[Federal Register Volume 84, Number 53 (Tuesday, March 19, 2019)]
[Notices]
[Pages 10034-10040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05136]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-104, A-533-887, A-583-865, A-549-840]
Carbon and Alloy Steel Threaded Rod From India, Taiwan, Thailand,
and the People's Republic of China: Initiation of Less-Than-Fair-Value
Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable March 13, 2019.
FOR FURTHER INFORMATION CONTACT: Annathea Cook at (202) 482-0250
(India); Nicholas Czajkowskiat (202) 482-1395 (Taiwan); Kabir
Archuletta at (202) 482-2593 (Thailand); Andre Gziyran at (202) 482-
2201 (the People's Republic of China (China)); AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On February 21, 2019, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of carbon
and alloy steel threaded rod (steel threaded rod) from India, Taiwan,
Thailand, and China.\1\ The AD Petitions, as amended, were filed in
proper form by Vulcan Threaded Products Inc. (the petitioner).\2\ The
AD Petitions, as amended, were accompanied by countervailing duty (CVD)
petitions concerning imports of steel threaded rod from India and
China.
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\1\ See the Petitioner's Letter, ``Petitions for the Imposition
of Antidumping and Countervailing Duties: Carbon and Alloy Steel
Threaded Rod from the People's Republic of China, India, Taiwan, and
Thailand,'' dated February 21, 2019 (the AD Petitions).
\2\ See the Petitioner's Letter, ``Petitions for the Imposition
of Antidumping and Countervailing Duties: Carbon and Alloy Steel
Threaded Rod from the People's Republic of China, India, Taiwan, and
Thailand: Clarification of Petitioner's Name,'' dated March 1, 2019.
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On February 26, March 4, and March 6, 2019, Commerce requested
supplemental information pertaining to certain aspects of the AD
Petitions in separate supplemental questionnaires.\3\ Responses to the
supplemental questionnaires were filed on February 28, March 6, and
March 7, 2019.\4\
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\3\ See Commerce Letters, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Carbon and Alloy
Steel Threaded Rod from the People's Republic of China, India,
Taiwan, and Thailand: Supplemental Questions;'' ``Petition for the
Imposition of Antidumping Duties on Imports of Carbon and Alloy
Steel Threaded Rod from India: Supplemental Questions;'' ``Petition
for the Imposition of Antidumping Duties on Imports of Carbon and
Alloy Steel Threaded Rod from Taiwan: Supplemental Questions;''
``Petition for the Imposition of Antidumping Duties on Imports of
Carbon and Alloy Steel Threaded Rod from Thailand: Supplemental
Questions;'' and ``Petition for the Imposition of Antidumping Duties
on Imports of Carbon and Alloy Steel Threaded Rod from the People's
Republic of China: Supplemental Questions.'' All of these documents
are dated February 26, 2019. See also Commerce Letter, ``Petition
for the Imposition of Antidumping Duties on Imports of Carbon and
Alloy Steel Threaded Rod from Thailand: Second Supplemental
Questions,'' dated March 4, 2019. See also Commerce's Letter,
``Petition for the Imposition of Antidumping Duties on Imports of
Carbon and Alloy Steel Threaded Rod from Taiwan: Second Supplemental
Questions,'' dated March 4, 2019; and Memorandum, ``Phone Call with
Counsel to the Petitioner,'' dated March 6, 2019.
\4\ See the Petitioner's Letters, ``Carbon and Alloy Steel
Threaded Rod from India: Response to Questionnaire on Antidumping
Petition'' (India AD Supplement); ``Carbon and Alloy Steel Threaded
Rod from Taiwan: Response to Questionnaire on Antidumping Petition''
(Taiwan AD Supplement); ``Carbon and Alloy Steel Threaded Rod from
Thailand: Response to Questionnaire on Antidumping Petition''
(Thailand AD Supplement); and ``Carbon and Alloy Steel Threaded Rod
from the People's Republic of China: Response to Questionnaire on
Antidumping Petition'' (China AD Supplement). All of these documents
are dated February 28, 2019. See also the Petitioner's Letter,
``Carbon and Alloy Steel Threaded Rod from the People's Republic of
China, India, Taiwan, and Thailand: Response to General Issues
Questionnaire,'' dated February 28, 2019 (General Issues
Supplement); see also the Petitioner's Letter, ``Petition for the
Imposition of Antidumping Duties on Imports of Carbon and Alloy
Steel Threaded Rod from Taiwan: Responses to Second Supplemental
Questions,'' dated March 6, 2019 (Second Taiwan AD Supplement); the
Petitioner's Letter, ``Petition for the Imposition of Antidumping
Duties on Imports of Carbon and Alloy Steel Threaded Rod from
Taiwan: Responses to Third Supplemental Questions,'' dated March 7,
2019 (Third Taiwan AD Supplement); see also the Petitioner's Letter,
``Petition for the Imposition of Antidumping Duties on Imports of
Carbon and Alloy Steel Threaded Rod from Thailand: Responses to
Second Supplemental Questions,'' dated March 6, 2019 (Second
Thailand AD Supplement); see also ``Petition for the Imposition of
Antidumping Duties on Imports of Carbon and Alloy Steel Threaded Rod
from Thailand: Amended Calculations,'' dated March 7, 2019 (Third
Thailand AD Supplement).
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of steel
threaded rod from India, Taiwan, Thailand, and China are being, or are
likely to be, sold in the United States at less than fair value (LTFV)
within the meaning of section 731 of the Act, and that such imports are
materially injuring, or threatening material injury to, the domestic
industry producing steel threaded rod in the United States. Consistent
with section 732(b)(1) of the Act, the AD Petitions, as amended, are
accompanied by information reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner filed the AD Petitions, as
amended, on behalf of the domestic industry, because the petitioner is
an interested party, as defined in section 771(9)(C) of the Act.
Commerce also finds that the petitioner demonstrated sufficient
industry support with respect to the initiation of the requested AD
investigations.\5\
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\5\ See the AD Petitions at 2-3.
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Periods of Investigation
Because the AD Petitions, as amended, were filed on February 21,
2019, pursuant to 19 CFR 351.204(b)(1), the period of investigation
(POI) for the India, Taiwan, and Thailand investigations is January 1,
2018, through December 31, 2018. Because China is a non-market economy
(NME) country, pursuant to 19 CFR 351.204(b)(1), the POI for the China
investigation is July 1, 2018, through December 31, 2018.
[[Page 10035]]
Scope of the Investigations
The product covered by these investigations is steel threaded rod
from India, Taiwan, Thailand, and China. For a full description of the
scope of these investigations, see the Appendix to this notice.
Scope Comments
During our review of the AD Petitions, Commerce issued questions
to, and received responses from, the petitioner pertaining to the
proposed scope to ensure that the scope language in the AD Petitions,
as amended, would be an accurate reflection of the products for which
the domestic industry is seeking relief.\6\
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\6\ See General Issues Supplemental at 3-6.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (scope).\7\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determinations. If scope comments include factual information,\8\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit scope comments by 5:00 p.m. Eastern Time
(ET) on April 2, 2019, which is 20 calendar days from the signature
date of this notice. Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on April 12, 2019, which is
10 calendar days from the initial comment deadline.\9\
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\7\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\8\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\9\ See 19 CFR 351.303(b).
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Commerce requests that any factual information parties consider
relevant to the scope of the investigations be submitted during this
period. However, if a party subsequently finds that additional factual
information pertaining to the scope of the investigations may be
relevant, the party may contact Commerce and request permission to
submit the additional information. All such submissions must be filed
on the records of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\10\ An electronically
filed document must be received successfully in its entirety by the
time and date it is due. Documents exempted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230, and stamped with the date and time of receipt by the applicable
deadlines.
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\10\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/help.aspx and a
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of steel threaded rod to be
reported in response to Commerce's AD questionnaires. This information
will be used to identify the key physical characteristics of the
subject merchandise in order to report the relevant factors of
production (FOPs) accurately, as well as to develop appropriate
product-comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) General product
characteristics, and (2) product comparison criteria. We note that it
is not always appropriate to use all product characteristics as product
comparison criteria. We base product comparison criteria on meaningful
commercial differences among products. In other words, although there
may be some physical product characteristics utilized by manufacturers
to describe steel threaded rod, it may be that only a select few
product characteristics take into account commercially meaningful
physical characteristics. In addition, interested parties may comment
on the order in which the physical characteristics should be used in
matching products. Generally, Commerce attempts to list the most
important physical characteristics first and the least important
characteristics last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all product
characteristics comments must be filed by 5:00 p.m. ET on April 2,
2019, which is 20 calendar days from the signature date of this
notice.\11\ Any rebuttal comments must be filed by 5:00 p.m. ET on
April 12, 2019. All comments and submissions to Commerce must be filed
electronically using ACCESS, as explained above, on the record of each
of the AD investigations.
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\11\ See 19 CFR 351.303(b).
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Determination of Industry Support for the AD Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\12\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such
[[Page 10036]]
differences do not render the decision of either agency contrary to
law.\13\
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\12\ See section 771(10) of the Act.
\13\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the AD Petitions, as amended.\14\ Based on our analysis of the
information submitted on the record, we have determined that steel
threaded rod, as defined in the scope, constitutes a single domestic
like product, and we have analyzed industry support in terms of that
domestic like product.\15\
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\14\ See Volume I of the AD Petitions at 8-12.
\15\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Antidumping Duty Investigation Initiation Checklist: Carbon and
Alloy Steel Threaded Rod from the People's Republic of China (China
AD Initiation Checklist), at Attachment II, Analysis of Industry
Support for the Antidumping and Countervailing Duty Petitions
Covering Carbon and Alloy Steel Threaded Rod from the People's
Republic of China, India, Taiwan, and Thailand (Attachment II); see
also Antidumping Duty Investigation Initiation Checklist: Carbon and
Alloy Steel Threaded Rod from India (India AD Initiation Checklist),
at Attachment II; see also Antidumping Duty Investigation Initiation
Checklist: Carbon and Alloy Steel Threaded Rod from Taiwan (Taiwan
AD Initiation Checklist), at Attachment II; see also Antidumping
Duty Investigation Initiation Checklist: Carbon and Alloy Steel
Threaded Rod from Thailand (Thailand AD Initiation Checklist), at
Attachment II. These checklists are dated concurrently with, and
hereby adopted by, this notice and on file electronically via
ACCESS. Access to documents filed via ACCESS is also available in
the Central Records Unit, Room B8024 of the main Department of
Commerce building.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the AD Petitions, as amended, with reference to the
domestic like product as defined in the ``Scope of the
Investigations,'' in the Appendix to this notice. To establish industry
support, the petitioner provided its own production of the domestic
like product in 2018, as well as the 2018 production of Bay Standard
Manufacturing Inc. (Bay Standard), a U.S. producer of steel threaded
rod that supports the AD Petitions, as amended.\16\ The petitioner
compared the production of the supporters of the AD Petitions, as
amended, to the estimated total production of the domestic like product
for the entire domestic industry.\17\ We relied on data provided by the
petitioner and Bay Standard for purposes of measuring industry
support.\18\
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\16\ See Volume I of the Petitions, at Exhibit I-2; see also
Letter from Bay Standard, ``Carbon and Alloy Steel Threaded Rod from
the People's Republic of China, India, Taiwan, and Thailand: Support
for the Petitions,'' dated February 25, 2019 (Letter of Support), at
Attachment I.
\17\ See General Issues Supplement, at 6 and Exhibits 3 and 5.
\18\ Id. For further discussion, see China AD Initiation
Checklist at Attachment II; India AD Initiation Checklist at
Attachment II; Taiwan AD Initiation Checklist at Attachment II; and
Thailand AD Initiation Checklist, at Attachment II.
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Our review of the data provided in the AD Petitions, as amended,
the General Issues Supplement, the Letter of Support, and other
information readily available to Commerce indicates that the petitioner
has established industry support for the AD Petitions, as amended.\19\
First, the AD Petitions, as amended, established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\20\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
732(c)(4)(A)(i) of the Act, because the domestic producers (or workers)
who support the AD Petitions, as amended, account for at least 25
percent of the total production of the domestic like product.\21\
Finally, the domestic producers (or workers) have met the statutory
criteria for industry support under section 732(c)(4)(A)(ii) of the
Act, because the domestic producers (or workers) who support the AD
Petitions, as amended, account for more than 50 percent of the
production of the domestic like product produced by that portion of the
industry expressing support for, or opposition to, the AD Petitions, as
amended.\22\ Accordingly, Commerce determines that the AD Petitions, as
amended, were filed on behalf of the domestic industry within the
meaning of section 732(b)(1) of the Act.
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\19\ See China AD Initiation Checklist, at Attachment II; India
AD Initiation Checklist, at Attachment II; Taiwan AD Initiation
Checklist, at Attachment II; and Thailand AD Initiation Checklist,
at Attachment II.
\20\ See section 732(c)(4)(D) of the Act; see also China AD
Initiation Checklist, at Attachment II; India AD Initiation
Checklist, at Attachment II; Taiwan AD Initiation Checklist, at
Attachment II; and Thailand AD Initiation Checklist, at Attachment
II.
\21\ See China AD Initiation Checklist, at Attachment II; India
AD Initiation Checklist, at Attachment II; Taiwan AD Initiation
Checklist, at Attachment II; and Thailand AD Initiation Checklist,
at Attachment II.
\22\ Id.
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Commerce finds that the petitioner filed the AD Petitions, as
amended, on behalf of the domestic industry, because it is an
interested party, as defined in section 771(9)(C) of the Act, and it
has demonstrated sufficient industry support with respect to the AD
investigations that it is requesting that Commerce initiate.\23\
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\23\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleged that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at less than normal value (NV). In addition, the
petitioner alleges that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\24\ The
petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price suppression; decline in
the domestic industry's capacity utilization; the domestic industry's
lagging production and shipments; decline in the domestic industry's
financial performance; and lost sales and revenues.\25\ We have
assessed the allegations and supporting evidence regarding material
injury, threat of material injury, causation, as well as cumulation,
and we have determined that these allegations are properly supported by
adequate evidence, and meet the statutory requirements for
initiation.\26\
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\24\ See Volume I of the Petitions, at 18 and Exhibit I-14.
\25\ Id. at 15-35 and Exhibits I-3, I-4, I-10, I-11, I-13, I-14
and I-16 through I-20.
\26\ See China AD Initiation Checklist, at Attachment III,
Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Carbon and Alloy Steel Threaded Rod from the People's
Republic of China, India, Taiwan, and Thailand (Attachment III); see
also India AD Initiation Checklist, at Attachment III; Taiwan AD
Initiation Checklist, at Attachment III; and Thailand AD Initiation
Checklist, at Attachment III.
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Allegations of Sales at LTFV
The following is a description of the allegation of sales at LTFV
upon which Commerce based its decision to initiate AD investigations of
imports of steel threaded rod from India, Taiwan,
[[Page 10037]]
Thailand, and China. The sources of data for the deductions and
adjustments relating to U.S. price and normal value (NV) are discussed
in greater detail in the AD Initiation Checklist for each country.
Export Price
For India, Thailand, and China, the petitioner based the U.S. price
on export price (EP) using average unit values (AUVs) of publicly
available import data.\27\ For Taiwan, the petitioner based U.S. price
on pricing information for steel threaded rod produced in, and exported
from, Taiwan and offered for sale in the United States.\28\ Where
applicable, the petitioner made deductions from U.S. price for movement
and other expenses, consistent with the terms of sale.\29\
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\27\ See India AD Initiation Checklist, China AD Initiation
Checklist; Thailand AD Initiation Checklist.
\28\ See Taiwan AD Initiation Checklist.
\29\ See India AD Initiation Checklist, China AD Initiation
Checklist; Taiwan AD Initiation Checklist; and Thailand AD
Initiation Checklist
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Normal Value
For India, the petitioner based NV on home market prices obtained
through market research for steel threaded rod produced in and sold, or
offered for sale, in India within the POI.
For Taiwan and Thailand, the petitioner was unable to obtain
information relating to the prices charged for steel threaded rod
produced and sold in the respective home markets or third country
prices; accordingly, the petitioner based NV on constructed value
(CV).\30\ For further discussion of CV, see the section ``Normal Value
Based on Constructed Value'' below.\31\
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\30\ See Taiwan AD Initiation Checklist and Thailand AD
Initiation Checklist.
\31\ In accordance with section 505(a) of the Trade Preferences
Extension Act of 2015, amending section 773(b)(2) of the Act, for
this investigation, Commerce will request information necessary to
calculate the CV and cost of production (COP) to determine whether
there are reasonable grounds to believe or suspect that sales of the
foreign like product have been made at prices that represent less
than the COP of the product. Commerce no longer requires a COP
allegation to conduct this analysis.
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With respect to China, Commerce considers China to be an NME
country.\32\ In accordance with section 771(18)(C)(i) of the Act, the
presumption of NME status remains in effect until revoked by Commerce.
Therefore, we continue to treat China as an NME for purposes of the
initiation of this investigation. Accordingly, NV in China is
appropriately based on FOPs valued in a surrogate market economy
country, in accordance with section 773(c) of the Act.\33\
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\32\ See Antidumping Duty Investigation of Certain Aluminum Foil
from the People's Republic of China: Affirmative Preliminary
Determination of Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and
accompanying decision memorandum, China's Status as a Non-Market
Economy, unchanged in Certain Aluminum Foil from the People's
Republic of China: Final Determination of Sales at Less Than Fair
Value, 83 FR 9282 (March 5, 2018).
\33\ See China AD Initiation Checklist.
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The petitioner claims that Mexico is an appropriate surrogate
country for China, because it is a market economy country that is at a
level of economic development comparable to that of China, it is a
significant producer of comparable merchandise, and public information
from Mexico is available to value all material input factors.\34\ Based
on the information provided by the petitioner, we determine that it is
appropriate to use Mexico as a surrogate country for initiation
purposes.
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\34\ See Volume II of the Petition at 2-4.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
Factors of Production
Because information regarding the volume of inputs consumed by the
Chinese producers/exporters is not available, the petitioner relied on
its own production experience as an estimate of Chinese manufacturers'
FOPs.\35\ The petitioner valued the estimated FOPs using surrogate
values from Mexico and used the average POI exchange rate to convert
the data to U.S. dollars.\36\
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\35\ See China AD Initiation Checklist.
\36\ Id.
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Normal Value Based on Constructed Value
As noted above, the petitioner was unable to obtain information
relating to the prices charged for steel threaded rod produced in
Taiwan and Thailand, or third country prices; accordingly, the
petitioner based NV on CV.\37\ Pursuant to section 773(e) of the Act,
CV consists of the cost of manufacturing (COM), selling, general, and
administrative (SG&A) expenses, financial expenses, packing expenses,
and profit. For Taiwan and Thailand, the petitioner calculated the COM
based on the input factors of production and its own usage rates. The
input factors of production were valued using publicly available data
on costs specific to Taiwan and Thailand, during the proposed POI.\38\
Specifically, the prices for raw materials, reclaimed steel scrap, and
packing inputs were valued using publicly available import and domestic
price data for Taiwan and Thailand.\39\ Labor and energy costs were
valued using publicly available sources for Taiwan and Thailand.\40\
The petitioner calculated factory overhead, SG&A expenses, financial
expenses, and profit for Taiwan and Thailand based on the ratios found
in the experience of a producer of identical or comparable merchandise
from each of these countries.\41\
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\37\ See Taiwan AD Initiation Checklist and Thailand AD
Initiation Checklist.
\38\ Id.
\39\ Id.
\40\ Id.
\41\ Id.
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Fair Value Comparisons
Based on the data provided by the AD Petitions, as amended, there
is reason to believe that imports of steel threaded rod from India,
Taiwan, Thailand, and China are being, or are likely to be, sold in the
United States at LTFV. Based on comparisons of EP to NV in accordance
with sections 772 and 773 of the Act, the estimated dumping margins for
steel threaded rod for each of the countries covered by this initiation
are as follows: (1) India--25.43 and 28.34 percent; \42\ (2) Taiwan--
32.26 percent; \43\ (3) Thailand--20.83 percent; \44\ and (4) China--
57.36 and 59.45 percent.\45\
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\42\ See India AD Initiation Checklist.
\43\ See Taiwan AD Initiation Checklist.
\44\ See Thailand AD Initiation Checklist.
\45\ See China AD Initiation Checklist.
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Initiation of LTFV Investigations
Based upon the examination of the AD Petitions, as amended, and
supplemental responses, we find that the AD Petitions, as amended, meet
the requirements of section 732 of the Act. Therefore, we are
initiating AD investigations to determine whether imports of steel
threaded rod from India, Taiwan, Thailand, and China are being, or are
likely to be, sold in the United States at LTFV. In accordance with
section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our preliminary determinations no later than
140 days after the date of this initiation.
[[Page 10038]]
Respondent Selection
The petitioner named 32 companies in India,\46\ 25 companies in
Taiwan,\47\ and five companies in Thailand,\48\ as producers/exporters
of steel threaded rod. Following standard practice in AD investigations
involving market economy countries, in the event Commerce determines
that the number of companies is large and it cannot individually
examine each company based upon Commerce's resources, where
appropriate, Commerce intends to select respondents in India, Taiwan,
and Thailand based on U.S. Customs and Border Protection (CBP) data for
U.S. imports under the appropriate Harmonized Tariff Schedule of the
United States (HTSUS) numbers listed with the scope in the Appendix,
below.\49\
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\46\ See Volume I of the Petitions, at Exhibit I-13.
\47\ Id.
\48\ Id.
\49\ See, e.g., Polyester Textured Yarn from India and the
People's Republic of China: Initiation of Less-Than-Fair-Value
Investigations, 83 FR 58223, 58227 (November 19, 2018).
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The petitioner named 446 producers/exporters of steel threaded rod
in China.\50\ In AD investigations involving NME countries, Commerce
selects respondents based on quantity and value (Q&V) questionnaires in
cases where it has determined that the number of companies is large and
it cannot individually examine each company based upon its resources.
After considering the large number of producers and exporters
identified in the China AD Petition, and considering the resources that
must be used by Commerce to mail Q&V questionnaires to all of these
companies, Commerce has determined that we do not have sufficient
administrative resources to mail Q&V questionnaires to all 446
identified producers and exporters. Therefore, Commerce has determined
to limit the number of Q&V questionnaires it will send out to exporters
and producers based on CBP data for imports during the POI under the
appropriate HTSUS numbers listed with the scope in the Appendix, below.
Accordingly, Commerce will send Q&V questionnaires to the largest
producers and exporters that are identified in the CBP data for which
there is address information on the record.
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\50\ See Volume I of the Petitions, at Exhibit I-13.
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On March 11, 2019, Commerce released CBP data on imports of steel
threaded rod from India, Taiwan, Thailand, and China under APO to all
parties with access to information protected by APO and indicated that
interested parties wishing to comment on the CBP data must do so within
three business days of the publication date of the notice of initiation
of these investigations.\51\ We further stated that we will not accept
rebuttal comments.
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\51\ See Memoranda, ``Carbon and Alloy Steel Threaded Rod from
India: U.S. Customs and Border Protection Data for Respondent
Selection Purposes;'' ``Carbon and Alloy Steel Threaded Rod from
Thailand: U.S. Customs and Border Protection Data for Respondent
Selection Purposes;'' ``Carbon and Alloy Steel Threaded Rod from
Taiwan: U.S. Customs and Border Protection Data for Respondent
Selection Purposes;'' and ``Carbon and Alloy Steel Threaded Rod from
the People's Republic of China: U.S. Customs and Border Protection
Data for Respondent Selection Purposes,'' dated March 11, 2019.
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In addition, Commerce will post the Q&V questionnaire along with
filing instructions on the Enforcement and Compliance website at http://www.trade.gov/enforcement/news.asp. In accordance with our standard
practice for respondent selection in AD cases involving NME countries,
we intend to base respondent selection on the responses to the Q&V
questionnaire that we receive.
Producers/exporters of steel threaded rod from China that do not
receive Q&V questionnaires by mail may still submit a response to the
Q&V questionnaire and can obtain a copy of the Q&V questionnaire from
Enforcement & Compliance's website. The Q&V response must be submitted
by the relevant Chinese exporters/producers no later than 5:00 p.m. ET
on March 27, 2019. All Q&V responses must be filed electronically via
ACCESS.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
exporters and producers must submit a separate-rate application.\52\
The specific requirements for submitting a separate-rate application in
the China investigation are outlined in detail in the application
itself, which is available on Commerce's website at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate
application will be due 30 days after publication of this initiation
notice.\53\ Exporters and producers who submit a separate-rate
application and are selected as mandatory respondents will be eligible
for consideration for separate-rate status only if they respond to all
parts of Commerce's AD questionnaire as mandatory respondents. Commerce
requires that companies from China submit a response to both the Q&V
questionnaire and the separate-rate application by the respective
deadlines in order to receive consideration for separate-rate status.
Companies not filing a timely Q&V response will not receive separate-
rate consideration.
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\52\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving Non-Market Economy Countries (April 5, 2005), available at
http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin
05.1).
\53\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that the Department will
now assign in its NME Investigation will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the weighted-average of the individually calculated rates.
This practice is referred to as the application of ``combination
rates'' because such rates apply to specific combinations of
exporters and one or more producers. The cash-deposit rate assigned
to an exporter will apply only to merchandise both exported by the
firm in question and produced by a firm that supplied the exporter
during the period of investigation.\54\
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\54\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the AD Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the AD Petitions, as
amended, have been provided to the governments of India, Taiwan,
Thailand, and China via ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the AD Petitions, as
amended, to each exporter named in the AD Petitions, as amended, as
provided under 19 CFR 351.203(c)(2).
ITC Notification
We will notify the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the AD Petitions, as amended, were filed, whether there is a
reasonable indication that imports of steel threaded rod from India,
Taiwan, Thailand, and/or China are materially injuring, or
[[Page 10039]]
threatening material injury to, a U.S. industry.\55\ A negative ITC
determination for any country will result in the investigation being
terminated with respect to that country.\56\ Otherwise, the
investigations will proceed according to statutory and regulatory time
limits.
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\55\ See section 733(a) of the Act.
\56\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \57\ and, if the information is submitted to rebut,
clarify, or correct factual information already on the record, to
provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct.\58\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in these investigations.
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\57\ See 19 CFR 351.301(b).
\58\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation
Section 504 of the Trade Preferences Extension Act of 2015 amended
the Act by adding the concept of particular market situation (PMS) for
purposes of CV under section 773(e) of the Act.\59\ Section 773(e) of
the Act states that ``if a particular market situation exists such that
the cost of materials and fabrication or other processing of any kind
does not accurately reflect the cost of production in the ordinary
course of trade, the administering authority may use another
calculation methodology under this subtitle or any other calculation
methodology.'' When an interested party submits a PMS allegation
pursuant to section 773(e) of the Act, Commerce will respond to such a
submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds
that a PMS exists under section 773(e) of the Act, then it will modify
its dumping calculations appropriately.
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\59\ See Trade Preferences Extension Act of 2015, Public Law
114-27, 129 Stat. 362 (2015).
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Neither section 773(e) of the Act nor 19 CFR 351.301(c)(2)(v) set a
deadline for the submission of PMS allegations and supporting factual
information. However, in order to administer section 773(e) of the Act,
Commerce must receive PMS allegations and supporting factual
information with enough time to consider the submission. Thus, should
an interested party wish to submit a PMS allegation and supporting new
factual information pursuant to section 773(e) of the Act, it must do
so no later than 20 days after submission of a respondent's initial
section D questionnaire response.
Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351.301. For submissions that are
due from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, we will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, stand-alone submission; under limited circumstances we will
grant untimely-filed requests for the extension of time limits. Parties
should review Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information
in these investigations.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\60\
Parties must use the certification formats provided in 19 CFR
351.303(g).\61\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\60\ See section 782(b) of the Act.
\61\ See also Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to
frequently asked questions regarding the Final Rule are available at
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce
published Antidumping and Countervailing Duty Proceedings: Documents
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008).
Parties wishing to participate in these investigations should ensure
that they meet the requirements of these procedures (e.g., the filing
of letters of appearance as discussed at 19 CFR 351.103(d)).
This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: March 13, 2019.
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
Scope of the Investigations
The merchandise covered by the scope of these investigations is
carbon and alloy steel threaded rod. Steel threaded rod is certain
threaded rod, bar, or studs, of carbon or alloy steel, having a
solid, circular cross section of any diameter, in any straight
length. Steel threaded rod is normally drawn, cold-rolled, threaded,
and straightened, or it may be hot-rolled. In addition, the steel
threaded rod, bar, or studs subject to these investigations are non-
headed and threaded along greater than 25 percent of their total
actual length. A variety of finishes or coatings, such as plain oil
finish as a temporary rust protectant, zinc coating (i.e.,
galvanized, whether by electroplating or hot-dipping), paint, and
other similar finishes and coatings, may be applied to the
merchandise.
Steel threaded rod is normally produced to American Society for
Testing and Materials (ASTM) specifications ASTM A36, ASTM A193 B7/
B7m, ASTM A193 B16, ASTM A307, ASTM A329 L7/L7M, ASTM A320 L43, ASTM
A354 BC and BD, ASTM A449, ASTM F1554-36, ASTM F1554-55, ASTM F1554
Grade 105, American Society of Mechanical Engineers (ASME)
specification ASME B18.31.3, and American Petroleum Institute (API)
specification API 20E. All steel threaded rod meeting the physical
description set forth above is covered by the scope of these
investigations, whether or not produced according to a particular
standard.
Subject merchandise includes material matching the above
description that has been
[[Page 10040]]
finished, assembled, or packaged in a third country, including by
cutting, chamfering, coating, or painting the threaded rod, by
attaching the threaded rod to, or packaging it with, another
product, or any other finishing, assembly, or packaging operation
that would not otherwise remove the merchandise from the scope of
the investigations if performed in the country of manufacture of the
threaded rod.
Carbon and alloy steel threaded rod are also included in the
scope of these investigations whether or not imported attached to,
or in conjunction with, other parts and accessories such as nuts and
washers. If carbon and alloy steel threaded rod are imported
attached to, or in conjunction with, such non-subject merchandise,
only the threaded rod is included in the scope.
Excluded from the scope of these investigations are: (1)
Threaded rod, bar, or studs which are threaded only on one or both
ends and the threading covers 25 percent or less of the total actual
length; and (2) stainless steel threaded rod, defined as steel
threaded rod containing, by weight, 1.2 percent or less of carbon
and 10.5 percent or more of chromium, with our without other
elements.
Excluded from the scope of the antidumping investigation on
steel threaded rod from the People's Republic of China is any
merchandise covered by the existing antidumping order on Certain
Steel Threaded Rod from the People's Republic of China. See Certain
Steel Threaded Rod from the People's Republic of China: Notice of
Antidumping Duty Order, 74 FR 17154 (April 14, 2009).
Steel threaded rod is currently classifiable under subheadings
7318.15.5051, 7318.15.5056, and 7318.15.5090 of the Harmonized
Tariff Schedule of the United States (HTSUS). Subject merchandise
may also enter under subheading 7318.15.2095 and 7318.19.0000 of the
HTSUS. The HTSUS subheadings are provided for convenience and U.S.
Customs purposes only. The written description of the scope is
dispositive.
[FR Doc. 2019-05136 Filed 3-18-19; 8:45 am]
BILLING CODE 3510-DS-P