Carbon and Certain Alloy Steel Wire Rod From the People's Republic of China: Initiation of Countervailing Duty Investigation, 11085-11088 [2014-04343]

Download as PDF Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices merchandise from Meihua Hong Kong in accordance with section 751(a)(2)(B)(iii) of the Act and 19 CFR 351.214(e). Because Meihua Hong Kong certified that it exported the subject merchandise that was produced by Meihua Amino Acid and that such merchandise is the subject of this new shipper review, the Department will apply the bonding privilege only for subject merchandise produced by Meihua Amino Acid and exported by Meihua Hong Kong. Interested parties requiring access to proprietary information in this new shipper review should submit applications for disclosure under administrative protective order in accordance with 19 CFR 351.305 and 351.306. This initiation and notice are published in accordance with section 751(a)(2)(B) of the Act and 19 CFR 351.214 and 351.221(c)(1)(i). Dated: February 21, 2014. Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. [FR Doc. 2014–04340 Filed 2–26–14; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–013] Carbon and Certain Alloy Steel Wire Rod From the People’s Republic of China: Initiation of Countervailing Duty Investigation Enforcement and Compliance, formerly Import Administration, International Trade Administration, Department of Commerce. DATES: Effective Date: February 27, 2014. FOR FURTHER INFORMATION CONTACT: Rebecca Trainor at (202) 482–4007 or Irene Darzenta Tzafolias at (202) 482– 0922, AD/CVD Operations, Enforcement and Compliance, International Trade Administration, Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230. SUPPLEMENTARY INFORMATION: mstockstill on DSK4VPTVN1PROD with NOTICES AGENCY: The Petition On January 31, 2013, the Department of Commerce (the Department) received a countervailing duty (CVD) petition concerning imports of carbon and certain alloy steel wire rod (steel wire rod) from the People’s Republic of China (PRC), filed in proper form, on behalf of ArcelorMittal USA LLC, Charter Steel, Evraz Pueblo (formerly VerDate Mar<15>2010 17:58 Feb 26, 2014 Jkt 232001 11085 Evraz Rocky Mountain Steel), Gerdau Ameristeel US Inc., Keystone Consolidated Industries, Inc., and Nucor Corporation (collectively, the petitioners).1 The CVD petition was accompanied by an antidumping duty (AD) petition with respect to the PRC.2 The petitioners are domestic producers of steel wire rod. On February 5, 2014, the Department requested information and clarification for certain portions of the petition.3 The petitioners filed their response to this request on February 11, 2014.4 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioners allege that the Government of the PRC (GOC) is providing countervailable subsidies (within the meaning of sections 701 and 771(5) of the Act) with respect to imports of steel wire rod from the PRC, and that imports of steel wire rod from the PRC are materially injuring, and threaten material injury to, the domestic industry producing steel wire rod in the United States. The Department finds that the petitioners filed the petition on behalf of the domestic industry because the petitioners are interested parties as defined in sections 771(9)(C) and (D) of the Act, and that the petitioners demonstrated sufficient industry support with respect to the initiation of the investigation the petitioners are requesting.5 received responses from, the petitioners pertaining to the proposed scope in order to ensure that the scope language in the petition would be an accurate reflection of the products for which the domestic industry is seeking relief. As discussed in the Preamble to the regulations,6 we are setting aside a period for interested parties to raise issues regarding product coverage. The Department encourages interested parties to submit such comments by 5:00 p.m. EST on March 12, 2014. All comments must be filed on the records of the PRC CVD investigation, as well as the concurrent PRC AD investigation. Period of Investigation The period of investigation (POI) is January 1, 2013, through December 31, 2013. Consultations Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department invited representatives of the GOC for consultations with respect to the petition.8 Consultations were held with the GOC on February 18, 2014.9 Scope of Investigation The product covered by this investigation is steel wire rod from the PRC. For a full description of the scope of this investigation, see ‘‘Scope of Investigation’’ at Appendix I of this notice. Comments on Scope of Investigation During our review of the petition, the Department issued questions to, and 1 See Petition for the Imposition of Countervailing Duties on Imports of Carbon and Certain Alloy Steel Wire Rod from the People’s Republic of China, dated January 31, 2013 (CVD petition or petition). 2 See Petition for the Imposition of Antidumping Duties on Imports of Carbon and Certain Alloy Steel Wire Rod from the People’s Republic of China, dated January 31, 2013 (AD petition). 3 See Petition for the Imposition of Countervailing Duties on Carbon and Certain Alloy Steel Wire Rod from the People’s Republic of China: Supplemental Questions, dated February 5, 2014. 4 See Petitioners’ Response to Commerce Department Request for Petition Clarifications— Carbon and Certain Steel Wire Rod from the People’s Republic of China, dated February 11, 2014. 5 See ‘‘Determination of Industry Support for the Petition’’ below. PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 Filing Requirements All submissions to the Department must be filed electronically using Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (IA ACCESS). An electronically filed document must be received successfully in its entirety by the time and date noted above. Documents excepted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement and Compliance’s APO/Dockets Unit, Room 1870, Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230, and stamped with the date and time of receipt by the deadline noted above.7 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 6 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). 7 See 19 CFR 351.303(b). Information regarding IA ACCESS assistance can be found at https://iaaccess. trade.gov/help.aspx and a handbook can be found at https://iaaccess.trade.gov/help/Handbook%20on %20Electronic%20Filing%20Procedures.pdf. 8 See Letter of Invitation Regarding Countervailing Duty Petition on Carbon and Alloy Steel Wire Rod from the People’s Republic of China, dated January 31, 2014. 9 See Memorandum to the File, ‘‘Consultations with Official from the Government of the People’s Republic of China on the Countervailing Duty Petition Regarding Carbon and Alloy Steel Wire Rod from the People’s Republic of China,’’ dated February 19, 2014. E:\FR\FM\27FEN1.SGM 27FEN1 mstockstill on DSK4VPTVN1PROD with NOTICES 11086 Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices 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) if there is a large number of producers in the industry, the Department may 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 U.S. 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,10 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.11 Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition). With regard to the domestic like product, the petitioners do not offer a definition of domestic like product 10 See section 771(10) of the Act. USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989)). 11 See VerDate Mar<15>2010 17:58 Feb 26, 2014 Jkt 232001 distinct from the scope of the investigation. Based on our analysis of the information submitted on the record, we determined that steel wire rod, as defined in the scope of the investigation, constitutes a single domestic like product and we analyzed industry support in terms of that domestic like product.12 In determining whether the 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’’ section above. To establish industry support, the petitioners provided the production of the domestic like product in 2013 of all supporters of the petition, and compared this to the total production of the domestic like product for the entire domestic industry.13 We relied upon data the petitioners provided for purposes of measuring industry support.14 Based on information provided in the petition, supplemental submission, and other information readily available to the Department, we determine that the petitioners 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.15 Based on information provided in the petition, 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 production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Accordingly, the Department determines that the petition was filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act.16 12 See Countervailing Duty Investigation Initiation Checklist: Carbon and Certain Alloy Steel Wire Rod from the People’s Republic of China (CVD Initiation Checklist), at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Carbon and Certain Alloy Steel Wire Rod from the People’s Republic of China (Attachment II). This checklist is dated concurrently with this notice and on file electronically via IA ACCESS. Access to documents filed via IA ACCESS is also available in the Central Records Unit, Room 7046 of the main Department of Commerce building. 13 See Volume I of the Petition, at 4–5 and Exhibit GEN–1. 14 See CVD Initiation Checklist, at Attachment II. 15 Id. 16 Id. PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 The Department finds that the 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 that they are requesting the Department initiate.17 Injury Test Because the PRC 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 the PRC materially injure, or threaten material injury to, a U.S. industry. Allegations and Evidence of Material Injury and Causation The 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. The petitioners allege that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.18 The petitioners contend that the industry’s injured condition is illustrated by reduced market share; underselling and price depression or suppression; lost sales and revenues; reduced production and shipments; anemic capacity utilization; decline in employment variables; and decline in financial performance.19 We assessed the allegations and supporting evidence regarding material injury, threat of material injury, and causation, and we determined that these allegations are properly supported by adequate evidence and meet the statutory requirements for initiation.20 Initiation of Countervailing Duty Investigation Section 702(b)(1) of the Act requires the Department to initiate a CVD investigation whenever an interested 17 Id. 18 See Volume I of the Petition, at 13 and Exhibit INJ–1; see also General Issues Supplement to the Petition, dated February 7, 2014 (General Issues Supplement), at 6. 19 See Volume I of the Petition, at 9–20 and Exhibits GEN–6, and INJ–1 through INJ–5; see also General Issues Supplement, at 6 and Exhibit INJ– 6. 20 See CVD Initiation Checklist, at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Carbon and Certain Alloy Steel Wire Rod from the People’s Republic of China. E:\FR\FM\27FEN1.SGM 27FEN1 Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES party files a CVD 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 supporting the allegations. In the petition, the petitioners allege that producers/exporters of steel wire rod in the PRC benefited from countervailable subsidies bestowed by the government. The Department has examined the petition and finds that it complies with the requirements of section 702(b)(1) of the Act. Therefore, in accordance with section 702(b)(1) of the Act, we are initiating a CVD investigation to determine whether manufacturers, producers, or exporters of steel wire rod from the PRC receive countervailable subsidies from the government. Based on our review of the petition, we find that there is sufficient information to initiate a CVD investigation on certain alleged programs. For a full discussion of the basis for our decision to initiate or not initiate on each program, see PRC CVD Initiation Checklist. A public version of the initiation checklist is available on IA ACCESS and at https://trade.gov/enforcement/ news.asp. Respondent Selection For this investigation, the Department intends to select respondents based on U.S. Customs and Border Protection (CBP) data for U.S. imports of subject merchandise during the POI under the following Harmonized Tariff Schedule of the United States (HTS) numbers: 7213.91.3011, 7213.91.3015, 7213.91.3020, 7213.91.3093; 7213.91.4500, 7213.91.6000, 7213.99.0030, 7227.20.0030, 7227.20.0080, 7227.90.6010, 7227.90.6020, 7227.90.6030, 7227.90.6035, and 7227.90.6085.21 We intend to release the CBP data under Administrative Protective Order (APO) to all parties with access to information protected by APO shortly after the announcement of this case initiation. Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305(b). Instructions for filing such applications may be found at https:// enforcement.trade.gov/apo/. Interested parties may submit comments regarding the CBP data and respondent selection by 5:00 p.m. EST on the seventh calendar day after 21 While HTS number 7227.90.6085 is not included in the scope, information in the petition indicates that certain subject merchandise was classified under this number during the POI. See Volume I of the Petition, at 8. VerDate Mar<15>2010 17:58 Feb 26, 2014 Jkt 232001 publication of this notice. Comments must be filed in accordance with the filing requirements stated above. If respondent selection is necessary, we intend to base our decision regarding respondent selection upon comments received from interested parties and our analysis of the record information within 20 days of publication of this 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), copies of the public version of the petitions have been provided to the GOC via IA ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the petition to each known exporter (as named in the petition), as provided in 19 CFR 351.203(c)(2). ITC Notification We 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 steel wire rod from the PRC are materially injuring, or threatening material injury to, a U.S. industry.22 A negative ITC determination will result in the investigation being terminated; otherwise, this investigation will proceed according to statutory and regulatory time limits. Submission of Factual Information On April 10, 2013, the Department published Definition of Factual Information and Time Limits for Submission of Factual Information: Final Rule, 78 FR 21246 (April 10, 2013), which modified two regulations related to AD and CVD proceedings: The definition of factual information (19 CFR 351.102(b)(21)), and the time limits for the submission of factual information (19 CFR 351.301). The final rule identifies five categories of factual information in 19 CFR 351.102(b)(21), which are summarized as follows: (i) Evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by the Department; and (v) evidence other than factual information described in (i)–(iv). The final rule requires any party, when submitting 22 See PO 00000 section 703(a) of the Act. Frm 00014 Fmt 4703 Sfmt 4703 11087 factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted and, if the information is submitted to rebut, clarify, or correct factual information already on the record, to provide an explanation identifying the information already on the record that the factual information seeks to rebut, clarify, or correct. The final rule also modified 19 CFR 351.301 so that, rather than providing general time limits, there are specific time limits based on the type of factual information being submitted. These modifications are effective for all segments initiated on or after May 10, 2013, and thus are applicable to this investigation. Please review the final rule, available at https://enforcement.trade.gov/frn/2013/ 1304frn/2013-08227.txt, prior to submitting factual information in this investigation. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.23 Parties are hereby reminded that the Department issued a final rule with respect to certification requirements, effective August 16, 2013. Parties are hereby reminded that revised certification requirements are in effect for company/government officials as well as their representatives. All segments of any AD or CVD proceedings initiated on or after August 16, 2013, should use the formats for the revised certifications provided at the end of the Final Rule.24 The Department intends to reject factual submissions if the submitting party does not comply with the applicable revised certification requirements. Extension of Time Limits On September 20, 2013, the Department published Extension of Time Limits, Final Rule, 78 FR 57790 (September 20, 2013), which modified one regulation related to AD and CVD proceedings regarding the extension of time limits for submissions in such proceedings (19 CFR 351.302(c)). These modifications are effective for all segments initiated on or after October 21, 2013, and thus are applicable to this investigation. Please review the final rule, available at https://www.gpo.gov/ 23 See section 782(b) of the Act. Certification of Factual Information To Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also the frequently asked questions regarding the Final Rule, available at the following: https://enforcement.trade.gov/tlei/ notices/factual_info_final_rule_FAQ_07172013.pdf. 24 See E:\FR\FM\27FEN1.SGM 27FEN1 11088 Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices fdsys/pkg/FR-2013-09-20/html/201322853.htm prior to requesting an extension. CONSUMER PRODUCT SAFETY COMMISSION Notification to Interested Parties [CPSC Docket No. CPSC–2011–0081] Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. On January 22, 2008, the Department published Antidumping and Countervailing Duty Proceedings: Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). 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)). This notice is issued and published pursuant to section 777(i) of the Act. CPSC Workshop on Potential Ways To Reduce Third Party Testing Costs Through Determinations Consistent With Assuring Compliance Dated: February 20, 2014. Paul Piquado, Assistant Secretary for Enforcement and Compliance. Appendix I mstockstill on DSK4VPTVN1PROD with NOTICES Scope of the Investigation The merchandise covered by this investigation is certain hot-rolled products of carbon steel and alloy steel, in coils, of approximately circular cross section, less than 19.00 mm in actual solid cross-sectional diameter. Specifically excluded are steel products possessing the above-noted physical characteristics and meeting the Harmonized Tariff Schedule of the United States (HTSUS) definitions for (a) stainless steel; (b) tool steel; (c) high nickel steel; (d) ball bearing steel; or (e) concrete reinforcing bars and rods. Also excluded are free cutting steel (also known as free machining steel) products (i.e., products that contain by weight one or more of the following elements: 0.1 percent or more of lead, 0.05 percent or more of bismuth, 0.08 percent or more of sulfur, more than 0.04 percent of phosphorus, more than 0.05 percent of selenium, or more than 0.01 percent of tellurium). All products meeting the physical description of subject merchandise that are not specifically excluded are included in this scope. The products under investigation are currently classifiable under subheadings 7213.91.3011, 7213.91.3015, 7213.91.3020, 7213.91.3093; 7213.91.4500, 7213.91.6000, 7213.99.0030, 7227.20.0030, 7227.20.0080, 7227.90.6010, 7227.90.6020, 7227.90.6030, and 7227.90.6035 of the HTSUS. Products entered under subheadings 7213.99.0090 and 7227.90.6090 of the HTSUS also may be included in this scope if they meet the physical description of subject merchandise above. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this proceeding is dispositive. [FR Doc. 2014–04343 Filed 2–26–14; 8:45 am] BILLING CODE 3510–DS–P VerDate Mar<15>2010 17:58 Feb 26, 2014 Jkt 232001 Consumer Product Safety Commission. ACTION: Announcement of meeting and request for comments. AGENCY: The Consumer Product Safety Commission (CPSC, Commission, or we) staff is holding a workshop on potential ways to reduce third party testing costs through determinations consistent with assuring compliance. We invite interested parties to participate in or attend the workshop and to submit written comments. DATES: The workshop will be held from 9 a.m. to 4 p.m. on April 3, 2014. Individuals interested in serving on panels or presenting information at the workshop should register by March 13, 2014; all other individuals who wish to attend the workshop should register by March 27, 2014. The workshop will also be available through a webcast, but viewers will not be able to interact with the panels and presenters. Written comments must be received by April 17, 2014. ADDRESSES: The workshop will be held at the CPSC’s National Product Testing and Evaluation Center, 5 Research Place, Rockville, MD 20850. There is no charge to attend the workshop. Persons interested in serving on a panel, presenting information, or attending the workshop should register online at: https://www.cpsc.gov/meetingsignup, and click on the link titled, ‘‘Potential Ways to Reduce Third Party Testing Costs through Determinations Consistent with Assuring Compliance Workshop.’’ You may submit comments, identified by Docket No. CPSC–2011–0081, by any of the following methods: SUMMARY: Electronic Submissions Submit electronic comments in the following way: Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. The Commission does not accept comments submitted by electronic mail (email), except through: https:// www.regulations.gov. The Commission encourages you to submit electronic comments by using the Federal eRulemaking Portal, as described above. PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 Written Submissions Submit written submissions in the following way: Mail/Hand delivery/Courier, preferably in five copies, to: Office of the Secretary, Consumer Product Safety Commission, Room 820, 4330 East West Highway, Bethesda, MD 20814; telephone (301) 504–7923. Instructions: All submissions received must include the agency name and docket number for this notice. All comments received may be posted without change, including any personal identifiers, contact information, or other personal information provided, to: https://www.regulations.gov. Do not submit confidential business information, trade secret information, or other sensitive or protected information electronically. Such information should be submitted in writing. Docket: For access to the docket to read background documents or comments received, go to: https:// www.regulations.gov, and insert the Docket No. CPSC–2011–0081, into the ‘‘Search’’ box, and follow the prompts. FOR FURTHER INFORMATION CONTACT: Ms. Jacqueline Campbell, Directorate for Engineering Sciences, 5 Research Place, Rockville, MD 20850; telephone 301– 987–2024; email: jcampbell@cpsc.gov. SUPPLEMENTARY INFORMATION: I. Background A. What does the law require? The Consumer Product Safety Improvement Act of 2008 (CPSIA) established limits for the maximum lead content in substrate for accessible component parts of children’s products and for the maximum content limit of six phthalates for children’s toys and child care articles. Currently, the maximum lead content limit for accessible component parts of children’s products is 100 parts per million (ppm), and the maximum phthalate content limit is 0.1 percent (1000 ppm). Additionally, the CPSIA made ASTM F963–07, Standard Consumer Safety Specification for Toy Safety, or any successor version of the standard that the Commission does not reject, a mandatory consumer product safety standard. Currently, ASTM F963–11 (Toy Standard) is the mandatory version of the standard. Table 1 of section 4.3.5 of ASTM F963–11 lists the limits for the soluble amounts of eight elements (antimony, arsenic, barium, cadmium, chromium, lead, mercury, and selenium) allowable in toy substrates. The CPSIA generally requires that children’s products that are subject to a CPSC children’s product safety rule E:\FR\FM\27FEN1.SGM 27FEN1

Agencies

[Federal Register Volume 79, Number 39 (Thursday, February 27, 2014)]
[Notices]
[Pages 11085-11088]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-04343]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-013]


Carbon and Certain Alloy Steel Wire Rod From the People's 
Republic of China: Initiation of Countervailing Duty Investigation

AGENCY: Enforcement and Compliance, formerly Import Administration, 
International Trade Administration, Department of Commerce.


DATES: Effective Date: February 27, 2014.

FOR FURTHER INFORMATION CONTACT: Rebecca Trainor at (202) 482-4007 or 
Irene Darzenta Tzafolias at (202) 482-0922, AD/CVD Operations, 
Enforcement and Compliance, International Trade Administration, 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petition

    On January 31, 2013, the Department of Commerce (the Department) 
received a countervailing duty (CVD) petition concerning imports of 
carbon and certain alloy steel wire rod (steel wire rod) from the 
People's Republic of China (PRC), filed in proper form, on behalf of 
ArcelorMittal USA LLC, Charter Steel, Evraz Pueblo (formerly Evraz 
Rocky Mountain Steel), Gerdau Ameristeel US Inc., Keystone Consolidated 
Industries, Inc., and Nucor Corporation (collectively, the 
petitioners).\1\ The CVD petition was accompanied by an antidumping 
duty (AD) petition with respect to the PRC.\2\ The petitioners are 
domestic producers of steel wire rod. On February 5, 2014, the 
Department requested information and clarification for certain portions 
of the petition.\3\ The petitioners filed their response to this 
request on February 11, 2014.\4\
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    \1\ See Petition for the Imposition of Countervailing Duties on 
Imports of Carbon and Certain Alloy Steel Wire Rod from the People's 
Republic of China, dated January 31, 2013 (CVD petition or 
petition).
    \2\ See Petition for the Imposition of Antidumping Duties on 
Imports of Carbon and Certain Alloy Steel Wire Rod from the People's 
Republic of China, dated January 31, 2013 (AD petition).
    \3\ See Petition for the Imposition of Countervailing Duties on 
Carbon and Certain Alloy Steel Wire Rod from the People's Republic 
of China: Supplemental Questions, dated February 5, 2014.
    \4\ See Petitioners' Response to Commerce Department Request for 
Petition Clarifications--Carbon and Certain Steel Wire Rod from the 
People's Republic of China, dated February 11, 2014.
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    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that the Government of the 
PRC (GOC) is providing countervailable subsidies (within the meaning of 
sections 701 and 771(5) of the Act) with respect to imports of steel 
wire rod from the PRC, and that imports of steel wire rod from the PRC 
are materially injuring, and threaten material injury to, the domestic 
industry producing steel wire rod in the United States. The Department 
finds that the petitioners filed the petition on behalf of the domestic 
industry because the petitioners are interested parties as defined in 
sections 771(9)(C) and (D) of the Act, and that the petitioners 
demonstrated sufficient industry support with respect to the initiation 
of the investigation the petitioners are requesting.\5\
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    \5\ See ``Determination of Industry Support for the Petition'' 
below.
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Period of Investigation

    The period of investigation (POI) is January 1, 2013, through 
December 31, 2013.

Scope of Investigation

    The product covered by this investigation is steel wire rod from 
the PRC. For a full description of the scope of this investigation, see 
``Scope of Investigation'' at Appendix I of this notice.

Comments on Scope of Investigation

    During our review of the petition, the Department issued questions 
to, and received responses from, the petitioners pertaining to the 
proposed scope in order to ensure that the scope language in the 
petition would be an accurate reflection of the products for which the 
domestic industry is seeking relief. As discussed in the Preamble to 
the regulations,\6\ we are setting aside a period for interested 
parties to raise issues regarding product coverage. The Department 
encourages interested parties to submit such comments by 5:00 p.m. EST 
on March 12, 2014. All comments must be filed on the records of the PRC 
CVD investigation, as well as the concurrent PRC AD investigation.
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    \6\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
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Filing Requirements

    All submissions to the Department must be filed electronically 
using Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (IA ACCESS). An electronically 
filed document must be received successfully in its entirety by the 
time and date noted above. Documents excepted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 1870, 
Department of Commerce, 14th Street and Constitution Avenue NW., 
Washington, DC 20230, and stamped with the date and time of receipt by 
the deadline noted above.\7\
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    \7\ See 19 CFR 351.303(b). Information regarding IA ACCESS 
assistance can be found at https://iaaccess.trade.gov/help.aspx and 
a handbook can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
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Consultations

    Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department 
invited representatives of the GOC for consultations with respect to 
the petition.\8\ Consultations were held with the GOC on February 18, 
2014.\9\
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    \8\ See Letter of Invitation Regarding Countervailing Duty 
Petition on Carbon and Alloy Steel Wire Rod from the People's 
Republic of China, dated January 31, 2014.
    \9\ See Memorandum to the File, ``Consultations with Official 
from the Government of the People's Republic of China on the 
Countervailing Duty Petition Regarding Carbon and Alloy Steel Wire 
Rod from the People's Republic of China,'' dated February 19, 2014.
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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

[[Page 11086]]

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) if there is a large number of producers in the industry, the 
Department may 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 U.S. 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,\10\ 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.\11\
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    \10\ See section 771(10) of the Act.
    \11\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the 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 determined that steel wire rod, as defined in the 
scope of the investigation, constitutes a single domestic like product 
and we analyzed industry support in terms of that domestic like 
product.\12\
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    \12\ See Countervailing Duty Investigation Initiation Checklist: 
Carbon and Certain Alloy Steel Wire Rod from the People's Republic 
of China (CVD Initiation Checklist), at Attachment II, Analysis of 
Industry Support for the Antidumping and Countervailing Duty 
Petitions Covering Carbon and Certain Alloy Steel Wire Rod from the 
People's Republic of China (Attachment II). This checklist is dated 
concurrently with this notice and on file electronically via IA 
ACCESS. Access to documents filed via IA ACCESS is also available in 
the Central Records Unit, Room 7046 of the main Department of 
Commerce building.
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    In determining whether the 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'' section above. To 
establish industry support, the petitioners provided the production of 
the domestic like product in 2013 of all supporters of the petition, 
and compared this to the total production of the domestic like product 
for the entire domestic industry.\13\ We relied upon data the 
petitioners provided for purposes of measuring industry support.\14\
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    \13\ See Volume I of the Petition, at 4-5 and Exhibit GEN-1.
    \14\ See CVD Initiation Checklist, at Attachment II.
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    Based on information provided in the petition, supplemental 
submission, and other information readily available to the Department, 
we determine that the petitioners 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.\15\ Based on information provided in the petition, 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 production of the domestic like product 
produced by that portion of the industry expressing support for, or 
opposition to, the petition. Accordingly, the Department determines 
that the petition was filed on behalf of the domestic industry within 
the meaning of section 702(b)(1) of the Act.\16\
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    \15\ Id.
    \16\ Id.
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    The Department finds that the 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 that they are requesting the Department initiate.\17\
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    \17\ Id.
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Injury Test

    Because the PRC 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 the PRC materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The 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. The petitioners allege that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\18\
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    \18\ See Volume I of the Petition, at 13 and Exhibit INJ-1; see 
also General Issues Supplement to the Petition, dated February 7, 
2014 (General Issues Supplement), at 6.
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    The petitioners contend that the industry's injured condition is 
illustrated by reduced market share; underselling and price depression 
or suppression; lost sales and revenues; reduced production and 
shipments; anemic capacity utilization; decline in employment 
variables; and decline in financial performance.\19\ We assessed the 
allegations and supporting evidence regarding material injury, threat 
of material injury, and causation, and we determined that these 
allegations are properly supported by adequate evidence and meet the 
statutory requirements for initiation.\20\
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    \19\ See Volume I of the Petition, at 9-20 and Exhibits GEN-6, 
and INJ-1 through INJ-5; see also General Issues Supplement, at 6 
and Exhibit INJ-6.
    \20\ See CVD Initiation Checklist, at Attachment III, Analysis 
of Allegations and Evidence of Material Injury and Causation for the 
Antidumping and Countervailing Duty Petitions Covering Carbon and 
Certain Alloy Steel Wire Rod from the People's Republic of China.
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Initiation of Countervailing Duty Investigation

    Section 702(b)(1) of the Act requires the Department to initiate a 
CVD investigation whenever an interested

[[Page 11087]]

party files a CVD 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 supporting the allegations. In the petition, the 
petitioners allege that producers/exporters of steel wire rod in the 
PRC benefited from countervailable subsidies bestowed by the 
government. The Department has examined the petition and finds that it 
complies with the requirements of section 702(b)(1) of the Act. 
Therefore, in accordance with section 702(b)(1) of the Act, we are 
initiating a CVD investigation to determine whether manufacturers, 
producers, or exporters of steel wire rod from the PRC receive 
countervailable subsidies from the government.
    Based on our review of the petition, we find that there is 
sufficient information to initiate a CVD investigation on certain 
alleged programs. For a full discussion of the basis for our decision 
to initiate or not initiate on each program, see PRC CVD Initiation 
Checklist.
    A public version of the initiation checklist is available on IA 
ACCESS and at https://trade.gov/enforcement/news.asp.

Respondent Selection

    For this investigation, the Department intends to select 
respondents based on U.S. Customs and Border Protection (CBP) data for 
U.S. imports of subject merchandise during the POI under the following 
Harmonized Tariff Schedule of the United States (HTS) numbers: 
7213.91.3011, 7213.91.3015, 7213.91.3020, 7213.91.3093; 7213.91.4500, 
7213.91.6000, 7213.99.0030, 7227.20.0030, 7227.20.0080, 7227.90.6010, 
7227.90.6020, 7227.90.6030, 7227.90.6035, and 7227.90.6085.\21\ We 
intend to release the CBP data under Administrative Protective Order 
(APO) to all parties with access to information protected by APO 
shortly after the announcement of this case initiation. Interested 
parties must submit applications for disclosure under APO in accordance 
with 19 CFR 351.305(b). Instructions for filing such applications may 
be found at https://enforcement.trade.gov/apo/.
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    \21\ While HTS number 7227.90.6085 is not included in the scope, 
information in the petition indicates that certain subject 
merchandise was classified under this number during the POI. See 
Volume I of the Petition, at 8.
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    Interested parties may submit comments regarding the CBP data and 
respondent selection by 5:00 p.m. EST on the seventh calendar day after 
publication of this notice. Comments must be filed in accordance with 
the filing requirements stated above. If respondent selection is 
necessary, we intend to base our decision regarding respondent 
selection upon comments received from interested parties and our 
analysis of the record information within 20 days of publication of 
this 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), copies of the public version of the petitions have been 
provided to the GOC via IA ACCESS. To the extent practicable, we will 
attempt to provide a copy of the public version of the petition to each 
known exporter (as named in the petition), as provided in 19 CFR 
351.203(c)(2).

ITC Notification

    We 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 steel wire rod from the PRC are materially 
injuring, or threatening material injury to, a U.S. industry.\22\ A 
negative ITC determination will result in the investigation being 
terminated; otherwise, this investigation will proceed according to 
statutory and regulatory time limits.
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    \22\ See section 703(a) of the Act.
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Submission of Factual Information

    On April 10, 2013, the Department published Definition of Factual 
Information and Time Limits for Submission of Factual Information: 
Final Rule, 78 FR 21246 (April 10, 2013), which modified two 
regulations related to AD and CVD proceedings: The definition of 
factual information (19 CFR 351.102(b)(21)), and the time limits for 
the submission of factual information (19 CFR 351.301). The final rule 
identifies five categories of factual information in 19 CFR 
351.102(b)(21), which are summarized as follows: (i) Evidence submitted 
in response to questionnaires; (ii) evidence submitted in support of 
allegations; (iii) publicly available information to value factors 
under 19 CFR 351.408(c) or to measure the adequacy of remuneration 
under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by the 
Department; and (v) evidence other than factual information described 
in (i)-(iv). The final rule requires any party, when submitting factual 
information, to specify under which subsection of 19 CFR 351.102(b)(21) 
the information is being submitted and, if the information is submitted 
to rebut, clarify, or correct factual information already on the 
record, to provide an explanation identifying the information already 
on the record that the factual information seeks to rebut, clarify, or 
correct. The final rule also modified 19 CFR 351.301 so that, rather 
than providing general time limits, there are specific time limits 
based on the type of factual information being submitted. These 
modifications are effective for all segments initiated on or after May 
10, 2013, and thus are applicable to this investigation. Please review 
the final rule, available at https://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt, prior to submitting factual information in this 
investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\23\ 
Parties are hereby reminded that the Department issued a final rule 
with respect to certification requirements, effective August 16, 2013. 
Parties are hereby reminded that revised certification requirements are 
in effect for company/government officials as well as their 
representatives. All segments of any AD or CVD proceedings initiated on 
or after August 16, 2013, should use the formats for the revised 
certifications provided at the end of the Final Rule.\24\ The 
Department intends to reject factual submissions if the submitting 
party does not comply with the applicable revised certification 
requirements.
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    \23\ See section 782(b) of the Act.
    \24\ See Certification of Factual Information To Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also the 
frequently asked questions regarding the Final Rule, available at 
the following: https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Extension of Time Limits

    On September 20, 2013, the Department published Extension of Time 
Limits, Final Rule, 78 FR 57790 (September 20, 2013), which modified 
one regulation related to AD and CVD proceedings regarding the 
extension of time limits for submissions in such proceedings (19 CFR 
351.302(c)). These modifications are effective for all segments 
initiated on or after October 21, 2013, and thus are applicable to this 
investigation. Please review the final rule, available at https://
www.gpo.gov/

[[Page 11088]]

fdsys/pkg/FR-2013-09-20/html/2013-22853.htm prior to requesting an 
extension.

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, the 
Department published Antidumping and Countervailing Duty Proceedings: 
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 
22, 2008). 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)).
    This notice is issued and published pursuant to section 777(i) of 
the Act.

    Dated: February 20, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is certain hot-
rolled products of carbon steel and alloy steel, in coils, of 
approximately circular cross section, less than 19.00 mm in actual 
solid cross-sectional diameter. Specifically excluded are steel 
products possessing the above-noted physical characteristics and 
meeting the Harmonized Tariff Schedule of the United States (HTSUS) 
definitions for (a) stainless steel; (b) tool steel; (c) high nickel 
steel; (d) ball bearing steel; or (e) concrete reinforcing bars and 
rods. Also excluded are free cutting steel (also known as free 
machining steel) products (i.e., products that contain by weight one 
or more of the following elements: 0.1 percent or more of lead, 0.05 
percent or more of bismuth, 0.08 percent or more of sulfur, more 
than 0.04 percent of phosphorus, more than 0.05 percent of selenium, 
or more than 0.01 percent of tellurium). All products meeting the 
physical description of subject merchandise that are not 
specifically excluded are included in this scope.
    The products under investigation are currently classifiable 
under subheadings 7213.91.3011, 7213.91.3015, 7213.91.3020, 
7213.91.3093; 7213.91.4500, 7213.91.6000, 7213.99.0030, 
7227.20.0030, 7227.20.0080, 7227.90.6010, 7227.90.6020, 
7227.90.6030, and 7227.90.6035 of the HTSUS. Products entered under 
subheadings 7213.99.0090 and 7227.90.6090 of the HTSUS also may be 
included in this scope if they meet the physical description of 
subject merchandise above. Although the HTSUS subheadings are 
provided for convenience and customs purposes, the written 
description of the scope of this proceeding is dispositive.

[FR Doc. 2014-04343 Filed 2-26-14; 8:45 am]
BILLING CODE 3510-DS-P

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