[Federal Register Volume 84, Number 218 (Tuesday, November 12, 2019)]
[Notices]
[Pages 61021-61023]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24459]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-113]


Certain Collated Steel Staples From the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination, and 
Alignment of Final Determination With Final Antidumping Duty 
Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of certain collated steel staples (collated staples) from the 
People's Republic of China (China) for the period of investigation 
(POI) January 1, 2018 through December 31, 2018. Interested parties are 
invited to comment on this preliminary determination.

DATES: Applicable November 12, 2019.

FOR FURTHER INFORMATION CONTACT: Bob Palmer or Joshua Simonidis, AD/CVD 
Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-9068 or (202) 
482-0608, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on July 3, 
2019.\1\
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    \1\ See Certain Collated Steel Staples from the People's 
Republic of China: Initiation of Countervailing Duty Investigation, 
84 FR 31840 (July 3, 2019) (Initiation Notice).
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    On August 9, 2019, pursuant to a request from the Kyocera Senco 
Industrial Tools, Inc. (the petitioner),\2\ Commerce postponed the 
preliminary determination of this investigation to November 4, 2019.\3\ 
On October 24, 2019, Commerce issued its preliminary critical 
circumstances determination determining that critical circumstances 
exist for imports from all producers and exporters of the subject 
merchandise from China.\4\
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    \2\ See Petitioner's Letter, ``Certain Collated Steel Staples 
from the People's Republic of China: Petitioner's Request to 
Postpone the Deadline for the Preliminary Determination,'' dated 
August 5, 2019.
    \3\ See Certain Collated Steel Staples from the People's 
Republic of China: Postponement of Preliminary Determination in the 
Countervailing Duty Investigation, 84 FR 42896 (August 19, 2019).
    \4\ See Certain Collated Steel Staples from the People's 
Republic of China: Preliminary Affirmative Determinations of 
Critical Circumstances in the Antidumping and Countervailing Duty 
Investigations, 84 FR 59353 (November 4, 2019) (signed October 24, 
2019) (Preliminary Affirmative Critical Circumstances 
Determination).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\5\ A list of topics discussed 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 http://access.trade.gov, and is available 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/. The signed and electronic versions of the Preliminary Decision 
Memorandum are identical in content.
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    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination: Countervailing Duty Investigation of 
Certain Collated Steel Staples 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 collated staples from 
China. For a complete description of the scope of this investigation, 
see

[[Page 61022]]

Appendix I and ``Scope Comments'' section below.

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\6\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\7\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice.\8\ Based on our preliminary analysis of these 
comments, we have not made any changes to the scope of the 
investigation. For a summary of the product coverage comments and 
responses submitted to the record for this preliminary determination, 
and accompanying discussion and analysis of all comments timely 
received, see the Preliminary Scope Decision Memorandum.\9\
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    \6\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \7\ See Initiation Notice, 84 FR at 31841.
    \8\ See Peace Industries Ltd.'s Letter, ``Certain Collated Steel 
Staples from Korea, the People's Republic of China, and Taiwan: 
Scope Comments,'' dated July 16, 2019; see also BeA Fasteners USA, 
Inc.'s (BeA) Letter, ``Antidumping and Countervailing Duty 
Investigations on Certain Collated Steel Staples from the People's 
Republic of China, the Republic of Korea, and Taiwan: Scope 
Comments,'' dated July 16, 2019; Petitioner's Letter, ``Certain 
Collated Steel Staples from the People's Republic of China: Response 
to Scope Comments,'' dated August 2, 2019; BeA's Letter, 
``Antidumping and Countervailing Duty Investigations on Certain 
Collated Steel Staples From the People's Republic of China, the 
Republic of Korea, and Taiwan: Supplemental Scope Comments,'' dated 
October 11, 2019; and Petitioner's Letter, ``Certain Collated Steel 
Staples from the People's Republic of China: Response to BeA's 
Supplemental Scope Comments,'' dated October 17, 2019.
    \9\ See Memorandum, ``Less-Than-Fair-Value and Countervailing 
Duty Investigations of Certain Collated Steel Staples from the 
People's Republic of China: Preliminary Scope Decision Memorandum,'' 
dated concurrently with this notice (Preliminary Scope Decision 
Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that 
confers a benefit to the recipient, and that the subsidy is 
specific.\10\ In making these findings, Commerce relied in part on 
facts available, and because Commerce found that certain respondents 
did not act to the best of their ability to respond to our requests for 
information, Commerce drew an adverse inference where appropriate in 
selecting from among the facts otherwise available.\11\ For further 
information, see ``Use of Facts Otherwise Available and Adverse 
Inferences'' in the Preliminary Decision Memorandum. For a full 
description of the methodology underlying our preliminary conclusions, 
see the Preliminary Decision Memorandum.
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    \10\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
    \11\ See sections 776(a) and (b) of the Act.
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Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), Commerce is aligning the final determination in this 
countervailing duty investigation with the final determination in the 
companion antidumping duty investigation of collated staples from 
China, based on a request made by the petitioner.\12\ Consequently, the 
final countervailing duty determination will be issued on the same date 
as the final antidumping duty determination, which is currently 
scheduled to be issued no later than March 17, 2020, unless postponed.
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    \12\ See Petitioner's Letter, ``Certain Collated Steel Staples 
from the People's Republic of China: Petitioner's Request for 
Alignment of Countervailing Duty Investigation Final Determination 
Deadline with Antidumping Investigation Final Determination 
Deadline,'' dated October 2, 2019.
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All-Others Rate

    Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that 
in the preliminary determination, Commerce shall determine an estimated 
all-others rate for companies not individually examined. This rate 
shall be an amount equal to the weighted average of the estimated 
subsidy rates established for those companies individually examined, 
excluding any zero and de minimis rates and any rates based entirely on 
facts otherwise available, as outlined under section 776 of the Act.
    In this investigation, Commerce preliminarily assigned rates based 
entirely on facts available for Hai Sheng Xin Group Co., Ltd. and 
Ningbo Deli Stationery. Therefore, the only rate that is not zero, de 
minimis, or based entirely on facts otherwise available is the rate 
calculated for Zhejiang Best Nail Industrial Co., Ltd. (Best Nail). 
Consequently, the rate calculated for Best Nail is preliminarily 
assigned as the rate for all other producers and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Zhejiang Best Nail Industrial Co., Ltd......................       12.38
Hai Sheng Xin Group Co., Ltd................................      156.99
Ningbo Deli Stationery......................................      156.99
All Others..................................................       12.38
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Suspension of Liquidation

    In accordance with sections 703(d)(1)(B) and (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 
the ``Scope of the Investigation'' section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.
    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances,\13\ any suspension of 
liquidation shall apply to unliquidated entries of merchandise entered, 
or withdrawn from warehouse, for consumption on or after the later of 
(a) the date which is 90 days before the date on which the suspension 
of liquidation was first ordered, or (b) the date on which the notice 
of initiation of the investigation was published. Commerce 
preliminarily found that critical circumstances exist for all imports 
of subject merchandise from China. In accordance with section 
703(e)(2)(A) of the Act, the suspension of liquidation shall apply to 
unliquidated entries from all exporters and producers of the subject 
merchandise from China that were entered, or withdrawn from warehouse, 
for consumption on or after the date which is 90 days before the 
publication of this notice.
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    \13\ See Preliminary Affirmative Critical Circumstances 
Determination.
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Disclosure

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

Verification

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

[[Page 61023]]

Public Comment

    All interested parties will have the opportunity to submit case and 
rebuttal briefs on the preliminary scope determination. The deadline 
for these comments will be established in the Federal Register notice 
regarding the preliminary determination of the companion antidumping 
duty investigation of collated staples from China to be issued at a 
later date.
    Case briefs or other written comments, not pertaining to scope 
issues, may be submitted to the Assistant Secretary for Enforcement and 
Compliance no later than seven days after the date on which the last 
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.
    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. Pursuant 
to section 705(b)(2) of the Act, if the final determination is 
affirmative, the ITC will make its final injury determination before 
the later of 120 days after the date of this preliminary determination 
or 45 days after Commerce's final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: November 4, 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 
certain collated steel staples. Certain collated steel staples 
subject to this proceeding 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.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Preliminary Determination of Critical Circumstances
IV. Alignment
V. Injury Test
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Recommendation

 [FR Doc. 2019-24459 Filed 11-8-19; 8:45 am]
 BILLING CODE 3510-DS-P