[Federal Register Volume 87, Number 214 (Monday, November 7, 2022)]
[Notices]
[Pages 67016-67018]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-24213]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-105]


Carbon and Alloy Steel Threaded Rod From the People's Republic of 
China: Final Results of Countervailing Duty Administrative Review; 
2019-2020

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 the producers and 
exporters subject to the administrative review of carbon and alloy 
steel threaded rod (threaded rod) from the People's Republic of China 
(China) during the period of review (POR) July 29, 2019, through 
December 31, 2020.

DATES: Applicable November 7, 2022.

FOR FURTHER INFORMATION CONTACT: Thomas Schauer or 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) 482-0410 or (202) 
482-2805, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On May 6, 2022, Commerce published the preliminary results of the 
2019-2020 administrative review of the countervailing duty order on 
threaded rod from China.\1\ This review covers two mandatory 
respondents, Zhejiang Junyue Standard Part Co., Ltd. (Junyue) and 
Ningbo Zhongjiang High Strength Bolts Co., Ltd. (Zhongjiang Bolts), and 
three non-examined producers or exporters of subject merchandise. We 
invited interested parties to comment on the Preliminary Results.\2\ On 
June 6, 2022, we received timely case briefs from Vulcan Threaded 
Products Inc. (the petitioner), Junyue, and Zhongjiang Bolts. On June 
13, 2022, we received timely rebuttal briefs from the petitioner, 
Junyue, and Zhongjiang Bolts. For a complete description of the events 
that occurred since the Preliminary Results, see the Issues and 
Decision Memorandum.\3\
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    \1\ See Carbon and Alloy Steel Threaded Rod From the People's 
Republic of China: Preliminary Results of Countervailing Duty 
Administrative Review and Rescission of Administrative Review in 
Part; 2019-2020, 87 FR 27104 (May 6, 2022) (Preliminary Results), 
and accompanying Preliminary Decision Memorandum (PDM).
    \2\ See Preliminary Results, 87 FR at 27106.
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Results of the Countervailing Duty Administrative Review of 
Carbon and Alloy Steel Threaded Rod from the People's Republic of 
China; 2019-2020,'' dated concurrently with, and hereby adopted by, 
this notice (Issues and Decision Memorandum).
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Scope of the Order 4
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    \4\ See Carbon and Alloy Steel Threaded Rod from India and the 
People's Republic of China: Countervailing Duty Orders, 85 FR 19927 
(April 9, 2020) (Order).
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    The product covered by the Order is threaded rod from China. A full 
description of the scope of the Order is contained in the Issues and 
Decision Memorandum.

Analysis of Comments Received

    All issues raised by interested parties in briefs are addressed in 
the Issues and Decision Memorandum accompanying this notice. A list of 
the issues addressed in the Issues and Decision Memorandum is provided 
in the appendix to this notice. 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.

Changes Since the Preliminary Results

    Based on comments in case and rebuttal briefs and record evidence, 
Commerce made certain changes from the Preliminary Results regarding 
the calculation of wire rod and steel bar benchmarks and we have 
corrected several ministerial errors. As a result of these changes, the 
final rates for Junyue and Zhongjiang Bolts have changed and the rate 
for non-selected respondents also changed. These changes are explained 
in the Issues and Decision Memorandum.

Methodology

    Commerce conducted this administrative review in accordance with 
section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). 
For each subsidy program found to be countervailable, Commerce finds 
that there is a subsidy, i.e., a financial contribution from a 
government or public entity that gives rise to a benefit to the 
recipient, and that the subsidy is specific.\5\ For a full description 
of the methodology underlying all of Commerce's conclusions, including 
any determination that relied upon the use of adverse facts available 
pursuant to section 776(a) and (b) of the Act, see the Issues and 
Decision Memorandum.
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    \5\ 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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Companies Not Selected for Individual Review

    The statute and Commerce's regulations do not address the 
establishment of a rate to be applied to companies not selected for 
examination when Commerce limits its examination in an administrative 
review pursuant to section 777A(c)(2) of the Act. Generally, Commerce 
looks to section 705(c)(5) of the Act, which provides instructions for 
determining the all-others rate in an investigation, for guidance when 
calculating the rate for companies

[[Page 67017]]

which were not selected for individual examination in an administrative 
review. Under section 705(c)(5)(A) of the Act, the all-others rate is 
normally an amount equal to the weighted average of the countervailable 
subsidy rates established for exporters and producers individually 
investigated, excluding any zero or de minimis countervailable subsidy 
rates, and any rates determined entirely on the basis of facts 
available.
    There are three companies for which a review was requested and not 
rescinded, and which were not selected as mandatory respondents or 
found to be cross owned with a mandatory respondent: (1) Ningbo Dingtuo 
Imp. & Exp. Co., Ltd.; (2) Ningbo Dongxin High-Strength Nut Co., Ltd.; 
and (3) Ningbo Jinding Fastening Piece Co., Ltd. For these non-selected 
companies, because the rates calculated for the mandatory respondents, 
Junyue and Zhongjiang Bolts, were above de minimis and not based 
entirely on facts available, we are applying the weighted average of 
the net countervailable subsidy rates calculated for the mandatory 
respondents, which we calculated using the publicly-ranged sales data 
submitted by Junyue and Zhongjiang Bolts.\6\ This methodology to 
establish the non-selected subsidy rate is consistent with our practice 
with regard to the all-others rate, pursuant to section 705(c)(5)(A)(i) 
of the Act.
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    \6\ 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 quantities 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. 
See, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010); see also Memorandum, ``Administrative Review of 
the Countervailing Duty Order on Carbon and Alloy Steel Threaded Rod 
from the People's Republic of China: Calculation of Rate for 
Respondents Not Selected for Individual Examination,'' dated 
concurrently with this notice.
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Final Results of Administrative Review

    In accordance with 19 CFR 351.221(b)(5), Commerce calculated the 
following net countervailable subsidy rates for the period July 29, 
2019, through December 31, 2020:

------------------------------------------------------------------------
                                          Subsidy rate--  Subsidy rate--
                                           2019 (percent   2020 (percent
                 Company                    ad valorem)     ad valorem)
 
------------------------------------------------------------------------
Ningbo Zhongjiang High Strength Bolts               6.42            5.64
 Co., Ltd \1\...........................
Zhejiang Junyue Standard Part Co., Ltd              5.09            5.79
 \2\....................................
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   Review-Specific Average Rate Applicable to the Following Companies:
------------------------------------------------------------------------
Ningbo Dingtuo Imp. & Exp. Co., Ltd.....            5.94            5.69
Ningbo Dongxin High-Strength Nut Co.,               5.94            5.69
 Ltd....................................
Ningbo Jinding Fastening Piece Co., Ltd.            5.94            5.69
------------------------------------------------------------------------
\1\ In the original investigation, Commerce found Ningbo Zhongmin Metal
  Product Co., Ltd., to be cross-owned with Ningbo Zhongjiang High
  Strength Bolts Co., Ltd. See Carbon and Alloy Steel Threaded Rod from
  the People's Republic of China: Preliminary Affirmative Countervailing
  Duty Determination and Alignment of Final Determination With Final
  Antidumping Duty Determination, 84 FR 36578 (July 29, 2019), and
  accompanying PDM, at 28, unchanged in Carbon and Alloy Steel Threaded
  Rod from the People's Republic of China: Final Affirmative
  Countervailing Duty Determination, 85 FR 8833 (February 18, 2020). As
  the facts have not changed in this review, we continue to find Ningbo
  Zhongmin Metal Product Co., Ltd., to be cross-owned with Ningbo
  Zhongjiang High Strength Bolts Co., Ltd. See also Preliminary Results
  PDM.
\2\ As discussed in the Preliminary Results PDM, Commerce finds the
  following companies to be cross-owned with Zhejiang Junyue Standard
  Part Co., Ltd.: Jiaxing Chengyue Trading Co., Ltd.; and Haiyan County
  Brothers Paper Industry Co., Ltd.

Disclosure

    We intend to disclose the calculations performed in connection with 
the final results of review to parties in this proceeding within five 
days after public announcement of the final results or, if there is no 
public announcement, within five days of the date of publication of the 
notice of final results in the Federal Register, in accordance with 19 
CFR 351.224(b).

Assessment Rates

    Pursuant to section 751(a)(2)(C) of the Act and 19 CFR 
351.212(b)(2), Commerce will determine, and U.S. Customs and Border 
Protection (CBP) shall assess, countervailing duties on all appropriate 
entries of subject merchandise covered by this review. We intend to 
issue assessment instructions to CBP no earlier than 35 days after the 
date of publication of these final results of review. If a timely 
summons is filed at the U.S. Court of International Trade, the 
assessment instructions will direct CBP not to liquidate relevant 
entries until the time for parties to file a request for a statutory 
injunction has expired (i.e., within 90 days of publication).

Cash Deposit Instructions

    In accordance with section 751(a)(1) of the Act, Commerce intends 
to instruct CBP to collect cash deposits of estimated countervailing 
duties in the amounts shown for each of the respective companies listed 
above on shipments of subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
final results of this administrative review. For all non-reviewed firms 
subject to the Order, we will instruct CBP to continue to collect cash 
deposits of estimated countervailing duties at the most recent company-
specific or all-others rate applicable to the company, as appropriate. 
These cash deposit requirements, effective upon publication of the 
final results of review, shall remain in effect until further notice.

Administrative Protective Order

    This notice also serves as a reminder to parties subject to an 
administrative protective order (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 or 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 sanctionable 
violation.

Notification to Interested Parties

    Commerce is issuing and publishing the final results of review in 
accordance

[[Page 67018]]

with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
351.221(b)(5).

    Dated: November 1, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Changes Since the Preliminary Results
V. Non-Selected Companies Under Review
VI. Subsidies Valuation Information
VII. Interest Rates, Discount Rates, and Benchmarks
VIII. Use of Facts Otherwise Available and Application of Adverse 
Inferences
IX. Analysis of Programs
X. Analysis of Comments
    Comment 1: Whether Commerce Should Apply Adverse Facts Available 
(AFA) to the Export Buyer's Credit (EBC) Program
    Comment 2: Wire Rod and Steel Bar Benchmarks Calculation
    Comment 3: Ocean Freight Benchmark Calculation
    Comment 4: Whether Haiyan County Brothers Paper Industry Co., 
Ltd. (Brother Paper) Is Cross-Owned With Junyue
    Comment 5: Whether Commerce Should Countervail Certain of 
Junyue's Purchases of Electricity
    Comment 6: Whether Commerce Should Revise Its Calculation of 
Junyue's Benefits for Policy Loans and Discount Notes
    Comment 7: Whether Commerce Should Revise Its Calculation of 
Zhongjiang Bolts Benefits for Policy Loans
    Comment 8: Whether Commerce Should Revise Its Calculation of the 
Subsidy Rate for Certain ``Other Subsidies''
    Comment 9: Whether Commerce Should Revise Its Calculation of 
Zhongjiang Bolts' Subsidy Rate for Outbound Ocean Freight Rates for 
Less Than Adequate Remuneration (LTAR)
XI. Recommendation

[FR Doc. 2022-24213 Filed 11-4-22; 8:45 am]
BILLING CODE 3510-DS-P