[Federal Register Volume 85, Number 93 (Wednesday, May 13, 2020)]
[Notices]
[Pages 28610-28613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10234]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-843]


Prestressed Concrete Steel Wire Strand From the Republic of 
Turkey: Initiation of Countervailing Duty Investigation

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

DATES: Applicable May 6, 2020.

FOR FURTHER INFORMATION CONTACT: Alex Villanueva; 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) 482-3208.

SUPPLEMENTARY INFORMATION:

The Petition

    On April 16, 2020, the Department of Commerce (Commerce) received a 
countervailing duty (CVD) petition concerning imports of prestressed 
concrete steel wire strand (PC strand) from the Republic of Turkey 
(Turkey), filed in proper form on behalf of the petitioners,\1\ 
domestic producers of PC strand.\2\ The Petition was accompanied by 
antidumping duty (AD) petitions concerning imports of PC strand from 
Argentina, Columbia, Egypt, Indonesia, Italy, Malaysia, Netherlands, 
Saudi Arabia, South Africa, Spain, Taiwan, Tunisia, Turkey, Ukraine and 
the United Arab Emirates.
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    \1\ The petitioners consist of Insteel Wire Products Company, 
Sumiden Wire Products Corporation, and Wire Mesh Corporation.
    \2\ See Petitioners' Letter, ``Prestressed Concrete Steel Wire 
Strand from Argentina, Colombia, Egypt, Indonesia, Italy, Malaysia, 
Netherlands, Saudi Arabia, South Africa, Spain, Taiwan, Tunisia, 
Turkey, Ukraine, and the United Arab Emirates--Petition for the 
Imposition of Antidumping and Countervailing Duties,'' dated April 
16, 2020 (the Petition).
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    Between April 21 and 23, 2020, Commerce requested supplemental 
information pertaining to certain aspects of the Petition in separate 
supplemental questionnaires.\3\ The petitioners filed responses to the 
supplemental questionnaires on April 27, 2020.\4\
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    \3\ See Commerce's Letters, ``Petition for the Imposition of 
Antidumping Duties on Imports of Prestressed Concrete Steel Wire 
Strand from Argentina, Colombia, Egypt, Indonesia, Italy, Malaysia, 
the Netherlands, Saudi Arabia, South Africa, Spain, Taiwan, Tunisia, 
Turkey, Ukraine, and the United Arab Emirates: Supplemental 
Questions,'' dated April 21, 2020 (General Issues Supplement); and 
``Petition for the Imposition of Countervailing Duties on Imports of 
Prestressed Concrete Steel Wire Strand from the Republic of Turkey: 
Supplemental Questions,'' dated April 21, 2020.
    \4\ See Petitioners' Letter, ``Prestressed Concrete Steel Wire 
Strand from Argentina, Columbia, Egypt, Indonesia, Italy, Malaysia, 
Netherlands, Saudi Arabia, South Africa, Spain, Taiwan, Tunisia, 
Ukraine, and United Arab Emirates--Petitioners' Amendment to Volume 
I Concerning General Issues,'' dated April 27, 2020 (General Issues 
Supplement Response); and ``Prestressed Concrete Steel Wire Strand 
from Argentina, Columbia, Egypt, Indonesia, Italy, Malaysia, 
Netherlands, Saudi Arabia, South Africa, Spain, Taiwan, Tunisia, 
Turkey, Ukraine, and United Arab Emirates--Petitioners' Amendment to 
Volume XVII Related to Countervailing Duties from the Republic of 
Turkey,'' dated April 27, 2020.
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    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that the Government of Turkey 
(GOT) is providing countervailable subsidies, within the meaning of 
sections 701 and 771(5) of the Act, to producers of PC strand in 
Turkey, and that imports of

[[Page 28611]]

such products are materially injuring, or threatening material injury 
to, the domestic PC strand industry in the United States. Consistent 
with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those 
alleged programs on which we are initiating a CVD investigation, the 
petitioners provided reasonably available information in the Petition 
to support their allegation.
    Commerce finds that the petitioners filed the Petition on behalf of 
the domestic industry, because the petitioners are an interested party, 
as defined in section 771(9)(C) of the Act. Commerce also finds that 
the petitioners demonstrated sufficient industry support necessary for 
the initiation of the requested CVD investigation.\5\
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    \5\ See the ``Determination of Industry Support for the 
Petition'' section, infra.
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Period of Investigation

    Because the Petition was filed on April 16, 2020, the period of 
investigation is January 1, 2019 through December 31, 2019.

Scope of the Investigation

    The product covered by this investigation is PC strand from Turkey. 
For a full description of the scope of this investigation, see the 
appendix to this notice.

Scope Comments

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\6\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\7\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such comments by 5:00 p.m. Eastern Time 
(ET) on May 26, 2020, 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 June 5, 2020, which is 10 
calendar days from the initial comment deadline.
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    \6\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble).
    \7\ See 19 CFR 351.102(b) (21) (defining ``factual 
information'').
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    Commerce requests that any factual information parties consider 
relevant to the scope of the investigation be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such submissions must also be 
filed on the records of the concurrent AD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's AD and CVD Centralized Electronic Service 
System (ACCESS), unless an exception applies.\8\ An electronically 
filed document must be received successfully in its entirety by the 
time and date it is due.
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    \8\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011), and Enforcement and 
Compliance: Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014), for details of Commerce's electronic filing 
requirements, which went into effect on 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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Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified representatives of the GOT of the receipt of the Petition and 
provided them the opportunity for consultations with respect to the 
Petition.\9\ Consultations were held with the GOT on April 27, 
2020.\10\ The GOT submitted consultation remarks on April 27, 2020.\11\
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    \9\ See Commerce's Letter, ``Countervailing Duty Petition on 
Prestressed Concrete Steel Wire Strand from the Republic of Turkey; 
Invitation for Consultations to Discuss the Countervailing Duty 
Petition,'' dated April 17, 2020.
    \10\ See Memorandum, ``Consultations with Officials from the 
Government of the Republic of Turkey Regarding the Countervailing 
Duty Investigation of Prestressed Concrete Steel Wire Strand from 
the Republic of Turkey,'' dated April 27, 2020.
    \11\ See GOT's Letter, ``Countervailing Duty Petition on 
Prestressed Concrete Steel Wire Strand from the Republic of Turkey: 
Consultations Held on April 27, 2020,'' dated April 27, 2020.
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Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(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 702(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 statute 
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,\12\ 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.\13\
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    \12\ See section 771(10) of the Act.
    \13\ See 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), 
cert. denied 492 U.S. 919 (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 petitioners do not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\14\ Based on our analysis of the information 
submitted on the record, we have determined that PC strand, as defined 
in the scope, constitutes a single domestic like

[[Page 28612]]

product, and we have analyzed industry support in terms of that 
domestic like product.\15\
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    \14\ See Volume I of the Petition at 19-20 and Exhibits GEN-4 
and GEN-5; see also General Issues Supplement Response at 4.
    \15\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Countervailing Duty Investigation Initiation Checklist: Prestressed 
Concrete Steel Wire Strand from the Republic of Turkey (Turkey CVD 
Initiation Checklist) at Attachment II, Analysis of Industry Support 
for the Antidumping and Countervailing Duty Petitions Covering 
Prestressed Concrete Steel Wire Strand from Argentina, Colombia, 
Egypt, Indonesia, Italy, Malaysia, the Netherlands, Saudi Arabia, 
South Africa, Spain, Taiwan, Tunisia, Turkey, Ukraine, and the 
United Arab Emirates (Attachment II). This checklist is dated 
concurrently with this notice and on file electronically via ACCESS.
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    In determining whether the petitioners have standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the appendix to 
this notice. To establish industry support, the petitioners provided 
their 2019 production of the domestic like product, as well as the 2019 
production of Strand-Tech Manufacturing, Inc., a supporter of the 
Petition.\16\ The petitioners compared the production of the supporters 
of the Petition to the estimated total production of the domestic like 
product for the entire domestic industry.\17\ We relied on data 
provided by the petitioners for purposes of measuring industry 
support.\18\
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    \16\ See Volume I of the Petition at 4 and Exhibits GEN-2 and 
GEN-3; see also General Issues Supplement Response at 4 and Exhibit 
GEN-SUPP-3.
    \17\ See Volume I of the Petition at 4 and Exhibits GEN-1 
through GEN-3; see also General Issues Supplement Response at 3-4 
and Exhibits GEN-SUPP-2 and GEN-SUPP-3.
    \18\ See Volume I of the Petition at 4 and Exhibits GEN-1 
through GEN-3; see also General Issues Supplement Response at 3-4 
and Exhibits GEN-SUPP-2 and GEN-SUPP-3. For further discussion, see 
Attachment II of the Turkey CVD Initiation Checklist.
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    Our review of the data provided in the Petition, the General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioners have established industry support for 
the Petition.\19\ First, the Petition 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 to evaluate industry support 
(e.g., polling).\20\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
702(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petition 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 702(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition 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 Petition.\22\ Accordingly, Commerce determines that the Petition 
were filed on behalf of the domestic industry within the meaning of 
section 702(b)(1) of the Act.\23\
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    \19\ See Attachment II of the Turkey CVD Initiation Checklist.
    \20\ Id.; see also section 702(c)(4)(D) of the Act.
    \21\ See Attachment II of the Turkey CVD Initiation Checklist.
    \22\ Id.
    \23\ Id.
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Injury Test

    Because Turkey is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from Turkey materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioners allege that imports of the subject merchandise are 
benefitting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioners 
allege that subject imports exceed the negligibility threshold provided 
for under section 771(24)(A) of the Act.\24\
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    \24\ See Volume I of the Petition at 21-22 and Exhibit GEN-11.
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    The petitioners contend that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
declining market share; underselling and price suppression; lost sales 
and revenues; declines in production, shipments, capacity utilization, 
and employment; and declining financial performance.\25\ We have 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, causation, as well as negligibility, 
and we have determined that these allegations are properly supported by 
adequate evidence, and meet the statutory requirements for 
initiation.\26\
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    \25\ See Volume I of the Petition at 25-39 and Exhibits GEN-9, 
and GEN-12 through GEN-16.
    \26\ See Turkey CVD Initiation Checklist at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Prestressed Concrete Steel Wire Strand from Argentina, 
Colombia, Egypt, Indonesia, Italy, Malaysia, the Netherlands, Saudi 
Arabia, South Africa, Spain, Taiwan, Tunisia, Turkey, Ukraine, and 
the United Arab Emirates (Attachment III).
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Initiation of CVD Investigation

    Based upon the examination of the Petition and supplemental 
responses, we find that they meet the requirements of section 702 of 
the Act. Therefore, we are initiating a CVD investigation to determine 
whether imports of PC strand from Turkey benefit from countervailable 
subsidies conferred by the GOT. In accordance with section 703(b)(1) of 
the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our 
preliminary determination no later than 65 days after the date of this 
initiation.
    Based on our review of the petition, we find that there is 
sufficient information to initiate a CVD investigation, on 21 of the 22 
alleged programs. For a full discussion of the basis for our decision 
to initiate on each program, see Turkey CVD Initiation Checklist. A 
public version of the initiation checklist for this investigation is 
available on ACCESS.

Respondent Selection

    In the Petition, the petitioners named three companies as 
producers/exporters of PC strand.\27\ Commerce intends to follow its 
standard practice in CVD investigations and calculate company-specific 
subsidy rates for each company. In the event Commerce determines that 
the number of companies is large and it cannot individually examine 
each company based upon its resources, where appropriate, Commerce 
intends to select mandatory respondents based on U.S. Customs and 
Border Protection (CBP) data for U.S. imports under the appropriate 
Harmonized Tariff Schedule of the United States numbers listed in the 
appendix to this notice.
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    \27\ See Volume I of the Petition at Exhibit GEN-8.
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    On May 4, 2020, Commerce released CBP data on imports of PC strand 
from Turkey under Administrative Protective Order (APO) to all parties 
with access to information protected by APO and indicated that 
interested parties wishing to comment on the CBP data must do so within 
three business days of the publication date of the notice of initiation 
of this investigation.\28\

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Commerce will not accept rebuttal comments regarding the CBP data or 
respondent selection.
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    \28\ See Memorandum, ``Petition for the Imposition of 
Countervailing Duties on Imports of Prestressed Concrete Steel Wire 
Strand from the Republic of Turkey: Release of Customs Data from 
U.S. Customs and Border Protection,'' dated May 4, 2020.
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    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on Commerce's website at http://enforcement.trade.gov/apo. We intend to finalize our decision regarding 
respondent selection within 20 days of publication of this notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOT via ACCESS. To the extent practicable, we will 
attempt to provide a copy of the public version of the Petition to each 
exporter named in the Petition, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
702(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of PC strand from Turkey are materially 
injuring, or threatening material injury to, a U.S. industry.\29\ A 
negative ITC determination will result in this investigation being 
terminated.\30\ Otherwise, this investigation will proceed according to 
the statutory and regulatory time limits.
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    \29\ See section 703(a)(2) of the Act.
    \30\ See section 703(a)(1) of the Act.
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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). 19 CFR 351.301(b) requires any 
party, when submitting factual information, to specify under which 
subsection of 19 CFR 351.102(b)(21) the information is being submitted 
\31\ 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.\32\ 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 this 
investigation.
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    \31\ See 19 CFR 351.301(b).
    \32\ See 19 CFR 351.301(b)(2).
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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 Commerce. 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 the letter or memorandum setting 
forth 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, 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 this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\33\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\34\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \33\ See section 782(b) of the Act.
    \34\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, 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 this investigation 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)). Note that 
Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information, until 
May 19, 2020, unless extended.\35\
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    \35\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 17006 (March 26, 2020).
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    This notice is issued and published pursuant to sections 702(c)(2) 
and 777(i) of the Act and 19 CFR 351.203(c).

    Dated: May 6, 2020.
Jeffrey I. Kessler,
Assistant Secretary, for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The merchandise covered by this investigation is prestressed 
concrete steel wire strand (PC strand), produced from wire of non-
stainless, non-galvanized steel, which is suitable for use in 
prestressed concrete (both pretensioned and post-tensioned) 
applications. The product definition encompasses covered and 
uncovered strand and all types, grades, and diameters of PC strand. 
PC strand is normally sold in the United States in sizes ranging 
from 0.25 inches to 0.70 inches in diameter. PC strand made from 
galvanized wire is only excluded from the scope if the zinc and/or 
zinc oxide coating meets or exceeds the 0.40 oz./ft\2\ standard set 
forth in ASTM-A-475. The PC strand subject to this investigation is 
currently classifiable under subheadings 7312.10.3010 and 
7312.10.3012 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Although the HTSUS subheadings are provided for convenience 
and customs purposes, the written description of the scope of this 
investigation is dispositive.

[FR Doc. 2020-10234 Filed 5-12-20; 8:45 am]
 BILLING CODE 3510-DS-P