminary affirmative
determination of sales at less than fair value. Because the preliminary
determination in this proceeding is affirmative, section 735(b)(2) of
the Act requires that the ITC make its final determination as to
whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of imports of
certain steel nails from Vietnam before the later of 120 days after the
date of this preliminary determination or 45 days after our final
determination. Because we are postponing the deadline for our final
determination to 135 days from the date of the publication of this
determination, as described immediately above, the ITC will make its
final determination no later than 45 days after our final
determination.
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: December 17, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is certain steel
nails having a nominal shaft length not exceeding 12 inches.\17\
Certain steel nails include, but are not limited to, nails made from
round wire and nails that are cut from flat-rolled steel. Certain
steel nails may be of one piece construction or constructed of two
or more pieces. Certain steel nails may be produced from any type of
steel, and may have any type of surface finish, head type, shank,
point type and shaft diameter. Finishes include, but are not limited
to, coating in vinyl, zinc (galvanized, including but not limited to
electroplating or hot dipping one or more times), phosphate, cement,
and paint. Certain steel nails may have one or more surface
finishes. Head styles include, but are not limited to, flat,
projection, cupped, oval, brad, headless, double, countersunk, and
sinker. Shank styles include, but are not limited to, smooth,
barbed, screw threaded, ring shank and fluted. Screw-threaded nails
subject to this proceeding are driven using direct force and not by
turning the nail using a tool that engages with the head. Point
styles include, but are not limited to, diamond, needle, chisel and
blunt or no point. Certain steel nails may be sold in bulk, or they
may be collated in any manner using any material. If packaged in
combination with one or more non-subject articles, certain steel
nails remain subject merchandise if the total number of nails of all
types, in aggregate regardless of size, is equal to or greater than
25.
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\17\ The shaft length of certain steel nails with flat heads or
parallel shoulders under the head shall be measured from under the
head or shoulder to the tip of the point. The shaft length of all
other certain steel nails shall be measured overall.
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Excluded from the scope of this investigation are certain steel
nails packaged in combination with one or more non-subject articles,
if the total number of nails of all types, in aggregate regardless
of size, is less than 25.
Also excluded from the scope of this investigation are steel
nails that meet the specifications of Type I, Style 20 nails as
identified in Tables 29 through 33 of ASTM Standard F1667 (2013
revision).
Also excluded from the scope of this investigation are nails
suitable for use in powder-actuated hand tools, whether or not
threaded, which are currently classified under Harmonized Tariff
Schedule of the United States (HTSUS) subheadings 7317.00.20.00 and
7317.00.30.00.
Also excluded from the scope of this investigation are nails
having a case hardness greater than or equal to 50 on the Rockwell
Hardness C scale (HRC), a carbon content greater than or equal to
0.5 percent, a round head, a secondary reduced-diameter raised head
section, a centered shank, and a smooth symmetrical point, suitable
for use in gas-actuated hand tools.
Also excluded from the scope of this investigation are
corrugated nails. A corrugated nail is made up of a small strip of
corrugated steel with sharp points on one side.
Also excluded from the scope of this investigation are thumb
tacks, which are currently classified under HTSUS 7317.00.10.00.
Certain steel nails subject to this investigation are currently
classified under HTSUS subheadings 7317.00.55.02, 7317.00.55.03,
7317.00.55.05, 7317.00.55.07, 7317.00.55.08, 7317.00.55.11,
7317.00.55.18, 7317.00.55.19, 7317.00.55.20, 7317.00.55.30,
7317.00.55.40, 7317.00.55.50, 7317.00.55.60, 7317.00.55.70,
7317.00.55.80, 7317.00.55.90, 7317.00.65.30, 7317.00.65.60 and
7317.00.75.00. Certain steel nails subject to this investigation
also may be classified under HTSUS subheading 8206.00.00.00.
While the HTSUS subheadings are provided for convenience and
customs purposes, the written description of the scope of this
investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
1. Background
[[Page 78061]]
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 Determination
c. The Vietnam-Wide Entity
d. Single-Entity Treatment
e. Facts Available
f. Surrogate Country
g. Surrogate Value Comments
h. Combination Rates
i. Date of Sale
j. Normal Value
k. Factor Valuation Methodology
l. Comparisons to Normal Value
m. Currency Conversion
7. Verification
8. Section 777A(f) of the Act
9. U.S. International Trade Commission Notification
10. Disclosure and Public Comment
11. Conclusion
[FR Doc. 2014-30431 Filed 12-24-14; 8:45 am]
BILLING CODE 3510-DS-P