Notice2023-14804
Alloy and Certain Carbon Steel Threaded Rod From the People's Republic of China; Carbon and Alloy Steel Threaded Rod From the People's Republic of China: Initiation of Circumvention Inquiries on the Antidumping Duty Order and Countervailing Duty Order
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
July 12, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from Vulcan Threaded Products Inc. (Vulcan), the U.S. Department of Commerce (Commerce) is initiating country-wide circumvention inquiries to determine whether steel threaded rod, made from alloy steel, that is produced in the United States from unthreaded pins imported from the People's Republic of China (China) is circumventing the antidumping duty (AD) order on alloy and certain carbon steel threaded rod from China and the countervailing duty (CVD) order on carbon and alloy steel threaded rod from China.
Full Text
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<title>Federal Register, Volume 88 Issue 132 (Wednesday, July 12, 2023)</title>
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[Federal Register Volume 88, Number 132 (Wednesday, July 12, 2023)]
[Notices]
[Pages 44277-44279]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-14804]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-104, C-570-105]
Alloy and Certain Carbon Steel Threaded Rod From the People's
Republic of China; Carbon and Alloy Steel Threaded Rod From the
People's Republic of China: Initiation of Circumvention Inquiries on
the Antidumping Duty Order and Countervailing Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Vulcan Threaded Products Inc.
(Vulcan), the U.S. Department of Commerce (Commerce) is initiating
country-wide circumvention inquiries to determine whether steel
threaded rod, made from alloy steel, that is produced in the United
States from unthreaded pins imported from the People's Republic of
China (China) is circumventing the antidumping duty (AD) order on alloy
and certain carbon steel threaded rod from China and the countervailing
duty (CVD) order on carbon and alloy steel threaded rod from China.
DATES: Applicable July 12, 2023.
FOR FURTHER INFORMATION CONTACT: Robert Galantucci; AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230; telephone: (202) 482-2923.
SUPPLEMENTARY INFORMATION:
Background
On May 22, 2023, pursuant to section 781(a) of the Tariff Act of
1930, as amended (the Act), and 19 CFR 351.226(c), Vulcan filed a
request for circumvention inquiries \1\ alleging that steel threaded
rod completed in the United States using unthreaded pins imported from
China was circumventing the AD and CVD orders on steel
[[Page 44278]]
threaded rod from China.\2\ On June 14, 2023, we issued a supplemental
questionnaire to Vulcan,\3\ and we extended the time period for
determining whether to initiate circumvention inquiries by 15 days,
until July 6, 2023.\4\
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\1\ See Vulcan's Letter, ``Request for Circumvention Inquiry,''
dated May 22, 2023 (Circumvention Request).
\2\ Vulcan's Circumvention Request related to three separate
orders: (1) Certain Steel Threaded Rod from the People's Republic of
China: Notice of Antidumping Duty Order, 74 FR 17154 (April 14,
2009) (2009 AD Order); (2) Alloy and Certain Carbon Steel Threaded
Rod From the People's Republic of China: Antidumping Duty Order, 85
FR 19929 (April 9, 2020) (2020 AD Order); and (3) Carbon and Alloy
Steel Threaded Rod From India and the People's Republic of China:
Countervailing Duty Orders, 85 FR 19927 (April 9, 2020) (2020 CVD
Order).
\3\ See Commerce's Letter, ``Request for Circumvention
Inquiries--Supplemental Questionnaire,'' dated June 14, 2023.
\4\ See Memorandum, ``Extension of Time to Determine Whether to
Initiate Circumvention Inquiries,'' dated June 14, 2023.
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On June 15, 2023, Commerce received a submission from Birmingham
Fastener Inc. and Dan-Loc Group LLC, importers and U.S. producers of
steel threaded rod, opposing initiation of circumvention inquiries.\5\
On June 22, 2023, Vulcan responded to Commerce's questionnaire.\6\
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\5\ See Birmingham/Dan-Loc's Letter, ``Opposition to Request for
Circumvention Inquiry,'' dated June 14, 2023.
\6\ See Vulcan's Letter, ``Response to Supplemental
Questionnaire,'' dated June 22, 2023 (Vulcan June 22, 2023 SQR).
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Scope of the Orders
The merchandise covered by these orders is alloy and carbon steel
threaded rod from China. A full description of the scope of the orders
is provided in the Initiation Checklists.\7\
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\7\ See Initiation Checklists, ``Circumvention Initiation
Checklist,'' dated concurrently with, and hereby adopted by, this
notice (AD Checklist--2020 Order), at Attachment I; and
``Circumvention Initiation Checklist,'' dated concurrently with, and
hereby adopted by, this notice (CVD Checklist--2020 Order), at
Attachment I.
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Merchandise Subject to the Circumvention Inquiries
These circumvention inquiries cover steel threaded rod, made from
alloy steel, completed in the United States using unthreaded pins
imported from China.
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.'' Vulcan alleges
circumvention pursuant to section 781(a) of the Act (merchandise
completed or assembled in the United States).
Section 781(a)(1) of the Act provides that Commerce may find
circumvention of an order when merchandise of the same class or kind
subject to the order is completed or assembled in the United States
from parts or components produced in the country subject to the order.
In conducting a circumvention inquiry under section 781(a)(1) of the
Act, Commerce relies on the following criteria: (A) merchandise sold in
the United States is of the same class or kind as any merchandise that
is the subject of an AD or CVD order; (B) such merchandise sold in the
United States is completed or assembled in the United States from parts
or components produced in the foreign country with respect to which
such order applies; (C) the process of assembly or completion in the
United States is minor or insignificant; and (D) the value of the parts
or components referred to in subparagraph (B) is a significant portion
of the total value of the merchandise.
No single factor, by itself, controls Commerce's determination of
whether the process of assembly or completion in the United States is
minor or insignificant within the meaning of 781(a) of the Act.\8\
Accordingly, it is Commerce's practice to evaluate each of the five
criteria specified therein, and to reach an affirmative or negative
circumvention determination based on the totality of the circumstances
of the particular circumvention inquiry.\9\
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\8\ See Statement of Administrative Action Accompanying the
Uruguay Round Agreements Act, H.R. Doc. No. 103-316, Vol. 1 (1994),
at 893.
\9\ See, e.g., Hydrofluorocarbon Blends from the People's
Republic of China: Final Negative Scope Ruling on Gujarat
Fluorochemicals Ltd.'s R-410A Blend; Affirmative Final Determination
of Circumvention of the Antidumping Duty Order by Indian Blends
Containing CCC Components, 85 FR 61930 (October 1, 2020), and
accompanying Issues and Decision Memorandum at 20 (specifying the
applicable standard in the context of an inquiry under section
781(b) of the Act).
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Furthermore, section 781(a)(3) of the Act sets forth additional
factors to consider in determining whether to include merchandise
assembled or completed in the United States 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 parts or components is
affiliated with the entity that assembles or completes the merchandise
sold in the United States from the parts or components produced in the
foreign country to which the order applies; and (C) whether imports
into the United States of the parts or components produced in such
foreign country have increased after the initiation of the
investigation that resulted in the issuance of such order. As discussed
below, Vulcan provided allegations and supporting evidence with respect
to the above-refenced criteria as they relate to products within the
2020 AD Order and the 2020 CVD Order.
Analysis
Based on our analysis \10\ of Vulcan's request for circumvention
inquiries, we determine that Vulcan satisfied the criteria set forth by
19 CFR 351.226(c) with respect to the certain products within the 2020
AD Order (i.e., A-570-104, covering alloy and certain carbon steel
threaded rod from China) and the 2020 CVD Order (i.e., C-570-105,
covering carbon and alloy steel threaded rod from China). Vulcan did
not provide evidence in support of its allegation as it relates to
carbon-quality steel products; therefore, Vulcan's request did not meet
the requirements set forth by 19 CFR 351.226(c) with respect to the
2009 AD Order (i.e., A-570-932, which covers carbon quality steel
threaded rod from China),\11\ or the carbon steel threaded rod
contained in the 2020 AD Order and the 2020 CVD Order. Accordingly,
pursuant to 19 CFR 351.226(d)(1)(ii), we have accepted Vulcan's request
with respect to the alloy products covered by the 2020 AD Order and the
2020 CVD Order and are initiating circumvention inquiries for these
orders with respect to alloy steel threaded rod. For a full discussion
of the basis for our decision to initiate these circumvention
inquiries, see Initiation Checklists.
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\10\ See generally AD Checklist--2020 Order; and CVD Checklist--
2020 Order; see also Commerce's Letter, ``Rejection of Circumvention
Request,'' dated July 6, 2023.
\11\ See Vulcan June 22, 2023 SQR at 2 (``Vulcan is not aware of
any publicly available information indicating that circumvention is
currently occurring with respect to the antidumping duty order on
carbon steel threaded rod from China (A-570-932).'').
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Furthermore, pursuant to 19 CFR 351.226(c)(2)(iii) and (v), Vulcan
asserted that the company-specific information underlying its
allegation was likely representative of the broader universe of
circumvention. Accordingly, Vulcan stated that it is appropriate to
conduct these inquiries on a country-wide basis; the company identified
prior instances where Commerce considered
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allegations to be generally applicable (rather than company-specific),
and also alleged that there was the potential for unaddressed evasion
absent country-wide inquiries.\12\ Based on these considerations,
Commerce is initiating these circumvention inquiries on a country-wide
basis.
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\12\ See Circumvention Request at 27.
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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 the initiation of circumvention
inquiries and will direct CBP to continue the suspension of liquidation
of entries of products subject to these circumvention inquiries that
were already subject to the suspension of liquidation under the orders
and to apply the cash deposit rate that would be applicable if the
products were determined to be covered by the applicable scope. Should
Commerce issue affirmative 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(a) of the Act,
Commerce determines that Vulcan's request for circumvention inquiries
relating to the 2020 AD Order and the 2020 CVD Order satisfies the
requirements of 19 CFR 351.226(c). Accordingly, Commerce is notifying
all interested parties of the initiation of these circumvention
inquiries to determine whether alloy steel threaded rod produced in the
United States from unthreaded pins imported from China is circumventing
these orders.
Additionally, we are hereby providing interested parties with an
opportunity to comment on any additional entities--i.e., importers,
exporters, producers--that are involved in the supply, sale, or
production related to alloy steel threaded rod completed in the United
States using unthreaded pins imported from China. Comments on the
identity of such entities are due within seven days of publication of
this notice in the Federal Register.
We have included a description of the products that are subject to
these inquiries and an explanation of Commerce's decision to initiate
in the accompanying Initiation Checklists.\13\ In accordance with 19
CFR 351.226(e)(1), Commerce intends to issue its preliminary
circumvention determinations no later than 150 days from the date of
publication of the notice of initiation of these circumvention
inquiries in the Federal Register.
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\13\ See generally AD Checklist--2020 Order; and CVD Checklist--
2020 Order.
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This notice is published in accordance with section 781(a) of the
Act and 19 CFR 351.226(d)(1)(ii).
Dated: July 6, 2023,
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-14804 Filed 7-11-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on July 12, 2023.
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