[Federal Register Volume 87, Number 161 (Monday, August 22, 2022)]
[Notices]
[Pages 51337-51339]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18050]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-542-805]


Certain Steel Nails From Sri Lanka: 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 Sri Lanka.

DATES: Applicable August 22, 2022.

FOR FURTHER INFORMATION CONTACT: Nathan James, 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) 482-5305.

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 Sri Lanka: Preliminary 
Affirmative Countervailing Duty Determination, 87 FR 34645 (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 Sri Lanka,'' 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 January 1, 2020, through December 
31, 2020.

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

    On July 5, 2022, Commerce issued the Preliminary Scope 
Memorandum.\3\ 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, 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 to be 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,

[[Page 51338]]

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 Letter, ``In Lieu of Verification 
Questionnaire,'' dated June 6, 2022; see also Trinity Steel's 
Letter, ``Trinity In Lieu of Verification Questionnaire Response,'' 
dated June 14, 2022.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we did not make changes to the subsidy rate calculations for 
Trinity Steel Private Limited (Trinity Steel).

All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated a countervailable subsidy rate for the individually 
investigated exporter and producer (i.e., Trinity Steel). 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 all other exporters and 
producers not individually investigated. Section 705(c)(5)(A) of the 
Act states that Commerce shall determine an all-others rate for 
companies not individually examined. Section 705(c)(5)(A)(i) of the Act 
states that ``the all-others rate shall be an amount 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} .'' Commerce calculated an 
individual estimated countervailable subsidy rate for Trinity Steel 
that is not zero, de minimis, or based entirely on facts otherwise 
available. Accordingly, we have assigned Trinity Steel's subsidy rate 
to all other producers and exporters, pursuant to section 
705(c)(5)(A)(i) of the Act.

Final Determination

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

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Trinity Steel Private Limited...........................            4.12
All Others..............................................            4.12
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Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a final determination within five days of 
any public announcement or, if there is no public announcement, within 
five days of the date of publication of the notice of final 
determination in the Federal Register, in accordance with 19 CFR 
351.224(b). However, because there are no changes to the calculations 
from the Preliminary Determination, no additional disclosure is 
necessary.

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 Sri Lanka. 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 Sri Lanka. 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

[[Page 51339]]

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 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 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 Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation Information
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Whether Commerce Should Revise the Base Rate of 
Taxation Used in its Income Tax Exemption Benefit Calculation
    Comment 2: Whether Commerce Should Alter its Treatment of 
Certain Income Tax Deductions
    Comment 3: Whether the Board of Investment's (BOI) Provision of 
Land to Trinity Steel is Countervailable
    A. Investigation into Countervailability of Trinity Steel's Land 
Acquisition
    B. Selection of the Land Benchmark
    Comment 4: Whether Commerce Should Continue to Countervail 
Import Duty Exemptions on Raw Material Imports
VII. Recommendation

[FR Doc. 2022-18050 Filed 8-19-22; 8:45 am]
BILLING CODE 3510-DS-P