Carbon and Certain Alloy Steel Wire Rod From the People's Republic of China: Initiation of Antidumping Duty Investigation, 11077-11082 [2014-04345]
Download as PDF
Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices
Assessment Rates
Upon issuance of the final results, the
Department will determine, and U.S.
Customs and Border Protection (‘‘CBP’’)
shall assess, antidumping duties on all
appropriate entries. The Department
intends to issue assessment instructions
to CBP 15 days after the date of
publication of the final results of
review. The Department announced a
refinement to its assessment practice in
non-market economy (‘‘NME’’) cases.15
Pursuant to this refinement in practice,
for entries that were not reported by
companies examined during this
review, the Department will instruct
CBP to liquidate such entries at the
NME-wide rate. In addition, if the
Department determines that an exporter
under review had no shipments of the
subject merchandise, any suspended
entries that entered under that
exporter’s case number (i.e., at that
exporter’s rate) will be liquidated at the
NME-wide rate.16
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of antidumping duties
occurred and the subsequent assessment
of double antidumping duties.
This notice is published in
accordance with sections 751(a)(1) and
777(i)(1) of the Act, 19 CFR
351.221(b)(4).
Dated: February 20, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and
Compliance.
Appendix
List of Topics Discussed in the Preliminary
Decision Memorandum
1. Background
2. Scope of the Order
3. PRC Wide Entity
4. PRC Wide Entity Rate
5. Recommendation
[FR Doc. 2014–04353 Filed 2–26–14; 8:45 am]
mstockstill on DSK4VPTVN1PROD with NOTICES
Cash Deposit Requirements
The following cash deposit
requirements will be effective upon
publication of the final results of this
administrative review for shipments of
the subject merchandise from the PRC
entered, or withdrawn from warehouse,
for consumption on or after the
publication date, as provided by
sections 751(a)(2)(C) of the Act: (1) For
previously investigated or reviewed PRC
and non-PRC exporters that received a
separate rate in a prior segment of this
proceeding, the cash deposit rate will
continue to be the existing exporterspecific rate; (2) for all PRC exporters of
subject merchandise that have not been
found to be entitled to a separate rate
(i.e., the firms listed in footnote 14), the
cash deposit rate will be that for the
PRC-wide entity; and (3) for all non-PRC
exporters of subject merchandise which
have not received their own rate, the
cash deposit rate will be the rate
applicable to the PRC exporter that
supplied that non-PRC exporter. These
deposit requirements, when imposed,
shall remain in effect until further
notice.
BILLING CODE 3510–DS–P
Notification to Importers
This notice serves as a preliminary
reminder to the importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
The Petition
On January 31, 2014, the Department
of Commerce (Department) received an
antidumping duty (AD) petition
concerning imports of carbon and
certain alloy steel wire rod (steel wire
rod) from the People’s Republic of
China (PRC), officially filed in proper
form on behalf of ArcelorMittal USA
LLC, Charter Steel, Evraz Pueblo
(formerly Evraz Rocky Mountain Steel),
Gerdau Ameristeel US Inc., Keystone
15 For a full discussion of this practice, see NonMarket Economy Antidumping Proceedings:
Assessment of Antidumping Duties, 76 FR 65694
(October 24, 2011) (‘‘NME Assessment 2011’’).
16 See NME Assessment 2011, 76 FR 65694.
VerDate Mar<15>2010
17:58 Feb 26, 2014
Jkt 232001
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–012]
Carbon and Certain Alloy Steel Wire
Rod From the People’s Republic of
China: Initiation of Antidumping Duty
Investigation
Enforcement and Compliance,
formerly Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: February 27,
2014.
FOR FURTHER INFORMATION CONTACT:
Brian Smith and Terre Keaton
Stefanova, Office II, AD/CVD
Operations, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230;
telephone: (202) 482–1766 and (202)
482–1280, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
PO 00000
Frm 00004
Fmt 4703
Sfmt 4703
11077
Consolidated Industries, Inc., and Nucor
Corporation (collectively, ‘‘the
petitioners’’).1 The petitioners are
domestic producers of steel wire rod.
The AD Petition was accompanied by a
countervailing duty (CVD) petition
concerning imports of steel wire rod
from the PRC. On February 4, 2014, the
Department requested additional
information and clarification of certain
areas of the Petition, and on February 7
and 10, 2014, the petitioners filed a
response to each request, respectively.2
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
‘‘Act’’), the petitioners allege that
imports of steel wire rod from the PRC
are being, or are likely to be, sold in the
United States at less than fair value
within the meaning of section 731 of the
Act, and that such imports are
materially injuring, or threatening
material injury to, an industry in the
United States. Also, consistent with
section 732(b)(1) of the Act, the Petition
is accompanied by information
reasonably available to the petitioners in
support of their allegations.
The Department finds that the
petitioners filed this Petition on behalf
of the domestic industry because the
petitioners are interested parties as
defined in section 771(9)(C) of the Act.
The Department also finds that the
petitioners demonstrated sufficient
industry support with respect to the
initiation of the AD investigation that
the petitioners are requesting.3
Period of Investigation
The period of investigation (POI) is
July 1, 2013, through December 31,
2013, in accordance with 19 CFR
351.204(b)(1).
Scope of the Investigation
The product covered by this
investigation is steel wire rod from the
PRC. For a full description of the scope
of the investigation, please see the
‘‘Scope of the Investigation’’ in the
appendix to this notice.
1 See ‘‘Petition for the Imposition of Antidumping
and Countervailing Duties on Carbon and Certain
Alloy Steel Wire Rod from the People’s Republic of
China,’’ dated January 31, 2014 (hereafter referred
to as the ‘‘Petition’’); and the petitioners’ February
10, 2014, filing titled, ‘‘Petitioners’ Response to
Commerce Department Antidumping Supplemental
Questionnaire—Carbon and Certain Alloy Steel
Wire Rod from the People’s Republic of China’’
(PRC AD Supplement), at 1.
2 See the petitioners’ February 7, 2014, filing
titled, ‘‘Petition for the Imposition of Antidumping
Duties on Imports of Carbon and Certain Alloy Steel
Wire Rod from the People’s Republic of China:
Response to General Supplemental Questions’’
(General Issues Supplement); see also PRC AD
Supplement.
3 See ‘‘Determination of Industry Support for the
Petition’’ section, below.
E:\FR\FM\27FEN1.SGM
27FEN1
11078
Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices
Comments on the Scope of the
Investigation
During our review of the Petition, we
solicited information from the
petitioners to ensure that the proposed
scope language is an accurate reflection
of the product for which the domestic
industry is seeking relief. Moreover, as
discussed in the preamble to the
Department’s regulations,4 we are
setting aside a period for interested
parties to raise issues regarding product
coverage. The Department encourages
all interested parties to submit such
comments by March 12, 2014, which is
20 calendar days from the signature date
of this notice. All comments must be
filed on the record of the AD
investigation, as well as the concurrent
CVD investigation.
mstockstill on DSK4VPTVN1PROD with NOTICES
Comments on the Product
Characteristics for the AD
Questionnaire
The Department requests comments
from interested parties regarding the
appropriate physical characteristics of
steel wire rod to be reported in response
to the Department’s AD questionnaire.
This information will be used to
identify the key physical characteristics
of the merchandise under consideration
in order to report the relevant factors
and costs of production accurately, as
well as to develop appropriate productcomparison criteria. Interested parties
may provide any information or
comments that they believe are relevant
to the development of an accurate list of
physical characteristics. Specifically,
interested parties may provide
comments as to which characteristics
are appropriate to use as: (1) General
product characteristics and (2) productcomparison criteria. We note that it is
not always appropriate to use all
product characteristics as productcomparison criteria. We base productcomparison criteria on meaningful
commercial differences among products.
In other words, while there may be
some physical product characteristics
utilized by manufacturers to describe
steel wire rod, it may be that only a
select few product characteristics take
into account commercially meaningful
physical characteristics. In addition,
interested parties may comment on the
order in which the physical
characteristics should be used in
matching products. Generally, the
Department attempts to list the most
important physical characteristics first
and the least important characteristics
last.
4 See Antidumping Duties; Countervailing Duties;
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
VerDate Mar<15>2010
17:58 Feb 26, 2014
Jkt 232001
In order to consider the suggestions of
interested parties in developing and
issuing the AD questionnaire, we must
receive comments on product
characteristics no later than March 12,
2014. Rebuttal comments must be
received no later than March 19, 2014.
Filing Requirements
All comments and 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 IA ACCESS by 5 p.m.
on the due date. 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, U.S. Department of
Commerce, 14th Street and Constitution
Avenue NW., Washington, DC 20230,
and stamped with the date and time of
receipt by the deadline established by
the Department.5
Determination of Industry Support for
the Petition
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
the Department shall: (i) Poll the
industry or rely on other information in
order to determine if there is support for
the petition, as required by
subparagraph (A); or (ii) 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
5 19 CFR 351.303(b)(1). For assistance with IA
ACCESS, please visit https://iaaccess.trade.gov/
help.aspx. The IA Access handbook can be found
at https://iaaccess.trade.gov/help/Handbook%20on
%20Electronic%20Filing%20Procedures.pdf.
PO 00000
Frm 00005
Fmt 4703
Sfmt 4703
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,6 they do so
for different purposes and pursuant to a
separate and distinct statutory 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.7
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.8
In determining whether the
petitioners have standing under section
6 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)); see also
Algoma Steel, 688. F. Supp. at 644 (‘‘This division
of labor has been upheld even where it has resulted
in decisions which are difficult to reconcile, as
when the class of merchandise found by ITA to be
sold at LTFV affects several industries, not all of
which are found by ITC to be materially injured.’’)
(internal citation omitted).
8 See Antidumping Duty Investigation Initiation
Checklist: Carbon and Certain Alloy Steel Wire Rod
from the People’s Republic of China (AD 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.
7 See
E:\FR\FM\27FEN1.SGM
27FEN1
Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices
732(c)(4)(A) of the Act, we considered
the industry support data contained in
the Petition with reference to the
domestic like product as defined in the
‘‘Scope of Investigation’’ section above.
To establish industry support, the
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.9 We relied upon data
the petitioners provided for purposes of
measuring industry support.10
Based on information provided in the
Petition, supplemental submission, and
other information readily available to
the Department, we find that the
domestic producers who support the
Petition account for at least 25 percent
of the total production of the domestic
like product, in accordance with section
732(c)(4)(A)(i) of the Act.11 We further
find that the domestic producers 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, in accordance with section
732(c)(4)(A)(ii) of the Act.12
Accordingly, the Department
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 732(b)(1) of the
Act.13
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
demonstrated sufficient industry
support with respect to the AD
investigation that they are requesting
the Department initiate.14
mstockstill on DSK4VPTVN1PROD with NOTICES
Allegations and Evidence of Material
Injury and Causation
The petitioners allege that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise sold at less than normal
value (NV). In addition, the petitioners
allege that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.15
The petitioners contend that the
industry’s injured condition is
9 See Volume I of the Petition, at 4–5 and Exhibit
GEN–1.
10 See AD Initiation Checklist, at Attachment II.
11 Id.
12 Id.
13 Id.
14 Id.
15 See Volume I of the Petition, at 13 and Exhibit
INJ–1; see also General Issues Supplement, at 6.
VerDate Mar<15>2010
17:58 Feb 26, 2014
Jkt 232001
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.16 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.17
Allegation of Sales at Less Than Fair
Value
The following is a description of the
allegation of sales at less than fair value
upon which the Department based its
decision to initiate an investigation of
imports of steel wire rod from the PRC.
The sources of data for the deductions
and adjustments relating to U.S. price
and normal value are discussed in
greater detail in the AD Initiation
Checklist.
Export Price
The petitioners based export price
(EP) on three U.S. price quotes for steel
wire rod produced in the PRC and
offered for sale to U.S. customers during
the POI. To derive the ex-factory price,
the petitioners made deductions to U.S.
price, where applicable, for U.S. inland
freight and insurance, U.S. brokerage
and handling expenses, U.S. customs
duties, international freight and
insurance, foreign brokerage and
handling, and foreign inland freight.18
The petitioners also made an adjustment
to U.S. price for the unrebated portion
of the value-added tax charged on steel
wire rod in the PRC, consistent with the
Department’s methodological change
concerning treatment of VAT in nonmarket economy proceedings.19 The
petitioners made no other adjustments.
The petitioners estimated U.S. inland
freight (inclusive of insurance) based on
industry knowledge supported by a
declaration (i.e., barge rates) and/or
information obtained from
www.freightrateindex.com (i.e., truck
16 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.
17 See AD 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.
18 See AD Initiation Checklist.
19 Id.; see also Methodological Change for
Implementation of Section 772(c)(2)(B) of the Tariff
Act of 1930, as Amended, In Certain Non-Market
Economy Antidumping Proceedings, 77 FR 36481
(June 19, 2012).
PO 00000
Frm 00006
Fmt 4703
Sfmt 4703
11079
rates). The petitioners also estimated
U.S. brokerage and handling expenses
based on industry knowledge supported
by a declaration. The petitioners
calculated international freight
(inclusive of insurance) based on data
obtained from publicly available U.S.
import statistics for the average unit
value of insurance and freight for
imports of steel wire rod from the PRC
during the POI. The petitioners
calculated U.S. port fees (inclusive of
harbor maintenance and merchandise
processing fees) by applying the port fee
percentage to the U.S. price (net of all
freight and insurance charges). The
petitioners calculated foreign brokerage
and handling and foreign inland freight
using average charges (inclusive of
document fees, terminal handling and
port charges, and customs clearance
charges) for exports from the surrogate
country Indonesia,20 as published in
Doing Business 2014: Indonesia by the
World Bank.
Normal Value
The petitioners state that the
Department has treated the PRC as a
non-market economy (NME) country in
every proceeding in which the PRC has
been involved.21 The presumption of
NME status for the PRC has not been
revoked by the Department and,
therefore, in accordance with section
771(18)(C)(i) of the Act, remains in
effect for purposes of the initiation of
this investigation. Accordingly, the NV
of the product for the investigation is
appropriately based on factors of
production valued in a surrogate
market-economy country in accordance
with section 773(c) of the Act. In the
course of this investigation, all parties
will have the opportunity to provide
relevant information related to the
issues of the PRC’s NME status and
granting of separate rates to individual
exporters.
The petitioners contend that
Indonesia is the appropriate surrogate
country for the PRC because: (1) It is at
a level of economic development
comparable to that of the PRC; and (2)
it is a significant producer of
comparable merchandise.22 Based on
the information provided by the
petitioners, we conclude that it is
appropriate to use Indonesia as a
surrogate country for initiation
purposes.23 After initiation of this
investigation, interested parties will
have the opportunity to submit
20 See ‘‘Normal Value’’ section below for further
discussion of the selection of the surrogate country.
21 See Volume II of the Petition, at 1.
22 Id. at 1–2 and Exhibit PRC–2.
23 See AD Initiation Checklist.
E:\FR\FM\27FEN1.SGM
27FEN1
11080
Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
comments regarding surrogate country
selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an
opportunity to submit publicly available
information to value factors of
production (FOPs) within 30 days
before the scheduled date of the
preliminary determination.24
The petitioners calculated NV using
the Department’s NME methodology as
required by 19 CFR 351.202(b)(7)(i)(C)
and 19 CFR 351.408. The petitioners
based NV on the production experience
of a major U.S. producer, adjusted for
known differences, during the time
period July–December 2013.25 The
petitioners assert that, to the best of
their knowledge, their consumption
rates are similar to the consumption of
PRC producers.26
The petitioners valued the factors of
production using reasonably available,
public surrogate country data,
specifically, Indonesian import data
from the Global Trade Atlas (GTA) for
the period April 2013 through
September 2013, the most recent six
months of data available for Indonesia at
the time of filing the Petition.27 The
petitioners excluded from these GTA
import statistics imports from NME
countries, countries that maintain
broadly available export subsidies, and
any imports from ‘‘unspecified’’
countries.28 The petitioners added to the
Indonesian import values an average
inland freight charge reported for
importing goods into Indonesia, as
reported in Doing Business 2014:
Indonesia published by the World Bank.
The Department determines that the
surrogate values used by the petitioners
are reasonably available and, thus, are
acceptable for purposes of initiation.
The petitioners determined direct and
packing materials costs from Indonesian
import data from the GTA.29 The
petitioners applied certain conversion
factors to align the units of measure
with its own FOPs.30
The petitioners calculated labor using
a 2008 Indonesian wage rate from
LABORSTA, a labor database compiled
by the International Labor Organization,
and adjusted this rate for inflation using
the consumer price index (CPI) data for
24 See 19 CFR 351.301(c)(3)(i). Note that this is
the revised regulation published on April 10, 2013.
See https://enforcement.trade.gov/frn/2013/1304frn/
2013-08227.txt.
25 See Volume II of the Petition, at 6 and Exhibit
PRC–8, and PRC AD Supplement, at Exhibit PRC–
S8.
26 See AD Initiation Checklist.
27 See Volume II of the Petition, at Exhibit PRC–
12, and PRC AD Supplement, at Exhibit PRC–S12.
28 See PRC AD Supplement, at Exhibit PRC–S12.
29 Id. at 6–7 and Exhibit PRC–12.
30 Id. at Exhibit PRC–12, and PRC AD
Supplement, at Exhibit PRC–S12.
VerDate Mar<15>2010
17:58 Feb 26, 2014
Jkt 232001
Indonesia published by the
International Monetary Fund (IMF).31
The petitioners valued electricity
using a 2011 Indonesian industry
electricity rate from the 2012 Handbook
of Energy & Economic Statistics of
Indonesia, and adjusted the rate for
inflation using the wholesale price
index (WPI) data for Indonesia
published by the IMF.32
The petitioners valued natural gas
using a 2012 value from LNG World
News and used data from
www.chemlink.com to convert the value
and adjusted the value to the POI using
CPI data from the IMF.33
The petitioners did not include water
in their cost calculations because they
were unable to determine the quantity
usage amount.34
The petitioners calculated financial
ratios (i.e., factory overhead expenses,
selling, general, and administrative
expenses, and profit) based on the
financial statements of Betonjaya
Manunggal Tbk. (Betonjaya), an
Indonesian manufacturer of steel round
bar (a product that the petitioners claim
is comparable to steel wire rod), for the
year ending December 31, 2012.35
Fair Value Comparisons
Based on the data provided by the
petitioners, there is reason to believe
that imports of steel wire rod from the
PRC are being, or are likely to be, sold
in the United States at less than fair
value. Based on comparisons of EP to
NV in accordance with section 773(c) of
the Act, the petitioners calculated the
estimated dumping margins to be 99.32
to 110.25 percent with respect to
imports of steel wire rod from the
PRC.36
Initiation of AD Investigation
Based on our examination of the
Petition on steel wire rod from the PRC,
the Department finds that the Petition
meets the requirements of section 732 of
the Act. Therefore, we are initiating an
AD investigation to determine whether
imports of steel wire rod from the PRC
are being, or likely to be, sold in the
United States at less than fair value. In
accordance with section 733(b)(1)(A) of
the Act and 19 CFR 351.205(b)(1),
unless postponed, we will issue our
31 See Volume II of the Petition, at 8 and Exhibit
PRC–13.
32 See PRC AD Supplement, at 10 and Exhibit
PRC–16.
33 Id. at 10 and Exhibit PRC–17.
34 Id. at 9.
35 See Volume II of the Petition, at 8–9 and
Exhibit PRC–14, and PRC AD Supplement, at
Exhibit PRC–S14.
36 See PRC AD Supplement, at Exhibit PRC–S15A
through S15E.
PO 00000
Frm 00007
Fmt 4703
Sfmt 4703
preliminary determination no later than
140 days after the publication date of
this initiation. For a discussion of
evidence supporting our initiation
determination, see the AD Initiation
Checklist which accompanies this
notice.
Respondent Selection and Quantity and
Value Questionnaire
In accordance with our standard
practice for respondent selection in AD
investigations involving NME countries,
we intend to issue quantity and value
questionnaires to each potential
respondent named in the Petition,37 and
will base respondent selection on the
responses received. In addition, the
Department will post the quantity and
value questionnaire along with the filing
instructions on the Enforcement and
Compliance Web site (https://trade.gov/
enforcement/news.asp). Exporters and
producers of steel wire rod from the
PRC that do not receive quantity and
value questionnaires via mail may still
submit a quantity and value response,
and can obtain a copy from the
Enforcement and Compliance Web site.
The quantity and value questionnaire
must be submitted by all PRC exporters/
producers no later than March 13, 2014.
All quantity and value questionnaires
must be filed electronically using IA
ACCESS.
Separate Rates
In order to obtain separate rate status
in an NME AD investigation, exporters
and producers must submit a separate
rate application.38 The specific
requirements for submitting the separate
rate application in the PRC investigation
are outlined in detail in the application
itself, which will be available on the
Department’s Web site at https://
trade.gov/enforcement/news.asp on the
date of publication of this initiation
notice in the Federal Register. The
separate rate application will be due 60
days after the publication of this
initiation notice. For exporters and
producers who submit a separate rate
status application and have been
selected as mandatory respondents,
these exporters and producers will no
longer be eligible for consideration for
separate rate status unless they respond
to all parts of the Department’s AD
questionnaire as mandatory
37 See General Issues Supplement, at Exhibit
GEN–S5.
38 See Policy Bulletin 05.1: Separate—Rates
Practice and Application of Combination Rates in
Antidumping Investigation involving Non-Market
Economy Countries (April 5, 2005) (Separate Rates
and Combination Rates Bulletin), available on the
Department’s Web site at https://
enforcement.trade.gov/policy/).
E:\FR\FM\27FEN1.SGM
27FEN1
Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices
respondents. The Department requires
that the PRC respondents submit a
response to the separate rate application
by the deadline referenced above in
order to receive consideration for
separate rate status.
Use of Combination Rates
The Department will calculate
combination rates for certain
respondents that are eligible for a
separate rate in an NME investigation.
The Separate Rates and Combination
Rates Bulletin states:
{w}hile continuing the practice of assigning
separate rates only to exporters, all separate
rates that the Department will now assign in
its NME investigations will be specific to
those producers that supplied the exporter
during the period of investigation. Note,
however, that one rate is calculated for the
exporter and all of the producers which
supplied subject merchandise to it during the
period of investigation. This practice applies
both to mandatory respondents receiving an
individually calculated separate rate as well
as the pool of non-investigated firms
receiving the weighted-average of the
individually calculated rates. This practice is
referred to as the application of ‘‘combination
rates’’ because such rates apply to specific
combinations of exporters and one or more
producers. The cash-deposit rate assigned to
an exporter will apply only to merchandise
both exported by the firm in question and
produced by a firm that supplied the exporter
during the period of investigation.39
Distribution of Copies of the Petition
In accordance with section
732(b)(3)(A) of the Act, and 19 CFR
351.202(f), copies of the public version
of the Petition have been provided to
the Government of the PRC. Because of
the particularly large number of
producers/exporters identified in the
Petition, the Department considers the
service of the public version of the
Petition to the foreign producers/
exporters to be satisfied by the provision
of the public version of the Petition to
the Government of the PRC, consistent
with 19 CFR 351.203(c)(2).
ITC Notification
We notified the ITC of our initiation,
as required by section 732(d) of the Act.
mstockstill on DSK4VPTVN1PROD with NOTICES
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 materially
injure, or threaten material injury to, a
U.S. industry.40 A negative ITC
determination will result in the
investigation being terminated.41
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: (1)
The definition of factual information (19
CFR 351.102(b)(21)), and (2) 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 proceeding 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 for this
investigation.
Revised Extension of Time Limits
Regulation
On September 20, 2013, the
Department modified its regulation
concerning the extension of time limits
for submissions in AD and CVD
proceedings.42 The modification
clarifies that parties may request an
extension of time limits before a time
limit established under Part 351 expires,
11081
or as otherwise specified by the
Secretary. In general, an extension
request will be considered untimely if it
is filed after the time limit established
under Part 351 expires. For submissions
which are due from multiple parties
simultaneously, an extension request
will be considered untimely if it is filed
after 10:00 a.m. on the due date.
Examples include, but are not limited
to: (1) Case and rebuttal briefs, filed
pursuant to 19 CFR 351.309; (2) factual
information to value factors under
section 19 CFR 351.408(c), or to
measure the adequacy of remuneration
under section 19 CFR 351.511(a)(2),
filed pursuant to 19 CFR 351.301(c)(3)
and rebuttal, clarification and correction
filed pursuant to 19 CFR
351.301(c)(3)(iv); (3) comments
concerning the selection of a surrogate
country and surrogate values and
rebuttal; (4) comments concerning U.S.
Customs & Border Protection (CBP) data;
and (5) quantity and value
questionnaires. Under certain
circumstances, the Department may
elect to specify a different time limit by
which extension requests will be
considered untimely for submissions
which are due from multiple parties
simultaneously. In such a case, the
Department will inform parties in the
letter or memorandum setting forth the
deadline (including a specified time) by
which extension requests must be filed
to be considered timely. This
modification also requires that an
extension request must be made in a
separate, stand-alone submission, and
clarifies the circumstances under which
the Department will grant untimelyfiled requests for the extension of time
limits. These modifications are effective
for all segments initiated on or after
October 21, 2013. Please review
Extension of Time Limits; Final Rule,
available at https://www.gpo.gov/fdsys/
pkg/FR-2013-09-20/html/201322853.htm, prior to submitting factual
information in this segment.
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.43
Parties are hereby reminded that revised
certification requirements are in effect
for company/government officials as
well as their representatives in all AD or
CVD investigations or proceedings
initiated on or after August 16, 2013,
including this investigation.44 The
43 See
39 See
Separate Rates and Combination Rates
Bulletin at 6 (emphasis added).
40 See section 733(a) of the Act.
VerDate Mar<15>2010
17:58 Feb 26, 2014
Jkt 232001
41 Id.
42 See Extension of Time Limits, Final Rule, 78 FR
57790 (September 20, 2013).
PO 00000
Frm 00008
section 782(b) of the Act.
Certifications of Factual Information To
Import Administration During Antidumping and
44 See
Fmt 4703
Sfmt 4703
E:\FR\FM\27FEN1.SGM
Continued
27FEN1
11082
Federal Register / Vol. 79, No. 39 / Thursday, February 27, 2014 / Notices
formats for the revised certifications are
provided at the end of the Final Rule.
The Department intends to reject factual
submissions if the submitting party does
not comply with the revised
certification requirements.
Notification to Interested Parties
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 on the Department’s Web
site at https://enforcement.trade.gov/
apo/.
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
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. 2014–04345 Filed 2–26–14; 8:45 am]
BILLING CODE 3510–DS–P
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule).
VerDate Mar<15>2010
17:58 Feb 26, 2014
Jkt 232001
The Petitioners noted in their request
that this extension will provide
International Trade Administration
additional time for the Department to
[A–570–994, A–851–803, A–428–842, A–588– continue to gather additional
information from respondents and
871, A–580–871, A–455–804, A–821–821]
perform required analysis.
The Department has found no
Grain-Oriented Electrical Steel From
compelling reason to deny the request
the People’s Republic of China, the
and, therefore, in accordance with
Czech Republic, Germany, Japan, the
section 733(c)(1)(A) of the Act and 19
Republic of Korea, Poland, and the
CFR 351.205(e), the Department is
Russian Federation: Postponement of
postponing the deadline for the
Preliminary Determinations in the
preliminary determinations to no later
Antidumping Duty Investigations
than the 190th day after the date on
AGENCY: Enforcement and Compliance,
which the investigations were initiated,
formerly Import Administration,
or May 2, 2014. In accordance with
International Trade Administration,
section 735(a)(1) of the Act, the deadline
Department of Commerce.
for the final determinations of these
FOR FURTHER INFORMATION CONTACT:
investigations will continue to be 75
Steve Bezirganian or Robert James at
days after the date of the preliminary
(202) 482–1131 or (202) 482–0649,
determinations, unless postponed at a
respectively, AD/CVD Operations,
later date.
Office VI, Enforcement and Compliance,
This notice is issued and published
International Trade Administration,
pursuant to section 733(c)(2) of the Act
U.S. Department of Commerce, 14th
and 19 CFR 351.205(f)(1).
Street and Constitution Avenue NW.,
Dated: February 21, 2014.
Washington, DC 20230.
Paul Piquado,
SUPPLEMENTARY INFORMATION:
Assistant Secretary for Enforcement and
DEPARTMENT OF COMMERCE
Background
On October 24, 2013, the Department
of Commerce (the Department) initiated
the antidumping investigations on
grain-oriented electrical steel from the
People’s Republic of China, the Czech
Republic, Germany, Japan, the Republic
of Korea, Poland, and the Russian
Federation.1 The notice of initiation
stated that, unless postponed, the
Department would issue its preliminary
determinations for these investigations
no later than 140 days after the date of
the initiation in accordance with section
773(b)(1)(A) of the Tariff Act of 1930, as
amended (the Act), and 19 CFR
351.205(b)(1). The preliminary
determinations currently are due no
later than March 13, 2014.
Postponement of the Preliminary
Determinations
On February 10, 2014, more than 25
days before the scheduled preliminary
determinations, AK Steel Corporation,
Allegheny Ludlum, LLC, and the United
Steelworkers (the Petitioners), pursuant
to section 733(c)(1)(A) of the Act and 19
CFR 351.205(b)(2) and (e), made a
timely request for a 50-day
postponement of the preliminary
determinations in these investigations.2
1 See Grain-Oriented Electrical Steel From the
People’s Republic of China, the Czech Republic,
Germany, Japan, the Republic of Korea, Poland, and
the Russian Federation: Initiation of Antidumping
Duty Investigations, 78 FR 65283 (October 31,
2013).
2 See Letter from Petitioners to Secretary of
Commerce, ‘‘Antidumping Investigations of Grain-
PO 00000
Frm 00009
Fmt 4703
Sfmt 4703
Compliance.
[FR Doc. 2014–04351 Filed 2–26–14; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–890]
Wooden Bedroom Furniture From the
People’s Republic of China: Initiation
of Antidumping Duty New Shipper
Review
Enforcement and Compliance,
formerly Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: February 27,
2014.
SUMMARY: The Department of Commerce
(‘‘Department’’) determined that the
request described below for a new
shipper review of the antidumping duty
order on wooden bedroom furniture
(‘‘WBF’’) from the People’s Republic of
China (‘‘PRC’’) meets the statutory and
regulatory requirements for initiation.
The period of review (‘‘POR’’) for the
new shipper review is January 1, 2013
through December 31, 2013.
FOR FURTHER INFORMATION CONTACT:
Jonathan Hill, AD/CVD Operations,
Office IV, Enforcement and Compliance,
AGENCY:
Oriented Electrical Steel (‘‘GOES’’) from China,
Czech Republic, Germany, Japan, South Korea,
Poland, and Russia: Petitioners’ Request for
Extension of Preliminary Determination,’’ dated
February 10, 2014.
E:\FR\FM\27FEN1.SGM
27FEN1
Agencies
[Federal Register Volume 79, Number 39 (Thursday, February 27, 2014)]
[Notices]
[Pages 11077-11082]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-04345]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-012]
Carbon and Certain Alloy Steel Wire Rod From the People's
Republic of China: Initiation of Antidumping 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: Brian Smith and Terre Keaton
Stefanova, Office II, AD/CVD Operations, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 14th
Street and Constitution Avenue NW., Washington, DC 20230; telephone:
(202) 482-1766 and (202) 482-1280, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On January 31, 2014, the Department of Commerce (Department)
received an antidumping duty (AD) petition concerning imports of carbon
and certain alloy steel wire rod (steel wire rod) from the People's
Republic of China (PRC), officially 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 petitioners are domestic producers of steel wire
rod. The AD Petition was accompanied by a countervailing duty (CVD)
petition concerning imports of steel wire rod from the PRC. On February
4, 2014, the Department requested additional information and
clarification of certain areas of the Petition, and on February 7 and
10, 2014, the petitioners filed a response to each request,
respectively.\2\
---------------------------------------------------------------------------
\1\ See ``Petition for the Imposition of Antidumping and
Countervailing Duties on Carbon and Certain Alloy Steel Wire Rod
from the People's Republic of China,'' dated January 31, 2014
(hereafter referred to as the ``Petition''); and the petitioners'
February 10, 2014, filing titled, ``Petitioners' Response to
Commerce Department Antidumping Supplemental Questionnaire--Carbon
and Certain Alloy Steel Wire Rod from the People's Republic of
China'' (PRC AD Supplement), at 1.
\2\ See the petitioners' February 7, 2014, filing titled,
``Petition for the Imposition of Antidumping Duties on Imports of
Carbon and Certain Alloy Steel Wire Rod from the People's Republic
of China: Response to General Supplemental Questions'' (General
Issues Supplement); see also PRC AD Supplement.
---------------------------------------------------------------------------
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the ``Act''), the petitioners allege that imports of steel
wire rod from the PRC are being, or are likely to be, sold in the
United States at less than fair value within the meaning of section 731
of the Act, and that such imports are materially injuring, or
threatening material injury to, an industry in the United States. Also,
consistent with section 732(b)(1) of the Act, the Petition is
accompanied by information reasonably available to the petitioners in
support of their allegations.
The Department finds that the petitioners filed this Petition on
behalf of the domestic industry because the petitioners are interested
parties as defined in section 771(9)(C) of the Act. The Department also
finds that the petitioners demonstrated sufficient industry support
with respect to the initiation of the AD investigation that the
petitioners are requesting.\3\
---------------------------------------------------------------------------
\3\ See ``Determination of Industry Support for the Petition''
section, below.
---------------------------------------------------------------------------
Period of Investigation
The period of investigation (POI) is July 1, 2013, through December
31, 2013, in accordance with 19 CFR 351.204(b)(1).
Scope of the Investigation
The product covered by this investigation is steel wire rod from
the PRC. For a full description of the scope of the investigation,
please see the ``Scope of the Investigation'' in the appendix to this
notice.
[[Page 11078]]
Comments on the Scope of the Investigation
During our review of the Petition, we solicited information from
the petitioners to ensure that the proposed scope language is an
accurate reflection of the product for which the domestic industry is
seeking relief. Moreover, as discussed in the preamble to the
Department's regulations,\4\ we are setting aside a period for
interested parties to raise issues regarding product coverage. The
Department encourages all interested parties to submit such comments by
March 12, 2014, which is 20 calendar days from the signature date of
this notice. All comments must be filed on the record of the AD
investigation, as well as the concurrent CVD investigation.
---------------------------------------------------------------------------
\4\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997).
---------------------------------------------------------------------------
Comments on the Product Characteristics for the AD Questionnaire
The Department requests comments from interested parties regarding
the appropriate physical characteristics of steel wire rod to be
reported in response to the Department's AD questionnaire. This
information will be used to identify the key physical characteristics
of the merchandise under consideration in order to report the relevant
factors and costs of production accurately, as well as to develop
appropriate product-comparison criteria. Interested parties may provide
any information or comments that they believe are relevant to the
development of an accurate list of physical characteristics.
Specifically, interested parties may provide comments as to which
characteristics are appropriate to use as: (1) General product
characteristics and (2) product-comparison criteria. We note that it is
not always appropriate to use all product characteristics as product-
comparison criteria. We base product-comparison criteria on meaningful
commercial differences among products. In other words, while there may
be some physical product characteristics utilized by manufacturers to
describe steel wire rod, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, the Department attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaire, we must receive comments
on product characteristics no later than March 12, 2014. Rebuttal
comments must be received no later than March 19, 2014.
Filing Requirements
All comments and 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 IA ACCESS by 5 p.m. on the due date. 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, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230, and stamped with the
date and time of receipt by the deadline established by the
Department.\5\
---------------------------------------------------------------------------
\5\ 19 CFR 351.303(b)(1). For assistance with IA ACCESS, please
visit https://iaaccess.trade.gov/help.aspx. The IA Access handbook
can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
---------------------------------------------------------------------------
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) 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,\6\ they do so for different purposes and pursuant to a
separate and distinct statutory 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.\7\
---------------------------------------------------------------------------
\6\ See section 771(10) of the Act.
\7\ 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)); see
also Algoma Steel, 688. F. Supp. at 644 (``This division of labor
has been upheld even where it has resulted in decisions which are
difficult to reconcile, as when the class of merchandise found by
ITA to be sold at LTFV affects several industries, not all of which
are found by ITC to be materially injured.'') (internal citation
omitted).
---------------------------------------------------------------------------
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.\8\
---------------------------------------------------------------------------
\8\ See Antidumping Duty Investigation Initiation Checklist:
Carbon and Certain Alloy Steel Wire Rod from the People's Republic
of China (AD 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.
---------------------------------------------------------------------------
In determining whether the petitioners have standing under section
[[Page 11079]]
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of Investigation'' section above. To
establish industry support, the 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.\9\ We relied upon data the
petitioners provided for purposes of measuring industry support.\10\
---------------------------------------------------------------------------
\9\ See Volume I of the Petition, at 4-5 and Exhibit GEN-1.
\10\ See AD Initiation Checklist, at Attachment II.
---------------------------------------------------------------------------
Based on information provided in the Petition, supplemental
submission, and other information readily available to the Department,
we find that the domestic producers who support the Petition account
for at least 25 percent of the total production of the domestic like
product, in accordance with section 732(c)(4)(A)(i) of the Act.\11\ We
further find that the domestic producers 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, in accordance with section
732(c)(4)(A)(ii) of the Act.\12\ Accordingly, the Department determines
that the Petition was filed on behalf of the domestic industry within
the meaning of section 732(b)(1) of the Act.\13\
---------------------------------------------------------------------------
\11\ Id.
\12\ Id.
\13\ Id.
---------------------------------------------------------------------------
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 demonstrated
sufficient industry support with respect to the AD investigation that
they are requesting the Department initiate.\14\
---------------------------------------------------------------------------
\14\ Id.
---------------------------------------------------------------------------
Allegations and Evidence of Material Injury and Causation
The petitioners allege that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at less than normal value (NV). In addition, the
petitioners allege that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\15\
---------------------------------------------------------------------------
\15\ See Volume I of the Petition, at 13 and Exhibit INJ-1; see
also General Issues Supplement, at 6.
---------------------------------------------------------------------------
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.\16\ 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.\17\
---------------------------------------------------------------------------
\16\ 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.
\17\ See AD 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.
---------------------------------------------------------------------------
Allegation of Sales at Less Than Fair Value
The following is a description of the allegation of sales at less
than fair value upon which the Department based its decision to
initiate an investigation of imports of steel wire rod from the PRC.
The sources of data for the deductions and adjustments relating to U.S.
price and normal value are discussed in greater detail in the AD
Initiation Checklist.
Export Price
The petitioners based export price (EP) on three U.S. price quotes
for steel wire rod produced in the PRC and offered for sale to U.S.
customers during the POI. To derive the ex-factory price, the
petitioners made deductions to U.S. price, where applicable, for U.S.
inland freight and insurance, U.S. brokerage and handling expenses,
U.S. customs duties, international freight and insurance, foreign
brokerage and handling, and foreign inland freight.\18\ The petitioners
also made an adjustment to U.S. price for the unrebated portion of the
value-added tax charged on steel wire rod in the PRC, consistent with
the Department's methodological change concerning treatment of VAT in
non-market economy proceedings.\19\ The petitioners made no other
adjustments.
---------------------------------------------------------------------------
\18\ See AD Initiation Checklist.
\19\ Id.; see also Methodological Change for Implementation of
Section 772(c)(2)(B) of the Tariff Act of 1930, as Amended, In
Certain Non-Market Economy Antidumping Proceedings, 77 FR 36481
(June 19, 2012).
---------------------------------------------------------------------------
The petitioners estimated U.S. inland freight (inclusive of
insurance) based on industry knowledge supported by a declaration
(i.e., barge rates) and/or information obtained from
www.freightrateindex.com (i.e., truck rates). The petitioners also
estimated U.S. brokerage and handling expenses based on industry
knowledge supported by a declaration. The petitioners calculated
international freight (inclusive of insurance) based on data obtained
from publicly available U.S. import statistics for the average unit
value of insurance and freight for imports of steel wire rod from the
PRC during the POI. The petitioners calculated U.S. port fees
(inclusive of harbor maintenance and merchandise processing fees) by
applying the port fee percentage to the U.S. price (net of all freight
and insurance charges). The petitioners calculated foreign brokerage
and handling and foreign inland freight using average charges
(inclusive of document fees, terminal handling and port charges, and
customs clearance charges) for exports from the surrogate country
Indonesia,\20\ as published in Doing Business 2014: Indonesia by the
World Bank.
---------------------------------------------------------------------------
\20\ See ``Normal Value'' section below for further discussion
of the selection of the surrogate country.
---------------------------------------------------------------------------
Normal Value
The petitioners state that the Department has treated the PRC as a
non-market economy (NME) country in every proceeding in which the PRC
has been involved.\21\ The presumption of NME status for the PRC has
not been revoked by the Department and, therefore, in accordance with
section 771(18)(C)(i) of the Act, remains in effect for purposes of the
initiation of this investigation. Accordingly, the NV of the product
for the investigation is appropriately based on factors of production
valued in a surrogate market-economy country in accordance with section
773(c) of the Act. In the course of this investigation, all parties
will have the opportunity to provide relevant information related to
the issues of the PRC's NME status and granting of separate rates to
individual exporters.
---------------------------------------------------------------------------
\21\ See Volume II of the Petition, at 1.
---------------------------------------------------------------------------
The petitioners contend that Indonesia is the appropriate surrogate
country for the PRC because: (1) It is at a level of economic
development comparable to that of the PRC; and (2) it is a significant
producer of comparable merchandise.\22\ Based on the information
provided by the petitioners, we conclude that it is appropriate to use
Indonesia as a surrogate country for initiation purposes.\23\ After
initiation of this investigation, interested parties will have the
opportunity to submit
[[Page 11080]]
comments regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value factors of production (FOPs) within 30
days before the scheduled date of the preliminary determination.\24\
---------------------------------------------------------------------------
\22\ Id. at 1-2 and Exhibit PRC-2.
\23\ See AD Initiation Checklist.
\24\ See 19 CFR 351.301(c)(3)(i). Note that this is the revised
regulation published on April 10, 2013. See https://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt.
---------------------------------------------------------------------------
The petitioners calculated NV using the Department's NME
methodology as required by 19 CFR 351.202(b)(7)(i)(C) and 19 CFR
351.408. The petitioners based NV on the production experience of a
major U.S. producer, adjusted for known differences, during the time
period July-December 2013.\25\ The petitioners assert that, to the best
of their knowledge, their consumption rates are similar to the
consumption of PRC producers.\26\
---------------------------------------------------------------------------
\25\ See Volume II of the Petition, at 6 and Exhibit PRC-8, and
PRC AD Supplement, at Exhibit PRC-S8.
\26\ See AD Initiation Checklist.
---------------------------------------------------------------------------
The petitioners valued the factors of production using reasonably
available, public surrogate country data, specifically, Indonesian
import data from the Global Trade Atlas (GTA) for the period April 2013
through September 2013, the most recent six months of data available
for Indonesia at the time of filing the Petition.\27\ The petitioners
excluded from these GTA import statistics imports from NME countries,
countries that maintain broadly available export subsidies, and any
imports from ``unspecified'' countries.\28\ The petitioners added to
the Indonesian import values an average inland freight charge reported
for importing goods into Indonesia, as reported in Doing Business 2014:
Indonesia published by the World Bank. The Department determines that
the surrogate values used by the petitioners are reasonably available
and, thus, are acceptable for purposes of initiation.
---------------------------------------------------------------------------
\27\ See Volume II of the Petition, at Exhibit PRC-12, and PRC
AD Supplement, at Exhibit PRC-S12.
\28\ See PRC AD Supplement, at Exhibit PRC-S12.
---------------------------------------------------------------------------
The petitioners determined direct and packing materials costs from
Indonesian import data from the GTA.\29\ The petitioners applied
certain conversion factors to align the units of measure with its own
FOPs.\30\
---------------------------------------------------------------------------
\29\ Id. at 6-7 and Exhibit PRC-12.
\30\ Id. at Exhibit PRC-12, and PRC AD Supplement, at Exhibit
PRC-S12.
---------------------------------------------------------------------------
The petitioners calculated labor using a 2008 Indonesian wage rate
from LABORSTA, a labor database compiled by the International Labor
Organization, and adjusted this rate for inflation using the consumer
price index (CPI) data for Indonesia published by the International
Monetary Fund (IMF).\31\
---------------------------------------------------------------------------
\31\ See Volume II of the Petition, at 8 and Exhibit PRC-13.
---------------------------------------------------------------------------
The petitioners valued electricity using a 2011 Indonesian industry
electricity rate from the 2012 Handbook of Energy & Economic Statistics
of Indonesia, and adjusted the rate for inflation using the wholesale
price index (WPI) data for Indonesia published by the IMF.\32\
---------------------------------------------------------------------------
\32\ See PRC AD Supplement, at 10 and Exhibit PRC-16.
---------------------------------------------------------------------------
The petitioners valued natural gas using a 2012 value from LNG
World News and used data from www.chemlink.com to convert the value and
adjusted the value to the POI using CPI data from the IMF.\33\
---------------------------------------------------------------------------
\33\ Id. at 10 and Exhibit PRC-17.
---------------------------------------------------------------------------
The petitioners did not include water in their cost calculations
because they were unable to determine the quantity usage amount.\34\
---------------------------------------------------------------------------
\34\ Id. at 9.
---------------------------------------------------------------------------
The petitioners calculated financial ratios (i.e., factory overhead
expenses, selling, general, and administrative expenses, and profit)
based on the financial statements of Betonjaya Manunggal Tbk.
(Betonjaya), an Indonesian manufacturer of steel round bar (a product
that the petitioners claim is comparable to steel wire rod), for the
year ending December 31, 2012.\35\
---------------------------------------------------------------------------
\35\ See Volume II of the Petition, at 8-9 and Exhibit PRC-14,
and PRC AD Supplement, at Exhibit PRC-S14.
---------------------------------------------------------------------------
Fair Value Comparisons
Based on the data provided by the petitioners, there is reason to
believe that imports of steel wire rod from the PRC are being, or are
likely to be, sold in the United States at less than fair value. Based
on comparisons of EP to NV in accordance with section 773(c) of the
Act, the petitioners calculated the estimated dumping margins to be
99.32 to 110.25 percent with respect to imports of steel wire rod from
the PRC.\36\
---------------------------------------------------------------------------
\36\ See PRC AD Supplement, at Exhibit PRC-S15A through S15E.
---------------------------------------------------------------------------
Initiation of AD Investigation
Based on our examination of the Petition on steel wire rod from the
PRC, the Department finds that the Petition meets the requirements of
section 732 of the Act. Therefore, we are initiating an AD
investigation to determine whether imports of steel wire rod from the
PRC are being, or likely to be, sold in the United States at less than
fair value. In accordance with section 733(b)(1)(A) of the Act and 19
CFR 351.205(b)(1), unless postponed, we will issue our preliminary
determination no later than 140 days after the publication date of this
initiation. For a discussion of evidence supporting our initiation
determination, see the AD Initiation Checklist which accompanies this
notice.
Respondent Selection and Quantity and Value Questionnaire
In accordance with our standard practice for respondent selection
in AD investigations involving NME countries, we intend to issue
quantity and value questionnaires to each potential respondent named in
the Petition,\37\ and will base respondent selection on the responses
received. In addition, the Department will post the quantity and value
questionnaire along with the filing instructions on the Enforcement and
Compliance Web site (https://trade.gov/enforcement/news.asp). Exporters
and producers of steel wire rod from the PRC that do not receive
quantity and value questionnaires via mail may still submit a quantity
and value response, and can obtain a copy from the Enforcement and
Compliance Web site. The quantity and value questionnaire must be
submitted by all PRC exporters/producers no later than March 13, 2014.
All quantity and value questionnaires must be filed electronically
using IA ACCESS.
---------------------------------------------------------------------------
\37\ See General Issues Supplement, at Exhibit GEN-S5.
---------------------------------------------------------------------------
Separate Rates
In order to obtain separate rate status in an NME AD investigation,
exporters and producers must submit a separate rate application.\38\
The specific requirements for submitting the separate rate application
in the PRC investigation are outlined in detail in the application
itself, which will be available on the Department's Web site at https://trade.gov/enforcement/news.asp on the date of publication of this
initiation notice in the Federal Register. The separate rate
application will be due 60 days after the publication of this
initiation notice. For exporters and producers who submit a separate
rate status application and have been selected as mandatory
respondents, these exporters and producers will no longer be eligible
for consideration for separate rate status unless they respond to all
parts of the Department's AD questionnaire as mandatory
[[Page 11081]]
respondents. The Department requires that the PRC respondents submit a
response to the separate rate application by the deadline referenced
above in order to receive consideration for separate rate status.
---------------------------------------------------------------------------
\38\ See Policy Bulletin 05.1: Separate--Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving Non-Market Economy Countries (April 5, 2005) (Separate
Rates and Combination Rates Bulletin), available on the Department's
Web site at https://enforcement.trade.gov/policy/).
---------------------------------------------------------------------------
Use of Combination Rates
The Department will calculate combination rates for certain
respondents that are eligible for a separate rate in an NME
investigation. The Separate Rates and Combination Rates Bulletin
states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME investigations will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the period
of investigation. This practice applies both to mandatory
respondents receiving an individually calculated separate rate as
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is
referred to as the application of ``combination rates'' because such
rates apply to specific combinations of exporters and one or more
producers. The cash-deposit rate assigned to an exporter will apply
only to merchandise both exported by the firm in question and
produced by a firm that supplied the exporter during the period of
investigation.\39\
---------------------------------------------------------------------------
\39\ See Separate Rates and Combination Rates Bulletin at 6
(emphasis added).
---------------------------------------------------------------------------
Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act, and 19 CFR
351.202(f), copies of the public version of the Petition have been
provided to the Government of the PRC. Because of the particularly
large number of producers/exporters identified in the Petition, the
Department considers the service of the public version of the Petition
to the foreign producers/exporters to be satisfied by the provision of
the public version of the Petition to the Government of the PRC,
consistent with 19 CFR 351.203(c)(2).
ITC Notification
We notified the ITC of our initiation, as required by section
732(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 materially
injure, or threaten material injury to, a U.S. industry.\40\ A negative
ITC determination will result in the investigation being
terminated.\41\ Otherwise, this investigation will proceed according to
statutory and regulatory time limits.
---------------------------------------------------------------------------
\40\ See section 733(a) of the Act.
\41\ Id.
---------------------------------------------------------------------------
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: (1) The definition of
factual information (19 CFR 351.102(b)(21)), and (2) 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 proceeding 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 for this investigation.
Revised Extension of Time Limits Regulation
On September 20, 2013, the Department modified its regulation
concerning the extension of time limits for submissions in AD and CVD
proceedings.\42\ The modification clarifies that parties may request an
extension of time limits before a time limit established under Part 351
expires, or as otherwise specified by the Secretary. In general, an
extension request will be considered untimely if it is filed after the
time limit established under Part 351 expires. For submissions which
are due from multiple parties simultaneously, an extension request will
be considered untimely if it is filed after 10:00 a.m. on the due date.
Examples include, but are not limited to: (1) Case and rebuttal briefs,
filed pursuant to 19 CFR 351.309; (2) factual information to value
factors under section 19 CFR 351.408(c), or to measure the adequacy of
remuneration under section 19 CFR 351.511(a)(2), filed pursuant to 19
CFR 351.301(c)(3) and rebuttal, clarification and correction filed
pursuant to 19 CFR 351.301(c)(3)(iv); (3) comments concerning the
selection of a surrogate country and surrogate values and rebuttal; (4)
comments concerning U.S. Customs & Border Protection (CBP) data; and
(5) quantity and value questionnaires. Under certain circumstances, the
Department may elect to specify a different time limit by which
extension requests will be considered untimely for submissions which
are due from multiple parties simultaneously. In such a case, the
Department will inform parties in the letter or memorandum setting
forth the deadline (including a specified time) by which extension
requests must be filed to be considered timely. This modification also
requires that an extension request must be made in a separate, stand-
alone submission, and clarifies the circumstances under which the
Department will grant untimely-filed requests for the extension of time
limits. These modifications are effective for all segments initiated on
or after October 21, 2013. Please review Extension of Time Limits;
Final Rule, available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information in this
segment.
---------------------------------------------------------------------------
\42\ See Extension of Time Limits, Final Rule, 78 FR 57790
(September 20, 2013).
---------------------------------------------------------------------------
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\43\
Parties are hereby reminded that revised certification requirements are
in effect for company/government officials as well as their
representatives in all AD or CVD investigations or proceedings
initiated on or after August 16, 2013, including this
investigation.\44\ The
[[Page 11082]]
formats for the revised certifications are provided at the end of the
Final Rule. The Department intends to reject factual submissions if the
submitting party does not comply with the revised certification
requirements.
---------------------------------------------------------------------------
\43\ See section 782(b) of the Act.
\44\ See Certifications of Factual Information To Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule).
---------------------------------------------------------------------------
Notification to Interested Parties
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 on the Department's Web site at https://enforcement.trade.gov/apo/.
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. 2014-04345 Filed 2-26-14; 8:45 am]
BILLING CODE 3510-DS-P