[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