Galvanized Steel Wire From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 17418-17422 [2012-7214]

Download as PDF 17418 Federal Register / Vol. 77, No. 58 / Monday, March 26, 2012 / Notices ITC Notification In accordance with section 735(d) of the Act, we have notified the ITC of our final determination. As our final determination is affirmative, the ITC will determine within 45 days whether imports of the subject merchandise are causing material injury, or threat of material injury, to an industry in the United States. If the ITC determines that material injury or threat of injury does not exist, the proceeding will be terminated and all securities posted will be refunded or canceled. If the ITC determines that such injury does exist, the Department will issue an antidumping duty order directing CBP to assess antidumping duties on all imports of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation. Return or Destruction of Proprietary Information This notice will serve as the only reminder to parties subject to administrative protective order (APO) of their responsibility concerning the destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of return/ destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation. We are issuing and publishing this determination and notice in accordance with sections 735(d) and 777(i) of the Act. Dated: March 16, 2012. Paul Piquado, Assistant Secretary for Import Administration. 12. LG’s U.S. Lump Sum and Sell-Out Rebates 13. LG’s Non-Product-Specific Accruals for U.S. Rebates 14. LG’s U.S. Freight Expenses 15. LG’s U.S. Indirect Selling Expenses 16. LG’s U.S. Inventory Carrying Costs 17. LG’s Materials Purchased from Affiliated Parties 18. LG’s Research and Development (R&D) Expenses Samsung 19. Critical Circumstances 20. Use of Total Adverse Facts Available (AFA) for Samsung 21. Samsung’s Early Payment Discounts in the Home Market 22. Samsung’s Home Market Rebates on Discontinued Models and Kimchi Refrigerators 23. Samsung’s Remaining Home Market Rebates 24. Samsung’s Home Market Advertising Expenses 25. Samsung’s Home Market Warranty Expenses 26. Corrections Presented at the Start of Samsung’s Sales Verifications 27. Samsung’s U.S. Rebates 28. Treatment of Payments for Defective Samsung Merchandise 29. The Denominator of Various Expense Calculations for Samsung 30. Samsung’s U.S. Credit Periods 31. Samsung’s U.S. Interest Rate 32. Samsung’s U.S. Indirect Selling Expenses 33. Classification of Certain Costs as Packaging or Packing for Samsung 34. Corrections Presented at the Start of Samsung’s Cost Verification 35. SEC’s G&A Ratio 36. Samsung’s Scrap Sales 37. Samsung’s Financing Costs 38. Samsung’s Materials Purchased from Affiliated Parties 39. Samsung’s R&D Expenses [FR Doc. 2012–7237 Filed 3–23–12; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE Appendix—Issues in Decision Memorandum International Trade Administration General Issues 1. Targeted Dumping 2. Zeroing in Average-to-Transaction Comparisons 3. Adjustments to Expenses Paid to Affiliated Parties 4. Classification of Return Freight Expenses Galvanized Steel Wire From the People’s Republic of China: Final Affirmative Countervailing Duty Determination Company-Specific Issues tkelley on DSK3SPTVN1PROD with NOTICES Daewoo 5. General and Administrative Expenses for Daewoo LG 6. LG’s Corrected Control Numbers 7. LG’s Home Market Rebates 8. LG’s Home Market Advertising Expenses 9. LG’s Home Market Payment Dates 10. LG’s U.S. Payment Dates 11. LG’s U.S. Billing Adjustments VerDate Mar<15>2010 19:32 Mar 23, 2012 Jkt 226001 [C–570–976] Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (the Department) determines that countervailable subsidies are being provided to producers and exporters of galvanized steel wire (galvanized wire) from the People’s Republic of China (the PRC). For information on the estimated subsidy rates, see the ‘‘Suspension of Liquidation’’ section of this notice. DATES: Effective Date: March 26, 2012. AGENCY: PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski or David Lindgren, AD/CVD Operations, Office 6, Import Administration, U.S. Department of Commerce, Room 7866, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: 202–482–1395 or 202–482–3870, respectively. SUPPLEMENTARY INFORMATION: Background The U.S. producers that filed the petition for this investigation are Davis Wire Corporation, Johnstown Wire Technologies, Inc., Mid-South Wire Company, Inc., National Standard, LLC, and Oklahoma Steel & Wire Company, Inc. (collectively, Petitioners). This investigation covers 40 programs. The mandatory respondents in this investigation are: (1) M&M Industries Co. Ltd. (M&M); (2) Shandong Hualing Hardware and Tool Co., Ltd. (Hualing); (3) Shanghai Bao Zhang Industry Co. Ltd. and its cross-owned affiliated companies Anhui Bao Zhang Metal Products Co., Ltd. and Shanghai Li Chao Industry Co., Ltd. (collectively, the Bao Zhang Companies); and, (4) Tianjin Huayuan Metal Wire Products Co., Ltd. and its cross-owned affiliated companies Tianjin Tianxin Metal Products Co., Ltd. and Tianjin Mei Jia Hua Trade Co., Ltd. (collectively, the Huayuan Companies). Period of Investigation The period of investigation for which we are measuring subsidies is January 1, 2010, through December 31, 2010. Case History The following events have occurred since the Department published the Preliminary Determination 1 on September 6, 2011.2 The Huayuan Companies filed a ministerial error allegation on September 7, 2011, and, on September 12, 2011, Petitioners filed responses to the Huayuan Companies’ allegation. On September 29, 2011, the Department released its analysis of the ministerial error allegation, finding that no ministerial errors were made in the Preliminary Determination. Petitioners, the Huayuan Companies and the 1 See Galvanized Steel Wire From the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Determination, 76 FR 55031 (September 6, 2011) (Preliminary Determination). 2 Public versions of all business proprietary documents and all public documents are on file electronically via Import Administration’s Antidumping and Countervailing Duty Centralized Electronic Service System (IA ACCESS). Access to IA ACCESS is available in the Central Records Unit (CRU), room 7046 of the main Department of Commerce building. E:\FR\FM\26MRN1.SGM 26MRN1 tkelley on DSK3SPTVN1PROD with NOTICES Federal Register / Vol. 77, No. 58 / Monday, March 26, 2012 / Notices Government of the People’s Republic of China (GOC) filed requests for a hearing on September 14, 22 and October 6, 2011, respectively, and, on January 30, 2012, all three parties withdrew their requests for a hearing. Between September 15 and October 21, 2011, the GOC, Petitioners, the Bao Zhang Companies and the Huayuan Companies filed factual information submissions. Except for the Bao Zhang Companies’ October 21, 2011 wire rod benchmark submission, all were rejected by the Department as untimely under 19 CFR 351.301(c). The Department informed Petitioners they could re-file certain portions of their rejected material, which they did on October 31, 2011. On September 19, 2011, the Department issued supplemental questionnaires to the GOC, the Bao Zhang Companies, and the Huayuan Companies, which, in turn, submitted responses between September 28 and October 3, 2011. On October 7, 2011, the Department issued additional supplemental questionnaires to the Bao Zhang Companies and the GOC, with responses filed on October 13 and 14, 2011, respectively. Moreover, on October 14, 2011, Department issued a supplemental questionnaire to the Huayuan Companies, which filed a response on October 24, 2011. Between October 21 and November 2, 2011, the Department issued verification outlines to the GOC, the Bao Zhang Companies, the Huayuan Companies and M&M. On October 24, 2011, Petitioners filed pre-verification comments. The Department conducted verification of the Bao Zhang Companies and the GOC from October 31 to November 8, 2011. Although scheduled for verification, the Huayuan Companies and M&M verbally informed the Department on November 3, 2011 that they would not participate in verification; a letter filed on November 9, 2011 stated the reasons for their decision not to participate. The Bao Zhang Companies filed minor corrections on November 4, 2011, and on November 10 and 15, 2011, the Bao Zhang Companies and the GOC, respectively, timely filed verification exhibits. The Department issued verification reports for the Bao Zhang Companies and the GOC on December 22, 2011. With respect to scope issues, on November 2, 2011, Qingdao Ant Hardware Manufacturing Co., Ltd. (AHM) placed on the record physical samples and other information pertaining to the scope of the investigation, and, on November 16, 2011, a public viewing of the physical samples was held at the Department. On VerDate Mar<15>2010 19:32 Mar 23, 2012 Jkt 226001 December 15, 2011, the Department placed on the record of this investigation the preliminary determinations in the corresponding antidumping duty (AD) investigations of galvanized wire from the PRC and Mexico 3 in which scope comments filed prior to the preliminary countervailing duty (CVD) determination were addressed. When placing these preliminary AD determinations on the record, we requested that parties submit any comments on scope issues when they filed their case briefs.4 On January 9, 2012, the GOC requested that the Department terminate this investigation based on the U.S. Court of Appeals for the Federal Circuit December 19, 2011 ruling in GPX International Tire Corp. v. United States.5 On January 13, 2012, Petitioners filed rebuttal comments in response to the GOC’s request for termination. The Department issued a postpreliminary analysis memorandum regarding three programs on January 17, 2012.6 Interested parties submitted case briefs on January 25 and 31, 2012, and rebuttal briefs on February 6, 2012. On March 1, 2012, the Department requested all parties in all three galvanized wire investigations that filed scope comments in their case and rebuttal briefs to ensure their comments were placed on the records of all three investigations, and all parties were provided an opportunity to comment on these scope comments. No additional comments on scope issues were submitted. Scope Comments As referenced in the ‘‘Case History’’ section above, the Department placed the preliminary determinations of the companion galvanized wire AD investigations from Mexico and the PRC on the record of this investigation. In those preliminary determinations, the 3 See Galvanized Steel Wire From the People’s Republic of China: Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 76 FR 68407 (November 4, 2011); see also Galvanized Steel Wire From Mexico: Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination, 76 FR 68422 (November 4, 2011). 4 See Memorandum to File ‘‘Decisions Regarding Scope Comments from Investigations of Galvanized Steel Wire from the PRC and Mexico,’’ dated December 15, 2011. 5 See GPX Int’l Tires Corp. v. United States, 666 F.3d 732 (Fed. Cir. 2011). 6 See Memorandum to Paul Piquado, Assistant Secretary for Import Administration from Barbara E. Tillman, Director, AD/CVD Operations, Office 6, through Christian Marsh Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations ‘‘Countervailing Duty Investigation on Galvanized Steel Wire from the People’s Republic of China: Post-Preliminary Analysis Memorandum,’’ dated January 17, 2012. PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 17419 Department found that galvanized wire with a diameter less than one millimeter was subject to the scope of the investigation. We invited parties to comment on this issue. No additional comments were made on this issue. Thus, the Department continues to find, specifically, that galvanized wire with a diameter less than one millimeter but equal to or greater than 0.5842 millimeters is covered by the scope. Also, as noted in the ‘‘Case History’’ section above, all scope-related comments submitted by parties in all three investigations in their case and rebuttal briefs are on the record of all three investigations. Petitioners and AHM provided comments on the scope and merchandise that is to be covered under the scope. Based on our analysis of these comments, the Department continues to find that hobby wire, which is galvanized steel wire, in lengths of more than 15 feet, is properly included in the scope of this investigation.7 Further, certain parties in the companion AD investigation involving Mexico provided comments on the scope and merchandise that is to be covered under the scope. Based on our analysis of these comments, the Department has clarified the scope language to include not only circular cross section material, but also out-ofround material that meets the circular tolerances. In addition, the Department has included an additional HTSUS subheading as part of the scope description.8 Scope of Investigation The merchandise covered by this investigation is galvanized steel wire. See Appendix I for a complete description of the scope of this investigation. Analysis of Subsidy Programs and Comments Received The subsidy programs under investigation and the issues raised in the case and rebuttal briefs by parties in this investigation are discussed in Memorandum to Paul Piquado, Assistant Secretary for Import Administration, Issues and Decision Memorandum for the Final 7 AMH’s and Petitioners comments on the scope of the investigation are fully addressed in Galvanized Steel Wire from the People’s Republic of China: Final Determination of Sales at Less Than Fair Value and accompanying Issues and Decision Memorandum at Comment 3, issued concurrently with this final determination. 8 These comments are fully addressed in Notice of Final Determination of Sales at Less Than Fair Value: Galvanized Steel Wire from Mexico and accompanying Issues and Decision Memorandum at Comments 3 and 4, issued concurrently with this final determination. E:\FR\FM\26MRN1.SGM 26MRN1 17420 Federal Register / Vol. 77, No. 58 / Monday, March 26, 2012 / Notices Determination in the Countervailing Duty Investigation of Galvanized Steel Wire from the People’s Republic of China (Decision Memorandum), which is hereby adopted by this notice. A list of the subsidy programs and the issues that parties raised and to which we responded in the Decision Memorandum is attached to this notice as Appendix II. The Decision Memorandum is a public document, which is on file electronically via IA ACCESS. In addition, a complete version of the Decision Memorandum is also accessible on the Web at https:// ia.ita.doc.gov/frn/. The signed Decision Memorandum and the electronic versions of the Decision Memorandum are identical in content. Use of Facts Otherwise Available, Including Adverse Inferences For purposes of this final determination, we have continued to rely on facts available and have continued to apply adverse inferences in accordance with sections 776(a) and (b) of the Tariff Act of 1930, as amended (the Act) with regard to: (1) The CVD rate to be applied to the non-cooperative mandatory company respondent, Hualing; (2) whether the wire rod and zinc input producers at issue are government authorities that provide wire rod and zinc for less than adequate remuneration (LTAR); and, (3) the GOC’s provision of electricity for LTAR. In addition, for the purposes of this final determination, we are also applying adverse facts available (AFA) to (1) determine the CVD rate to be applied to the non-cooperating mandatory respondents the Huayuan Companies and M&M, and (2) determine that the Zhabei District ‘‘Save Energy Reduce Emission Team’’ award is specific pursuant to sections 776(a) and (b) of the Act. A full discussion of our decision to apply AFA is presented in the Decision Memorandum under the section ‘‘Use of Facts Otherwise Available and Adverse Inferences.’’ Suspension of Liquidation In accordance with section 703(d)(1)(A)(i) of the Act, we have calculated a rate for each individually investigated producer/exporter of the subject merchandise. Section 705(c)(5)(A)(i) of the Act states that for companies not investigated, we will determine an ‘‘all-others’’ rate equal to the weighted average countervailable subsidy rates established for exporters and producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. In this investigation, the only rate not based entirely on AFA is the rate calculated for the Bao Zhang Companies. Consequently, the rate calculated for the Bao Zhang Companies is also assigned as the ‘‘all-others’’ rate. For those non-cooperative companies that did not fully participate in this investigation, we have determined rates based solely on AFA, in accordance with sections 776(a) and (b) of the Act.9 Therefore, we determine the total estimated net countervailable subsidy rates to be: Ad Valorem net subsidy rate (percent) Company tkelley on DSK3SPTVN1PROD with NOTICES M&M Industries Co. Ltd ................................................................................................................................................................... Shandong Hualing Hardware and Tool Co., Ltd. ............................................................................................................................ Shanghai Bao Zhang Industry Co. Ltd., Anhui Bao Zhang Metal Products Co., Ltd., and Shanghai Li Chao Industry Co., Ltd. (collectively the Bao Zhang Companies) ..................................................................................................................................... Tianjin Huayuan Metal Wire Products Co., Ltd., Tianjin Tianxin Metal Products Co., Ltd., and Tianjin Mei Jia Hua Trade Co., Ltd. (collectively, the Huayuan Companies) ................................................................................................................................ All Others Rate ................................................................................................................................................................................ As a result of our Preliminary Determination and pursuant to section 703(d) of the Act, we instructed U.S. Customs and Border Protection (CBP) to suspend liquidation of all entries of subject merchandise from the PRC which were entered or withdrawn from warehouse, for consumption on or after September 6, 2011, the date of the publication of the Preliminary Determination in the Federal Register. In accordance with section 703(d) of the Act, we later issued instructions to CBP to discontinue the suspension of liquidation for CVD purposes for subject merchandise entered, or withdrawn from warehouse, on or after January 4, 2012, but to continue the suspension of liquidation of all entries from September 6, 2011, through January 3, 2012. We will issue a CVD order and reinstate the suspension of liquidation under section 706(a) of the Act if the U.S. International Trade Commission (ITC) issues a final affirmative injury determination, and will require a cash deposit of estimated CVDs for such entries of merchandise in the amounts indicated above. If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled. ITC Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. In addition, we are making available to the ITC all nonprivileged and non-proprietary information related to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided the ITC confirms that it will not disclose 19:32 Mar 23, 2012 Jkt 226001 PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 19.06 223.27 19.06 such information, either publicly or under an administrative protective order (APO), without the written consent of the Assistant Secretary for Import Administration. Return or Destruction of Proprietary Information In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to an APO of their responsibility concerning the destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return/ destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction. 9 See ‘‘Non-Cooperative Companies’’ in the ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ section of the Decision Memorandum. VerDate Mar<15>2010 223.27 223.27 E:\FR\FM\26MRN1.SGM 26MRN1 Federal Register / Vol. 77, No. 58 / Monday, March 26, 2012 / Notices This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act. Dated: March 19, 2012. Paul Piquado, Assistant Secretary for Import Administration. Appendix I Scope of Investigation The scope of this investigation covers galvanized steel wire which is a cold-drawn carbon quality steel product in coils, of circular or approximately circular, solid cross section with any actual diameter of 0.5842 mm (0.0230 inch) or more, plated or coated with zinc (whether by hot-dipping or electroplating). Steel products to be included in the scope of this investigation, regardless of Harmonized Tariff Schedule of the United States (HTSUS) definitions, are products in which: (1) iron predominates, by weight, over each of the other contained elements; (2) the carbon content is two 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 —0.02 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. Specifically excluded from the scope of this investigation is galvanized steel wire in coils of 15 feet or less which is pre-packed in individual retail packages. The products subject to this investigation are currently classified in subheadings 7217.20.30, 7217.20.45, or 7217.90.10 of the HTSUS which cover galvanized wire of all diameters and all carbon content. Galvanized wire is reported under statistical reporting numbers 7217.20.3000, 7217.20.4510, 7217.20.4520, 7217.20.4530, 7217.20.4540, 7217.20.4550, 7217.20.4560, 7217.20.4570, 7217.20.4580, and 7217.90.1000. These products may also enter under HTSUS subheadings 7229.20.0015, 7229.20.0090, 7229.90.5008, 7229.90.5016, 7229.90.5031, and 7229.90.5051. Although the HTSUS subheadings are provided for convenience and Customs purposes, the written description of the merchandise is dispositive. tkelley on DSK3SPTVN1PROD with NOTICES Appendix II Decision Memorandum I. Summary II. Subsidy Valuation Information A. Period of Investigation B. Attribution of Subsidies C. Allocation Period D. Discount Rates for Allocating NonRecurring Subsidies VerDate Mar<15>2010 19:32 Mar 23, 2012 Jkt 226001 III. Use of Facts Otherwise Available and Adverse Inferences Non-Cooperative Companies Input Producers—Government Authorities Under Provision of Wire Rod and Zinc for Less Than Adequate Remuneration GOC—Provision of Electricity for Less Than Adequate Remuneration GOC—Specificity of Zhabei District ‘‘Save Energy Reduce Emission Team’’ Award Program IV. Analysis of Programs A. Programs Determined To Be Countervailable 1. Provision of Wire Rod for Less Than Adequate Remuneration 2. Provision of Zinc for Less Than Adequate Remuneration 3. Provision of Electricity for Less Than Adequate Remuneration 4. Export Grants From Local Governments 5. Zhabei District ‘‘Save Energy Reduce Emission Team’’ Award Program B. Program Determined Not To Confer a Benefit During the POI Export Subsidies Characterized as ‘‘VAT Rebates’’ C. Program for Which the Benefit Has No Impact on the Subsidy Rate Exemption From City Construction Tax and Education Tax for Foreign Invested Enterprises D. Programs Determined To Be Not Used 1. Policy Loans to the Galvanized Wire Industry 2. Preferential Loans for Key Projects and Technologies 3. Preferential Loans and Directed Credit 4. Preferential Lending to Galvanized Wire Producers and Exporters Classified as ‘‘Honorable Enterprises’’ 5. Loans and Interest Subsidies Provided Pursuant to the Northeast Revitalization Program 6. Provision of Land Use Rights for LTAR Within the Jinzhou District Within the City of Dalian 7. Provision of Land Use Rights for LTAR to Enterprises Within the Zhaoqing HighTech Industry Development Zone in Guangdong Province 8. Provision of Land Use Rights for LTAR to Enterprises Within the South Sanshui Science and Technology Industrial Park of Foshan City 9. Income Tax Credits for DomesticallyOwned Companies Purchasing Domestically-Produced Equipment 10. Income Tax Exemption for Investment in Domestic Technological Renovation 11. Accelerated Depreciation for Enterprises Located in the Northeast Region 12. Forgiveness of Tax Arrears for Enterprises in the Old Industrial Bases of Northeast China 13. Income Tax Exemption for Investors in Designated Geographical Regions Within Liaoning Province 14. VAT Deduction on Fixed Assets 15. Import Tariff and VAT Exemptions for FIEs and Certain Domestic Enterprises Using Imported Equipment in Encouraged Industries 16. Reduction in or Exemption From Fixed Assets Investment Orientation Regulatory Tax PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 17421 17. ‘‘Five Points, One Line’’ Program of Liaoning Province 18. Provincial Export Interest Subsidies 19. State Key Technology Project Fund 20. Subsidies for Development of Famous Export Brands and China World Top Brands 21. Sub-Central Government Programs to Promote Famous Export Brands and China World Top Brands 22. Zhejiang Province Program to Rebate Antidumping Legal Fees 23. Technology to Improve Trade Research and Development Fund of Jiangsu Province 24. Outstanding Growth Private Enterprise and Small and Medium-Sized Enterprises Development in Jiangyin Fund of Jiangyin City 25. Grants for Programs Under the 2007 Science and Technology Development Plan in Shandong Province 26. Special Funds for Encouraging Foreign Economic and Trade Development and for Drawing Significant Foreign Investment Projects in Shandong Province 27. ‘‘Two Free, Three Half’’ Tax Exemptions for ‘‘Productive’’ FIEs 28. Income Tax Exemption Program for Export-Oriented FIEs 29. Local Income Tax Exemption and Reduction Programs for ‘‘Productive’’ FIEs 30. Preferential Tax Programs for FIEs Recognized as High or New Technology Enterprises 31. Income Tax Subsidies for FIEs Based on Geographic Location 32. VAT Refunds for FIEs Purchasing Domestically-Produced Equipment 33. Income Tax Credits for FIEs Purchasing Domestically-Produced Equipment V. Analysis of Comments General Issues Comment 1: Whether the Investigation Should Be Terminated Based on the GPX III Ruling Comment 2: Application of CVD Law to the PRC Comment 3: Whether Application of the CVD Law to NMEs Violates the Administrative Procedures Act (APA) Comment 4: Double Remedies Case-Specific Issues Comment 5: Whether There is a Basis for Countervailing Inputs Purchased From Input Suppliers Comment 6: Whether the Department Improperly Rejected the GOC’s September 15, 2011, Submission and Whether the Application of AFA is Warranted Comment 7: Whether the Department Improperly Rejected the Bao Zhang Companies’ September 26, 2011 Submission Comment 8: Whether the Department Should Revise Its Benchmark for Wire Rod Comment 9: Whether the Department Should Apply AFA in Selecting the Electricity Benchmark Comment 10: Whether the Bao Zhang Companies’ Additional Electricity Charges Should Be Included in the Final Determination E:\FR\FM\26MRN1.SGM 26MRN1 17422 Federal Register / Vol. 77, No. 58 / Monday, March 26, 2012 / Notices Comment 11: Whether the Department Should Apply the Same Electricity Benchmark to both ABZ and SBZ Comment 12: Application of AFA to the Huayuan Companies and M&M VI. Recommendation [FR Doc. 2012–7214 Filed 3–23–12; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–201–839] Notice of Final Determination of Sales at Less Than Fair Value and Affirmative Critical Circumstances Determination: Bottom Mount Combination Refrigerator-Freezers From Mexico Import Administration, International Trade Administration, Department of Commerce. SUMMARY: We determine that imports of bottom mount combination refrigeratorfreezers (bottom mount refrigerators) from Mexico are being, or are likely to be, sold in the United States at less than fair value (LTFV), as provided in section 735 of the Tariff Act of 1930, as amended (the Act). In addition, we determine that critical circumstances exist with respect to the subject merchandise exported from Mexico by Samsung Electronics Mexico, S.A. de C.V. (Samsung). Based on our analysis of the comments received, we made changes in the margin calculations. Therefore, the final determination differs from the preliminary determination. The final weighted-average dumping margins for the investigated companies are listed below in the section entitled ‘‘Final Determination Margins.’’ DATES: Effective Date: March 26, 2012. FOR FURTHER INFORMATION CONTACT: David Goldberger or Katherine Johnson, AD/CVD Operations, Office 2, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–4136 and (202) 482–4929, respectively. SUPPLEMENTARY INFORMATION: tkelley on DSK3SPTVN1PROD with NOTICES AGENCY: Background On November 2, 2011, the Department published in the Federal Register the preliminary determination of sales at LTFV in the antidumping duty investigation of bottom mount refrigerators from Mexico.1 Since the 1 See Notice of Preliminary Determination of Sales at Less Than Fair Value, Postponement of VerDate Mar<15>2010 19:32 Mar 23, 2012 Jkt 226001 preliminary determination, the following events have occurred. In November 2011, we issued supplemental questionnaires to, and received responses from, all four respondents: Electrolux Home Products Corp. NV/Electrolux Home Products De Mexico, S.A. de C.V. (Electrolux), LG Electronics Monterrey Mexico, S.A. de C.V. (LGEMM), Controladora Mabe, S.A. de C.V./Mabe, S.A. de C.V. (Mabe), and Samsung. Also, in November 2011, we received updated shipment information for our critical circumstances analysis from Electrolux, LGEMM, and Samsung. On December 5, 2011, Whirlpool Corporation (hereafter, the petitioner) amended its targeted dumping allegation with respect to Samsung to reflect the revised U.S. sales data submitted by Samsung in response to the Department’s November 2011, supplemental questionnaire. In November and December 2011, we verified the questionnaire responses of the four respondents in this case, in accordance with section 782(i) of the Act. In December, January and February 2012, we issued our verification findings for each respondent.2 Final Determination, and Affirmative Critical Circumstances Determination: Bottom Mount Combination Refrigerator-Freezers from Mexico, 76 FR 67688 (Nov. 2, 2011) (Preliminary Determination). 2 See Memorandum to The File entitled ‘‘Verification of the Cost Response of Electrolux Home Products, Corp. N.V. and Electrolux Home Products, Inc. (collectively ‘‘Electrolux’’) in the Antidumping Investigation of Bottom Mount. Combination Refrigerator-Freezers from Mexico,’’ dated December 22, 2011; Memorandum to The File entitled ‘‘Verification of the Sales Response of Electrolux Home Products, Corp. N.V. and Electrolux Home Products, Inc. (collectively ‘‘Electrolux’’) in the Antidumping Duty Investigation of Bottom Mount Combination Refrigerator-Freezers (BMRFs) from Mexico,’’ dated February 1, 2012; Memorandum to The File entitled ‘‘Verification of the Cost Response of LG Electronics, Inc. in the Antidumping Investigation of Bottom-Mount Combination Refrigerator-Freezers from the Republic of Korea, dated December 22, 2011; Memorandum to the File entitled ‘‘Verification of the Cost Response of LG Electronics Monterrey Mexico, S.A. de C.V. in the Antidumping Investigation of Bottom Mount Combination Refrigerator-Freezers from Mexico,’’ dated December 22, 2011; Memorandum to The File entitled ‘‘Verification of the Third Country Sales Response of LG Electronics Monterrey Mexico, S.A, de C.V, and LG Electronics Canada,’’ February 1, 2012; Memorandum to The File entitled ‘‘Verification of the U.S. Sales Response of LG Electronics Monterrey Mexico, S.A. de C.V. and LG Electronics USA, Inc.,’’ dated February 2, 2012; Memorandum to the File entitled ‘‘Verification of the Sales Response of Samsung Electronics Co., Ltd in the Less-Than-Fair-Value Investigation of Bottom-Mount Refrigerator-Freezers from Korea,’’ dated February 2, 2012; Memorandum to the File entitled ‘‘Verification of the Cost Response of Controladora Mabe S.A. de C.V. Mabe S.A. de C.V., and Leiser S. de R.L. in the Antidumping Investigation of Bottom-Mount Combination Refrigerator-Freezers from Mexico,’’ dated January 4, 2012; Memorandum to The File entitled PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 In February 2012, the Department requested, and the respondents submitted, revised U.S. and/or comparison-market sales listings to reflect certain verification findings. Also, in February 2012, the petitioner and the respondents (except for Electrolux) submitted case and rebuttal briefs. On February 22, 2012, the Government of Mexico submitted comments on certain aspects of the Department’s preliminary determination. On February 24, 2012, the Department held a hearing in this case. Subsequent to the Preliminary Determination, the Department revised the computer programs used to calculate the respondents’ dumping margins to ensure that they accurately reflected the methodological choices made in that determination. These revisions to the programming, had they been included in the preliminary determination, would not have altered the weighted-average dumping margins calculated there. See March 16, 2012, Memoranda to The File entitled ‘‘Final Determination Margin Calculation for LG Electronics Monterrey Mexico, S.A. de C.V. (LGEMM)’’ (LGEMM Calculation Memo); ‘‘Final Determination Margin Calculation for Samsung Electronics Mexico S.A. de C.V. (SEM)’’ (Samsung Calculation Memo); ‘‘Final Determination Margin Calculation for Electrolux Home Products, Corp. N.V./ Electrolux Home Products de Mexico, S.A. de C.V’’ (Electrolux Calculation Memo); and ‘‘Final Determination Margin Calculation for Controladora Mabe S.A. de C.V., Mabe S.A. de C.V., and Leiser S. de R.L. (collectively, Mabe),’’ which contain the revised preliminary antidumping duty margin program log and output for each respondent. Period of Investigation The period of investigation (POI) is January 1, 2010, through December 31, 2010. ‘‘Verification of the Sales Responses of General Electric Company,’’ dated January 13, 2012; Memorandum to The File entitled ‘‘Verification of the Sales Responses of Controladora Mabe S.A. de C.V., and Mabe S.A. de C.V. (collectively, ‘‘Mabe’’),’’ dated January 25, 2012; Memorandum to The File entitled ‘‘Verification of the Cost Response of Samsung Electronics Mexico S.A. de C.V. in the Less-Than-Fair-Value Investigation of Bottom Mount Combination Refrigerator-Freezers from Mexico’’, dated December 21, 2011; Memorandum to The File entitled ‘‘Verification of the U.S. Sales Response of Samsung Electronics Mexico, S.A. de C.V.,’’ dated January 9, 2012; and Memorandum to The File entitled ‘‘Verification of Samsung Electronics America Inc.,’’ dated January 26, 2012. E:\FR\FM\26MRN1.SGM 26MRN1

Agencies

[Federal Register Volume 77, Number 58 (Monday, March 26, 2012)]
[Notices]
[Pages 17418-17422]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-7214]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-976]


Galvanized Steel Wire From the People's Republic of China: Final 
Affirmative Countervailing Duty Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of galvanized steel wire (galvanized wire) from the People's Republic 
of China (the PRC). For information on the estimated subsidy rates, see 
the ``Suspension of Liquidation'' section of this notice.

DATES: Effective Date: March 26, 2012.

FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski or David Lindgren, 
AD/CVD Operations, Office 6, Import Administration, U.S. Department of 
Commerce, Room 7866, 14th Street and Constitution Avenue NW., 
Washington, DC 20230; telephone: 202-482-1395 or 202-482-3870, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    The U.S. producers that filed the petition for this investigation 
are Davis Wire Corporation, Johnstown Wire Technologies, Inc., Mid-
South Wire Company, Inc., National Standard, LLC, and Oklahoma Steel & 
Wire Company, Inc. (collectively, Petitioners). This investigation 
covers 40 programs. The mandatory respondents in this investigation 
are: (1) M&M Industries Co. Ltd. (M&M); (2) Shandong Hualing Hardware 
and Tool Co., Ltd. (Hualing); (3) Shanghai Bao Zhang Industry Co. Ltd. 
and its cross-owned affiliated companies Anhui Bao Zhang Metal Products 
Co., Ltd. and Shanghai Li Chao Industry Co., Ltd. (collectively, the 
Bao Zhang Companies); and, (4) Tianjin Huayuan Metal Wire Products Co., 
Ltd. and its cross-owned affiliated companies Tianjin Tianxin Metal 
Products Co., Ltd. and Tianjin Mei Jia Hua Trade Co., Ltd. 
(collectively, the Huayuan Companies).

Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2010, through December 31, 2010.

Case History

    The following events have occurred since the Department published 
the Preliminary Determination \1\ on September 6, 2011.\2\ The Huayuan 
Companies filed a ministerial error allegation on September 7, 2011, 
and, on September 12, 2011, Petitioners filed responses to the Huayuan 
Companies' allegation. On September 29, 2011, the Department released 
its analysis of the ministerial error allegation, finding that no 
ministerial errors were made in the Preliminary Determination. 
Petitioners, the Huayuan Companies and the

[[Page 17419]]

Government of the People's Republic of China (GOC) filed requests for a 
hearing on September 14, 22 and October 6, 2011, respectively, and, on 
January 30, 2012, all three parties withdrew their requests for a 
hearing.
---------------------------------------------------------------------------

    \1\ See Galvanized Steel Wire From the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination With Final Antidumping 
Determination, 76 FR 55031 (September 6, 2011) (Preliminary 
Determination).
    \2\ Public versions of all business proprietary documents and 
all public documents are on file electronically via Import 
Administration's Antidumping and Countervailing Duty Centralized 
Electronic Service System (IA ACCESS). Access to IA ACCESS is 
available in the Central Records Unit (CRU), room 7046 of the main 
Department of Commerce building.
---------------------------------------------------------------------------

    Between September 15 and October 21, 2011, the GOC, Petitioners, 
the Bao Zhang Companies and the Huayuan Companies filed factual 
information submissions. Except for the Bao Zhang Companies' October 
21, 2011 wire rod benchmark submission, all were rejected by the 
Department as untimely under 19 CFR 351.301(c). The Department informed 
Petitioners they could re-file certain portions of their rejected 
material, which they did on October 31, 2011. On September 19, 2011, 
the Department issued supplemental questionnaires to the GOC, the Bao 
Zhang Companies, and the Huayuan Companies, which, in turn, submitted 
responses between September 28 and October 3, 2011. On October 7, 2011, 
the Department issued additional supplemental questionnaires to the Bao 
Zhang Companies and the GOC, with responses filed on October 13 and 14, 
2011, respectively. Moreover, on October 14, 2011, Department issued a 
supplemental questionnaire to the Huayuan Companies, which filed a 
response on October 24, 2011.
    Between October 21 and November 2, 2011, the Department issued 
verification outlines to the GOC, the Bao Zhang Companies, the Huayuan 
Companies and M&M. On October 24, 2011, Petitioners filed pre-
verification comments. The Department conducted verification of the Bao 
Zhang Companies and the GOC from October 31 to November 8, 2011. 
Although scheduled for verification, the Huayuan Companies and M&M 
verbally informed the Department on November 3, 2011 that they would 
not participate in verification; a letter filed on November 9, 2011 
stated the reasons for their decision not to participate. The Bao Zhang 
Companies filed minor corrections on November 4, 2011, and on November 
10 and 15, 2011, the Bao Zhang Companies and the GOC, respectively, 
timely filed verification exhibits. The Department issued verification 
reports for the Bao Zhang Companies and the GOC on December 22, 2011.
    With respect to scope issues, on November 2, 2011, Qingdao Ant 
Hardware Manufacturing Co., Ltd. (AHM) placed on the record physical 
samples and other information pertaining to the scope of the 
investigation, and, on November 16, 2011, a public viewing of the 
physical samples was held at the Department. On December 15, 2011, the 
Department placed on the record of this investigation the preliminary 
determinations in the corresponding antidumping duty (AD) 
investigations of galvanized wire from the PRC and Mexico \3\ in which 
scope comments filed prior to the preliminary countervailing duty (CVD) 
determination were addressed. When placing these preliminary AD 
determinations on the record, we requested that parties submit any 
comments on scope issues when they filed their case briefs.\4\
---------------------------------------------------------------------------

    \3\ See Galvanized Steel Wire From the People's Republic of 
China: Preliminary Determination of Sales at Less Than Fair Value 
and Postponement of Final Determination, 76 FR 68407 (November 4, 
2011); see also Galvanized Steel Wire From Mexico: Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination, 76 FR 68422 (November 4, 2011).
    \4\  See Memorandum to File ``Decisions Regarding Scope Comments 
from Investigations of Galvanized Steel Wire from the PRC and 
Mexico,'' dated December 15, 2011.
---------------------------------------------------------------------------

    On January 9, 2012, the GOC requested that the Department terminate 
this investigation based on the U.S. Court of Appeals for the Federal 
Circuit December 19, 2011 ruling in GPX International Tire Corp. v. 
United States.\5\ On January 13, 2012, Petitioners filed rebuttal 
comments in response to the GOC's request for termination.
---------------------------------------------------------------------------

    \5\ See GPX Int'l Tires Corp. v. United States, 666 F.3d 732 
(Fed. Cir. 2011).
---------------------------------------------------------------------------

    The Department issued a post-preliminary analysis memorandum 
regarding three programs on January 17, 2012.\6\ Interested parties 
submitted case briefs on January 25 and 31, 2012, and rebuttal briefs 
on February 6, 2012. On March 1, 2012, the Department requested all 
parties in all three galvanized wire investigations that filed scope 
comments in their case and rebuttal briefs to ensure their comments 
were placed on the records of all three investigations, and all parties 
were provided an opportunity to comment on these scope comments. No 
additional comments on scope issues were submitted.
---------------------------------------------------------------------------

    \6\ See Memorandum to Paul Piquado, Assistant Secretary for 
Import Administration from Barbara E. Tillman, Director, AD/CVD 
Operations, Office 6, through Christian Marsh Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations 
``Countervailing Duty Investigation on Galvanized Steel Wire from 
the People's Republic of China: Post-Preliminary Analysis 
Memorandum,'' dated January 17, 2012.
---------------------------------------------------------------------------

Scope Comments

    As referenced in the ``Case History'' section above, the Department 
placed the preliminary determinations of the companion galvanized wire 
AD investigations from Mexico and the PRC on the record of this 
investigation. In those preliminary determinations, the Department 
found that galvanized wire with a diameter less than one millimeter was 
subject to the scope of the investigation. We invited parties to 
comment on this issue. No additional comments were made on this issue. 
Thus, the Department continues to find, specifically, that galvanized 
wire with a diameter less than one millimeter but equal to or greater 
than 0.5842 millimeters is covered by the scope.
    Also, as noted in the ``Case History'' section above, all scope-
related comments submitted by parties in all three investigations in 
their case and rebuttal briefs are on the record of all three 
investigations. Petitioners and AHM provided comments on the scope and 
merchandise that is to be covered under the scope. Based on our 
analysis of these comments, the Department continues to find that hobby 
wire, which is galvanized steel wire, in lengths of more than 15 feet, 
is properly included in the scope of this investigation.\7\ Further, 
certain parties in the companion AD investigation involving Mexico 
provided comments on the scope and merchandise that is to be covered 
under the scope. Based on our analysis of these comments, the 
Department has clarified the scope language to include not only 
circular cross section material, but also out-of-round material that 
meets the circular tolerances. In addition, the Department has included 
an additional HTSUS subheading as part of the scope description.\8\
---------------------------------------------------------------------------

    \7\ AMH's and Petitioners comments on the scope of the 
investigation are fully addressed in Galvanized Steel Wire from the 
People's Republic of China: Final Determination of Sales at Less 
Than Fair Value and accompanying Issues and Decision Memorandum at 
Comment 3, issued concurrently with this final determination.
    \8\ These comments are fully addressed in Notice of Final 
Determination of Sales at Less Than Fair Value: Galvanized Steel 
Wire from Mexico and accompanying Issues and Decision Memorandum at 
Comments 3 and 4, issued concurrently with this final determination.
---------------------------------------------------------------------------

Scope of Investigation

    The merchandise covered by this investigation is galvanized steel 
wire. See Appendix I for a complete description of the scope of this 
investigation.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in Memorandum to Paul Piquado, Assistant Secretary for Import 
Administration, Issues and Decision Memorandum for the Final

[[Page 17420]]

Determination in the Countervailing Duty Investigation of Galvanized 
Steel Wire from the People's Republic of China (Decision Memorandum), 
which is hereby adopted by this notice. A list of the subsidy programs 
and the issues that parties raised and to which we responded in the 
Decision Memorandum is attached to this notice as Appendix II. The 
Decision Memorandum is a public document, which is on file 
electronically via IA ACCESS. In addition, a complete version of the 
Decision Memorandum is also accessible on the Web at https://ia.ita.doc.gov/frn/. The signed Decision Memorandum and the electronic 
versions of the Decision Memorandum are identical in content.

Use of Facts Otherwise Available, Including Adverse Inferences

    For purposes of this final determination, we have continued to rely 
on facts available and have continued to apply adverse inferences in 
accordance with sections 776(a) and (b) of the Tariff Act of 1930, as 
amended (the Act) with regard to: (1) The CVD rate to be applied to the 
non-cooperative mandatory company respondent, Hualing; (2) whether the 
wire rod and zinc input producers at issue are government authorities 
that provide wire rod and zinc for less than adequate remuneration 
(LTAR); and, (3) the GOC's provision of electricity for LTAR. In 
addition, for the purposes of this final determination, we are also 
applying adverse facts available (AFA) to (1) determine the CVD rate to 
be applied to the non-cooperating mandatory respondents the Huayuan 
Companies and M&M, and (2) determine that the Zhabei District ``Save 
Energy Reduce Emission Team'' award is specific pursuant to sections 
776(a) and (b) of the Act. A full discussion of our decision to apply 
AFA is presented in the Decision Memorandum under the section ``Use of 
Facts Otherwise Available and Adverse Inferences.''

Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we have 
calculated a rate for each individually investigated producer/exporter 
of the subject merchandise. Section 705(c)(5)(A)(i) of the Act states 
that for companies not investigated, we will determine an ``all-
others'' rate equal to the weighted average countervailable subsidy 
rates established for exporters and producers individually 
investigated, excluding any zero and de minimis countervailable subsidy 
rates, and any rates determined entirely under section 776 of the Act.
    In this investigation, the only rate not based entirely on AFA is 
the rate calculated for the Bao Zhang Companies. Consequently, the rate 
calculated for the Bao Zhang Companies is also assigned as the ``all-
others'' rate. For those non-cooperative companies that did not fully 
participate in this investigation, we have determined rates based 
solely on AFA, in accordance with sections 776(a) and (b) of the 
Act.\9\ Therefore, we determine the total estimated net countervailable 
subsidy rates to be:
---------------------------------------------------------------------------

    \9\ See ``Non-Cooperative Companies'' in the ``Use of Facts 
Otherwise Available and Adverse Inferences'' section of the Decision 
Memorandum.

------------------------------------------------------------------------
                                                         Ad Valorem net
                        Company                           subsidy rate
                                                            (percent)
------------------------------------------------------------------------
M&M Industries Co. Ltd................................            223.27
Shandong Hualing Hardware and Tool Co., Ltd...........            223.27
Shanghai Bao Zhang Industry Co. Ltd., Anhui Bao Zhang              19.06
 Metal Products Co., Ltd., and Shanghai Li Chao
 Industry Co., Ltd. (collectively the Bao Zhang
 Companies)...........................................
Tianjin Huayuan Metal Wire Products Co., Ltd., Tianjin            223.27
 Tianxin Metal Products Co., Ltd., and Tianjin Mei Jia
 Hua Trade Co., Ltd. (collectively, the Huayuan
 Companies)...........................................
All Others Rate.......................................             19.06
------------------------------------------------------------------------

    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of subject 
merchandise from the PRC which were entered or withdrawn from 
warehouse, for consumption on or after September 6, 2011, the date of 
the publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, we later issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after January 4, 2012, but to continue the suspension 
of liquidation of all entries from September 6, 2011, through January 
3, 2012.
    We will issue a CVD order and reinstate the suspension of 
liquidation under section 706(a) of the Act if the U.S. International 
Trade Commission (ITC) issues a final affirmative injury determination, 
and will require a cash deposit of estimated CVDs for such entries of 
merchandise in the amounts indicated above. If the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated and all estimated duties deposited or 
securities posted as a result of the suspension of liquidation will be 
refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.

[[Page 17421]]

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: March 19, 2012.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix I

Scope of Investigation

    The scope of this investigation covers galvanized steel wire 
which is a cold-drawn carbon quality steel product in coils, of 
circular or approximately circular, solid cross section with any 
actual diameter of 0.5842 mm (0.0230 inch) or more, plated or coated 
with zinc (whether by hot-dipping or electroplating).
    Steel products to be included in the scope of this 
investigation, regardless of Harmonized Tariff Schedule of the 
United States (HTSUS) definitions, are products in which: (1) iron 
predominates, by weight, over each of the other contained elements; 
(2) the carbon content is two 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
--0.02 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.

    Specifically excluded from the scope of this investigation is 
galvanized steel wire in coils of 15 feet or less which is pre-
packed in individual retail packages. The products subject to this 
investigation are currently classified in subheadings 7217.20.30, 
7217.20.45, or 7217.90.10 of the HTSUS which cover galvanized wire 
of all diameters and all carbon content. Galvanized wire is reported 
under statistical reporting numbers 7217.20.3000, 7217.20.4510, 
7217.20.4520, 7217.20.4530, 7217.20.4540, 7217.20.4550, 
7217.20.4560, 7217.20.4570, 7217.20.4580, and 7217.90.1000. These 
products may also enter under HTSUS subheadings 7229.20.0015, 
7229.20.0090, 7229.90.5008, 7229.90.5016, 7229.90.5031, and 
7229.90.5051. Although the HTSUS subheadings are provided for 
convenience and Customs purposes, the written description of the 
merchandise is dispositive.

Appendix II

Decision Memorandum

I. Summary
II. Subsidy Valuation Information
    A. Period of Investigation
    B. Attribution of Subsidies
    C. Allocation Period
    D. Discount Rates for Allocating Non-Recurring Subsidies
III. Use of Facts Otherwise Available and Adverse Inferences
    Non-Cooperative Companies
    Input Producers--Government Authorities Under Provision of Wire 
Rod and Zinc for Less Than Adequate Remuneration
    GOC--Provision of Electricity for Less Than Adequate 
Remuneration
    GOC--Specificity of Zhabei District ``Save Energy Reduce 
Emission Team'' Award Program
IV. Analysis of Programs
    A. Programs Determined To Be Countervailable
    1. Provision of Wire Rod for Less Than Adequate Remuneration
    2. Provision of Zinc for Less Than Adequate Remuneration
    3. Provision of Electricity for Less Than Adequate Remuneration
    4. Export Grants From Local Governments
    5. Zhabei District ``Save Energy Reduce Emission Team'' Award 
Program
    B. Program Determined Not To Confer a Benefit During the POI
    Export Subsidies Characterized as ``VAT Rebates''
    C. Program for Which the Benefit Has No Impact on the Subsidy 
Rate
    Exemption From City Construction Tax and Education Tax for 
Foreign Invested Enterprises
    D. Programs Determined To Be Not Used
    1. Policy Loans to the Galvanized Wire Industry
    2. Preferential Loans for Key Projects and Technologies
    3. Preferential Loans and Directed Credit
    4. Preferential Lending to Galvanized Wire Producers and 
Exporters Classified as ``Honorable Enterprises''
    5. Loans and Interest Subsidies Provided Pursuant to the 
Northeast Revitalization Program
    6. Provision of Land Use Rights for LTAR Within the Jinzhou 
District Within the City of Dalian
    7. Provision of Land Use Rights for LTAR to Enterprises Within 
the Zhaoqing High-Tech Industry Development Zone in Guangdong 
Province
    8. Provision of Land Use Rights for LTAR to Enterprises Within 
the South Sanshui Science and Technology Industrial Park of Foshan 
City
    9. Income Tax Credits for Domestically-Owned Companies 
Purchasing Domestically-Produced Equipment
    10. Income Tax Exemption for Investment in Domestic 
Technological Renovation
    11. Accelerated Depreciation for Enterprises Located in the 
Northeast Region
    12. Forgiveness of Tax Arrears for Enterprises in the Old 
Industrial Bases of Northeast China
    13. Income Tax Exemption for Investors in Designated 
Geographical Regions Within Liaoning Province
    14. VAT Deduction on Fixed Assets
    15. Import Tariff and VAT Exemptions for FIEs and Certain 
Domestic Enterprises Using Imported Equipment in Encouraged 
Industries
    16. Reduction in or Exemption From Fixed Assets Investment 
Orientation Regulatory Tax
    17. ``Five Points, One Line'' Program of Liaoning Province
    18. Provincial Export Interest Subsidies
    19. State Key Technology Project Fund
    20. Subsidies for Development of Famous Export Brands and China 
World Top Brands
    21. Sub-Central Government Programs to Promote Famous Export 
Brands and China World Top Brands
    22. Zhejiang Province Program to Rebate Antidumping Legal Fees
    23. Technology to Improve Trade Research and Development Fund of 
Jiangsu Province
    24. Outstanding Growth Private Enterprise and Small and Medium-
Sized Enterprises Development in Jiangyin Fund of Jiangyin City
    25. Grants for Programs Under the 2007 Science and Technology 
Development Plan in Shandong Province
    26. Special Funds for Encouraging Foreign Economic and Trade 
Development and for Drawing Significant Foreign Investment Projects 
in Shandong Province
    27. ``Two Free, Three Half'' Tax Exemptions for ``Productive'' 
FIEs
    28. Income Tax Exemption Program for Export-Oriented FIEs
    29. Local Income Tax Exemption and Reduction Programs for 
``Productive'' FIEs
    30. Preferential Tax Programs for FIEs Recognized as High or New 
Technology Enterprises
    31. Income Tax Subsidies for FIEs Based on Geographic Location
    32. VAT Refunds for FIEs Purchasing Domestically-Produced 
Equipment
    33. Income Tax Credits for FIEs Purchasing Domestically-Produced 
Equipment
V. Analysis of Comments
    General Issues
    Comment 1: Whether the Investigation Should Be Terminated Based 
on the GPX III Ruling
    Comment 2: Application of CVD Law to the PRC
    Comment 3: Whether Application of the CVD Law to NMEs Violates 
the Administrative Procedures Act (APA)
    Comment 4: Double Remedies
    Case-Specific Issues
    Comment 5: Whether There is a Basis for Countervailing Inputs 
Purchased From Input Suppliers
    Comment 6: Whether the Department Improperly Rejected the GOC's 
September 15, 2011, Submission and Whether the Application of AFA is 
Warranted
    Comment 7: Whether the Department Improperly Rejected the Bao 
Zhang Companies' September 26, 2011 Submission
    Comment 8: Whether the Department Should Revise Its Benchmark 
for Wire Rod
    Comment 9: Whether the Department Should Apply AFA in Selecting 
the Electricity Benchmark
    Comment 10: Whether the Bao Zhang Companies' Additional 
Electricity Charges Should Be Included in the Final Determination

[[Page 17422]]

    Comment 11: Whether the Department Should Apply the Same 
Electricity Benchmark to both ABZ and SBZ
    Comment 12: Application of AFA to the Huayuan Companies and M&M
VI. Recommendation

[FR Doc. 2012-7214 Filed 3-23-12; 8:45 am]
BILLING CODE 3510-DS-P
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