Certain Standard Steel Fasteners From the People's Republic of China: Initiation of Countervailing Duty Investigation, 54543-54547 [E9-25197]
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Federal Register / Vol. 74, No. 203 / Thursday, October 22, 2009 / Notices
by the investigations have a permanentlyattached washer face. Standard nuts are
covered by the investigations if they are
suitable for attachment to bolts and/or cap
screws covered by the investigations.
Standard bolts, standard cap screws, and
standard nuts are covered by the
investigations whether imported alone,
attached to other subject and/or non-subject
merchandise (e.g., tension control
assemblies), or unattached and in
combination with other subject merchandise
and/or non-subject merchandise.
Standard nuts, standard bolts, and
standard cap screws meet the requirements of
one or more nationally recognized consensus
industry standard specifications (including
but not limited to those referenced below).
Subject merchandise is typically certified to
the specifications published by one or more
consensus standards organizations such as
the following: the American Society for
Testing and Materials (ASTM), the Society of
Automotive Engineers (SAE), the
International Organization for
Standardization (ISO), and the Industrial
Fasteners Institute. Common specifications to
which subject merchandise is certified
include, but are not limited to: ASTM A194,
ASTM A307, ASTM A325, ASTM A325M,
ASTM A354, ASTM A449, ASTM A490,
ASTM A563, ASTM F568M, ASTM F1852,
ASTM F2280, SAE J429, SAE J1199, ISO
898–1, ISO 898–2, ISO 4759–1, ISO 8992,
and comparable foreign and domestic
specifications (including, but not limited to,
metric versions of specifications such as
those listed above).
Excluded from the scope of the
investigations are bolts, cap screws, and nuts
produced for an original equipment
manufacturer (OEM) part number specific to
any ‘‘automobile’’ as defined in 49 U.S.C.
Section 32901(a)(3), any ‘‘work truck’’ as
defined in 49 U.S.C. Section 32901(a)(19), or
any ‘‘medium-duty passenger vehicle’’ as
defined in 40 CFR Section 86.1803–01
(2009).
Also excluded from the scope of the
investigations are bolts, cap screws, and nuts
produced for an OEM part number specific
to any ‘‘aircraft’’ as defined in 14 CFR
Section 1.1 (2009).
Also excluded from the scope of the
investigations are track bolts. Track bolts
have a circular, rounded head and a shank
which, immediately beneath the head,
possesses an oval or elliptical shape, such
that the non-round shape would restrict
rotational movement of the bolt. Also
excluded from the scope of the investigations
are carriage bolts. Carriage bolts have a
circular, rounded head and a shank which,
immediately beneath the head, possesses a
non-round shape (e.g., square, finned), such
that the non-round shape would restrict
rotational movement of the bolt. Also
excluded from the scope of the investigations
are socket screws. Socket screws have a head
with a recessed cavity into which a shaped
bit may be inserted to turn and drive the
fastener.
Unless explicitly excluded from the scope
of the investigations, bolts, cap screws, and
nuts meeting the description of subject
merchandise are covered by the
investigations.
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Merchandise covered by the investigations
is classified in the Harmonized Tariff
Schedule of the United States (HTSUS) under
subheadings: 7318.15.2030, 7318.15.2055,
7318.15.2065, 7318.15.8065, 7318.15.8085,
and 7318.16.0085. Although the HTSUS
subheadings are provided for convenience
and customs purposes, the written
description of the merchandise under the
investigations is dispositive.
[FR Doc. E9–25194 Filed 10–21–09; 8:45 am]
BILLING CODE 3510–DS–P
54543
material injury to, an industry in the
United States.
The Department finds that Petitioner
filed the Petition on behalf of the
domestic industry because it is an
interested party as defined in section
771(9)(C) of the Act, and Petitioner has
demonstrated sufficient industry
support with respect to the
countervailing duty (‘‘CVD’’)
investigation (see ‘‘Determination of
Industry Support for the Petition’’
section below).
DEPARTMENT OF COMMERCE
Period of Investigation
International Trade Administration
The period of investigation (‘‘POI’’) is
January 1, 2008, through December 31,
2008.
[C–570–961]
Certain Standard Steel Fasteners From
the People’s Republic of China:
Initiation of Countervailing Duty
Investigation
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: October 22, 2009.
FOR FURTHER INFORMATION CONTACT:
Yasmin Nair and Joseph Shuler, AD/
CVD Operations, Office 1, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–3813 and (202)
482–1293, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On September 23, 2009, the
Department of Commerce
(‘‘Department’’) received a
countervailing duty petition concerning
imports of certain standard steel
fasteners (‘‘fasteners’’) from the People’s
Republic of China (‘‘PRC’’). The petition
was filed in proper form by Nucor
Fastener (‘‘Petitioner’’), a domestic
producer of fasteners.1 In response to
the Department’s requests, Petitioner
provided timely information
supplementing the Petition on October
6, 7, 8, and 9, 2009.
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(‘‘the Act’’), Petitioner alleges that
manufacturers, producers, or exporters
of standard steel fasteners in the PRC
receive countervailable subsidies within
the meaning of sections 701 and 771(5)
of the Act, and that such imports are
materially injuring, or threatening
1 See Petition for the Imposition of Antidumping
and Countervailing Duties Pursuant to Sections 701
and 731 of the Tariff Act of 1930, as Amended:
Certain Standard Steel Fasteners from the People’s
Republic of China, dated September 23, 2009
(‘‘Petition’’).
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Scope of Investigation
The products covered by the
investigation are fasteners from the PRC
and Taiwan. For a full description of the
scope of the investigation, please see
‘‘Scope of Investigation,’’ in Appendix I
of this notice. The Department, after
consulting with Petitioner, made minor
changes to the scope language submitted
by Petitioner in the Third Supplement
to the AD/CVD Petitions, dated October
9, 2009, at Attachment 1. See
Memorandum to the file from Steve
Bezirganian, Analyst, entitled ‘‘Certain
Standard Steel Fasteners from the
People’s Republic of China (A–570–960
and C–570–961) and Taiwan (A–583–
845): Revisions to Petitioner’s Proposed
October 9, 2009, Scope Language,’’
dated October 13, 2009.
Comments on Scope of Investigation
During our review of the Petition, we
discussed the scope with Petitioner to
ensure that it is an accurate reflection of
the products for which the domestic
industry is seeking relief. Moreover, as
discussed in the preamble to the
Department’s regulations (Antidumping
Duties; Countervailing Duties; Final
Rule, 62 FR 27296, 27323 (May 19,
1997)), we are setting aside a period for
interested parties to raise issues
regarding product coverage. The
Department encourages all interested
parties to submit such comments by
November 2, 2009, twenty calendar days
from the signature date of this notice.
Comments should be addressed to
Import Administration’s APO/Dockets
Unit, Room 1870, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230.
The period for scope consultations is
intended to provide the Department
with ample opportunity to consider all
comments and to consult with parties
prior to the issuance of the preliminary
determination.
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Federal Register / Vol. 74, No. 203 / Thursday, October 22, 2009 / Notices
Consultations
Pursuant to section 702(b)(4)(A)(ii) of
the Act, on September 23, 2009, the
Department invited representatives of
the Government of the PRC for
consultations with respect to the CVD
petition. On October 13, 2009, the GOC
requested that the Department extend
the deadline for consultations. The
Department responded that it could not
extend this deadline for pre-initiation
consultations, but would consult with
the GOC in the course of this proceeding
if initiated, as required by Article 13.2
of the Agreement on Subsidies and
Countervailing Measures.
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Determination of Industry Support for
the Petition
Section 702(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 702(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 702(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
the Department shall: (i) poll the
industry or rely on other information in
order to determine if there is support for
the petition, as required by
subparagraph (A), or (ii) determine
industry support using a statistically
valid sampling method.
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs the Department to look to
producers and workers who produce the
domestic like product. The U.S.
International Trade Commission
(‘‘ITC’’), which is responsible for
determining whether ‘‘the domestic
industry’’ has been injured, must also
determine what constitutes a domestic
like product in order to define the
industry. While both the Department
and the ITC must apply the same
statutory definition regarding the
domestic like product (section 771(10)
of the Act), they do so for different
purposes and pursuant to a separate and
distinct authority. In addition, the
Department’s determination is subject to
limitations of time and information.
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Although this may result in different
definitions of the like product, such
differences do not render the decision of
either agency contrary to law. See
USEC, Inc. v. United States, 132 F.
Supp. 2d 1, 8 (Ct. Int’l Trade 2001),
citing Algoma Steel Corp. Ltd. v. United
States, 688 F. Supp. 639, 644 (Ct. Int’l
Trade 1988), aff’d 865 F.2d 240 (Fed.
Cir. 1989), cert. denied 492 U.S. 919
(1989).
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, Petitioner does not offer a
definition of domestic like product
distinct from the scope of the
investigation. Based on our analysis of
the information submitted on the
record, we have determined that
fasteners constitute a single domestic
like product and we have analyzed
industry support in terms of that
domestic like product. For a discussion
of the domestic like product analysis in
this case, see ‘‘Countervailing Duty
Investigation Initiation Checklist:
Certain Standard Steel Fasteners from
the People’s Republic of China’’
(‘‘Initiation Checklist’’), at Attachment
II, Analysis of Industry Support for the
Petitions Covering Certain Standard
Steel Fasteners from the People’s
Republic of China, on file in the Central
Records Unit (‘‘CRU’’), Room 1117 of
the main Department of Commerce
building.
In determining whether Petitioner has
standing (i.e., the domestic workers and
producers supporting the Petition
account for (1) at least 25 percent of the
total production of the domestic like
product and (2) more than 50 percent of
the production of the domestic like
product produced by that portion of the
industry expressing support for, or
opposition to, the Petition), we
considered the industry support data
contained in the Petition with reference
to the domestic like product. To
establish industry support, Petitioner
provided its production of the domestic
like product for the year 2008, and
compared this to the estimated total
production of the domestic like product
for the entire domestic industry. See
Volume I of the Petition, at 2–3, Exhibit
I–10, and Supplement to the AD/CVD
Petitions, dated October 6, 2009, at 17–
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18, Exhibit I–Supp-6, and Industry
Support Supplement, dated October 8,
2009 (‘‘Industry Support Supplement’’),
at Attachment 1. To estimate 2008
production of the domestic like product,
Petitioner used its own data and
industry specific knowledge. See
Industry Support Supplement, at
Attachment 1. Petitioner calculated total
domestic production based on its own
production plus estimates regarding the
other producers of the domestic like
product in the United States. Id. We
have relied upon data Petitioner
provided for purposes of measuring
industry support. For further
discussion, see Initiation Checklist at
Attachment II.
The Department’s review of the data
provided in the Petition, supplemental
submissions, and other information
readily available to the Department
indicates that Petitioner has established
industry support. First, the Petition
establishes support from domestic
producers (or workers) accounting for
more than 50 percent of the total
production of the domestic like
products and, as such, the Department
is not required to take further action in
order to evaluate industry support (e.g.,
polling). See section 702(c)(4)(D) of the
Act and Initiation Checklist at
Attachment II. Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
products. See Initiation Checklist at
Attachment II. Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petition
account for more than 50 percent of the
production of the domestic like
products produced by that portion of
the industry expressing support for, or
opposition to, the Petitions.
Accordingly, the Department
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 702(b)(1) of the
Act. See Initiation Checklist at
Attachment II.
The Department finds that Petitioner
filed the Petition on behalf of the
domestic industry because it is an
interested party as defined in section
771(9)(C) of the Act and has
demonstrated sufficient industry
support with respect to the CVD
investigation that it is requesting the
Department initiate. See Initiation
Checklist at Attachment II.
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Injury Test
Because the PRC is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Act,
section 701(a)(2) of the Act applies to
this investigation. Accordingly, the ITC
must determine whether imports of
subject merchandise from the PRC
materially injure, or threaten material
injury to, a U.S. industry.
Allegations and Evidence of Material
Injury and Causation
Petitioner alleges that imports of
standard steel fasteners from the PRC
are benefitting from countervailable
subsidies and that such imports are
causing, or threaten to cause, material
injury to the domestic industry
producing certain standard steel
fasteners. In addition, Petitioner alleges
that subsidized imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.
Petitioner contends that the industry’s
injured condition is illustrated by
reduced market share, underselling and
price depressing and suppressing
effects, increased import penetration,
declining sales, reduced production,
reduced capacity, increased raw
material cost, abandoned product lines,
reduced shipments, reduced wages and
hours worked, and an overall decline in
financial performance. We have
assessed the allegations and supporting
evidence regarding material injury,
threat of material injury, and causation,
and we have determined that these
allegations are properly supported by
adequate evidence and meet the
statutory requirements for initiation. See
Initiation Checklist at Attachment III
(Analysis of Injury Allegations and
Evidence of Material Injury and
Causation).
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Initiation of Countervailing Duty
Investigation
Section 702(b) of the Act requires the
Department to initiate a CVD proceeding
whenever an interested party files a
petition on behalf of an industry that:
(1) Alleges the elements necessary for an
imposition of a duty under section
701(a) of the Act; and (2) is
accompanied by information reasonably
available to the petitioner(s) supporting
the allegations.
The Department has examined the
CVD petition on standard steel fasteners
from the PRC and finds that it complies
with the requirements of section 702(b)
of the Act. Therefore, in accordance
with section 702(b) of the Act, we are
initiating a CVD investigation to
determine whether manufacturers,
producers, or exporters of standard steel
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fasteners in the PRC receive
countervailable subsidies. For a
discussion of evidence supporting our
initiation determination, see Initiation
Checklist.
We are including in our investigation
the following programs alleged in the
Petition to have provided
countervailable subsidies to producers
and exporters of the subject
merchandise in the PRC:
A. Preferential Loans and Interest Rates
1. Policy Loans to Chinese Fasteners
Producers
2. Export Loans
3. Preferential Lending to Fasteners
Producers and Exporters Classified
as ‘‘Honorable Enterprises’’
4. Preferential Loans as Part of the
Northeast Revitalization Program
B. Government Provision of Goods or
Services for Less Than Adequate
Remuneration (‘‘LTAR’’)
1. Wire Rod for LTAR
2. Hot-Rolled Steel for LTAR
3. Zinc for LTAR
4. Land-Use Rights for LTAR
C. Income and Other Direct Taxes
1. Income Tax Credits for
Domestically Owned Companies
Purchasing Domestically Produced
Equipment
2. Preferential Income Tax Policy for
Enterprises in the Northeast Region
3. Forgiveness of Tax Arrears for
Enterprises in the Old Industrial
Bases of Northeast China
D. Indirect Tax and Tariff Exemption
Programs
1. Export Incentive Payments
Characterized as ‘‘VAT Rebates’’
2. Import Tariff and VAT Exemptions
for Foreign Invested Enterprises
(‘‘FIEs’’) and Certain Domestic
Enterprises Using Imported
Equipment in Encouraged
Industries
E. Preferential Income Tax Subsidies for
FIEs
1. ‘‘Two Free, Three Half’’ Tax
Exemptions for FIEs
2. Income Tax Exemption Program for
Export-Oriented FIEs
3. Local Income Tax Exemption and
Reduction Programs for
‘‘Productive’’ FIEs
4. Preferential Tax Programs for FIEs
Recognized as High or New
Technology Enterprises
5. Income Tax Subsidies for FIEs
Based on Geographic Location
6. VAT Refunds for FIEs Purchasing
Domestically Produced Equipment
F. Direct Grants
1. ‘‘Five Points, One Line’’ Program
2. Export Interest Subsidies
3. The State Key Technology
Renovation Project Fund
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54545
4. Export Assistance Grants in
Zhejiang Province
5. Subsidies for Development of
Famous Export Brands and China
World Top Brands
6. Sub-Central Government Programs
to Promote Famous Export Brands
and China World Top Brands
7. Programs to Rebate Antidumping
Legal Fees in Zhejiang and
Shenzhen Province
For further information explaining why
the Department is investigating these
programs, see Initiation Checklist.
We are not including in our
investigation the following programs
alleged to benefit producers and
exporters of subject merchandise in the
PRC:
1. Preferential Loans for Key Projects
and Technologies
In its Petition, Petitioner asserted that
some fasteners producers located in
Northeastern China may benefit from
preferential loans given to their steel
suppliers. However, Petitioner did not
file an adequate upstream subsidy
allegation, nor did Petitioner allege that
fasteners producers would be eligible to
receive preferential loans under this
program directly. Furthermore, in its
October 7, 2009 supplemental response,
Petitioner allows that it is unlikely that
fasteners producers benefited from this
program. Accordingly, we do not plan
on investigating this program.
2. Electricity for LTAR
Petitioner alleges that the Government
of the PRC (‘‘GOC’’) is providing a
financial benefit of electricity for less
than adequate remuneration to steel
producers, and that fasteners producers
receive an associated downstream
benefit within the meaning of Section
771(5)(D)(iii) of the Act. The financial
contribution as alleged by Petitioner is
an upstream subsidy. Petitioner has not
supported the allegation and,
consequently, we do not plan to
investigate this program.
3. Fixed Assets Investment Orientation
Regulatory Tax
Petitioner claims that producers of
fasteners in the PRC are exempted from
or receive preferential income tax rates
on investments in fixed assets.
Petitioner has not provided information
to demonstrate that fasteners producers
would be covered by the relevant
legislation. For example, the legislation
relating to this program includes
specific aspects of the iron and steel
production process that are eligible for
tax benefits, but it does not include any
processes related to production of
fasteners. Accordingly, we do not plan
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Federal Register / Vol. 74, No. 203 / Thursday, October 22, 2009 / Notices
on investigating this program. However,
if one of the mandatory respondents
chosen in this investigation is part of a
vertically integrated steel company, or
cross-owned with a primary steel
producer, Petitioner may re-allege this
program under a timely filed new
subsidy allegation, at which time the
Department will reconsider the
information provided. Accordingly, we
do not plan on investigating this
program.
4. Tax Reduction for Enterprises Making
Little Profit
According to the PRC’s World Trade
Organization subsidies notification,
enterprises with annual taxable incomes
between Renminbi (‘‘RMB’’) 30,000 and
100,000 are eligible for a three percent
reduction in their annual income tax
rate. Petitioner has not established with
reasonably available information that
‘‘enterprises making little profit’’ are a
de jure specific group because Petitioner
has provided no explanation of why
companies with access to this program
comprise an enterprise or industry, or
group of enterprises or industries within
the meaning of Section 771(5A) of the
Act. Consequently, we do not plan on
investigating this program.
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5. Income Tax Exemption for
Investment in Domestic ‘‘Technological
Renovation’’
Petitioner alleges that, pursuant to the
Technological Renovation of Domestic
Equipment Corporate Income Tax
Exemption Notice, the State Tax
Administration provides a tax credit to
enterprises for a certain portion of
investment in any domestically
produced equipment that relates to
technology updates. However, in the
final determination of certain kitchen
appliance shelving and racks from the
PRC, the Department investigated this
program and found that it does not
exist.2 Consequently, we do not plan on
investigating this program.
6. China’s Enforced Undervaluation of
Its Currency
Petitioner alleges that the GOCmaintained exchange rate effectively
prevents the appreciation of the Chinese
currency (RMB) against the U.S. dollar.
Therefore, when producers/exporters in
the PRC sell their dollars at official
foreign exchange banks, as required by
law, the producers receive more RMB
than they otherwise would if the value
of the RMB were set by market
2 See Certain Kitchen Shelving and Racks from
the People’s Republic of China: Final Affirmative
Countervailing Duty Determination, 74 FR 37012
(July 27, 2009), and accompanying Issues and
Decision Memorandum at 18.
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mechanisms. Petitioner describes the
benefit conferred as the excess of RMB
received, over what would have been
received at a market rate (‘‘excess
RMB’’) and alleges specificity within the
meaning of Section 771(5A)(B) of the
Act by virtue of the fact that ‘‘* * *
there is a direct and positive correlation
between the export activity/export
earnings and the amount of subsidy
received.’’ Section 771(5A)(B) of the Act
describes an export subsidy as ‘‘* * * a
subsidy that is, in law or fact,
contingent upon export performance,
alone or as 1 of 2 or more conditions.’’
Petitioner has failed to sufficiently
allege that the receipt of the excess RMB
is contingent on export or export
performance because receipt of the
excess RMB is independent of the type
of transaction or commercial activity for
which the dollars are converted or of the
particular company or individuals
converting the dollars. Therefore, we do
not plan on investigating this program
because Petitioner has failed to properly
allege the specificity element.
Respondent Selection
For this investigation, the Department
expects to select respondents based on
U.S. Customs and Border Protection
(‘‘CBP’’) data for U.S. imports during the
POI. We intend to release the CBP data
under Administrative Protective Order
(‘‘APO’’) to all parties with access to
information protected by APO within
five days of the announcement of the
initiation of this investigation.
Interested parties may submit comments
regarding the CBP data and respondent
selection within seven calendar days of
publication of this notice. We intend to
make our decision regarding respondent
selection within 20 days of publication
of this Federal Register notice.
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305(b).
Instructions for filing such applications
may be found on the Department’s Web
site at https://ia.ita.doc.gov/apo.
Distribution of Copies of the Petition
In accordance with section
702(b)(4)(A)(i) of the Act, a copy of the
public version of the Petition has been
provided to the Government of the PRC.
As soon as and to the extent practicable,
we will attempt to provide a copy of the
public version of the Petition to each
exporter named in the Petition,
consistent with section 351.203(c)(2) of
the Department’s regulations.
ITC Notification
We have notified the ITC of our
initiation, as required by section 702(d)
of the Act.
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Preliminary Determination by the ITC
The ITC will preliminarily determine,
within 25 days after the date on which
it receives notice of the initiation,
whether there is a reasonable indication
that imports of subsidized standard steel
fasteners from the PRC are causing
material injury, or threatening to cause
material injury, to a U.S. industry. See
section 703(a)(2) of the Act. A negative
ITC determination will result in the
investigation being terminated;
otherwise, the investigation will
proceed according to statutory and
regulatory time limits.
This notice is issued and published
pursuant to section 777(i) of the Act.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import
Administration.
Appendix I—Scope of Investigation
The merchandise covered by the
investigation consists of certain standard
nuts, standard bolts, and standard cap
screws, of steel other than stainless steel.
Standard nuts, standard bolts, and standard
cap screws covered by the investigation may
have a variety of finishes, including but not
limited to coating in paint, phosphates, and
zinc. Standard bolts and standard cap screws
covered by the investigation have a shank or
thread with an actual and/or nominal
diameter between 6 millimeters and 32
millimeters (inclusive). Standard bolts and
standard cap screws covered by the
investigation also possess a circular or
hexagonal head, the surface of which may be
flat or rounded (also known as ‘‘domeshaped’’ or ‘‘button-headed’’). Standard bolts
covered by the investigation may have an
attached washer face or the equivalent (e.g.,
a flanged head or chamfered corners on the
underside of a fastener with a hexagonalshaped head). Standard cap screws covered
by the investigation have a permanentlyattached washer face. Standard nuts are
covered by the investigation if they are
suitable for attachment to bolts and/or cap
screws covered by the investigation.
Standard bolts, standard cap screws, and
standard nuts are covered by the
investigation whether imported alone,
attached to other subject and/or non-subject
merchandise (e.g., tension control
assemblies), or unattached and in
combination with other subject merchandise
and/or non-subject merchandise.
Standard nuts, standard bolts, and
standard cap screws meet the requirements of
one or more nationally recognized consensus
industry standard specifications (including
but not limited to those referenced below).
Subject merchandise is typically certified to
the specifications published by one or more
consensus standards organizations such as
the following: the American Society for
Testing and Materials (ASTM), the Society of
Automotive Engineers (SAE), the
International Organization for
Standardization (ISO), and the Industrial
Fasteners Institute. Common specifications to
which subject merchandise is certified
E:\FR\FM\22OCN1.SGM
22OCN1
Federal Register / Vol. 74, No. 203 / Thursday, October 22, 2009 / Notices
include, but are not limited to: ASTM A194,
ASTM A307, ASTM A325, ASTM A325M,
ASTM A354, ASTM A449, ASTM A490,
ASTM A563, ASTM F568M, ASTM F1852,
ASTM F2280, SAE J429, SAE J1199, ISO
898–1, ISO 898–2, ISO 4759–1, ISO 8992,
and comparable foreign and domestic
specifications (including, but not limited to,
metric versions of specifications such as
those listed above).
Excluded from the scope of the
investigation are bolts, cap screws, and nuts
produced for an original equipment
manufacturer (OEM) part number specific to
any ‘‘automobile’’ as defined in 49 U.S.C.
Section 32901(a)(3), any ‘‘work truck’’ as
defined in 49 U.S.C. Section 32901(a) (19), or
any ‘‘medium-duty passenger vehicle’’ as
defined in 40 C.F.R. Section 86.1803–01
(2009).
Also excluded from the scope of the
investigation are bolts, cap screws, and nuts
produced for an OEM part number specific
to any ‘‘aircraft’’ as defined in 14 CFR 1.1
(2009).
Also excluded from the scope of the
investigation are track bolts. Track bolts have
a circular, rounded head and a shank which,
immediately beneath the head, possesses an
oval or elliptical shape, such that the nonround shape would restrict rotational
movement of the bolt. Also excluded from
the scope of the investigation are carriage
bolts. Carriage bolts have a circular, rounded
head and a shank which, immediately
beneath the head, possesses a non-round
shape (e.g., square, finned), such that the
non-round shape would restrict rotational
movement of the bolt. Also excluded from
the scope of the investigation are socket
screws. Socket screws have a head with a
recessed cavity into which a shaped bit may
be inserted to turn and drive the fastener.
Unless explicitly excluded from the scope
of the investigation, bolts, cap screws, and
nuts meeting the description of subject
merchandise are covered by the
investigation.
Merchandise covered by the investigation
is classified in the Harmonized Tariff
Schedule of the United States (HTSUS) under
subheadings: 7318.15.2030, 7318.15.2055,
7318.15.2065, 7318.15.8065, 7318.15.8085,
and 7318.16.0085. Although the HTSUS
subheadings are provided for convenience
and customs purposes, the written
description of the merchandise under the
investigation is dispositive.
[FR Doc. E9–25197 Filed 10–21–09; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
dcolon on DSK2BSOYB1PROD with NOTICES
[C–533–849]
Commodity Matchbooks From India:
Final Affirmative Countervailing Duty
Determination
AGENCY: Import Administration,
International Trade Administration,
Department of Commerce
VerDate Nov<24>2008
15:13 Oct 21, 2009
Jkt 220001
SUMMARY: The Department of Commerce
(the Department) determines that
countervailable subsidies are being
provided to producers and exporters of
commodity matchbooks from India. For
information on the estimated subsidy
rates, see the ‘‘Suspension of
Liquidation’’ section of this notice.
EFFECTIVE DATE: October 22, 2009.
FOR FURTHER INFORMATION CONTACT:
Sean Carey or Dana Mermelstein, AD/
CVD Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW, Washington, DC 20230;
telephone: (202) 482–3964 and (202)
482–1391, respectively.
SUPPLEMENTARY INFORMATION:
Period of Investigation
The period for which we are
measuring subsidies, i.e., the period of
investigation (POI), is January 1, 2007
through December 31, 2007.
Case History
The following events have occurred
since the publication of the
Department’s preliminary determination
in the Federal Register. See Commodity
Matchbooks from India: Preliminary
Affirmative Countervailing Duty
Determination and Alignment of Final
Countervailing Duty Determination with
Final Antidumping Duty Determination,
74 FR 15444 (April 6, 2009). The
Department conducted a verification of
the Government of India’s (GOI)
questionnaire responses regarding the
administration of the Export Promotion
Capital Goods Scheme (EPCGS) on May
4, 2009, in New Delhi, India. See
Memorandum to Dana Mermelstein,
Program Manager for AD/CVD
Operations, Office 6, from Sean Carey,
Case Analyst, AD/CVD Operations,
Office 6, ‘‘Verification of the
Questionnaire Responses Submitted by
the Government of India,’’ dated August
7, 2009. On May 5 through 8, 2009, the
Department verified the information
submitted by the sole respondent in this
investigation, Triveni Safety Matches
Pvt. Ltd. (Triveni), at its corporate
headquarters in Mumbai, India. See
Memorandum to Dana Mermelstein,
Program Manager for AD/CVD
Operations, Office 6, from Sean Carey,
Case Analyst, AD/CVD Operations,
Office 6, ‘‘Verification of the
Questionnaire Responses Submitted by
Triveni Safety Matches Pvt. Ltd.,’’ dated
August 7, 2009. The Department
released its briefing schedule on August
7, 2009, notifying all parties of the
deadlines for submission of case and
rebuttal briefs. No case briefs were filed
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
54547
by any of the interested parties. The
memoranda cited above are available at
the Department’s Central Records Unit
(Room 1117 in the HCHB Building)
(hereafter referred to as ‘‘CRU’’).
Scope of the Investigation
The scope of this investigation covers
commodity matchbooks, also known as
commodity book matches, paper
matches or booklet matches.1
Commodity matchbooks typically, but
do not necessarily, consist of twenty
match stems which are usually made
from paperboard or similar material
tipped with a match head composed of
any chemical formula. The match stems
may be stitched, stapled or otherwise
fastened into a matchbook cover of any
material, on which a striking strip
composed of any chemical formula has
been applied to assist in the ignition
process.
Commodity matchbooks included in
the scope of this investigation may or
may not contain printing. For example,
they may have no printing other than
the identification of the manufacturer or
importer. Commodity matchbooks may
also be printed with a generic message
such as ‘‘Thank You’’ or a generic image
such as the American Flag, with store
brands (e.g., Kroger, 7–Eleven, Shurfine
or Giant); product brands for national or
regional advertisers such as cigarettes or
alcoholic beverages; or with corporate
brands for national or regional
distributors (e.g., Penley Corp. or
Diamond Brands). They all enter retail
distribution channels. Regardless of the
materials used for the stems of the
matches and regardless of the way the
match stems are fastened to the
matchbook cover, all commodity
matchbooks are included in the scope of
this investigation. All matchbooks,
including commodity matchbooks,
typically comply with the United States
Consumer Product Safety Commission
(CPSC) Safety Standard for Matchbooks,
codified at 16 CFR § 1202.1 et seq.
The scope of this investigation
excludes promotional matchbooks, often
referred to as ‘‘not for resale,’’ or
‘‘specialty advertising’’ matchbooks, as
they do not enter into retail channels
and are sold to businesses that provide
hospitality, dining, drinking or
entertainment services to their
customers, and are given away by these
businesses as promotional items. Such
promotional matchbooks are
distinguished by the physical
1 Such commodity matchbooks are also referred
to as ‘‘for resale’’ because they always enter into
retail channels, meaning businesses that sell a
general variety of tangible merchandise, e.g.,
convenience stores, supermarkets, dollar stores,
drug stores and mass merchandisers.
E:\FR\FM\22OCN1.SGM
22OCN1
]]>Agencies
[Federal Register Volume 74, Number 203 (Thursday, October 22, 2009)]
[Notices]
[Pages 54543-54547]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-25197]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-961]
Certain Standard Steel Fasteners From the People's Republic of
China: Initiation of Countervailing Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: October 22, 2009.
FOR FURTHER INFORMATION CONTACT: Yasmin Nair and Joseph Shuler, AD/CVD
Operations, Office 1, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
3813 and (202) 482-1293, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On September 23, 2009, the Department of Commerce (``Department'')
received a countervailing duty petition concerning imports of certain
standard steel fasteners (``fasteners'') from the People's Republic of
China (``PRC''). The petition was filed in proper form by Nucor
Fastener (``Petitioner''), a domestic producer of fasteners.\1\ In
response to the Department's requests, Petitioner provided timely
information supplementing the Petition on October 6, 7, 8, and 9, 2009.
---------------------------------------------------------------------------
\1\ See Petition for the Imposition of Antidumping and
Countervailing Duties Pursuant to Sections 701 and 731 of the Tariff
Act of 1930, as Amended: Certain Standard Steel Fasteners from the
People's Republic of China, dated September 23, 2009 (``Petition'').
---------------------------------------------------------------------------
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (``the Act''), Petitioner alleges that manufacturers,
producers, or exporters of standard steel fasteners in the PRC receive
countervailable subsidies within the meaning of sections 701 and 771(5)
of the Act, and that such imports are materially injuring, or
threatening material injury to, an industry in the United States.
The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act, and Petitioner has demonstrated
sufficient industry support with respect to the countervailing duty
(``CVD'') investigation (see ``Determination of Industry Support for
the Petition'' section below).
Period of Investigation
The period of investigation (``POI'') is January 1, 2008, through
December 31, 2008.
Scope of Investigation
The products covered by the investigation are fasteners from the
PRC and Taiwan. For a full description of the scope of the
investigation, please see ``Scope of Investigation,'' in Appendix I of
this notice. The Department, after consulting with Petitioner, made
minor changes to the scope language submitted by Petitioner in the
Third Supplement to the AD/CVD Petitions, dated October 9, 2009, at
Attachment 1. See Memorandum to the file from Steve Bezirganian,
Analyst, entitled ``Certain Standard Steel Fasteners from the People's
Republic of China (A-570-960 and C-570-961) and Taiwan (A-583-845):
Revisions to Petitioner's Proposed October 9, 2009, Scope Language,''
dated October 13, 2009.
Comments on Scope of Investigation
During our review of the Petition, we discussed the scope with
Petitioner to ensure that it is an accurate reflection of the products
for which the domestic industry is seeking relief. Moreover, as
discussed in the preamble to the Department's regulations (Antidumping
Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19,
1997)), we are setting aside a period for interested parties to raise
issues regarding product coverage. The Department encourages all
interested parties to submit such comments by November 2, 2009, twenty
calendar days from the signature date of this notice. Comments should
be addressed to Import Administration's APO/Dockets Unit, Room 1870,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230. The period for scope consultations is intended to
provide the Department with ample opportunity to consider all comments
and to consult with parties prior to the issuance of the preliminary
determination.
[[Page 54544]]
Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, on September 23,
2009, the Department invited representatives of the Government of the
PRC for consultations with respect to the CVD petition. On October 13,
2009, the GOC requested that the Department extend the deadline for
consultations. The Department responded that it could not extend this
deadline for pre-initiation consultations, but would consult with the
GOC in the course of this proceeding if initiated, as required by
Article 13.2 of the Agreement on Subsidies and Countervailing Measures.
Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A), or (ii) determine industry support using a
statistically valid sampling method.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission
(``ITC''), which is responsible for determining whether ``the domestic
industry'' has been injured, must also determine what constitutes a
domestic like product in order to define the industry. While both the
Department and the ITC must apply the same statutory definition
regarding the domestic like product (section 771(10) of the Act), they
do so for different purposes and pursuant to a separate and distinct
authority. In addition, the Department's determination is subject to
limitations of time and information. Although this may result in
different definitions of the like product, such differences do not
render the decision of either agency contrary to law. See USEC, Inc. v.
United States, 132 F. Supp. 2d 1, 8 (Ct. Int'l Trade 2001), citing
Algoma Steel Corp. Ltd. v. United States, 688 F. Supp. 639, 644 (Ct.
Int'l Trade 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989), cert. denied
492 U.S. 919 (1989).
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioner does not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we have determined that fasteners constitute a single
domestic like product and we have analyzed industry support in terms of
that domestic like product. For a discussion of the domestic like
product analysis in this case, see ``Countervailing Duty Investigation
Initiation Checklist: Certain Standard Steel Fasteners from the
People's Republic of China'' (``Initiation Checklist''), at Attachment
II, Analysis of Industry Support for the Petitions Covering Certain
Standard Steel Fasteners from the People's Republic of China, on file
in the Central Records Unit (``CRU''), Room 1117 of the main Department
of Commerce building.
In determining whether Petitioner has standing (i.e., the domestic
workers and producers supporting the Petition account for (1) at least
25 percent of the total production of the domestic like product and (2)
more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the Petition), we considered the industry support data
contained in the Petition with reference to the domestic like product.
To establish industry support, Petitioner provided its production of
the domestic like product for the year 2008, and compared this to the
estimated total production of the domestic like product for the entire
domestic industry. See Volume I of the Petition, at 2-3, Exhibit I-10,
and Supplement to the AD/CVD Petitions, dated October 6, 2009, at 17-
18, Exhibit I-Supp-6, and Industry Support Supplement, dated October 8,
2009 (``Industry Support Supplement''), at Attachment 1. To estimate
2008 production of the domestic like product, Petitioner used its own
data and industry specific knowledge. See Industry Support Supplement,
at Attachment 1. Petitioner calculated total domestic production based
on its own production plus estimates regarding the other producers of
the domestic like product in the United States. Id. We have relied upon
data Petitioner provided for purposes of measuring industry support.
For further discussion, see Initiation Checklist at Attachment II.
The Department's review of the data provided in the Petition,
supplemental submissions, and other information readily available to
the Department indicates that Petitioner has established industry
support. First, the Petition establishes support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like products and, as such, the Department
is not required to take further action in order to evaluate industry
support (e.g., polling). See section 702(c)(4)(D) of the Act and
Initiation Checklist at Attachment II. Second, the domestic producers
(or workers) have met the statutory criteria for industry support under
section 702(c)(4)(A)(i) of the Act because the domestic producers (or
workers) who support the Petition account for at least 25 percent of
the total production of the domestic like products. See Initiation
Checklist at Attachment II. Finally, the domestic producers (or
workers) have met the statutory criteria for industry support under
section 702(c)(4)(A)(ii) of the Act because the domestic producers (or
workers) who support the Petition account for more than 50 percent of
the production of the domestic like products produced by that portion
of the industry expressing support for, or opposition to, the
Petitions. Accordingly, the Department determines that the Petition was
filed on behalf of the domestic industry within the meaning of section
702(b)(1) of the Act. See Initiation Checklist at Attachment II.
The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act and has demonstrated sufficient
industry support with respect to the CVD investigation that it is
requesting the Department initiate. See Initiation Checklist at
Attachment II.
[[Page 54545]]
Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of subject merchandise from the PRC materially injure,
or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
Petitioner alleges that imports of standard steel fasteners from
the PRC are benefitting from countervailable subsidies and that such
imports are causing, or threaten to cause, material injury to the
domestic industry producing certain standard steel fasteners. In
addition, Petitioner alleges that subsidized imports exceed the
negligibility threshold provided for under section 771(24)(A) of the
Act.
Petitioner contends that the industry's injured condition is
illustrated by reduced market share, underselling and price depressing
and suppressing effects, increased import penetration, declining sales,
reduced production, reduced capacity, increased raw material cost,
abandoned product lines, reduced shipments, reduced wages and hours
worked, and an overall decline in financial performance. We have
assessed the allegations and supporting evidence regarding material
injury, threat of material injury, and causation, and we have
determined that these allegations are properly supported by adequate
evidence and meet the statutory requirements for initiation. See
Initiation Checklist at Attachment III (Analysis of Injury Allegations
and Evidence of Material Injury and Causation).
Initiation of Countervailing Duty Investigation
Section 702(b) of the Act requires the Department to initiate a CVD
proceeding whenever an interested party files a petition on behalf of
an industry that: (1) Alleges the elements necessary for an imposition
of a duty under section 701(a) of the Act; and (2) is accompanied by
information reasonably available to the petitioner(s) supporting the
allegations.
The Department has examined the CVD petition on standard steel
fasteners from the PRC and finds that it complies with the requirements
of section 702(b) of the Act. Therefore, in accordance with section
702(b) of the Act, we are initiating a CVD investigation to determine
whether manufacturers, producers, or exporters of standard steel
fasteners in the PRC receive countervailable subsidies. For a
discussion of evidence supporting our initiation determination, see
Initiation Checklist.
We are including in our investigation the following programs
alleged in the Petition to have provided countervailable subsidies to
producers and exporters of the subject merchandise in the PRC:
A. Preferential Loans and Interest Rates
1. Policy Loans to Chinese Fasteners Producers
2. Export Loans
3. Preferential Lending to Fasteners Producers and Exporters
Classified as ``Honorable Enterprises''
4. Preferential Loans as Part of the Northeast Revitalization
Program
B. Government Provision of Goods or Services for Less Than Adequate
Remuneration (``LTAR'')
1. Wire Rod for LTAR
2. Hot-Rolled Steel for LTAR
3. Zinc for LTAR
4. Land-Use Rights for LTAR
C. Income and Other Direct Taxes
1. Income Tax Credits for Domestically Owned Companies Purchasing
Domestically Produced Equipment
2. Preferential Income Tax Policy for Enterprises in the Northeast
Region
3. Forgiveness of Tax Arrears for Enterprises in the Old Industrial
Bases of Northeast China
D. Indirect Tax and Tariff Exemption Programs
1. Export Incentive Payments Characterized as ``VAT Rebates''
2. Import Tariff and VAT Exemptions for Foreign Invested
Enterprises (``FIEs'') and Certain Domestic Enterprises Using Imported
Equipment in Encouraged Industries
E. Preferential Income Tax Subsidies for FIEs
1. ``Two Free, Three Half'' Tax Exemptions for FIEs
2. Income Tax Exemption Program for Export-Oriented FIEs
3. Local Income Tax Exemption and Reduction Programs for
``Productive'' FIEs
4. Preferential Tax Programs for FIEs Recognized as High or New
Technology Enterprises
5. Income Tax Subsidies for FIEs Based on Geographic Location
6. VAT Refunds for FIEs Purchasing Domestically Produced Equipment
F. Direct Grants
1. ``Five Points, One Line'' Program
2. Export Interest Subsidies
3. The State Key Technology Renovation Project Fund
4. Export Assistance Grants in Zhejiang Province
5. Subsidies for Development of Famous Export Brands and China
World Top Brands
6. Sub-Central Government Programs to Promote Famous Export Brands
and China World Top Brands
7. Programs to Rebate Antidumping Legal Fees in Zhejiang and
Shenzhen Province
For further information explaining why the Department is investigating
these programs, see Initiation Checklist.
We are not including in our investigation the following programs
alleged to benefit producers and exporters of subject merchandise in
the PRC:
1. Preferential Loans for Key Projects and Technologies
In its Petition, Petitioner asserted that some fasteners producers
located in Northeastern China may benefit from preferential loans given
to their steel suppliers. However, Petitioner did not file an adequate
upstream subsidy allegation, nor did Petitioner allege that fasteners
producers would be eligible to receive preferential loans under this
program directly. Furthermore, in its October 7, 2009 supplemental
response, Petitioner allows that it is unlikely that fasteners
producers benefited from this program. Accordingly, we do not plan on
investigating this program.
2. Electricity for LTAR
Petitioner alleges that the Government of the PRC (``GOC'') is
providing a financial benefit of electricity for less than adequate
remuneration to steel producers, and that fasteners producers receive
an associated downstream benefit within the meaning of Section
771(5)(D)(iii) of the Act. The financial contribution as alleged by
Petitioner is an upstream subsidy. Petitioner has not supported the
allegation and, consequently, we do not plan to investigate this
program.
3. Fixed Assets Investment Orientation Regulatory Tax
Petitioner claims that producers of fasteners in the PRC are
exempted from or receive preferential income tax rates on investments
in fixed assets. Petitioner has not provided information to demonstrate
that fasteners producers would be covered by the relevant legislation.
For example, the legislation relating to this program includes specific
aspects of the iron and steel production process that are eligible for
tax benefits, but it does not include any processes related to
production of fasteners. Accordingly, we do not plan
[[Page 54546]]
on investigating this program. However, if one of the mandatory
respondents chosen in this investigation is part of a vertically
integrated steel company, or cross-owned with a primary steel producer,
Petitioner may re-allege this program under a timely filed new subsidy
allegation, at which time the Department will reconsider the
information provided. Accordingly, we do not plan on investigating this
program.
4. Tax Reduction for Enterprises Making Little Profit
According to the PRC's World Trade Organization subsidies
notification, enterprises with annual taxable incomes between Renminbi
(``RMB'') 30,000 and 100,000 are eligible for a three percent reduction
in their annual income tax rate. Petitioner has not established with
reasonably available information that ``enterprises making little
profit'' are a de jure specific group because Petitioner has provided
no explanation of why companies with access to this program comprise an
enterprise or industry, or group of enterprises or industries within
the meaning of Section 771(5A) of the Act. Consequently, we do not plan
on investigating this program.
5. Income Tax Exemption for Investment in Domestic ``Technological
Renovation''
Petitioner alleges that, pursuant to the Technological Renovation
of Domestic Equipment Corporate Income Tax Exemption Notice, the State
Tax Administration provides a tax credit to enterprises for a certain
portion of investment in any domestically produced equipment that
relates to technology updates. However, in the final determination of
certain kitchen appliance shelving and racks from the PRC, the
Department investigated this program and found that it does not
exist.\2\ Consequently, we do not plan on investigating this program.
---------------------------------------------------------------------------
\2\ See Certain Kitchen Shelving and Racks from the People's
Republic of China: Final Affirmative Countervailing Duty
Determination, 74 FR 37012 (July 27, 2009), and accompanying Issues
and Decision Memorandum at 18.
---------------------------------------------------------------------------
6. China's Enforced Undervaluation of Its Currency
Petitioner alleges that the GOC-maintained exchange rate
effectively prevents the appreciation of the Chinese currency (RMB)
against the U.S. dollar. Therefore, when producers/exporters in the PRC
sell their dollars at official foreign exchange banks, as required by
law, the producers receive more RMB than they otherwise would if the
value of the RMB were set by market mechanisms. Petitioner describes
the benefit conferred as the excess of RMB received, over what would
have been received at a market rate (``excess RMB'') and alleges
specificity within the meaning of Section 771(5A)(B) of the Act by
virtue of the fact that ``* * * there is a direct and positive
correlation between the export activity/export earnings and the amount
of subsidy received.'' Section 771(5A)(B) of the Act describes an
export subsidy as ``* * * a subsidy that is, in law or fact, contingent
upon export performance, alone or as 1 of 2 or more conditions.''
Petitioner has failed to sufficiently allege that the receipt of the
excess RMB is contingent on export or export performance because
receipt of the excess RMB is independent of the type of transaction or
commercial activity for which the dollars are converted or of the
particular company or individuals converting the dollars. Therefore, we
do not plan on investigating this program because Petitioner has failed
to properly allege the specificity element.
Respondent Selection
For this investigation, the Department expects to select
respondents based on U.S. Customs and Border Protection (``CBP'') data
for U.S. imports during the POI. We intend to release the CBP data
under Administrative Protective Order (``APO'') to all parties with
access to information protected by APO within five days of the
announcement of the initiation of this investigation. Interested
parties may submit comments regarding the CBP data and respondent
selection within seven calendar days of publication of this notice. We
intend to make our decision regarding respondent selection within 20
days of publication of this Federal Register notice.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on the Department's Web site at https://ia.ita.doc.gov/apo.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A)(i) of the Act, a copy of
the public version of the Petition has been provided to the Government
of the PRC. As soon as and to the extent practicable, we will attempt
to provide a copy of the public version of the Petition to each
exporter named in the Petition, consistent with section 351.203(c)(2)
of the Department's regulations.
ITC Notification
We have notified the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 25 days after the date
on which it receives notice of the initiation, whether there is a
reasonable indication that imports of subsidized standard steel
fasteners from the PRC are causing material injury, or threatening to
cause material injury, to a U.S. industry. See section 703(a)(2) of the
Act. A negative ITC determination will result in the investigation
being terminated; otherwise, the investigation will proceed according
to statutory and regulatory time limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.
Appendix I--Scope of Investigation
The merchandise covered by the investigation consists of certain
standard nuts, standard bolts, and standard cap screws, of steel
other than stainless steel. Standard nuts, standard bolts, and
standard cap screws covered by the investigation may have a variety
of finishes, including but not limited to coating in paint,
phosphates, and zinc. Standard bolts and standard cap screws covered
by the investigation have a shank or thread with an actual and/or
nominal diameter between 6 millimeters and 32 millimeters
(inclusive). Standard bolts and standard cap screws covered by the
investigation also possess a circular or hexagonal head, the surface
of which may be flat or rounded (also known as ``dome-shaped'' or
``button-headed''). Standard bolts covered by the investigation may
have an attached washer face or the equivalent (e.g., a flanged head
or chamfered corners on the underside of a fastener with a
hexagonal-shaped head). Standard cap screws covered by the
investigation have a permanently-attached washer face. Standard nuts
are covered by the investigation if they are suitable for attachment
to bolts and/or cap screws covered by the investigation.
Standard bolts, standard cap screws, and standard nuts are
covered by the investigation whether imported alone, attached to
other subject and/or non-subject merchandise (e.g., tension control
assemblies), or unattached and in combination with other subject
merchandise and/or non-subject merchandise.
Standard nuts, standard bolts, and standard cap screws meet the
requirements of one or more nationally recognized consensus industry
standard specifications (including but not limited to those
referenced below). Subject merchandise is typically certified to the
specifications published by one or more consensus standards
organizations such as the following: the American Society for
Testing and Materials (ASTM), the Society of Automotive Engineers
(SAE), the International Organization for Standardization (ISO), and
the Industrial Fasteners Institute. Common specifications to which
subject merchandise is certified
[[Page 54547]]
include, but are not limited to: ASTM A194, ASTM A307, ASTM A325,
ASTM A325M, ASTM A354, ASTM A449, ASTM A490, ASTM A563, ASTM F568M,
ASTM F1852, ASTM F2280, SAE J429, SAE J1199, ISO 898-1, ISO 898-2,
ISO 4759-1, ISO 8992, and comparable foreign and domestic
specifications (including, but not limited to, metric versions of
specifications such as those listed above).
Excluded from the scope of the investigation are bolts, cap
screws, and nuts produced for an original equipment manufacturer
(OEM) part number specific to any ``automobile'' as defined in 49
U.S.C. Section 32901(a)(3), any ``work truck'' as defined in 49
U.S.C. Section 32901(a) (19), or any ``medium-duty passenger
vehicle'' as defined in 40 C.F.R. Section 86.1803-01 (2009).
Also excluded from the scope of the investigation are bolts, cap
screws, and nuts produced for an OEM part number specific to any
``aircraft'' as defined in 14 CFR 1.1 (2009).
Also excluded from the scope of the investigation are track
bolts. Track bolts have a circular, rounded head and a shank which,
immediately beneath the head, possesses an oval or elliptical shape,
such that the non-round shape would restrict rotational movement of
the bolt. Also excluded from the scope of the investigation are
carriage bolts. Carriage bolts have a circular, rounded head and a
shank which, immediately beneath the head, possesses a non-round
shape (e.g., square, finned), such that the non-round shape would
restrict rotational movement of the bolt. Also excluded from the
scope of the investigation are socket screws. Socket screws have a
head with a recessed cavity into which a shaped bit may be inserted
to turn and drive the fastener.
Unless explicitly excluded from the scope of the investigation,
bolts, cap screws, and nuts meeting the description of subject
merchandise are covered by the investigation.
Merchandise covered by the investigation is classified in the
Harmonized Tariff Schedule of the United States (HTSUS) under
subheadings: 7318.15.2030, 7318.15.2055, 7318.15.2065, 7318.15.8065,
7318.15.8085, and 7318.16.0085. Although the HTSUS subheadings are
provided for convenience and customs purposes, the written
description of the merchandise under the investigation is
dispositive.
[FR Doc. E9-25197 Filed 10-21-09; 8:45 am]
BILLING CODE 3510-DS-P
