Certain Steel Threaded Rod From the People's Republic of China: Initiation of Anti-Circumvention Inquiry, 473-474 [2011-33768]
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Federal Register / Vol. 77, No. 3 / Thursday, January 5, 2012 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–932]
Certain Steel Threaded Rod From the
People’s Republic of China: Initiation
of Anti-Circumvention Inquiry
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from
Vulcan Threaded Products Inc.
(‘‘Petitioner’’), the Department of
Commerce (the ‘‘Department’’) is
initiating an anti-circumvention inquiry
to determine whether certain imports
are circumventing the antidumping duty
order on certain steel threaded rod from
the People’s Republic of China
(‘‘PRC’’).1
DATES: Effective Date: January 5, 2012.
FOR FURTHER INFORMATION CONTACT: Toni
Dach, AD/CVD Operations, Office 9,
Import Administration, International
Trade Administration, U.S. Department
of Commerce, 14th Street and
Constitution Avenue NW., Washington,
DC 20230; telephone: (202) 482–1655.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On November 17, 2011, pursuant to
section 781(c) of the Tariff Act of 1930,
as amended (the ‘‘Act’’), and 19 CFR
351.225(i), Petitioner submitted a
request for the Department to initiate an
anti-circumvention inquiry of Gem-Year
Industrial Co., Ltd. (‘‘Gem-Year’’) to
determine whether double-arming bolts
(‘‘DA bolts’’), a type of steel threaded
rod produced in the PRC containing
more than 1.25 percent chromium, are
circumventing the Steel Threaded Rod
Order.2 In its request, Petitioner
contends that Gem-Year’s higherchromium DA bolts are of the same
class or kind as the merchandise
covered by the Steel Threaded Rod
Order, and the addition of small
amounts of chromium above the 1.25
percent threshold in the scope of the
order is a minor alteration that
constitutes circumvention.
emcdonald on DSK5VPTVN1PROD with NOTICES
Scope of the Order
The merchandise covered by the order
is steel threaded rod. Steel threaded rod
is certain threaded rod, bar, or studs, of
carbon quality steel, having a solid,
circular cross section, of any diameter,
1 See Certain Steel Threaded Rod from the
People’s Republic of China: Notice of Antidumping
Duty Order, 74 FR 17154 (April 14, 2009) (‘‘Steel
Threaded Rod Order’’).
2 See the Petitioner’s November 17, 2011
submission (‘‘Circumvention Request’’) at 2.
VerDate Mar<15>2010
14:51 Jan 04, 2012
Jkt 226001
in any straight length, that have been
forged, turned, cold-drawn, cold-rolled,
machine straightened, or otherwise
cold-finished, and into which threaded
grooves have been applied. In addition,
the steel threaded rod, bar, or studs
subject to the order are non-headed and
threaded along greater than 25 percent
of their total length. A variety of finishes
or coatings, such as plain oil finish as
a temporary rust protectant, zinc coating
(i.e., galvanized, whether by
electroplating or hot-dipping), paint,
and other similar finishes and coatings,
may be applied to the merchandise.
Included in the scope of the order are
steel threaded rod, bar, or studs, in
which: (1) Iron predominates, by
weight, over each of the other contained
elements; (2) the carbon content is 2
percent or less, by weight; and (3) none
of the elements listed below exceeds the
quantity, by weight, respectively
indicated:
• 1.80 percent of manganese, or
• 1.50 percent of silicon, or
• 1.00 percent of copper, or
• 0.50 percent of aluminum, or
• 1.25 percent of chromium, or
• 0.30 percent of cobalt, or
• 0.40 percent of lead, or
• 1.25 percent of nickel, or
• 0.30 percent of tungsten, or
• 0.012 percent of boron, or
• 0.10 percent of molybdenum, or
• 0.10 percent of niobium, or
• 0.41 percent of titanium, or
• 0.15 percent of vanadium, or
• 0.15 percent of zirconium.
Steel threaded rod is currently
classifiable under subheading
7318.15.5050, 7318.15.5090, and
7318.15.2095 of the United States
Harmonized Tariff Schedule
(‘‘HTSUS’’). Although the HTSUS
subheading is provided for convenience
and customs purposes, the written
description of the merchandise is
dispositive.
Excluded from the scope of the order
are: (a) Threaded rod, bar, or studs
which are threaded only on one or both
ends and the threading covers 25
percent or less of the total length; and
(b) threaded rod, bar, or studs made to
American Society for Testing and
Materials (‘‘ASTM’’) A193 Grade B7,
ASTM A193 Grade B7M, ASTM A193
Grade B16, or ASTM A320 Grade L7.
Prior Scope Ruling
Among previous scope rulings
concerning the Steel Threaded Rod
Order, the Department on September 10,
2010, responded to a request for a scope
ruling by Hubbell Power Systems, Inc.
and determined that DA bolts meeting
the description of the scope are within
PO 00000
Frm 00004
Fmt 4703
Sfmt 4703
473
the scope of the Steel Threaded Rod
Order.3
Merchandise Subject to the Minor
Alterations Antidumping
Circumvention Inquiry
The merchandise subject to this
antidumping circumvention inquiry
consists of steel threaded rod from the
PRC produced by Gem-Year containing
greater than 1.25 percent chromium, by
weight, and otherwise meeting the
requirements of the scope of the Steel
Threaded Rod Order as listed under the
‘‘Scope of the Order’’ section above.
Initiation of Minor Alterations
Antidumping Circumvention
Proceeding
Section 781(c)(1) of the Act provides
that the Department may find
circumvention of an antidumping duty
order when products which are of the
class or kind of merchandise subject to
an antidumping duty order have been
‘‘altered in form or appearance in minor
respects * * * whether or not included
in the same tariff classification.’’ The
Department notes that, while the statute
is silent as to what factors to consider
in determining whether alterations are
properly considered ‘‘minor,’’ the
legislative history of this provision
indicates there are certain factors which
should be considered before reaching a
circumvention determination. In
conducting a circumvention inquiry
under section 781(c) of the Act, the
Department has generally relied upon
‘‘such criteria as the overall physical
characteristics of the merchandise, the
expectations of the ultimate users, the
use of the merchandise, the channels of
marketing and the cost of any
modification relative to the total value
of the imported products.’’ 4
Overall Physical Characteristics
Petitioner maintains that steel
threaded rod with the addition of
chromium is produced in the same
manner and to the same specifications
as subject steel threaded rod.5 Petitioner
provides a declaration supporting these
claims in its Circumvention Request.6
Expectations of the Ultimate Users
Petitioner indicates that it is unaware
of any instances where customers would
3 See Notice of Scope Rulings, 76 FR 10558,
10559 (February 25, 2011).
4 See S. Rep. No.71, 100th Cong., 1st Sess. 100
(1987) (‘‘In applying this provision, the Commerce
Department should apply practical measurements
regarding minor alterations, so that circumvention
can be dealt with effectively, even where such
alterations to an article technically transform it into
a differently designated article.’’).
5 See Circumvention Request at 16.
6 Id. at 16–17.
E:\FR\FM\05JAN1.SGM
05JAN1
474
Federal Register / Vol. 77, No. 3 / Thursday, January 5, 2012 / Notices
expect or request steel threaded rod
with small amounts of chromium
added, other than to circumvent the
order.7 Petitioner argues that the
applicable standard for DA bolts does
not address the chemistry of the steel,
focusing instead on basic dimensions,
zinc coating, and tensile strength, none
of which are affected by the additional
amounts of chromium.8
Use of the Merchandise
Petitioner states that the uses of DA
bolts, i.e., fasteners in the utility
industry, are typical applications of
steel threaded rod.9
Channels of Marketing
Petitioner states that the channels of
marketing for the chromium-added DA
bolts and the subject steel threaded rod
are the same, noting that both products
are marketed through distributors.10
Cost of Modification
Petitioner indicates that the addition
of small amounts of chromium involves
minimal additional cost compared to
the overall costs of the merchandise in
question.11
Circumstances Under Which the
Subject Products Entered the United
States
Petitioner argues that entry summary
information indicates that the additional
chromium was added to deliberately
avoid antidumping duties. Petitioner
points to documents contained in the
entry summary for Gem-Year’s entries of
higher-chromium DA bolts to support
its claim that the chromium content of
the DA bolts was manipulated in an
attempt to circumvent the order.12
Because Gem-Year’s merchandise would
be subject to the PRC-wide deposit rate
of 206.00 percent, Petitioner asserts that
Gem-Year and its customers have a
strong financial incentive to avoid
paying antidumping duties.13
Timing of the Entries
emcdonald on DSK5VPTVN1PROD with NOTICES
Petitioner asserts that the addition of
chromium after the issuance of the Steel
Threaded Rod Order and the
Department’s determination in the
related scope request concerning DA
bolts indicates that this addition of
chromium is an attempt to circumvent
the Steel Threaded Rod Order.14
7 Id.
at 17.
8 Id.
9 Id.
at 19.
Dated: December 22, 2011.
Christian Marsh,
Acting Assistant Secretary for Import
Administration.
[FR Doc. 2011–33768 Filed 1–4–12; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XA892
2012 Annual Determination for Sea
Turtle Observer Requirement
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice.
AGENCY:
The National Marine
Fisheries Service (NMFS) is providing
notification that the agency will not
identify additional fisheries to observe
on the Annual Determination (AD) for
SUMMARY:
10 Id.
11 Id.
12 Id.
at 19–20.
at 20.
14 Id. at 20.
13 Id.
VerDate Mar<15>2010
Based on the information provided by
Petitioner, the Department finds there is
sufficient basis to initiate an
antidumping anti-circumvention
inquiry, pursuant to section 781(c) of
the Act, to determine whether the
merchandise subject to the inquiry
(identified in the ‘‘Merchandise Subject
to the Minor Alterations Antidumping
Circumvention Inquiry’’ section above)
involves a minor alteration to subject
merchandise that is so insignificant as
to render the resulting merchandise
subject to the Steel Threaded Rod
Order.
The Department will not order the
suspension of liquidation of entries of
any additional merchandise at this time.
However, in accordance with 19 CFR
351.225(l)(2), if the Department issues a
preliminary affirmative determination,
we will then instruct U.S. Customs and
Border Protection to suspend
liquidation and require a cash deposit of
estimated duties, at the applicable rate,
for each unliquidated entry of the
merchandise at issue, entered or
withdrawn from warehouse for
consumption on or after the date of
initiation of the inquiry.
The Department will, following
consultation with interested parties,
establish a schedule for questionnaires
and comments on the issues. The
Department intends to issue its final
determination within 300 days of the
date of publication of this initiation
notice.
This notice is published in
accordance with sections 781(c) of the
Act and 19 CFR 351.225(i).
14:51 Jan 04, 2012
Jkt 226001
PO 00000
Frm 00005
Fmt 4703
Sfmt 4703
2012, pursuant to its authority under the
Endangered Species Act (ESA). Through
an AD, NMFS identifies fisheries
operating in the Atlantic Ocean, Gulf of
Mexico, and Pacific Ocean that will be
required to take observers upon NMFS’
request. The purpose of observing
identified fisheries is to learn more
about sea turtle interactions in a given
fishery, evaluate existing measures to
prevent or reduce prohibited sea turtle
takes, and to determine whether
additional measures to implement the
prohibition against sea turtle takes may
be necessary. Fisheries identified in the
2010 AD (see Table 1) remain on the AD
and are therefore required to carry
observers upon NMFS’ request, until
2014.
ADDRESSES: See SUPPLEMENTARY
INFORMATION for a listing of all Regional
Offices.
FOR FURTHER INFORMATION CONTACT:
Kristy Long, Office of Protected
Resources, (301) 713–2322; Ellen Keane,
Northeast Region, (978) 282–8476;
Dennis Klemm, Southeast Region, (727)
824–5312; Elizabeth Petras, Southwest
Region, (562) 980–3238; Kim Maison,
Pacific Islands Region, (808) 944–2257.
Individuals who use a
telecommunications device for the
hearing impaired may call the Federal
Information Relay Service at 1-(800)
877–8339 between 8 a.m. and 4 p.m.
Eastern time, Monday through Friday,
excluding Federal holidays.
SUPPLEMENTARY INFORMATION:
Availability of Published Materials
Information regarding the Sea Turtle
Observer Requirement for Fisheries (72
FR 43176, August 3, 2007) may be
obtained at www.nmfs.noaa.gov/pr/
species/turtles/regulations.htm or from
any NMFS Regional Office at the
addresses listed below:
Æ NMFS, Northeast Region, 55 Great
Republic Drive, Gloucester, MA 01930–
2298;
Æ NMFS, Southeast Region, 263 13th
Avenue South, St. Petersburg, FL 33701;
Æ NMFS, Southwest Region, 501 W.
Ocean Blvd., Suite 4200, Long Beach,
CA 90802–4213; or
Æ NMFS, Pacific Islands Region,
Protected Resources, 1601 Kapiolani
Boulevard, Suite 1100, Honolulu, HI
96814–4700.
Purpose of the Sea Turtle Observer
Requirement
Under the ESA, 16 U.S.C. 1531 et seq.,
NMFS has the responsibility to
implement programs to conserve marine
life listed as endangered or threatened.
All sea turtles found in U.S. waters are
listed as either endangered or
E:\FR\FM\05JAN1.SGM
05JAN1
]]>Agencies
[Federal Register Volume 77, Number 3 (Thursday, January 5, 2012)]
[Notices]
[Pages 473-474]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-33768]
[[Page 473]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-932]
Certain Steel Threaded Rod From the People's Republic of China:
Initiation of Anti-Circumvention Inquiry
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Vulcan Threaded Products Inc.
(``Petitioner''), the Department of Commerce (the ``Department'') is
initiating an anti-circumvention inquiry to determine whether certain
imports are circumventing the antidumping duty order on certain steel
threaded rod from the People's Republic of China (``PRC'').\1\
---------------------------------------------------------------------------
\1\ See Certain Steel Threaded Rod from the People's Republic of
China: Notice of Antidumping Duty Order, 74 FR 17154 (April 14,
2009) (``Steel Threaded Rod Order'').
---------------------------------------------------------------------------
DATES: Effective Date: January 5, 2012.
FOR FURTHER INFORMATION CONTACT: Toni Dach, AD/CVD Operations, Office
9, Import Administration, International Trade Administration, U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230; telephone: (202) 482-1655.
SUPPLEMENTARY INFORMATION:
Background
On November 17, 2011, pursuant to section 781(c) of the Tariff Act
of 1930, as amended (the ``Act''), and 19 CFR 351.225(i), Petitioner
submitted a request for the Department to initiate an anti-
circumvention inquiry of Gem-Year Industrial Co., Ltd. (``Gem-Year'')
to determine whether double-arming bolts (``DA bolts''), a type of
steel threaded rod produced in the PRC containing more than 1.25
percent chromium, are circumventing the Steel Threaded Rod Order.\2\ In
its request, Petitioner contends that Gem-Year's higher-chromium DA
bolts are of the same class or kind as the merchandise covered by the
Steel Threaded Rod Order, and the addition of small amounts of chromium
above the 1.25 percent threshold in the scope of the order is a minor
alteration that constitutes circumvention.
---------------------------------------------------------------------------
\2\ See the Petitioner's November 17, 2011 submission
(``Circumvention Request'') at 2.
---------------------------------------------------------------------------
Scope of the Order
The merchandise covered by the order is steel threaded rod. Steel
threaded rod is certain threaded rod, bar, or studs, of carbon quality
steel, having a solid, circular cross section, of any diameter, in any
straight length, that have been forged, turned, cold-drawn, cold-
rolled, machine straightened, or otherwise cold-finished, and into
which threaded grooves have been applied. In addition, the steel
threaded rod, bar, or studs subject to the order are non-headed and
threaded along greater than 25 percent of their total length. A variety
of finishes or coatings, such as plain oil finish as a temporary rust
protectant, zinc coating (i.e., galvanized, whether by electroplating
or hot-dipping), paint, and other similar finishes and coatings, may be
applied to the merchandise.
Included in the scope of the order are steel threaded rod, bar, or
studs, in which: (1) Iron predominates, by weight, over each of the
other contained elements; (2) the carbon content is 2 percent or less,
by weight; and (3) none of the elements listed below exceeds the
quantity, by weight, respectively indicated:
1.80 percent of manganese, or
1.50 percent of silicon, or
1.00 percent of copper, or
0.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
1.25 percent of nickel, or
0.30 percent of tungsten, or
0.012 percent of boron, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.41 percent of titanium, or
0.15 percent of vanadium, or
0.15 percent of zirconium.
Steel threaded rod is currently classifiable under subheading
7318.15.5050, 7318.15.5090, and 7318.15.2095 of the United States
Harmonized Tariff Schedule (``HTSUS''). Although the HTSUS subheading
is provided for convenience and customs purposes, the written
description of the merchandise is dispositive.
Excluded from the scope of the order are: (a) Threaded rod, bar, or
studs which are threaded only on one or both ends and the threading
covers 25 percent or less of the total length; and (b) threaded rod,
bar, or studs made to American Society for Testing and Materials
(``ASTM'') A193 Grade B7, ASTM A193 Grade B7M, ASTM A193 Grade B16, or
ASTM A320 Grade L7.
Prior Scope Ruling
Among previous scope rulings concerning the Steel Threaded Rod
Order, the Department on September 10, 2010, responded to a request for
a scope ruling by Hubbell Power Systems, Inc. and determined that DA
bolts meeting the description of the scope are within the scope of the
Steel Threaded Rod Order.\3\
---------------------------------------------------------------------------
\3\ See Notice of Scope Rulings, 76 FR 10558, 10559 (February
25, 2011).
---------------------------------------------------------------------------
Merchandise Subject to the Minor Alterations Antidumping Circumvention
Inquiry
The merchandise subject to this antidumping circumvention inquiry
consists of steel threaded rod from the PRC produced by Gem-Year
containing greater than 1.25 percent chromium, by weight, and otherwise
meeting the requirements of the scope of the Steel Threaded Rod Order
as listed under the ``Scope of the Order'' section above.
Initiation of Minor Alterations Antidumping Circumvention Proceeding
Section 781(c)(1) of the Act provides that the Department may find
circumvention of an antidumping duty order when products which are of
the class or kind of merchandise subject to an antidumping duty order
have been ``altered in form or appearance in minor respects * * *
whether or not included in the same tariff classification.'' The
Department notes that, while the statute is silent as to what factors
to consider in determining whether alterations are properly considered
``minor,'' the legislative history of this provision indicates there
are certain factors which should be considered before reaching a
circumvention determination. In conducting a circumvention inquiry
under section 781(c) of the Act, the Department has generally relied
upon ``such criteria as the overall physical characteristics of the
merchandise, the expectations of the ultimate users, the use of the
merchandise, the channels of marketing and the cost of any modification
relative to the total value of the imported products.'' \4\
---------------------------------------------------------------------------
\4\ See S. Rep. No.71, 100th Cong., 1st Sess. 100 (1987) (``In
applying this provision, the Commerce Department should apply
practical measurements regarding minor alterations, so that
circumvention can be dealt with effectively, even where such
alterations to an article technically transform it into a
differently designated article.'').
---------------------------------------------------------------------------
Overall Physical Characteristics
Petitioner maintains that steel threaded rod with the addition of
chromium is produced in the same manner and to the same specifications
as subject steel threaded rod.\5\ Petitioner provides a declaration
supporting these claims in its Circumvention Request.\6\
---------------------------------------------------------------------------
\5\ See Circumvention Request at 16.
\6\ Id. at 16-17.
---------------------------------------------------------------------------
Expectations of the Ultimate Users
Petitioner indicates that it is unaware of any instances where
customers would
[[Page 474]]
expect or request steel threaded rod with small amounts of chromium
added, other than to circumvent the order.\7\ Petitioner argues that
the applicable standard for DA bolts does not address the chemistry of
the steel, focusing instead on basic dimensions, zinc coating, and
tensile strength, none of which are affected by the additional amounts
of chromium.\8\
---------------------------------------------------------------------------
\7\ Id. at 17.
\8\ Id.
---------------------------------------------------------------------------
Use of the Merchandise
Petitioner states that the uses of DA bolts, i.e., fasteners in the
utility industry, are typical applications of steel threaded rod.\9\
---------------------------------------------------------------------------
\9\ Id. at 19.
---------------------------------------------------------------------------
Channels of Marketing
Petitioner states that the channels of marketing for the chromium-
added DA bolts and the subject steel threaded rod are the same, noting
that both products are marketed through distributors.\10\
---------------------------------------------------------------------------
\10\ Id.
---------------------------------------------------------------------------
Cost of Modification
Petitioner indicates that the addition of small amounts of chromium
involves minimal additional cost compared to the overall costs of the
merchandise in question.\11\
---------------------------------------------------------------------------
\11\ Id.
---------------------------------------------------------------------------
Circumstances Under Which the Subject Products Entered the United
States
Petitioner argues that entry summary information indicates that the
additional chromium was added to deliberately avoid antidumping duties.
Petitioner points to documents contained in the entry summary for Gem-
Year's entries of higher-chromium DA bolts to support its claim that
the chromium content of the DA bolts was manipulated in an attempt to
circumvent the order.\12\ Because Gem-Year's merchandise would be
subject to the PRC-wide deposit rate of 206.00 percent, Petitioner
asserts that Gem-Year and its customers have a strong financial
incentive to avoid paying antidumping duties.\13\
---------------------------------------------------------------------------
\12\ Id. at 19-20.
\13\ Id. at 20.
---------------------------------------------------------------------------
Timing of the Entries
Petitioner asserts that the addition of chromium after the issuance
of the Steel Threaded Rod Order and the Department's determination in
the related scope request concerning DA bolts indicates that this
addition of chromium is an attempt to circumvent the Steel Threaded Rod
Order.\14\
---------------------------------------------------------------------------
\14\ Id. at 20.
---------------------------------------------------------------------------
Based on the information provided by Petitioner, the Department
finds there is sufficient basis to initiate an antidumping anti-
circumvention inquiry, pursuant to section 781(c) of the Act, to
determine whether the merchandise subject to the inquiry (identified in
the ``Merchandise Subject to the Minor Alterations Antidumping
Circumvention Inquiry'' section above) involves a minor alteration to
subject merchandise that is so insignificant as to render the resulting
merchandise subject to the Steel Threaded Rod Order.
The Department will not order the suspension of liquidation of
entries of any additional merchandise at this time. However, in
accordance with 19 CFR 351.225(l)(2), if the Department issues a
preliminary affirmative determination, we will then instruct U.S.
Customs and Border Protection to suspend liquidation and require a cash
deposit of estimated duties, at the applicable rate, for each
unliquidated entry of the merchandise at issue, entered or withdrawn
from warehouse for consumption on or after the date of initiation of
the inquiry.
The Department will, following consultation with interested
parties, establish a schedule for questionnaires and comments on the
issues. The Department intends to issue its final determination within
300 days of the date of publication of this initiation notice.
This notice is published in accordance with sections 781(c) of the
Act and 19 CFR 351.225(i).
Dated: December 22, 2011.
Christian Marsh,
Acting Assistant Secretary for Import Administration.
[FR Doc. 2011-33768 Filed 1-4-12; 8:45 am]
BILLING CODE 3510-DS-P
