[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