[Federal Register Volume 85, Number 33 (Wednesday, February 19, 2020)]
[Notices]
[Pages 9457-9458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03215]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-909]


Certain Steel Nails From the People's Republic of China: Notice 
of Court Decision Not in Harmony With the Final Results of Antidumping 
Duty Administrative Review and Notice of Amended Final Results

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

SUMMARY: On October 18, 2019, the United States Court of International 
Trade (CIT) entered final judgment sustaining the final results of 
redetermination pertaining to the sixth administrative review of the 
antidumping duty order on certain steel nails (steel nails) from the 
People's Republic of China (China). The Department of Commerce 
(Commerce) is notifying the public that the final judgment in this case 
is not in harmony final results of the administrative review covering 
the period of review (POR) August 1, 2013 through July 31, 2014, and 
that Commerce is amending the final results with respect to the dumping 
margin assigned to Shandong Oriental Cherry Hardware Group Co., Ltd. 
(Oriental Cherry).

DATES: Applicable October 28, 2019.

FOR FURTHER INFORMATION CONTACT: Javier Barrientos, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2243.

SUPPLEMENTARY INFORMATION: 

Background

    In the Preliminary Results,\1\ which remained unchanged in the 
Final Results,\2\ Commerce treated Oriental Cherry and its affiliated 
companies as a single entity.\3\ Commerce also determined that Oriental 
Cherry's responses were deficient, and that the use of facts otherwise 
available, pursuant to section 776(a) of the Tariff Act of 1930, as 
amended (the Act), was necessary.\4\ As a result, Commerce determined 
that Oriental Cherry was not eligible for separate rate status and 
treated it as part of the China-wide entity, subject to a dumping 
margin of 118.04 percent.
---------------------------------------------------------------------------

    \1\ See Certain Steel Nails from the People's Republic of China: 
Preliminary Results of the Antidumping Duty Administrative Review 
and Preliminary Determination of No Shipments; 2013-2014, 80 FR 
53490 (September 4, 2015) (Preliminary Results) and accompanying 
Preliminary Decision Memorandum at 11-12.
    \2\ See Certain Steel Nails from the People's Republic of China: 
Final Results of Antidumping Duty Administrative Review; 2013-2014, 
81 FR 14092 (March 16, 2016) (Final Results), and accompanying 
Issues and Decision Memorandum (IDM), amended by Certain Steel Nails 
from the People's Republic of China: Final Results of Antidumping 
Duty Administrative Review; 2013-2014, 81 FR 19136 (April 4, 2016).
    \3\ The Shandong Oriental Cherry Entity is comprised of: 
Oriental Cherry, Shandong Oriental Cherry Hardware Import & Export 
Co., Ltd., Heze Products Co., Ltd., Jining Huarong Hardware Products 
Co., Ltd., Jining Dragon Fasteners Co., Ltd., and Jining Yonggu 
Metal Products Co., Ltd.
    \4\ See Final Results IDM at 60-63.
---------------------------------------------------------------------------

    On January 2, 2018, the CIT remanded the Final Results with respect 
to our decision to deny Oriental Cherry a separate rate.\5\ The CIT 
remanded the Final Results to Commerce to reevaluate the evidence on 
the record regarding Oriental Cherry's eligibility for a separate rate, 
and to assign a separate rate to Oriental Cherry, if appropriate.
---------------------------------------------------------------------------

    \5\ See National Nail Corp. et al. v. United States, 279 F. 
Supp. 3d 1372 (January 2, 2018), Slip Op. 18-1, CIT Court No. 16-
00052.
---------------------------------------------------------------------------

    On April 20, 2018, Commerce issued the First Remand Results.\6\ On 
remand, Commerce determined that Oriental Cherry was eligible for a 
separate rate, because the record supported the finding that Oriental 
Cherry demonstrated an absence of de jure and de facto government 
control.\7\ Commerce did not, however, determine a rate using any of 
the production and sales information that Oriental Cherry had placed on 
the record in response to its questionnaires. Rather, Commerce further 
explained its findings from the Final Results, continuing to find that 
such information was missing from the record and that Oriental Cherry 
did not cooperate to the best of its ability to provide such 
information, and, thus, assigned Oriental Cherry the rate of 118.04 
percent as the total adverse facts available (AFA) rate pursuant to 
section 776(b) of the Act, i.e., the highest rate on the record of this 
proceeding.\8\
---------------------------------------------------------------------------

    \6\ See Final Results of Redetermination Pursuant to Remand 
Order in National Nail Corp. v. United States, Consol. Ct. No. 16-
00052 (April 20, 2018) (First Remand Results).
    \7\ Id. at 8-12.
    \8\ Id. at 12 and 15-18.
---------------------------------------------------------------------------

    On June 12, 2019, the CIT remanded the First Remand Results. The 
CIT held that Commerce's application of total

[[Page 9458]]

AFA in the First Remand Results was neither supported by substantial 
evidence, nor in accordance with law.\9\ Specifically, the CIT held 
that ``neither the law nor the facts support the Department's findings 
that: (1) None of Oriental Cherry's factors of production or its U.S. 
sales information was usable; (2) Oriental Cherry failed to comply with 
Commerce's requests for production and sales information to the best of 
its ability; and (3) a rate of 118.04 percent was legally and factually 
justified.'' \10\ As such, the CIT ordered that: (1) Commerce calculate 
a rate for Oriental Cherry using the factors of production and U.S. 
sales information submitted by Oriental Cherry in the underlying 
review; \11\ and (2) with respect to shooting nails supplied by 
Oriental Cherry's affiliate, Jining Dragon, Commerce use facts 
available in filling in missing necessary information, and (3) Commerce 
may draw an adverse inference with respect to information regarding the 
sales of shooting nails during the period of review.\12\ On September 
5, 2019, Commerce issued its Second Remand Results.\13\
---------------------------------------------------------------------------

    \9\ See National Nail Corp. et al. v. United States, Slip Op. 
19-71 (June 12, 2019), CIT Court No. 16-00052 (Second Remand Order) 
at 32-42 and 47.
    \10\ Id. at 6 and 47.
    \11\ Id. at 47-48.
    \12\ Id. at 48.
    \13\ See Final Results of Redetermination Pursuant to Remand 
Order in National Nail Corp. v. United States, Consol. Ct. No. 16-
00052 (September 5, 2019) (Second Remand Results).
---------------------------------------------------------------------------

Timken Notice

    In its decision in Timken,\14\ as clarified by Diamond 
Sawblades,\15\ the Court of Appeals for the Federal Circuit (CAFC) held 
that, pursuant to section 516A of the Tariff Act of 1930, as amended 
(the Act), Commerce must publish a notice of a court decision that is 
not ``in harmony'' with a Commerce determination and must suspend 
liquidation of entries pending a ``conclusive'' court decision. The 
CIT's October 18, 2019, judgment sustaining the Second Remand Results 
constitutes a final decision of the Court that is not in harmony with 
Commerce's Final Results. This notice is published in fulfillment of 
the publication requirements of Timken.
---------------------------------------------------------------------------

    \14\ See Timken Co., v. United States, 893 F.2d 337 (Fed. Cir. 
1990) (Timken).
    \15\ See Diamond Sawblades Mfrs. Coalition v. United States, 626 
F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
---------------------------------------------------------------------------

Amended Final Results

    Because there is now a final court decision, Commerce is amending 
the Final Results with respect to Oriental Cherry. The revised 
weighted-average dumping margin for Oriental Cherry for the period 
August 1, 2013 through July 31, 2014 is as follows:

------------------------------------------------------------------------
                                                              Weighted-
                                                               average
                          Exporter                              margin
                                                              (percent)
------------------------------------------------------------------------
The Shandong Oriental Cherry Entity........................       61.05
------------------------------------------------------------------------

    The CIT's ruling was not appealed and thus represents a final and 
conclusive court decision. Commerce will therefore instruct U.S. 
Customs and Border Protection to assess antidumping duties on 
unliquidated entries of subject merchandise exported by Oriental Cherry 
using the appropriate assessment rates.

Cash Deposit Requirements

    The cash deposit rate for Oriental Cherry has been superseded by 
cash deposit rates calculated in intervening administrative reviews of 
the antidumping duty order on certain steel nails from China. Thus, we 
will not alter its cash deposit rate.

Notification to Interested Parties

    This notice is issued and published in accordance with sections 
516A(e), 751(a)(1), and 777(i)(1) of the Act.

    Dated: February 11, 2020.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2020-03215 Filed 2-18-20; 8:45 am]
 BILLING CODE 3510-DS-P