Certain Steel Nails From Thailand: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures
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Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that certain steel nails (steel nails) from Thailand are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is October 1, 2020, through September 30, 2021. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 87 Issue 149 (Thursday, August 4, 2022)</title>
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[Federal Register Volume 87, Number 149 (Thursday, August 4, 2022)]
[Notices]
[Pages 47708-47711]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-16720]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-549-844]
Certain Steel Nails From Thailand: Preliminary Affirmative
Determination of Sales at Less Than Fair Value, Postponement of Final
Determination, and Extension of Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that certain steel nails (steel nails) from Thailand are
being, or are likely to be, sold in the United States at less than fair
value (LTFV). The period of investigation (POI) is October 1, 2020,
through September 30, 2021. Interested parties are invited to comment
on this preliminary determination.
DATES: Applicable August 4, 2022.
[[Page 47709]]
FOR FURTHER INFORMATION CONTACT: Laurel LaCivita or Matthew Palmer, 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) 482-4243 or (202)
482-1678, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(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 May 20, 2022, Commerce postponed the preliminary
determination of this investigation until July 28, 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 included 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, Sri Lanka, Thailand, and
the Republic of Turkey: Initiation of Less-Than-Fair Value
Investigations, 87 FR 3965 (January 26, 2022) (Initiation Notice).
\2\ 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).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value 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\ Certain interested
parties commented on the scope of this investigation as it appeared in
the Initiation Notice. On July 5, 2022, Commerce issued its preliminary
determination regarding the scope of the investigation.\6\ For a
summary of the product coverage comments and rebuttal responses
submitted to the record for this investigation, and accompanying
analysis of all comments timely received, see the Preliminary Scope
Decision Memorandum. Based on an analysis of the comments received,
Commerce preliminarily determined to make no change to the scope
language from the Initiation Notice, as reflected in Appendix I.\7\
Commerce established a separate briefing schedule for interested
parties to address the preliminary scope determination.\8\
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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 3966.
\6\ See Memorandum, ``Antidumping Duty Investigations of Certain
Steel Nails from India, Sri Lanka, Thailand, and Turkey and
Countervailing Duty Investigations of Certain Steel Nails from
India, Oman, Sri Lanka, Thailand, and Turkey: Preliminary Scope
Decision Memorandum,'' dated July 5, 2022 (Preliminary Scope
Decision Memorandum).
\7\ Though Commerce preliminarily determined to make no change
to the language of the scope in response to interested parties'
comments, we note that the scope language as listed in Appendix I
omits a Harmonized Tariff Schedule of the United States (HTSUS)
subheading (7318.15.5060) originally included in the scope language
from the Initiation Notice, because Commerce determined that the
HTSUS subheading does not exist. Id. at 15.
\8\ Id. at 4-5.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Normal value is calculated
in accordance with section 773 of the Act. For a full description of
the methodology underlying the preliminary determination, see the
Preliminary Decision Memorandum.
All-Others Rate
Section 733(d)(1)(ii) of the Act provides that in the preliminary
determination, Commerce shall determine an estimated all-others rate
for all exporters and producers not individually examined. Pursuant to
section 735(c)(5)(A) of the Act, this rate shall be an amount equal to
the weighted average of the estimated weighted-average dumping margins
established for exporters and producers individually investigated,
excluding any zero and de minimis margins, and any margins determined
entirely under section 776 of the Act. In this investigation, Commerce
assigned a rate based entirely on facts available to Jinhai Hardware
Co., Ltd. (Jinhai). Therefore, the only rate that is not zero, de
minimis, or based entirely on facts otherwise available is the rate
calculated for Come Best Co., Ltd. (Come Best). Consequently, the rate
calculated for Come Best is also assigned as the rate for all other
producers and exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
------------------------------------------------------------------------
Estimated
weighted-
average
Exporter/producer dumping
margin
(percent)
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Come Best (Thailand) Co. Ltd................................ \9\ 17.12
Jinhai Hardware Co., Ltd.................................... \10\ 65.87
All Others.................................................. \11\ 17.12
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Suspension of Liquidation
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\9\ See Memorandum, ``Antidumping Duty Investigation of Certain
Steel Nails from Thailand: Analysis of the Preliminary Determination
Margin Calculations for Come Best Co., Ltd.,'' dated concurrently
with this notice.
\10\ See Preliminary Decision Memorandum at section VI., ``Use
of Facts Available with Adverse Inferences.''
\11\ Id. at section VII., ``All-Others Rate.''
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In accordance with section 733(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 Appendix I, entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register. Further, pursuant
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin or the estimated all-others rate, as follows:
(1) the cash deposit rate for the respondents listed above will be
equal to the company-specific estimated weighted-average dumping
margins determined in this preliminary determination; (2) if the
exporter is not a respondent identified above, but the producer is,
then the cash deposit rate will be equal to the company-specific
estimated weighted-average dumping margin established for that producer
of the subject merchandise; and (3) the cash deposit rate for all other
producers and exporters will be equal to the all-others estimated
weighted-average dumping margin.
To determine the cash deposit rate, pursuant to section
772(c)(1)(C) of the Act, Commerce normally adjusts the
[[Page 47710]]
estimated weighted-average dumping margin by the amount of export
subsidies determined in a companion countervailing duty (CVD)
proceeding when CVD provisional measures are in effect. However,
Commerce did not find countervailable export subsidies in the
preliminary determination of the companion CVD investigation.\12\
Accordingly, we have not made any adjustment to offset for export
subsidies. These suspension of liquidation instructions will remain in
effect until further notice.
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\12\ See Certain Steel Nails from Thailand: Preliminary Negative
Countervailing Duty Determination, 87 FR 34651 (June 7, 2022), and
accompanying Preliminary Decision Memorandum.
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Disclosure
Commerce intends to disclose the calculations performed in
connection with this preliminary determination to interested parties
within five days of any public announcement or, if there is no public
announcement, within five days of the date of publication 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 on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and
Compliance.\13\ Interested parties will be notified of the timeline for
the submission of such case briefs and written comments at a later
date. Rebuttal briefs may be submitted no later than seven days after
the deadline for case briefs.\14\ 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. Note that Commerce has temporarily modified
certain of its requirements for serving documents containing business
proprietary information, until further notice.\15\
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\13\ Case briefs, other written comments, and rebuttal briefs
submitted by parties in response to this preliminary LTFV
determination should not include scope-related issues. The scope
case briefs deadline was July 19, 2022. See Preliminary Scope
Decision Memorandum at 4.
\14\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\15\ 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, U.S. Department of Commerce, within 30 days
after the date of publication of this notice in the Federal Register.
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.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On July 6 and 11, 2022, pursuant to 19 CFR 351.210(e), Come Best
and Jinhai Hardware, respectively, requested Commerce to postpone the
final determination to the maximum of 135 days after the date of the
publication of the preliminary determination, and to extend provisional
measures to a period not to exceed six months, in the event that
Commerce issued an affirmative preliminary antidumping determination in
this proceeding.\16\ On July 14, 2022, Mid Continent Steel & Wire, Inc.
(the petitioner) similarly requested that Commerce postpone the final
determination for a period not to exceed 135 days after the date of the
publication of the preliminary determination in this proceeding, in the
event that it issued a negative preliminary determination.\17\ The
petitioner stated further that it supports the respondents' requests to
extend any provisional measures from a four-month period not to exceed
a six-month period in the investigation, should Commerce reach an
affirmative preliminary determination and should the deadline for a
final determination be fully extended.\18\
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\16\ See Come Best's Letter, ``Certain Steel Nails from
Thailand; Request to Extend Final Determination,'' dated July 6,
2022; see also Jinhai Hardware's Letter, ``Certain Steel Nails from
Thailand: Request to Postpone the Final Determination of the
Investigation,'' dated July 11, 2022.
\17\ See Petitioner's Letter, ``Certain Steel Nails from India,
Sri Lanka and Thailand--Petitioner's Request for Postponement Final
Determination,'' dated July 14, 2022.
\18\ Id.
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In accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii), because: (1) the preliminary determination is
affirmative; (2) the requesting exporters account for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, Commerce is postponing the final
determination and extending the provisional measures from a four-month
period to a period not greater than six months. Accordingly, Commerce
will make its final determination no later than 135 days after the date
of publication of this preliminary determination.
U.S. International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its preliminary
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 Thailand are materially injuring,
or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This preliminary determination is issued and published in
accordance with sections 733(f) and 777(i)(1) of the Act and 19 CFR
351.205(c).
Dated: July 28, 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
[[Page 47711]]
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, Frenchwindows
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 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. Period of Investigation
IV. Affiliation
V. Use of Facts Available with Adverse Inferences
VI. Discussion of the Methodology
VII. Currency Conversion
VIII. Recommendation
[FR Doc. 2022-16720 Filed 8-3-22; 8:45 am]
BILLING CODE 3510-DS-P
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