[Federal Register Volume 87, Number 149 (Thursday, August 4, 2022)]
[Notices]
[Pages 47701-47704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16722]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-542-804]


Certain Steel Nails From Sri Lanka: Preliminary Negative 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that certain steel nails (steel nails) from Sri Lanka are 
not being, or are not likely to be, sold in the United States at less 
than fair value (LTFV). The

[[Page 47702]]

period of investigation (POI) is October 1, 2020, through September 30, 
2021. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable August 4, 2022.

FOR FURTHER INFORMATION CONTACT: 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) 482-2805.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on January 26, 
2022.\1\ On May 20, 2022, Commerce postponed the preliminary 
determination of this investigation, and the revised deadline is now 
July 28, 2022.\2\
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    \1\ See Certain Steel Nails from India, Sri Lanka, Thailand, and 
the Republic of Turkey: Initiation of Less-Than-Fair-Value 
Investigations, 87 FR 3965 (January 26, 2022) (Initiation Notice).
    \2\ See Certain Steel Nails from India, Sri Lanka, Thailand, and 
the Republic of Turkey: Postponement of Preliminary Determinations 
in the Less-Than-Fair-Value Investigations, 87 FR 30868 (May 20, 
2022).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics included 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 https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Negative Determination in the Less-Than-Fair-Value Investigation of 
Certain Steel Nails from Sri Lanka,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are steel nails from Sri 
Lanka. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of this investigation as it appeared in 
the Initiation Notice. On July 5, 2022, Commerce issued its preliminary 
determination regarding the scope of the investigation.\6\ For a 
summary of the product coverage comments and rebuttal responses 
submitted to the record for this investigation, and accompanying 
analysis of all comments timely received, see the Preliminary Scope 
Decision Memorandum. Based on an analysis of the comments received, 
Commerce preliminarily determined to make no change to the scope 
language from the Initiation Notice, as reflected in Appendix I.\7\ 
Commerce established a separate briefing schedule for interested 
parties to address the preliminary scope determination.\8\
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 87 FR at 3966.
    \6\ See Memorandum, ``Antidumping Duty Investigations of Certain 
Steel Nails from India, Sri Lanka, Thailand, and Turkey and 
Countervailing Duty Investigations of Certain Steel Nails from 
India, Oman, Sri Lanka, Thailand, and Turkey: Preliminary Scope 
Decision Memorandum,'' dated July 5, 2022 (Preliminary Scope 
Decision Memorandum).
    \7\ Though Commerce preliminarily determined to make no change 
to the language of the scope in response to interested parties' 
comments, we note that the scope language as listed in Appendix I 
omits an HTSUS subheading (7318.15.5060) originally included in the 
scope language from the Initiation Notice, because Commerce 
determined that the HTSUS subheading does not exist. Id. at 15.
    \8\ Id. at 4-5.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Normal value (NV) is 
calculated in accordance with section 773 of the Act. For a full 
description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margin exists:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Exporter or producer                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Trinity Steel Private Limited...............................        0.00
------------------------------------------------------------------------

    Consistent with section 733(b)(3) of the Act, Commerce disregards 
de minimis rates. Accordingly, Commerce preliminarily determines that 
Trinity Steel Private Limited, the only individually examined 
respondent with a zero rate, has not made sales of subject merchandise 
at LTFV.
    Consistent with section 733(d) of the Act, Commerce has not 
calculated an estimated weighted-average dumping margin for all other 
producers and exporters because it has not made an affirmative 
preliminary determination of sales at LTFV.

Suspension of Liquidation

    Because Commerce has made a negative preliminary determination of 
sales at LTFV with regard to subject merchandise, Commerce will not 
direct U.S. Customs and Border Protection to suspend liquidation or to 
require a cash deposit of estimated antidumping duties for entries of 
steel nails from Sri Lanka.

Disclosure

    Commerce intends to disclose its calculations and related analysis 
to interested parties within five days of any public announcement of 
the preliminary determination or, if there is no public announcement, 
within five days of the date of publication of this notice in the 
Federal Register, 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.

Public Comment

    Case briefs or other written comments on non-scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance.\9\ 
Interested parties will be notified of the timeline for the submission 
of such case briefs and written comments at a later date. Rebuttal 
briefs, limited to issues raised in these case briefs, may be submitted 
no later than seven days after

[[Page 47703]]

the deadline date for case briefs.\10\ 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. Note that Commerce has modified certain of its 
requirements for serving documents containing business proprietary 
information, until further notice.\11\
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    \9\ Case briefs, other written comments, and rebuttal briefs 
submitted by parties in response to this preliminary LTFV 
determination should not include scope-related issues. The scope 
case briefs deadline was July 19, 2022. See the Preliminary Scope 
Decision Memorandum at 4.
    \10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \11\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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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 in the Federal Register. 
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 
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.

Postponement of Final Determination

    Section 735(a)(2)(B) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination in the Federal Register 
if, in the event of a negative preliminary determination, a request for 
such postponement is made by the petitioner.
    On July 14, 2022, Mid Continent Steel & Wire, Inc. (the petitioner) 
requested that Commerce postpone the final determination in the event 
of a negative preliminary determination.\12\ In accordance with section 
735(a)(2)(B) of the Act and 19 CFR 351.210(b)(2)(i), because: (1) the 
preliminary determination is negative; (2) the petitioner has requested 
the postponement of the final determination; and (3) no compelling 
reasons for denial exist, Commerce is postponing the final 
determination. Accordingly, Commerce will make its final determination 
by no later than 135 days after the date of publication of this 
preliminary determination in the Federal Register, pursuant to section 
735(a)(2) of the Act.\13\
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    \12\ See Petitioner's Letter, ``Certain Steel Nails from India, 
Sri Lanka and Thailand--Petitioner's Request for Postponement Final 
Determination,'' dated July 14, 2022.
    \13\ See also 19 CFR 351.210(e).
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U.S. International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its preliminary 
determination. If Commerce's final determination is affirmative, then 
the ITC will determine before the later of 120 days after the date of 
this preliminary determination or 45 days after the final determination 
whether imports of steel nails from Sri Lanka are materially injuring, 
or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).

    Dated: July 28, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Attachment I--Scope of the Investigation

    The merchandise covered by this investigation is certain steel 
nails having a nominal shaft or shank length not exceeding 12 
inches. Certain steel nails include, but are not limited to, nails 
made from round wire and nails that are cut from flat-rolled steel 
or long-rolled flat steel bars. Certain steel nails may be of one 
piece construction or constructed of two or more pieces. Examples of 
nails constructed of two or more pieces include, but are not limited 
to, anchors comprised of an anchor body made of zinc or nylon and a 
steel pin or a steel nail; crimp drive anchors; split-drive anchors, 
and strike pin anchors. Also included in the scope are anchors of 
one piece construction.
    Certain steel nails may be produced from any type of steel, and 
may have any type of surface finish, head type, shank, point type 
and shaft diameter. Finishes include, but are not limited to, 
coating in vinyl, zinc (galvanized, including but not limited to 
electroplating or hot dipping one or more times), phosphate, cement, 
and paint. Certain steel nails may have one or more surface 
finishes. Head styles include, but are not limited to, flat, 
projection, cupped, oval, brad, headless, double, countersunk, and 
sinker. Shank or shaft styles include, but are not limited to, 
smooth, barbed, screw threaded, ring shank and fluted.
    Screw-threaded nails subject to this investigation are driven 
using direct force and not by turning the nail using a tool that 
engages with the head. Point styles include, but are not limited to, 
diamond, needle, chisel, and blunt or no point. Certain steel nails 
may be sold in bulk, or they may be collated in any manner using any 
material.
    Excluded from the scope are certain steel nails packaged in 
combination with one or more non-subject articles, if the total 
number of nails of all types, in aggregate regardless of size, is 
less than 25. If packaged in combination with one or more non-
subject articles, certain steel nails remain subject merchandise if 
the total number of nails of all types, in aggregate regardless of 
size, is equal to or greater than 25, unless otherwise excluded 
based on the other exclusions below.
    Also excluded from the scope are certain steel nails with a 
nominal shaft or shank length of one inch or less that are a 
component of an unassembled article, where the total number of nails 
is sixty (60) or less, and the imported unassembled article falls 
into one of the following eight groupings: (1) Builders' joinery and 
carpentry of wood that are classifiable as windows, French-windows 
and their frames; (2) builders' joinery and carpentry of wood that 
are classifiable as doors and their frames and thresholds; (3) 
swivel seats with variable height adjustment; (4) seats that are 
convertible into beds (with the exception of those classifiable as 
garden seats or camping equipment); (5) seats of cane, osier, bamboo 
or similar materials; (6) other seats with wooden frames (with the 
exception of seats of a kind used for aircraft or motor vehicles); 
(7) furniture (other than seats) of wood (with the exception of (i) 
medical, surgical, dental or veterinary furniture; and (ii) barbers' 
chairs and similar chairs, having rotating as well as both reclining 
and elevating movements); or (8) furniture (other than seats) of 
materials other than wood, metal, or plastics (e.g., furniture of 
cane, osier, bamboo or similar materials). The aforementioned 
imported unassembled articles are currently classified under the 
following Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings: 4418.10, 4418.20, 9401.30, 9401.40, 9401.51, 9401.59, 
9401.61, 9401.69, 9403.30, 9403.40, 9403.50, 9403.60, 9403.81 or 
9403.89.
    Also excluded from the scope of this investigation are nails 
suitable for use in powder-actuated hand tools, whether or not 
threaded, which are currently classified under HTSUS subheadings 
7317.00.2000 and 7317.00.3000.
    Also excluded from the scope of this investigation are nails 
suitable for use in gas-actuated hand tools. These nails have a case 
hardness greater than or equal to 50 on the Rockwell Hardness C 
scale (HRC), a carbon content greater than or equal to 0.5 percent, 
a round head, a secondary reduced-diameter raised head section, a 
centered shank, and a smooth symmetrical point.
    Also excluded from the scope of this investigation are 
corrugated nails. A corrugated nail is made up of a small strip of 
corrugated steel with sharp points on one side.
    Also excluded from the scope of this investigation are thumb 
tacks, which are currently classified under HTSUS subheading 
7317.00.1000.
    Also excluded from the scope are decorative or upholstery tacks.
    Certain steel nails subject to this investigation are currently 
classified under

[[Page 47704]]

HTSUS subheadings 7317.00.5501, 7317.00.5502, 7317.00.5503, 
7317.00.5505, 7317.00.5507, 7317.00.5508, 7317.00.5511, 
7317.00.5518, 7317.00.5519, 7317.00.5520, 7317.00.5530, 
7317.00.5540, 7317.00.5550, 7317.00.5560, 7317.00.5570, 
7317.00.5580, 7317.00.5590, 7317.00.6530, 7317.00.6560, and 
7317.00.7500. Certain steel nails subject to this investigation also 
may be classified under HTSUS subheadings 7318.15.5090, 
7907.00.6000, 8206.00.0000, or other HTSUS subheadings. While the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of this investigation is 
dispositive.

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Discussion of the Methodology
V. Currency Conversion
VI. Recommendation
VII.

[FR Doc. 2022-16722 Filed 8-3-22; 8:45 am]
BILLING CODE 3510-DS-P