[Federal Register Volume 80, Number 97 (Wednesday, May 20, 2015)]
[Notices]
[Pages 28955-28958]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-12257]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-874]


Certain Steel Nails From the Republic of Korea: Final 
Determination of Sales at Less Than Fair Value

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

SUMMARY: The Department of Commerce (``the Department'') determines 
that imports of certain steel nails (``nails'') from the Republic of 
Korea (``Korea'') are being sold in the United States at less than fair 
value (``LTFV''), as provided in section 735 of the Tariff Act of 1930, 
as amended (the ``Act''). The final weighted-average dumping margins of 
sales at LTFV are listed below in the section entitled ``Final 
Determination Margins.''

DATES: Effective Date: May 20, 2015.

FOR FURTHER INFORMATION CONTACT: Krisha Hill or Drew Jackson, AD/CVD 
Operations, Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4037 or (202) 482-4406, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 29, 2014, the Department published in the Federal 
Register the preliminary determination in the LTFV investigation of 
nails from Korea.\1\ In the Preliminary Determination, we postponed the 
final determination until no later than 135 days after the date of 
publication of the Preliminary Determination in accordance with section 
735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii) and invited 
parties to comment on our Preliminary Determination.
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    \1\ See Certain Steel Nails From the Republic of Korea: 
Affirmative Preliminary Determination of Sales at Less Than Fair 
Value and Postponement of Final Determination, 79 FR 78051 (December 
29, 2014) (Preliminary Determination).
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    The following events have occurred since the Preliminary 
Determination. Between January 6, 2015, and February 13, 2015, the 
Department conducted sales and cost verifications of both respondents, 
Jinheung Steel Corporation (``Jinheung Steel'') and Daejin Steel 
(``Daejin''), as well as the sales verification of Jinheung Steel's 
affiliate, Illinois Tool Works Inc. (``ITW''). On January 28, 2015, 
Jinheung Steel requested a hearing. On March 27, 2015, Jinheung Steel, 
Daejin, ITW, and Mid Continent Steel & Wire, Inc. (``Petitioner'') 
submitted case briefs. On April 2, 2015, Daejin and Petitioner 
submitted rebuttal case briefs. On April 8, 2015, Jinheung Steel 
withdrew its hearing request. No hearing was held in this 
investigation.

Period of Investigation

    The period of investigation (``POI'') is April 1, 2013, through 
March 31, 2014.

Scope of the Investigation

    The product covered by this investigation is certain steel nails 
from Malaysia. For a full description of the scope of the 
investigation, see Appendix I to this notice.
    Since the Preliminary Determination, several interested parties 
(i.e., IKEA Supply AG, The Home Depot, Target Corporation, and 
Petitioner) commented on the scope of these investigations. The 
Department reviewed these comments and made certain changes. For 
further discussion, see the Issues and Decision

[[Page 28956]]

Memorandum.\2\ The scope in Appendix I reflects all modifications to 
the scope made by the Department for this final determination.
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    \2\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, from 
Howard Smith, Acting Office Director, Enforcement and Compliance, 
Office IV, regarding ``Certain Steel Nails From the Republic of 
Korea: Issues and Decision Memorandum for the Final Determination of 
Sales at Less Than Fair Value'' (Issues and Decision Memorandum), 
dated concurrently with this determination and hereby adopted by 
this notice.
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Verification

    As provided in section 782(i) of the Act and 19 CFR 
351.307(b)(1)(i), from January 2015 through February 2015, we verified 
the sales and cost information submitted by Jinheung Steel and Daejin, 
as well as sales information submitted by ITW, for use in our final 
determination. We used standard verification procedures including an 
examination of relevant accounting and production records, and original 
source documents provided by Jinheung Steel, Daejin, and ITW.\3\
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    \3\ See Memorandum to the File from Robert Bolling and Drew 
Jackson, AD/CVD Operations, Office IV, through Charles Riggle, 
Senior International Trade Compliance Analyst, AD/CVD Operations, 
Office IV, regarding ``Verification of the Sales Questionnaire 
Responses of Illinois Tool Works: Antidumping Duty Investigation of 
Certain Steel Nails from Korea'' (March 10, 2015); see also 
Memorandum to the File from Drew Jackson and Krisha Hill, AD/CVD 
Operations, Office IV, through Robert Bolling, Program Manager, AD/
CVD Operations, Office IV, regarding ``Verification of the Sales 
Questionnaire Responses of Daejin Steel: Antidumping Duty 
Investigation of Certain Steel Nails from the Republic of Korea'' 
(March 11, 2015); see also Memorandum to the File from Ji Young Oh 
and Kristin Case, Senior Accountants, through Taija Slaughter, Lead 
Accountant, and Neal M. Halper, Office Director, regarding 
``Verification of the Cost Response of Daejin Steel Company in the 
Antidumping Duty Investigation of Certain Steel Nails from Korea'' 
(March 12, 2015); see also Memorandum to the File from Ji Young Oh 
and Kristin Case, Senior Accountants, through Taija Slaughter, Lead 
Accountant, and Neal M. Halper, Office Director, regarding 
``Verification of the Cost Response of Jinheung Steel Corporation in 
the Antidumping Duty Investigation of Certain Steel Nails from the 
Republic of Korea'' (March 12, 2015); see also Memorandum to the 
File from Drew Jackson and Krisha Hill, AD/CVD Operations, Office 
IV, through Robert Bolling, Program Manager, AD/CVD Operations, 
Office IV, regarding ``Verification of the Sales Questionnaire 
Responses of Jinheung Steel Corporation: Antidumping Duty 
Investigation of Certain Steel Nails from the Republic of Korea'' 
(March 19, 2015).
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum 
accompanying this notice, and which is hereby adopted by this 
notice.\4\ A list of the issues raised and to which the Department 
responded is attached to this notice as Appendix II. The Issues and 
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''). ACCESS is available 
to registered users at http://access.trade.gov. The memorandum 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 Issues and Decision Memorandum can be accessed directly at 
http://enforcement.trade.gov. The signed and electronic versions of the 
Issues and Decision Memorandum are identical in content.
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    \4\ See Issues and Decision Memorandum.
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Changes to the Margin Calculations Since the Preliminary Determination

    Based on a review of the record and comments received from 
interested parties regarding our Preliminary Determination, we made the 
following changes to the margin calculations for Jinheung Steel and 
Daejin:
    For Daejin:
     We used an updated sales database submitted by Daejin 
which reflects minor corrections and findings from the sales 
verification.\5\
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    \5\ See Letter from Daejin to the Department, regarding 
``Certain Steel Nails from Korea; Submission of Daejin Steel 
Company's Revised U.S. Sales Database,'' dated March 26, 2015.
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     We adjusted U.S. price for domestic brokerage and handling 
charges incurred in U.S. dollars (``DBROK2U'').\6\
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    \6\ See Issues and Decision Memorandum at comment 1; see also 
Memorandum from Krisha Hill, International Trade Compliance Analyst, 
to Robert Bolling, Program Manager, regarding ``Analysis Memorandum 
for the Final Determination of the Antidumping Duty Investigation of 
Certain Steel Nails from the Republic of Korea: Daejin Steel,'' 
dated May 13, 2015.
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     We used Jinheung Steel's business proprietary home market 
financial information as the data source to calculate Daejin's CV 
profit and selling expense.\7\
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    \7\ See Issues and Decision Memorandum at comment 4; see also 
Memorandum from Ji Young Oh, Senior Accountant, to Neal M. Halper, 
Director, Office of Accounting, regarding ``Cost of Production and 
Constructed Value Calculation Adjustments for the Final 
Determination--Daejin Steel,'' dated May 13, 2015 (``Daejin Steel 
Cost Calculation Memorandum'').
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     We corrected the programming error related to the 
calculation of total cost of manufacturing (``TOTCOM'') for certain 
control numbers (``CONNUMs'').\8\
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    \8\ See Issues and Decision Memorandum at comment 3; see also 
Daejin Steel Cost Calculation Memorandum.
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    For Jinheung Steel:
     We assigned a single manufacturer code to all home-market 
and U.S. sales based on our determination to treat Jinheung Steel, Duo-
Fast Korea Co. Ltd. (``DFK''), and Jinsco International Corporation 
(``Jinsco'') as a single entity.\9\
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    \9\ See Issues and Decision Memorandum at comment 5; see also 
Memorandum to The File from Drew Jackson, International Trade 
Analyst, AD/CVD Operations Office IV through Robert Bolling, Program 
Manager, AD/CVD Operations Office IV, regarding ``Analysis 
Memorandum for the Final Determination of the Antidumping Duty 
Investigation of Certain Steel Nails from the Republic of Korea: 
Jinheung Steel Corporation and Affiliates'' dated May 13, 2015 
(``Jinheung Steel Analysis Memorandum'').
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     We used updated sales and cost databases submitted by 
Jinheung Steel and ITW, which reflect minor corrections presented 
during the verification of these companies.\10\
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    \10\ See Letter from Jinheung Steel to the Department, regarding 
``Antidumping Investigation of Certain Steel Nails from Korea--
Response of Jinheung Steel Corporation, Jinsco International 
Corporation, and Duo-Fast Korea Co., Ltd. to March 4 Request for 
Revised Cost Data Files,'' dated March 9, 2015; see also Letter from 
Jinheung Steel to the Department, regarding ``Antidumping 
Investigation of Certain Steel Nails from Korea--Response of 
Jinheung Steel Corporation, Jinsco International Corporation, and 
Duo-Fast Korea Co., Ltd. to March 20 Request for Revised Sales Data 
Files,'' dated March 23, 2015; see also Letter from ITW to the 
Department, regarding ``Certain Steel Nails from Korea: Revised U.S. 
Sales Databases of Illinois Tool Works Inc.,'' dated March 23, 2015.
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     We revised certain reported product characteristics to 
reflect changes found during verification of ITW's response.\11\
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    \11\ See Jinheung Steel Analysis Memorandum.
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     We disallowed Jinheung Steel's duty drawback offset.\12\
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    \12\ See Jinheung Steel Analysis Memorandum.
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     We adjusted Jinheung Steel's reported scrap offset.\13\
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    \13\ See Issues and Decision Memorandum at comment 8; see also 
Jinheung Steel Analysis Memorandum; see also Memorandum to the File 
regarding ``Cost of Production and Constructed Value Calculation 
Adjustments for the Final Determination--Jinheung Steel 
Corporation,'' dated May 13, 2015 (``Jinheung Steel Cost Calculation 
Memorandum'').
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     We recalculated Jinheung Steel's general and 
administrative and financial expenses so that they reflect our 
adjustment to Jinheung Steel's reported scrap offset.\14\
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    \14\ See Jinheung Steel Analysis Memo; see also Jinheung Steel 
Cost Calculation Memorandum.
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     We reversed an adjustment to Jinheung Steel's reported 
costs involving work in process that we made at the Preliminary 
Determination.\15\
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    \15\ See Issues and Decision Memorandum at comment 9; see also 
Jinheung Steel Analysis Memo and Jinheung Steel Cost Calculation 
Memorandum.
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Final Determination Margins

    The Department determines that the following weighted-average 
dumping margins exist for the period April 1, 2013, through March 31, 
2014:

[[Page 28957]]



------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Exporter or producer                        dumping
                                                                margin
                                                               (percent)
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Daejin Steel................................................       11.80
Jinheung Steel Corporation..................................        0.00
Duo-Fast Korea Co., Ltd
Jinsco International Corporation
All Others..................................................       11.80
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All Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated ``All 
Others'' rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated, excluding any zero or de 
minimis margins, and any margins determined entirely under section 776 
of the Act. The weighted-average margin for exporters and producers 
individually investigated that meets these criteria is that of Daejin. 
Therefore, the All-Others rate is the rate calculated for Daejin, as 
indicated in the ``Final Determination Margins'' section above.

Disclosure

    We will disclose to parties in this proceeding the calculations 
performed for this final determination within five days of the date of 
public announcement of our final determination, in accordance with 19 
CFR 351.224(b).

Suspension of Liquidation

    Pursuant to section 735(c)(1)(B) of the Act, the Department will 
instruct U.S. Customs and Border Protection (``CBP'') to continue to 
suspend liquidation of all of entries of certain steel nails from 
Korea, except as noted below, which were entered, or withdrawn from 
warehouse, for consumption on or after December 29, 2014, the date of 
publication of the Preliminary Determination. For the Jinheung Steel 
Single Entity, which includes Jinheung Steel, Duo-Fast Korea Co., Ltd., 
and Jinsco International Corporation, because this entity's estimated 
weighted-average final dumping margin is zero, we are directing CBP to 
terminate suspension of liquidation of entries of certain steel nails 
produced and exported by this entity.
    Pursuant to CFR 351.210(d), we will instruct CBP to require a cash 
deposit equal to the weighted-average amount by which normal value 
exceeds U.S. price, as follows: (1) The rate for Daejin will be the 
rate we determined in this final determination; (2) if the exporter is 
not a firm identified in this investigation but the producer is, the 
rate will be the rate established for the producer of the subject 
merchandise; and (3) the rate for all other producers or exporters will 
be 11.80 percent. These suspension of liquidation instructions will 
remain in effect until further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we notified the U.S. 
International Trade Commission (``ITC'') of our final determination. As 
our final determination is affirmative, in accordance with section 
735(b)(2) of the Act, the ITC will determine within 45 days whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports or sales (or the 
likelihood of sales) for importation of the subject merchandise. If the 
ITC determines that such injury exists, the Department will issue an 
antidumping duty order directing CBP to assess, upon further 
instruction by the Department, antidumping duties on appropriate 
imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

Return or Destruction of Proprietary Information

    This notice will serve as a reminder to parties subject to 
administrative protective order (``APO'') of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.

Notification to Interested Parties

    We are issuing and publishing this determination and notice in 
accordance with sections 735(d) and 777(i)(1) of the Act.

    Dated: May 13, 2015.
Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

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.\16\ 
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.
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    \16\ 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. 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, unless otherwise 
excluded based on the other exclusions below.
    Also excluded from the scope are certain steel nails with a 
nominal shaft length of one inch or less that are (a) a component of 
an unassembled article, (b) the total number of nails is sixty (60) 
or less, and (c) the imported unassembled article falls into one of 
the following eight groupings: 1) builders' joinery and carpentry of 
wood that are classifiable as windows, French-windows and their 
frames; 2) builders' joinery and carpentry of wood that are 
classifiable as doors and their frames and thresholds; 3) swivel 
seats with variable height adjustment; 4) seats that are convertible 
into beds (with the exception of those classifiable as garden seats 
or camping equipment); 5) seats of cane, osier, bamboo or similar 
materials; 6) other seats with wooden frames (with the exception of 
seats of a kind used for aircraft or motor vehicles); 7) furniture 
(other than seats) of wood (with the exception of i) medical, 
surgical, dental or veterinary furniture; and ii) barbers' chairs 
and similar chairs, having rotating as well as both reclining and 
elevating movements); or 8) furniture (other than seats) of 
materials other than wood, metal, or plastics (e.g., furniture of 
cane, osier, bamboo or similar materials). The aforementioned 
imported unassembled articles are currently classified under the 
following Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings: 4418.10, 4418.20, 9401.30, 9401.40, 9401.51, 9401.59, 
9401.61, 9401.69, 9403.30, 9403.40, 9403.50, 9403.60, 9403.81 or 
9403.89.
    Also excluded from the scope of this investigation are steel 
nails that meet the specifications of Type I, Style 20 nails as

[[Page 28958]]

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 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 subheading 
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 or other 
HTSUS subheadings.
    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 Issues and Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Discussion of the Issues

    Issues Pertaining to Daejin:

Comment 1: Domestic Brokerage and Handling Charges Incurred in U.S. 
Dollars
Comment 2: Daejin's Audited Financial Statements
Comment 3: TOTCOM Calculation Error for Certain CONNUMs
Comment 4: Constructed Value (``CV'') Profit for Daejin

    Issues Pertaining to Jinheung Steel:

Comment 5: Cash Deposit Rate for Affiliated Companies
Comment 6: Product Comparison Methodology
Comment 7: Differential Pricing Analysis
Comment 8: Steel Scrap Offset
Comment 9: Change in Work-In-Process and Semi-Finished Goods 
Inventories
VI. Recommendation

[FR Doc. 2015-12257 Filed 5-19-15; 8:45 am]
BILLING CODE 3510-DS-P