[Federal Register Volume 81, Number 234 (Tuesday, December 6, 2016)]
[Notices]
[Pages 87907-87909]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-29196]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-557-816]


Certain Steel Nails From Malaysia: Preliminary Results of the 
Changed Circumstances Review

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

SUMMARY: On November 17, 2015, the Department of Commerce (the 
``Department'') initiated a changed circumstance review (``CCR'') of 
the antidumping duty (``AD'') order on certain steel nails (``nails'') 
from Malaysia. Pursuant to section 751(b) of the Tariff Act of 1930, as 
amended (``the Act''), and 19 CFR 351.216, the Department preliminarily 
determines that Inmax Sdn. Bhd. (``Inmax Sdn'') and Inmax Industries 
Sdn. Bhd. (``Inmax Industries'') (collectively, ``Inmax'') should be 
collapsed and assigned the same AD cash deposit rate for purposes of 
determining AD liability in this proceeding. Interested parties are 
invited to comment on these preliminary results.

DATES: Effective December 6, 2016.

FOR FURTHER INFORMATION CONTACT: Moses Song, AD/CVD Operations, Office 
VI, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, 
DC 20230; telephone: (202) 482-5041.

SUPPLEMENTARY INFORMATION:

Background

    On July 13, 2015, the Department published the AD order on nails 
from Malaysia in the Federal Register.\1\ On September 2, 2015, Mid 
Continent Steel & Wire, Inc. (``Petitioner'') requested that the 
Department conduct a CCR, pursuant to section 751(b) of the Act and 19 
CFR 351.216, to determine that Inmax Sdn and Inmax Industries should be 
collapsed and assigned the same AD cash deposit rate assigned to Inmax 
Sdn.\2\ On November 17, 2015, the Department initiated this CCR, 
pursuant to section 751(b)(1) of the Act and 19 CFR 351.216(c) and (d), 
upon finding that there is sufficient information and ``good cause'' 
regarding new trading

[[Page 87908]]

patterns and possible evasion of the Order.\3\
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    \1\ See Certain Steel Nails From the Republic of Korea, 
Malaysia, the Sultanate of Oman, Taiwan, and the Socialist Republic 
of Vietnam: Antidumping Duty Orders, 80 FR 39994 (July 13, 2015) 
(``Order'').
    \2\ See Letter from Petitioner to the Department, regarding 
``Certain Steel Nails from Malaysia: Request for Changed 
Circumstances Review,'' dated September 2, 2015 (``CCR Request'').
    \3\ See Certain Steel Nails From Malaysia: Initiation of 
Antidumping Duty Changed Circumstances Review, 80 FR 71772 (November 
17, 2015) (``Initiation Notice'').
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Scope of the Order

    The merchandise covered by the Order is certain steel nails having 
a nominal shaft length not exceeding 12 inches.\4\ Certain steel nails 
include, but are not limited to, nails made from round wire and nails 
that are cut from flat-rolled steel. Merchandise covered by this order 
is currently classified in the Harmonized Tariff System of the United 
States (``HTSUS'') under 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. These HTSUS subheadings are provided for convenience and 
customs purposes; the written description of the scope of this order is 
dispositive.
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    \4\ 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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    A complete description of the scope of the Order is contained in 
the Preliminary Decision Memorandum.\5\ 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''). ACCESS is available 
to registered users at http://access.trade.gov, and is available to all 
parties in the Central Records Unit, Room B8024 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/index.html. The signed Preliminary Decision 
Memorandum and the electronic version of the Preliminary Decision 
Memorandum are identical in content.
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    \5\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, from 
Moses Song, International Trade Compliance Analyst, Office VI, 
through Scot Fullerton, Director, Office VI, regarding ``Decision 
Memorandum for the Preliminary Results of the Antidumping Duty 
Changed Circumstances Review of Certain Steel Nails from Malaysia,'' 
dated concurrently with and hereby adopted in this notice.
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Methodology

    We are conducting this CCR in accordance with section 751(b)(1) of 
the Act. For a full description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum.

Preliminary Results of the Changed Circumstances Review

    We preliminarily determine that Inmax Sdn and Inmax Industries are 
affiliated and should be collapsed as a single entity. Specifically, we 
find that Inmax Sdn and Inmax Industries are directly controlled by 
Inmax Holding Co., Ltd. (Inmax Holding) as Inmax Sdn and Inmax 
Industries are both wholly-owned by Inmax Holding, thereby meeting the 
affiliation criteria in accordance with section 777(33)(F) of the Act. 
In addition, we find that Inmax Sdn and Inmax Industries should be 
collapsed because both producers have production facilities for similar 
or identical products that would not require substantial retooling in 
order to restructure manufacturing priorities.
    Additionally, there is a significant potential for the manipulation 
of price or production. Regarding a significant potential for the 
manipulation of price or production, the following criteria are all 
satisfied: (1) A high level of common ownership; (2) managerial 
overlap; and (3) intertwined operations. In particular, U.S. Customs 
and Border Protection (CBP) import data for entries of merchandise 
under review from the publication date of the preliminary determination 
of the investigation (i.e., December 29, 2014) to March 31, 2016 (i.e., 
subsequent to the initiation of this CCR), clearly indicate new trading 
patterns since the Order was issued in July 2015, which has the 
potential to undermine the efficacy and integrity of the Order. 
Furthermore, we note that the collapsing issue was not thoroughly 
addressed in the final determination of the investigation and that, 
based on record evidence, there is a significant potential for future 
manipulation of price or production of subject merchandise between 
Inmax Sdn and Inmax Industries. A list of topics discussed in the 
Preliminary Decision Memorandum appears in the Appendix to this notice.
    If the Department upholds these preliminary results in the final 
results, entries of subject merchandise produced by Inmax Sdn and Inmax 
Industries will be subject to the AD cash deposit rate currently 
assigned to Inmax Sdn (i.e., 39.35 percent).\6\
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    \6\ See Certain Steel Nails From Malaysia; Final Determination 
of Sales at Less Than Fair Value, 80 FR 28969 (May 20, 2015).
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Public Comment

    Interested parties may submit case briefs no later than 30 days 
after the date of publication of these preliminary results of review in 
the Federal Register.\7\ Rebuttal briefs, limited to issues raised in 
the case briefs, may be filed by no later than five days after the 
deadline for filing case briefs.\8\ Parties that submit case or 
rebuttal briefs 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.\9\ All briefs are to be filed electronically 
using ACCESS.\10\ An electronically filed document must be received 
successfully in its entirety by ACCESS by 5:00 p.m. Eastern Time on the 
day on which it is due.\11\
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    \7\ See 19 CFR 351.309(c)(1)(ii). The Department has exercised 
its discretion under 19 CFR 351.309(c)(1)(ii) to alter the time 
limit for submission of case briefs.
    \8\ See 19 CFR 351.309(d)(1).
    \9\ See 19 CFR 351.309(c)(2) and (d)(2).
    \10\ See 19 CFR 351.303(b) and (f).
    \11\ See 19 CFR 351.303(b).
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    Any interested party may submit a request for a hearing to the 
Assistant Secretary of Enforcement and Compliance using ACCESS within 
30 days of publication of this notice in the Federal Register.\12\ 
Hearing requests should contain the following information: (1) The 
party's name, address, and telephone number; (2) the number of 
participants; and (3) a list of the issues to be discussed. Oral 
presentations will be limited to issues raised in the briefs.\13\ If a 
request for a hearing is made, parties will be notified of the time and 
date of the hearing, which will be held at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230.\14\

Final Results of the Review
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    \12\ See 19 CFR 351.310(c).
    \13\ Id.
    \14\ See 19 CFR 351.310(d).
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    Unless extended, in accordance with 19 CFR 351.216(e), the 
Department intends to issue the final results of this CCR not later 
than 270 days after the date on which the review was initiated.

Notification to Parties

    The Department is issuing and publishing these results in 
accordance with sections 751(b)(1) and 777(i) of the Act and 19 CFR 
351.216 and 351.221(c)(3)(i).


[[Page 87909]]


    Dated: November 16, 2016.
Paul Piquado,
Assistant Secretary, for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Preliminary Results of the Changed Circumstances Review
    A. Affiliation
    Legal Standard
    Analysis
    Recommendation
    B. Collapsing
    Legal Standard
    Analysis
    1. Affiliation
    2. Substantial Retooling of Manufacturing Facilities
    3. Significant Potential for Manipulation of Price or Production
    i. Level of Common Ownership
    ii. Managerial Overlap
    iii. Intertwined Operations
    C. Whether the Department Should Collapse Affiliated Parties 
After the Final Determination of an Investigation and Prior to the 
First Administrative Review Recommendation

[FR Doc. 2016-29196 Filed 12-5-16; 8:45 am]
 BILLING CODE 3510-DS-P