[Federal Register Volume 88, Number 132 (Wednesday, July 12, 2023)]
[Notices]
[Pages 44277-44279]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14804]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-104, C-570-105]


Alloy and Certain Carbon Steel Threaded Rod From the People's 
Republic of China; Carbon and Alloy Steel Threaded Rod From the 
People's Republic of China: Initiation of Circumvention Inquiries on 
the Antidumping Duty Order and Countervailing Duty Order

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

SUMMARY: In response to a request from Vulcan Threaded Products Inc. 
(Vulcan), the U.S. Department of Commerce (Commerce) is initiating 
country-wide circumvention inquiries to determine whether steel 
threaded rod, made from alloy steel, that is produced in the United 
States from unthreaded pins imported from the People's Republic of 
China (China) is circumventing the antidumping duty (AD) order on alloy 
and certain carbon steel threaded rod from China and the countervailing 
duty (CVD) order on carbon and alloy steel threaded rod from China.

DATES: Applicable July 12, 2023.

FOR FURTHER INFORMATION CONTACT: Robert Galantucci; AD/CVD Operations, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230; telephone: (202) 482-2923.

SUPPLEMENTARY INFORMATION:

Background

    On May 22, 2023, pursuant to section 781(a) of the Tariff Act of 
1930, as amended (the Act), and 19 CFR 351.226(c), Vulcan filed a 
request for circumvention inquiries \1\ alleging that steel threaded 
rod completed in the United States using unthreaded pins imported from 
China was circumventing the AD and CVD orders on steel

[[Page 44278]]

threaded rod from China.\2\ On June 14, 2023, we issued a supplemental 
questionnaire to Vulcan,\3\ and we extended the time period for 
determining whether to initiate circumvention inquiries by 15 days, 
until July 6, 2023.\4\
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    \1\ See Vulcan's Letter, ``Request for Circumvention Inquiry,'' 
dated May 22, 2023 (Circumvention Request).
    \2\ Vulcan's Circumvention Request related to three separate 
orders: (1) Certain Steel Threaded Rod from the People's Republic of 
China: Notice of Antidumping Duty Order, 74 FR 17154 (April 14, 
2009) (2009 AD Order); (2) Alloy and Certain Carbon Steel Threaded 
Rod From the People's Republic of China: Antidumping Duty Order, 85 
FR 19929 (April 9, 2020) (2020 AD Order); and (3) Carbon and Alloy 
Steel Threaded Rod From India and the People's Republic of China: 
Countervailing Duty Orders, 85 FR 19927 (April 9, 2020) (2020 CVD 
Order).
    \3\ See Commerce's Letter, ``Request for Circumvention 
Inquiries--Supplemental Questionnaire,'' dated June 14, 2023.
    \4\ See Memorandum, ``Extension of Time to Determine Whether to 
Initiate Circumvention Inquiries,'' dated June 14, 2023.
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    On June 15, 2023, Commerce received a submission from Birmingham 
Fastener Inc. and Dan-Loc Group LLC, importers and U.S. producers of 
steel threaded rod, opposing initiation of circumvention inquiries.\5\ 
On June 22, 2023, Vulcan responded to Commerce's questionnaire.\6\
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    \5\ See Birmingham/Dan-Loc's Letter, ``Opposition to Request for 
Circumvention Inquiry,'' dated June 14, 2023.
    \6\ See Vulcan's Letter, ``Response to Supplemental 
Questionnaire,'' dated June 22, 2023 (Vulcan June 22, 2023 SQR).
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Scope of the Orders

    The merchandise covered by these orders is alloy and carbon steel 
threaded rod from China. A full description of the scope of the orders 
is provided in the Initiation Checklists.\7\
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    \7\ See Initiation Checklists, ``Circumvention Initiation 
Checklist,'' dated concurrently with, and hereby adopted by, this 
notice (AD Checklist--2020 Order), at Attachment I; and 
``Circumvention Initiation Checklist,'' dated concurrently with, and 
hereby adopted by, this notice (CVD Checklist--2020 Order), at 
Attachment I.
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Merchandise Subject to the Circumvention Inquiries

    These circumvention inquiries cover steel threaded rod, made from 
alloy steel, completed in the United States using unthreaded pins 
imported from China.

Initiation of Circumvention Inquiries

    Section 351.226(d) of Commerce's regulations states that, if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
request for a circumvention inquiry allege ``that the elements 
necessary for a circumvention determination under section 781 of the 
Act exist'' and be ``accompanied by information reasonably available to 
the interested party supporting these allegations.'' Vulcan alleges 
circumvention pursuant to section 781(a) of the Act (merchandise 
completed or assembled in the United States).
    Section 781(a)(1) of the Act provides that Commerce may find 
circumvention of an order when merchandise of the same class or kind 
subject to the order is completed or assembled in the United States 
from parts or components produced in the country subject to the order. 
In conducting a circumvention inquiry under section 781(a)(1) of the 
Act, Commerce relies on the following criteria: (A) merchandise sold in 
the United States is of the same class or kind as any merchandise that 
is the subject of an AD or CVD order; (B) such merchandise sold in the 
United States is completed or assembled in the United States from parts 
or components produced in the foreign country with respect to which 
such order applies; (C) the process of assembly or completion in the 
United States is minor or insignificant; and (D) the value of the parts 
or components referred to in subparagraph (B) is a significant portion 
of the total value of the merchandise.
    No single factor, by itself, controls Commerce's determination of 
whether the process of assembly or completion in the United States is 
minor or insignificant within the meaning of 781(a) of the Act.\8\ 
Accordingly, it is Commerce's practice to evaluate each of the five 
criteria specified therein, and to reach an affirmative or negative 
circumvention determination based on the totality of the circumstances 
of the particular circumvention inquiry.\9\
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    \8\ See Statement of Administrative Action Accompanying the 
Uruguay Round Agreements Act, H.R. Doc. No. 103-316, Vol. 1 (1994), 
at 893.
    \9\ See, e.g., Hydrofluorocarbon Blends from the People's 
Republic of China: Final Negative Scope Ruling on Gujarat 
Fluorochemicals Ltd.'s R-410A Blend; Affirmative Final Determination 
of Circumvention of the Antidumping Duty Order by Indian Blends 
Containing CCC Components, 85 FR 61930 (October 1, 2020), and 
accompanying Issues and Decision Memorandum at 20 (specifying the 
applicable standard in the context of an inquiry under section 
781(b) of the Act).
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    Furthermore, section 781(a)(3) of the Act sets forth additional 
factors to consider in determining whether to include merchandise 
assembled or completed in the United States within the scope of an AD 
or CVD order. Specifically, Commerce shall take into account such 
factors as: (A) the pattern of trade, including sourcing patterns; (B) 
whether the manufacturer or exporter of the parts or components is 
affiliated with the entity that assembles or completes the merchandise 
sold in the United States from the parts or components produced in the 
foreign country to which the order applies; and (C) whether imports 
into the United States of the parts or components produced in such 
foreign country have increased after the initiation of the 
investigation that resulted in the issuance of such order. As discussed 
below, Vulcan provided allegations and supporting evidence with respect 
to the above-refenced criteria as they relate to products within the 
2020 AD Order and the 2020 CVD Order.

Analysis

    Based on our analysis \10\ of Vulcan's request for circumvention 
inquiries, we determine that Vulcan satisfied the criteria set forth by 
19 CFR 351.226(c) with respect to the certain products within the 2020 
AD Order (i.e., A-570-104, covering alloy and certain carbon steel 
threaded rod from China) and the 2020 CVD Order (i.e., C-570-105, 
covering carbon and alloy steel threaded rod from China). Vulcan did 
not provide evidence in support of its allegation as it relates to 
carbon-quality steel products; therefore, Vulcan's request did not meet 
the requirements set forth by 19 CFR 351.226(c) with respect to the 
2009 AD Order (i.e., A-570-932, which covers carbon quality steel 
threaded rod from China),\11\ or the carbon steel threaded rod 
contained in the 2020 AD Order and the 2020 CVD Order. Accordingly, 
pursuant to 19 CFR 351.226(d)(1)(ii), we have accepted Vulcan's request 
with respect to the alloy products covered by the 2020 AD Order and the 
2020 CVD Order and are initiating circumvention inquiries for these 
orders with respect to alloy steel threaded rod. For a full discussion 
of the basis for our decision to initiate these circumvention 
inquiries, see Initiation Checklists.
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    \10\ See generally AD Checklist--2020 Order; and CVD Checklist--
2020 Order; see also Commerce's Letter, ``Rejection of Circumvention 
Request,'' dated July 6, 2023.
    \11\ See Vulcan June 22, 2023 SQR at 2 (``Vulcan is not aware of 
any publicly available information indicating that circumvention is 
currently occurring with respect to the antidumping duty order on 
carbon steel threaded rod from China (A-570-932).'').
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    Furthermore, pursuant to 19 CFR 351.226(c)(2)(iii) and (v), Vulcan 
asserted that the company-specific information underlying its 
allegation was likely representative of the broader universe of 
circumvention. Accordingly, Vulcan stated that it is appropriate to 
conduct these inquiries on a country-wide basis; the company identified 
prior instances where Commerce considered

[[Page 44279]]

allegations to be generally applicable (rather than company-specific), 
and also alleged that there was the potential for unaddressed evasion 
absent country-wide inquiries.\12\ Based on these considerations, 
Commerce is initiating these circumvention inquiries on a country-wide 
basis.
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    \12\ See Circumvention Request at 27.
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Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs 
and Border Protection (CBP) of the initiation of circumvention 
inquiries and will direct CBP to continue the suspension of liquidation 
of entries of products subject to these circumvention inquiries that 
were already subject to the suspension of liquidation under the orders 
and to apply the cash deposit rate that would be applicable if the 
products were determined to be covered by the applicable scope. Should 
Commerce issue affirmative preliminary or final circumvention 
determinations, Commerce will follow the suspension of liquidation 
rules under 19 CFR 351.226(l)(2)-(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(a) of the Act, 
Commerce determines that Vulcan's request for circumvention inquiries 
relating to the 2020 AD Order and the 2020 CVD Order satisfies the 
requirements of 19 CFR 351.226(c). Accordingly, Commerce is notifying 
all interested parties of the initiation of these circumvention 
inquiries to determine whether alloy steel threaded rod produced in the 
United States from unthreaded pins imported from China is circumventing 
these orders.
    Additionally, we are hereby providing interested parties with an 
opportunity to comment on any additional entities--i.e., importers, 
exporters, producers--that are involved in the supply, sale, or 
production related to alloy steel threaded rod completed in the United 
States using unthreaded pins imported from China. Comments on the 
identity of such entities are due within seven days of publication of 
this notice in the Federal Register.
    We have included a description of the products that are subject to 
these inquiries and an explanation of Commerce's decision to initiate 
in the accompanying Initiation Checklists.\13\ In accordance with 19 
CFR 351.226(e)(1), Commerce intends to issue its preliminary 
circumvention determinations no later than 150 days from the date of 
publication of the notice of initiation of these circumvention 
inquiries in the Federal Register.
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    \13\ See generally AD Checklist--2020 Order; and CVD Checklist--
2020 Order.
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    This notice is published in accordance with section 781(a) of the 
Act and 19 CFR 351.226(d)(1)(ii).

    Dated: July 6, 2023,
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-14804 Filed 7-11-23; 8:45 am]
BILLING CODE 3510-DS-P