[Federal Register Volume 83, Number 135 (Friday, July 13, 2018)]
[Notices]
[Pages 32631-32632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15011]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-909]


Certain Steel Nails From the People's Republic of China: Notice 
of Court Decision Not in Harmony With the Final Results of 
Administrative Review and Notice of Amended Final Results of 
Antidumping Duty Administrative Review

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

SUMMARY: On June 19, 2018, the United States Court of International 
Trade (Court) issued its final judgment in Xi'an Metals & Minerals 
Import & Export Co., Ltd. v. United States, Consol. Court No. 15-00109, 
sustaining, in part, and vacating, in part, the U.S. Department of 
Commerce's (Commerce) final remand results in the fifth administrative 
review of certain steel nails from the People's Republic of China 
(China). Commerce is notifying the public that the final judgment in 
this case is not in harmony with Commerce's final results of the 
administrative review, covering the period of review (POR) August 1, 
2012, through July 31, 2013, and that Commerce is amending the final 
results with respect to the dumping margin assigned to The Stanley 
Works (Langfang) Fastening Systems Co., Ltd. (Stanley). The margin for 
Xi'an Metals & Minerals Import & Export Co., Ltd. (Xi'an Metals) 
remains unchanged as a result of the Court's final judgment.

DATES: Applicable June 19, 2018.

FOR FURTHER INFORMATION CONTACT: Matthew Renkey, 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) 482-2312.

SUPPLEMENTARY INFORMATION:

Background

    On April 8, 2015, Commerce issued the Final Results, in which it 
determined weighted-average dumping margins of 13.19 percent for 
Stanley and 72.52 percent Xi'an Metals.\1\ On September 6, 2017, the 
Court remanded to Commerce certain aspects of the Final Results, 
ordering Commerce to reconsider, in relevant part: (1) The potential 
double counting of certain labor costs by including line items such as 
``Salary & Bonus,'' ``Welfare,'' and ``Social Security and 
Compensation'' as selling, general, and administrative (SG&A) expenses 
in the surrogate financial ratios; \2\ and (2) the presence of a 
transcription error in Stanley's post-verification factors of 
production (FOP) database.\3\
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    \1\ See Certain Steel Nails from the People's Republic of China: 
Final Results of Antidumping Duty Administrative Review, 2012-2013, 
80 FR 18816 (April 8, 2015) and accompanying Issues and Decision 
Memorandum (Final Results).
    \2\ See Xi'an Metals & Minerals Import & Export Co., Ltd. v. 
United States, 256 F.Supp. 3d 1346, 1356 (CIT September 6, 2017) 
(Remand Order).
    \3\ Id., at 1359.
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    On December 21, 2017, Commerce filed the AR5 Remand Redetermination 
with the Court.\4\ Under respectful protest, Commerce recalculated the 
surrogate financial ratios by reclassifying certain labor-related line 
items from the selling, general, and administrative expenses numerator, 
to the materials, labor, and energy denominator of the financial 
ratios.\5\ Additionally, under respectful protest, Commerce corrected 
the transcription error present in Stanley's post-verification FOP 
database.\6\ As a result of these modifications, there were changes to 
the dumping margins assigned to both Xi'an Metals and Stanley. The 
resulting antidumping margins for Xi'an Metals and Stanley were 64.27 
percent and 8.04 percent, respectively.\7\
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    \4\ See Final Results of Redetermination Pursuant to Court 
Remand, Consol. Court No. 15-00109, Slip Op. 17-120 (CIT 2017), 
dated December 21, 2017 (AR5 Remand Redetermination), available at 
http://enforcement.trade.gov/remands/17-120.pdf.
    \5\ Id., at 7-14.
    \6\ Id., at 15-16.
    \7\ Id., at 19.
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    On June 19, 2018, the Court sustained the AR5 Remand 
Redetermination with respect to the correction of the transcription 
error in Stanley's FOP database.\8\ In addition, the Court vacated the 
remand order with respect to the issue of the calculation of the 
surrogate financial ratios, and reinstated this aspect of Commerce's 
Final Results.\9\ In light of the Court's Final Judgment, the dumping 
margin for Xi'an Metals is unchanged from its dumping margin assigned 
in the Final Results. Additionally, because the Court reinstated the 
Final Results with respect to the calculation of the surrogate 
financial ratios, for these amended final results, we recalculated 
Stanley's dumping margin to reflect only the correction of the 
transcription error in Stanley's FOP database.\10\
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    \8\ See Xi'an Metals & Minerals Import & Export Co., Ltd. v. 
United States, Consol. Court No. 15-00109, Slip Op. 18-70 (CIT June 
19, 2018) (Final Judgment) at 3.
    \9\ Id., at 2-3.
    \10\ See ``Amended Final Results for the Fifth Administrative 
Review of Certain Steel Nails from the People's Republic of China: 
Analysis Memorandum for Stanley,'' dated concurrently with this 
notice.

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[[Page 32632]]

Timken Notice

    In its decision in Timken, 893 F.2d at 341,\11\ as clarified by 
Diamond Sawblades,\12\ the Court of Appeals for the Federal Circuit 
(CAFC) held that, pursuant to section 516A(e) of the Tariff Act of 
1930, as amended (Act), Commerce must publish a notice of a court 
decision that is not ``in harmony'' with a Commerce determination and 
must suspend liquidation of entries pending a ``conclusive'' court 
decision. The Court's June 19, 2018, Final Judgment constitutes a final 
decision of the Court that is not in harmony with Commerce's Final 
Results. This notice is published in fulfillment of the publication 
requirement of Timken.
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    \11\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 
1990) (Timken).
    \12\ See Diamond Sawblades Mfrs. Coalition v. United States, 626 
F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
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Amended Final Results

    Because there is now a final court decision, Commerce is amending 
the Final Results with respect to Stanley. The revised weighted-average 
dumping margin for Stanley for the period August 1, 2012, through July 
31, 2013, is as follows:

------------------------------------------------------------------------
                                                            Weighted-
                        Exporter                          average margin
                                                            (percent)
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Stanley................................................           10.16
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    Commerce will continue the suspension of liquidation of the subject 
merchandise pending the expiration of the period of appeal or, if 
appealed, pending a final and conclusive court decision. In the event 
the Court's ruling is not appealed or, if appealed, upheld by the CAFC, 
Commerce will instruct U.S. Customs and Border Protection to assess 
antidumping duties on unliquidated entries of subject merchandise 
exported by Xi'an Metals and Stanley using the appropriate assessment 
rates.

Cash Deposit Requirements

    As stated in the AR5 Remand Redetermination, the cash deposit rate 
for Stanley has been superseded by cash deposit rates calculated in 
intervening administrative reviews of the antidumping duty order on 
certain steel nails from China.\13\ Thus, we will not alter Stanley's 
cash deposit rate.
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    \13\ See Certain Steel Nails from the People's Republic of 
China: Final Results of Antidumping Duty Administrative Review; 
2013-2014, 81 FR 14092 (March 16, 2016); Certain Steel Nails from 
the People's Republic of China: Final Results of Antidumping Duty 
Administrative Review, Final Determination of No Shipments and Final 
Partial Rescission; 2014-2015, 82 FR 14344 (March 20, 2017); and 
Certain Steel Nails from the People's Republic of China: Final 
Results of Antidumping Duty Administrative Review and Final 
Determination of No Shipments; 2015-2016, 83 FR 11683 (March 16, 
2018).
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Notification to Interested Parties

    This notice is issued and published in accordance with sections 
516A(e)(1), 751(a)(1), and 777(i)(1) of the Act.

    Dated: July 6, 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.
[FR Doc. 2018-15011 Filed 7-12-18; 8:45 am]
BILLING CODE 3510-DS-P