Notice2022-12191

Certain Steel Nails From the Republic of Turkey: Preliminary Affirmative Countervailing Duty Determination

Primary source

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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 being provided to producers and exporters of certain steel nails (steel nails) from the Republic of Turkey (Turkey). The period of investigation is January 1, 2020, through December 31, 2020. Interested parties are invited to comment on this preliminary determination.

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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 34649-34651]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-12191]



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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-847]


Certain Steel Nails From the Republic of Turkey: 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 the 
Republic of Turkey (Turkey). 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: Benjamin A. Luberda or Ajay Menon, AD/
CVD Operations, Office II, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-2185 or (202) 
482-0208, 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 notice of initiation of a countervailing duty 
(CVD) investigation on steel nails from Turkey.\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>. 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 Affirmative 
Preliminary Determination of the Countervailing Duty Investigation 
of Certain Steel Nails from the Republic of Turkey,'' 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 
Turkey. 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.
    \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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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 Aslanbas Civi Tel Ve Celik Hasir San 
A.S. (Aslanbas) and Sertel Vida Metal A.S. (Sertel) 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. 
sale 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. As 
complete publicly ranged sales data were available, Commerce based 
the all-others rate on the publicly ranged sales data of the 
mandatory respondents. For a complete analysis of the data, see 
Memorandum, ``All-Others Rate Calculation Memorandum,'' dated May 
31, 2022.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Aslanbas Civi Tel Ve Celik Hasir San A.S....................        3.88
Sertel Vida Metal A.S.......................................        1.33
All Others..................................................        1.70
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Suspension of Liquidation

    In accordance with section 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 entered, or 
withdrawn from warehouse, for consumption on or

[[Page 34650]]

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 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 
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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    \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, 85 FR 17006 (March 26, 2020); 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 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 Turkey 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,

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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. Diversification of Turkey's Economy
VII. Subsidies Valuation
VIII. Analysis of Programs
IX. Recommendation

[FR Doc. 2022-12191 Filed 6-6-22; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on June 7, 2022.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.