[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Notices]
[Pages 77072-77073]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27330]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-580-829]


Stainless Steel Wire Rod From the Republic of Korea: Preliminary 
Negative Determination of Circumvention of the Antidumping Order 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 U.S. imports of stainless steel round wire (SSWire) 
from the Socialist Republic of Vietnam (Vietnam) are not circumventing 
the antidumping duty (AD) order on stainless steel wire rod (SSWR) from 
the Republic of Korea (Korea).

DATES: Applicable December 16, 2022.

FOR FURTHER INFORMATION CONTACT: Hermes Pinilla or Byeong-hun You, 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) 482-3477 or (202) 
482-1018, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On September 15, 1998, Commerce published the order on imports of 
SSWR from Korea.\1\ On May 18, 2021, North American Stainless (NAS) 
requested that Commerce initiate a circumvention inquiry, pursuant to 
section 781(c) of the Tariff Act of 1930, as amended (the Act), to 
determine whether SSWire from Vietnam involves a minor alteration to 
subject merchandise, such that it should be subject to the Order.\2\ On 
February 1, 2022, Commerce initiated a country-wide circumvention 
inquiry to determine whether U.S. imports of SSWire from Vietnam 
involves a minor alteration to subject merchandise, such that it should 
be subject to the order on SSWR from Korea.\3\
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    \1\ See Notice of Amendment of Final Determination of Sales at 
Less Than Fair Value and Antidumping Duty Order: Stainless Steel 
Wire Rod from Korea, 63 FR 49331 (September 15, 1998) (Order).
    \2\ See NAS's Letter, ``Request for Circumvention Ruling 
Pursuant to Section 781(c),'' dated May 18, 2021 (Circumvention 
Allegation).
    \3\ See Stainless Steel Wire Rod from the Republic of Korea: 
Initiation of Circumvention Inquiry of Antidumping Duty Order, 87 FR 
5468 (February 1, 2022).
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    On March 25, 2022, Commerce selected KOS Vietnam Company Ltd., (KOS 
Vietnam), Kuang Tai Metal (Vietnam) Company, Ltd. (Kuang Tai Metal) and 
Tengyuan Wire (Vietnam) Company Limited (Tengyuan Wire), as the 
mandatory respondents in this circumvention inquiry.\4\ In March 2022, 
Commerce issued questionnaires to the three respondents.\5\ In May 
2022, all three respondents submitted timely responses.\6\
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    \4\ See Memorandum, ``Respondent Selection,'' dated March 25, 
2022.
    \5\ See Commerce's Letters, ``Circumvention Inquiry Initial 
Questionnaire,'' dated March 29, 2022.
    \6\ See Kuang Tai Metal's Questionnaire Response, ``Response to 
questionnaire dated March 29, 2022,'' submitted on May 13, 2022 
(Kuang Tai Metal's Qre Response); see also KOS Vietnam's Letter, 
``Initial Questionnaire Response,'' dated May 17, 2022 (KOS 
Vietnam's Qre Response); and Teng Yuan Wire's Questionnaire 
Response, ``Response to questionnaire dated March 29, 2022,'' dated 
May 10, 2022 (Teng Yuan Wire's Qre Response).
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    Between June and August 2022, we issued multiple supplemental 
questionnaires to KOS Vietnam, Kuang Tai Metal, and Tengyuan Wire and 
received timely responses.\7\
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    \7\ See Kuang Tai's Letter, ``Circumvention Supplemental 
Questionnaire,'' dated July 06, 2022 (Kuang Tai Metal SQR); see also 
KOS Vietnam's Letter, ``Supplemental Questionnaire Response'' dated 
July 13, 2022 (KOS Vietnam SQR); Tengyuan Wire's' Letter, 
``Circumvention Inquiry Initial Questionnaire,'' dated July 20, 2022 
(Tengyuan SQR); Kuang Tai Metal's Letter, ``Circumvention Inquiry 
2nd Supplemental Questionnaire,'' dated August 3, 2022 (Kuang Tai 
Metal 2nd SQR); KOS Vietnam's Letter, ``Second Supplemental 
Questionnaire Response, dated August 23, 2022 (KOS Vietnam 2nd SQR); 
and, Tengyuan Wire's Letter, ``Circumvention Inquiry Initial 
Questionnaire,'' dated August 23, 2022 (Tengyuan Wire 2nd SQR).
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    On September 14, 2022, the domestic interested party, North 
American Stainless (NAS) filed pre-preliminary comments.\8\ On 
September 20, 2022, Tengyuan Wire submitted pre-preliminary rebuttal 
comments.\9\ On September 23, 2022, KOS Vietnam submitted pre-
preliminary rebuttal comments.\10\
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    \8\ See NAS' Letter, ``NAS's Pre-Preliminary Comments,'' dated 
September 15, 2022 (NAS Pre-Prelim Comments).
    \9\ See Tengyuan Wire's Letter, ``Pre-Preliminary Rebuttal 
Comments,'' dated September 20, 2022 (Tengyuan Wire's Rebuttal 
Comments).
    \10\ See KOS Vietnam's Letter, ``KOS Vietnam's Pre-Preliminary 
Rebuttal Comments,'' dated September 26, 2022 (KOS Vietnam's 
Rebuttal Comments).
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Scope of the Order \11\
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    \11\ See Order.
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    For a full description of the scope of the Order, see the 
Preliminary Decision Memorandum.\12\
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    \12\ See Memorandum, ``Stainless Steel Wire Rod from the 
Republic of Korea: Preliminary Decision Memorandum for the 
Circumvention Inquiry on the Antidumping Duty Order,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum) at 3-4.
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Merchandise Subject to the Circumvention Inquiry

    This circumvention inquiry covers SSWire completed in Vietnam using 
Korea-origin SSWR and subsequently exported from Vietnam to the United 
States

Statutory and Regulatory Framework

    Section 781(c) of the Act, provides that Commerce may find 
circumvention of an AD or CVD order when merchandise of the same class 
or kind as subject merchandise has been ``altered in form or appearance 
in minor respects...whether or not included in the same tariff 
classification.'' Further, section 781(c)(2) of the Act provides an 
exception that ``{p{time} aragraph 1 shall not apply with respect to 
altered merchandise if the administering authority determines that it 
would be unnecessary to consider the altered merchandise within the 
scope of the {order{time} .''
    While the Act is silent as to what factors to consider in 
determining whether alterations are properly considered ``minor,'' the 
legislative history of this provision indicates that there are certain 
factors that should be considered before reaching a circumvention 
determination. In conducting a circumvention inquiry under section 
781(c) of the Act, Commerce has generally relied upon ``such criteria 
as the overall physical characteristics of the merchandise, the 
expectations of the ultimate users, the use of the merchandise, the 
channels of marketing and the cost of any modification relative to the 
total value of the imported products.'' \13\ Concerning the allegation 
of minor alteration under section 781(c) of the Act, Commerce examines 
such factors as: (1) overall physical characteristics;

[[Page 77073]]

(2) expectations of ultimate users; (3) use of merchandise; (4) 
channels of marketing; and (5) cost of any modification relative to the 
value of the imported products.\14\ Each inquiry is highly dependent on 
the facts on the record and must be analyzed in light of those specific 
facts.\15\ Thus, along with the five factors enumerated above, Commerce 
may also consider the circumstances under which the products enter the 
United States, including, but not limited to, the timing of the entries 
and the quantity of merchandise entered during the circumvention review 
period.\16\
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    \13\ See Carbon and Certain Alloy Steel Wire Rod from Mexico: 
Initiation of Anti-Circumvention Inquiry of Antidumping Duty Order, 
83 FR 5405 (February 7, 2018) (citing S. rep. No 71, 100th Cong., 
1sr Sess. 100 (1987)).
    \14\ Id.; see also Deacero S.A. de C.V. v. United States, 817 
F.3d 1332 (Fed. Cir. 2016).
    \15\ See, e.g., Certain Uncoated Paper from Australia, Brazil, 
the People's Republic of China, Indonesia, and Portugal: Affirmative 
Preliminary Determination of Circumvention of the Antidumping and 
Countervailing Duty Orders, 82 FR 26778 (June 9, 2017), and 
accompanying Preliminary Decision Memorandum, at ``IV. Statutory and 
Regulatory Framework.''
    \16\ Id.; see also Affirmative Preliminary Determination of 
Circumvention of the Antidumping Duty Order on Certain Cut-to-Length 
Steel Plate from the People's Republic of China, 74 FR 33991, 33992-
93 (July 14, 2009); Brass Sheet and Strip from West Germany; 
Negative Final Determination of Circumvention of Antidumping Duty 
Order, 56 FR 65884 (December 19, 1991); and Small Diameter Graphite 
Electrodes from the People's Republic of China: Initiation of 
Anticircumvention Inquiry, 77 FR 37873 (June 25, 2012).
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Preliminary Determination

    As detailed in the Preliminary Decision Memorandum, Commerce 
preliminarily determines that the SSWire completed in Vietnam using 
Korea-origin SSWR and subsequently exported from Vietnam to the United 
States is not circumventing the Order on a country-wide basis. 
Accordingly, Commerce is making a negative preliminary finding of 
circumvention of the Order.

Methodology

    As noted above, Commerce is conducting this circumvention inquiry 
in accordance with section 781(c) of the Act. For a complete 
description of the events that followed the initiation of these 
circumvention inquiries, see the Preliminary Decision Memorandum. A 
list of topics included in the Preliminary Decision Memorandum is 
included as an Appendix 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.

Verification

    As provided in 19 CFR 351.307, Commerce intends to verify 
information relied upon in making its final determination.

Public Comment

    Because Commerce intends to conduct verification, interested 
parties will be provided an opportunity to submit written comments 
(case briefs) at a date to be determined by Commerce and rebuttal 
comments (rebuttal briefs) within seven days after the time limit for 
filing case briefs.\17\ Parties who submit case briefs or rebuttal 
briefs in this proceeding 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.\18\ Case and rebuttal briefs should be 
filed electronically via ACCESS.\19\ Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\20\
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    \17\ See 19 CFR 351.309(c)(l)(ii) and 351.309(d)(l). Interested 
parties will be notified through ACCESS regarding the deadline for 
submitting case briefs; see also 19 CFR 351.303 (for general filing 
requirements).
    \18\ See 19 CFR 351.309(c)(2)(d)(2).
    \19\ See 19 CFR 351.303.
    \20\ 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. 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.

Postponement of Final Determination

    In accordance with 19 CFR 351.302(b), unless expressly precluded by 
the statute, Commerce, may, for good cause, extend any time limit. As 
we indicate above, Commerce intends to conduct verification of 
information relied upon, pursuant to 19 CFR 351.307, prior to issuing 
it final determination. As such, Commerce has determined that 
additional time is necessary to issue the final determination of this 
circumvention inquiry. Therefore, in accordance with 19 CFR 351.302(b), 
we are extending the deadline for issuing the final determination of 
this circumvention inquiry by 120 days, until April 11, 2023.

Notification to Interested Parties

    This determination is issued and published in accordance with 
section 781(c) of the Act and 19 CFR 351.226(g)(1).

    Dated: December 12, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Circumvention Inquiry
V. Period of Circumvention Inquiry
VI. Surrogate Countries and Methodology for Valuing Inputs From 
Korea and Processing in Vietnam
VII. Legal Framework
VIII. Application of Facts Otherwise Available and Adverse 
Inferences
IX. Statutory Analysis for the Circumvention Inquiry
X. Summary of Statutory Analysis
XI. Verification
XII. Country-Wide Preliminary Negative Determination of 
Circumvention
XIII. Recommendation

[FR Doc. 2022-27330 Filed 12-15-22; 8:45 am]
BILLING CODE 3510-DS-P