[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Notices]
[Pages 13239-13241]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06137]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-832]


Carbon and Alloy Steel Wire Rod From the Republic of Turkey: 
Final Affirmative Countervailing Duty Determination and Final 
Affirmative Critical Circumstances Determination, in Part

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to exporters and producers 
of carbon and alloy steel wire rod (wire rod) from the Republic of 
Turkey (Turkey) for the period of investigation (POI), January 1, 2016, 
through December 31, 2016.

DATES: Applicable March 28, 2018.

FOR FURTHER INFORMATION CONTACT: Justin Neuman or Omar Qureshi, AD/CVD 
Operations, Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0486 or (202) 482-5307, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On September 5, 2017, Commerce published its affirmative 
Preliminary Determination of this countervailing duty (CVD) 
investigation.\1\
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    \1\ See Carbon and Alloy Steel Wire Rod from the Republic of 
Turkey: Preliminary Affirmative Countervailing Duty Determination 
and Preliminary Affirmative Critical Circumstances Determination, in 
Part, 82 FR 41929 (September 5, 2017) (Preliminary Determination).
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    Commerce exercised its discretion to toll all deadlines affected by 
the closure of the Federal Government from January 20 through 22, 2018. 
If the new deadline falls on a non-business day, in accordance with 
Commerce's practice, the deadline will become the next business day. 
The revised deadline for the final determination of this investigation 
is now March 19, 2018.\2\ 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.\3\
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    \2\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'', dated January 23, 2018. All deadlines in 
this segment of the proceeding have been extended by 3 days.
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Carbon and Alloy Steel Wire Rod from the Republic of Turkey,'' dated 
concurrently with this determination and hereby adopted by this 
notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The scope of the investigation covers wire rod from Turkey. For a 
complete description of the scope of the investigation, see Appendix I.

Scope Comments

    During the course of this investigation, Commerce received numerous 
scope comments from interested parties. Prior to the Preliminary 
Determination, Commerce issued a Preliminary Scope Decision Memorandum 
to address these comments and made no changes to the

[[Page 13240]]

scope of the investigation as it appeared in the Initiation Notice.\4\
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    \4\ For discussion of these comments, 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 Determination'' 
(Preliminary Scope Decision Memorandum), dated August 7, 2017.
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    In September 2017, we received scope case and rebuttal briefs. On 
November 20, 2017, we issued the Final Scope Decision Memorandum in 
response to the comments received.\5\ We did not change the scope of 
this investigation.
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    \5\ For discussion of these comments, 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.
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Methodology

    Commerce is conducting this 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 Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum. 
A list of the issues raised 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 https://access.trade.gov, 
and it is available to all parties in the Central Records Unit, Room B-
8024 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 and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

Verification

    Commerce conducted verification of the questionnaire responses 
submitted by the Government of Turkey, Habas Sinai Ve Tibbi Gazlar 
Istih (Habas), and Icdas Celik Eberji Tersane Ve Ulasim San (Icdas) 
between January 18, and February 9, 2018.

Adverse Facts Available

    If necessary information is not available on the record, or an 
interested party withholds information, fails to provide requested 
information in a timely manner, significantly impedes a proceeding by 
not providing information, or information provided cannot be verified, 
Commerce will apply facts available, pursuant to section 776(a)(1) and 
(2) of the Tariff Act of 1930, as amended (the Act). For purposes of 
this final determination, Commerce relied, in part, on facts available 
and, because certain respondents did not cooperate by not acting to the 
best of their ability to respond to the Commerce's requests for 
information, we drew an adverse inference, where appropriate, in 
selecting from among the facts otherwise available.\6\ 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 Decision Memorandum.
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    \6\ See sections 776(a) and (b) of the Act.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the subsidy rate calculations 
since the Preliminary Determination. These changes are discussed in the 
``Analysis of Programs'' section of the Issues and Decision 
Memorandum.\7\
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    \7\ See Issues and Decision Memorandum at VII; see also 
Department Memorandum, ``Carbon and Alloy Steel Wire Rod from the 
Republic of Turkey: Calculations for the Final Countervailing Duty 
Determination,'' dated March 19, 2018.
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Final Affirmative Determination of Critical Circumstances, in Part

    In the Preliminary Determination, Commerce found that critical 
circumstances exist with respect to imports of wire rod from Turkey 
from all other exporters or producers not individually examined.\8\ 
Following the Preliminary Determination, Habas did not provide 
requested information concerning its shipments through September 2017. 
As a result, we are modifying our findings for this final determination 
and relying, in part, on facts otherwise available with an adverse 
inference in arriving at our conclusion that, in accordance with 
section 705(a)(2) of the Act that critical circumstances exist with 
respect to Habas. We continue to find, as we did in the Preliminary 
Determination that critical circumstances exist with respect to imports 
from ``all other'' companies. For a full description of the methodology 
and results of Commerce's analysis, see the Issues and Decision 
Memorandum.
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    \8\ See Preliminary Determination at 41930.
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Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for each exporter/producer of the subject merchandise 
individually investigated, i.e., Habas and Icdas. 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 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.''
    In this investigation, Commerce calculated individual 
countervailable subsidy rates for Habas and Icdas that are not zero, de 
minimis, or based entirely on facts otherwise available. Because we do 
not have publicly ranged data from all company respondents with which 
to calculate the all-others rate using a weighted-average of the 
individual estimated subsidy rates, Commerce calculated the all-others 
rate using a simple average of the individual estimated subsidy rates 
calculated for the examined respondents.
    The final subsidy rates are as follows:

------------------------------------------------------------------------
                                                           Subsidy rates
                         Company                             (percent)
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Habas Sinai Ve Tibbi Gazlar Istih.......................            3.86
Icdas Celik Eberji Tersane Ve Ulasim San................            3.81
All-Others..............................................            3.84
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Disclosure

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

[[Page 13241]]

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of any entries of merchandise 
under consideration from Turkey that were entered, or withdrawn from 
warehouse, for consumption by Habas and all other producers or 
exporters, other than Icdas, on or after September 5, 2017, which is 
the publication date in the Federal Register of the Preliminary 
Determination. In accordance with section 703(d) of the Act, we 
instructed CBP to discontinue the suspension of liquidation for CVD 
purposes for subject merchandise entered, or withdrawn from warehouse, 
on or after January 3, 2018, but to continue the suspension of 
liquidation of all entries from September 5, 2017, through January 2, 
2018.
    The Department continues to find that critical circumstances exist 
for the all others companies and therefore we will instruct CBP to 
continue to suspend liquidation of all entries of subject merchandise 
from the all others companies entered, or withdrawn from warehouse, for 
consumption on or after June 7, 2017, which is 90 days prior to the 
date of publication of the Preliminary Determination. CBP shall 
continue to require a cash deposit equal to the rates shown above. In 
addition, because we have determined for this final determination that 
critical circumstances exist for Habas, and section 705(c)(4) of the 
Act provides that, given an affirmative determination of critical 
circumstances, any suspension of liquidation shall apply to 
unliquidated entries of merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date which is 90 days before 
the date on which the suspension of liquidation was first ordered, we 
will also instruct CBP to suspend liquidation of all entries of subject 
merchandise from Habas entered, or withdrawn from warehouse, for 
consumption on or after June 7, 2017, which is 90 days before the date 
on which suspension of liquidation was first ordered. These 
instructions suspending liquidation will remain in effect until further 
notice.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order and will require a cash deposit of estimated countervailing 
duties for 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 the final affirmative countervailing duty determination. Because 
the final determination in this proceeding is affirmative, in 
accordance with section 735(b)(2) of the Act, the ITC will 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 wire rod from Turkey, no later than 45 days after 
our final determination. If the ITC determines that material injury or 
threat of material injury does not exist, the proceeding will be 
terminated and all cash deposits will be refunded. If the ITC 
determines that such injury does exist, Commerce will issue a 
countervailing duty order directing CBP to assess, upon further 
instruction by Commerce, countervailing duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding Administrative Protective Orders (APO)

    This notice serves 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 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.
    This determination is issued and published in accordance with 
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. Final Determination of Critical Circumstances
V. Subsidies Valuation
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 Adjust the Benchmark Prices 
for Natural Gas
    Comment 2: Whether Commerce Should Alter the Calculation of 
Habas' Benefit Under the Rediscounted Loan Program Sales Denominator 
for Habas
    Comment 3: Whether Commerce Should Countervail the Minimum Wage 
Support Program
    Comment 4: Whether Commerce Should Adjust Icdas' Sales 
Denominator
X. Recommendation

[FR Doc. 2018-06137 Filed 3-27-18; 8:45 am]
 BILLING CODE 3510-DS-P