[Federal Register Volume 89, Number 166 (Tuesday, August 27, 2024)]
[Notices]
[Pages 68586-68589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19200]



[[Page 68586]]

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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: Final Affirmative Determination of 
Circumvention of the Antidumping and Countervailing Duty Orders

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
imports of unthreaded pins of alloy steel from the People's Republic of 
China (China) are circumventing the antidumping duty order on alloy and 
certain carbon steel threaded rod from China and the countervailing 
duty order on carbon and alloy steel threaded rod from China.

DATES: Applicable August 27, 2024.

FOR FURTHER INFORMATION CONTACT: Zachary Krivine, 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) 482-3638.

SUPPLEMENTARY INFORMATION:

Background

    On March 14, 2024, pursuant to section 781(e)(1)(A) of the Tariff 
Act of 1930, as amended (the Act), Commerce published the Preliminary 
Determination and invited interested parties to comment.\1\ We notified 
the U.S. International Trade Commission (ITC) of our affirmative 
preliminary determination.\2\ Commerce also informed the ITC of its 
ability under the Act to request consultations with Commerce regarding 
Commerce's proposed inclusion of inquiry merchandise within the scope 
of the Orders under the authority of section 781(a) of the Act.\3\
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    \1\ See 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: Affirmative Preliminary 
Determination of Circumvention of the Antidumping and Countervailing 
Duty Orders, 89 FR 18600 (March 14, 2024) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ See Commerce's Letter, ``Preliminary Affirmative 
Determinations of Circumvention,'' dated March 11, 2024.
    \3\ Id.
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    On March 29, 2024, Birmingham Fastener Inc./Houston Fastener Mfg. 
Inc. (Birmingham) and Dan Loc Group LLC (Dan Loc) \4\ and Vulcan 
Threaded Products Inc. (the petitioner) filed case briefs.\5\ On April 
5, 2024, Birmingham and Dan Loc,\6\ and the petitioner filed rebuttal 
briefs.\7\ On May 31, 2024, Commerce held a public hearing in this 
matter.\8\
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    \4\ See Birmingham and Dan Loc's Letter, ``Case Brief on Behalf 
of Birmingham Fastener, Inc., Houston Fastener, Inc. And Dan-Loc 
Group LLC,'' dated March 29, 2024.
    \5\ See Petitioner's Letter, ``Petitioner's Case Brief,'' dated 
March 29, 2024.
    \6\ See Birmingham and Dan Loc's Letter, ``Rebuttal Brief on 
Behalf of Birmingham Fastener, Inc., Houston Fastener, Inc. And Dan-
Loc Group LLC,'' dated April 5, 2024.
    \7\ See Petitioner's Letter, ``Petitioner's Rebuttal Brief,'' 
dated April 5, 2024.
    \8\ See Hearing Transcript, ``In the Matter of: Circumvention 
Inquiries Regarding Antidumping Duty Order and Countervailing Duty 
Order on Carbon and Alloy Steel Threaded Rod from the People's 
Republic of China,'' dated May 31, 2024.
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    On July 22, 2024, Commerce tolled the deadline in these 
circumvention inquiries by seven days, extending the deadline for 
issuing the final determination to August 16, 2024.\9\ On August 16, 
2024, Commerce extended the deadline for issuing the final 
determination in these circumvention inquiries by an additional five 
days, until August 21, 2024.\10\
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    \9\ See Memoranda, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024; ``Extension 
of Deadline for Final Determination in Circumvention Inquiries,'' 
dated April 30, 2024; and ``Second Extension of Deadline for Final 
Determination in Circumvention Inquiries,'' dated June 28, 2024.
    \10\ See Memorandum, ``Additional Extension of Final 
Determination in Circumvention Inquiries,'' dated August 16, 2024.
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    For a summary of events that occurred since the Preliminary 
Determination, as well as a full discussion of the issues raised by 
parties for consideration in the final determination, see the Issues 
and Decision Memorandum.\11\ 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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    \11\ See Memorandum, ``Decision Memorandum for the Final 
Determination in the Circumvention Inquiries Regarding the 
Antidumping Duty Order on Alloy and Certain Carbon Steel Threaded 
Rod from the People's Republic of China and the Countervailing Duty 
Order on Carbon and Alloy Steel Threaded Rod from the People's 
Republic of China,'' dated concurrently with, and hereby adopted by, 
this notice (Issues and Decision Memorandum).
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Scope of the Orders 12
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    \12\ See Alloy and Certain Carbon Steel Threaded Rod from the 
People's Republic of China: Antidumping Duty Order, 85 FR 19929 
(April 9, 2020) (AD Order); and Carbon and Alloy Steel Threaded Rod 
from India and the People's Republic of China: Countervailing Duty 
Orders, 85 FR 19927 (April 9, 2020) (CVD Order) (collectively, 
Orders).
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    The merchandise covered by the scope of the AD Order is alloy and 
certain carbon steel threaded rod from China. The merchandise covered 
by the scope of the CVD Order is carbon and alloy steel threaded rod 
from China. For a full description of the scopes, see the Preliminary 
Determination PDM.

Merchandise Subject to the Circumvention Inquiry

    These circumvention inquiries cover unthreaded pins of alloy steel 
exported from China which are further processed into alloy steel 
threaded rod in the United States. Unthreaded pins of alloy steel are 
unthreaded rod, bar, or studs, having a solid, circular cross section 
of any diameter, in any straight length, and are non-headed. Unthreaded 
pins may enter unchamfered or with their ends already chamfered. Such 
pins may also be referenced as ``pitch diameter stud blanks'' or 
``blanks.'' Unthreaded pins of alloy steel are believed to enter under 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings 
7318.15.5051, 7318.15.5056, 7318.15.5090, 7228.60.8000, 7318.15.2095, 
7318.19.0000, and 7318.29.0000, several of which also cover alloy steel 
threaded rod.

Methodology

    Commerce conducted these circumvention inquiries in accordance with 
section 781(a) of the Act and 19 CFR 351.226. We have continued to 
apply the methodology relied upon for the Preliminary Determination, 
including our use of facts available with adverse inferences with 
respect to Ningbo Zhenghai Yongding Fastener Co., Ltd. (Yongding 
Fastener) and its affiliated trading company, Ningbo Ningding Import & 
Export Co. Ltd. (Ningding I&E),\13\ pursuant to sections 776(a) and (b) 
of the Act, for our final determination. See the Preliminary 
Determination PDM for a full description of the methodology.\14\
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    \13\ Yongding Fastener exports through Ningding I&E. As in the 
Preliminary Determination, as adverse facts available, we are 
treating Yongding Fastener and Ningding I&E, its affiliated trading 
company, as a single entity.
    \14\ See Preliminary Determination PDM at 4-30.
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Analysis of Comments Received

    All issues raised in these inquiries are addressed in the Issues 
and Decision Memorandum. A list of the issues raised

[[Page 68587]]

is attached to this notice in Appendix I. Based on our analysis of the 
comments received from interested parties, we made no changes to the 
Preliminary Determination.

Final Circumvention Determination

    As detailed in the Issues and Decision Memorandum, Commerce 
determines, pursuant to section 781(a) of the Act, that imports of 
unthreaded pins of alloy steel from China that are further processed in 
the United States into subject merchandise are circumventing the 
Orders. We are applying our decision on a country-wide basis. See the 
``Suspension of Liquidation and Cash Deposit Requirements'' section, 
below, for details regarding suspension of liquidation and cash deposit 
requirements.

Certification Requirements

    To administer this final affirmative circumvention determination, 
Commerce is requiring that importers of unthreaded pins of alloy steel 
from China which will not be threaded into subject merchandise certify 
that such pins will not be further processed into subject alloy steel 
threaded rod. Importers will be required to submit a copy of the 
importer certification as part of the entry summary by uploading them 
into the document imaging system (DIS) in ACE, and to provide U.S. 
Customs and Border Protection (CBP) and/or Commerce with the importer 
certification, and any supporting documentation, upon request of either 
agency.\15\ Properly certified entries are not subject to antidumping 
and/or countervailing duties under the Orders. Exemption from 
antidumping and/or countervailing duties under the Orders is permitted 
only if the certification and documentation requirements specified in 
Appendices II and III are met.
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    \15\ The importer certification is provided at Appendix III.
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    Entries of unthreaded pins of alloy steel produced and/or exported 
by Yongding Fastener or Ningding I&E are not eligible for 
certification.

Suspension of Liquidation and Cash Deposit Requirements

    In accordance with 19 CFR 351.226(l)(3), we will direct CBP to 
continue the suspension of liquidation of previously suspended entries 
and to suspend liquidation of all entries of unthreaded pins of alloy 
steel from China that are entered, or withdrawn from warehouse, for 
consumption on or after July 12, 2023 (i.e., the date of publication of 
the Initiation Notice).\16\ Pursuant to 19 CFR 351.226(l)(3), we will 
also instruct CBP to require antidumping and countervailing duty cash 
deposits for unthreaded pins of alloy steel from China for each 
unliquidated entry of unthreaded pins of alloy steel from China that 
have been entered, or withdrawn from warehouse, for consumption on or 
after July 12, 2023.
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    \16\ See generally 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, 88 FR 44277 (July 12, 2023) (Initiation Notice).
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    For entries of unthreaded pins of alloy steel for which the 
exporter has a company-specific cash deposit rate under the AD Order, 
the cash deposit rate will be the company-specific antidumping duty 
cash deposit rate established for that company in the most recently-
completed segment of the proceeding. For all Chinese exporters of 
unthreaded pins of alloy steel that do not have a company-specific cash 
deposit rate under the AD Order, the antidumping duty cash deposit rate 
will be the cash deposit rate for the China-wide entity (i.e., 48.91 
percent); \17\ for all non-Chinese exporters of unthreaded pins of 
alloy steel which have not received their own rate, the cash deposit 
rate will be the rate applicable to the Chinese exporter that supplied 
that non-Chinese exporter.
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    \17\ See AD Order.
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    For entries of unthreaded pins of alloy steel for which the 
producer and/or exporter has a company-specific cash deposit rate under 
the CVD Order, the cash deposit rate will be the company-specific CVD 
cash deposit rate established for that company in the most recently-
completed segment of the proceeding. For all Chinese producers and/or 
exporters of unthreaded pins of alloy steel that do not have a company-
specific cash deposit rate under CVD Order, the CVD cash deposit rate 
will be the all-others rate (i.e., 41.17 percent).\18\
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    \18\ See CVD Order.
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    These suspension of liquidation instructions and cash deposit 
requirements will remain in effect until further notice.

Opportunity To Request an Administrative Review

    Each year during the anniversary month of the publication of an 
antidumping or countervailing duty order, finding, or suspended 
investigation, an interested party, as defined in section 771(9) of the 
Act, may request, in accordance with 19 CFR 351.213, that Commerce 
conduct an administrative review of that antidumping or countervailing 
order, finding, or suspended investigation. Interested parties who wish 
to request that Commerce conduct an administrative review should wait 
until Commerce announces via the Federal Register the next window 
during the anniversary month of the publication of the antidumping or 
countervailing duty order to submit such requests. The anniversary 
month for these Orders is April.

Administrative Protective Order

    This notice will serve as the only reminder to all 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 the terms of an APO is a sanctionable 
violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
section 781(a) of the Act and 19 CFR 351.226(g)(2).

    Dated: August 20, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiries
V. Period of the Circumvention Inquiries
VI. Discussion of the Issues
    Comment 1: Limitations of the Scope Language
    Comment 2: The Nature of Unthreaded Pins
    Comment 3: U.S. Processing
    Comment 4: Certification Requirements
    Comment 5: Treatment of Ningbo Zhenghai Yongding Fastener Co., 
Ltd. (Yongding Fastener)/Ningbo Ningding Import & Export Co. Ltd. 
(Ningding I&E)
    Comment 6: Notification to the U.S. International Trade 
Commission (ITC)
    Comment 7: Retroactivity
VII. Recommendation

Appendix II

Certification Requirements

    Importers are required to complete and maintain the applicable 
importer certification and retain all supporting documentation for 
the certification. With the exception of the entries described 
below, the importer

[[Page 68588]]

certification must be completed, signed, and dated by the time the 
entry summary is filed for the relevant entry. The importer, or the 
importer's agent, must transmit the importer's certification to CBP 
as part of the entry process by uploading it into the document 
imaging system (DIS) in ACE. Where the importer uses a broker to 
facilitate the entry process, it should obtain the entry summary 
number from the broker. Agents of the importer, such as brokers, 
however, are not permitted to certify on behalf of the importer.
    Additionally, the claims made in certifications and any 
supporting documentation are subject to verification by Commerce 
and/or CBP. Importers are required to maintain certifications and 
supporting documentation until the later of: (1) the date that is 
five years after the latest entry date of the entries covered by the 
certification; or (2) the date that is three years after the 
conclusion of any litigation in United States courts regarding such 
entries.
    For all unthreaded pins of alloy steel from China that were 
entered, or withdrawn from warehouse, for consumption during the 
period July 12, 2023 (i.e., the date of publication of the 
Initiation Notice), through March 14, 2024, the date of publication 
of the preliminary determination in the Federal Register, where the 
entry has not been liquidated (and for entries for which liquidation 
has not become final), the relevant certification should already be 
complete and signed.
    For unliquidated entries (and entries for which liquidation has 
not become final) of unthreaded pins of alloy steel from China that 
were declared as non-antidumping duty/countervailing duty type 
entries (e.g., type 01) and entered, or withdrawn from warehouse, 
for consumption in the United States during the period July 12, 2023 
(i.e., the date of publication of the Initiation Notice) through 
March 14, 2024, the date of publication of the preliminary 
determination in the Federal Register, for which no importer 
certification may be made, importers must file a Post Summary 
Correction with CBP, in accordance with CBP's regulations, regarding 
conversion of such entries from non- antidumping duty/countervailing 
duty type entries to antidumping duty/countervailing duty type 
entries (e.g., type 01 to type 03). The importer should pay cash 
deposits on those entries consistent with the regulations governing 
post summary corrections that require payment of additional duties, 
including antidumping duty/countervailing duties.
    If it is determined that an importer has not met the 
certification and/or related documentation requirements for certain 
entries, Commerce intends to instruct CBP to suspend, pursuant to 
this final affirmative country-wide determination of circumvention 
and the Orders, all unliquidated entries for which these 
requirements were not met and to require the importer to post 
applicable antidumping and countervailing duty cash deposits.

Appendix III

Importer Certification

    I hereby certify that:
    (A) My name is {IMPORTING COMPANY OFFICIAL'S NAME{time}  and I 
am an official of {NAME OF IMPORTING COMPANY{time} , located at 
{ADDRESS OF IMPORTING COMPANY{time} .
    (B) I have direct personal knowledge of the facts regarding the 
importation into the Customs territory of the United States of 
unthreaded pins of alloy steel produced in China that entered under 
the entry summary number(s), identified below, and which are covered 
by this certification. Unthreaded pins of alloy steel are unthreaded 
rod, bar, or studs, having a solid, circular cross section of any 
diameter, in any length, and are non-headed. Unthreaded pins may 
enter unchamfered or with their ends already chamfered. Such pins 
may also be referenced as ``pitch diameter stud blanks'' or 
``blanks.''
    ``Direct personal knowledge'' refers to facts the certifying 
party is expected to have in its own records. For example, the 
importer should have direct personal knowledge of the importation of 
the product (e.g., the name of the exporter and producer) in its 
records.
    (C) If the importer is acting on behalf of the first U.S. 
customer, include the following sentence as paragraph C of this 
certification:
    The unthreaded pins of alloy steel covered by this certification 
were imported by {IMPORTING COMPANY{time}  on behalf of {U.S. 
CUSTOMER{time} , located at {ADDRESS OF U.S. CUSTOMER{time} .
    If the importer is not acting on behalf of the first U.S. 
customer, include the following sentence as paragraph C of this 
certification:
    {NAME OF IMPORTING COMPANY{time}  is not acting on behalf of the 
first U.S. customer.
    (D) The imported unthreaded pins of alloy steel covered by this 
certification were shipped to {NAME OF PARTY TO WHOM MERCHANDISE WAS 
FIRST SHIPPED IN THE UNITED STATES{time} , located at {ADDRESS OF 
SHIPMENT{time} .
    (E) Select appropriate statement below:
    _ I have direct personal knowledge of the facts regarding the 
end use of the imported product because my company is the end user 
of the imported product covered by this certification and I certify 
that the unthreaded pins of alloy steel will not be used to produce 
subject merchandise. ``Direct personal knowledge'' includes 
information contained within my company's books and records.
    _ My company is not the end user of the imported product covered 
by this certification. However, I have personal knowledge of the 
facts regarding the end use of the imported products covered by this 
certification. I have been able to contact the end user of the 
imported product and confirm that it will not use this product to 
produce subject merchandise. The end user of the imported product is 
{COMPANY NAME{time}  located at {ADDRESS{time} . ``Personal 
knowledge'' includes facts obtained from another party (e.g., 
correspondence received by the importer from the end user of the 
product).
    (F) The imported unthreaded pins of alloy steel from China 
covered by this certification were not produced and/or exported by 
either Ningbo Zhenghai Yongding Fastener Co., Ltd. or Ningbo 
Ningding Import & Export Co. Ltd.
    (G) This certification applies to the following entries (repeat 
this block as many times as necessary):
    Entry Summary #:
    Entry Summary Line Item #:
    Foreign Seller:
    Foreign Seller's Address:
    Foreign Seller's Invoice #:
    Foreign Seller's Invoice Line Item #:
    Producer:
    Producer's Address:
    (H) I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to maintain a copy of this certification and sufficient 
documentation supporting this certification (i.e., documents 
maintained in the normal course of business, or documents obtained 
by the certifying party, for example, mill certificates, production 
records, invoices, etc.) for the later of: (1) a period of five 
years from the date of entry; or (2) a period of three years after 
the conclusion of any litigation in the United States courts 
regarding such entries.
    (I) I understand that {IMPORTING COMPANY{time}  is required to 
submit a copy of the importer certification as part of the entry 
summary by uploading it into the document imaging system (DIS) in 
ACE, and to provide U.S. Customs and Border Protection (CBP) and/or 
the U.S. Department of Commerce (Commerce) with the importer 
certification, and any supporting documentation, upon request of 
either agency.
    (J) I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce.
    (K) I understand that failure to maintain the required 
certifications, and/or failure to substantiate the claims made 
herein, and/or failure to allow CBP and/or Commerce to verify the 
claims made herein, may result in a de facto determination that all 
entries to which this certification applies are within the scope of 
the antidumping/countervailing duty orders on steel threaded rod 
from China. I understand that such finding will result in:
    (i) suspension of liquidation of all unliquidated entries (and 
entries for which liquidation has not become final) for which these 
requirements were not met;
    (ii) the requirement that the importer post applicable 
antidumping duty and/or countervailing duty cash deposits (as 
appropriate) equal to the rates determined by Commerce; and
    (iii) the importer no longer being allowed to participate in the 
certification process.
    (L) I understand that agents of the importer, such as brokers, 
are not permitted to make this certification. Where a broker or 
other party was used to facilitate the entry process, {NAME OF 
IMPORTING COMPANY{time}  obtained the entry summary number and date 
of entry summary from that party.
    (M) This certification was completed and signed on, or prior to, 
the date of the entry summary if the entry date is more than 14 days 
after the date of publication of the notice of Commerce's 
preliminary determination of circumvention in the Federal Register. 
If the entry date is on or before the 14th day after the date of 
publication of the notice of Commerce's

[[Page 68589]]

preliminary determination of circumvention in the Federal Register, 
this certification was completed and signed by no later than 45 days 
after publication of the notice of Commerce's preliminary 
determination of circumvention in the Federal Register.
    (N) I am aware that U.S. law (including, but not limited to, 18 
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly 
and willfully make material false statements to the U.S. government.

Signature
{NAME OF COMPANY OFFICIAL{time} 
{TITLE{time} 
{DATE{time} 

[FR Doc. 2024-19200 Filed 8-26-24; 8:45 am]
BILLING CODE 3510-DS-P