Notice2022-27330
Stainless Steel Wire Rod From the Republic of Korea: Preliminary Negative Determination of Circumvention of the Antidumping Order and Postponement of Final Determination
Primary source
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Published
December 16, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that U.S. imports of stainless steel round wire (SSWire) from the Socialist Republic of Vietnam (Vietnam) are not circumventing the antidumping duty (AD) order on stainless steel wire rod (SSWR) from the Republic of Korea (Korea).
Full Text
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<title>Federal Register, Volume 87 Issue 241 (Friday, December 16, 2022)</title>
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[Federal Register Volume 87, Number 241 (Friday, December 16, 2022)]
[Notices]
[Pages 77072-77073]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27330]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-580-829]
Stainless Steel Wire Rod From the Republic of Korea: Preliminary
Negative Determination of Circumvention of the Antidumping Order and
Postponement of Final Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that U.S. imports of stainless steel round wire (SSWire)
from the Socialist Republic of Vietnam (Vietnam) are not circumventing
the antidumping duty (AD) order on stainless steel wire rod (SSWR) from
the Republic of Korea (Korea).
DATES: Applicable December 16, 2022.
FOR FURTHER INFORMATION CONTACT: Hermes Pinilla or Byeong-hun You, 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) 482-3477 or (202)
482-1018, respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 15, 1998, Commerce published the order on imports of
SSWR from Korea.\1\ On May 18, 2021, North American Stainless (NAS)
requested that Commerce initiate a circumvention inquiry, pursuant to
section 781(c) of the Tariff Act of 1930, as amended (the Act), to
determine whether SSWire from Vietnam involves a minor alteration to
subject merchandise, such that it should be subject to the Order.\2\ On
February 1, 2022, Commerce initiated a country-wide circumvention
inquiry to determine whether U.S. imports of SSWire from Vietnam
involves a minor alteration to subject merchandise, such that it should
be subject to the order on SSWR from Korea.\3\
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\1\ See Notice of Amendment of Final Determination of Sales at
Less Than Fair Value and Antidumping Duty Order: Stainless Steel
Wire Rod from Korea, 63 FR 49331 (September 15, 1998) (Order).
\2\ See NAS's Letter, ``Request for Circumvention Ruling
Pursuant to Section 781(c),'' dated May 18, 2021 (Circumvention
Allegation).
\3\ See Stainless Steel Wire Rod from the Republic of Korea:
Initiation of Circumvention Inquiry of Antidumping Duty Order, 87 FR
5468 (February 1, 2022).
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On March 25, 2022, Commerce selected KOS Vietnam Company Ltd., (KOS
Vietnam), Kuang Tai Metal (Vietnam) Company, Ltd. (Kuang Tai Metal) and
Tengyuan Wire (Vietnam) Company Limited (Tengyuan Wire), as the
mandatory respondents in this circumvention inquiry.\4\ In March 2022,
Commerce issued questionnaires to the three respondents.\5\ In May
2022, all three respondents submitted timely responses.\6\
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\4\ See Memorandum, ``Respondent Selection,'' dated March 25,
2022.
\5\ See Commerce's Letters, ``Circumvention Inquiry Initial
Questionnaire,'' dated March 29, 2022.
\6\ See Kuang Tai Metal's Questionnaire Response, ``Response to
questionnaire dated March 29, 2022,'' submitted on May 13, 2022
(Kuang Tai Metal's Qre Response); see also KOS Vietnam's Letter,
``Initial Questionnaire Response,'' dated May 17, 2022 (KOS
Vietnam's Qre Response); and Teng Yuan Wire's Questionnaire
Response, ``Response to questionnaire dated March 29, 2022,'' dated
May 10, 2022 (Teng Yuan Wire's Qre Response).
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Between June and August 2022, we issued multiple supplemental
questionnaires to KOS Vietnam, Kuang Tai Metal, and Tengyuan Wire and
received timely responses.\7\
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\7\ See Kuang Tai's Letter, ``Circumvention Supplemental
Questionnaire,'' dated July 06, 2022 (Kuang Tai Metal SQR); see also
KOS Vietnam's Letter, ``Supplemental Questionnaire Response'' dated
July 13, 2022 (KOS Vietnam SQR); Tengyuan Wire's' Letter,
``Circumvention Inquiry Initial Questionnaire,'' dated July 20, 2022
(Tengyuan SQR); Kuang Tai Metal's Letter, ``Circumvention Inquiry
2nd Supplemental Questionnaire,'' dated August 3, 2022 (Kuang Tai
Metal 2nd SQR); KOS Vietnam's Letter, ``Second Supplemental
Questionnaire Response, dated August 23, 2022 (KOS Vietnam 2nd SQR);
and, Tengyuan Wire's Letter, ``Circumvention Inquiry Initial
Questionnaire,'' dated August 23, 2022 (Tengyuan Wire 2nd SQR).
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On September 14, 2022, the domestic interested party, North
American Stainless (NAS) filed pre-preliminary comments.\8\ On
September 20, 2022, Tengyuan Wire submitted pre-preliminary rebuttal
comments.\9\ On September 23, 2022, KOS Vietnam submitted pre-
preliminary rebuttal comments.\10\
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\8\ See NAS' Letter, ``NAS's Pre-Preliminary Comments,'' dated
September 15, 2022 (NAS Pre-Prelim Comments).
\9\ See Tengyuan Wire's Letter, ``Pre-Preliminary Rebuttal
Comments,'' dated September 20, 2022 (Tengyuan Wire's Rebuttal
Comments).
\10\ See KOS Vietnam's Letter, ``KOS Vietnam's Pre-Preliminary
Rebuttal Comments,'' dated September 26, 2022 (KOS Vietnam's
Rebuttal Comments).
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Scope of the Order \11\
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\11\ See Order.
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For a full description of the scope of the Order, see the
Preliminary Decision Memorandum.\12\
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\12\ See Memorandum, ``Stainless Steel Wire Rod from the
Republic of Korea: Preliminary Decision Memorandum for the
Circumvention Inquiry on the Antidumping Duty Order,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum) at 3-4.
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Merchandise Subject to the Circumvention Inquiry
This circumvention inquiry covers SSWire completed in Vietnam using
Korea-origin SSWR and subsequently exported from Vietnam to the United
States
Statutory and Regulatory Framework
Section 781(c) of the Act, provides that Commerce may find
circumvention of an AD or CVD order when merchandise of the same class
or kind as subject merchandise has been ``altered in form or appearance
in minor respects...whether or not included in the same tariff
classification.'' Further, section 781(c)(2) of the Act provides an
exception that ``{p{time} aragraph 1 shall not apply with respect to
altered merchandise if the administering authority determines that it
would be unnecessary to consider the altered merchandise within the
scope of the {order{time} .''
While the Act is silent as to what factors to consider in
determining whether alterations are properly considered ``minor,'' the
legislative history of this provision indicates that there are certain
factors that should be considered before reaching a circumvention
determination. In conducting a circumvention inquiry under section
781(c) of the Act, Commerce has generally relied upon ``such criteria
as the overall physical characteristics of the merchandise, the
expectations of the ultimate users, the use of the merchandise, the
channels of marketing and the cost of any modification relative to the
total value of the imported products.'' \13\ Concerning the allegation
of minor alteration under section 781(c) of the Act, Commerce examines
such factors as: (1) overall physical characteristics;
[[Page 77073]]
(2) expectations of ultimate users; (3) use of merchandise; (4)
channels of marketing; and (5) cost of any modification relative to the
value of the imported products.\14\ Each inquiry is highly dependent on
the facts on the record and must be analyzed in light of those specific
facts.\15\ Thus, along with the five factors enumerated above, Commerce
may also consider the circumstances under which the products enter the
United States, including, but not limited to, the timing of the entries
and the quantity of merchandise entered during the circumvention review
period.\16\
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\13\ See Carbon and Certain Alloy Steel Wire Rod from Mexico:
Initiation of Anti-Circumvention Inquiry of Antidumping Duty Order,
83 FR 5405 (February 7, 2018) (citing S. rep. No 71, 100th Cong.,
1sr Sess. 100 (1987)).
\14\ Id.; see also Deacero S.A. de C.V. v. United States, 817
F.3d 1332 (Fed. Cir. 2016).
\15\ See, e.g., Certain Uncoated Paper from Australia, Brazil,
the People's Republic of China, Indonesia, and Portugal: Affirmative
Preliminary Determination of Circumvention of the Antidumping and
Countervailing Duty Orders, 82 FR 26778 (June 9, 2017), and
accompanying Preliminary Decision Memorandum, at ``IV. Statutory and
Regulatory Framework.''
\16\ Id.; see also Affirmative Preliminary Determination of
Circumvention of the Antidumping Duty Order on Certain Cut-to-Length
Steel Plate from the People's Republic of China, 74 FR 33991, 33992-
93 (July 14, 2009); Brass Sheet and Strip from West Germany;
Negative Final Determination of Circumvention of Antidumping Duty
Order, 56 FR 65884 (December 19, 1991); and Small Diameter Graphite
Electrodes from the People's Republic of China: Initiation of
Anticircumvention Inquiry, 77 FR 37873 (June 25, 2012).
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Preliminary Determination
As detailed in the Preliminary Decision Memorandum, Commerce
preliminarily determines that the SSWire completed in Vietnam using
Korea-origin SSWR and subsequently exported from Vietnam to the United
States is not circumventing the Order on a country-wide basis.
Accordingly, Commerce is making a negative preliminary finding of
circumvention of the Order.
Methodology
As noted above, Commerce is conducting this circumvention inquiry
in accordance with section 781(c) of the Act. For a complete
description of the events that followed the initiation of these
circumvention inquiries, see the Preliminary Decision Memorandum. A
list of topics included in the Preliminary Decision Memorandum is
included as an Appendix 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>.
Verification
As provided in 19 CFR 351.307, Commerce intends to verify
information relied upon in making its final determination.
Public Comment
Because Commerce intends to conduct verification, interested
parties will be provided an opportunity to submit written comments
(case briefs) at a date to be determined by Commerce and rebuttal
comments (rebuttal briefs) within seven days after the time limit for
filing case briefs.\17\ Parties who submit case briefs or rebuttal
briefs in this proceeding 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.\18\ Case and rebuttal briefs should be
filed electronically via ACCESS.\19\ Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\20\
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\17\ See 19 CFR 351.309(c)(l)(ii) and 351.309(d)(l). Interested
parties will be notified through ACCESS regarding the deadline for
submitting case briefs; see also 19 CFR 351.303 (for general filing
requirements).
\18\ See 19 CFR 351.309(c)(2)(d)(2).
\19\ See 19 CFR 351.303.
\20\ 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. 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.
Postponement of Final Determination
In accordance with 19 CFR 351.302(b), unless expressly precluded by
the statute, Commerce, may, for good cause, extend any time limit. As
we indicate above, Commerce intends to conduct verification of
information relied upon, pursuant to 19 CFR 351.307, prior to issuing
it final determination. As such, Commerce has determined that
additional time is necessary to issue the final determination of this
circumvention inquiry. Therefore, in accordance with 19 CFR 351.302(b),
we are extending the deadline for issuing the final determination of
this circumvention inquiry by 120 days, until April 11, 2023.
Notification to Interested Parties
This determination is issued and published in accordance with
section 781(c) of the Act and 19 CFR 351.226(g)(1).
Dated: December 12, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Merchandise Subject to the Circumvention Inquiry
V. Period of Circumvention Inquiry
VI. Surrogate Countries and Methodology for Valuing Inputs From
Korea and Processing in Vietnam
VII. Legal Framework
VIII. Application of Facts Otherwise Available and Adverse
Inferences
IX. Statutory Analysis for the Circumvention Inquiry
X. Summary of Statutory Analysis
XI. Verification
XII. Country-Wide Preliminary Negative Determination of
Circumvention
XIII. Recommendation
[FR Doc. 2022-27330 Filed 12-15-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on December 16, 2022.
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