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
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Abstract
The Department of Commerce (Commerce) preliminarily determines that the companies subject to this countervailing duty (CVD) administrative review of carbon and alloy steel threaded rod (threaded rod) from the People's Republic of China (China) received countervailable subsidies during the period of review (POR), July 29, 2019, through December 31, 2020. Interested parties are invited to comment on these preliminary results of review.
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<title>Federal Register, Volume 87 Issue 88 (Friday, May 6, 2022)</title>
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[Federal Register Volume 87, Number 88 (Friday, May 6, 2022)]
[Notices]
[Pages 27104-27106]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-09800]
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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: Preliminary Results of Countervailing Duty Administrative Review
and Rescission of Administrative Review in Part; 2019-2020
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that the companies subject to this countervailing duty (CVD)
administrative review of carbon and alloy steel threaded rod (threaded
rod) from the People's Republic of China (China) received
countervailable subsidies during the period of review (POR), July 29,
2019, through December 31, 2020. Interested parties are invited to
comment on these preliminary results of review.
DATES: Applicable May 6, 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 April 9, 2020, Commerce published the CVD order on threaded rod
from China.\1\ On April 1, 2021, Commerce published a notice of
[[Page 27105]]
opportunity to request an administrative review of the Order for the
POR.\2\ In April 2021 we received timely requests from multiple parties
to conduct an administrative review of the Order. On June 11, 2021, we
published a notice of initiation for this administrative review.\3\ For
a complete description of the events that followed the initiation of
this review, see the Preliminary Decision Memorandum.\4\ 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 <a href="http://access.trade.gov">http://access.trade.gov</a>. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\1\ 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).
\2\ See Antidumping or Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity to Request Administrative
Review, 86 FR 17137 (April 1, 2021).
\3\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 86 FR 31282, 31293 (June 11, 2021).
\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of the Administrative Review of the Countervailing Duty
Order on Carbon and Alloy Steel Threaded Rod from the People's
Republic of China; 2019-2020,'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).
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On December 3, 2021, Commerce extended the deadline for the
preliminary results of this review by 120 days to May 2, 2022.\5\
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\5\ See Memorandum, ``Carbon and Alloy Steel Threaded Rod from
the People's Republic of China: Extension of Deadline for
Preliminary Results of Countervailing Duty Administrative Review;
2019-2020,'' dated December 3, 2021.
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Scope of the Order
The scope of the Order covers threaded rod from China. For a
complete description of the scope of the Order, see the Preliminary
Decision Memorandum.
Methodology
We are conducting this administrative review in accordance with
section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act).
For each of the subsidy programs found countervailable, we determine
that there is a subsidy, i.e., a financial contribution by an
``authority'' that confers a benefit to the recipient, and that the
subsidy is specific.\6\ For a full description of the methodology
underlying our preliminary conclusions, including our reliance, in
part, on adverse facts available pursuant to sections 776(a) and (b) of
the Act, see the Preliminary Decision Memorandum. A list of topics
included in the Preliminary Decision Memorandum is provided in Appendix
I to this notice.
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\6\ 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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Rescission of Administrative Review, in Part
Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an
administrative review, in whole or in part, if the parties that
requested a review withdraw the request within 90 days of the date of
publication of the notice of initiation. Commerce received withdrawal
requests with respect to the 18 companies listed in Appendix II.\7\
Because the withdrawal requests were timely filed and no other parties
requested a review of these companies, in accordance with 19 CFR
351.213(d)(1), Commerce is rescinding this review of the Order for the
18 companies listed in Appendix II.\8\
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\7\ See Vulcan Threaded Products Inc.'s Letter, ``Carbon and
Alloy Steel Threaded Rod from the People's Republic of China:
Withdrawal of Requests for Administrative Reviews,'' dated August
30, 2021.
\8\ See, e.g., Lightweight Thermal Paper from the People's
Republic of China: Notice of Rescission of Countervailing Duty
Administrative Review; 2015, 82 FR 14349 (March 20, 2017); and
Circular Welded Carbon Quality Steel Pipe from the People's Republic
of China: Rescission of Countervailing Duty Administrative Review;
2017, 84 FR 14650 (April 11, 2019).
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Preliminary Rate for Non-Selected Companies
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,
Zhejiang Junyue Standard Part Co., Ltd. (Junyue) and Ningbo Zhongjiang
High Strength Bolts Co., Ltd. (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.\9\ 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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\9\ 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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Preliminary Results of Administrative Review
As a result of this administrative review, we preliminarily find
that the following net countervailable subsidy rates exist for the
period July 29, 2019, through December 31, 2020:
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Subsidy rate--2019 Subsidy rate--2020
Company (percent ad valorem) (percent ad valorem)
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Ningbo Zhongjiang High Strength Bolts Co., Ltd \10\........... 8.36 7.65
Zhejiang Junyue Standard Part Co., Ltd \11\................... 7.22 7.97
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Review-Specific Average Rate Applicable to the Following Companies
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Ningbo Dingtuo Imp. & Exp. Co., Ltd........................... 7.95 7.75
Ningbo Dongxin High-Strength Nut Co., Ltd..................... 7.95 7.75
Ningbo Jinding Fastening Piece Co., Ltd....................... 7.95 7.75
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[[Page 27106]]
Assessment Rates
Upon issuance of the final results of this administrative review,
consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2),
Commerce shall determine, and U.S. Customs and Border Protection (CBP)
shall assess, countervailing duties on all appropriate entries covered
by this review. For the 18 companies for which this review is
rescinded, Commerce will instruct CBP to assess countervailing duties
on all appropriate entries at the rate equal to the cash deposit of
estimated countervailing duties required at the time of entry, or
withdrawal from warehouse, for consumption, during the period July 29,
2019, through December 31, 2020, in accordance with 19 CFR
351.212(c)(l)(i).
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\10\ 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 Preliminary Decision Memorandum 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 Decision Memorandum.
\11\ As discussed in the Preliminary Decision Memorandum,
Commerce preliminarily 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.
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For the companies remaining in the review, Commerce intends to
issue assessment instructions to CBP no earlier than 35 days after the
date of publication of the final results of this review in the Federal
Register. 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 Requirements
Pursuant to section 751(a)(2)(C) of the Act, Commerce intends, upon
publication of the final results, to instruct CBP to collect cash
deposits of estimated countervailing duties in the amounts calculated
in the final results of this review for 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. If the rate calculated in
the final results is zero or de minimis, no cash deposit will be
required on shipments of the subject merchandise entered or withdrawn
from warehouse, for consumption on or after the date of publication of
the final results of this review. For all non-reviewed companies, CBP
will continue to collect cash deposits of estimated countervailing
duties at the all-others rate (i.e., 41.17 percent) \12\ or the most
recent company-specific rate applicable to the company, as appropriate.
These cash deposit requirements, when imposed, shall remain in effect
until further notice.
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\12\ See Order, 85 FR at 19928.
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Disclosure and Public Comment
We intend to disclose the calculations performed for these
preliminary results to parties in this proceeding within five days
after public announcement of the preliminary results in accordance with
19 CFR 351.224(b). Pursuant to 19 CFR 351.309(c), interested parties
may submit case briefs no later than 30 days after the date of
publication of this notice. Rebuttal briefs, limited to issues raised
in the case briefs, may be filed no later than seven days after the
date for filing case briefs.\13\ Parties who submit case 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.\14\ Commerce has temporarily modified
certain of its requirements for serving documents containing business
proprietary information.\15\
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\13\ See 19 CFR 351.309(d).
\14\ See 19 CFR 351.309(c)(2) and (d)(2).
\15\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19, 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, filed electronically via ACCESS. An
electronically filed document must be received successfully in its
entirety by Commerce's electronic records system, ACCESS, by 5:00 p.m.
Eastern Time within 30 days after the date of publication of this
notice.\16\ Requests should contain: (1) The party's name, address, and
telephone number; (2) the number of participants; and (3) a list of
issues to be discussed. If a request for a hearing is made, we will
inform parties of the scheduled date and time for the hearing.
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\16\ See 19 CFR 351.310(c).
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Unless extended, we intend to issue the final results of this
administrative review, including the results of our analysis of the
issues raised by the parties in their case briefs, no later than 120
days after the date of publication of this notice in the Federal
Register, pursuant to section 751(a)(3)(A) of the Act.
Notification to Interested Parties
We are issuing and publishing these preliminary results in
accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR
351.213(d)(4) and 351.221(b)(4).
Dated: May 2, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Rescission of Administrative Review, In Part
V. Non-Selected Companies Under Review
VI. Diversification of China's Economy
VII. Subsidies Valuation
VIII. Benchmarks and Discount Rates
IX. Use of Facts Otherwise Available and Application of Adverse
Inferences
X. Analysis of Programs
XI. Recommendation
Appendix II
List of Companies for Which Requests for Review Were Timely Withdrawn
1. Cooper & Turner (Ningbo) International Trading Co., Ltd.
2. EC International (Nantong) Co., Ltd.
3. Haiyan Qinshan Rubber Factory
4. IFI & Morgan Ltd.
5. Jiaxing Genteel Import & Export Co., Ltd
6. Nantong Runyou Metal Products Co., Ltd.
7. Ningbo Qunli Fastener Manufacture Co., Ltd.
8. Ningbo Shareway Import & Export, Co., Ltd.
9. Ningbo Xingsheng Oil Pipe Fittings Manufacture Co., Ltd.
10. Ningbo Zhenghai Yongding Fastener Co., Ltd.
11. Ningbo Zhenghai Yongding Fasteners Manufacture Co., Ltd.
12. Ningbo Zhenhai Zhongbiao Standard Parts Factory
13. RMB Fasteners Ltd.
14. Zhejiang Cooper & Turner Fasteners Co., Ltd.
15. Zhejiang Golden Automotive Fastener Co., Ltd
16. Zhejiang Heiter Mfg & Trade Co., Ltd.
17. Zhejiang Huiyou Import & Export Co., Ltd.
18. Zhejiang Morgan Brother Technology Co., Ltd.
[FR Doc. 2022-09800 Filed 5-5-22; 8:45 am]
BILLING CODE 3510-DS-P
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