[Federal Register Volume 85, Number 32 (Tuesday, February 18, 2020)]
[Notices]
[Pages 8833-8835]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03047]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-105]


Carbon and Alloy Steel Threaded Rod From the People's Republic of 
China: Final Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of carbon and alloy steel threaded rod (steel threaded rod) from the 
People's Republic of China (China).

DATES: Applicable February 18, 2020.

FOR FURTHER INFORMATION CONTACT: Thomas Schauer or Allison Hollander, 
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) 482-0410 or (202) 
482-2805, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On July 29, 2019, Commerce published the Preliminary Determination 
in the Federal Register.\1\ In addition to the Government of China 
(GOC), the selected mandatory respondents in this investigation are 
Ningbo Zhongjiang High Strength Bolts Co., Ltd. (Zhongjiang Bolts) and 
Zhejiang Junyue Standard Part Co., Ltd. (Junyue). In the Preliminary 
Determination, and in accordance with section 705(a)(1) of the Tariff 
Act of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce 
aligned the final countervailable duty (CVD) determination with the 
final antidumping duty (AD) determination. The revised deadline for the 
final determination of this investigation is now February 7, 2020. On 
October 2, 2019, Commerce issued its Post-Preliminary Analysis.\2\
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    \1\ See 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) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum.
    \2\ See Memorandum, ``Decision Memorandum for the Post-
Preliminary Analysis in the Countervailing Duty Investigation of 
Carbon and Alloy Steel Threaded Rod from the People's Republic of 
China,'' dated October 2, 2019 (Post-Preliminary Analysis).
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum.\3\ The Issues and 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 to all parties in the Central Records 
Unit, Room B8024 of the main Commerce building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Carbon and Alloy Steel Threaded Rod from the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2018 through December 31, 
2018.

Scope of the Investigation

    The products covered by this investigation are steel threaded rod 
from China. For a full description of the scope of the investigation, 
see Appendix I.

Scope Comments

    On July 22, 2019, we issued a Preliminary Scope Memorandum.\4\ The 
scope case briefs were due on August 28, 2019.\5\ We received no scope 
case briefs from interested parties. Therefore, Commerce has made no 
changes to the scope of this investigation since the Preliminary 
Determination.
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    \4\ 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 Memorandum).
    \5\ The scope case briefs were due 30 days after the publication 
of the Preliminary Determination. See Preliminary Scope Memorandum 
at 3.
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Verification

    As provided in section 782(i) of the Act, in November 2019, 
Commerce

[[Page 8834]]

verified the subsidy information reported by Zhongjiang Bolts and 
Junyue. We used standard verification procedures, including an 
examination of relevant accounting and production records, and original 
source documents provided by Junyue and Zhongjiang Bolts.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. For a list of the 
issues raised by parties, and to which we responded in the Issues and 
Decision Memorandum, see Appendix II of this notice.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found countervailable, 
Commerce determines that there is a subsidy, i.e., a financial 
contribution by an ``authority'' that gives rise to a benefit to the 
recipient, and that the subsidy is specific.\6\
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    \6\ 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.
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Use of Adverse Facts Available

    In making this final determination, Commerce relied, in part, on 
facts available and, because the GOC and Junyue did not act to the best 
of their ability in responding to Commerce's requests for information, 
we drew an adverse inference where appropriate in selecting from among 
the facts otherwise available, pursuant to sections 776(a) and (b) of 
the Act. For further information, see the section ``Use of Facts 
Otherwise Available and Adverse Inferences'' and Comments 1 through 3, 
6, and 7 in the Issues and Decision Memorandum.

Changes Since the Preliminary Determination

    Based on our analysis of our findings at verification and the 
comments received, we have made certain changes to the countervailable 
subsidy rate calculations. For discussion of these changes, see the 
Issues and Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(5)(A)(i) of the Act, for 
companies not individually examined, we apply an all-others rate, which 
is normally calculated by weighting the subsidy rates of the mandatory 
respondents by those companies' exports of the subject merchandise to 
the United States. Under section 705(c)(5)(A)(i) of the Act, the all-
others rate should exclude zero and de minimis rates or any rates based 
entirely on facts otherwise available pursuant to section 776 of the 
Act.
    Commerce calculated individual estimated countervailable subsidy 
rates for Junyue and Zhongjiang Bolts that are not zero, de minimis, or 
based entirely on facts otherwise available. Commerce calculated the 
all-others rate using a weighted-average of the estimated subsidy rates 
calculated for the examined respondents using each company's publicly 
ranged U.S. sales quantities for the merchandise under 
consideration.\7\
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    \7\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (B) a simple average of the 
estimated subsidy rates calculated for the examined respondents; and 
(C) a weighted-average of the estimated subsidy rates calculated for 
the examined respondents using each company's publicly-ranged U.S. 
sale quantities for the merchandise under consideration. Commerce 
then compares (B) and (C) to (A) and selects the rate closest to (A) 
as the most appropriate rate for all other producers and exporters. 
See, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010). As complete publicly ranged sales data was 
available, Commerce based the all-others rate on the publicly ranged 
sales data of the mandatory respondents. In addition, using the same 
methodology, Commerce calculated an all-others export subsidy rate 
of 16.52 percent, an all-others subsidy rate for the provision of 
steel bar at less than adequate remuneration (LTAR) of 12.75 
percent, and an all-others subsidy rate for the provision of wire 
rod at LTAR of 9.75 percent. For a complete analysis of the data, 
see the All-Others' Rate Calculation Memorandum, dated concurrently 
with this notice.
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Final Determination

------------------------------------------------------------------------
                                                                  Net
                                                                subsidy
                           Company                               rate
                                                               (percent)
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Ningbo Zhongjiang High Strength Bolts Co., Ltd..............       31.02
Zhejiang Junyue Standard Part Co., Ltd......................       66.81
All Others..................................................       41.17
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    We determine the countervailable subsidy rates to be:

Disclosure

    We intend to disclose the calculations performed to parties in this 
proceeding within five days after public announcement of the final 
determination in the Federal Register, in accordance with 19 CFR 
351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all steel 
threaded rod from China, that were entered, or withdrawn from 
warehouse, for consumption on or after July 29, 2019, the date of the 
publication of the Preliminary Determination in the Federal Register. 
In accordance with section 703(d) of the Act, we instructed CBP to 
discontinue the suspension of liquidation for CVD purposes for subject 
merchandise entered, or withdrawn from warehouse, on or after November 
26, 2019, but continue the suspension of liquidation of all entries 
from July 29 through November 25, 2019.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated countervailable duties for 
such entries of subject merchandise in the amounts indicated above. If 
the ITC determines that material injury, or threat of material injury, 
does not exist, this proceeding will be terminated, and all cash 
deposits will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. Because the final determination in this 
proceeding is affirmative, in accordance with section 705(b) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of steel threaded 
rod from China no later than 45 days after our final determination. In 
addition, we are making available to the ITC all non-privileged and 
non-proprietary information related to this investigation. We will 
allow the ITC access to all privileged and business proprietary 
information in our files, provided the ITC confirms that it will not 
disclose such information, either publicly or under an administrative 
protective order (APO), without the written consent of the Assistant 
Secretary for Enforcement and Compliance.

Notification Regarding APO

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to the 
parties subject to APO of their

[[Page 8835]]

responsibility concerning the disposition of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
written notification of return or destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 705(d) and 77(i)(1) of the Act, and 19 CFR 351.210(c).

    Dated: February 7, 2020.
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 
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 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.
    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 A320 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 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.
    Carbon and alloy 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 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).
    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. 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.

Appendix II

List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Subsidies Valuation Information
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Whether the Provision of Steel Bar and Wire Rod at 
Less Than Adequate Remuneration (LTAR) Is Specific
    Comment 2: Whether the Chinese Market for Steel Bar and Wire Rod 
Is Distorted
    Comment 3: Whether Certain Chinese Producers of Steel Bar and 
Wire Rod Are Authorities
    Comment 4: Whether To Revise the Steel Bar and Wire Rod 
Benchmarks
    Comment 5: Whether To Revise the Ocean Freight Benchmark
    Comment 6: Whether To Countervail Export Buyer's Credit
    Comment 7: Whether To Apply Adverse Facts Available (AFA) to 
Junyue
    Comment 8: Whether To Countervail Electricity Junyue Purchased 
from a Private Supplier
    Comment 9: Whether To Treat One of Zhongjiang Bolt's Self-
Reported Subsidies as an Export Subsidy.
VIII. Recommendation

[FR Doc. 2020-03047 Filed 2-14-20; 8:45 am]
 BILLING CODE 3510-DS-P