Notice2022-18045
Certain Steel Nails From India: Final 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
August 22, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of certain steel nails (steel nails) from India.
Full Text
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<title>Federal Register, Volume 87 Issue 161 (Monday, August 22, 2022)</title>
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[Federal Register Volume 87, Number 161 (Monday, August 22, 2022)]
[Notices]
[Pages 51333-51335]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18045]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-905]
Certain Steel Nails From India: Final Affirmative Countervailing
Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of certain steel nails (steel nails) from India.
DATES: Applicable August 22, 2022.
FOR FURTHER INFORMATION CONTACT: Genevieve Coen or Eric Hawkins, AD/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
On June 7, 2022, Commerce published the Preliminary Determination
in the Federal Register.\1\ For a complete description of the events
that followed the Preliminary Determination, see the Issues and
Decision Memorandum.\2\ The Issues and 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 Issues and
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: Preliminary Affirmative
Countervailing Duty Determination, 87 FR 34654 (June 7, 2022)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination of the Countervailing Duty Investigation of
Certain Steel Nails from India,'' dated concurrently with, and
hereby adopted by, this notice (Issues and Decision Memorandum).
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Period of Investigation
The period of investigation is April 1, 2020, through March 31,
2021.
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
On July 5, 2022, Commerce issued the Preliminary Scope
Memorandum.\3\ Commerce received no comments from interested parties on
the Preliminary Scope Memorandum. Thus, Commerce made no changes to the
scope of this investigation since the Preliminary Determination.
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\3\ 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
Memorandum).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs by parties in this investigation, are
discussed in the Issues and Decision Memorandum. For a list of the
issues raised by parties, and to which we responded in the Issues and
Decision Memorandum, see Appendix II of this notice.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce 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.\4\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\4\ 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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Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Act.\5\
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\5\ See Commerce's Letters, In Lieu of On-site Verification
Questionnaire, dated June 2, 2022, and June 9, 2022, respectively;
see also ``Astrotech's In Lieu of Verification Questionnaire
Response,'' dated June 10, 2022; and Geekay's Letter, ``In Lieu of
On-Site Verification Questionnaire Response,'' dated June 17, 2022
(Geekay's ILOV Response).
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Changes Since the Preliminary Determination
Based on our review and analysis of the information received in
lieu of on-site verification and comments received from parties, we
made certain changes to the Preliminary Determination.\6\ However,
these changes did not alter the subsidy rates calculated in the
Preliminary Determination for the mandatory respondents, or the rate
for all other producers/exporters. For a discussion of these changes,
see the Issues and Decision Memorandum.
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\6\ For example, due to minor corrections, we modified Geekay
Wires Limited's (Geekay) subsidy calculations; these corrections,
however, did not change Geekay's final subsidy rate. See Geekay's
ILOV Response at 1-2.
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All-Others Rate
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated countervailable subsidy rates for the individually
investigated exporters and producers (i.e., Astrotech Steels Pvt. Ltd.
(Astrotech) and Geekay). Consistent with sections 705(c)(1)(B)(i)(I)
and 705(c)(5)(A) of the Act, we also calculated an estimated all-others
rate for exporters and producers not individually investigated. Section
705(c)(5)(A)(i) of the Act states that ``the all-others rate shall be
equal to the weighted-average countervailable subsidy rates established
for exporters and producers individually investigated, excluding any
zero and de minimis countervailable subsidy rates, and any rates
determined entirely under section 776 {of the Act{time} .'' Therefore,
Commerce calculated the all-others rate using a weighted average of the
individual estimated subsidy rates
[[Page 51334]]
calculated for the examined respondents using each company's publicly
ranged sales value for the merchandise under consideration.\7\
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\7\ 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. See Memorandum, ``Preliminary Determination
of Subsidy Rate for All Others,'' dated May 31, 2022.
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Final Determination
Commerce determines that the following estimated net
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Astrotech Steels Pvt. Ltd............................... 2.93
Geekay Wires Limited.................................... 2.73
All Others.............................................. 2.85
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Disclosure
Commerce intends to disclose its calculations performed to
interested parties in this final determination within five days of any
public announcement, or if there is no public announcement, within five
days of the publication of this notice in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed 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 June 7, 2022, the date of publication of the Preliminary
Determination in the Federal Register.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order and require a cash deposit of estimated countervailing duties for
such entries of subject merchandise in the amounts indicated above, in
accordance with section 706(a) of the Act. If the ITC determines that
material injury, or threat of material injury, does not exist, this
proceeding will be terminated, and all estimated duties deposited or
securities posted as a result of the suspension of liquidation will be
refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, Commerce will notify
the ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of steel nails
from India. As Commerce's final determination is affirmative, in
accordance with section 705(b) of the Act, the ITC will determine,
within 45 days, whether the domestic industry in the United States is
materially injured, or threatened with material injury, by reason of
imports of steel nails from India. In addition, we are making available
to the ITC all non-privileged and non-proprietary information related
to this investigation. We will allow the ITC access to all privileged
and business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Administrative Protective Order
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the destruction
of proprietary information disclosed under APO in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 771(i) of the Act, and 19 CFR 351.210(c).
Dated: August 15, 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
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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 Issues and Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation Information
IV. Analysis of Programs
V. Analysis of Comments
Comment 1: Whether Commerce Should Apply Adverse Facts Available
(AFA) to Reported Benefits Based on the Government of India's (GOI)
Incomplete Questionnaire Responses
Comment 2: Whether Commerce Properly Initiated the Investigation
and Met its Obligations Subject to the Agreement on Subsidies and
Countervailing Measures (ASCM)
Comment 3: Whether the GOI's System for Measuring Input
Consumption for Duty Drawback (DDB) is Reasonable and Effective
Comment 4: Whether the Export Promotion of Capital Goods Scheme
(EPCGS) Confers a Countervailable Subsidy
Comment 5: Whether the Merchandise Export from India Scheme
(MEIS) Can Be Considered a ``Measure at Issue'' When It Was
Discontinued Prior to the Initiation of This Investigation
Comment 6: Whether the Special Economic Zone (SEZ) Programs are
Countervailable
VI. Recommendation
[FR Doc. 2022-18045 Filed 8-19-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on August 22, 2022.
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