[Federal Register Volume 87, Number 161 (Monday, August 22, 2022)]
[Notices]
[Pages 51333-51335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18045]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-905]


Certain Steel Nails From India: Final Affirmative Countervailing 
Duty Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain steel nails (steel nails) from India.

DATES: Applicable August 22, 2022.

FOR FURTHER INFORMATION CONTACT: Genevieve Coen or Eric Hawkins, 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) 482-3251 or (202) 482-1988, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 7, 2022, Commerce published the Preliminary Determination 
in the Federal Register.\1\ For a complete description of the events 
that followed the Preliminary Determination, see the Issues and 
Decision Memorandum.\2\ 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 https://access.trade.gov. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \1\ See Certain Steel Nails from India: Preliminary Affirmative 
Countervailing Duty Determination, 87 FR 34654 (June 7, 2022) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination of the Countervailing Duty Investigation of 
Certain Steel Nails from India,'' 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 April 1, 2020, through March 31, 
2021.

Scope of the Investigation

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

Scope Comments

    On July 5, 2022, Commerce issued the Preliminary Scope 
Memorandum.\3\ Commerce received no comments from interested parties on 
the Preliminary Scope Memorandum. Thus, Commerce made no changes to the 
scope of this investigation since the Preliminary Determination.
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    \3\ 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 
Memorandum).
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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 Tariff Act of 1930, as amended (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.\4\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \4\ 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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Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\5\
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    \5\ See Commerce's Letters, In Lieu of On-site Verification 
Questionnaire, dated June 2, 2022, and June 9, 2022, respectively; 
see also ``Astrotech's In Lieu of Verification Questionnaire 
Response,'' dated June 10, 2022; and Geekay's Letter, ``In Lieu of 
On-Site Verification Questionnaire Response,'' dated June 17, 2022 
(Geekay's ILOV Response).
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Changes Since the Preliminary Determination

    Based on our review and analysis of the information received in 
lieu of on-site verification and comments received from parties, we 
made certain changes to the Preliminary Determination.\6\ However, 
these changes did not alter the subsidy rates calculated in the 
Preliminary Determination for the mandatory respondents, or the rate 
for all other producers/exporters. For a discussion of these changes, 
see the Issues and Decision Memorandum.
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    \6\ For example, due to minor corrections, we modified Geekay 
Wires Limited's (Geekay) subsidy calculations; these corrections, 
however, did not change Geekay's final subsidy rate. See Geekay's 
ILOV Response at 1-2.
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All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated countervailable subsidy rates for the individually 
investigated exporters and producers (i.e., Astrotech Steels Pvt. Ltd. 
(Astrotech) and Geekay). Consistent with sections 705(c)(1)(B)(i)(I) 
and 705(c)(5)(A) of the Act, we also calculated an estimated all-others 
rate for exporters and producers not individually investigated. Section 
705(c)(5)(A)(i) of the Act states that ``the all-others rate shall be 
equal to the weighted-average countervailable subsidy rates established 
for exporters and producers individually investigated, excluding any 
zero and de minimis countervailable subsidy rates, and any rates 
determined entirely under section 776 {of the Act{time} .'' Therefore, 
Commerce calculated the all-others rate using a weighted average of the 
individual estimated subsidy rates

[[Page 51334]]

calculated for the examined respondents using each company's publicly 
ranged sales value 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 values 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. As 
complete publicly ranged sales data were available, Commerce based 
the all-others rate on the publicly ranged sales data of the 
mandatory respondents. See Memorandum, ``Preliminary Determination 
of Subsidy Rate for All Others,'' dated May 31, 2022.
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Final Determination

    Commerce determines that the following estimated net 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Astrotech Steels Pvt. Ltd...............................            2.93
Geekay Wires Limited....................................            2.73
All Others..............................................            2.85
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Disclosure

    Commerce intends to disclose its calculations performed to 
interested parties in this final determination within five days of any 
public announcement, or if there is no public announcement, within five 
days of the 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 
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to suspend liquidation of entries 
of subject merchandise as described in the scope of the investigation 
section entered, or withdrawn from warehouse, for consumption on or 
after June 7, 2022, the date of publication of the Preliminary 
Determination in the Federal Register.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order and require a cash deposit of estimated countervailing duties for 
such entries of subject merchandise in the amounts indicated above, in 
accordance with section 706(a) of the Act. 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.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of steel nails 
from India. As Commerce's final determination is affirmative, in 
accordance with section 705(b) of the Act, the ITC will determine, 
within 45 days, whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports of steel nails from India. 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.

Administrative Protective Order

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the 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 771(i) of the Act, and 19 CFR 351.210(c).

    Dated: August 15, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix 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 proceeding 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

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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 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 these 
investigations 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 Issues and Decision Memorandum

I. Summary
II. Background
III. Subsidies Valuation Information
IV. Analysis of Programs
V. Analysis of Comments
    Comment 1: Whether Commerce Should Apply Adverse Facts Available 
(AFA) to Reported Benefits Based on the Government of India's (GOI) 
Incomplete Questionnaire Responses
    Comment 2: Whether Commerce Properly Initiated the Investigation 
and Met its Obligations Subject to the Agreement on Subsidies and 
Countervailing Measures (ASCM)
    Comment 3: Whether the GOI's System for Measuring Input 
Consumption for Duty Drawback (DDB) is Reasonable and Effective
    Comment 4: Whether the Export Promotion of Capital Goods Scheme 
(EPCGS) Confers a Countervailable Subsidy
    Comment 5: Whether the Merchandise Export from India Scheme 
(MEIS) Can Be Considered a ``Measure at Issue'' When It Was 
Discontinued Prior to the Initiation of This Investigation
    Comment 6: Whether the Special Economic Zone (SEZ) Programs are 
Countervailable
VI. Recommendation

[FR Doc. 2022-18045 Filed 8-19-22; 8:45 am]
BILLING CODE 3510-DS-P