Countervailing Duty Investigation of Carbon and Alloy Steel Wire Rod From Italy: Final Affirmative Determination, 13242-13244 [2018-06133]
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Federal Register / Vol. 83, No. 60 / Wednesday, March 28, 2018 / Notices
enforcement.trade.gov/frn/. The signed
Issues and Decision Memorandum and
the electronic version are identical in
content.
DEPARTMENT OF COMMERCE
International Trade Administration
[C–475–837]
Countervailing Duty Investigation of
Carbon and Alloy Steel Wire Rod From
Italy: Final Affirmative Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that
countervailable subsidies are being
provided to producers and exporters of
carbon and alloy steel wire rod (wire
rod) from Italy. The period of
investigation is January 1, 2016, through
December 31, 2016. For information on
the estimated subsidy rates, see the
‘‘Final Determination and Suspension of
Liquidation’’ section of this notice.
DATES: Applicable March 28, 2018.
FOR FURTHER INFORMATION CONTACT:
Yasmin Bordas, AD/CVD Operations,
Office VI, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone (202) 482–3813.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
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On September 5, 2017, Commerce
published the Preliminary
Determination.1 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 Issues and Decision
Memorandum, which is hereby adopted
by this notice.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 is
available 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://
1 See Carbon and Alloy Steel Wire Rod from Italy:
Preliminary Affirmative Countervailing Duty
Determination, 82 FR 41931 (September 5, 2017)
(Preliminary Determination).
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Determination in the
Countervailing Duty Investigation of Carbon and
Alloy Steel Wire Rod from Italy,’’ dated
concurrently with this determination and hereby
adopted by this notice (Issues and Decision
Memorandum).
VerDate Sep<11>2014
20:30 Mar 27, 2018
Jkt 244001
Scope of the Investigation
The product covered by this
investigation is wire rod from Italy. For
a complete description of the scope of
this investigation, see Appendix I.
Scope Comments
We invited parties to comment on
Commerce’s Preliminary Scope
Memorandum.3 Commerce reviewed the
briefs submitted by interested parties,
considered the arguments therein, and
determined not to make any changes to
the scope of the investigation. For
further discussion, see Commerce’s
Final Scope Decision Memorandum.4
Methodology
Commerce is conducting this
countervailing duty (CVD) investigation
in accordance with section 701 of the
Tariff Act of 1930, as amended (Act).
For each of the subsidy programs found
to be countervailable, we determine that
there is a subsidy (i.e., a financial
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient)
and that the subsidy is specific. For a
full description of the methodology
underlying our final determination, see
the Issues and Decisions Memorandum.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation, and the issues raised in
the case and rebuttal briefs submitted by
the parties, are discussed in the Issues
and Decision Memorandum. A list of
the issues that parties raised, and to
which we responded in the Issues and
Decision Memorandum, is attached to
this notice at Appendix II.
Verification
As provided in section 782(i) of the
Act, in January 2018, we conducted
verification of the questionnaire
responses submitted by Ferriere Nord
S.p.A. and the Government of Italy.
3 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 Determinations,’’ dated August 7, 2017,
and filed to ACCESS on August 7, 2017.
4 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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Fmt 4703
Sfmt 4703
We issued verification reports on
February 8, 2018.5 We used standard
verification procedures, including an
examination of relevant accounting and
financial records, and original source
documents provided by Ferriere Nord
S.p.A.
Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from parties,
and minor corrections presented at
verification, we made certain changes to
the respondents’ subsidy rate
calculations since the Preliminary
Determination. For a discussion of these
changes, see the Issues and Decision
Memorandum and the Final Calculation
Memorandum.6
Adverse Facts Available (AFA)
For purposes of this final
determination, we relied on facts
available, and because mandatory
respondent Ferriera Valsider S.p.A.
(Ferriera Valsider) did not act to the best
of its ability in responding to
Commerce’s requests for information,
we drew an adverse inference, where
appropriate, in selecting from among the
facts otherwise available.7 The subsidy
rate for Ferriera Valsider is based totally
on adverse facts available (AFA). A full
discussion of our decision to rely on
adverse facts available is presented in
the ‘‘Use of Facts Otherwise Available
and Adverse Inferences’’ section of the
Issues and Decisions Memorandum.
Final Determination
In accordance with section
705(c)(1)(B)(i) of the Act, we calculated
an individual rate for each producer/
exporter of the subject merchandise
individually investigated.
In accordance with section
705(c)(5)(A) of the Act, for companies
not individually investigated, we apply
an ‘‘all-others’’ rate, which is normally
calculated by weighting the subsidy
rates of the individual companies
selected as mandatory respondents by
those companies’ exports of the subject
merchandise to the United States. Under
5 See Commerce Memoranda, ‘‘Countervailing
Duty Investigation: Carbon and Alloy Steel Wire
Rod from Italy: Verification of the Questionnaire
Responses of Ferriere Nord S.p.A., Acciaierie di
Verona S.p.A. (AdV), SIAT S.p.A. (SIAT) and FIN
FER S.p.A. (FIN FER),’’ (Ferriere Nord Verification
Report) and ‘‘Countervailing Duty Investigation:
Carbon and Alloy Steel Wire Rod from Italy:
Verification of the Questionnaire Responses of the
Government of Italy,’’ (Government of Italy
Verification Report), both dated February 8, 2018.
6 See Memorandum, ‘‘Countervailing Duty
Investigation of Carbon and Alloy Steel Wire Rod
from Italy: Ferriere Nord S.p.A. Final Calculation
Memorandum,’’ dated March 19, 2018.
7 See sections 776(a) and (b) of the Act.
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Federal Register / Vol. 83, No. 60 / Wednesday, March 28, 2018 / Notices
section 705(c)(5)(A)(i) of the Act, the
‘‘all-others’’ rate excludes zero and de
minimis rates calculated for the
exporters and producers individually
investigated as well as rates based
entirely on facts otherwise available.
Where the rates for the individually
investigated companies are all zero or
de minimis, or determined entirely
using facts otherwise available, section
705(c)(5)(A)(ii) of the Act instructs
Commerce to establish an ‘‘all-others’’
rate using ‘‘any reasonable method.’’
Pursuant to section 705(c)(5)(A)(i) of
the Act, we have calculated the ‘‘allothers’’ rate using the subsidy rate of
Ferriere Nord, the only mandatory
respondent not receiving a subsidy rate
based totally on section 776 of the Act.
In this investigation, Commerce
assigned a rate based entirely on facts
available to Ferriera Valsider. Therefore,
the only rate that is not zero, de
minimis, or based entirely on facts
otherwise available, is the rate
calculated for Ferriere Nord.
Consequently, and consistent with
Commerce’s practice, the rate calculated
for Ferriere Nord is also assigned as the
rate for all-other producers and
exporters.
Company
Ferriere Nord S.p.A. 8 ...........
Ferriera Valsider S.p.A. ........
All-Others ..............................
International Trade Commission
Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
determination. In addition, we are
making available to the ITC all nonprivileged and non-proprietary
information related to this investigation.
We will allow the ITC access to all
privileged and business proprietary
information in our files, provided the
Subsidy rate
ITC confirms that it will not disclose
(percent)
such information, either publicly or
under an administrative protective order
4.16
44.18 (APO), without the written consent of
4.16 the Assistant Secretary for Enforcement
and Compliance.
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Disclosure
We intend to disclose to parties in
this proceeding the calculations
performed for this final determination
within five days of the date of public
announcement of our final
determination, in accordance with 19
CFR 351.224(b).
Suspension of Liquidation
As a result of our affirmative
Preliminary Determination, and
pursuant to sections 703(d)(1)(B) and (2)
of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend
liquidation of all entries of merchandise
under consideration from Italy that were
entered or withdrawn from warehouse,
for consumption, on or after September
5, 2017, the date of publication of the
Preliminary Determination in the
Federal Register. In accordance with
section 703(d) of the Act, effective
January 3, 2018, we instructed CBP to
discontinue the suspension of
8 As discussed in the Preliminary Decision
Memorandum, Commerce has found the following
companies to be cross-owned with Ferriere Nord:
FIN FER S.p.A.; Acciaierie di Verona S.p.A.; and
SIAT S.p.A.
VerDate Sep<11>2014
20:30 Mar 27, 2018
liquidation of all entries at that time, but
to continue the suspension of
liquidation of all entries from August 5,
2017, through January 2, 2018.
If the U.S. International Trade
Commission (the ITC) issues a final
affirmative injury determination, we
will issue a CVD order, will reinstate the
suspension of liquidation under section
706(a) of the Act, and will require a cash
deposit of estimated CVDs for such
entries of subject merchandise in the
amounts indicated above. If the ITC
determines that material injury, or
threat of material injury, does not exist,
this proceeding will be terminated and
all estimated duties deposited or
securities posted as a result of the
suspension of liquidation will be
refunded or canceled.
Jkt 244001
Notification Regarding Administrative
Protective Orders (APO)
In the event the ITC issues a final
negative injury determination, this
notice serves as the only reminder to
parties subject to an APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return 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.
Return or Destruction of Proprietary
Information
In the event the ITC issues a final
negative injury determination, this
notice serves as the only reminder to
parties subject to an APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return or
destruction of APO materials, or
conversion to judicial protective order,
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13243
is hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation subject to sanction.
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act.
Dated: March 19, 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 or 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 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.
Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Subsidies Valuation Information
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available and
Adverse Inferences
VIII. Analysis of Programs
IX. Analysis of Comments
Comment 1: Whether Commerce Should
Countervail SIAT’s Exemptions From
General Electricity Network Costs
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Comment 2: Whether the Energy
Interruptibility Contract Is a
Countervailable Subsidy
Comment 3: Whether the Purchase of
Electricity Through Interconnectors Are
Countervailable Subsidies
Comment 4: Selection of Benchmark To
Value Purchases of Electricity Through
Interconnectors
Comment 5: How To Calculate the Benefit
for Electricity Purchased Through
Interconnectors
Comment 6: Whether Commerce Should
Implement Verification Findings To
Make Corrections to Ferriere Nord’s
Sales Denominator and the Numerator
Used in the Interruptibility Contract
Subsidy Calculation
Comment 7: Whether Commerce Should
Countervail the Provision of Electricity
Interconnector Rights
Comment 8: Whether Commerce Should
Countervail Excise Tax Exemptions
Comment 9: Whether Commerce Should
Apply AFA to Ferriere Valsider
X. Recommendation
[FR Doc. 2018–06133 Filed 3–27–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–064]
Stainless Steel Flanges From People’s
Republic of China: Preliminary
Affirmative Determination of Sales at
Less Than Fair Value
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) preliminarily determines
that stainless steel flanges from People’s
Republic of China (China) are being, or
are likely to be, sold in the United States
at less than fair value (LTFV) during the
period of investigation (POI) January 1,
2017, through June 30, 2017.
DATES: Applicable March 28, 2018.
FOR FURTHER INFORMATION CONTACT:
Trenton Duncan or Carrie Bethea, AD/
CVD Operations, Office V, Enforcement
and Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–3539 or (202) 482–1491,
respectively.
daltland on DSKBBV9HB2PROD with NOTICES
AGENCY:
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is
made in accordance with section 733(b)
of the Tariff Act of 1930, as amended
(the Act). Commerce published the
notice of initiation of this investigation
VerDate Sep<11>2014
20:30 Mar 27, 2018
Jkt 244001
on September 11, 2017.1 On January 9,
2018, Commerce postponed the
preliminary determination of this
investigation.2 Commerce has exercised
its discretion to toll deadlines for the
duration of the closure of the Federal
Government from January 20 through
22, 2018.3 If the new deadline falls on
a non-business day, in accordance with
Commerce’s practice, the deadline will
become the next business day. The
revised deadline for the preliminary
determination of this investigation is
now March 19, 2018.
For a complete description of the
events that followed the initiation of
this investigation, see the Preliminary
Decision Memorandum.4 A list of topics
included in the Preliminary Decision
Memorandum is included as Appendix
II to this notice. The Preliminary
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 Preliminary Decision
Memorandum can be accessed directly
at https://enforcement.trade.gov/frn/.
The signed and the electronic versions
of the Preliminary Decision
Memorandum are identical in content.
Scope of the Investigation
The products covered by this
investigation are stainless steel flanges
from China. For a complete description
of the scope of this investigation see
Appendix I to this notice.
1 See Stainless Steel Flanges from India and the
People’s Republic of China: Initiation of Less-ThanFair-Value Investigations, 82 FR 42649 (September
11, 2017) (Initiation Notice).
2 See Stainless Steel Flanges from India and the
People’s Republic of China: Postponement of
Preliminary Determinations in the Less-Than-FairValue Investigations, 83 FR 1025 (January 9, 2018).
3 See Memorandum, for The Record from
Christian Marsh, Deputy Assistant Secretary for
Enforcement and Compliance, performing the nonexclusive functions and duties of the Assistant
Secretary for Enforcement and Compliance,
‘‘Deadlines Affected by the Shutdown of the
Federal Government,’’ (Tolling Memorandum),
dated January 23, 2018. All deadlines in this
segment of the proceeding have been extended by
3 days.
4 See Memorandum, ‘‘Decision Memorandum for
the Preliminary Determination in the Less-ThanFair-Value Investigation of Stainless Steel Flanges
from People’s Republic of China,’’ dated
concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
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Scope Comments
In accordance with the preamble to
Commerce’s regulations,5 the Initiation
Notice set aside a period of time for
parties to raise issues regarding product
coverage (scope).6 No interested party
commented on the scope of the
investigation as it appeared in the
Initiation Notice. Commerce is not
preliminarily modifying the scope
language as it appeared in the Initiation
Notice. See the scope in Appendix I to
this notice.
Methodology
Commerce is conducting this
investigation in accordance with section
731 of the Act. Pursuant to section
776(a) and (b) of the Act, Commerce
preliminarily has relied upon facts
otherwise available, with adverse
inferences, for mandatory respondent,
Shanxi Guanjiaying Flange Forging
Group Co., Ltd (GJY). Hydro-Fluids
Controls Limited (HFC), Songhai Flange
Manufacturing Co., Ltd (Songhai), and
Dongtai QB Stainless Steel Co., Ltd
(Dongtai) were also selected as
mandatory respondents, however, these
companies withdrew from participation
in this investigation and did not
respond to our requests for information.
Therefore, HFC, Songhai, and Dongtai
have not demonstrated their eligibility
for a separate rate and Commerce
considers them to be part of the Chinawide entity. For a full description of the
methodology underlying Commerce’s
preliminary determination, see the
Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,7 Commerce
stated that it would calculate producer/
exporter combination rates for the
respondents that are eligible for a
separate rate in this investigation. Policy
Bulletin 05.1 describes this practice.8
Because Commerce used total facts
otherwise available with adverse
inferences in determining the rate for
the only respondent that demonstrated
eligibility for a separate rate in this
investigation, GJY, Commerce did not
calculate producer/exporter
combination rates for that company.
5 See Antidumping Duties; Countervailing Duties,
62 FR 27296, 27323 (May 19, 1997).
6 See Initiation Notice.
7 See Initiation Notice at 42652–53.
8 See Enforcement and Compliance’s Policy
Bulletin No. 05.1, regarding, ‘‘Separate-Rates
Practice and Application of Combination Rates in
Antidumping Investigations involving Non-Market
Economy Countries,’’ (April 5, 2005) (Policy
Bulletin 05.1), available on Commerce’s website at
https://enforcement.trade.gov/policy/bull05-1.pdf.
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]]>Agencies
[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Notices]
[Pages 13242-13244]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06133]
[[Page 13242]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-475-837]
Countervailing Duty Investigation of Carbon and Alloy Steel Wire
Rod From Italy: Final Affirmative Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of carbon and alloy steel wire rod (wire rod) from Italy. The period of
investigation is January 1, 2016, through December 31, 2016. For
information on the estimated subsidy rates, see the ``Final
Determination and Suspension of Liquidation'' section of this notice.
DATES: Applicable March 28, 2018.
FOR FURTHER INFORMATION CONTACT: Yasmin Bordas, AD/CVD Operations,
Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone (202) 482-3813.
SUPPLEMENTARY INFORMATION:
Background
On September 5, 2017, Commerce published the Preliminary
Determination.\1\ 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 Issues and Decision Memorandum, which is hereby adopted by
this notice.\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 is available 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/frn/. The
signed Issues and Decision Memorandum and the electronic version are
identical in content.
---------------------------------------------------------------------------
\1\ See Carbon and Alloy Steel Wire Rod from Italy: Preliminary
Affirmative Countervailing Duty Determination, 82 FR 41931
(September 5, 2017) (Preliminary Determination).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Carbon and Alloy Steel Wire Rod from Italy,'' dated concurrently
with this determination and hereby adopted by this notice (Issues
and Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is wire rod from Italy.
For a complete description of the scope of this investigation, see
Appendix I.
Scope Comments
We invited parties to comment on Commerce's Preliminary Scope
Memorandum.\3\ Commerce reviewed the briefs submitted by interested
parties, considered the arguments therein, and determined not to make
any changes to the scope of the investigation. For further discussion,
see Commerce's Final Scope Decision Memorandum.\4\
---------------------------------------------------------------------------
\3\ 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 Determinations,'' dated August 7, 2017, and
filed to ACCESS on August 7, 2017.
\4\ 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.
---------------------------------------------------------------------------
Methodology
Commerce is conducting this countervailing duty (CVD) investigation
in accordance with section 701 of the Tariff Act of 1930, as amended
(Act). For each of the subsidy programs found to be countervailable, we
determine that there is a subsidy (i.e., a financial contribution by an
``authority'' that gives rise to a benefit to the recipient) and that
the subsidy is specific. For a full description of the methodology
underlying our final determination, see the Issues and Decisions
Memorandum.
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation, and the issues raised in
the case and rebuttal briefs submitted by the parties, are discussed in
the Issues and Decision Memorandum. A list of the issues that parties
raised, and to which we responded in the Issues and Decision
Memorandum, is attached to this notice at Appendix II.
Verification
As provided in section 782(i) of the Act, in January 2018, we
conducted verification of the questionnaire responses submitted by
Ferriere Nord S.p.A. and the Government of Italy.
We issued verification reports on February 8, 2018.\5\ We used
standard verification procedures, including an examination of relevant
accounting and financial records, and original source documents
provided by Ferriere Nord S.p.A.
---------------------------------------------------------------------------
\5\ See Commerce Memoranda, ``Countervailing Duty Investigation:
Carbon and Alloy Steel Wire Rod from Italy: Verification of the
Questionnaire Responses of Ferriere Nord S.p.A., Acciaierie di
Verona S.p.A. (AdV), SIAT S.p.A. (SIAT) and FIN FER S.p.A. (FIN
FER),'' (Ferriere Nord Verification Report) and ``Countervailing
Duty Investigation: Carbon and Alloy Steel Wire Rod from Italy:
Verification of the Questionnaire Responses of the Government of
Italy,'' (Government of Italy Verification Report), both dated
February 8, 2018.
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, and minor corrections presented at verification, we made
certain changes to the respondents' subsidy rate calculations since the
Preliminary Determination. For a discussion of these changes, see the
Issues and Decision Memorandum and the Final Calculation Memorandum.\6\
---------------------------------------------------------------------------
\6\ See Memorandum, ``Countervailing Duty Investigation of
Carbon and Alloy Steel Wire Rod from Italy: Ferriere Nord S.p.A.
Final Calculation Memorandum,'' dated March 19, 2018.
---------------------------------------------------------------------------
Adverse Facts Available (AFA)
For purposes of this final determination, we relied on facts
available, and because mandatory respondent Ferriera Valsider S.p.A.
(Ferriera Valsider) did not act to the best of its ability in
responding to Commerce's requests for information, we drew an adverse
inference, where appropriate, in selecting from among the facts
otherwise available.\7\ The subsidy rate for Ferriera Valsider is based
totally on adverse facts available (AFA). A full discussion of our
decision to rely on adverse facts available is presented in the ``Use
of Facts Otherwise Available and Adverse Inferences'' section of the
Issues and Decisions Memorandum.
---------------------------------------------------------------------------
\7\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------
Final Determination
In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated an individual rate for each producer/exporter of the subject
merchandise individually investigated.
In accordance with section 705(c)(5)(A) of the Act, for companies
not individually investigated, we apply an ``all-others'' rate, which
is normally calculated by weighting the subsidy rates of the individual
companies selected as mandatory respondents by those companies' exports
of the subject merchandise to the United States. Under
[[Page 13243]]
section 705(c)(5)(A)(i) of the Act, the ``all-others'' rate excludes
zero and de minimis rates calculated for the exporters and producers
individually investigated as well as rates based entirely on facts
otherwise available. Where the rates for the individually investigated
companies are all zero or de minimis, or determined entirely using
facts otherwise available, section 705(c)(5)(A)(ii) of the Act
instructs Commerce to establish an ``all-others'' rate using ``any
reasonable method.''
Pursuant to section 705(c)(5)(A)(i) of the Act, we have calculated
the ``all-others'' rate using the subsidy rate of Ferriere Nord, the
only mandatory respondent not receiving a subsidy rate based totally on
section 776 of the Act. In this investigation, Commerce assigned a rate
based entirely on facts available to Ferriera Valsider. Therefore, the
only rate that is not zero, de minimis, or based entirely on facts
otherwise available, is the rate calculated for Ferriere Nord.
Consequently, and consistent with Commerce's practice, the rate
calculated for Ferriere Nord is also assigned as the rate for all-other
producers and exporters.
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
Ferriere Nord S.p.A. \8\................................ 4.16
Ferriera Valsider S.p.A................................. 44.18
All-Others.............................................. 4.16
------------------------------------------------------------------------
Disclosure
We intend to disclose to parties in this proceeding the
calculations performed for this final determination within five days of
the date of public announcement of our final determination, in
accordance with 19 CFR 351.224(b).
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\8\ As discussed in the Preliminary Decision Memorandum,
Commerce has found the following companies to be cross-owned with
Ferriere Nord: FIN FER S.p.A.; Acciaierie di Verona S.p.A.; and SIAT
S.p.A.
---------------------------------------------------------------------------
Suspension of Liquidation
As a result of our affirmative Preliminary Determination, and
pursuant to sections 703(d)(1)(B) and (2) of the Act, we instructed
U.S. Customs and Border Protection (CBP) to suspend liquidation of all
entries of merchandise under consideration from Italy that were entered
or withdrawn from warehouse, for consumption, on or after September 5,
2017, the date of publication of the Preliminary Determination in the
Federal Register. In accordance with section 703(d) of the Act,
effective January 3, 2018, we instructed CBP to discontinue the
suspension of liquidation of all entries at that time, but to continue
the suspension of liquidation of all entries from August 5, 2017,
through January 2, 2018.
If the U.S. International Trade Commission (the ITC) issues a final
affirmative injury determination, we will issue a CVD order, will
reinstate the suspension of liquidation under section 706(a) of the
Act, and will require a cash deposit of estimated CVDs for such entries
of subject merchandise in the amounts indicated above. If the ITC
determines that material injury, or threat of material injury, does not
exist, this proceeding will be terminated and all estimated duties
deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled.
International Trade Commission Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Notification Regarding Administrative Protective Orders (APO)
In the event the ITC issues a final negative injury determination,
this notice serves as the only reminder to parties subject to an APO of
their responsibility concerning the destruction of proprietary
information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return 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.
Return or Destruction of Proprietary Information
In the event the ITC issues a final negative injury determination,
this notice serves as the only reminder to parties subject to an APO of
their responsibility concerning the destruction of proprietary
information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return or destruction
of APO materials, or conversion to judicial protective order, is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation subject to sanction.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: March 19, 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 or 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 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.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Subsidies Valuation Information
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Analysis of Comments
Comment 1: Whether Commerce Should Countervail SIAT's Exemptions
From General Electricity Network Costs
[[Page 13244]]
Comment 2: Whether the Energy Interruptibility Contract Is a
Countervailable Subsidy
Comment 3: Whether the Purchase of Electricity Through
Interconnectors Are Countervailable Subsidies
Comment 4: Selection of Benchmark To Value Purchases of
Electricity Through Interconnectors
Comment 5: How To Calculate the Benefit for Electricity
Purchased Through Interconnectors
Comment 6: Whether Commerce Should Implement Verification
Findings To Make Corrections to Ferriere Nord's Sales Denominator
and the Numerator Used in the Interruptibility Contract Subsidy
Calculation
Comment 7: Whether Commerce Should Countervail the Provision of
Electricity Interconnector Rights
Comment 8: Whether Commerce Should Countervail Excise Tax
Exemptions
Comment 9: Whether Commerce Should Apply AFA to Ferriere
Valsider
X. Recommendation
[FR Doc. 2018-06133 Filed 3-27-18; 8:45 am]
BILLING CODE 3510-DS-P
