[Federal Register Volume 82, Number 141 (Tuesday, July 25, 2017)]
[Notices]
[Pages 34476-34477]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-15518]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-557-816]


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

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

SUMMARY: On December 6, 2016, the Department of Commerce (Department) 
published a notice of preliminary results of a changed circumstance 
review (CCR) of the antidumping duty order on certain steel nails 
(nails) from Malaysia. Based on our analysis of the comments from 
interested parties, we continue to find that Inmax Sdn. Bhd. (Inmax 
Sdn) and Inmax Industries Sdn. Bhd. (Inmax Industries) (collectively, 
Inmax Companies) should be collapsed. The combined entity's antidumping 
duty cash deposit rate is the current antidumping duty cash deposit 
rate assigned to Inmax Sdn for purposes of determining antidumping duty 
liability.

DATES: July 25, 2017.

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

    The Department initiated this CCR on November 17, 2015, and 
published the Preliminary Results on December 6, 2016.\1\ For a 
description of events that have occurred since the Preliminary Results, 
see the Issues and Decision Memorandum.\2\ 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, 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 Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed Issues and Decision 
Memorandum and the electronic versions of the Issues and Decision 
Memorandum are identical in content.
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    \1\ See Certain Steel Nails from Malaysia: Initiation of 
Antidumping Duty Changed Circumstances Review, 80 FR 71772 (November 
17, 2015) (``Initiation Notice''); see also Certain Steel Nails from 
Malaysia: Preliminary Results of the Changed Circumstances Review, 
81 FR 87907 (December 6, 2016) (``Preliminary Results'').
    \2\ See ``Issues and Decision Memorandum for the Final Results 
of the Antidumping Duty Changed Circumstances Review of Certain 
Steel Nails from Malaysia,'' dated concurrently with and hereby 
adopted in this notice (``Issues and Decision Memorandum'').
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Scope of the Order

    The merchandise covered by the Order \3\ 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. A complete description of 
the scope of the Order is contained in the Issues and Decision 
Memorandum.\5\
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    \3\ 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) 
(the Order).
    \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.
    \5\ See Issues and Decision Memorandum.
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Analysis of Comments Received

    All issues raised by interested parties in the case and rebuttal 
briefs are addressed in the Issues and Decision Memorandum. A list of 
the issues addressed in the Issues and Decision Memorandum is appended 
to this notice.

Final Results of the Changed Circumstances Review

    Upon review of the comments received and the record evidence, the 
Department continues to find that the Inmax Companies meet the criteria 
to be collapsed into a single entity and should be collapsed for 
purposes of antidumping duty liability in this proceeding. While, 
historically, the Department has not applied 19 CFR 351.401(f) in the 
context of CCRs, the Department finds that for purposes of this 
particular segment of the proceeding, the criteria in the regulation 
are relevant to ensure that the administration and effect of the 
underlying antidumping duty order are not undermined.\6\
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    \6\ See, Hontex Enters. v. United States, 342 F. Supp. 2d 1225, 
1234 (CIT 2004) (upholding Commerce's going beyond the traditional 
regulatory analysis to address significant potential for 
manipulation through criteria other than those listed in the 
regulations); see also, Certain Carbon Steel Cut-To-Length Plate 
from Austria, 82 FR 16366 (April 4, 2017) and accompanying Issues 
and Decision Memorandum, at Comment 5 (``While the regulations only 
addresses certain types of entities, `the Department has found it to 
be instructive' in determining whether other types of entities 
should be collapsed.'').
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    Specifically, we determine that: (1) Inmax Sdn and Inmax Industries 
have production facilities for similar or identical products that would 
not require substantial retooling of either facility in order to 
restructure manufacturing priorities; and, (2) there is a ``significant 
potential for the manipulation of price or production,'' if we do not 
collapse the companies. We conclude that allowing a company to avoid 
paying the cash deposits, specifically determined for it as a result of 
an investigation, through use of affiliated production facilities, is 
an evasion of the antidumping duty order, thereby warranting a CCR.
    Accordingly, as discussed further in the Issues and Decision 
Memorandum, we find, in sum, that: (1) There were sufficient changed 
circumstances which established good cause to initiate and conduct this 
review; (2) the Inmax Companies should be collapsed; (3) the collapsed 
entity of the Inmax Companies is subject to the cash deposit rate 
assigned to Inmax Sdn in the investigation; and, (4) the results of 
this review are applied prospectively, from the date of the publication 
of the Final Results.\7\
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    \7\ See the Order, 80 FR 39994; see also Issues and Decision 
Memorandum.
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Instructions to U.S. Customs and Border Protection

    As a result of this determination, the Department finds that both 
Inmax Sdn

[[Page 34477]]

and Inmax Industries are subject to the cash deposit rate currently 
assigned to Inmax Sdn (i.e., 39.35 percent).\8\ Therefore, the 
Department will instruct U.S. Customs and Border Protection to continue 
suspension of liquidation and to collect estimated antidumping duties 
for all shipments of subject merchandise produced and exported by Inmax 
Sdn and/or Inmax Industries at the current cash deposit rate currently 
applicable to such entries, i.e., the cash deposit rate of 39.35 
percent assigned to Inmax Sdn, from the date of the publication of the 
Final Results.\9\ This cash deposit requirement shall remain in effect 
until further notice.
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    \8\ See the Order, 80 FR 39994 (July 13, 2015).
    \9\ Id.
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Notification to Parties

    This notice is the only 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 return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a sanctionable 
violation.
    The Department is issuing and publishing these results in 
accordance with sections 751(b)(1) and (4) and 777(i) of the Tariff Act 
of 1930, as amended, and 19 CFR 351.216 and 19 CFR 351.221(c)(3)(i).

    Dated: July 14, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Discussion of Issues
V. Recommendation

[FR Doc. 2017-15518 Filed 7-24-17; 8:45 am]
 BILLING CODE 3510-DS-P