Steel Wire Garment Hangers From the Socialist Republic of Vietnam: Initiation of Countervailing Duty Investigation, 3737-3739 [2012-1531]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 77, Number 16 (Wednesday, January 25, 2012)]
[Notices]
[Pages 3737-3739]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-1531]



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DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-813]


Steel Wire Garment Hangers From the Socialist Republic of 
Vietnam: Initiation of Countervailing Duty Investigation

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

DATES: Effective Date: January 25, 2012.

FOR FURTHER INFORMATION CONTACT: Robert Copyak or John Conniff, AD/CVD 
Operations, Office 3, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
2209 or (202) 482-1009, respectively.

SUPPLEMENTARY INFORMATION:

The Petition

    On December 29, 2011, the Department of Commerce (Department) 
received a countervailing duty (CVD) petition concerning imports of 
steel wire garment hangers from the Socialist Republic of Vietnam 
(Vietnam) filed in proper form by M&B Metal Products Company, Inc., 
Innovative Fabrication LLC/Innovative Fabrication LLC/Indy Hanger, and 
U.S. Hanger Company, LLC (collectively, Petitioners). See Petition for 
the Imposition of Antidumping Duties on Steel Wire Garment Hangers from 
Taiwan and the Social Republic of Vietnam and the Imposition of 
Countervailing Duties Against Steel Wire Garment Hangers from the 
Socialist Republic of Vietnam, dated December 29, 2011 (Petition).
    On January 5, 2012, the Department issued a questionnaire 
requesting information and clarification of certain areas of the 
general issues and CVD sections of the Petition. Based on the 
Department's requests, Petitioners filed a supplement to the Petition 
regarding the CVD section on January 9, 2012, and the general issues on 
January 10, 2012.
    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), Petitioners allege that producers/exporters of steel 
wire garment hangers from Vietnam received countervailable subsidies 
within the meaning of sections 701 and 771(5) of the Act, and that 
imports from these producers/exporters materially injure, and threaten 
further material injury to, an industry in the United States.
    The Department finds that Petitioners filed the Petition on behalf 
of the domestic industry because Petitioners are interested parties, as 
defined in section 771(9)(C) of the Act, and have demonstrated 
sufficient industry support with respect to the investigation that it 
requests the Department to initiate. See ``Determination of Industry 
Support for the Petition,'' below.

Period of Investigation

    The period of investigation (POI) is January 1, 2011, through 
December 31, 2011.

Scope of the Investigation

    The products covered by this investigation are steel wire garment 
hangers from Vietnam. For a full description of the scope of the 
investigation, see the ``Scope of the Investigation,'' in Appendix I of 
this notice.

Comments on Scope of the Investigation

    During our review of the Petition, we discussed the scope with 
Petitioners to ensure that it is an accurate reflection of the products 
for which the domestic industry is seeking relief. Petitioners 
submitted revised scope language on January 11, 2011.
    As discussed in the preamble to the regulations, we are setting 
aside a period for interested parties to raise issues regarding product 
coverage. See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997). The Department encourages interested parties to 
submit such comments by February 7, 2012, which is twenty calendar days 
from the signature date of this notice. All comments must be filed on 
the records of both the antidumping duty (AD) and CVD investigations. 
Comments must be filed electronically through Import Administration's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (IA ACCESS), https://iaaccess.trade.gov, in accordance with 19 
CFR 351.303. See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011). 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.

Consultations

    Pursuant to section 702(b)(4)(A)(ii) of the Act, on January 3, 
2012, the Department invited representatives of the Government of 
Vietnam (GOV) for consultations with respect to the CVD Petition. On 
January 10, 2012, the Department held consultations with 
representatives of the GOV. See Memorandum to the File, regarding 
``Consultations with Officials from the Government of Vietnam on the 
Countervailing Duty Petition Regarding Steel Wire Garment Hangers,'' 
dated January 11, 2012 (Consultations Memorandum).

Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A); or (ii) determine industry support using a 
statistically valid sampling method 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 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

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(CIT 1988)), aff'd 865 F.2d 240 (Fed. Cir. 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, Petitioners do not offer 
a definition of domestic like product distinct from the scope of the 
investigation. Based on our analysis of the information submitted on 
the record, we have determined that steel wire garment hangers 
constitute a single domestic like product and we have analyzed industry 
support in terms of that domestic like product. For a discussion of the 
domestic like product analysis in this case, see Countervailing Duty 
Investigation Initiation Checklist: Steel Wire Garment Hangers from 
Vietnam (Vietnam CVD Checklist) at Attachment II, on file 
electronically in the Central Records Unit via IA ACCESS.
    In determining whether Petitioners have standing under section 
702(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,'' in Appendix I of this 
notice. To establish industry support, Petitioners provided their 
production of the domestic like product in 2010, and compared their 
shipments to the estimated total production of the domestic like 
product for the entire domestic industry. To estimate total 2010 
production of the domestic like product, Petitioners used their own 
data and industry specific knowledge. We have relied upon data 
Petitioners provided for purposes of measuring industry support. For 
further discussion, see Vietnam CVD Checklist at Attachment II.
    Our review of the information provided in the Petition, 
supplemental submissions, and other information readily available to 
the Department indicates that Petitioners have 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 702(c)(4)(D) of the Act; see also 
Vietnam CVD Checklist at Attachment II. Second, the domestic producers 
(or workers) have met the statutory criteria for industry support under 
section 702(c)(4)(A)(i) of the Act because the domestic producers (or 
workers) who support the Petition account for at least 25 percent of 
the total production of the domestic like product. See Vietnam CVD 
Checklist at Attachment II. Finally, the domestic producers (or 
workers) have met the statutory criteria for industry support under 
section 702(c)(4)(A)(ii) of the Act because the domestic producers (or 
workers) who support the Petition account for more than 50 percent of 
the shipments of the domestic like product produced by that portion of 
the industry expressing support for, or opposition to, the Petition. 
See Vietnam CVD Checklist at Attachment II. Accordingly, the Department 
determines that the Petition was filed on behalf of the domestic 
industry within the meaning of section 702(b)(1) of the Act. See 
Vietnam CVD Checklist at Attachment II.
    The Department finds that Petitioners filed the Petition on behalf 
of the domestic industry because they are interested parties as defined 
in section 771(9)(C) of the Act and they have demonstrated sufficient 
industry support with respect to the countervailing duty investigation 
they are requesting the Department initiate. See Vietnam CVD Checklist 
at Attachment II.

Injury Test

    Because Vietnam is a ``Subsidies Agreement country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from Vietnam materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    Petitioners allege that imports of the subject merchandise are 
benefitting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, Petitioners allege 
that subject imports exceed the negligibility threshold provided for 
under section 771(24)(A) of the Act.
    Petitioners contend that the industry's injured condition is 
illustrated by reduced market share, reduced shipments, reduced 
capacity, underselling and price depression or suppression, a decline 
in financial performance, lost sales and revenue, an increase in import 
penetration, and threat of future injury. See Vietnam CVD Initiation 
Checklist at Attachment III, Analysis of Allegations and Evidence of 
Material Injury and Causation for the Petition Covering Steel Wire 
Garment Hangers from Taiwan and Vietnam. We have assessed the 
allegations and supporting evidence regarding material injury, threat 
of material injury, and causation, and we have determined that these 
allegations are properly supported by adequate evidence and meet the 
statutory requirements for initiation. See Vietnam CVD Initiation 
Checklist at Attachment III.

Initiation of Countervailing Duty Investigation

    Section 702(b)(i) of the Act requires the Department to initiate a 
CVD proceeding whenever an interested party files a petition on behalf 
of an industry that: (1) Alleges the elements necessary for an 
imposition of a duty under section 701(a) of the Act; and (2) is 
accompanied by information reasonably available to the petitioner(s) 
supporting the allegations. The Department has examined the CVD 
Petition on garment hangers from Vietnam and finds that it complies 
with the requirements of section 702(b) of the Act. Therefore, in 
accordance with section 702(b) of the Act, we are initiating a CVD 
investigation to determine whether manufacturers, producers, or 
exporters of garment hangers in Vietnam receive countervailable 
subsidies. For a discussion of evidence supporting our initiation 
determination, see Initiation Checklist.
    We are including in our investigation the following programs 
alleged in the Petition to have provided countervailable subsidies to 
producers and exporters of the subject merchandise in Vietnam:

Loan Program

     Preferential Lending to Exporters

Provision of Goods or Services for Less Than Adequate Remuneration 
(LTAR)

     Land Rent Reduction/Exemption for Foreign Invested 
Enterprises (FIEs)
     Land Rent Reduction/Exemption for Exporters
     Land Preferences for Enterprises in Encouraged Industries 
or Industrial Zones
     Provision of Water for LTAR in Industrial Zones
     Provision of Wire Rod for LTAR

Grant Program

     Grants under the Export Promotion Program

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Tax Programs

     Income Tax Preferences for FIEs
     Income Tax Preferences for Enterprises in Industrial Zones
     Income Tax Refund for Reinvestment By FIEs
     Import Duty Exemptions on Imports of Goods for Encouraged 
Projects
     Import Duty Exemptions for Raw Materials for Exported 
Goods
     Import Duty Preferences for FIEs, Including Goods to 
Create Fixed Assets & Raw Materials \1\
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    \1\ Initially, Petitioners separately alleged the following 
three programs, Import Duty Preferences for FIEs, Import Duty 
Exemptions for FIEs Using Imported Goods to Create Fixed Assets, and 
Import Duty Exemption on Raw Materials for FIEs Operating in 
Designated Areas. In their January 9, 2012, filing Petitioners 
subsumed the two latter programs into the Import Duty Preferences 
for FIEs program.
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    For a description of each of these programs, see the Petition. For 
discussion of the Department's decision to initiate an investigation of 
these programs, see Initiation Checklist.

Respondent Selection

    For this investigation, the Department expects to select 
respondents based on U.S. Customs and Border Protection (CBP) data for 
U.S. imports during the POI. We intend to make our decision regarding 
respondent selection within 20 days of publication of this Federal 
Register notice. The Department will release CBP data under 
Administrative Protective Order shortly after the signature date of 
this notice. The Department invites comments regarding the CBP data and 
respondent selection to be submitted to the Department within seven 
calendar days of publication of this Federal Register notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to representatives of the GOV. Because of the large number of 
producers/exporters identified in the Petition, the Department 
considers the service of the public version of the Petition to the 
foreign producers/exporters satisfied by the delivery of the public 
version to the GOV, consistent with 19 CFR 351.203(c)(2).

ITC Notification

    We have notified the ITC of our initiation, as required by section 
702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of subsidized garment hangers from Vietnam are 
causing material injury, or threatening to cause material injury, to a 
U.S. industry. See section 703(a)(2) of the Act. A negative ITC 
determination will result in the investigation being terminated; 
otherwise, the investigation will proceed according to statutory and 
regulatory time limits.

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
administrative protective orders 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 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 
antidumping duty or countervailing duty 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 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. See also Certification of Factual Information To Import 
Administration During Antidumping and Countervailing Duty Proceedings: 
Supplemental Interim Final Rule, 76 FR 54697 (September 2, 2011). 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: January 18, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix I--Scope of the Investigation

    The merchandise subject to the investigation is steel wire 
garment hangers, fabricated from carbon steel wire, whether or not 
galvanized or painted, whether or not coated with latex or epoxy or 
similar gripping materials, and/or whether or not fashioned with 
paper covers or capes (with or without printing) and/or nonslip 
features such as saddles or tubes. These products may also be 
referred to by a commercial designation, such as shirt, suit, strut, 
caped, or latex (industrial) hangers.
    Specifically excluded from the scope of the investigation are 
(a) wooden, plastic, and other garment hangers that are not made of 
steel wire; (b) steel wire garment hangers with swivel hooks; (c) 
steel wire garment hangers with clips permanently affixed; and (d) 
chrome-plated steel wire garment hangers with a diameter of 3.4mm or 
greater.
    The products subject to the investigation are currently 
classified under U.S. Harmonized Tariff Schedule (``HTSUS'') 
subheadings 7326.20.0020 and 7323.99.9080. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise is dispositive.

[FR Doc. 2012-1531 Filed 1-24-12; 8:45 am]
BILLING CODE 3510-DS-P