Carbon and Alloy Steel Wire Rod From the Republic of South Africa: Affirmative Final Determination of Sales at Less Than Fair Value and Affirmative Finding of Critical Circumstances, 2141-2143 [2018-00572]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 83, Number 10 (Tuesday, January 16, 2018)]
[Notices]
[Pages 2141-2143]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00572]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-791-823]


Carbon and Alloy Steel Wire Rod From the Republic of South 
Africa: Affirmative Final Determination of Sales at Less Than Fair 
Value and Affirmative Finding of Critical Circumstances

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of carbon and alloy steel wire rod (wire rod) from the Republic of 
South Africa (South Africa) are being, or are likely to be, sold in the 
United States at less than fair value (LTFV). The final estimated 
weighted-average dumping margins of sales at LTFV are listed below in 
the section entitled ``Final Determination.'' The period of 
investigation (POI) is January 1, 2016, through December 31, 2016.

DATES: Applicable January 16, 2018.

FOR FURTHER INFORMATION CONTACT: Moses Song or John McGowan, AD/CVD 
Operations, Office VI, AD/CVD Operations, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-5041 
or (202) 482-3019, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On October 31, 2017, Commerce published the Preliminary 
Determination in the Federal Register.\1\ The petitioners in this 
investigation are Gerdau Ameristeel US Inc., Nucor Corporation, 
Keystone Consolidated Industries, Inc., and Charter Steel 
(collectively, the petitioners). The three mandatory respondents in 
this investigation are: (1) ArcelorMittal South Africa Limited (AMSA); 
(2) Scaw South Africa (Pty) Ltd. (also known as Scaw Metals Group) 
(Scaw); and (3) Davsteel Division of Cape Gate (Pty) Ltd. (Cape Gate). 
At the Preliminary Determination, Commerce determined that AMSA, Scaw, 
and Consolidated Wire Industries (CWI) are affiliated and constituted a 
single entity, i.e., AMSA/Scaw/CWI. Furthermore, we preliminarily found 
that the application of facts available with an adverse inference (AFA) 
to the collapsed entity, due to Scaw's failure to participate in this 
investigation, was warranted. Commerce also preliminarily determined 
that critical circumstances existed for AMSA/Scaw/CWI and for all-other 
exporters/producers of wire rod. Concerning Cape Gate, Commerce 
preliminarily determined not to further examine Cape Gate as part of 
this investigation because Cape Gate timely certified that it did not 
make any sales of subject merchandise in the United States during the 
POI and there is no record evidence to the contrary.
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    \1\ See Carbon and Alloy Steel Wire Rod from the Republic of 
South Africa: Preliminary Affirmative Determination of Sales at Less 
Than Fair Value, Preliminary Affirmative Determination of Critical 
Circumstances, and Preliminary Determination of No Shipments, 82 FR 
at 50383 (October 31, 2017) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum (PDM).
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
accompanying Issues and Decision Memorandum.\2\ The Issues and Decision 
Memorandum is a public document, and is on file electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov, and to all parties in the 
Central Records Unit, room B8024 of the main Department of Commerce 
building. In addition, a complete version of the Issues and Decision 
Memorandum can be accessed directly at https://enforcement.trade.gov. 
The signed and electronic versions of the Issues and Decision 
Memorandum are identical in content.
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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Carbon and Alloy Steel Wire Rod from the Republic 
of South Africa,'' dated concurrently with this determination and 
hereby adopted by this notice (Issues and Decision Memorandum or 
IDM).
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Scope of the Investigation

    The product covered by this investigation is wire rod from South 
Africa. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    During the course of this investigation, Commerce received numerous 
scope comments from interested parties. Prior to the Preliminary 
Determination, Commerce issued a Preliminary Scope Decision Memorandum 
to address these comments. As a result of these comments, Commerce made 
no changes

[[Page 2142]]

to the scope of this investigation as it appeared in the Initiation 
Notice.\3\
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    \3\ For discussion of these comments, see Memorandum, ``Carbon 
and Alloy Steel Wire Rod from Belarus, Italy, the Republic of Korea, 
the Russian Federation, South Africa, Spain, the Republic of Turkey, 
Ukraine, the United Arab Emirates, and the United Kingdom: Scope 
Comments Decision Memorandum for the Preliminary Determination'' 
(Preliminary Scope Decision Memorandum), dated August 7, 2017; see 
also Carbon and Alloy Steel Wire Rod from Belarus, Italy, the 
Republic of Korea, the Russian Federation, South Africa, Spain, the 
Republic of Turkey, Ukraine, United Arab Emirates, and United 
Kingdom: Initiation of Less-Than-Fair-Value Investigations, 82 FR 
19207 (April 20, 2017) (Initiation Notice).
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    In September 2017, we received scope case and rebuttal briefs. On 
November 20, 2017, we issued the Final Scope Decision Memorandum in 
response to these comments in which we did not change the scope of this 
investigation.\4\
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    \4\ For discussion of these comments, see Memorandum, ``Carbon 
and Alloy Steel Wire Rod from Belarus, Italy, the Republic of Korea, 
the Russian Federation, South Africa, Spain, the Republic of Turkey, 
Ukraine, the United Arab Emirates, and the United Kingdom: Final 
Scope Memorandum'' (Final Scope Decision Memorandum), dated November 
20, 2017.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by interested parties in this investigation are addressed in 
the Issues and Decision Memorandum. A list of these issues is attached 
to this notice at Appendix II.

Verification

    As explained in the Issues and Decision Memorandum, Commerce did 
not conduct verification of AMSA/Scaw/CWI.

Changes Since the Preliminary Determination and Use of Adverse Facts 
Available

    Commerce has made no changes to the Preliminary Determination. As 
stated in the Preliminary Determination, we found that the application 
of facts available with an adverse inference with respect to the 
collapsed entity, i.e., AMSA/Scaw/CWI, in this investigation, was 
warranted, in accordance with sections 776(a)(1), 776(a)(2)(A)-(C), and 
776(b) of the Act.\5\
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    \5\ See Preliminary Determination, 82 FR at 50383; see also PDM 
at 6-9.
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Final Affirmative Determination of No Sales

    As stated above in the ``Background'' section, at the Preliminary 
Determination, we found that Cape Gate had no sales of subject 
merchandise during the POI, and, therefore, we determined not to 
further examine Cape Gate as part of this investigation. Commerce 
received no comments regarding this issue after the Preliminary 
Determination. Thus, for this final determination, we continue to find 
that Cape Gate had no sales of subject merchandise during the POI. As 
such, any entries of subject merchandise exported by Cape Gate will be 
subject to the All-Others Rate.

Final Affirmative Determination of Critical Circumstances

    In accordance with section 733(e)(1) of the Act and 19 CFR 351.206, 
we preliminarily found that critical circumstances exist with respect 
to AMSA/Scaw/CWI, and all other producers and exporters of wire rod 
from South Africa (All Others).\6\ Commerce received no comments 
regarding this issue after the Preliminary Determination. Thus, for 
this final determination, we continue to find that, in accordance with 
section 735(a)(3) of the Act and 19 CFR 351.206, critical circumstances 
exist for imports from all producers and exporters of wire rod from 
South Africa.
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    \6\ See Preliminary Determination, 82 FR at 50383, 50384; see 
also PDM at 11-16.
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All-Others Rate

    As discussed in the Preliminary Determination, Commerce based the 
selection of the all-others rate on the simple average of the two 
dumping margins calculated for subject merchandise from South Africa 
alleged in the petition,\7\ in accordance with section 735(c)(5)(B) of 
the Act, and determined a rate of 135.46 percent. No parties commented 
on this issue and we made no changes to the all-others rate for this 
final determination.\8\
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    \7\ See the Petitions for the Imposition of Antidumping Duties 
on Carbon and Alloy Steel Wire Rod from Belarus, Italy, the Republic 
of Korea, the Russian Federation, the Republic of South Africa, 
Spain, Turkey, Ukraine, United Arab Emirates, and the United 
Kingdom, dated March 28, 2017 (the petition).
    \8\ See Preliminary Determination, 82 FR at 50383, 50384-50385.
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Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Exporter/producer                         dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
ArcelorMittal South Africa Limited, Scaw South Africa (Pty)       142.26
 Ltd. (also known as Scaw Metals Group), and Consolidated
 Wire Industries............................................
All-Others..................................................      135.46
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Disclosure

    The estimated weighted-average dumping margin assigned to the 
collapsed entity (i.e., AMSA/Scaw/CWI) in this investigation in the 
Preliminary Determination were based on adverse facts available and 
Commerce described the method it used to determine the adverse facts 
available rate in the Preliminary Determination. As we made no changes 
to this margin since the Preliminary Determination, no disclosure of 
calculations is necessary for this final determination.

Continuation of Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, for this final 
determination, we will direct U. S. Customs and Border Protection (CBP) 
to suspend liquidation of all entries of wire rod from South Africa, as 
described in Appendix I to this notice, which were entered, or 
withdrawn from warehouse, for consumption on or after August 2, 2017 
(90 days prior to the date of publication of the Preliminary 
Determination), because we continue to find that critical circumstances 
exist with regard to imports from all producers and exporters of wire 
rod from South Africa.
    Furthermore, Commerce will instruct CBP to require a cash deposit 
for such entries of merchandise. Pursuant to section 735(c)(1)(B)(ii) 
of the Act, CBP shall require a cash deposit equal to the weighted-
average amount by which normal value exceeds U.S. price, as follows: 
(1) For AMSA/Scaw/CWI, the cash deposit rate will be equal to the 
estimated weighted-average dumping margin which Commerce determined in 
this final determination; (2) if the exporter is not a firm identified 
in this investigation but the producer is, then the cash deposit rate 
will be equal to the estimated weighted-average dumping margin 
established for the producer of the subject merchandise; (3) the cash 
deposit rate for all other producers or exporters will be 135.46 
percent, as discussed in the ``All-Others Rate'' section, above.
    The instructions suspending liquidation will remain in effect until 
further notice.

U.S. International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of our final determination of 
sales at LTFV and final affirmative determination of critical 
circumstances for South Africa. Because the final determination in this 
proceeding is affirmative, the ITC will

[[Page 2143]]

make its final determination as to whether the domestic industry in the 
United States is materially injured, or threatened with material 
injury, by reason of imports, or sales (or the likelihood of sales) for 
importation of wire rod from South Africa no later than 45 days after 
this final determination, in accordance with section 735(b)(2) of the 
Act. If the ITC determines that such injury does not exist, the 
proceeding will be terminated and all cash deposits posted will be 
refunded or cancelled. If the ITC determines that such injury exists, 
Commerce will issue an antidumping duty order directing CBP to assess, 
upon further instruction by Commerce, antidumping duties on all imports 
of the subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation, as discussed above in the ``Continuation of Suspension of 
Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and the terms of an APO is a 
sanctionable violation.

Notification to Interested Parties

    These determinations are issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: January 8, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are certain hot-
rolled products of carbon steel and alloy steel, in coils, of 
approximately round 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 of more of lead, 0.05 
percent or more of bismuth, 0.08 percent or more of sulfur, more 
than 0.04 percent of phosphorous, 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 may also 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 these proceedings is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Discussion of the Issues:
    Comment 1: Affiliation and Collapsing of AMSA/Scaw/CWI
    Comment 2: Application of Total AFA to AMSA/Scaw/CWI
    Comment 3: Commerce's Statutory Obligations Under 782(d) of the 
Act
    Comment 4: Verification
    Comment 5: Adjustment to AMSA's General and Administrative (G&A) 
Expense Ratio
    Comment 6: Adjustment to AMSA's Warranty Expenses
    Comment 7: Adjustment to AMSA's Direct Selling Expenses
    Comment 8: Denial of AMSA's CEP Offset
VI. Recommendation

[FR Doc. 2018-00572 Filed 1-12-18; 8:45 am]
 BILLING CODE 3510-DS-P