Notice2022-27692
Certain Collated Steel Staples From the People's Republic of China: Initiation of Circumvention Inquiries on the Antidumping Duty and Countervailing Duty Orders
Primary source
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Published
December 21, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from KYOCERA SENCO Industrial Tools, Inc. (Senco), the Department of Commerce (Commerce) is initiating country-wide circumvention inquiries to determine whether imports of certain collated steel staples (collated staples), which are completed in Thailand or Vietnam using parts and components from the People's Republic of China (China), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on collated staples from China.
Full Text
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<title>Federal Register, Volume 87 Issue 244 (Wednesday, December 21, 2022)</title>
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[Federal Register Volume 87, Number 244 (Wednesday, December 21, 2022)]
[Notices]
[Pages 78047-78048]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27692]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-112, C-570-113]
Certain Collated Steel Staples From the People's Republic of
China: Initiation of Circumvention Inquiries on the Antidumping Duty
and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from KYOCERA SENCO Industrial Tools,
Inc. (Senco), the Department of Commerce (Commerce) is initiating
country-wide circumvention inquiries to determine whether imports of
certain collated steel staples (collated staples), which are completed
in Thailand or Vietnam using parts and components from the People's
Republic of China (China), are circumventing the antidumping duty (AD)
and countervailing duty (CVD) orders on collated staples from China.
DATES: Applicable December 21, 2022.
FOR FURTHER INFORMATION CONTACT: Brian Smith (Thailand) or Shane Subler
(Vietnam), Office VIII, AD/CVD Operations, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1766
and (202) 482-2000, respectively.
SUPPLEMENTARY INFORMATION:
Background
On November 15, 2022, pursuant to section 781(b) of the Tariff Act
of 1930, as amended (the Act), and 19 CFR 351.226(c), Senco filed a
circumvention inquiry request alleging that collated staples completed
in Thailand or Vietnam using parts and components manufactured in China
are circumventing the orders \1\ and, accordingly, should be included
within the scope of the orders.\2\
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\1\ See Certain Collated Steel Staples from the People's
Republic of China: Antidumping Duty Order, 85 FR 43815 (July 20,
2020); and Certain Collated Steel Staples from the People's Republic
of China: Countervailing Duty Order, 85 FR 43813 (July 20, 2020)
(collectively, Orders).
\2\ See Senco's Letters, ``Request for Anticircumvention Inquiry
Pursuant to Section 781(b) of the Tariff Act of 1930, as Amended,''
dated November 15, 2022 (Vietnam Circumvention Inquiry Request); and
``Request for Anticircumvention Inquiry Pursuant to Section 781(b)
of the Tariff Act of 1930, as Amended,'' dated November 15, 2022
(Thailand Circumvention Inquiry Request).
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Scope of the Orders
The merchandise covered by these Orders is certain collated steel
staples. Merchandise covered by these Orders is currently classifiable
under subheading 8305.20.0000 of the Harmonized Tariff Schedule of the
United States (HTSUS). While the HTSUS subheading and ASTM
specification are provided for convenience and for customs purposes,
the written description of the subject merchandise is dispositive. See
the Initiation Memorandum for further discussion.\3\
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\3\ See Memorandum, ``Certain Collated Steel Staples from the
People's Republic of China: Initiation of Circumvention Inquiries on
Antidumping and Countervailing Duty Orders,'' dated concurrently
with, and hereby adopted by, this notice (Initiation Memorandum).
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Merchandise Subject to the Circumvention Inquiries
The circumvention inquiries cover collated staples that have been
completed in Thailand or Vietnam, using parts and components from
China, that are then subsequently exported from Thailand or Vietnam to
the United States.
Initiation of Circumvention Inquiries
Section 351.226(d) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
request for a circumvention inquiry allege ``that the elements
necessary for a circumvention determination under section 781 of the
Act exist'' and be ``accompanied by information reasonably available to
the interested party supporting these allegations.'' Senco alleged
circumvention pursuant to section 781(b) of the Act (merchandise
completed or assembled in other foreign countries).
According to section 781(b)(1) of the Act, after taking into
account any advice provided by the U.S. International Trade Commission
(ITC) under section 781(e) of the Act, Commerce may find merchandise
imported into the United States to be covered by the scope of an order
if: (A) merchandise imported into the United States is of the same
class or kind as any merchandise produced in a foreign country that is
the subject of an AD order or finding or a CVD order; (B) before
importation into the United States, such imported merchandise is
completed or assembled in another foreign country from merchandise
which is subject to the order or finding
[[Page 78048]]
or is produced in the foreign country with respect to which such order
or finding applies; (C) the process of assembly or completion in the
foreign country referred to in subparagraph (B) is minor or
insignificant; (D) the value of the merchandise produced in the foreign
country to which the AD (or CVD) order applies is a significant portion
of the total value of the merchandise exported to the United States;
and (E) the administering authority determines that action is
appropriate to prevent evasion of such order or finding.
In determining whether the process of assembly or completion in a
foreign country is minor or insignificant under section 781(b)(1)(C) of
the Act, section 781(b)(2) of the Act directs Commerce to consider: (A)
the level of investment in the foreign country; (B) the level of
research and development in the foreign country; (C) the nature of the
production process in the foreign country; (D) the extent of production
facilities in the foreign country; and (E) whether the value of
processing performed in the foreign country represents a small
proportion of the value of the merchandise imported into the United
States.
In addition, section 781(b)(3) of the Act sets forth additional
factors to consider in determining whether to include merchandise
assembled or completed in a foreign country within the scope of an AD
or CVD order. Specifically, Commerce shall take into account such
factors as: (A) the pattern of trade, including sourcing patterns; (B)
whether the manufacturer or exporter of the merchandise that was
shipped to the foreign country for completion or assembly is affiliated
with the person in the foreign country who assembles or completes the
merchandise that is subsequently imported into the United States; and
(C) whether imports into the foreign country of the merchandise that
was completed or assembled have increased after the initiation of the
investigation which resulted in the issuance of the order or finding.
Based on our analysis of Senco's circumvention inquiry requests, we
determined that Senco satisfied the criteria under 19 CFR 351.226(c),
and thus, pursuant to 19 CFR 351.226(d)(1)(ii), we have accepted the
request and are initiating the requested circumvention inquiries of the
Orders. For a full discussion of the basis for our decision to initiate
the requested circumvention inquiries, see the Initiation Memorandum.
Moreover, as explained in the Initiation Memorandum, based on the
information provided by Senco, we have initiated country-wide
circumvention inquiries. Commerce has taken this approach in prior
circumvention inquiries where the facts warranted initiation on a
country-wide basis.\4\
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\4\ See, e.g., Certain Corrosion-Resistant Steel Products from
the Republic of Korea and Taiwan: Initiation of Anti-Circumvention
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83
FR 37785 (August 2, 2018); Carbon Steel Butt-Weld Pipe Fittings from
the People's Republic of China: Initiation of Anti-Circumvention
Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August
25, 2017) (stating at initiation that Commerce would evaluate the
extent to which a country-wide finding applicable to all exports
might be warranted); and Certain Corrosion-Resistant Steel Products
from the People's Republic of China: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing
Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at
initiation that Commerce would evaluate the extent to which a
country-wide finding applicable to all exports might be warranted).
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Consistent with the approach taken in prior circumvention inquiries
that Commerce initiated on a country-wide basis, we intend to solicit
information from certain companies in Thailand and Vietnam concerning
their production of collated staples and their shipments thereof to the
United States. A company's failure to completely respond to Commerce's
requests for information may result in the application of partial or
total facts available, pursuant to section 776(a) of the Act, which may
include adverse inferences, pursuant to section 776(b) of the Act.
For companion AD and CVD proceedings, ``the Secretary will initiate
and conduct a single inquiry with respect to the product at issue for
both orders only on the record of the antidumping proceeding.'' \5\
Further, ``{o{time} nce the Secretary issues a final circumvention
determination on the record of the antidumping duty proceeding, the
Secretary will include a copy of that determination on the record of
the countervailing duty proceeding.'' \6\ Accordingly, once Commerce
concludes this circumvention inquiry, Commerce intends to place its
final circumvention determination on the record of the companion CVD
proceedings.
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\5\ See 19 CFR 351.226(m)(2).
\6\ Id.
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Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs
and Border Protection (CBP) of its initiation of the requested
circumvention inquiries and direct CBP to continue the suspension of
liquidation of entries of products subject to the circumvention
inquiries that were already subject to the suspension of liquidation
and to apply the cash deposit rate that would be applicable if the
products were determined to be covered by the scope of the Orders.
Should Commerce issue preliminary or final circumvention
determinations, Commerce will follow the suspension of liquidation
rules under 19 CFR 351.226(l)(2)-(4).
Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(b) of the Act,
Commerce has determined that Senco's request for circumvention
inquiries satisfies the requirements of 19 CFR 351.226(c). Accordingly,
Commerce is notifying all interested parties of the initiation of
circumvention inquiries to determine whether U.S. imports of collated
staples that have been completed in, and exported from, Thailand or
Vietnam using parts and components manufactured in China, are
circumventing the Orders. We included a description of the products
that are subject to the circumvention inquiries, and an explanation of
the reasons for Commerce's decision to initiate these inquiries, in the
accompanying Initiation Memorandum.\7\ In accordance with 19 CFR
351.226(e)(1), Commerce intends to issue its preliminary determinations
in these circumvention proceedings no later than 150 days from the date
of publication of this notice in the Federal Register.
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\7\ See Initiation Memorandum.
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This notice is published in accordance with section 781(b) of the
Act and 19 CFR 351.226(d)(1)(ii).
Dated: December 14, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Circumvention Initiation Memo
I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiries
V. Statutory and Regulatory Framework for Circumvention Inquiries
VI. Statutory Analysis for the Circumvention Inquiries
VII. Whether Process of Assembly or Completion is Minor or
Insignificant
VIII. Additional Factors to Consider in Determining Whether
Circumvention Inquiries are Warranted
IX. Comments Opposing the Initiation of the Circumvention Inquiries
X. Country-Wide Circumvention Inquiries
XI. Suspension of Liquidation
XII. Recommendation
[FR Doc. 2022-27692 Filed 12-20-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on December 21, 2022.
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