[Federal Register Volume 84, Number 186 (Wednesday, September 25, 2019)]
[Notices]
[Pages 50379-50382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-20810]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-104]


Alloy and Certain Carbon Steel Threaded Rod From the People's 
Republic of China: Preliminary Affirmative Determination of Sales at 
Less Than Fair Value, Postponement of Final Determination and Extension 
of Provisional Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that Alloy and Certain Carbon Steel Threaded Rod (ACSTR) from the 
People's Republic of China (China) is being, or is likely to be, sold 
in the United States at less than fair value (LTFV). The period of 
investigation (POI) is July 1, 2018 through December 31, 2018. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable September 25, 2019.

FOR FURTHER INFORMATION CONTACT: Joshua Poole or Andre Gziryan, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1293 or (202) 482-2201, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on March 19, 
2019.\1\ On June 14, 2019, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
September 19, 2019.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov, 
and to all parties in the Central Records Unit, room B8024 of the main 
Commerce building. In addition, a complete version of the Preliminary 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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    \1\ See Carbon and Alloy Steel Threaded Rod from India, Taiwan, 
Thailand, and the People's Republic of China: Initiation of Less-
Than-Fair-Value Investigations, 84 FR 10034 (March 19, 2019) 
(Initiation Notice).
    \2\ See Carbon and Alloy Steel Threaded Rod From India, Taiwan, 
and the People's Republic of China: Postponement of Preliminary 
Determinations in the Less-Than-Fair-Value Investigations, 84 FR 
27764 (June 14, 2019).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less Than Fair Value Investigation of Alloy 
Steel Threaded Rod from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is ACSTR from China. For 
a complete description of the scope of this investigation, see Appendix 
I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this investigation, 
and accompanying discussion and analysis of all comments timely 
received, see the Preliminary Scope Decision Memorandum.\6\ The scope 
case briefs were due on August 28, 2019, 30 days after the publication 
of CASTR from China Preliminary CVD Determination.\7\ There will be no 
further opportunity for comments on scope-related issues.\8\
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Carbon and Alloy Steel Threaded Rod from 
India, Taiwan, Thailand, and the People's Republic of China: Scope 
Comments Decision Memorandum for the Preliminary Determinations,'' 
dated July 22, 2019 (Preliminary Scope Decision Memorandum).
    \7\ The scope case briefs were due 30 days after the publication 
of Carbon and Alloy Steel Threaded Rod from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination With Final Antidumping Duty 
Determination, 84 FR 36578 (July 29, 2019) (CASTR from China 
Preliminary CVD Determination). See the Preliminary Scope Decision 
Memorandum at 3. The deadline for the scope case briefs was 
Wednesday, August 28, 2019. Because the deadline for rebuttal briefs 
fell on Monday, September 2, 2019, a Federal holiday, the actual 
deadline for the scope rebuttal briefs was Tuesday, September 3, 
2019. See 19 CFR 351.303(b)(1) (``For both electronically filed and 
manually filed documents, if the applicable due date falls on a non-
business day, the Secretary will accept documents that are filed on 
the next business day.'').
    \8\ Parties were already permitted the opportunity to file scope 
case briefs. Case briefs, other written comments, and rebuttal 
briefs should not include scope-related issues. See Preliminary 
Scope Decision Memorandum at 3.
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    Because there is an existing antidumping duty (AD) order on carbon 
steel threaded rod from China, on September 3, 2019, the petitioner 
clarified for the record that with respect to ACSTR from the China AD 
investigation only, the products covered are alloy and certain steel 
threaded rod. Accordingly, we consulted with the petitioner to revise 
the scope of the China AD Investigation to reflect the petitioner's 
intent concerning the products that should be covered. We provided all 
interested parties an opportunity to comment on the revised scope.\9\ 
No parties commented on the proposed revised scope with respect to the 
China AD investigation only.
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    \9\ See Memorandum, ``Phone Conversation with counsel for Vulcan 
Threaded Products Inc.,'' dated September 6, 2019 (Proposed Revised 
Scope Memo).
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    Commerce is preliminarily modifying the scope language as it 
appeared in the Initiation Notice. See the revised scope in Appendix I 
to this notice.

Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act, 
Commerce has calculated normal value (NV) in accordance with section

[[Page 50380]]

773(c) of the Act. In addition, pursuant to section 776(a) and (b) of 
the Act, Commerce has relied on facts otherwise available, with adverse 
inferences, for the China-wide entity. For a full description of the 
methodology underlying Commerce's preliminary determination, see the 
Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,\10\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\11\ In this investigation, we calculated 
producer/exporter combination rates for respondents eligible for 
separate rates.
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    \10\ See Initiation Notice at 10038.
    \11\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

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                                                                                        Estimated   Cash deposit
                                                                                        weighted-        rate
                                                                                         average      (adjusted
                    Exporter                                   Producer                  dumping     for subsidy
                                                                                         margin       offsets)
                                                                                        (percent)     (percent)
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Ningbo Zhongjiang High Strength Bolts Co., Ltd..  Ningbo Zhongjiang High Strength            27.07         16.53
                                                   Bolts Co., Ltd.
Zhejiang Junyue Standard Part Co., Ltd..........  Zhejiang Junyue Standard Part Co.,          4.81          0.00
                                                   Ltd.
Cooper & Turner (Ningbo) International Trading    Zhejiang Cooper & Turner Fasteners         21.04         10.50
 Co., Ltd.                                         Co Ltd.
Cooper & Turner (Ningbo) International Trading    Zhejiang Morgan Brother Technology         21.04         10.50
 Co., Ltd.                                         Co., Ltd.
Cooper & Turner (Ningbo) International Trading    Zhejiang Huiyou Import & Export            21.04         10.50
 Co., Ltd.                                         Co., Ltd.
EC International (Nantong) Co., Ltd.............  Ningbo Zhongjiang High Strength            21.04         10.50
                                                   Bolts Co., Ltd.
EC International (Nantong) Co., Ltd.............  Ningbo Zhenghai Yongding Fasteners         21.04         10.50
                                                   Manufacture Co., LTD.
EC International (Nantong) Co., Ltd.............  Zhejiang Junyue Standard Part Co.,         21.04         10.50
                                                   Ltd.
EC International (Nantong) Co., Ltd.............  Haiyan Qinshan Rubber Factory.....         21.04         10.50
IFI & Morgan Ltd................................  Zhejiang Morgan Brother Technology         21.04         10.50
                                                   Co., Ltd.
Jiaxing Genteel Import & Export Co., Ltd........  Ningbo Zhenhai Zhongbiao Standard          21.04         10.50
                                                   Parts Factory.
Ningbo Dingtuo Imp. & Exp. Co., Ltd.............  Ningbo Jinding Fastening Piece             21.04         10.50
                                                   Co., Ltd.
Zhejiang Heiter Mfg & Trade Co., Ltd............  Zhejiang Golden Automotive                 21.04         10.50
                                                   Fastener Co., Ltd.
Ningbo Jinding Fastening Piece Co., Ltd.........  Ningbo Jinding Fastening Piece             21.04         10.50
                                                   Co., Ltd.
Ningbo Qunli Fastener Manufacture Co., Ltd......  Ningbo Qunli Fastener Manufacture          21.04         10.50
                                                   Co., Ltd.
Nantong Runyou Metal Products Co., Ltd..........  Nantong Runyou Metal Products Co.,         21.04         10.50
                                                   Ltd.
Ningbo Shareway Import & Export, Co., Ltd.......  Zhejiang Junyue Standard Parts             21.04         10.50
                                                   Co., Ltd.
Ningbo Xingsheng Oil Pipe Fittings Manufacture    Ningbo Xingsheng Oil Pipe Fittings         21.04         10.50
 Co., Ltd.                                         Manufacture Co., Ltd.
Ningbo Zhenghai Yongding Fastener Co., Ltd......  Ningbo Zhenghai Yongding Fastener          21.04         10.50
                                                   Co., Ltd.
RMB Fasteners Ltd...............................  Zhejiang Morgan Brother Technology         21.04         10.50
                                                   Co., Ltd.
Zhejiang Morgan Brother Technology Co., Ltd.....  Zhejiang Morgan Brother Technology         21.04         10.50
                                                   Co., Ltd.
China-Wide Entity \12\..........................  ..................................         59.45         48.91
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Suspension of Liquidation

    In accordance  with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register, as discussed below. 
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 
351.205(d), Commerce will instruct CBP to require a cash deposit equal 
to the estimated weighted average amount by which normal value exceeds 
U.S. price, as indicated in the chart above as follows: (1) For the 
producer/exporter combinations listed in the table above, the cash 
deposit rate is equal to the estimated weighted-average dumping margin 
listed for that combination in the table; (2) for all combinations of 
Chinese producers/exporters of merchandise under consideration that 
have not established eligibility for their own separate rates, the cash 
deposit rate will be equal to the estimated weighted-average dumping 
margin established for the China-wide entity; and (3) for all third-
county exporters of merchandise under consideration not listed in the 
table above, the cash deposit rate is the cash deposit rate applicable 
to the Chinese producer/exporter combination (or the China-wide entity) 
that supplied that third-country exporter.
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    \12\ Commerce preliminarily determined that Jiaxing Xingcheng 
Electronics Co., Ltd., Ningbo Panxiang Imp & Exp Co., Ltd., Ningbo 
Zhonglian Fastener Co., Ltd., and Ningbo Zhong Xin Angora Spinning 
Mill failed to establish their eligibility for a separate rate and, 
therefore, preliminarily determined that these companies are part of 
the China-wide entity. See Preliminary Decision Memorandum.
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    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, Commerce has made a preliminary affirmative 
determination for an export subsidy adjustment, however, Commerce has 
not made a preliminary affirmative determination for a domestic subsidy 
pass-through adjustment in this investigation.\13\ Commerce has offset 
the

[[Page 50381]]

calculated estimated weighted-average dumping margin by the appropriate 
rate. Any such adjusted rates may be found in the chart of estimated 
weighted-average dumping margins in the Preliminary Determination 
Section above.
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    \13\ See sections, ``Adjustment Under Section 777A of the Act'' 
and ``Adjustment to Cash Deposit Rate for Export Subsidies'' in the 
Preliminary Decision Memorandum.
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    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margins calculated in this preliminary determination unadjusted for the 
export subsidies at the time the CVD provisional measures expire.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this preliminary determination within five 
days of its public announcement or, if there is no public announcement, 
within five days of the date of publication of this notice in the 
Federal Register, accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last final verification report is 
issued in this investigation. Rebuttal briefs, limited to issues raised 
in case briefs, may be submitted no later than five days after the 
deadline date for case briefs.\14\ Pursuant to 19 CFR 351.309(c)(2) and 
(d)(2), parties who submit case briefs or rebuttal briefs in this 
investigation are encouraged to submit with each argument: (1) A 
statement of the issue; (2) a brief summary of the argument; and (3) a 
table of authorities.
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    \14\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC, 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by respondents for postponement of a final antidumping 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On August 2, 2019 and August 8, 2019 respectively, pursuant to 19 
CFR 351.210(e), Zhejiang Junyue Standard Part Co., Ltd. and Ningbo 
Zhongjiang High Strength Bolts Co., Ltd. requested that Commerce 
postpone the final determination and that provisional measures be 
extended to a period not to exceed six months.\15\ In accordance with 
section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because 
(1) the preliminary determination is affirmative; (2) the requesting 
exporters account for a significant proportion of exports of the 
subject merchandise; and (3) no compelling reasons for denial exist, 
Commerce is postponing the final determination and extending the 
provisional measures from a four-month period to a period not greater 
than six months. Accordingly, Commerce's final determination will be 
issued no later than 135 days after the date of publication of this 
preliminary determination.
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    \15\ See Zhejiang Junyue Standard Part Co., Ltd.'s Letter, 
``Carbon and Alloy Steel Threaded Rod from the People's Republic of 
China--Request for Extension of Final Determination and Provisional 
Measures,'' dated August 2, 2019.; see also Ningbo Zhongjiang High 
Strength Bolts Co., Ltd.'s Letter, ``Zhongjiang Request for 
Postponement of Final Determination and Extension of Provisional 
Measures Period in the Antidumping Duty Investigation on Alloy Steel 
Threaded Rod from the People's Republic of China (A-570-104),'' 
dated August 8, 2019.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination of sales at LTFV. If the final determination is 
affirmative, the ITC will determine before the later of 120 days after 
the date of this preliminary determination or 45 days after the final 
determination whether these imports of the subject merchandise are 
materially injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: September 19, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by the scope of this investigation is 
alloy and certain carbon steel threaded rod. Alloy and certain 
carbon steel threaded rod are certain threaded rod, bar, or studs, 
of carbon or alloy steel, having a solid, circular cross section of 
any diameter, in any straight length. Alloy and certain carbon steel 
threaded rod are normally drawn, cold-rolled, threaded, and 
straightened, or it may be hot-rolled. In addition, the alloy and 
certain carbon steel threaded rod, bar, or studs subject to this 
investigation 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.
    Alloy Steel threaded rod is normally produced to American 
Society for Testing and Materials (ASTM) specifications A193 B7/B7m, 
A193 B16, A320 L7/L7m, A320 L43, A354 BC and BD, and F1554 Grade 
105. Other specifications are Society of Automotive Engineers (SAE) 
specification 1429 grades 5 and 8, International Organization for 
Standardization (ISO) specification 898 class 8.8 and 10.9, and 
American Petroleum Institute (API) specification 20E. Certain carbon 
steel threaded rod is normally produced to ASTM specification A449. 
All steel threaded rod meeting the physical description set forth

[[Page 50382]]

above is covered by the scope of this investigation, whether or not 
produced according to a particular standard.
    Subject merchandise includes material matching the above 
description that has been 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 investigation if performed in the 
country of manufacture of the threaded rod.
    Alloy and certain carbon steel threaded rod are also included in 
the scope of this investigation 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 this investigation 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 or 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).
    Specifically excluded from the scope of this investigation is 
threaded rod that is imported as part of a package of hardware in 
conjunction with a ready-to-assemble piece of furniture.
    Alloy and certain carbon steel threaded rod are 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.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Product Characteristics
VII. Selection of Respondents
VIII. Discussion of the Methodology
IX. Adjustment Under Section 777(A)(f) of the Act
X. Adjustment to Cash Deposit Rate for Export Subsidies
XI. Recommendation

[FR Doc. 2019-20810 Filed 9-24-19; 8:45 am]
 BILLING CODE 3510-DS-P