[Federal Register Volume 84, Number 128 (Wednesday, July 3, 2019)]
[Notices]
[Pages 31833-31839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14234]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-112, A-580-901, A-583-866]
Certain Collated Steel Staples From the People's Republic of
China, the Republic of Korea, and Taiwan: Initiation of Less-Than-Fair-
Value Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable June 26, 2019.
FOR FURTHER INFORMATION CONTACT: Thomas Martin at (202) 482-4406
(Republic of Korea (Korea)); Maisha Cryor (202) 482-5831 (Taiwan);
Sergio Balbontin at (202) 482-6478 (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 June 6, 2019, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of certain
collated steel staples (collated staples) from
[[Page 31834]]
China, Korea, and Taiwan.\1\ The AD Petitions were filed in proper form
by Kyocera Senco Industrial Tools, Inc. (the petitioner). The AD
Petitions were accompanied by a countervailing duty (CVD) petition
concerning imports of collated staples from China.\2\
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\1\ See the Petitioner's Letter, ``Petitions for the Imposition
of Antidumping and Countervailing Duties: Certain Collated Steel
Staples from Korea, the People's Republic of China, and Taiwan,''
dated June 6, 2019 (Petitions).
\2\ Id.
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On June 11 and June 17, 2019, Commerce requested supplemental
information pertaining to certain aspects of the Petitions.\3\ The
petitioner filed responses to these requests between June 13 and June
19, 2019.\4\
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\3\ See Commerce's Letters, ``Petition for the Imposition of
Antidumping Duties on Imports of Certain Collated Steel Staples from
the People's Republic of China: Supplemental Questions;''
``Petitions for the Imposition of Antidumping Duties on Imports of
Certain Collated Steel Staples from the People's Republic of China,
the Republic of Korea, and Taiwan and Countervailing Duties on
Imports of Certain Collated Steel Staples from the People's Republic
of China: Supplemental Questions (General Issues Supplemental
Questionnaire);'' ``Petition for the Imposition of Antidumping
Duties on Imports of Certain Collated Steel Staples from Korea:
Supplemental Questions;'' and ``Petition for the Imposition of
Antidumping Duties on Imports of Certain Collated Steel Staples from
Taiwan: Supplemental Questions;'' all dated June 11, 2019; see also
Memoranda, ``Petition for the Imposition of Antidumping Duties on
Imports of Certain Collated Steel Staples from the People's Republic
of China: Phone Call with the Petitioner;'' ``Petitions for the
Imposition of Antidumping and Countervailing Duties on Imports of
Certain Collated Steel Staples from Korea, the People's Republic of
China, and Taiwan: Phone Call with Counsel to the Petitioner
(General Issues Second Supplemental Questionnaire);'' ``Petition for
the Imposition of Antidumping Duties on Imports of Certain Collated
Steel Staples from Korea: Phone Call with Counsel to the
Petitioner;'' and ``Petition for the Imposition of Antidumping
Duties on Imports of Certain Collated Steel Staples from Taiwan:
Phone Call with Counsel to the Petitioner;'' all dated June 17,
2019.
\4\ See the Petitioner's Letters, ``Certain Collated Steel
Staples from Korea, the People's Republic of China, and Taiwan:
Petition Supplement--General and Injury'' (General Issues
Supplement); and ``Certain Collated Steel Staples from Taiwan:
Petition Supplement,'' both dated June 13, 2019; see also the
Petitioner's Letters, ``Certain Collated Steel Staples from China:
Petition Supplement,'' and ``Certain Collated Steel Staples from
Korea: Petition Supplement,'' both dated June 14, 2019; and
``Certain Collated Steel Staples from Korea, the People's Republic
of China, and Taiwan: Petition Supplement--General Issues'' (Second
General Issues Supplement); ``Certain Collated Steel Staples from
Korea: Petition Supplement;'' ``Certain Collated Steel Staples from
Taiwan: Petition Supplement;'' and ``Certain Collated Steel Staples
from China: Petition Supplement,'' all dated June 19, 2019.
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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 collated
staples from China, Taiwan, and Korea 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 collated staples in the United States. Consistent with
section 732(b)(1) of the Act, the AD Petitions are accompanied by
information reasonably available to the petitioner supporting its
allegations.
Commerce finds that the petitioner filed these Petitions 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 Volume I of the AD Petitions, at 2-3.
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Periods of Investigation
Because the AD Petitions were filed on June 6, 2019, pursuant to 19
CFR 351.204(b)(1), the period of investigation (POI) for the Taiwan and
Korea investigations is April 1, 2018 through March 31, 2019. Because
China is a non-market economy (NME) country, pursuant to 19 CFR
351.204(b)(1), the POI for the China investigation is October 1, 2018
through March 31, 2019.
Scope of the Investigations
The product covered by these investigations consists of collated
staples from China, Korea, and Taiwan. For a full description of the
scope of these investigations, see the Appendix to this notice.
Comments on Scope of the Investigations
During our review of the Petitions, Commerce issued questions to,
and received responses from, the petitioner pertaining to the proposed
scope to ensure that the scope language in the Petitions is an accurate
reflection of the products for which the domestic industry is seeking
relief.\6\ As a result of these exchanges, the scope of the Petitions
was modified to clarify the description of the merchandise covered by
the Petitions. The description of the merchandise covered by these
initiations, as described in the Appendix to this notice, reflects
these clarifications.
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\6\ See General Issues Supplement, at 4-7 and exhibit 3; see
also Second General Issues Supplement, at 2.
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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 July 16, 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 July 26, 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) (Preamble).
\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
[[Page 31835]]
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 collated staples 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 collated staples, 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 July 16,
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 July
26, 2019.\12\ 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).
\12\ Id.
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Determination of Industry Support for the 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 Act 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,\13\ 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 differences do not
render the decision of either agency contrary to law.\14\
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\13\ See section 771(10) of the Act.
\14\ See, e.g., 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 Petitions.\15\ Based on our analysis of the information
submitted on the record, we have determined that collated staples, as
defined in the scope, constitute a single domestic like product, and we
have analyzed industry support in terms of that domestic like
product.\16\
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\15\ See Volume I of the Petitions, at 9-13 and Exhibit IN-4;
see also General Issues Supplement, at 4 and Exhibit 1.
\16\ 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: Certain
Collated Steel Staples 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 Certain Collated Steel Staples from the People's Republic
of China, the Republic of Korea, and Taiwan (Attachment II);
Antidumping Duty Investigation Initiation Checklist: Certain
Collated Steel Staples from the Republic of Korea (Korea AD
Initiation Checklist), at Attachment II; and Antidumping Duty
Investigation Initiation Checklist: Certain Collated Steel Staples
from Taiwan (Taiwan AD Initiation Checklist), at Attachment II.
These checklists are dated concurrently with this notice and are on
file electronically via ACCESS. Access to documents filed via ACCESS
is also available in the Central Records Unit, Room B8024 of the
main 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 Petitions 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 2018 production of the domestic like product and compared this to
the estimated total production of the domestic like product for the
entire domestic industry.\17\ We relied on data provided by the
petitioner for purposes of measuring industry support.\18\
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\17\ See Volume I of the AD Petitions, at 3 and Exhibit GEN-1;
see also General Issues Supplement, at 7 and Exhibit 5; and Second
General Issues Supplement, at Exhibit 1.
\18\ See Volume I of the AD Petitions, at 3 and Exhibit GEN-1;
see also China AD Initiation Checklist, at Attachment II; Korea AD
Initiation Checklist, at Attachment II; and Taiwan AD Initiation
Checklist, at Attachment II.
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Our review of the data provided in the Petitions, the General
Issues Supplement, the Second General Issues Supplement, and other
information readily available to Commerce indicates that the petitioner
has established industry support for the Petitions.\19\ First, the
Petitions 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
[[Page 31836]]
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 Petitions 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 Petitions
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 Petitions.\22\ Accordingly, Commerce
determines that the Petitions 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; see
also Korea AD Initiation Checklist, at Attachment II; and Taiwan 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; Korea AD Initiation
Checklist, at Attachment II; and Taiwan AD Initiation Checklist, at
Attachment II.
\21\ See China AD Initiation Checklist, at Attachment II; see
also Korea AD Initiation Checklist, at Attachment II; and Taiwan AD
Initiation Checklist, at Attachment II.
\22\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges 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 LTFV. In addition, the petitioner alleges that
subject imports from China exceed the negligibility threshold provided
for under section 771(24)(A) of the Act.\23\
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\23\ See Volume I of the AD Petitions, at 23 and Exhibits GEN-4
and IN-15.
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With respect to Korea and Taiwan, while the allegedly dumped
imports from Korea and Taiwan do not exceed the statutory requirements
for negligibility,\24\ the petitioner alleges and provides supporting
evidence that: (1) There is a reasonable indication that data obtained
in the ITC's investigation will establish that imports exceed the
negligibility threshold,\25\ and (2) there is the potential that
imports from Korea and Taiwan will imminently exceed the negligibility
threshold and, therefore, are not negligible for purposes of a threat
determination.\26\ The petitioner's arguments regarding the limitations
of publicly available import data and the collection of scope-specific
import data in the ITC's investigations are consistent with the SAA.
Furthermore, the petitioner's arguments regarding the potential for
imports from Korea and Taiwan to imminently exceed the negligibility
threshold are consistent with the statutory criteria for
``negligibility in threat analysis'' under section 771(24)(A)(iv) of
the Act, which provides that imports shall not be treated as negligible
if there is a potential that subject imports from a country will
imminently exceed the statutory requirements for negligibility.
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\24\ Id.
\25\ See Statement of Administrative Action (SAA), H.R. Doc. No.
103-316, Vol. 1, (1994) (SAA), at 857; see also Volume I of the AD
Petitions, at 23-24.
\26\ See SAA at 856; see also Volume I of the AD Petitions, at
23-26 and Exhibits GEN-4, IN-15 and IN-18.
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The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; lost sales and revenue; underselling and price
depression or suppression; and low capacity utilization rates and
declining shipments, production, and profitability.\27\ We have
assessed the allegations and supporting evidence regarding material
injury, threat of material injury, causation, cumulation, as well as
negligibility, and we have determined that these allegations are
properly supported by adequate evidence, and meet the statutory
requirements for initiation.\28\
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\27\ See Volume I of the AD Petitions, at 9, 16-35 and Exhibits
GEN-4, IN-1 through IN-7, IN-9 through IN-18, and IN-19; see also
General Issues Supplement, at 4, 8-11 and Exhibit 1.
\28\ 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 Certain Collated Steel Staples from the People's Republic
of China, the Republic of Korea, and Taiwan (Attachment III); see
also Korea AD Initiation Checklist, at Attachment III; and Taiwan AD
Initiation Checklist, at Attachment III.
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Allegations of Sales at LTFV
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate AD investigations of
imports of collated staples from China, Korea, and Taiwan. 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 (EP)
For China and Korea, the petitioner based the U.S. price on quoted
offer prices for sales of collated staples produced in and exported
from China and Korea and sold, or offered for sale, to customers in the
United States through a U.S. distributor.\29\ Where applicable, the
petitioner made deductions from U.S. price for distributor markup,
movement and other expenses, consistent with the terms of sale.\30\
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\29\ See China AD Initiation Checklist; see also Korean AD
Initiation Checklist.
\30\ See China AD Initiation Checklist; see also Korea AD
Initiation Checklist
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Constructed Export Price (CEP)
For Taiwan, because the petitioner had reason to believe the sale
reflected a transaction from a Taiwanese producer/exporter to an
unrelated customer in the United States after importation, the
petitioner based CEP on a sale of collated staples produced in, and
exported from, Taiwan and sold to an unaffiliated U.S. distributor for
sale in the United States.\31\ The petitioner made deductions from U.S.
price for movement and other expenses, consistent with the terms of
sale.\32\
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\31\ See Taiwan AD Initiation Checklist.
\32\ Id.
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Normal Value
For Korea, the petitioner based NV on home market prices obtained
through market research for collated staples produced in and sold, or
offered for sale, in Korea within the POI.\33\
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\33\ See Korea AD Initiation Checklist.
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For Taiwan, the petitioner was unable to obtain information
relating to the prices charged for collated staples produced and sold
in the home market or in third countries; accordingly, the petitioner
based NV on constructed value (CV).\34\ For further discussion of CV,
see the section ``Normal Value Based on Constructed Value.'' \35\
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\34\ See Taiwan AD Initiation Checklist.
\35\ 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.\36\ 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
[[Page 31837]]
valued in a surrogate market economy country, in accordance with
section 773(c) of the Act.\37\
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\36\ See, e.g., 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).
\37\ 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.\38\ 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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\38\ See Volume II of the AD Petitions at 2-6.
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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.
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.\39\ 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.\40\
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\39\ See China AD Initiation Checklist.
\40\ Id.
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Normal Value Based on Constructed Value
The petitioner was unable to obtain information relating to the
prices charged for collated staples produced in Taiwan, or third
country prices; accordingly, the petitioner based NV on CV.\41\
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,
the petitioner calculated the COM by first identifying and calculating
the amount (i.e., consumption rate) of each production input based on
staples production at its own manufacturing facilities.\42\ The
petitioner based the input FOPs on the quantity of inputs needed to
produce one net short ton of the same merchandise. The input FOPs were
valued using publicly available data on costs specific to Taiwan,
during the proposed POI.\43\ Specifically, the prices for raw
materials, scrap offsets, and packing inputs were valued using publicly
available import data for Taiwan.\44\ Labor and energy (i.e.,
electricity, natural gas) costs were valued using publicly available
sources for Taiwan.\45\ The petitioner calculated factory overhead,
SG&A expenses, financial expenses, and profit for Taiwan based on the
ratios found in the experience of a Taiwanese producer of identical or
comparable merchandise.\46\
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\41\ See Taiwan AD Initiation Checklist.
\42\ Id.
\43\ Id.
\44\ Id.
\45\ Id.
\46\ Id.
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Fair Value Comparisons
Based on the data provided by the AD Petitions, there is reason to
believe that imports of collated staples from China, Korea and Taiwan
are being, or are likely to be, sold in the United States at LTFV.
Based on comparisons of EP, or CEP, to NV in accordance with sections
772 and 773 of the Act, the estimated dumping margins for collated
staples for each of the countries covered by this initiation are as
follows: (1) China--119.37 and 122.55 percent; \47\ (2) Taiwan--47.60
percent; \48\ and (3) Korea--10.23 to 14.25 percent.\49\
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\47\ See China AD Initiation Checklist.
\48\ See Taiwan AD Initiation Checklist.
\49\ See Korea AD Initiation Checklist.
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Initiation of LTFV Investigations
Based upon the examination of the AD Petitions and supplements to
the AD Petitions, we find that the AD Petitions meet the requirements
of section 732 of the Act. Therefore, we are initiating AD
investigations to determine whether imports of collated staples from
China, Korea and Taiwan 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.
Respondent Selection
The petitioner named 29 companies in Taiwan \50\ and 15 companies
in Korea \51\ as producers/exporters of collated staples. 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 Taiwan and Korea 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) number listed in the
Appendix.\52\
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\50\ See Volume I of the AD Petitions, at Exhibit GEN-2.
\51\ Id.
\52\ 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 99 producers/exporters of collated staples in
China.\53\ In accordance with our standard practice for respondent
selection in AD cases involving NME countries, we intend to issue
quantity and value (Q&V) questionnaires to producers/exporters of
merchandise subject to the investigation. For this investigation,
Commerce will request Q&V information from known exporters and
producers identified in the Petition with complete contact information.
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.
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\53\ See Volume I of the AD Petitions, at Exhibit Gen-2.
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Producers/exporters of collated staples 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 July 11, 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.\54\
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
[[Page 31838]]
notice.\55\ 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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\54\ 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).
\55\ 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.\56\
\56\ 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 have been
provided to the governments of China, Korea, and Taiwan via ACCESS. To
the extent practicable, we will attempt to provide a copy of the public
version of the AD Petitions to each exporter named in the AD Petitions
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 were filed, whether there is a reasonable
indication that imports of collated staples from China, Korea, and/or
Taiwan are materially injuring, or threatening material injury to, a
U.S. industry.\57\ A negative ITC determination for any country will
result in the investigation being terminated with respect to that
country.\58\ Otherwise, the investigations will proceed according to
statutory and regulatory time limits.
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\57\ See section 733(a) of the Act.
\58\ 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 \59\ 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.\60\ 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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\59\ See 19 CFR 351.301(b).
\60\ 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.\61\ Section 773(e) of
the Act states that ``{I{time} f 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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\61\ 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 initial section D
questionnaire responses.
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
[[Page 31839]]
and completeness of that information.\62\ Parties must use the
certification formats provided in 19 CFR 351.303(g).\63\ Commerce
intends to reject factual submissions if the submitting party does not
comply with the applicable certification requirements.
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\62\ See section 782(b) of the Act.
\63\ 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: June 26, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigations
The merchandise covered by the scope of these investigations is
certain collated steel staples. Certain collated steel staples
subject to these investigations are made from steel wire having a
nominal diameter from 0.0355 inch to 0.0830 inch, inclusive, and
have a nominal leg length from 0.25 inch to 3.0 inches, inclusive,
and a nominal crown width from 0.187 inch to 1.125 inch, inclusive.
Certain collated steel staples may be manufactured from any type
of steel, and are included in the scope of the investigations
regardless of whether they are uncoated or coated, and regardless of
the type or number of coatings, including but not limited to
coatings to inhibit corrosion.
Certain collated steel staples may be collated using any
material or combination of materials, including but not limited to
adhesive, glue, and adhesive film or adhesive or paper tape.
Certain collated steel staples are generally made to American
Society for Testing and Materials (ASTM) specification ASTM F1667-
18a, but can also be made to other specifications.
Excluded from the scope of these investigations are any carton-
closing staples covered by the scope of the existing antidumping
duty order on Carton-Closing Staples from the People's Republic of
China. See Carton-Closing Staples From the People's Republic of
China: Antidumping Duty Order, 83 FR 20792 (May 8, 2018).
Certain collated steel staples subject to these investigations
are currently classifiable under subheading 8305.20.0000 of the
Harmonized Tariff Schedule of the United States (HTSUS).
While the HTSUS subheading and ASTM specification are provided
for convenience and for customs purposes, the written description of
the subject merchandise is dispositive.
[FR Doc. 2019-14234 Filed 7-2-19; 8:45 am]
BILLING CODE 3510-DS-P