Notice2022-12187

Certain Steel Nails From Thailand: Preliminary Negative Countervailing Duty Determination

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Published
June 7, 2022

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are not being provided to producers and exporters of certain steel nails (steel nails) from Thailand. The period of investigation is January 1, 2020, through December 31, 2020. Interested parties are invited to comment on this preliminary determination.

Full Text

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<title>Federal Register, Volume 87 Issue 109 (Tuesday, June 7, 2022)</title>
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[Federal Register Volume 87, Number 109 (Tuesday, June 7, 2022)]
[Notices]
[Pages 34651-34653]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-12187]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-549-845]


Certain Steel Nails From Thailand: Preliminary Negative 
Countervailing Duty Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are not being provided to 
producers and exporters of certain steel nails (steel nails) from 
Thailand. The period of investigation is January 1, 2020, through 
December 31, 2020. Interested parties are invited to comment on this 
preliminary determination.

DATES: Applicable June 7, 2022.

FOR FURTHER INFORMATION CONTACT: Laura Griffith or Jonathan Hall-
Eastman, AD/CVD Operations, Office III, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-6430 
or (202) 482-1468, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on January 26, 
2022.\1\ On March 3, 2022, Commerce postponed the preliminary 
determination of this investigation until May 31, 2022.\2\ For a 
complete description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II 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 
<a href="https://access.trade.gov">https://access.trade.gov</a>, and is available to all parties in the 
Central Records Unit, room B8024 of the main Department of Commerce 
building. 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 Certain Steel Nails from India, the Sultanate of Oman, 
Sri Lanka, Thailand, and the Republic of Turkey: Initiation of 
Countervailing Duty Investigations, 87 FR 3970 (January 26, 2022) 
(Initiation Notice).
    \2\ See Certain Steel Nails from India, the Sultanate of Oman, 
Sri Lanka, Thailand, and the Republic of Turkey: Postponement of 
Preliminary Determinations in the Countervailing Duty 
Investigations, 87 FR 12080 (March 3, 2022).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Certain 
Steel Nails from Thailand,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are steel nails from 
Thailand. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ We received several 
comments concerning the scope of the antidumping duty (AD) and CVD 
investigations of steel nails as it appeared in the Initiation Notice. 
We are currently evaluating the scope comments filed by the interested 
parties. We intend to issue our preliminary decision regarding the 
scope of the AD and CVD investigations on or before the preliminary 
determinations of the companion AD investigations, the deadline for 
which is July 28, 2022.\6\ We will incorporate the scope decisions from 
the AD investigations into the scope of the final CVD determination for 
this investigation after considering any relevant comments submitted in 
scope case and rebuttal briefs. The deadline for interested parties to 
submit scope case and rebuttal briefs will be established in the 
preliminary scope decision memorandum.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 87 FR at 3971.
    \6\ See Certain Steel Nails from India, Sri Lanka, Thailand, and 
the Republic of Turkey: Postponement of Preliminary Determinations 
in the Less-Than-Fair-Value Investigations, 87 FR 30868 (May 20, 
2022).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\7\
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    \7\ 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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Preliminary Determination

    For this preliminary determination, Commerce calculated de minimis 
estimated countervailable subsidies for each individually examined 
producer(s)/exporter(s) of the subject merchandise. Consistent with 
section 703(b)(4)(A) of the Act, Commerce has disregarded the de 
minimis rates. Commerce preliminarily determines that the following 
estimated countervailable subsidy rates exist:

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                     Company                      Subsidy rate (percent)
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Come Best Thailand Co., Ltd.....................  0.04 percent (de
                                                   minimis).
Jinhai Hardware Co. Ltd.........................  0.10 percent (de
                                                   minimis).
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[[Page 34652]]

    Consistent with section 703(d) of the Act, Commerce has not 
determined an estimated weighted-average subsidy rate for all other 
producers/exporters because it has not made an affirmative preliminary 
determination.

Suspension of Liquidation

    Because Commerce preliminarily determines that no countervailable 
subsidies are being provided to the production or exportation of 
subject merchandise, Commerce will not direct U.S. Customs and Border 
Protection to suspend liquidation of any such entries.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the deadline for the last verification questionnaire 
response in this investigation. A timeline for the submission of case 
briefs and written comments will be provided to interested parties at a 
later date. Rebuttal briefs, limited to issues raised in case briefs, 
may be submitted no later than seven days after the deadline date for 
case briefs after the deadline date for case briefs.\8\ Note that 
Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information, until 
further notice.\9\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties 
who submit case briefs or rebuttal briefs in this investigation 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.
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    \8\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \9\ See Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19, 85 FR 17006 (March 26, 2020) (Temporary Rule); and 
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 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. Parties should confirm by telephone 
the date, time, and location of the hearing two days before the 
scheduled date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its determination. If 
the final determination is affirmative, the ITC will make its 
determination 75 days after Commerce's final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).

    Dated: May 31, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is certain steel 
nails having a nominal shaft or shank length not exceeding 12 
inches. Certain steel nails include, but are not limited to, nails 
made from round wire and nails that are cut from flat-rolled steel 
or long-rolled flat steel bars.
    Certain steel nails may be of one piece construction or 
constructed of two or more pieces. Examples of nails constructed of 
two or more pieces include, but are not limited to, anchors 
comprised of an anchor body made of zinc or nylon and a steel pin or 
a steel nail; crimp drive anchors; split-drive anchors, and strike 
pin anchors. Also included in the scope are anchors of one piece 
construction.
    Certain steel nails may be produced from any type of steel, and 
may have any type of surface finish, head type, shank, point type 
and shaft diameter. Finishes include, but are not limited to, 
coating in vinyl, zinc (galvanized, including but not limited to 
electroplating or hot dipping one or more times), phosphate, cement, 
and paint. Certain steel nails may have one or more surface 
finishes. Head styles include, but are not limited to, flat, 
projection, cupped, oval, brad, headless, double, countersunk, and 
sinker. Shank or shaft styles include, but are not limited to, 
smooth, barbed, screw threaded, ring shank and fluted.
    Screw-threaded nails subject to this investigation are driven 
using direct force and not by turning the nail using a tool that 
engages with the head. Point styles include, but are not limited to, 
diamond, needle, chisel, and blunt or no point. Certain steel nails 
may be sold in bulk, or they may be collated in any manner using any 
material.
    Excluded from the scope are certain steel nails packaged in 
combination with one or more non-subject articles, if the total 
number of nails of all types, in aggregate regardless of size, is 
less than 25. If packaged in combination with one or more non-
subject articles, certain steel nails remain subject merchandise if 
the total number of nails of all types, in aggregate regardless of 
size, is equal to or greater than 25, unless otherwise excluded 
based on the other exclusions below.
    Also excluded from the scope are certain steel nails with a 
nominal shaft or shank length of one inch or less that are a 
component of an unassembled article, where the total number of nails 
is sixty (60) or less, and the imported unassembled article falls 
into one of the following eight groupings: (1) Builders' joinery and 
carpentry of wood that are classifiable as windows, French-windows 
and their frames; (2) builders' joinery and carpentry of wood that 
are classifiable as doors and their frames and thresholds; (3) 
swivel seats with variable height adjustment; (4) seats that are 
convertible into beds (with the exception of those classifiable as 
garden seats or camping equipment); (5) seats of cane, osier, bamboo 
or similar materials; (6) other seats with wooden frames (with the 
exception of seats of a kind used for aircraft or motor vehicles); 
(7) furniture (other than seats) of wood (with the exception of (i) 
medical, surgical, dental or veterinary furniture; and (ii) barbers' 
chairs and similar chairs, having rotating as well as both reclining 
and elevating movements); or (8) furniture (other than seats) of 
materials other than wood, metal, or plastics (e.g., furniture of 
cane, osier, bamboo or similar materials). The aforementioned 
imported unassembled articles are currently classified under the 
following Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings: 4418.10, 4418.20, 9401.30, 9401.40, 9401.51, 9401.59, 
9401.61, 9401.69, 9403.30, 9403.40, 9403.50, 9403.60, 9403.81 or 
9403.89.
    Also excluded from the scope of this investigation are nails 
suitable for use in powder-actuated hand tools, whether or not 
threaded, which are currently classified under HTSUS subheadings 
7317.00.2000 and 7317.00.3000.
    Also excluded from the scope of this investigation are nails 
suitable for use in gas-actuated hand tools. These nails have a case 
hardness greater than or equal to 50 on the Rockwell Hardness C 
scale (HRC), a carbon content greater than or equal to 0.5 percent, 
a round head, a secondary reduced-diameter raised head section, a 
centered shank, and a smooth symmetrical point.
    Also excluded from the scope of this investigation are 
corrugated nails. A corrugated nail is made up of a small strip of 
corrugated steel with sharp points on one side.
    Also excluded from the scope of this investigation are thumb 
tacks, which are

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currently classified under HTSUS subheading 7317.00.1000.
    Also excluded from the scope are decorative or upholstery tacks.
    Certain steel nails subject to this investigation are currently 
classified under HTSUS subheadings 7317.00.5501, 7317.00.5502, 
7317.00.5503, 7317.00.5505, 7317.00.5507, 7317.00.5508, 
7317.00.5511, 7317.00.5518, 7317.00.5519, 7317.00.5520, 
7317.00.5530, 7317.00.5540, 7317.00.5550, 7317.00.5560, 
7317.00.5570, 7317.00.5580, 7317.00.5590, 7317.00.6530, 7317.00.6560 
and 7317.00.7500. Certain steel nails subject to this investigation 
also may be classified under HTSUS subheadings 7318.15.5090, 
7907.00.6000, 8206.00.0000 or other HTSUS subheadings. While the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of this investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Injury Test
IV. Scope Comments
V. Scope of the Investigation
VI. Subsidies Valuation
VII. Analysis of Programs
VIII. Recommendation

[FR Doc. 2022-12187 Filed 6-6-22; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on June 7, 2022.

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