Notice2022-12188
Certain Steel Nails From India: Preliminary Affirmative Countervailing Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 7, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain steel nails (steel nails) from India. The period of investigation is April 1, 2020, through March 31, 2021. 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 34654-34656]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-12188]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-905]
Certain Steel Nails From India: Preliminary Affirmative
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 being provided to
producers and exporters of certain steel nails (steel nails) from
India. The period of investigation is April 1, 2020, through March 31,
2021. Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable June 7, 2022.
FOR FURTHER INFORMATION CONTACT: Genevieve Coen or Eric Hawkins, AD/
[[Page 34655]]
CVD Operations, Office V, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-3251, or (202)
482-1988, 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). On January 26,
2022, we published the initiation of a countervailing duty (CVD)
investigation on steel nails from India.\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="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 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
Affirmative Determination in the Countervailing Duty Investigation
of Certain Steel Nails from India,'' 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
India. 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) (Preamble).
\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 to be
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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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated individual estimated
countervailable subsidy rates for Astrotech Steels Pvt. Ltd.
(Astrotech) and Geekay Wires Limited (Geekay), the two individually-
examined exporter/producers that are not zero, de minimis, or based
entirely on facts otherwise available. Commerce calculated the all-
others rate using a weighted average of the individual estimated
subsidy rates calculated for the examined respondents using each
company's publicly-ranged sales values for the merchandise under
consideration.\8\
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\8\ 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.
sales values 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. For
a complete analysis of the data, see Memorandum, ``Preliminary
Determination of Subsidy Rate for All Others,'' dated May 31, 2022.
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Preliminary Determination
Commerce preliminarily determines that the following estimated net
countervailable subsidy rates exist:
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Subsidy rate
Company (ad valorem)
(percent)
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Astrotech Steels Pvt. Ltd............................... 2.93
Geekay Wires Limited.................................... 2.73
All Others.............................................. 2.85
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Suspension of Liquidation
In accordance with sections 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
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
[[Page 34656]]
verification questionnaire response in this investigation. Rebuttal
briefs, limited to issues raised in case briefs, may be submitted no
later than seven days after the deadline date for case briefs.\9\ Note
that Commerce has temporarily modified certain of its requirements for
serving documents containing business proprietary information, until
further notice.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case 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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\9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\10\ See 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 determine before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination whether imports of steel nails
from India are materially injuring, or threaten material injury to, the
U.S. industry.
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 proceeding 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 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 these
investigations 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. 2022-12188 Filed 6-6-22; 8:45 am]
BILLING CODE 3510-DS-P
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