Notice2022-18050
Certain Steel Nails From Sri Lanka: 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 Sri Lanka.
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 51337-51339]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18050]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-542-805]
Certain Steel Nails From Sri Lanka: 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 Sri Lanka.
DATES: Applicable August 22, 2022.
FOR FURTHER INFORMATION CONTACT: Nathan James, 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) 482-5305.
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 Sri Lanka: Preliminary
Affirmative Countervailing Duty Determination, 87 FR 34645 (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 Sri Lanka,'' 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 January 1, 2020, through December
31, 2020.
Scope of the Investigation
The products covered by this investigation are steel nails from Sri
Lanka. 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 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, 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 to be 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,
[[Page 51338]]
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 Letter, ``In Lieu of Verification
Questionnaire,'' dated June 6, 2022; see also Trinity Steel's
Letter, ``Trinity In Lieu of Verification Questionnaire Response,''
dated June 14, 2022.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, we did not make changes to the subsidy rate calculations for
Trinity Steel Private Limited (Trinity Steel).
All-Others Rate
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated a countervailable subsidy rate for the individually
investigated exporter and producer (i.e., Trinity Steel). 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 all other exporters and
producers not individually investigated. Section 705(c)(5)(A) of the
Act states that Commerce shall determine an all-others rate for
companies not individually examined. Section 705(c)(5)(A)(i) of the Act
states that ``the all-others rate shall be an amount 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} .'' Commerce calculated an
individual estimated countervailable subsidy rate for Trinity Steel
that is not zero, de minimis, or based entirely on facts otherwise
available. Accordingly, we have assigned Trinity Steel's subsidy rate
to all other producers and exporters, pursuant to section
705(c)(5)(A)(i) of the Act.
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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Trinity Steel Private Limited........................... 4.12
All Others.............................................. 4.12
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Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a final determination within five days of
any public announcement or, if there is no public announcement, within
five days of the date of publication of the notice of final
determination in the Federal Register, in accordance with 19 CFR
351.224(b). However, because there are no changes to the calculations
from the Preliminary Determination, no additional disclosure is
necessary.
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 Sri Lanka. 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 Sri Lanka. 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
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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 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 Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation Information
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether Commerce Should Revise the Base Rate of
Taxation Used in its Income Tax Exemption Benefit Calculation
Comment 2: Whether Commerce Should Alter its Treatment of
Certain Income Tax Deductions
Comment 3: Whether the Board of Investment's (BOI) Provision of
Land to Trinity Steel is Countervailable
A. Investigation into Countervailability of Trinity Steel's Land
Acquisition
B. Selection of the Land Benchmark
Comment 4: Whether Commerce Should Continue to Countervail
Import Duty Exemptions on Raw Material Imports
VII. Recommendation
[FR Doc. 2022-18050 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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