Notice2022-24213
Carbon and Alloy Steel Threaded Rod From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2019-2020
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Published
November 7, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to the producers and exporters subject to the administrative review of carbon and alloy steel threaded rod (threaded rod) from the People's Republic of China (China) during the period of review (POR) July 29, 2019, through December 31, 2020.
Full Text
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<title>Federal Register, Volume 87 Issue 214 (Monday, November 7, 2022)</title>
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[Federal Register Volume 87, Number 214 (Monday, November 7, 2022)]
[Notices]
[Pages 67016-67018]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-24213]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-105]
Carbon and Alloy Steel Threaded Rod From the People's Republic of
China: Final Results of Countervailing Duty Administrative Review;
2019-2020
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 the producers and
exporters subject to the administrative review of carbon and alloy
steel threaded rod (threaded rod) from the People's Republic of China
(China) during the period of review (POR) July 29, 2019, through
December 31, 2020.
DATES: Applicable November 7, 2022.
FOR FURTHER INFORMATION CONTACT: Thomas Schauer or Allison Hollander,
AD/CVD Operations, Office I, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-0410 or (202)
482-2805, respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 6, 2022, Commerce published the preliminary results of the
2019-2020 administrative review of the countervailing duty order on
threaded rod from China.\1\ This review covers two mandatory
respondents, Zhejiang Junyue Standard Part Co., Ltd. (Junyue) and
Ningbo Zhongjiang High Strength Bolts Co., Ltd. (Zhongjiang Bolts), and
three non-examined producers or exporters of subject merchandise. We
invited interested parties to comment on the Preliminary Results.\2\ On
June 6, 2022, we received timely case briefs from Vulcan Threaded
Products Inc. (the petitioner), Junyue, and Zhongjiang Bolts. On June
13, 2022, we received timely rebuttal briefs from the petitioner,
Junyue, and Zhongjiang Bolts. For a complete description of the events
that occurred since the Preliminary Results, see the Issues and
Decision Memorandum.\3\
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\1\ See Carbon and Alloy Steel Threaded Rod From the People's
Republic of China: Preliminary Results of Countervailing Duty
Administrative Review and Rescission of Administrative Review in
Part; 2019-2020, 87 FR 27104 (May 6, 2022) (Preliminary Results),
and accompanying Preliminary Decision Memorandum (PDM).
\2\ See Preliminary Results, 87 FR at 27106.
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Results of the Countervailing Duty Administrative Review of
Carbon and Alloy Steel Threaded Rod from the People's Republic of
China; 2019-2020,'' dated concurrently with, and hereby adopted by,
this notice (Issues and Decision Memorandum).
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Scope of the Order <SUP>4</SUP>
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\4\ See Carbon and Alloy Steel Threaded Rod from India and the
People's Republic of China: Countervailing Duty Orders, 85 FR 19927
(April 9, 2020) (Order).
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The product covered by the Order is threaded rod from China. A full
description of the scope of the Order is contained in the Issues and
Decision Memorandum.
Analysis of Comments Received
All issues raised by interested parties in briefs are addressed in
the Issues and Decision Memorandum accompanying this notice. A list of
the issues addressed in the Issues and Decision Memorandum is provided
in the appendix to this notice. 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>.
Changes Since the Preliminary Results
Based on comments in case and rebuttal briefs and record evidence,
Commerce made certain changes from the Preliminary Results regarding
the calculation of wire rod and steel bar benchmarks and we have
corrected several ministerial errors. As a result of these changes, the
final rates for Junyue and Zhongjiang Bolts have changed and the rate
for non-selected respondents also changed. These changes are explained
in the Issues and Decision Memorandum.
Methodology
Commerce conducted this administrative review in accordance with
section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act).
For each subsidy program found to be countervailable, Commerce finds
that there is a subsidy, i.e., a financial contribution from a
government or public entity that gives rise to a benefit to the
recipient, and that the subsidy is specific.\5\ For a full description
of the methodology underlying all of Commerce's conclusions, including
any determination that relied upon the use of adverse facts available
pursuant to section 776(a) and (b) of the Act, see the Issues and
Decision Memorandum.
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\5\ 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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Companies Not Selected for Individual Review
The statute and Commerce's regulations do not address the
establishment of a rate to be applied to companies not selected for
examination when Commerce limits its examination in an administrative
review pursuant to section 777A(c)(2) of the Act. Generally, Commerce
looks to section 705(c)(5) of the Act, which provides instructions for
determining the all-others rate in an investigation, for guidance when
calculating the rate for companies
[[Page 67017]]
which were not selected for individual examination in an administrative
review. Under section 705(c)(5)(A) of the Act, the all-others rate is
normally an amount equal to the weighted average of the countervailable
subsidy rates established for exporters and producers individually
investigated, excluding any zero or de minimis countervailable subsidy
rates, and any rates determined entirely on the basis of facts
available.
There are three companies for which a review was requested and not
rescinded, and which were not selected as mandatory respondents or
found to be cross owned with a mandatory respondent: (1) Ningbo Dingtuo
Imp. & Exp. Co., Ltd.; (2) Ningbo Dongxin High-Strength Nut Co., Ltd.;
and (3) Ningbo Jinding Fastening Piece Co., Ltd. For these non-selected
companies, because the rates calculated for the mandatory respondents,
Junyue and Zhongjiang Bolts, were above de minimis and not based
entirely on facts available, we are applying the weighted average of
the net countervailable subsidy rates calculated for the mandatory
respondents, which we calculated using the publicly-ranged sales data
submitted by Junyue and Zhongjiang Bolts.\6\ This methodology to
establish the non-selected subsidy rate is consistent with our practice
with regard to the all-others rate, pursuant to section 705(c)(5)(A)(i)
of the Act.
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\6\ 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 quantities 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.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010); see also Memorandum, ``Administrative Review of
the Countervailing Duty Order on Carbon and Alloy Steel Threaded Rod
from the People's Republic of China: Calculation of Rate for
Respondents Not Selected for Individual Examination,'' dated
concurrently with this notice.
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Final Results of Administrative Review
In accordance with 19 CFR 351.221(b)(5), Commerce calculated the
following net countervailable subsidy rates for the period July 29,
2019, through December 31, 2020:
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Subsidy rate-- Subsidy rate--
2019 (percent 2020 (percent
Company ad valorem) ad valorem)
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Ningbo Zhongjiang High Strength Bolts 6.42 5.64
Co., Ltd \1\...........................
Zhejiang Junyue Standard Part Co., Ltd 5.09 5.79
\2\....................................
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Review-Specific Average Rate Applicable to the Following Companies:
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Ningbo Dingtuo Imp. & Exp. Co., Ltd..... 5.94 5.69
Ningbo Dongxin High-Strength Nut Co., 5.94 5.69
Ltd....................................
Ningbo Jinding Fastening Piece Co., Ltd. 5.94 5.69
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\1\ In the original investigation, Commerce found Ningbo Zhongmin Metal
Product Co., Ltd., to be cross-owned with Ningbo Zhongjiang High
Strength Bolts Co., Ltd. See Carbon and Alloy Steel Threaded Rod from
the People's Republic of China: Preliminary Affirmative Countervailing
Duty Determination and Alignment of Final Determination With Final
Antidumping Duty Determination, 84 FR 36578 (July 29, 2019), and
accompanying PDM, at 28, unchanged in Carbon and Alloy Steel Threaded
Rod from the People's Republic of China: Final Affirmative
Countervailing Duty Determination, 85 FR 8833 (February 18, 2020). As
the facts have not changed in this review, we continue to find Ningbo
Zhongmin Metal Product Co., Ltd., to be cross-owned with Ningbo
Zhongjiang High Strength Bolts Co., Ltd. See also Preliminary Results
PDM.
\2\ As discussed in the Preliminary Results PDM, Commerce finds the
following companies to be cross-owned with Zhejiang Junyue Standard
Part Co., Ltd.: Jiaxing Chengyue Trading Co., Ltd.; and Haiyan County
Brothers Paper Industry Co., Ltd.
Disclosure
We intend to disclose the calculations performed in connection with
the final results of review to parties in this proceeding within five
days after public announcement of the final results or, if there is no
public announcement, within five days of the date of publication of the
notice of final results in the Federal Register, in accordance with 19
CFR 351.224(b).
Assessment Rates
Pursuant to section 751(a)(2)(C) of the Act and 19 CFR
351.212(b)(2), Commerce will determine, and U.S. Customs and Border
Protection (CBP) shall assess, countervailing duties on all appropriate
entries of subject merchandise covered by this review. We intend to
issue assessment instructions to CBP no earlier than 35 days after the
date of publication of these final results of review. If a timely
summons is filed at the U.S. Court of International Trade, the
assessment instructions will direct CBP not to liquidate relevant
entries until the time for parties to file a request for a statutory
injunction has expired (i.e., within 90 days of publication).
Cash Deposit Instructions
In accordance with section 751(a)(1) of the Act, Commerce intends
to instruct CBP to collect cash deposits of estimated countervailing
duties in the amounts shown for each of the respective companies listed
above on shipments of subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the date of publication of the
final results of this administrative review. For all non-reviewed firms
subject to the Order, we will instruct CBP to continue to collect cash
deposits of estimated countervailing duties at the most recent company-
specific or all-others rate applicable to the company, as appropriate.
These cash deposit requirements, effective upon publication of the
final results of review, shall remain in effect until further notice.
Administrative Protective Order
This notice also serves as a reminder to parties subject to an
administrative protective order (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 or 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 sanctionable
violation.
Notification to Interested Parties
Commerce is issuing and publishing the final results of review in
accordance
[[Page 67018]]
with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR
351.221(b)(5).
Dated: November 1, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Changes Since the Preliminary Results
V. Non-Selected Companies Under Review
VI. Subsidies Valuation Information
VII. Interest Rates, Discount Rates, and Benchmarks
VIII. Use of Facts Otherwise Available and Application of Adverse
Inferences
IX. Analysis of Programs
X. Analysis of Comments
Comment 1: Whether Commerce Should Apply Adverse Facts Available
(AFA) to the Export Buyer's Credit (EBC) Program
Comment 2: Wire Rod and Steel Bar Benchmarks Calculation
Comment 3: Ocean Freight Benchmark Calculation
Comment 4: Whether Haiyan County Brothers Paper Industry Co.,
Ltd. (Brother Paper) Is Cross-Owned With Junyue
Comment 5: Whether Commerce Should Countervail Certain of
Junyue's Purchases of Electricity
Comment 6: Whether Commerce Should Revise Its Calculation of
Junyue's Benefits for Policy Loans and Discount Notes
Comment 7: Whether Commerce Should Revise Its Calculation of
Zhongjiang Bolts Benefits for Policy Loans
Comment 8: Whether Commerce Should Revise Its Calculation of the
Subsidy Rate for Certain ``Other Subsidies''
Comment 9: Whether Commerce Should Revise Its Calculation of
Zhongjiang Bolts' Subsidy Rate for Outbound Ocean Freight Rates for
Less Than Adequate Remuneration (LTAR)
XI. Recommendation
[FR Doc. 2022-24213 Filed 11-4-22; 8:45 am]
BILLING CODE 3510-DS-P
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