[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Notices]
[Pages 13242-13244]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06133]



[[Page 13242]]

-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-475-837]


Countervailing Duty Investigation of Carbon and Alloy Steel Wire 
Rod From Italy: Final Affirmative Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of carbon and alloy steel wire rod (wire rod) from Italy. The period of 
investigation is January 1, 2016, through December 31, 2016. For 
information on the estimated subsidy rates, see the ``Final 
Determination and Suspension of Liquidation'' section of this notice.

DATES: Applicable March 28, 2018.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas, 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) 482-3813.

SUPPLEMENTARY INFORMATION: 

Background

    On September 5, 2017, Commerce published the Preliminary 
Determination.\1\ A summary of the events that occurred since Commerce 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the Issues and Decision Memorandum, which is hereby adopted by 
this notice.\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/. The 
signed Issues and Decision Memorandum and the electronic version are 
identical in content.
---------------------------------------------------------------------------

    \1\ See Carbon and Alloy Steel Wire Rod from Italy: Preliminary 
Affirmative Countervailing Duty Determination, 82 FR 41931 
(September 5, 2017) (Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Carbon and Alloy Steel Wire Rod from Italy,'' dated concurrently 
with this determination and hereby adopted by this notice (Issues 
and Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The product covered by this investigation is wire rod from Italy. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    We invited parties to comment on Commerce's Preliminary Scope 
Memorandum.\3\ Commerce reviewed the briefs submitted by interested 
parties, considered the arguments therein, and determined not to make 
any changes to the scope of the investigation. For further discussion, 
see Commerce's Final Scope Decision Memorandum.\4\
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Carbon and Alloy Steel Wire Rod from 
Belarus, Italy, the Republic of Korea, the Russian Federation, South 
Africa, Spain, the Republic of Turkey, Ukraine, the United Arab 
Emirates, and the United Kingdom: Scope Comments Decision Memorandum 
for the Preliminary Determinations,'' dated August 7, 2017, and 
filed to ACCESS on August 7, 2017.
    \4\ See Memorandum, ``Carbon and Alloy Steel Wire Rod from 
Belarus, Italy, the Republic of Korea, the Russian Federation, South 
Africa, Spain, the Republic of Turkey, Ukraine, the United Arab 
Emirates, and the United Kingdom: Final Scope Memorandum'' (Final 
Scope Decision Memorandum), dated November 20, 2017.
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this countervailing duty (CVD) investigation 
in accordance with section 701 of the Tariff Act of 1930, as amended 
(Act). For each of the subsidy programs found to be countervailable, we 
determine that there is a subsidy (i.e., a financial contribution by an 
``authority'' that gives rise to a benefit to the recipient) and that 
the subsidy is specific. For a full description of the methodology 
underlying our final determination, see the Issues and Decisions 
Memorandum.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs submitted by the parties, are discussed in 
the Issues and Decision Memorandum. A list of the issues that parties 
raised, and to which we responded in the Issues and Decision 
Memorandum, is attached to this notice at Appendix II.

Verification

    As provided in section 782(i) of the Act, in January 2018, we 
conducted verification of the questionnaire responses submitted by 
Ferriere Nord S.p.A. and the Government of Italy.
    We issued verification reports on February 8, 2018.\5\ We used 
standard verification procedures, including an examination of relevant 
accounting and financial records, and original source documents 
provided by Ferriere Nord S.p.A.
---------------------------------------------------------------------------

    \5\ See Commerce Memoranda, ``Countervailing Duty Investigation: 
Carbon and Alloy Steel Wire Rod from Italy: Verification of the 
Questionnaire Responses of Ferriere Nord S.p.A., Acciaierie di 
Verona S.p.A. (AdV), SIAT S.p.A. (SIAT) and FIN FER S.p.A. (FIN 
FER),'' (Ferriere Nord Verification Report) and ``Countervailing 
Duty Investigation: Carbon and Alloy Steel Wire Rod from Italy: 
Verification of the Questionnaire Responses of the Government of 
Italy,'' (Government of Italy Verification Report), both dated 
February 8, 2018.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, and minor corrections presented at verification, we made 
certain changes to the respondents' subsidy rate calculations since the 
Preliminary Determination. For a discussion of these changes, see the 
Issues and Decision Memorandum and the Final Calculation Memorandum.\6\
---------------------------------------------------------------------------

    \6\ See Memorandum, ``Countervailing Duty Investigation of 
Carbon and Alloy Steel Wire Rod from Italy: Ferriere Nord S.p.A. 
Final Calculation Memorandum,'' dated March 19, 2018.
---------------------------------------------------------------------------

Adverse Facts Available (AFA)

    For purposes of this final determination, we relied on facts 
available, and because mandatory respondent Ferriera Valsider S.p.A. 
(Ferriera Valsider) did not act to the best of its ability in 
responding to Commerce's requests for information, we drew an adverse 
inference, where appropriate, in selecting from among the facts 
otherwise available.\7\ The subsidy rate for Ferriera Valsider is based 
totally on adverse facts available (AFA). A full discussion of our 
decision to rely on adverse facts available is presented in the ``Use 
of Facts Otherwise Available and Adverse Inferences'' section of the 
Issues and Decisions Memorandum.
---------------------------------------------------------------------------

    \7\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an individual rate for each producer/exporter of the subject 
merchandise individually investigated.
    In accordance with section 705(c)(5)(A) of the Act, for companies 
not individually investigated, we apply an ``all-others'' rate, which 
is normally calculated by weighting the subsidy rates of the individual 
companies selected as mandatory respondents by those companies' exports 
of the subject merchandise to the United States. Under

[[Page 13243]]

section 705(c)(5)(A)(i) of the Act, the ``all-others'' rate excludes 
zero and de minimis rates calculated for the exporters and producers 
individually investigated as well as rates based entirely on facts 
otherwise available. Where the rates for the individually investigated 
companies are all zero or de minimis, or determined entirely using 
facts otherwise available, section 705(c)(5)(A)(ii) of the Act 
instructs Commerce to establish an ``all-others'' rate using ``any 
reasonable method.''
    Pursuant to section 705(c)(5)(A)(i) of the Act, we have calculated 
the ``all-others'' rate using the subsidy rate of Ferriere Nord, the 
only mandatory respondent not receiving a subsidy rate based totally on 
section 776 of the Act. In this investigation, Commerce assigned a rate 
based entirely on facts available to Ferriera Valsider. Therefore, the 
only rate that is not zero, de minimis, or based entirely on facts 
otherwise available, is the rate calculated for Ferriere Nord. 
Consequently, and consistent with Commerce's practice, the rate 
calculated for Ferriere Nord is also assigned as the rate for all-other 
producers and exporters.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Ferriere Nord S.p.A. \8\................................            4.16
Ferriera Valsider S.p.A.................................           44.18
All-Others..............................................            4.16
------------------------------------------------------------------------

Disclosure

    We intend to 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).
---------------------------------------------------------------------------

    \8\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Ferriere Nord: FIN FER S.p.A.; Acciaierie di Verona S.p.A.; and SIAT 
S.p.A.
---------------------------------------------------------------------------

Suspension of Liquidation

    As a result of our affirmative Preliminary Determination, and 
pursuant to sections 703(d)(1)(B) and (2) of the Act, we instructed 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of merchandise under consideration from Italy that were entered 
or withdrawn from warehouse, for consumption, on or after September 5, 
2017, the date of publication of the Preliminary Determination in the 
Federal Register. In accordance with section 703(d) of the Act, 
effective January 3, 2018, we instructed CBP to discontinue the 
suspension of liquidation of all entries at that time, but to continue 
the suspension of liquidation of all entries from August 5, 2017, 
through January 2, 2018.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order, will 
reinstate the suspension of liquidation under section 706(a) of the 
Act, and will require a cash deposit of estimated CVDs for such entries 
of subject merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Notification Regarding Administrative Protective Orders (APO)

    In the event the ITC issues a final negative injury determination, 
this notice serves as the only reminder to parties subject to an APO of 
their responsibility concerning the destruction 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 the terms of an 
APO is a sanctionable violation.

Return or Destruction of Proprietary Information

    In the event the ITC issues a final negative injury determination, 
this notice serves as the only reminder to parties subject to an APO of 
their responsibility concerning the destruction 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 violation subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: March 19, 2018.
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 I

Scope of the Investigation

    The products covered by this investigation are certain hot-
rolled products of carbon steel and alloy steel, in coils, of 
approximately round 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 phosphorous, 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.

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. Subsidies Valuation Information
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Analysis of Comments
    Comment 1: Whether Commerce Should Countervail SIAT's Exemptions 
From General Electricity Network Costs

[[Page 13244]]

    Comment 2: Whether the Energy Interruptibility Contract Is a 
Countervailable Subsidy
    Comment 3: Whether the Purchase of Electricity Through 
Interconnectors Are Countervailable Subsidies
    Comment 4: Selection of Benchmark To Value Purchases of 
Electricity Through Interconnectors
    Comment 5: How To Calculate the Benefit for Electricity 
Purchased Through Interconnectors
    Comment 6: Whether Commerce Should Implement Verification 
Findings To Make Corrections to Ferriere Nord's Sales Denominator 
and the Numerator Used in the Interruptibility Contract Subsidy 
Calculation
    Comment 7: Whether Commerce Should Countervail the Provision of 
Electricity Interconnector Rights
    Comment 8: Whether Commerce Should Countervail Excise Tax 
Exemptions
    Comment 9: Whether Commerce Should Apply AFA to Ferriere 
Valsider
X. Recommendation

[FR Doc. 2018-06133 Filed 3-27-18; 8:45 am]
 BILLING CODE 3510-DS-P