Certain Steel Grating from the People's Republic of China: Final Affirmative Countervailing Duty Determination, 32362-32366 [2010-13776]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Notices]
[Pages 32362-32366]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-13776]



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DEPARTMENT OF COMMERCE



International Trade Administration



[C-570-948]




Certain Steel Grating from the People's Republic of China: Final 

Affirmative Countervailing Duty Determination



AGENCY: Import Administration, International Trade Administration, 

Department of Commerce.

SUMMARY: The Department of Commerce (the Department) has determined 

that countervailable subsidies are being provided to producers and 

exporters of steel grating from the People's Republic of China (PRC). 

For information on the estimated countervailable subsidy rates, please 

see the ``Suspension of Liquidation'' section, below.



EFFECTIVE DATE: June 8, 2010.



FOR FURTHER INFORMATION CONTACT: Justin Neuman or Nicholas Czajkowski 

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-

0486, (202) 482-1395, respectively.



Petitioners



    Petitioners in this investigation are Alabama Metal Industries 

Corp. (AMICO) and Fisher & Ludlow (collectively, ``Petitioners'').



Period of Investigation



    The period for which we are measuring subsidies, i.e., the period 

of investigation (POI), is January 1, 2008 through December 31, 2008.



Case History



    The following events have occurred since the preliminary 

determination. See Certain Steel Grating from the People's Republic of 

China: Preliminary Affirmative Countervailing Duty Determination and 

Alignment of Final Countervailing Duty Determination with Final 

Antidumping Duty Determination, 74 FR 56796 (November 3, 2009) 

(Preliminary Determination).

    The Department issued several supplemental questionnaires to the 

Government of the People's Republic of China (GOC) and Ningbo Jiulong 

Machinery Manufacturing Co., Ltd. (Ningbo Jiulong). The Department 

received responses to questionnaires issued to the GOC in December 

2009, as well as in January and February 2010. The Department received 

responses to questionnaires issued to Ningbo Jiulong in December 2009, 

as well as in January, February, and March 2010. Public versions of the 

questionnaires and



[[Page 32363]]



responses, as well as the various memoranda cited below, are available 

in the Department's Central Records Unit (Room 1117 in the HCHB 

Building) (hereinafter referred to as the CRU).

    As explained in the Memorandum from the Deputy Assistant Secretary 

for Import Administration, the Department has exercised its discretion 

to toll deadlines for the duration of the closure of the Federal 

Government from February 5, through February 12, 2010. Thus, all 

deadlines in this segment of the proceeding have been extended by seven 

days. The revised deadline for this final CVD determination is now May 

28, 2010. See Memorandum to the Record from Ronald K. Lorentzen, Deputy 

Assistant Secretary for Import Administration, regarding ``Tolling of 

Administrative Deadlines As a Result of the Government Closure During 

the Recent Snowstorm'' (February 12, 2010).

    On February 24, 2010, Department officials met with Petitioners' 

counsel to discuss issues related to the upcoming verification of the 

GOC and Ningbo Jiulong. See Memorandum for the File from Nicholas 

Czajkowski, Case Analyst, AD/CVD Operations, Meeting with Counsel for 

Petitioners: Countervailing Duty Investigation on Certain Steel Grating 

from the People's Republic of China (February 26, 2010).

    On March 8, 2010, Petitioners placed on the record a detailed 

analysis of mill test certificates that were provided to the Department 

by Ningbo Jiulong. See Letter to Secretary Locke from Timothy C. 

Brightbill, Certain Steel Grating from the People's Republic of China: 

Comments on Mill Test Certificates (March 8, 2010).

    From March 8 through March 13, 2010, we conducted verification of 

the questionnaire responses submitted by the GOC and Ningbo Jiulong. We 

issued verification reports on April 14, 2010. See Memorandum to the 

File from Thomas Beline, Staff Attorney; Nicholas Czajkowski, 

International Trade Analyst; and Justin Neuman, International Trade 

Analyst, Verification of the Questionnaire Responses Submitted by the 

Government of China (April 14, 2010), and Memorandum to the File from 

Thomas Beline, Staff Attorney; Nicholas Czajkowski, International Trade 

Analyst; and Justin Neuman, International Trade Analyst, Verification 

of the Questionnaire Responses Submitted by Ningbo Jiulong Machinery 

Manufacturing Co., Ltd. and Ningbo Zhenhai Jiulong Electronic Equipment 

Factory (April 14, 2010) (Ningbo Jiulong Verification Report).

    On March 15, 2010, Ningbo Jiulong filed a copy of the minor 

corrections provided to the Department at verification. See Letter to 

Secretary Locke from Gregory S. Menegaz, Certain Steel Grating from the 

People's Republic of China - Minor Corrections - Ningbo Jiulong (March 

15, 2010).

    On March 23, 2010, we requested permission from Customs and Border 

Protection (CBP) to place on the record certain entry documents that it 

had provided for the record in the corresponding antidumping (AD) 

investigation. See Memorandum to Tom Futtner, Supervisory Import 

Compliance Analyst, Customs Unit, Import Administration from Nicholas 

Czajkowski, International Trade Analyst, Office 6, Countervailing Duty 

Investigation of Certain Steel Grating from the People's Republic of 

China: Request for Customs Documents (March 23, 2010). Those documents 

were placed on the record on April 6, 2010. See Memorandum to the File 

from Nicholas Czajkowski, Trade Analyst, Office 6, AD/CVD Operations, 

Countervailing Duty Investigation of Certain Steel Grating (CSG) from 

the People's Republic of China (PRC): CBP Entry Documents (April 6, 

2010).

    On March 23, 2010, we issued a letter establishing a deadline for 

parties to rebut factual information recently added to the record. See 

Letter to Ningbo Jiulong from Barbara E. Tillman, Director, AD/CVD 

Operations, Office 6, Countervailing Duty Investigation; Certain Steel 

Grating from the People's Republic of China (March 23, 2010).

    On March 23, 2010, Ningbo Jiulong filed clarifying and rebuttal 

comments related to Petitioners' March 8, 2010 analysis of mill test 

certificates provided by Ningbo Jiulong to the Department. See Letter 

to Secretary Locke from Ningbo Jiulong, Steel Grating from China - 

Ningbo Jiulong Machinery Manufacturing Co. Ltd. and Ningbo Zhenhai 

Jiulong Electronic Equipment Factory - Rebuttal to Petitioners' March 

8, 2010 Submission (March 24, 2010).

    On April 15, 2010, we issued our post-preliminary determination 

regarding the ``Provision of Electricity at Less than Adequate 

Remuneration.'' See Memorandum to Ronald K. Lorentzen, Deputy Assistant 

Secretary for Import Administration from John M. Andersen, Acting 

Deputy Assistant Secretary for AD/CVD Operations, Countervailing Duty 

Investigation of Certain Steel Grating from the People's Republic of 

China (PRC): Post-Preliminary Determination Regarding the Provision of 

Electricity for Less than Adequate Remuneration (April 15, 2010).

    On April 23, 2010, we received comments from Ningbo Jiulong 

regarding what it considers to be several significant errors in the 

Ningbo Jiulong Verification Report issued by the Department on April 

14, 2010, and urging the Department not to let those errors color its 

analysis for the purposes of the final determination.

    On April 26, 2010, we received case briefs from Petitioners, the 

GOC, Ningbo Jiulong, and Yantai Xinke Steel Structure Co., Ltd. (an 

exporter/producer of steel grating that was not selected as a mandatory 

respondent in this investigation). On April 28, the Department issued a 

letter rejecting Petitioners' brief because it contained new factual 

information. See Letter to AMICO and Fisher & Ludlow from Barbara E. 

Tillman, Director, AD/CVD Operations, Office 6, Import Administration, 

Rejection of New Factual Information Submitted in Case Brief Dated 

April 26, 2010. Petitioners resubmitted their brief on April 29, 2010. 

Rebuttal briefs were submitted by Petitioners, the GOC, and Ningbo 

Jiulong on May 3, 2010.

    On May 4, 2010, Ningbo Jiulong withdrew its request for a hearing. 

On May 6, 2010, Department officials met with representatives of Ningbo 

Jiulong regarding issues in the briefs submitted by their client and by 

Petitioners. See Memorandum for the File from Justin M. Neuman, 

International Trade Analyst, AD/CVD Operations, Office 6, Ex-Parte 

Meeting with Representatives of Ningbo Jiulong Machinery Manufacturing 

Co., Ltd. (May 10, 2010). On May 10, 2010, Department officials met 

with Petitioners' counsel to discuss issues related to the briefs. See 

Memorandum for the File from Justin M. Neuman, International Trade 

Analyst, AD/CVD Operations, Office 6, Countervailing Duty Investigation 

of Certain Steel Grating from the People's Republic of China: Ex-Parte 

Meeting with Representatives of Alabama Metal Industries, Fisher and 

Ludlow (May 19, 2010).



Scope of the Investigation



    The products covered by this investigation are certain steel 

grating, consisting of two or more pieces of steel, including load-

bearing pieces and cross pieces, joined by any assembly process, 

regardless of: (1) size or shape; (2) method of manufacture; (3) 

metallurgy (carbon, alloy, or stainless); (4) the profile of the bars; 

and (5) whether or not they are galvanized, painted, coated, clad or 

plated. Steel grating is also commonly referred to as ``bar grating,'' 

although the components may consist of steel other than bars, such as 

hot-rolled sheet, plate, or wire rod.

    The scope of this investigation excludes expanded metal grating, 

which



[[Page 32364]]



is comprised of a single piece or coil of sheet or thin plate steel 

that has been slit and expanded, and does not involve welding or 

joining of multiple pieces of steel. The scope of this investigation 

also excludes plank type safety grating which is comprised of a single 

piece or coil of sheet or thin plate steel, typically in thickness of 

10 to 18 gauge, that has been pierced and cold formed, and does not 

involve welding or joining of multiple pieces of steel.

    Certain steel grating that is the subject of this investigation is 

currently classifiable in the Harmonized Tariff Schedule of the United 

States (``HTSUS'') under subheading 7308.90.7000. While the HTSUS 

subheading is provided for convenience and customs purposes, the 

written description of the scope of this investigation is dispositive.



Injury Test



    Because the PRC is a ``Subsidies Agreement Country'' within the 

meaning of section 701(b) of the Tariff Act of 1930, as amended (the 

Act), the International Trade Commission (ITC) is required to 

determine, pursuant to section 701(a)(2) of the Act, whether imports of 

the subject merchandise from the PRC materially injure, or threaten 

material injury to, a United States industry. On July 20, 2009, the ITC 

published its preliminary determination that there is a reasonable 

indication that an industry in the United States is materially injured 

by reason of allegedly subsidized imports from the PRC of subject 

merchandise. See Certain Steel Grating From China Determinations, 74 FR 

35204 (July 20, 2009); and Certain Steel Grating from China 

(Preliminary), USITC Pub. 4087, Inv. Nos. 701-TA-465 and 731-TA-1161 

(July 2009).



Analysis of Subsidy Programs and Comments Received



    All issues raised in the case and rebuttal briefs by parties to 

this investigation are addressed in the Memorandum to Ronald K. 

Lorentzen, Deputy Assistant Secretary for Import Administration, from 

John M. Andersen, Acting Deputy Assistant Secretary for Antidumping and 

Countervailing Duty Operations, entitled ``Issues and Decision 

Memorandum for the Final Determination in the Countervailing Duty 

Investigation of Certain Steel Grating from the People's Republic of 

China,'' dated concurrently with this notice (hereinafter, Decision 

Memorandum), which is hereby adopted by this notice. Attached to this 

notice as an Appendix is a list of the issues that parties have raised 

and to which we have responded in the Decision Memorandum. The Decision 

Memorandum also contains a complete analysis of the programs covered by 

this investigation, and the methodologies used to calculate the subsidy 

rates. Parties can find a complete discussion of all issues raised in 

this investigation and the corresponding recommendations in this public 

memorandum, which is on file in the Central Records Unit, room 1117 in 

the main building of the Commerce Department. In addition, a complete 

version of the Decision Memorandum can be accessed directly on the 

Internet at https://ia.ita.doc.gov/frn/. The paper copy and electronic 

version of the Decision Memorandum are identical in content.



Use of Adverse Facts Available



    For purposes of this final determination, we have relied on facts 

available and drawn adverse inferences, in accordance with sections 

776(a) and (b) of the Act, with regard to Ningbo Jiulong's receipt of 

countervailable subsidies under the ``Provision of Hot-Rolled Steel for 

Less than Adequate Remuneration'' and ``Provision of Wire Rod for Less 

than Adequate Remuneration'' programs. A full discussion of our 

decision to apply partial adverse facts available (AFA) is presented in 

the Decision Memorandum in the section ``Application of Facts 

Available, Including the Application of Adverse Inferences,'' as well 

as the Department's position on Comment 4 in the Decision Memorandum.

    With respect to the GOC's ``Provision of Electricity for Less than 

Adequate Remuneration,'' the Department has also relied upon facts 

available and drawn adverse inferences, in accordance with sections 

776(a) and (b) of the Act. A full discussion of our decision to apply 

partial AFA is presented in the section ``Application of Facts 

Available, Including the Application of Adverse Inferences,'' and the 

Department's position on Comment 10 of the Decision Memorandum.



Suspension of Liquidation



    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have 

calculated an individual rate for the mandatory respondent under 

investigation, Ningbo Jiulong Machinery Manufacturing Co., Ltd. Section 

705(c)(5)(A)(i) of the Act states that for companies not investigated, 

we will determine an ``all others'' rate equal to the weighted-average 

countervailable subsidy rates established for exporters and producers 

individually investigated, excluding any zero and de minimis 

countervailable subsidy rates, and any rates determined entirely under 

section 776 of the Act. In this investigation, the Department selected 

two mandatory respondents to review. After receiving and reviewing the 

questionnaire responses of one of the mandatory respondents, United 

Steel Structures, Ltd. (USSL), the Department determined that, because 

USSL was not a steel grating exporter or producer, it would be an 

inappropriate mandatory respondent in this investigation. See 

Memorandum to Ronald K. Lorentzen, Acting Assistant Secretary for 

Import Administration from John M. Andersen, Acting Deputy Assistant 

Secretary for AD/CVD Operations, Countervailing Duty Investigation of 

Certain Steel Grating from the People's Republic of China: Whether USSL 

Should be Maintained as a Mandatory Respondent. However, because that 

determination was made on October 23, 2009, three days before the 

preliminary determination, the Department determined that it could not 

select an additional mandatory respondent to calculate an individual 

rate for in this investigation. Because there is only one respondent in 

this investigation for which the Department has calculated a company-

specific rate, consistent with our practice and section 705(c)(5)(A)(i) 

of the Act, its rate serves as the ``all others'' rate. See e.g., Final 

Affirmative Countervailing Duty Determination: Certain Hot-Rolled 

Carbon Steel Flat Products from Thailand, 66 FR 50410, 50411 (October 

3, 2001); and Final Affirmative Countervailing Duty Determination: Pure 

Magnesium From Israel, 66 FR 49351, 49353 (Sept. 27, 2001).



------------------------------------------------------------------------

                                                               Net

                 Exporter/Manufacturer                   Countervailable

                                                           Subsidy Rate

------------------------------------------------------------------------

Ningbo Jiulong Machinery Manufacturing Co., Ltd........    62.46[percnt]

                                                              ad valorem

All Others.............................................    62.46[percnt]

                                                              ad valorem

------------------------------------------------------------------------



    As a result of our Preliminary Determination, we instructed CBP to 

suspend liquidation of all entries of steel grating from the PRC which 

were entered or withdrawn from warehouse, for consumption on or after 

November 3, 2009, the date of the publication of the Preliminary 

Determination in the Federal Register and to collect cash deposits of 

estimated countervailing duties or bonds, in the amount of the 

preliminary countervailing duty rates.

    Pursuant to section 703(d) of the Act, we subsequently instructed 

CBP to discontinue the suspension of liquidation for countervailing 

duty



[[Page 32365]]



purposes for subject merchandise entered on or after March 3, 2010, but 

to continue the suspension of liquidation of entries made on or after 

November 3, 2009 through March 2, 2010.

    If the ITC issues a final affirmative injury determination, we will 

issue a countervailing duty order and order CBP to resume the 

suspension of liquidation of entries of steel grating and to require a 

cash deposit on all such entries equal to the subsidy rate listed 

above. If the ITC determines that material injury, or threat of 

material injury, does not exist, this proceeding will be terminated and 

all deposits or securities posted as a result of the suspension of 

liquidation will be refunded or canceled.



ITC Notification



    In accordance with section 705(d) of the Act, we will notify the 

ITC of our determination. In addition, we are making available to the 

ITC all non-privileged and non-proprietary information related to this 

investigation. We will allow the ITC access to all privileged and 

business proprietary information in our files, provided the ITC 

confirms that it will not disclose such information, either publicly or 

under an APO, without the written consent of the Assistant Secretary 

for Import Administration.



Return or Destruction of Proprietary Information



    In the event that the ITC issues a final negative injury 

determination, this notice will serve as the only reminder to parties 

subject to an administrative protective order (APO) of their 

responsibility concerning the destruction of proprietary information 

disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 

written notification of the return/destruction of APO materials or 

conversion to judicial protective order is hereby requested. Failure to 

comply with the regulations and terms of an APO is a violation which is 

subject to sanction.

    This determination is issued and published pursuant to sections 

705(d) and 777(i) of the Act.



    Dated: May 28, 2010.

Paul Piquado,

Acting Deputy Assistant Secretary for Import Administration.



Appendix



I. Summary



II. Background



III. Subsidies Valuation



    A. Date of Applicability of CVD Law to the PRC

    B. Allocation Period

    C. Cross-Ownership



IV. Application of Facts Available, Including the Application of 

Adverse Inferences



V. Analysis of Programs



A. Programs Determined to Be Countervailable

    1. Government Provision of Hot-Rolled Steel for Less than Adequate 

Remuneration

    2. Government Provision of Wire Rod for Less than Adequate 

Remuneration

    3. Income Tax Credits for Domestically Owned Companies Purchasing 

Domestically Produced Equipment

    4. Government Provision of Electricity for Less than Adequate 

Remuneration

    5. Other Grant Programs

    a) Export Grant 2006, 2007, 2008

    b) Jiulong Lake Town Grant 2008

    c) Energy Saving Grant 2008

    d) Foreign Trade Grant 2008

    e) Famous Brand Grant 2008

    f) Innovative Small- and Medium-Sized Enterprise Grant 2008

    g) Water Fund Refund/Exemption 2008

    h) Product Quality Grant

B. Program Determined To Be Not Countervailable

    Cleaning Production Grant 2008

C. Programs Determined To Be Not Used or To Not Provide Benefits During 

the POI

    1. GOC Provision of Steel Bar for Less than Adequate Remuneration

    2. GOC Provision of Steel Plate for Less than Adequate Remuneration

    3. GOC Provision of Land-Use Rights to SOEs for Less than Adequate 

Remuneration

    4. ``Two Free, Three Half'' Program

    5. Reduced Income Tax Rates for Export-Oriented FIEs

    6. Preferential Income Tax Policy for Enterprises in the Northeast 

Region

    7. Forgiveness of Tax Arrears for Enterprises in the Old Industrial 

Bases of Northeast China

    8. Tax Subsidies for FIES in Specially Designated Geographic Areas

    9. Local Income Tax Exemption and Reduction Programs for 

``Productive'' FIEs

    10. Income Tax Credits for FIEs Purchasing Domestically Produced 

Equipment

    11. Preferential Tax Programs for FIEs Recognized as High or New 

Technology Enterprises

    12. Import Tariff and Value Added Tax (``VAT'') Exemptions for 

Encouraged Industries Importing Equipment for Domestic Operations

    13. VAT and Tariff Exemptions for Purchases of Fixed Assets Under 

the Foreign Trade Development Fund

    14. Loans and Interest Subsidies Provided Pursuant to the Northeast 

Revitalization Program

    15. Grants to ``Third-Line'' Military Enterprises

    16. Guangdong and Zhejiang Province Program to Rebate Antidumping 

Fees

    17. The State Key Technology Project Fund

    18. Export Incentive Payments Characterized as ``VAT Rebates''

    19. VAT Refunds for FIEs Purchasing Domestically-Produced Equipment

    20. Technical Upgrading Grant 2005, 2007

    21. Power Engine Grant 2005

    22. Technical Innovation Grant 2006

D. Programs For Which Ningbo Jiulong Is Determined to Be Ineligible

    1. Liaoning Province ``Five Points, One Line'' Program

    2. Guangzhou City Famous Exports Brands

    3. Grants to Companies for ``Outward Expansion'' in Guangdong 

Province



IV. Analysis of Comments



Comment 1: Application of U.S. Countervailing Duty Law to China

Comment 2: Cut-Off Date

Comment 3: Selection of Two Mandatory Respondents

Comment 4: Application of Adverse Facts Available

Comment 5: Department Procedures

Comment 6: Provision of Hot-Rolled Steel and Wire Rod for Less than 

Adequate Remuneration - The Role of Mill Test Certificates

Comment 7: Provision of Hot-Rolled Steel and Wire Rod for Less than 

Adequate Remuneration - Whether These Programs Are Countervailable

Comment 8: Provision of Hot-Rolled Steel and Wire Rod for Less than 

Adequate Remuneration - Appropriate Benchmark



[[Page 32366]]



Comment 9: Income Tax Credits for Domestically Owned Companies 

Purchasing Domestically Produced Equipment

Comment 10: Provision of Electricity for Less than Adequate 

Remuneration

Comment 11: Grant Programs

Comment 12: Separate CVD Rate for Xinke



VII. Recommendation



[FR Doc. 2010-13776 Filed 6-7-10; 8:45 am]

BILLING CODE 3510-DS-S