[Federal Register Volume 85, Number 106 (Tuesday, June 2, 2020)]
[Notices]
[Pages 33626-33628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11892]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-113]


Certain Collated Steel Staples From the People's Republic of 
China: Final Affirmative Countervailing Duty Determination and Final 
Affirmative Critical Circumstances 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 certain collated steel staples (collated staples) from the People's 
Republic of China (China).

DATES: Applicable June 2, 2020.

FOR FURTHER INFORMATION CONTACT: Joshua Simonidis or Robert Palmer, 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) 482-0608 or (202) 
482-9068, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the Preliminary Determination in the 
countervailing duty (CVD) investigation of collated staples from China 
on November 12, 2019.\1\ For a complete description of the events that 
followed the Preliminary Determination, see the Issues and Decision 
Memorandum.\2\
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    \1\ See 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, 84 FR 61021 (November 12, 2019) 
(Preliminary Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Certain Collated Steel Staples from the People's 
Republic of China,'' dated concurrently with this determination, and 
hereby adopted by, this notice (Issues and Decision Memorandum).
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Period of Investigation

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

Scope of the Investigation

    The products covered by this investigation are collated staples 
from China. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    On November 4, 2019, we issued a Preliminary Scope Memorandum 
making no changes to the scope of this and the companion antidumping 
duty (AD) investigation.\3\ For a summary of the product coverage 
comments and rebuttal comments submitted to the record for this final 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Final Scope Decision Memorandum.\4\ Based on 
the comments received from interested parties, we are revising the 
scope of this investigation to exclude ``hog rings.'' The scope in 
Appendix I reflects this change.
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    \3\ 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 November 4, 2019 (Preliminary Scope Memorandum).
    \4\ See Memorandum, ``Certain Collated Steel Staples from the 
People's Republic of China: Final Scope Determination Decision 
Memorandum,'' dated concurrently with, and hereby adopted by, this 
notice (Final Scope Decision Memorandum).
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Verification

    Commerce normally verifies information relied upon in making its 
final determination, pursuant to section 782(i) of the Tariff Act of 
1930, as amended (the Act). However, on March 16, 2020, Commerce 
cancelled verification of the questionnaire responses submitted by 
Zhejiang Best Nail Industrial Co., Ltd. (Best Nail) and the Government 
of China.\5\ During the course of this investigation, a Level 4 travel 
advisory was imposed for all of China, preventing Commerce personnel 
from traveling to China to conduct verification. Due to this, as well 
as the impending statutory deadline for the completion of the final 
determination, Commerce was unable to conduct verification in this 
case.
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    \5\ See Memorandum, ``Cancellation of Verification and Deferment 
of Upstream Subsidy Investigation,'' dated March 16, 2020.
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    Pursuant to section 776(a)(2)(D) of the Act, in situations where 
information has been provided but the information cannot be verified, 
Commerce may use ``facts otherwise available'' in reaching the 
applicable determination. Accordingly, as Commerce was unable to 
proceed to verification in this investigation for reasons beyond its 
control, we have relied on the information submitted on the record that 
we used in making the Preliminary Determination, as facts available in 
making our final determination.

[[Page 33627]]

Final Affirmative Determination of Critical Circumstances

    Commerce preliminarily determined in this investigation that 
critical circumstances exist with respect to imports of collated 
staples from China shipped by Best Nail and all other producers and 
exporters.\6\ That determination remains unchanged and a discussion of 
our final critical circumstances determination can be found in the 
Issues and Decision Memorandum.
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    \6\ 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).
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Analysis of Subsidy Programs and Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by parties in this investigation are addressed in the Issues 
and Decision Memorandum. For a list of the issues raised by interested 
parties and addressed in the Issues and Decision Memorandum, see 
Appendix II to this notice. The Issues and Decision Memorandum is a 
public document and is made available to the public 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. In addition, a complete version of the Issues 
and Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/index.html. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.

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 countervailable subsidy, i.e., a 
financial contribution by an ``authority'' that gives rise to a benefit 
to the recipient, and that the subsidy is specific.\7\ For a full 
description of the methodology underlying our final determination, see 
the Issues and Decision Memorandum.
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    \7\ 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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    As discussed above, in making this final determination, Commerce 
relied on facts available pursuant to section 776(a) of the Act. 
Additionally, as discussed in the Issues and Decision Memorandum, 
because one or more respondents did not act to the best of their 
ability in responding to our requests for information, we drew adverse 
inferences, where appropriate, in selecting from among the facts 
otherwise available, pursuant to section 776(b) of the Act. 
Specifically, Commerce assigned rates based entirely on facts otherwise 
available with adverse inferences, pursuant to section 776(b) of the 
Act, to Hai Sheng Xin Group Co., Ltd. and Ningbo Deli Stationery. For 
further information, see the section ``Use of Facts Otherwise Available 
and Adverse Inferences'' in the Issues and Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(5)(A) of the Act, Commerce shall 
determine an estimated all-others rate for companies not individually 
examined. Generally, under section 705(c)(5)(A)(i) of the Act, 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 
under section 776 of the Act. However, section 705(c)(5)(A)(ii) of the 
Act provides that if the countervailable subsidy rates established for 
all companies individually examined are zero or de minimis rates, or 
are determined entirely under section 776 of the Act, then Commerce may 
use ``any reasonable method'' to establish an all-others rate, 
``including averaging the weighted-average countervailable subsidy 
rates determined for the exporters and producers individually 
investigated.''
    The sole calculated countervailable subsidy rate for this final 
determination is based on facts otherwise available. As explained 
above, the sole cooperative mandatory respondent in this investigation, 
Best Nail, is receiving a rate based entirely on the facts available. 
In the specific circumstances of this case, because we were unable to 
verify Best Nail, we find that a reasonable method to determine the 
all-others rate under section 705(c)(5)(A)(ii) of the Act here is to 
apply Best Nail's individual estimated subsidy rate as the all-others 
rate for companies not individually examined.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received, we made certain 
changes to Best Nail's subsidy rate calculations set forth in the 
Preliminary Determination. For a discussion of these changes, see the 
Issues and Decision Memorandum. In light of our method in this 
investigation for determining the all-others rate for companies not 
individually examined, we have also modified the all-others rate.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Zhejiang Best Nail Industrial Co., Ltd..................           12.32
Hai Sheng Xin Group Co., Ltd............................          192.64
Ningbo Deli Stationery..................................          192.64
All Others..............................................           12.32
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Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of publication of this notice, 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 entries of 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on August 14, 2019, which is 90 days before the date of 
publication of the Preliminary Determination in the Federal Register. 
In accordance with section 703(d) of the Act, we issued instructions to 
CBP to discontinue the suspension of liquidation for CVD purposes for 
subject merchandise entered, or withdrawn from warehouse, on or after 
March 11, 2020, but to continue the suspension of liquidation of all 
entries from August 14, 2019 through March 10, 2020. As discussed above 
in the ``Scope Comments'' section, for the final determination we have 
excluded hog rings from the scope of the investigation. Accordingly, 
with respect to hog rings, we will instruct CBP to discontinue 
suspension of liquidation of such merchandise effective the date of 
publication of this determination. In addition, we will direct CBP to 
liquidate any suspended entries of this merchandise without regard to 
countervailing duties and to refund any cash deposits with respect to 
these entries.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, reinstate 
the

[[Page 33628]]

suspension of liquidation under section 706(a) of the Act, and require 
a cash deposit of estimated countervailing 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 estimated duties 
deposited, or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our 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. 
Because the final determination in this proceeding is affirmative, in 
accordance with section 705(b)(2) 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 subject merchandise from China no later than 45 
days after our final determination. If the ITC determines that such 
injury does not exist, this proceeding will be terminated, and all cash 
deposits posted will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue a CVD order directing CBP to 
assess, upon further instruction by Commerce, countervailing duties on 
all imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/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 violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: May 22, 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 
certain collated steel staples. Certain collated steel staples 
subject to these investigations 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 this investigation 
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 this investigation 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).
    Also excluded are collated fasteners commonly referred to as 
``C-ring hog rings'' and ``D-ring hog rings'' produced from 
stainless or carbon steel wire having a nominal diameter of 0.050 to 
0.081 inches, inclusive. C-ring hog rings are fasteners whose legs 
are not perpendicular to the crown, but are curved inward resulting 
in the fastener forming the shape of the letter ``C''. D-ring hog 
rings are fasteners whose legs are straight but not perpendicular to 
the crown, instead intersecting with the crown at an angle ranging 
from 30 degrees to 75 degrees. The hog rings subject to the 
exclusion are collated using glue, adhesive, or tape. The hog rings 
subject to this exclusion have either a 90 degree blunt point or 15-
75 degree divergent point.
    Certain collated steel staples subject to this investigation 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 Issues and Decision Memorandum

I. Summary
II. Background
III. Final Determination of Critical Circumstances
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Subsidies Valuation
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Whether It Is Appropriate to Apply AFA to the EBC 
Program
    Comment 2: Whether It Is Appropriate to Apply AFA to Reported 
``Other Subsidies''
    Comment 3: Whether to Make an Affirmative Final Critical 
Circumstances Determination
    Comment 4: Whether to Apply AFA to the Provision of Electricity 
for LTAR
    Comment 5: Whether to Correct the Electricity Benchmark Rates
    Comment 6: Whether the Land Benchmark Is Flawed
    Comment 7: Whether to Include the Upstream Subsidy Benefit in 
the Final Determination
    7a. Whether the Deferment of the Upstream Subsidy Allegation Is 
Improper
    7b. Whether All Facts Are on the Record to Calculate Upstream 
Subsidy Benefit
    Comment 8: Whether to Apply Benefit AFA for the Provision of 
Galvanized Steel Wire for LTAR
VIII. Recommendation
[FR Doc. 2020-11892 Filed 6-1-20; 8:45 am]
 BILLING CODE 3510-DS-P