Certain Steel Nails From the United Arab Emirates: Initiation of Antidumping Duty Investigation, 23559-23564 [2011-10187]
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Federal Register / Vol. 76, No. 81 / Wednesday, April 27, 2011 / Notices
processing the separate-rate applications
in previous AD investigations, we have
modified the application for this
investigation to make it more
administrable and easier for applicants
to complete. See, e.g., Initiation of
Antidumping Duty Investigation:
Certain New Pneumatic Off-the-Road
Tires From the People’s Republic of
China, 72 FR 43591, 43594–95 (August
6, 2007). The specific requirements for
submitting the separate-rate application
in the NME investigation are outlined in
detail in the application itself, which
will be available on the Department’s
Web site at https://ia.ita.doc.gov/iahighlights-and-news.html on the date of
publication of this initiation notice in
the Federal Register. The separate-rate
application will be due 60 days after
publication of this initiation notice. For
exporters and producers who submit a
separate-rate status application and
subsequently are selected as mandatory
respondents, these exporters and
producers will no longer be eligible for
consideration for separate-rate status
unless they respond to all parts of the
questionnaire as mandatory
respondents. As explained in the
‘‘Respondent Selection’’ section above,
the Department requires that
respondents submit a response to both
the quantity and value questionnaire
and the separate-rate application by the
respective deadlines in order to receive
consideration for separate-rate status.
Use of Combination Rates in an NME
Investigation
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The Department will calculate
combination rates for certain
respondents that are eligible for a
separate rate in this investigation. The
Separate Rates and Combination Rates
Bulletin states:
{w}hile continuing the practice of
assigning separate rates only to exporters, all
separate rates that the Department will now
assign in its NME investigations will be
specific to those producers that supplied the
exporter during the period of investigation.
Note, however, that one rate is calculated for
the exporter and all of the producers which
supplied subject merchandise to it during the
period of investigation. This practice applies
both to mandatory respondents receiving an
individually calculated separate rate as well
as the pool of non-investigated firms
receiving the weighted-average of the
individually calculated rates. This practice is
referred to as the application of ‘‘combination
rates’’ because such rates apply to specific
combinations of exporters and one or more
producers. The cash-deposit rate assigned to
an exporter will apply only to merchandise
both exported by the firm in question and
produced by a firm that supplied the exporter
during the period of investigation.
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See Separate Rates and Combination
Rates Bulletin at 6 (emphasis added).
Distribution of Copies of the Petitions
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version
of the Petitions have been provided to
the Government of the PRC and Taiwan
authorities. Because of the large number
of producers/exporters identified in the
Petitions, the Department considers the
service of the public version of the
Petitions to the foreign producers/
exporters satisfied by the delivery of the
public version to the Government of the
PRC and Taiwan authorities, consistent
with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our
initiation, as required by section 732(d)
of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine
no later than May 16, 2011, whether
there is a reasonable indication that
imports of stilbenic OBAs from the PRC
and Taiwan are materially injuring or
threatening material injury to a U.S.
industry. A negative ITC determination
for any country will result in the
investigation being terminated with
respect to that country; otherwise, these
investigations will proceed according to
statutory and regulatory time limits.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305. On
January 22, 2008, the Department
published Antidumping and
Countervailing Duty Proceedings:
Documents Submission Procedures;
APO Procedures (73 FR 3634). Parties
wishing to participate in this
investigation should ensure that they
meet the requirements of these
procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR
351.103(d)).
Any party submitting factual
information in an AD or countervailing
duty (CVD) proceeding must certify to
the accuracy and completeness of that
information. See section 782(b) of the
Act. Parties are hereby reminded that
revised certification requirements are in
effect for company/government officials
as well as their representatives in all
segments of any AD/CVD proceedings
initiated on or after March 14, 2011. See
Certification of Factual Information to
Import Administration During
Antidumping and Countervailing Duty
Proceedings: Interim Final Rule, 76 FR
7491 (February 10, 2011) (Interim Final
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Rule), amending 19 CFR 351.303(g)(1)
and (2). The formats for the revised
certifications are provided at the end of
the Interim Final Rule. The Department
intends to reject factual submissions in
any proceeding segments initiated on or
after March 14, 2011, if the submitting
party does not comply with the revised
certification requirements.
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: April 20, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
Appendix I
Scope of the Investigations
The certain stilbenic optical brightening
agents (‘‘OBA’’) covered by these
investigations are all forms (whether free acid
or salt) of compounds known as
triazinylaminostilbenes (i.e., all derivatives
of 4,4′-bis [1,3,5- triazin-2-yl] amino-2,2′stilbenedisulfonic acid), except for
compounds listed in the following paragraph.
The certain stilbenic OBAs covered by these
investigations include final stilbenic OBA
products, as well as intermediate products
that are themselves triazinylaminostilbenes
produced during the synthesis of final
stilbenic OBA products.
Excluded from these investigations are all
forms of 4,4′-bis[4-anilino-6-morpholino1,3,5-triazin-2-yl] amino-2,2′stilbenedisulfonic acid, C40H40N12O8S2
(‘‘Fluorescent Brightener 71’’). These
investigations cover the above-described
compounds in any state (including but not
limited to powder, slurry, or solution), of any
concentrations of active certain stilbenic
OBA ingredient, as well as any compositions
regardless of additives (i.e., mixtures or
blends, whether of certain stilbenic OBAs
with each other, or of certain stilbenic OBAs
with additives that are not certain stilbenic
OBAs), and in any type of packaging.
These stilbenic OBAs are classifiable under
subheading 3204.20.8000 of the Harmonized
Tariff Schedule of the United States
(‘‘HTSUS’’), but they may also enter under
subheadings 2933.69.6050, 2921.59.4000 and
2921.59.8090. Although the HTSUS
subheadings are provided for convenience
and customs purposes, the written
description of the merchandise is dispositive.
[FR Doc. 2011–10188 Filed 4–26–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–520–804]
Certain Steel Nails From the United
Arab Emirates: Initiation of
Antidumping Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
AGENCY:
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DATES:
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Effective Date: April 27, 2011.
FOR FURTHER INFORMATION CONTACT:
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Dmitry Vladimirov or Minoo Hatten,
AD/CVD Operations, Office 5, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–0665 or (202) 482–
1690, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On March 31, 2011, the Department of
Commerce (the Department) received
the petition concerning imports of
certain steel nails from the United Arab
Emirates (UAE) filed in proper form by
Mid Continent Nail Corporation (the
petitioner). See Petition for the
Imposition of Antidumping Duties:
Certain Steel Nails from the United Arab
Emirates, dated March 31, 2011 (the
Petition). Based on the Department’s
request concerning certain business
proprietary information in the Petition,
the petitioner filed additional
information on April 4, 2011. On April
6, 2011, the Department issued a request
for additional information and
clarification of certain areas in the
Petition. The petitioner filed a response
to the Department’s request for
information on April 11, 2011
(hereinafter, Supplement to the
Petition). The petitioner filed two
addenda to the Petition on April 14,
2011, one of which requested a countrywide sales-below-cost investigation
(hereinafter, Second Supplement to the
Petition).
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioner alleges that imports
of certain steel nails from the UAE are
being, or are likely to be, sold in the
United States at less than fair value,
within the meaning of section 731 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 the
petitioner filed the Petition on behalf of
the domestic industry because the
petitioner is an interested party as
defined in section 771(9)(C) of the Act
and has demonstrated sufficient
industry support with respect to the
antidumping duty investigation that the
petitioner is requesting that the
Department initiate (see ‘‘Determination
of Industry Support for the Petition’’
section below).
Period of Investigation
The period of investigation (POI) is
January 1, 2010, through December 31,
2010. See 19 CFR 351.204(b)(1).
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Scope of Investigation
The products covered by this
investigation are certain steel nails from
the UAE. For a full description of the
scope of the investigation, please see the
‘‘Scope of the Investigation’’ in
Appendix I of this notice.1
Comments on Scope of Investigation
We reviewed the scope in the Petition
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
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 May 10, 2011, 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 of
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.
Comments on Product Characteristics
for Antidumping Questionnaire
The Department requests comments
from interested parties regarding the
appropriate physical characteristics of
certain steel nails to be reported in
response to the Department’s
antidumping questionnaire. This
information will be used to identify the
key physical characteristics of the
subject merchandise in order to report
the relevant costs of production
accurately as well as to develop
appropriate product-comparison
criteria.
Interested parties may provide any
information or comments that they feel
are relevant to the development of an
accurate list of physical characteristics.
Specifically, they may provide
comments as to which characteristics
are appropriate to use as general
product characteristics and the productcomparison criteria. We find that it is
not always appropriate to use all
1 The Department is conducting a changedcircumstances review concerning the antidumping
duty order on certain steel nails from the People’s
Republic of China that addresses the exclusion of
roofing nails. See Certain Steel Nails from the
People’s Republic of China: Initiation and
Preliminary Results of Antidumping Duty Changed
Circumstances Review (signed April 14, 2011).
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product characteristics as productcomparison criteria. We base productcomparison criteria on meaningful
commercial differences among products.
In other words, while there may be
some physical product characteristics
utilized by manufacturers to describe
certain steel nails, it may be that only
a select few product characteristics take
into account commercially meaningful
physical characteristics. In addition,
interested parties may comment on the
order in which the physical
characteristics should be used in
matching products. Generally, the
Department attempts to list the most
important physical characteristics first
and the least important characteristics
last.
In order to consider the suggestions of
interested parties in developing and
issuing the antidumping questionnaire,
limited to those issues addressed in the
comments, we must receive comments
at the above address by May 10, 2011.
Additionally, rebuttal comments,
limited to those issues addressed in the
comments, must be received by May 17,
2011.
Determination of Industry Support for
the Petition
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(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 732(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 to poll the industry.
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 International
Trade Commission (ITC), which is
responsible for determining whether
‘‘the domestic industry’’ has been
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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 (see 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 (CIT
2001), citing Algoma Steel Corp., Ltd. v.
United States, 688 F. Supp. 639, 644
(CIT 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, the petitioner does not offer a
definition of the 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 certain
steel nails 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 Antidumping Duty
Investigation Initiation Checklist:
Certain Steel Nails from the United Arab
Emirates (Initiation Checklist) at
Attachment II, Analysis of Industry
Support for the Petition Covering
Certain Steel Nails, on file in the Central
Records Unit (CRU), Room 7046 of the
main Department of Commerce
building.
In determining whether the petitioner
has standing under section 732(c)(4)(A)
of the Act, we considered the industrysupport data contained in the Petition
with reference to the domestic like
product as defined in the ‘‘Scope of
Investigation’’ section above. To
establish industry support, the
petitioner provided its production
volume of the domestic like product in
2010 as well as the 2010 production
volume of companies that support the
Petition. The petitioner compared the
total production of itself and supporters
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of the Petition to the estimated total
production of the domestic like product
for the entire domestic industry. See
Volume I of the Petition at 5 and
Exhibits IN–1 and IN–5, and
Supplement to the Petition at 4–7. The
petitioner estimated 2010 production of
the domestic like product by nonpetitioning companies based on its
knowledge of the certain steel nail
production capabilities and their
relative proportion of total domestic
sales. See Volume I of the Petition at
Exhibit IN–5 and Supplement to the
Petition at 5–6. We have relied upon
data the petitioner provided for
purposes of measuring industry support.
For further discussion, see Initiation
Checklist at Attachment II.
On April 5, 2011, we received an
industry support challenge from an
importer of certain steel nails from the
UAE. The petitioner responded to this
submission in its Supplement to the
Petition. See Supplement to the Petition
at 6 and 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 the petitioner
has established industry support. First,
the Petition established support from
domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, the Department is
not required to take further action in
order to evaluate industry support (e.g.,
polling). See section 732(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 732(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
product. See Initiation Checklist at
Attachment II. Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(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 product
produced by that portion of the industry
expressing support for, or opposition to,
the Petition. Accordingly, the
Department determines that the Petition
was filed on behalf of the domestic
industry within the meaning of section
732(b)(1) of the Act. See id.
The Department finds that the
petitioner filed the Petition on behalf of
the domestic industry because it is an
interested party as defined in section
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23561
771(9)(C) of the Act and it has
demonstrated sufficient industry
support with respect to the antidumping
duty investigation that it is requesting
the Department to initiate. See id.
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise sold at less than fair value.
In addition, the petitioner alleges that
subject imports exceed the negligibility
threshold provided for under section
771(24)(A) of the Act.
The petitioner contends that the
industry’s injured condition is
illustrated by reduced market share,
reduced production, reduced
shipments, reduced capacity and
capacity utilization, underselling and
price depression or suppression,
reduced employment, decline in
financial performance, lost sales and
revenue, and increase in import volume
and penetration. See Volume I of the
Petition at 14–41, Exhibits IN–1, IN–4–
13, and IN–16–20, and Supplement to
the Petition at 8. 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 supported by adequate evidence and
meet the statutory requirements for
initiation. See Initiation Checklist at
Attachment III, Analysis of Allegations
and Evidence of Material Injury and
Causation for the Petition Covering
Certain Steel Nails from the United Arab
Emirates.
Allegations of Sales at Less Than Fair
Value
The following is a description of the
allegations of sales at less than fair value
upon which the Department based its
decision to initiate this investigation of
imports of certain steel nails from the
UAE. The sources of data for the
deductions and adjustments relating to
the U.S. prices and cost of production
are also discussed in the initiation
checklist. See Initiation Checklist.
Export Price
The petitioner based U.S. prices on
price quotes from the U.S. distributors/
trading companies for sale offers of
certain steel nails in the United States
produced in and exported from the UAE
by Dubai Wire FZE (DWE) and
Millennium Steel and Wire (MSW), the
two largest UAE producers/exporters of
certain steel nails. See Initiation
Checklist at 6; see also Volume I of the
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Petition at 42–46, Exhibit IN–17, and
Volume II of the Petition at Exhibits
AD–1 and AD–2. The petitioner
substantiated the U.S. prices with
declarations from persons who obtained
and received the information. See
Volume II of the Petition at Exhibits
AD–1 and Supplement to the Petition at
Exhibit Supp. 5. The petitioner asserts
that the quoted sale offers are typical of
sales of certain steel nails produced in
the UAE and sold in the United States.
Id. With respect to all price quotes, the
petitioner was able to obtain product
descriptions, prices per box, and the
specific sale, payment, and delivery
terms. The petitioner made adjustments
for foreign inland freight, foreign port
expenses, ocean freight, U.S. port
expenses, U.S. harbor maintenance tax
and merchandise processing fees, U.S.
inland freight, the distributor’s markup,
and early-payment discount. See
Initiation Checklist at 6–8; see also
Volume I of the Petition at 46–54,
Exhibits AD–1, AD–2, AD–5 through
AD–13, and Supplement to the Petition
at 8–15, Exhibits Supp. 5–9. See
Initiation Checklist for additional
details.
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Normal Value
DWE
The petitioner provided information
that the UAE home market may be
viable with respect to DWE. See
Initiation Checklist at 9; see also
Volume I of the Petition at 55 and
Volume II of the Petition at Exhibit AD–
6. Through market research, the
petitioner obtained a quoted transaction
price for certain steel nails produced by
DWE and sold or offered for sale to
customers in the UAE. Id. The petitioner
substantiated the home market price
with a declaration from the person who
obtained the information. Id. The
petitioner asserts that, aside from
dimensions, the product subject to the
quoted transaction price is substantially
identical to subject merchandise sold by
DWE in the United States. See Initiation
Checklist at 9 and Volume I of the
Petition at 56. The petitioner made an
adjustment to the starting price for
foreign inland freight. See Initiation
Checklist at 9 and Volume II of the
Petition at Exhibits AD–9 and AD–15.
Because the quoted U.S. prices for nails
produced and/or exported by DWE were
for a product having dimensions
different from the dimensions of the
product sold or offered for sale as
reflected in the quoted UAE transaction,
the petitioner made a downward
difference-in-merchandise adjustment to
normal value pursuant to 19 CFR
351.411. See Initiation Checklist at 9;
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see also Volume I of the Petition at 68–
69, Volume II of the Petition at Exhibits
AD–4, AD–24, and AD–25, and
Supplement to the Petition at 14–15,
Exhibits Supp. 7 and Supp. 10.
The petitioner also made a
circumstances-of-sale adjustment to
normal value for U.S. credit expenses
pursuant to 19 CFR 351.410(c). See
Initiation Checklist at 9; see also
Volume I of the Petition at 53, Volume
II of the Petition at Exhibits AD–2, AD–
14, and Supplement to the Petition at
13–14 and Exhibits Supp. 6, Supp. 7,
and Supp. 9.
Sales-Below-Cost Allegation
The petitioner provided information
demonstrating reasonable grounds to
believe or suspect that sales of certain
steel nails from the UAE were made at
prices below the fully absorbed cost of
production (COP), within the meaning
of section 773(b) of the Act, and
requested that the Department conduct
a country-wide sales-below-cost
investigation. See Second Supplement
to the Petition.2 The Statement of
Administrative Action (SAA) submitted
to the Congress in connection with the
interpretation and application of the
Uruguay Round Agreements Act states
that an allegation of sales below COP
need not be specific to individual
exporters or producers. See SAA, H.R.
Doc. No. 103–316 at 833 (1994). The
SAA states, at 833, that ‘‘Commerce will
consider allegations of below-cost sales
in the aggregate for a foreign country,
just as Commerce currently considers
allegations of sales at less than fair value
on a country-wide basis for purposes of
initiating an antidumping
investigation.’’
Further, the SAA provides that
section 773(b)(2)(A) of the Act retains
the requirement that the Department
must have ‘‘reasonable grounds to
believe or suspect’’ that below-cost sales
have occurred before initiating such an
investigation. Reasonable grounds exist
when an interested party provides
specific factual information on costs and
prices, observed or constructed,
indicating that sales in the foreign
market in question are at below-cost
prices. Id.
2 In the Second Supplement to the Petition, the
petitioner alleged that producers of steel nails in the
UAE sold subject merchandise in their home market
at less than the COP, consistent with section 773(b)
of the Act. In the Second Supplement to the
Petition at 5, the petitioner demonstrated that
DWE’s price was below cost by comparing the
home-market price for DWE to constructed value
(CV) rather than to COP (according to section 773(e)
of the Act constructed value consists of COP plus
an amount for profit). We compared the homemarket price to the revised COP and found that the
price was below the COP. See Initiation Checklist
at Attachment V.
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Cost of Production
Pursuant to section 773(b)(3) of the
Act, the petitioner calculated COP based
on costs of manufacturing (COM),
selling, general, and administrative
expenses (SG&A), and packing
expenses. The petitioner did not include
an amount for financial expense. See
Initiation Checklist at 9–11.
The petitioner calculated raw
materials, labor, energy, and packing
based on the production experience of
a U.S. producer of certain steel nails,
adjusted for known differences to
manufacture certain steel nails in the
UAE using publically available data. See
Initiation Checklist for details of the
calculation of raw materials, labor,
energy, and packing. To calculate the
factory overhead and SG&A, the
petitioner relied on the cost data from
a steel-fabricating company in the UAE.
See Initiation Checklist at 9–11. We
adjusted the petitioner’s calculation of
COP in order to avoid the double
counting of energy expenses. See
Initiation Checklist.
Based upon a comparison of the net
price of the foreign like product in the
comparison market to the COP
calculated for the product, we find
reasonable grounds to believe or suspect
that sales of the foreign like product in
the comparison market were made at
prices below the COP within the
meaning of section 773(b)(2)(A)(i) of the
Act. Accordingly, the Department is
initiating a country-wide cost
investigation.
Normal Value Based on Constructed
Value
Because the petitioner alleged sales
below cost, and pursuant to sections
773(a)(4), 773(b) and 773(e) of the Act,
we calculated normal value based on
CV. We calculated CV using the same
average COM, SG&A, financial and
packing figures used to compute the
COP. We added the average profit rate
based on the most recent financial
statements of a company in the same
general industry in the UAE as the
producers of certain steel nails. See
Initiation Checklist at 9–11. We also
made a circumstance-of-sale adjustment
to normal value for U.S. credit expenses
pursuant to 19 CFR 351.410(c). See
Initiation Checklist at 7–8, 12–13; see
Volume I of the Petition at 53 and
Volume II of the Petition at Exhibits
AD–2, AD–14; see Supplement to the
Petition at 13–14 and Exhibits Supp. 6,
Supp. 7, and Supp. 9.
MSW
The petitioner asserts that it was
unable to obtain home market pricing
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data for products that were identical or
similar to the products MSW offered for
sale to the United States. Further, the
petitioner provided information
indicating that MSW may not have a
viable home market or third-country
market. See Initiation Checklist at 9; see
also Volume I of the Petition at 58 and
Volume II of the Petition at AD–6.
Because the petitioner has alleged that
all sales to countries other than the
United States constitute less than the
five-percent threshold provided for in
section 773(a)(1)(B)(ii)(II) of the Act, the
petitioner based normal value on CV for
MSW. Id. See Initiation Checklist for
additional details.
Normal Value Based on Constructed
Value
Pursuant to section 773(e) of the Act,
the petitioner calculated CV based on
COM, SG&A, packing expenses, and
profit using the same methodology as
described with respect to DWE. The
petitioner also made a circumstance-ofsale adjustment to normal value for U.S.
credit expenses pursuant to 19 CFR
351.410(c). See Initiation Checklist at 7–
8, 12–13; see also Volume I of the
Petition at 53, Volume II of the Petition
at Exhibits AD–2, AD–14, and
Supplement to the Petition at 13–14 and
Exhibits Supp. 6, Supp. 7, and Supp. 9.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
Fair Value Comparisons
Based on the data provided by the
petitioner, there is reason to believe that
imports of certain steel nails are being,
or are likely to be, sold in the United
States at less than fair value. Based on
a comparison of respective net export
prices and normal value calculated in
accordance with section 773(a)(1) of the
Act, the estimated dumping margins for
certain steel nails from the UAE range
from 61.54 to 81.82 percent for DWE.
Based on a comparison of respective net
export prices and normal value based on
CV calculated in accordance with
section 773(a)(4) of the Act, the
estimated dumping margins for certain
steel nails from the UAE range from
152.37 to 184.41 percent for DWE and
from 150.13 to 154.26 percent for MSW.
See Initiation Checklist at 14 and
Attachments VI and VII.
Initiation of Antidumping Investigation
Based upon the examination of the
Petition on certain steel nails from UAE,
the Department finds that the Petition
meets the requirements of section 732 of
the Act. Therefore, we are initiating an
antidumping duty investigation to
determine whether imports of certain
steel nails from UAE are being, or are
likely to be, sold in the United States at
less than fair value. In accordance with
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section 733(b)(1)(A) of the Act and 19
CFR 351.205(b)(1), unless postponed,
we will make our preliminary
determination no later than 140 days
after the date of this initiation.
Targeted Dumping Allegations
On December 10, 2008, the
Department issued an interim final rule
for the purpose of withdrawing 19 CFR
351.414(f) and (g), the regulatory
provisions governing the targeted
dumping analysis in antidumping duty
investigations, and the corresponding
regulation governing the deadline for
targeted-dumping allegations, 19 CFR
351.301(d)(5). See Withdrawal of the
Regulatory Provisions Governing
Targeted Dumping in Antidumping
Duty Investigations, 73 FR 74930
(December 10, 2008). The Department
stated that ‘‘{w}ithdrawal will allow the
Department to exercise the discretion
intended by the statute and, thereby,
develop a practice that will allow
interested parties to pursue all statutory
avenues of relief in this area.’’ See id. at
74931.
In order to accomplish this objective,
if any interested party wishes to make
a targeted dumping allegation in this
investigation pursuant to section
777A(d)(1)(B) of the Act, such
allegations are due no later than 45 days
before the scheduled date of the
preliminary determination.
Respondent Selection
For this investigation, the Department
intends to select respondents based on
U.S. Customs and Border Protection
(CBP) data for U.S. imports under the
Harmonized Tariff Schedule of the
United States (HTSUS) numbers
7317.00.55, 7317.00.65, and 7317.00.75,
the three HTSUS categories most
specific to the subject merchandise, for
entries made 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
publication of this Federal Register
notice and make our decision regarding
respondent selection within 20 days of
publication of this notice. The
Department invites comments regarding
the CBP data and respondent selection
within 10 days of publication of this
Federal Register notice.
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305.
Instructions for filing such applications
may be found on the Department’s
website at https://ia.ita.doc.gov/apo.
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23563
Distribution of Copies of the Petitions
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public versions
of the Petition have been provided to
the representatives of the Government of
the UAE. We will attempt to provide a
copy of the public version of the
Petition to the foreign producers/
exporters, consistent with 19 CFR
351.203(c)(2).
ITC Notification
We have notified the ITC of our
initiation, as required by section 732(d)
of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine,
no later than May 16, 2011, whether
there is a reasonable indication that
imports of certain steel nails from the
UAE are materially injuring, or
threatening material injury to a U.S.
industry. A negative ITC determination
will result in the investigation being
terminated; otherwise, this investigation
will proceed according to statutory and
regulatory time limits.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305. On
January 22, 2008, the Department
published Antidumping and
Countervailing Duty Proceedings:
Documents Submission Procedures;
APO Procedures (73 FR 3634). Parties
wishing to participate in this
investigation should ensure that they
meet the requirements of these
procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR
351.103(d)).
Any party submitting factual
information in an antidumping or
countervailing duty proceeding must
certify to the accuracy and completeness
of that information. See section 782(b)
of the Act. Parties are hereby reminded
that revised certification requirements
are in effect for company/government
officials as well as their representatives
in all segments of any antidumping or
countervailing duty proceeding initiated
on or after March 14, 2011. See
Certification of Factual Information to
Import Administration During
Antidumping and Countervailing Duty
Proceedings: Interim Final Rule, 76 FR
7491 (February 10, 2011) (Interim Final
Rule), amending 19 CFR 351.303(g)(1)
and (2). The formats for the revised
certifications are provided at the end of
the Interim Final Rule. The Department
intends to reject factual submissions in
any proceeding segments initiated on or
after March 14, 2011, if the submitting
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party does not comply with the revised
certification requirements.
This notice is issued and published
pursuant to section 777(i) of the Act.
WReier-Aviles on DSKGBLS3C1PROD with NOTICES
Dated: April 20, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
Appendix I—Scope of the Investigation
The merchandise covered by this
investigation includes certain steel nails
having a shaft length up to 12 inches.
Certain steel nails include, but are not
limited to, nails made of round wire and
nails that are cut. Certain steel nails may
be of one piece construction or
constructed of two or more pieces.
Certain steel nails may be produced
from any type of steel, and have a
variety of finishes, heads, shanks, point
types, shaft lengths and shaft diameters.
Finishes include, but are not limited to,
coating in vinyl, zinc (galvanized,
whether by electroplating or hotdipping one or more times), phosphate
cement, and paint. Head styles include,
but are not limited to, flat, projection,
cupped, oval, brad, headless, double,
countersunk, and sinker. Shank styles
include, but are not limited to, smooth,
barbed, screw threaded, ring shank and
fluted shank styles. Screw-threaded
nails subject to this investigation are
driven using direct force and not by
turning the fastener using a tool that
engages with the head. Point styles
include, but are not limited to,
diamond, blunt, needle, chisel and no
point. Certain steel nails may be sold in
bulk, or they may be collated into strips
or coils using materials such as plastic,
paper, or wire.
Certain steel nails subject to this
investigation are currently classified
under the Harmonized Tariff Schedule
of the United States (HTSUS)
subheadings 7317.00.55, 7317.00.65,
and 7317.00.75.
Excluded from the scope of this
investigation are steel nails specifically
enumerated and identified in ASTM
Standard F 1667 (2005 revision) as Type
I, Style 20 nails, whether collated or in
bulk, and whether or not galvanized.
Also excluded from the scope of this
investigation are the following products:
• Non-collated (i.e., hand-drive or
bulk), two-piece steel nails having
plastic or steel washers (‘‘caps’’) already
assembled to the nail, having a bright or
galvanized finish, a ring, fluted or spiral
shank, an actual length of 0.500″ to 8″,
inclusive; an actual shank diameter of
0.1015″ to 0.166″, inclusive; and an
actual washer or cap diameter of 0.900″
to 1.10″, inclusive;
• Non-collated (i.e., hand-drive or
bulk), steel nails having a bright or
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galvanized finish, a smooth, barbed or
ringed shank, an actual length of 0.500″
to 4″, inclusive; an actual shank
diameter of 0.1015″ to 0.166″, inclusive;
and an actual head diameter of 0.3375″
to 0.500″, inclusive, and whose
packaging and packaging marking are
clearly and prominently labeled
‘‘Roofing’’ or ‘‘Roof’’ nails;
• Wire collated steel nails, in coils,
having a galvanized finish, a smooth,
barbed or ringed shank, an actual length
of 0.500″ to 1.75″, inclusive; an actual
shank diameter of 0.116″ to 0.166″,
inclusive; and an actual head diameter
of 0.3375″ to 0.500″, inclusive, and
whose packaging and packaging
marking are clearly and prominently
labeled ‘‘Roofing’’ or ‘‘Roof’’ nails;
• Non-collated (i.e., hand-drive or
bulk), steel nails having a convex head
(commonly known as an umbrella
head), a smooth or spiral shank, a
galvanized finish, an actual length of
1.75″ to 3″, inclusive; an actual shank
diameter of 0.131″ to 0.152″, inclusive;
and an actual head diameter of 0.450″ to
0.813″, inclusive, and whose packaging
and packaging marking are clearly and
prominently labeled ‘‘Roofing’’ or ‘‘Roof’’
nails;
• Corrugated nails. A corrugated nail
is made of a small strip of corrugated
steel with sharp points on one side;
• Thumb tacks, which are currently
classified under HTSUS 7317.00.10.00;
• Fasteners suitable for use in
powder-actuated hand tools, not
threaded and threaded, which are
currently classified under HTSUS
7317.00.20 and 7317.00.30;
• Certain steel nails that are equal to
or less than 0.0720 inches in shank
diameter, round or rectangular in cross
section, between 0.375 inches and 2.5
inches in length, and that are collated
with adhesive or polyester film tape
backed with a heat seal adhesive; and
• Fasteners having a case hardness
greater than or equal to 50 HRC, a
carbon content greater than or equal to
0.5 percent, a round head, a secondary
reduced-diameter raised head section, a
centered shank, and a smooth
symmetrical point, suitable for use in
gas-actuated hand tools.
While the HTSUS subheadings are
provided for convenience and customs
purposes, the written description of the
scope of this investigation is dispositive.
[FR Doc. 2011–10187 Filed 4–26–11; 8:45 am]
BILLING CODE 3510–DS–P
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DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–976]
Galvanized Steel Wire From the
People’s Republic of China: Initiation
of Countervailing Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: April 27, 2011.
FOR FURTHER INFORMATION CONTACT:
Nicholas Czajkowski or David Lindgren,
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) 482–1395 or
(202) 482–3870, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On March 31, 2011, the Department of
Commerce (the Department) received a
countervailing duty (CVD) petition
concerning imports of galvanized steel
wire from the People’s Republic of
China (PRC) filed in proper form by
Davis Wire Corporation, Johnstown
Wire Technologies, Inc., Mid-South
Wire Company, Inc., National Standard,
LLC, and Oklahoma Steel & Wire
Company, Inc. (Petitioners), domestic
producers of galvanized steel wire. See
‘‘Petition for the Imposition of
Countervailing Duties on Galvanized
Steel Wire from the People’s Republic of
China’’ (CVD Petition). On April 6, 2011,
the Department requested additional
information and clarification of certain
areas of the CVD Petition involving the
subsidy allegations. On the same day we
issued a separate set of requests for
information regarding the scope,
industry support, and injury sections of
the CVD Petition and the accompanying
antidumping petitions for Mexico and
the PRC. Petitioners filed timely,
separate responses to these
questionnaires on April 11, 2011 (First
Supplement to the CVD Petition and
Supplement to the AD/CVD Petitions,
respectively). On April 12, 2011, the
Department issued a second set of
questions regarding general issues,
injury information and antidumpingspecific topics. On April 14, 2011,
Petitioners filed timely responses to the
April 12, 2011 questionnaires (Second
Supplement to the AD/CVD Petitions).
On April 12, 2011, the Department
requested additional information
regarding the CVD Petition. See Memo
to the File from Mark E. Hoadley,
Program Manager, AD/CVD Operations,
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[Federal Register Volume 76, Number 81 (Wednesday, April 27, 2011)]
[Notices]
[Pages 23559-23564]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-10187]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-520-804]
Certain Steel Nails From the United Arab Emirates: Initiation of
Antidumping Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
[[Page 23560]]
DATES: Effective Date: April 27, 2011.
FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov or Minoo Hatten, AD/
CVD Operations, Office 5, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW., Washington, DC 20230; telephone: (202) 482-
0665 or (202) 482-1690, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On March 31, 2011, the Department of Commerce (the Department)
received the petition concerning imports of certain steel nails from
the United Arab Emirates (UAE) filed in proper form by Mid Continent
Nail Corporation (the petitioner). See Petition for the Imposition of
Antidumping Duties: Certain Steel Nails from the United Arab Emirates,
dated March 31, 2011 (the Petition). Based on the Department's request
concerning certain business proprietary information in the Petition,
the petitioner filed additional information on April 4, 2011. On April
6, 2011, the Department issued a request for additional information and
clarification of certain areas in the Petition. The petitioner filed a
response to the Department's request for information on April 11, 2011
(hereinafter, Supplement to the Petition). The petitioner filed two
addenda to the Petition on April 14, 2011, one of which requested a
country-wide sales-below-cost investigation (hereinafter, Second
Supplement to the Petition).
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of certain steel
nails from the UAE are being, or are likely to be, sold in the United
States at less than fair value, within the meaning of section 731 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 the petitioner filed the Petition on
behalf of the domestic industry because the petitioner is an interested
party as defined in section 771(9)(C) of the Act and has demonstrated
sufficient industry support with respect to the antidumping duty
investigation that the petitioner is requesting that the Department
initiate (see ``Determination of Industry Support for the Petition''
section below).
Period of Investigation
The period of investigation (POI) is January 1, 2010, through
December 31, 2010. See 19 CFR 351.204(b)(1).
Scope of Investigation
The products covered by this investigation are certain steel nails
from the UAE. For a full description of the scope of the investigation,
please see the ``Scope of the Investigation'' in Appendix I of this
notice.\1\
---------------------------------------------------------------------------
\1\ The Department is conducting a changed-circumstances review
concerning the antidumping duty order on certain steel nails from
the People's Republic of China that addresses the exclusion of
roofing nails. See Certain Steel Nails from the People's Republic of
China: Initiation and Preliminary Results of Antidumping Duty
Changed Circumstances Review (signed April 14, 2011).
---------------------------------------------------------------------------
Comments on Scope of Investigation
We reviewed the scope in the Petition 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
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
May 10, 2011, 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 of 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.
Comments on Product Characteristics for Antidumping Questionnaire
The Department requests comments from interested parties regarding
the appropriate physical characteristics of certain steel nails to be
reported in response to the Department's antidumping questionnaire.
This information will be used to identify the key physical
characteristics of the subject merchandise in order to report the
relevant costs of production accurately as well as to develop
appropriate product-comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as general product
characteristics and the product-comparison criteria. We find that it is
not always appropriate to use all product characteristics as product-
comparison criteria. We base product-comparison criteria on meaningful
commercial differences among products. In other words, while there may
be some physical product characteristics utilized by manufacturers to
describe certain steel nails, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, the Department attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the antidumping questionnaire, limited to those
issues addressed in the comments, we must receive comments at the above
address by May 10, 2011. Additionally, rebuttal comments, limited to
those issues addressed in the comments, must be received by May 17,
2011.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(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 732(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 to poll the industry.
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 International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been
[[Page 23561]]
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 (see 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 (CIT 2001), citing Algoma Steel Corp., Ltd. v. United
States, 688 F. Supp. 639, 644 (CIT 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, the petitioner does not
offer a definition of the 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 certain steel nails
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 Antidumping Duty
Investigation Initiation Checklist: Certain Steel Nails from the United
Arab Emirates (Initiation Checklist) at Attachment II, Analysis of
Industry Support for the Petition Covering Certain Steel Nails, on file
in the Central Records Unit (CRU), Room 7046 of the main Department of
Commerce building.
In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry-support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of Investigation'' section above. To
establish industry support, the petitioner provided its production
volume of the domestic like product in 2010 as well as the 2010
production volume of companies that support the Petition. The
petitioner compared the total production of itself and supporters of
the Petition to the estimated total production of the domestic like
product for the entire domestic industry. See Volume I of the Petition
at 5 and Exhibits IN-1 and IN-5, and Supplement to the Petition at 4-7.
The petitioner estimated 2010 production of the domestic like product
by non-petitioning companies based on its knowledge of the certain
steel nail production capabilities and their relative proportion of
total domestic sales. See Volume I of the Petition at Exhibit IN-5 and
Supplement to the Petition at 5-6. We have relied upon data the
petitioner provided for purposes of measuring industry support. For
further discussion, see Initiation Checklist at Attachment II.
On April 5, 2011, we received an industry support challenge from an
importer of certain steel nails from the UAE. The petitioner responded
to this submission in its Supplement to the Petition. See Supplement to
the Petition at 6 and 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 the petitioner has established industry support. First,
the Petition established support from domestic producers (or workers)
accounting for more than 50 percent of the total production of the
domestic like product and, as such, the Department is not required to
take further action in order to evaluate industry support (e.g.,
polling). See section 732(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
732(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 product. See Initiation Checklist at
Attachment II. Finally, the domestic producers (or workers) have met
the statutory criteria for industry support under section
732(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 product produced by that portion of the
industry expressing support for, or opposition to, the Petition.
Accordingly, the Department determines that the Petition was filed on
behalf of the domestic industry within the meaning of section 732(b)(1)
of the Act. See id.
The Department finds that the 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 it has demonstrated
sufficient industry support with respect to the antidumping duty
investigation that it is requesting the Department to initiate. See id.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at less than fair value. In addition, the petitioner
alleges that subject imports exceed the negligibility threshold
provided for under section 771(24)(A) of the Act.
The petitioner contends that the industry's injured condition is
illustrated by reduced market share, reduced production, reduced
shipments, reduced capacity and capacity utilization, underselling and
price depression or suppression, reduced employment, decline in
financial performance, lost sales and revenue, and increase in import
volume and penetration. See Volume I of the Petition at 14-41, Exhibits
IN-1, IN-4-13, and IN-16-20, and Supplement to the Petition at 8. 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 supported by adequate evidence
and meet the statutory requirements for initiation. See Initiation
Checklist at Attachment III, Analysis of Allegations and Evidence of
Material Injury and Causation for the Petition Covering Certain Steel
Nails from the United Arab Emirates.
Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which the Department based its decision to
initiate this investigation of imports of certain steel nails from the
UAE. The sources of data for the deductions and adjustments relating to
the U.S. prices and cost of production are also discussed in the
initiation checklist. See Initiation Checklist.
Export Price
The petitioner based U.S. prices on price quotes from the U.S.
distributors/trading companies for sale offers of certain steel nails
in the United States produced in and exported from the UAE by Dubai
Wire FZE (DWE) and Millennium Steel and Wire (MSW), the two largest UAE
producers/exporters of certain steel nails. See Initiation Checklist at
6; see also Volume I of the
[[Page 23562]]
Petition at 42-46, Exhibit IN-17, and Volume II of the Petition at
Exhibits AD-1 and AD-2. The petitioner substantiated the U.S. prices
with declarations from persons who obtained and received the
information. See Volume II of the Petition at Exhibits AD-1 and
Supplement to the Petition at Exhibit Supp. 5. The petitioner asserts
that the quoted sale offers are typical of sales of certain steel nails
produced in the UAE and sold in the United States. Id. With respect to
all price quotes, the petitioner was able to obtain product
descriptions, prices per box, and the specific sale, payment, and
delivery terms. The petitioner made adjustments for foreign inland
freight, foreign port expenses, ocean freight, U.S. port expenses, U.S.
harbor maintenance tax and merchandise processing fees, U.S. inland
freight, the distributor's markup, and early-payment discount. See
Initiation Checklist at 6-8; see also Volume I of the Petition at 46-
54, Exhibits AD-1, AD-2, AD-5 through AD-13, and Supplement to the
Petition at 8-15, Exhibits Supp. 5-9. See Initiation Checklist for
additional details.
Normal Value
DWE
The petitioner provided information that the UAE home market may be
viable with respect to DWE. See Initiation Checklist at 9; see also
Volume I of the Petition at 55 and Volume II of the Petition at Exhibit
AD-6. Through market research, the petitioner obtained a quoted
transaction price for certain steel nails produced by DWE and sold or
offered for sale to customers in the UAE. Id. The petitioner
substantiated the home market price with a declaration from the person
who obtained the information. Id. The petitioner asserts that, aside
from dimensions, the product subject to the quoted transaction price is
substantially identical to subject merchandise sold by DWE in the
United States. See Initiation Checklist at 9 and Volume I of the
Petition at 56. The petitioner made an adjustment to the starting price
for foreign inland freight. See Initiation Checklist at 9 and Volume II
of the Petition at Exhibits AD-9 and AD-15. Because the quoted U.S.
prices for nails produced and/or exported by DWE were for a product
having dimensions different from the dimensions of the product sold or
offered for sale as reflected in the quoted UAE transaction, the
petitioner made a downward difference-in-merchandise adjustment to
normal value pursuant to 19 CFR 351.411. See Initiation Checklist at 9;
see also Volume I of the Petition at 68-69, Volume II of the Petition
at Exhibits AD-4, AD-24, and AD-25, and Supplement to the Petition at
14-15, Exhibits Supp. 7 and Supp. 10.
The petitioner also made a circumstances-of-sale adjustment to
normal value for U.S. credit expenses pursuant to 19 CFR 351.410(c).
See Initiation Checklist at 9; see also Volume I of the Petition at 53,
Volume II of the Petition at Exhibits AD-2, AD-14, and Supplement to
the Petition at 13-14 and Exhibits Supp. 6, Supp. 7, and Supp. 9.
Sales-Below-Cost Allegation
The petitioner provided information demonstrating reasonable
grounds to believe or suspect that sales of certain steel nails from
the UAE were made at prices below the fully absorbed cost of production
(COP), within the meaning of section 773(b) of the Act, and requested
that the Department conduct a country-wide sales-below-cost
investigation. See Second Supplement to the Petition.\2\ The Statement
of Administrative Action (SAA) submitted to the Congress in connection
with the interpretation and application of the Uruguay Round Agreements
Act states that an allegation of sales below COP need not be specific
to individual exporters or producers. See SAA, H.R. Doc. No. 103-316 at
833 (1994). The SAA states, at 833, that ``Commerce will consider
allegations of below-cost sales in the aggregate for a foreign country,
just as Commerce currently considers allegations of sales at less than
fair value on a country-wide basis for purposes of initiating an
antidumping investigation.''
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\2\ In the Second Supplement to the Petition, the petitioner
alleged that producers of steel nails in the UAE sold subject
merchandise in their home market at less than the COP, consistent
with section 773(b) of the Act. In the Second Supplement to the
Petition at 5, the petitioner demonstrated that DWE's price was
below cost by comparing the home-market price for DWE to constructed
value (CV) rather than to COP (according to section 773(e) of the
Act constructed value consists of COP plus an amount for profit). We
compared the home-market price to the revised COP and found that the
price was below the COP. See Initiation Checklist at Attachment V.
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Further, the SAA provides that section 773(b)(2)(A) of the Act
retains the requirement that the Department must have ``reasonable
grounds to believe or suspect'' that below-cost sales have occurred
before initiating such an investigation. Reasonable grounds exist when
an interested party provides specific factual information on costs and
prices, observed or constructed, indicating that sales in the foreign
market in question are at below-cost prices. Id.
Cost of Production
Pursuant to section 773(b)(3) of the Act, the petitioner calculated
COP based on costs of manufacturing (COM), selling, general, and
administrative expenses (SG&A), and packing expenses. The petitioner
did not include an amount for financial expense. See Initiation
Checklist at 9-11.
The petitioner calculated raw materials, labor, energy, and packing
based on the production experience of a U.S. producer of certain steel
nails, adjusted for known differences to manufacture certain steel
nails in the UAE using publically available data. See Initiation
Checklist for details of the calculation of raw materials, labor,
energy, and packing. To calculate the factory overhead and SG&A, the
petitioner relied on the cost data from a steel-fabricating company in
the UAE. See Initiation Checklist at 9-11. We adjusted the petitioner's
calculation of COP in order to avoid the double counting of energy
expenses. See Initiation Checklist.
Based upon a comparison of the net price of the foreign like
product in the comparison market to the COP calculated for the product,
we find reasonable grounds to believe or suspect that sales of the
foreign like product in the comparison market were made at prices below
the COP within the meaning of section 773(b)(2)(A)(i) of the Act.
Accordingly, the Department is initiating a country-wide cost
investigation.
Normal Value Based on Constructed Value
Because the petitioner alleged sales below cost, and pursuant to
sections 773(a)(4), 773(b) and 773(e) of the Act, we calculated normal
value based on CV. We calculated CV using the same average COM, SG&A,
financial and packing figures used to compute the COP. We added the
average profit rate based on the most recent financial statements of a
company in the same general industry in the UAE as the producers of
certain steel nails. See Initiation Checklist at 9-11. We also made a
circumstance-of-sale adjustment to normal value for U.S. credit
expenses pursuant to 19 CFR 351.410(c). See Initiation Checklist at 7-
8, 12-13; see Volume I of the Petition at 53 and Volume II of the
Petition at Exhibits AD-2, AD-14; see Supplement to the Petition at 13-
14 and Exhibits Supp. 6, Supp. 7, and Supp. 9.
MSW
The petitioner asserts that it was unable to obtain home market
pricing
[[Page 23563]]
data for products that were identical or similar to the products MSW
offered for sale to the United States. Further, the petitioner provided
information indicating that MSW may not have a viable home market or
third-country market. See Initiation Checklist at 9; see also Volume I
of the Petition at 58 and Volume II of the Petition at AD-6. Because
the petitioner has alleged that all sales to countries other than the
United States constitute less than the five-percent threshold provided
for in section 773(a)(1)(B)(ii)(II) of the Act, the petitioner based
normal value on CV for MSW. Id. See Initiation Checklist for additional
details.
Normal Value Based on Constructed Value
Pursuant to section 773(e) of the Act, the petitioner calculated CV
based on COM, SG&A, packing expenses, and profit using the same
methodology as described with respect to DWE. The petitioner also made
a circumstance-of-sale adjustment to normal value for U.S. credit
expenses pursuant to 19 CFR 351.410(c). See Initiation Checklist at 7-
8, 12-13; see also Volume I of the Petition at 53, Volume II of the
Petition at Exhibits AD-2, AD-14, and Supplement to the Petition at 13-
14 and Exhibits Supp. 6, Supp. 7, and Supp. 9.
Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of certain steel nails are being, or are likely to
be, sold in the United States at less than fair value. Based on a
comparison of respective net export prices and normal value calculated
in accordance with section 773(a)(1) of the Act, the estimated dumping
margins for certain steel nails from the UAE range from 61.54 to 81.82
percent for DWE. Based on a comparison of respective net export prices
and normal value based on CV calculated in accordance with section
773(a)(4) of the Act, the estimated dumping margins for certain steel
nails from the UAE range from 152.37 to 184.41 percent for DWE and from
150.13 to 154.26 percent for MSW. See Initiation Checklist at 14 and
Attachments VI and VII.
Initiation of Antidumping Investigation
Based upon the examination of the Petition on certain steel nails
from UAE, the Department finds that the Petition meets the requirements
of section 732 of the Act. Therefore, we are initiating an antidumping
duty investigation to determine whether imports of certain steel nails
from UAE are being, or are likely to be, sold in the United States at
less than fair value. In accordance with section 733(b)(1)(A) of the
Act and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determination no later than 140 days after the date of this
initiation.
Targeted Dumping Allegations
On December 10, 2008, the Department issued an interim final rule
for the purpose of withdrawing 19 CFR 351.414(f) and (g), the
regulatory provisions governing the targeted dumping analysis in
antidumping duty investigations, and the corresponding regulation
governing the deadline for targeted-dumping allegations, 19 CFR
351.301(d)(5). See Withdrawal of the Regulatory Provisions Governing
Targeted Dumping in Antidumping Duty Investigations, 73 FR 74930
(December 10, 2008). The Department stated that ``{w{time} ithdrawal
will allow the Department to exercise the discretion intended by the
statute and, thereby, develop a practice that will allow interested
parties to pursue all statutory avenues of relief in this area.'' See
id. at 74931.
In order to accomplish this objective, if any interested party
wishes to make a targeted dumping allegation in this investigation
pursuant to section 777A(d)(1)(B) of the Act, such allegations are due
no later than 45 days before the scheduled date of the preliminary
determination.
Respondent Selection
For this investigation, the Department intends to select
respondents based on U.S. Customs and Border Protection (CBP) data for
U.S. imports under the Harmonized Tariff Schedule of the United States
(HTSUS) numbers 7317.00.55, 7317.00.65, and 7317.00.75, the three HTSUS
categories most specific to the subject merchandise, for entries made
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 publication of this Federal
Register notice and make our decision regarding respondent selection
within 20 days of publication of this notice. The Department invites
comments regarding the CBP data and respondent selection within 10 days
of publication of this Federal Register notice.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Instructions for filing such
applications may be found on the Department's website at https://ia.ita.doc.gov/apo.
Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public versions of the Petition have been
provided to the representatives of the Government of the UAE. We will
attempt to provide a copy of the public version of the Petition to the
foreign producers/exporters, consistent with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, no later than May 16, 2011,
whether there is a reasonable indication that imports of certain steel
nails from the UAE are materially injuring, or threatening material
injury to a U.S. industry. A negative ITC determination will result in
the investigation being terminated; otherwise, this investigation will
proceed according to statutory and regulatory time limits.
Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, the
Department published Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures (73 FR 3634). Parties
wishing to participate in this investigation should ensure that they
meet the requirements of these procedures (e.g., the filing of letters
of appearance as discussed at 19 CFR 351.103(d)).
Any party submitting factual information in an antidumping or
countervailing duty proceeding must certify to the accuracy and
completeness of that information. See section 782(b) of the Act.
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials as well as their
representatives in all segments of any antidumping or countervailing
duty proceeding initiated on or after March 14, 2011. See Certification
of Factual Information to Import Administration During Antidumping and
Countervailing Duty Proceedings: Interim Final Rule, 76 FR 7491
(February 10, 2011) (Interim Final Rule), amending 19 CFR 351.303(g)(1)
and (2). The formats for the revised certifications are provided at the
end of the Interim Final Rule. The Department intends to reject factual
submissions in any proceeding segments initiated on or after March 14,
2011, if the submitting
[[Page 23564]]
party does not comply with the revised certification requirements.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: April 20, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
Appendix I--Scope of the Investigation
The merchandise covered by this investigation includes certain
steel nails having a shaft length up to 12 inches. Certain steel nails
include, but are not limited to, nails made of round wire and nails
that are cut. Certain steel nails may be of one piece construction or
constructed of two or more pieces. Certain steel nails may be produced
from any type of steel, and have a variety of finishes, heads, shanks,
point types, shaft lengths and shaft diameters. Finishes include, but
are not limited to, coating in vinyl, zinc (galvanized, whether by
electroplating or hot-dipping one or more times), phosphate cement, and
paint. Head styles include, but are not limited to, flat, projection,
cupped, oval, brad, headless, double, countersunk, and sinker. Shank
styles include, but are not limited to, smooth, barbed, screw threaded,
ring shank and fluted shank styles. Screw-threaded nails subject to
this investigation are driven using direct force and not by turning the
fastener using a tool that engages with the head. Point styles include,
but are not limited to, diamond, blunt, needle, chisel and no point.
Certain steel nails may be sold in bulk, or they may be collated into
strips or coils using materials such as plastic, paper, or wire.
Certain steel nails subject to this investigation are currently
classified under the Harmonized Tariff Schedule of the United States
(HTSUS) subheadings 7317.00.55, 7317.00.65, and 7317.00.75.
Excluded from the scope of this investigation are steel nails
specifically enumerated and identified in ASTM Standard F 1667 (2005
revision) as Type I, Style 20 nails, whether collated or in bulk, and
whether or not galvanized.
Also excluded from the scope of this investigation are the
following products:
Non-collated (i.e., hand-drive or bulk), two-piece steel
nails having plastic or steel washers (``caps'') already assembled to
the nail, having a bright or galvanized finish, a ring, fluted or
spiral shank, an actual length of 0.500'' to 8'', inclusive; an actual
shank diameter of 0.1015'' to 0.166'', inclusive; and an actual washer
or cap diameter of 0.900'' to 1.10'', inclusive;
Non-collated (i.e., hand-drive or bulk), steel nails
having a bright or galvanized finish, a smooth, barbed or ringed shank,
an actual length of 0.500'' to 4'', inclusive; an actual shank diameter
of 0.1015'' to 0.166'', inclusive; and an actual head diameter of
0.3375'' to 0.500'', inclusive, and whose packaging and packaging
marking are clearly and prominently labeled ``Roofing'' or ``Roof''
nails;
Wire collated steel nails, in coils, having a galvanized
finish, a smooth, barbed or ringed shank, an actual length of 0.500''
to 1.75'', inclusive; an actual shank diameter of 0.116'' to 0.166'',
inclusive; and an actual head diameter of 0.3375'' to 0.500'',
inclusive, and whose packaging and packaging marking are clearly and
prominently labeled ``Roofing'' or ``Roof'' nails;
Non-collated (i.e., hand-drive or bulk), steel nails
having a convex head (commonly known as an umbrella head), a smooth or
spiral shank, a galvanized finish, an actual length of 1.75'' to 3'',
inclusive; an actual shank diameter of 0.131'' to 0.152'', inclusive;
and an actual head diameter of 0.450'' to 0.813'', inclusive, and whose
packaging and packaging marking are clearly and prominently labeled
``Roofing'' or ``Roof'' nails;
Corrugated nails. A corrugated nail is made of a small
strip of corrugated steel with sharp points on one side;
Thumb tacks, which are currently classified under HTSUS
7317.00.10.00;
Fasteners suitable for use in powder-actuated hand tools,
not threaded and threaded, which are currently classified under HTSUS
7317.00.20 and 7317.00.30;
Certain steel nails that are equal to or less than 0.0720
inches in shank diameter, round or rectangular in cross section,
between 0.375 inches and 2.5 inches in length, and that are collated
with adhesive or polyester film tape backed with a heat seal adhesive;
and
Fasteners having a case hardness greater than or equal to
50 HRC, a carbon content greater than or equal to 0.5 percent, a round
head, a secondary reduced-diameter raised head section, a centered
shank, and a smooth symmetrical point, suitable for use in gas-actuated
hand tools.
While the HTSUS subheadings are provided for convenience and
customs purposes, the written description of the scope of this
investigation is dispositive.
[FR Doc. 2011-10187 Filed 4-26-11; 8:45 am]
BILLING CODE 3510-DS-P