Carbon and Alloy Steel Threaded Rod From India, Taiwan, Thailand, and the People's Republic of China: Initiation of Less-Than-Fair-Value Investigations, 10034-10040 [2019-05136]
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Federal Register / Vol. 84, No. 53 / Tuesday, March 19, 2019 / Notices
that it requests postponement of the
preliminary determinations of these
investigations to allow Commerce and
the parties to fully develop and review
the record and relevant issues in
anticipation of the preliminary
determinations.5
For the reasons stated above, and
because there are no compelling reasons
to deny the request, Commerce, in
accordance with section 733(c)(1)(A) of
the Act, is postponing the deadline for
the preliminary determinations by 50
days (i.e., 190 days after the date on
which these investigations were
initiated plus 40 days for tolling). As a
result, Commerce will issue its
preliminary determinations no later
than May 28, 2019. In accordance with
section 735(a)(1) of the Act and 19 CFR
351.210(b)(1), the deadline for the final
determinations of these investigations
will continue to be 75 days after the
date of publication of the preliminary
determinations, unless postponed at a
later date.
This notice is issued and published
pursuant to section 733(c)(2) of the Act
and 19 CFR 351.205(f)(1).
Dated: March 13, 2019.
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.
[FR Doc. 2019–05005 Filed 3–18–19; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–104, A–533–887, A–583–865, A–549–
840]
Carbon and Alloy Steel Threaded Rod
From India, Taiwan, Thailand, and the
People’s Republic of China: Initiation
of Less-Than-Fair-Value Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable March 13, 2019.
FOR FURTHER INFORMATION CONTACT:
Annathea Cook at (202) 482–0250
(India); Nicholas Czajkowskiat (202)
482–1395 (Taiwan); Kabir Archuletta at
(202) 482–2593 (Thailand); Andre
Gziyran at (202) 482–2201 (the People’s
Republic of China (China)); AD/CVD
Operations, Enforcement and
Compliance, International Trade
AGENCY:
Mexico: Petitioner’s Request to Extend Preliminary
Determinations,’’ dated March 8, 2019 (Requests for
Postponement).
5 See Requests for Postponement.
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Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On February 21, 2019, the U.S.
Department of Commerce (Commerce)
received antidumping duty (AD)
petitions concerning imports of carbon
and alloy steel threaded rod (steel
threaded rod) from India, Taiwan,
Thailand, and China.1 The AD Petitions,
as amended, were filed in proper form
by Vulcan Threaded Products Inc. (the
petitioner).2 The AD Petitions, as
amended, were accompanied by
countervailing duty (CVD) petitions
concerning imports of steel threaded rod
from India and China.
On February 26, March 4, and March
6, 2019, Commerce requested
supplemental information pertaining to
certain aspects of the AD Petitions in
separate supplemental questionnaires.3
Responses to the supplemental
questionnaires were filed on February
28, March 6, and March 7, 2019.4
1 See
the Petitioner’s Letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties: Carbon and Alloy Steel Threaded Rod from
the People’s Republic of China, India, Taiwan, and
Thailand,’’ dated February 21, 2019 (the AD
Petitions).
2 See the Petitioner’s Letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties: Carbon and Alloy Steel Threaded Rod from
the People’s Republic of China, India, Taiwan, and
Thailand: Clarification of Petitioner’s Name,’’ dated
March 1, 2019.
3 See Commerce Letters, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties on Imports of Carbon and Alloy Steel
Threaded Rod from the People’s Republic of China,
India, Taiwan, and Thailand: Supplemental
Questions;’’ ‘‘Petition for the Imposition of
Antidumping Duties on Imports of Carbon and
Alloy Steel Threaded Rod from India: Supplemental
Questions;’’ ‘‘Petition for the Imposition of
Antidumping Duties on Imports of Carbon and
Alloy Steel Threaded Rod from Taiwan:
Supplemental Questions;’’ ‘‘Petition for the
Imposition of Antidumping Duties on Imports of
Carbon and Alloy Steel Threaded Rod from
Thailand: Supplemental Questions;’’ and ‘‘Petition
for the Imposition of Antidumping Duties on
Imports of Carbon and Alloy Steel Threaded Rod
from the People’s Republic of China: Supplemental
Questions.’’ All of these documents are dated
February 26, 2019. See also Commerce Letter,
‘‘Petition for the Imposition of Antidumping Duties
on Imports of Carbon and Alloy Steel Threaded Rod
from Thailand: Second Supplemental Questions,’’
dated March 4, 2019. See also Commerce’s Letter,
‘‘Petition for the Imposition of Antidumping Duties
on Imports of Carbon and Alloy Steel Threaded Rod
from Taiwan: Second Supplemental Questions,’’
dated March 4, 2019; and Memorandum, ‘‘Phone
Call with Counsel to the Petitioner,’’ dated March
6, 2019.
4 See the Petitioner’s Letters, ‘‘Carbon and Alloy
Steel Threaded Rod from India: Response to
Questionnaire on Antidumping Petition’’ (India AD
Supplement); ‘‘Carbon and Alloy Steel Threaded
Rod from Taiwan: Response to Questionnaire on
Antidumping Petition’’ (Taiwan AD Supplement);
‘‘Carbon and Alloy Steel Threaded Rod from
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In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioner alleges that imports
of steel threaded rod from India,
Taiwan, Thailand, and China are being,
or are likely to be, sold in the United
States at less than fair value (LTFV)
within the meaning of section 731 of the
Act, and that such imports are
materially injuring, or threatening
material injury to, the domestic industry
producing steel threaded rod in the
United States. Consistent with section
732(b)(1) of the Act, the AD Petitions, as
amended, are accompanied by
information reasonably available to the
petitioner supporting its allegations.
Commerce finds that the petitioner
filed the AD Petitions, as amended, on
behalf of the domestic industry, because
the petitioner is an interested party, as
defined in section 771(9)(C) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
support with respect to the initiation of
the requested AD investigations.5
Periods of Investigation
Because the AD Petitions, as
amended, were filed on February 21,
2019, pursuant to 19 CFR 351.204(b)(1),
the period of investigation (POI) for the
India, Taiwan, and Thailand
investigations is January 1, 2018,
through December 31, 2018. Because
China is a non-market economy (NME)
country, pursuant to 19 CFR
351.204(b)(1), the POI for the China
investigation is July 1, 2018, through
December 31, 2018.
Thailand: Response to Questionnaire on
Antidumping Petition’’ (Thailand AD Supplement);
and ‘‘Carbon and Alloy Steel Threaded Rod from
the People’s Republic of China: Response to
Questionnaire on Antidumping Petition’’ (China AD
Supplement). All of these documents are dated
February 28, 2019. See also the Petitioner’s Letter,
‘‘Carbon and Alloy Steel Threaded Rod from the
People’s Republic of China, India, Taiwan, and
Thailand: Response to General Issues
Questionnaire,’’ dated February 28, 2019 (General
Issues Supplement); see also the Petitioner’s Letter,
‘‘Petition for the Imposition of Antidumping Duties
on Imports of Carbon and Alloy Steel Threaded Rod
from Taiwan: Responses to Second Supplemental
Questions,’’ dated March 6, 2019 (Second Taiwan
AD Supplement); the Petitioner’s Letter, ‘‘Petition
for the Imposition of Antidumping Duties on
Imports of Carbon and Alloy Steel Threaded Rod
from Taiwan: Responses to Third Supplemental
Questions,’’ dated March 7, 2019 (Third Taiwan AD
Supplement); see also the Petitioner’s Letter,
‘‘Petition for the Imposition of Antidumping Duties
on Imports of Carbon and Alloy Steel Threaded Rod
from Thailand: Responses to Second Supplemental
Questions,’’ dated March 6, 2019 (Second Thailand
AD Supplement); see also ‘‘Petition for the
Imposition of Antidumping Duties on Imports of
Carbon and Alloy Steel Threaded Rod from
Thailand: Amended Calculations,’’ dated March 7,
2019 (Third Thailand AD Supplement).
5 See the AD Petitions at 2–3.
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Scope of the Investigations
The product covered by these
investigations is steel threaded rod from
India, Taiwan, Thailand, and China. For
a full description of the scope of these
investigations, see the Appendix to this
notice.
Scope Comments
During our review of the AD Petitions,
Commerce issued questions to, and
received responses from, the petitioner
pertaining to the proposed scope to
ensure that the scope language in the
AD Petitions, as amended, would be an
accurate reflection of the products for
which the domestic industry is seeking
relief.6
As discussed in the Preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(scope).7 Commerce will consider all
comments received from interested
parties and, if necessary, will consult
with interested parties prior to the
issuance of the preliminary
determinations. If scope comments
include factual information,8 all such
factual information should be limited to
public information. To facilitate
preparation of its questionnaires,
Commerce requests that all interested
parties submit scope comments by 5:00
p.m. Eastern Time (ET) on April 2, 2019,
which is 20 calendar days from the
signature date of this notice. Any
rebuttal comments, which may include
factual information, must be filed by
5:00 p.m. ET on April 12, 2019, which
is 10 calendar days from the initial
comment deadline.9
Commerce requests that any factual
information parties consider relevant to
the scope of the investigations be
submitted during this period. However,
if a party subsequently finds that
additional factual information
pertaining to the scope of the
investigations may be relevant, the party
may contact Commerce and request
permission to submit the additional
information. All such submissions must
be filed on the records of the concurrent
AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be
filed electronically via Enforcement and
Compliance’s Antidumping Duty and
Countervailing Duty Centralized
6 See
General Issues Supplemental at 3–6.
Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
8 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
9 See 19 CFR 351.303(b).
7 See
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Electronic Service System (ACCESS).10
An electronically filed document must
be received successfully in its entirety
by the time and date it is due.
Documents exempted from the
electronic submission requirements
must be filed manually (i.e., in paper
form) with Enforcement and
Compliance’s APO/Dockets Unit, Room
18022, U.S. Department of Commerce,
1401 Constitution Avenue NW,
Washington, DC 20230, and stamped
with the date and time of receipt by the
applicable deadlines.
In order to consider the suggestions of
interested parties in developing and
issuing the AD questionnaires, all
product characteristics comments must
be filed by 5:00 p.m. ET on April 2,
2019, which is 20 calendar days from
the signature date of this notice.11 Any
rebuttal comments must be filed by 5:00
p.m. ET on April 12, 2019. All
comments and submissions to
Commerce must be filed electronically
using ACCESS, as explained above, on
the record of each of the AD
investigations.
Comments on Product Characteristics
Commerce is providing interested
parties an opportunity to comment on
the appropriate physical characteristics
of steel threaded rod to be reported in
response to Commerce’s AD
questionnaires. This information will be
used to identify the key physical
characteristics of the subject
merchandise in order to report the
relevant factors of production (FOPs)
accurately, as well as to develop
appropriate product-comparison
criteria.
Interested parties may provide any
information or comments that they feel
are relevant to the development of an
accurate list of physical characteristics.
Specifically, they 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, although there may be
some physical product characteristics
utilized by manufacturers to describe
steel threaded 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,
Commerce attempts to list the most
important physical characteristics first
and the least important characteristics
last.
Determination of Industry Support for
the AD Petitions
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,
Commerce 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) 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 Commerce to look to producers
and workers who produce the domestic
like product. The 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 Commerce and the
ITC must apply the same statutory
definition regarding the domestic like
product,12 they do so for different
purposes and pursuant to a separate and
distinct authority. In addition,
Commerce’s determination is subject to
limitations of time and information.
Although this may result in different
definitions of the like product, such
10 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014) for details
of Commerce’s electronic filing requirements,
effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/
help.aspx and a handbook can be found at https://
access.trade.gov/help/Handbook%20on%
20Electronic%20Filling%20Procedures.pdf.
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11 See
12 See
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19 CFR 351.303(b).
section 771(10) of the Act.
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differences do not render the decision of
either agency contrary to law.13
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 petitioner does not offer a
definition of the domestic like product
distinct from the scope of the AD
Petitions, as amended.14 Based on our
analysis of the information submitted on
the record, we have determined that
steel threaded rod, as defined in the
scope, constitutes a single domestic like
product, and we have analyzed industry
support in terms of that domestic like
product.15
In determining whether the petitioner
has standing under section 732(c)(4)(A)
of the Act, we considered the industry
support data contained in the AD
Petitions, as amended, with reference to
the domestic like product as defined in
the ‘‘Scope of the Investigations,’’ in the
Appendix to this notice. To establish
industry support, the petitioner
provided its own production of the
domestic like product in 2018, as well
as the 2018 production of Bay Standard
Manufacturing Inc. (Bay Standard), a
U.S. producer of steel threaded rod that
supports the AD Petitions, as
13 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)).
14 See Volume I of the AD Petitions at 8–12.
15 For a discussion of the domestic like product
analysis as applied to these cases and information
regarding industry support, see Antidumping Duty
Investigation Initiation Checklist: Carbon and Alloy
Steel Threaded Rod from the People’s Republic of
China (China AD Initiation Checklist), at
Attachment II, Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions
Covering Carbon and Alloy Steel Threaded Rod
from the People’s Republic of China, India, Taiwan,
and Thailand (Attachment II); see also
Antidumping Duty Investigation Initiation
Checklist: Carbon and Alloy Steel Threaded Rod
from India (India AD Initiation Checklist), at
Attachment II; see also Antidumping Duty
Investigation Initiation Checklist: Carbon and Alloy
Steel Threaded Rod from Taiwan (Taiwan AD
Initiation Checklist), at Attachment II; see also
Antidumping Duty Investigation Initiation
Checklist: Carbon and Alloy Steel Threaded Rod
from Thailand (Thailand AD Initiation Checklist), at
Attachment II. These checklists are dated
concurrently with, and hereby adopted by, this
notice and on file electronically via ACCESS.
Access to documents filed via ACCESS is also
available in the Central Records Unit, Room B8024
of the main Department of Commerce building.
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amended.16 The petitioner compared
the production of the supporters of the
AD Petitions, as amended, to the
estimated total production of the
domestic like product for the entire
domestic industry.17 We relied on data
provided by the petitioner and Bay
Standard for purposes of measuring
industry support.18
Our review of the data provided in the
AD Petitions, as amended, the General
Issues Supplement, the Letter of
Support, and other information readily
available to Commerce indicates that the
petitioner has established industry
support for the AD Petitions, as
amended.19 First, the AD Petitions, as
amended, established support from
domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).20 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(i) of the Act,
because the domestic producers (or
workers) who support the AD Petitions,
as amended, account for at least 25
percent of the total production of the
domestic like product.21 Finally, the
domestic producers (or workers) have
met the statutory criteria for industry
support under section 732(c)(4)(A)(ii) of
the Act, because the domestic producers
(or workers) who support the AD
Petitions, as amended, 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 AD
16 See Volume I of the Petitions, at Exhibit I–2;
see also Letter from Bay Standard, ‘‘Carbon and
Alloy Steel Threaded Rod from the People’s
Republic of China, India, Taiwan, and Thailand:
Support for the Petitions,’’ dated February 25, 2019
(Letter of Support), at Attachment I.
17 See General Issues Supplement, at 6 and
Exhibits 3 and 5.
18 Id. For further discussion, see China AD
Initiation Checklist at Attachment II; India AD
Initiation Checklist at Attachment II; Taiwan AD
Initiation Checklist at Attachment II; and Thailand
AD Initiation Checklist, at Attachment II.
19 See China AD Initiation Checklist, at
Attachment II; India AD Initiation Checklist, at
Attachment II; Taiwan AD Initiation Checklist, at
Attachment II; and Thailand AD Initiation
Checklist, at Attachment II.
20 See section 732(c)(4)(D) of the Act; see also
China AD Initiation Checklist, at Attachment II;
India AD Initiation Checklist, at Attachment II;
Taiwan AD Initiation Checklist, at Attachment II;
and Thailand AD Initiation Checklist, at
Attachment II.
21 See China AD Initiation Checklist, at
Attachment II; India AD Initiation Checklist, at
Attachment II; Taiwan AD Initiation Checklist, at
Attachment II; and Thailand AD Initiation
Checklist, at Attachment II.
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Petitions, as amended.22 Accordingly,
Commerce determines that the AD
Petitions, as amended, were filed on
behalf of the domestic industry within
the meaning of section 732(b)(1) of the
Act.
Commerce finds that the petitioner
filed the AD Petitions, as amended, on
behalf of the domestic industry, because
it is an interested party, as defined in
section 771(9)(C) of the Act, and it has
demonstrated sufficient industry
support with respect to the AD
investigations that it is requesting that
Commerce initiate.23
Allegations and Evidence of Material
Injury and Causation
The petitioner alleged 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 petitioner
alleges that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.24
The petitioner contends that the
industry’s injured condition is
illustrated by a significant and
increasing volume of subject imports;
reduced market share; underselling and
price suppression; decline in the
domestic industry’s capacity utilization;
the domestic industry’s lagging
production and shipments; decline in
the domestic industry’s financial
performance; and lost sales and
revenues.25 We have assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, causation, as well as
cumulation, and we have determined
that these allegations are properly
supported by adequate evidence, and
meet the statutory requirements for
initiation.26
Allegations of Sales at LTFV
The following is a description of the
allegation of sales at LTFV upon which
Commerce based its decision to initiate
AD investigations of imports of steel
threaded rod from India, Taiwan,
22 Id.
23 Id.
24 See Volume I of the Petitions, at 18 and Exhibit
I–14.
25 Id. at 15–35 and Exhibits I–3, I–4, I–10, I–11,
I–13, I–14 and I–16 through I–20.
26 See China 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 Alloy Steel Threaded Rod
from the People’s Republic of China, India, Taiwan,
and Thailand (Attachment III); see also India AD
Initiation Checklist, at Attachment III; Taiwan AD
Initiation Checklist, at Attachment III; and Thailand
AD Initiation Checklist, at Attachment III.
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Thailand, and China. The sources of
data for the deductions and adjustments
relating to U.S. price and normal value
(NV) are discussed in greater detail in
the AD Initiation Checklist for each
country.
Export Price
For India, Thailand, and China, the
petitioner based the U.S. price on export
price (EP) using average unit values
(AUVs) of publicly available import
data.27 For Taiwan, the petitioner based
U.S. price on pricing information for
steel threaded rod produced in, and
exported from, Taiwan and offered for
sale in the United States.28 Where
applicable, the petitioner made
deductions from U.S. price for
movement and other expenses,
consistent with the terms of sale.29
Normal Value
For India, the petitioner based NV on
home market prices obtained through
market research for steel threaded rod
produced in and sold, or offered for
sale, in India within the POI.
For Taiwan and Thailand, the
petitioner was unable to obtain
information relating to the prices
charged for steel threaded rod produced
and sold in the respective home markets
or third country prices; accordingly, the
petitioner based NV on constructed
value (CV).30 For further discussion of
CV, see the section ‘‘Normal Value
Based on Constructed Value’’ below.31
With respect to China, Commerce
considers China to be an NME
country.32 In accordance with section
771(18)(C)(i) of the Act, the
27 See India AD Initiation Checklist, China AD
Initiation Checklist; Thailand AD Initiation
Checklist.
28 See Taiwan AD Initiation Checklist.
29 See India AD Initiation Checklist, China AD
Initiation Checklist; Taiwan AD Initiation Checklist;
and Thailand AD Initiation Checklist
30 See Taiwan AD Initiation Checklist and
Thailand AD Initiation Checklist.
31 In accordance with section 505(a) of the Trade
Preferences Extension Act of 2015, amending
section 773(b)(2) of the Act, for this investigation,
Commerce will request information necessary to
calculate the CV and cost of production (COP) to
determine whether there are reasonable grounds to
believe or suspect that sales of the foreign like
product have been made at prices that represent
less than the COP of the product. Commerce no
longer requires a COP allegation to conduct this
analysis.
32 See Antidumping Duty Investigation of Certain
Aluminum Foil from the People’s Republic of
China: Affirmative Preliminary Determination of
Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861
(November 2, 2017), and accompanying decision
memorandum, China’s Status as a Non-Market
Economy, unchanged in Certain Aluminum Foil
from the People’s Republic of China: Final
Determination of Sales at Less Than Fair Value, 83
FR 9282 (March 5, 2018).
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presumption of NME status remains in
effect until revoked by Commerce.
Therefore, we continue to treat China as
an NME for purposes of the initiation of
this investigation. Accordingly, NV in
China is appropriately based on FOPs
valued in a surrogate market economy
country, in accordance with section
773(c) of the Act.33
The petitioner claims that Mexico is
an appropriate surrogate country for
China, because it is a market economy
country that is at a level of economic
development comparable to that of
China, it is a significant producer of
comparable merchandise, and public
information from Mexico is available to
value all material input factors.34 Based
on the information provided by the
petitioner, we determine that it is
appropriate to use Mexico as a surrogate
country for initiation purposes.
Interested parties will have the
opportunity to submit 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 FOPs within 30
days before the scheduled date of the
preliminary determination.
Interested parties will have the
opportunity to submit 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 FOPs within 30
days before the scheduled date of the
preliminary determination.
Factors of Production
Because information regarding the
volume of inputs consumed by the
Chinese producers/exporters is not
available, the petitioner relied on its
own production experience as an
estimate of Chinese manufacturers’
FOPs.35 The petitioner valued the
estimated FOPs using surrogate values
from Mexico and used the average POI
exchange rate to convert the data to U.S.
dollars.36
Normal Value Based on Constructed
Value
As noted above, the petitioner was
unable to obtain information relating to
the prices charged for steel threaded rod
produced in Taiwan and Thailand, or
third country prices; accordingly, the
petitioner based NV on CV.37 Pursuant
to section 773(e) of the Act, CV consists
of the cost of manufacturing (COM),
selling, general, and administrative
(SG&A) expenses, financial expenses,
packing expenses, and profit. For
Taiwan and Thailand, the petitioner
calculated the COM based on the input
factors of production and its own usage
rates. The input factors of production
were valued using publicly available
data on costs specific to Taiwan and
Thailand, during the proposed POI.38
Specifically, the prices for raw
materials, reclaimed steel scrap, and
packing inputs were valued using
publicly available import and domestic
price data for Taiwan and Thailand.39
Labor and energy costs were valued
using publicly available sources for
Taiwan and Thailand.40 The petitioner
calculated factory overhead, SG&A
expenses, financial expenses, and profit
for Taiwan and Thailand based on the
ratios found in the experience of a
producer of identical or comparable
merchandise from each of these
countries.41
Fair Value Comparisons
Based on the data provided by the AD
Petitions, as amended, there is reason to
believe that imports of steel threaded
rod from India, Taiwan, Thailand, and
China are being, or are likely to be, sold
in the United States at LTFV. Based on
comparisons of EP to NV in accordance
with sections 772 and 773 of the Act,
the estimated dumping margins for steel
threaded rod for each of the countries
covered by this initiation are as follows:
(1) India—25.43 and 28.34 percent; 42 (2)
Taiwan—32.26 percent; 43 (3)
Thailand—20.83 percent; 44 and (4)
China—57.36 and 59.45 percent.45
Initiation of LTFV Investigations
Based upon the examination of the
AD Petitions, as amended, and
supplemental responses, we find that
the AD Petitions, as amended, meet the
requirements of section 732 of the Act.
Therefore, we are initiating AD
investigations to determine whether
imports of steel threaded rod from India,
Taiwan, Thailand, and China are being,
or are likely to be, sold in the United
States at LTFV. In accordance with
section 733(b)(1)(A) of the Act and 19
CFR 351.205(b)(1), unless postponed,
we will make our preliminary
determinations no later than 140 days
after the date of this initiation.
38 Id.
39 Id.
33 See
China AD Initiation Checklist.
34 See Volume II of the Petition at 2–4.
35 See China AD Initiation Checklist.
36 Id.
37 See Taiwan AD Initiation Checklist and
Thailand AD Initiation Checklist.
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40 Id.
41 Id.
42 See
India AD Initiation Checklist.
Taiwan AD Initiation Checklist.
44 See Thailand AD Initiation Checklist.
45 See China AD Initiation Checklist.
43 See
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Respondent Selection
The petitioner named 32 companies
in India,46 25 companies in Taiwan,47
and five companies in Thailand,48 as
producers/exporters of steel threaded
rod. Following standard practice in AD
investigations involving market
economy countries, in the event
Commerce determines that the number
of companies is large and it cannot
individually examine each company
based upon Commerce’s resources,
where appropriate, Commerce intends
to select respondents in India, Taiwan,
and Thailand based on U.S. Customs
and Border Protection (CBP) data for
U.S. imports under the appropriate
Harmonized Tariff Schedule of the
United States (HTSUS) numbers listed
with the scope in the Appendix,
below.49
The petitioner named 446 producers/
exporters of steel threaded rod in
China.50 In AD investigations involving
NME countries, Commerce selects
respondents based on quantity and
value (Q&V) questionnaires in cases
where it has determined that the
number of companies is large and it
cannot individually examine each
company based upon its resources. After
considering the large number of
producers and exporters identified in
the China AD Petition, and considering
the resources that must be used by
Commerce to mail Q&V questionnaires
to all of these companies, Commerce has
determined that we do not have
sufficient administrative resources to
mail Q&V questionnaires to all 446
identified producers and exporters.
Therefore, Commerce has determined to
limit the number of Q&V questionnaires
it will send out to exporters and
producers based on CBP data for
imports during the POI under the
appropriate HTSUS numbers listed with
the scope in the Appendix, below.
Accordingly, Commerce will send Q&V
questionnaires to the largest producers
and exporters that are identified in the
CBP data for which there is address
information on the record.
On March 11, 2019, Commerce
released CBP data on imports of steel
threaded rod from India, Taiwan,
Thailand, and China under APO to all
parties with access to information
protected by APO and indicated that
interested parties wishing to comment
46 See
Volume I of the Petitions, at Exhibit I–13.
47 Id.
48 Id.
49 See, e.g., Polyester Textured Yarn from India
and the People’s Republic of China: Initiation of
Less-Than-Fair-Value Investigations, 83 FR 58223,
58227 (November 19, 2018).
50 See Volume I of the Petitions, at Exhibit I–13.
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Jkt 247001
on the CBP data must do so within three
business days of the publication date of
the notice of initiation of these
investigations.51 We further stated that
we will not accept rebuttal comments.
In addition, Commerce will post the
Q&V questionnaire along with filing
instructions on the Enforcement and
Compliance website at https://
www.trade.gov/enforcement/news.asp.
In accordance with our standard
practice for respondent selection in AD
cases involving NME countries, we
intend to base respondent selection on
the responses to the Q&V questionnaire
that we receive.
Producers/exporters of steel threaded
rod from China that do not receive Q&V
questionnaires by mail may still submit
a response to the Q&V questionnaire
and can obtain a copy of the Q&V
questionnaire from Enforcement &
Compliance’s website. The Q&V
response must be submitted by the
relevant Chinese exporters/producers no
later than 5:00 p.m. ET on March 27,
2019. All Q&V responses must be filed
electronically via ACCESS.
Separate Rates
In order to obtain separate-rate status
in an NME investigation, exporters and
producers must submit a separate-rate
application.52 The specific requirements
for submitting a separate-rate
application in the China investigation
are outlined in detail in the application
itself, which is available on Commerce’s
website at https://enforcement.trade.gov/
nme/nme-sep-rate.html. The separaterate application will be due 30 days
after publication of this initiation
notice.53 Exporters and producers who
submit a separate-rate application and
are selected as mandatory respondents
will be eligible for consideration for
separate-rate status only if they respond
to all parts of Commerce’s AD
51 See Memoranda, ‘‘Carbon and Alloy Steel
Threaded Rod from India: U.S. Customs and Border
Protection Data for Respondent Selection
Purposes;’’ ‘‘Carbon and Alloy Steel Threaded Rod
from Thailand: U.S. Customs and Border Protection
Data for Respondent Selection Purposes;’’ ‘‘Carbon
and Alloy Steel Threaded Rod from Taiwan: U.S.
Customs and Border Protection Data for Respondent
Selection Purposes;’’ and ‘‘Carbon and Alloy Steel
Threaded Rod from the People’s Republic of China:
U.S. Customs and Border Protection Data for
Respondent Selection Purposes,’’ dated March 11,
2019.
52 See Policy Bulletin 05.1: Separate-Rates
Practice and Application of Combination Rates in
Antidumping Investigation involving Non-Market
Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf
(Policy Bulletin 05.1).
53 Although in past investigations this deadline
was 60 days, consistent with 19 CFR 351.301(a),
which states that ‘‘the Secretary may request any
person to submit factual information at any time
during a proceeding,’’ this deadline is now 30 days.
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questionnaire as mandatory
respondents. Commerce requires that
companies from China submit a
response to both the Q&V questionnaire
and the separate-rate application by the
respective deadlines in order to receive
consideration for separate-rate status.
Companies not filing a timely Q&V
response will not receive separate-rate
consideration.
Use of Combination Rates
Commerce 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 Investigation 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.54
Distribution of Copies of the AD
Petitions
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version
of the AD Petitions, as amended, have
been provided to the governments of
India, Taiwan, Thailand, and China via
ACCESS. To the extent practicable, we
will attempt to provide a copy of the
public version of the AD Petitions, as
amended, to each exporter named in the
AD Petitions, as amended, as provided
under 19 CFR 351.203(c)(2).
ITC Notification
We will notify 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 AD Petitions, as amended, were
filed, whether there is a reasonable
indication that imports of steel threaded
rod from India, Taiwan, Thailand, and/
or China are materially injuring, or
54 See
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Policy Bulletin 05.1 at 6 (emphasis added).
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threatening material injury to, a U.S.
industry.55 A negative ITC
determination for any country will
result in the investigation being
terminated with respect to that
country.56 Otherwise, the investigations
will proceed according to statutory and
regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (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 Commerce; and (v)
evidence other than factual information
described in (i)–(iv). Section 351.301(b)
of Commerce’s regulations requires any
party, when submitting factual
information, to specify under which
subsection of 19 CFR 351.102(b)(21) the
information is being submitted 57 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.58 Time limits for the
submission of factual information are
addressed in 19 CFR 351.301, which
provides specific time limits based on
the type of factual information being
submitted. Interested parties should
review the regulations prior to
submitting factual information in these
investigations.
Particular Market Situation Allegation
Section 504 of the Trade Preferences
Extension Act of 2015 amended the Act
by adding the concept of particular
market situation (PMS) for purposes of
CV under section 773(e) of the Act.59
Section 773(e) of the Act states that ‘‘if
a particular market situation exists such
that the cost of materials and fabrication
or other processing of any kind does not
accurately reflect the cost of production
in the ordinary course of trade, the
administering authority may use
another calculation methodology under
this subtitle or any other calculation
methodology.’’ When an interested
party submits a PMS allegation pursuant
to section 773(e) of the Act, Commerce
will respond to such a submission
consistent with 19 CFR 351.301(c)(2)(v).
55 See
section 733(a) of the Act.
56 Id.
19 CFR 351.301(b).
58 See 19 CFR 351.301(b)(2).
59 See Trade Preferences Extension Act of 2015,
Public Law 114–27, 129 Stat. 362 (2015).
If Commerce finds that a PMS exists
under section 773(e) of the Act, then it
will modify its dumping calculations
appropriately.
Neither section 773(e) of the Act nor
19 CFR 351.301(c)(2)(v) set a deadline
for the submission of PMS allegations
and supporting factual information.
However, in order to administer section
773(e) of the Act, Commerce must
receive PMS allegations and supporting
factual information with enough time to
consider the submission. Thus, should
an interested party wish to submit a
PMS allegation and supporting new
factual information pursuant to section
773(e) of the Act, it must do so no later
than 20 days after submission of a
respondent’s initial section D
questionnaire response.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301, or as otherwise specified by the
Secretary. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351.301.
For submissions that are due from
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. ET
on the due date. Under certain
circumstances, we 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, we will inform parties in a
letter or memorandum of the deadline
(including a specified time) by which
extension requests must be filed to be
considered timely. An extension request
must be made in a separate, stand-alone
submission; under limited
circumstances we will grant untimelyfiled requests for the extension of time
limits. Parties should review Extension
of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at
https://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to
submitting factual information in these
investigations.
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.60
Parties must use the certification
formats provided in 19 CFR
351.303(g).61 Commerce intends to
57 See
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Jkt 247001
60 See
section 782(b) of the Act.
also Certification of Factual Information to
Import Administration During Antidumping and
61 See
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10039
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305. On
January 22, 2008, Commerce published
Antidumping and Countervailing Duty
Proceedings: Documents Submission
Procedures; APO Procedures, 73 FR
3634 (January 22, 2008). Parties wishing
to participate in these investigations
should ensure that they meet the
requirements of these procedures (e.g.,
the filing of letters of appearance as
discussed at 19 CFR 351.103(d)).
This notice is issued and published
pursuant to sections 732(c)(2) and 777(i)
of the Act, and 19 CFR 351.203(c).
Dated: March 13, 2019.
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
Scope of the Investigations
The merchandise covered by the scope of
these investigations is carbon and alloy steel
threaded rod. Steel threaded rod is certain
threaded rod, bar, or studs, of carbon or alloy
steel, having a solid, circular cross section of
any diameter, in any straight length. Steel
threaded rod is normally drawn, cold-rolled,
threaded, and straightened, or it may be hotrolled. In addition, the steel threaded rod,
bar, or studs subject to these investigations
are non-headed and threaded along greater
than 25 percent of their total actual length.
A variety of finishes or coatings, such as
plain oil finish as a temporary rust
protectant, zinc coating (i.e., galvanized,
whether by electroplating or hot-dipping),
paint, and other similar finishes and
coatings, may be applied to the merchandise.
Steel threaded rod is normally produced to
American Society for Testing and Materials
(ASTM) specifications ASTM A36, ASTM
A193 B7/B7m, ASTM A193 B16, ASTM
A307, ASTM A329 L7/L7M, ASTM A320
L43, ASTM A354 BC and BD, ASTM A449,
ASTM F1554–36, ASTM F1554–55, ASTM
F1554 Grade 105, American Society of
Mechanical Engineers (ASME) specification
ASME B18.31.3, and American Petroleum
Institute (API) specification API 20E. All
steel threaded rod meeting the physical
description set forth above is covered by the
scope of these investigations, whether or not
produced according to a particular standard.
Subject merchandise includes material
matching the above description that has been
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule). Answers to frequently asked
questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
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finished, assembled, or packaged in a third
country, including by cutting, chamfering,
coating, or painting the threaded rod, by
attaching the threaded rod to, or packaging it
with, another product, or any other finishing,
assembly, or packaging operation that would
not otherwise remove the merchandise from
the scope of the investigations if performed
in the country of manufacture of the threaded
rod.
Carbon and alloy steel threaded rod are
also included in the scope of these
investigations whether or not imported
attached to, or in conjunction with, other
parts and accessories such as nuts and
washers. If carbon and alloy steel threaded
rod are imported attached to, or in
conjunction with, such non-subject
merchandise, only the threaded rod is
included in the scope.
Excluded from the scope of these
investigations are: (1) Threaded rod, bar, or
studs which are threaded only on one or both
ends and the threading covers 25 percent or
less of the total actual length; and (2)
stainless steel threaded rod, defined as steel
threaded rod containing, by weight, 1.2
percent or less of carbon and 10.5 percent or
more of chromium, with our without other
elements.
Excluded from the scope of the
antidumping investigation on steel threaded
rod from the People’s Republic of China is
any merchandise covered by the existing
antidumping order on Certain Steel Threaded
Rod from the People’s Republic of China. See
Certain Steel Threaded Rod from the People’s
Republic of China: Notice of Antidumping
Duty Order, 74 FR 17154 (April 14, 2009).
Steel threaded rod is currently classifiable
under subheadings 7318.15.5051,
7318.15.5056, and 7318.15.5090 of the
Harmonized Tariff Schedule of the United
States (HTSUS). Subject merchandise may
also enter under subheading 7318.15.2095
and 7318.19.0000 of the HTSUS. The HTSUS
subheadings are provided for convenience
and U.S. Customs purposes only. The written
description of the scope is dispositive.
[FR Doc. 2019–05136 Filed 3–18–19; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–533–888, C–570–105]
Carbon and Alloy Steel Threaded Rod
From India and the People’s Republic
of China: Initiation of Countervailing
Duty Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable March 13, 2019.
FOR FURTHER INFORMATION CONTACT:
Ryan Mullen at (202) 482–5260 (India)
and Thomas Schauer at (202) 482–0410
(People’s Republic of China (China)),
AD/CVD Operations, Enforcement and
Compliance, International Trade
AGENCY:
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17:54 Mar 18, 2019
Jkt 247001
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On February 21, 2019, the U.S.
Department of Commerce (Commerce)
received countervailing duty (CVD)
petitions concerning imports of carbon
and alloy steel threaded rod (steel
threaded rod) from India and China,
filed in proper form on behalf of Vulcan
Threaded Products Inc. (the petitioner),
a domestic producer of steel threaded
rod.1 The CVD Petitions were
accompanied by antidumping duty (AD)
petitions concerning imports of steel
threaded rod from India, China, Taiwan,
and Thailand.
During the period February 25 and 26,
2019, Commerce requested
supplemental information pertaining to
certain aspects of the CVD Petitions in
separate supplemental questionnaires.2
The petitioner filed responses to the
supplemental questionnaires between
February 28 and March 1, 2019.3
1 See the petitioner’s letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties: Carbon and Alloy Steel Threaded Rod from
the People’s Republic of China, India, Taiwan, and
Thailand,’’ dated February 21, 2019 (the Petitions).
See also the petitioner’s letter, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties: Carbon and Alloy Steel Threaded Rod from
the People’s Republic of China, India, Taiwan, and
Thailand: Clarification of Petitioner Name,’’ dated
March 1, 2019.
2 See Commerce’s Letter, ‘‘Petition for the
Imposition of Countervailing Duties on Imports of
Carbon and Alloy Steel Threaded Rod from the
People’s Republic of China: Supplemental
Questions,’’ dated February 25, 2019, and Letters,
‘‘Petitions for the Imposition of Antidumping and
Countervailing Duties on Imports of Carbon and
Alloy Steel Threaded Rod from the People’s
Republic of China, India, Taiwan, and Thailand:
Supplemental Questions,’’ (General Issues
Supplemental), ‘‘Petition for the Imposition of
Countervailing Duties on Imports of Carbon and
Alloy Steel Threaded Rod from India: Supplemental
Questions,’’ ‘‘Petition for the Imposition of
Antidumping Duties on Imports of Carbon and
Alloy Steel Threaded Rod from the People’s
Republic of China: Supplemental Questions,’’
‘‘Petition for the Imposition of Antidumping Duties
on Imports of Carbon and Alloy Steel Threaded Rod
from India: Supplemental Questions,’’ ‘‘Petition for
the Imposition of Antidumping Duties on Imports
of Carbon and Alloy Steel Threaded Rod from
Taiwan: Supplemental Questions,’’ and ‘‘Petition
for the Imposition of Antidumping Duties on
Imports of Carbon and Alloy Steel Threaded Rod
from Thailand: Supplemental Questions,’’ dated
February 26, 2019.
3 See the petitioner’s Letters, ‘‘Carbon and Alloy
Steel Threaded Rod from the People’s Republic of
China, India, Taiwan, and Thailand: Response to
General Issues Questionnaire,’’ (General Issues
Supplement) ‘‘Carbon and Alloy Steel Threaded
Rod from India: Response to Questionnaire on
Countervailing Duty Petition,’’ ‘‘Carbon and Alloy
Steel Threaded Rod from China: Response to
Questionnaire on Antidumping Petition,’’ ‘‘Carbon
and Alloy Steel Threaded Rod from India: Response
to Questionnaire on Antidumping Petition,’’
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Sfmt 4703
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), the petitioner alleges that the
Governments of China and India (GOC,
and GOI, respectively) are providing
countervailable subsidies, within the
meaning of sections 701 and 771(5) of
the Act, to producers of steel threaded
rod in China and India and that imports
of such products are materially injuring,
or threatening material injury to, the
domestic steel threaded rod industry in
the United States. Consistent with
section 702(b)(1) of the Act and 19 CFR
351.202(b), for those alleged programs
on which we are initiating CVD
investigations, the CVD Petitions are
accompanied by information reasonably
available to the petitioner supporting
their allegations.
Commerce finds that the petitioner
filed the CVD Petitions on behalf of the
domestic industry, because the
petitioner is an interested party, as
defined in section 771(9)(E) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
support necessary for the initiation of
the requested CVD investigations.4
Period of Investigations
Because the CVD Petitions were filed
on February 21, 2019, the period of
investigation is January 1, 2018, through
December 31, 2018.
Scope of the Investigations
The product covered by these
investigations is steel threaded rod from
China and India. For a full description
of the scope of these investigations, see
the Appendix to this notice.
Comments on the Scope of the
Investigations
During our review of the CVD
Petitions, Commerce issued questions
to, and received responses from, the
petitioner pertaining to the proposed
scope to ensure that the scope language
in the CVD Petitions would be an
accurate reflection of the products for
which the domestic industry is seeking
relief.5
As discussed in the Preamble to
Commerce’s regulations, we are setting
‘‘Carbon and Alloy Steel Threaded Rod from
Taiwan: Response to Questionnaire on
Antidumping Petition,’’ and ‘‘Petition for the
Imposition of Antidumping Duties on Imports of
Carbon and Alloy Steel Threaded Rod from
Thailand: Supplemental Questions,’’ dated
February 28, 2019, and Letter, ‘‘Carbon and Alloy
Steel Threaded Rod from China: Response to
Questionnaire on Countervailing Duty Petition,’’
dated March 1, 2019.
4 See the ‘‘Determination of Industry Support for
the Petition’’ section, infra.
5 See General Issues Supplemental at 3–4; see also
General Issues Supplement at 3–6.
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Agencies
[Federal Register Volume 84, Number 53 (Tuesday, March 19, 2019)]
[Notices]
[Pages 10034-10040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05136]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-104, A-533-887, A-583-865, A-549-840]
Carbon and Alloy Steel Threaded Rod From India, Taiwan, Thailand,
and the People's Republic of China: Initiation of Less-Than-Fair-Value
Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable March 13, 2019.
FOR FURTHER INFORMATION CONTACT: Annathea Cook at (202) 482-0250
(India); Nicholas Czajkowskiat (202) 482-1395 (Taiwan); Kabir
Archuletta at (202) 482-2593 (Thailand); Andre Gziyran at (202) 482-
2201 (the People's Republic of China (China)); AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On February 21, 2019, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of carbon
and alloy steel threaded rod (steel threaded rod) from India, Taiwan,
Thailand, and China.\1\ The AD Petitions, as amended, were filed in
proper form by Vulcan Threaded Products Inc. (the petitioner).\2\ The
AD Petitions, as amended, were accompanied by countervailing duty (CVD)
petitions concerning imports of steel threaded rod from India and
China.
---------------------------------------------------------------------------
\1\ See the Petitioner's Letter, ``Petitions for the Imposition
of Antidumping and Countervailing Duties: Carbon and Alloy Steel
Threaded Rod from the People's Republic of China, India, Taiwan, and
Thailand,'' dated February 21, 2019 (the AD Petitions).
\2\ See the Petitioner's Letter, ``Petitions for the Imposition
of Antidumping and Countervailing Duties: Carbon and Alloy Steel
Threaded Rod from the People's Republic of China, India, Taiwan, and
Thailand: Clarification of Petitioner's Name,'' dated March 1, 2019.
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On February 26, March 4, and March 6, 2019, Commerce requested
supplemental information pertaining to certain aspects of the AD
Petitions in separate supplemental questionnaires.\3\ Responses to the
supplemental questionnaires were filed on February 28, March 6, and
March 7, 2019.\4\
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\3\ See Commerce Letters, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Carbon and Alloy
Steel Threaded Rod from the People's Republic of China, India,
Taiwan, and Thailand: Supplemental Questions;'' ``Petition for the
Imposition of Antidumping Duties on Imports of Carbon and Alloy
Steel Threaded Rod from India: Supplemental Questions;'' ``Petition
for the Imposition of Antidumping Duties on Imports of Carbon and
Alloy Steel Threaded Rod from Taiwan: Supplemental Questions;''
``Petition for the Imposition of Antidumping Duties on Imports of
Carbon and Alloy Steel Threaded Rod from Thailand: Supplemental
Questions;'' and ``Petition for the Imposition of Antidumping Duties
on Imports of Carbon and Alloy Steel Threaded Rod from the People's
Republic of China: Supplemental Questions.'' All of these documents
are dated February 26, 2019. See also Commerce Letter, ``Petition
for the Imposition of Antidumping Duties on Imports of Carbon and
Alloy Steel Threaded Rod from Thailand: Second Supplemental
Questions,'' dated March 4, 2019. See also Commerce's Letter,
``Petition for the Imposition of Antidumping Duties on Imports of
Carbon and Alloy Steel Threaded Rod from Taiwan: Second Supplemental
Questions,'' dated March 4, 2019; and Memorandum, ``Phone Call with
Counsel to the Petitioner,'' dated March 6, 2019.
\4\ See the Petitioner's Letters, ``Carbon and Alloy Steel
Threaded Rod from India: Response to Questionnaire on Antidumping
Petition'' (India AD Supplement); ``Carbon and Alloy Steel Threaded
Rod from Taiwan: Response to Questionnaire on Antidumping Petition''
(Taiwan AD Supplement); ``Carbon and Alloy Steel Threaded Rod from
Thailand: Response to Questionnaire on Antidumping Petition''
(Thailand AD Supplement); and ``Carbon and Alloy Steel Threaded Rod
from the People's Republic of China: Response to Questionnaire on
Antidumping Petition'' (China AD Supplement). All of these documents
are dated February 28, 2019. See also the Petitioner's Letter,
``Carbon and Alloy Steel Threaded Rod from the People's Republic of
China, India, Taiwan, and Thailand: Response to General Issues
Questionnaire,'' dated February 28, 2019 (General Issues
Supplement); see also the Petitioner's Letter, ``Petition for the
Imposition of Antidumping Duties on Imports of Carbon and Alloy
Steel Threaded Rod from Taiwan: Responses to Second Supplemental
Questions,'' dated March 6, 2019 (Second Taiwan AD Supplement); the
Petitioner's Letter, ``Petition for the Imposition of Antidumping
Duties on Imports of Carbon and Alloy Steel Threaded Rod from
Taiwan: Responses to Third Supplemental Questions,'' dated March 7,
2019 (Third Taiwan AD Supplement); see also the Petitioner's Letter,
``Petition for the Imposition of Antidumping Duties on Imports of
Carbon and Alloy Steel Threaded Rod from Thailand: Responses to
Second Supplemental Questions,'' dated March 6, 2019 (Second
Thailand AD Supplement); see also ``Petition for the Imposition of
Antidumping Duties on Imports of Carbon and Alloy Steel Threaded Rod
from Thailand: Amended Calculations,'' dated March 7, 2019 (Third
Thailand AD Supplement).
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of steel
threaded rod from India, Taiwan, Thailand, and China are being, or are
likely to be, sold in the United States at less than fair value (LTFV)
within the meaning of section 731 of the Act, and that such imports are
materially injuring, or threatening material injury to, the domestic
industry producing steel threaded rod in the United States. Consistent
with section 732(b)(1) of the Act, the AD Petitions, as amended, are
accompanied by information reasonably available to the petitioner
supporting its allegations.
Commerce finds that the petitioner filed the AD Petitions, as
amended, on behalf of the domestic industry, because the petitioner is
an interested party, as defined in section 771(9)(C) of the Act.
Commerce also finds that the petitioner demonstrated sufficient
industry support with respect to the initiation of the requested AD
investigations.\5\
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\5\ See the AD Petitions at 2-3.
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Periods of Investigation
Because the AD Petitions, as amended, were filed on February 21,
2019, pursuant to 19 CFR 351.204(b)(1), the period of investigation
(POI) for the India, Taiwan, and Thailand investigations is January 1,
2018, through December 31, 2018. Because China is a non-market economy
(NME) country, pursuant to 19 CFR 351.204(b)(1), the POI for the China
investigation is July 1, 2018, through December 31, 2018.
[[Page 10035]]
Scope of the Investigations
The product covered by these investigations is steel threaded rod
from India, Taiwan, Thailand, and China. For a full description of the
scope of these investigations, see the Appendix to this notice.
Scope Comments
During our review of the AD Petitions, Commerce issued questions
to, and received responses from, the petitioner pertaining to the
proposed scope to ensure that the scope language in the AD Petitions,
as amended, would be an accurate reflection of the products for which
the domestic industry is seeking relief.\6\
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\6\ See General Issues Supplemental at 3-6.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (scope).\7\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determinations. If scope comments include factual information,\8\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit scope comments by 5:00 p.m. Eastern Time
(ET) on April 2, 2019, which is 20 calendar days from the signature
date of this notice. Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on April 12, 2019, which is
10 calendar days from the initial comment deadline.\9\
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\7\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\8\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\9\ See 19 CFR 351.303(b).
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Commerce requests that any factual information parties consider
relevant to the scope of the investigations be submitted during this
period. However, if a party subsequently finds that additional factual
information pertaining to the scope of the investigations may be
relevant, the party may contact Commerce and request permission to
submit the additional information. All such submissions must be filed
on the records of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\10\ An electronically
filed document must be received successfully in its entirety by the
time and date it is due. Documents exempted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230, and stamped with the date and time of receipt by the applicable
deadlines.
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\10\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/help.aspx and a
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of steel threaded rod to be
reported in response to Commerce's AD questionnaires. This information
will be used to identify the key physical characteristics of the
subject merchandise in order to report the relevant factors of
production (FOPs) accurately, as well as to develop appropriate
product-comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they 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, although there
may be some physical product characteristics utilized by manufacturers
to describe steel threaded 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, Commerce 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 questionnaires, all product
characteristics comments must be filed by 5:00 p.m. ET on April 2,
2019, which is 20 calendar days from the signature date of this
notice.\11\ Any rebuttal comments must be filed by 5:00 p.m. ET on
April 12, 2019. All comments and submissions to Commerce must be filed
electronically using ACCESS, as explained above, on the record of each
of the AD investigations.
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\11\ See 19 CFR 351.303(b).
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Determination of Industry Support for the AD Petitions
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, Commerce 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) 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 Commerce to look to producers and workers who produce the
domestic like product. The 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 Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\12\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such
[[Page 10036]]
differences do not render the decision of either agency contrary to
law.\13\
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\12\ See section 771(10) of the Act.
\13\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the AD Petitions, as amended.\14\ Based on our analysis of the
information submitted on the record, we have determined that steel
threaded rod, as defined in the scope, constitutes a single domestic
like product, and we have analyzed industry support in terms of that
domestic like product.\15\
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\14\ See Volume I of the AD Petitions at 8-12.
\15\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Antidumping Duty Investigation Initiation Checklist: Carbon and
Alloy Steel Threaded Rod from the People's Republic of China (China
AD Initiation Checklist), at Attachment II, Analysis of Industry
Support for the Antidumping and Countervailing Duty Petitions
Covering Carbon and Alloy Steel Threaded Rod from the People's
Republic of China, India, Taiwan, and Thailand (Attachment II); see
also Antidumping Duty Investigation Initiation Checklist: Carbon and
Alloy Steel Threaded Rod from India (India AD Initiation Checklist),
at Attachment II; see also Antidumping Duty Investigation Initiation
Checklist: Carbon and Alloy Steel Threaded Rod from Taiwan (Taiwan
AD Initiation Checklist), at Attachment II; see also Antidumping
Duty Investigation Initiation Checklist: Carbon and Alloy Steel
Threaded Rod from Thailand (Thailand AD Initiation Checklist), at
Attachment II. These checklists are dated concurrently with, and
hereby adopted by, this notice and on file electronically via
ACCESS. Access to documents filed via ACCESS is also available in
the Central Records Unit, Room B8024 of the main Department of
Commerce building.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the AD Petitions, as amended, with reference to the
domestic like product as defined in the ``Scope of the
Investigations,'' in the Appendix to this notice. To establish industry
support, the petitioner provided its own production of the domestic
like product in 2018, as well as the 2018 production of Bay Standard
Manufacturing Inc. (Bay Standard), a U.S. producer of steel threaded
rod that supports the AD Petitions, as amended.\16\ The petitioner
compared the production of the supporters of the AD Petitions, as
amended, to the estimated total production of the domestic like product
for the entire domestic industry.\17\ We relied on data provided by the
petitioner and Bay Standard for purposes of measuring industry
support.\18\
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\16\ See Volume I of the Petitions, at Exhibit I-2; see also
Letter from Bay Standard, ``Carbon and Alloy Steel Threaded Rod from
the People's Republic of China, India, Taiwan, and Thailand: Support
for the Petitions,'' dated February 25, 2019 (Letter of Support), at
Attachment I.
\17\ See General Issues Supplement, at 6 and Exhibits 3 and 5.
\18\ Id. For further discussion, see China AD Initiation
Checklist at Attachment II; India AD Initiation Checklist at
Attachment II; Taiwan AD Initiation Checklist at Attachment II; and
Thailand AD Initiation Checklist, at Attachment II.
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Our review of the data provided in the AD Petitions, as amended,
the General Issues Supplement, the Letter of Support, and other
information readily available to Commerce indicates that the petitioner
has established industry support for the AD Petitions, as amended.\19\
First, the AD Petitions, as amended, established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\20\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
732(c)(4)(A)(i) of the Act, because the domestic producers (or workers)
who support the AD Petitions, as amended, account for at least 25
percent of the total production of the domestic like product.\21\
Finally, the domestic producers (or workers) have met the statutory
criteria for industry support under section 732(c)(4)(A)(ii) of the
Act, because the domestic producers (or workers) who support the AD
Petitions, as amended, 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 AD Petitions, as
amended.\22\ Accordingly, Commerce determines that the AD Petitions, as
amended, were filed on behalf of the domestic industry within the
meaning of section 732(b)(1) of the Act.
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\19\ See China AD Initiation Checklist, at Attachment II; India
AD Initiation Checklist, at Attachment II; Taiwan AD Initiation
Checklist, at Attachment II; and Thailand AD Initiation Checklist,
at Attachment II.
\20\ See section 732(c)(4)(D) of the Act; see also China AD
Initiation Checklist, at Attachment II; India AD Initiation
Checklist, at Attachment II; Taiwan AD Initiation Checklist, at
Attachment II; and Thailand AD Initiation Checklist, at Attachment
II.
\21\ See China AD Initiation Checklist, at Attachment II; India
AD Initiation Checklist, at Attachment II; Taiwan AD Initiation
Checklist, at Attachment II; and Thailand AD Initiation Checklist,
at Attachment II.
\22\ Id.
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Commerce finds that the petitioner filed the AD Petitions, as
amended, on behalf of the domestic industry, because it is an
interested party, as defined in section 771(9)(C) of the Act, and it
has demonstrated sufficient industry support with respect to the AD
investigations that it is requesting that Commerce initiate.\23\
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\23\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleged 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
petitioner alleges that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\24\ The
petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price suppression; decline in
the domestic industry's capacity utilization; the domestic industry's
lagging production and shipments; decline in the domestic industry's
financial performance; and lost sales and revenues.\25\ We have
assessed the allegations and supporting evidence regarding material
injury, threat of material injury, causation, as well as cumulation,
and we have determined that these allegations are properly supported by
adequate evidence, and meet the statutory requirements for
initiation.\26\
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\24\ See Volume I of the Petitions, at 18 and Exhibit I-14.
\25\ Id. at 15-35 and Exhibits I-3, I-4, I-10, I-11, I-13, I-14
and I-16 through I-20.
\26\ See China 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 Alloy Steel Threaded Rod from the People's
Republic of China, India, Taiwan, and Thailand (Attachment III); see
also India AD Initiation Checklist, at Attachment III; Taiwan AD
Initiation Checklist, at Attachment III; and Thailand AD Initiation
Checklist, at Attachment III.
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Allegations of Sales at LTFV
The following is a description of the allegation of sales at LTFV
upon which Commerce based its decision to initiate AD investigations of
imports of steel threaded rod from India, Taiwan,
[[Page 10037]]
Thailand, and China. The sources of data for the deductions and
adjustments relating to U.S. price and normal value (NV) are discussed
in greater detail in the AD Initiation Checklist for each country.
Export Price
For India, Thailand, and China, the petitioner based the U.S. price
on export price (EP) using average unit values (AUVs) of publicly
available import data.\27\ For Taiwan, the petitioner based U.S. price
on pricing information for steel threaded rod produced in, and exported
from, Taiwan and offered for sale in the United States.\28\ Where
applicable, the petitioner made deductions from U.S. price for movement
and other expenses, consistent with the terms of sale.\29\
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\27\ See India AD Initiation Checklist, China AD Initiation
Checklist; Thailand AD Initiation Checklist.
\28\ See Taiwan AD Initiation Checklist.
\29\ See India AD Initiation Checklist, China AD Initiation
Checklist; Taiwan AD Initiation Checklist; and Thailand AD
Initiation Checklist
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Normal Value
For India, the petitioner based NV on home market prices obtained
through market research for steel threaded rod produced in and sold, or
offered for sale, in India within the POI.
For Taiwan and Thailand, the petitioner was unable to obtain
information relating to the prices charged for steel threaded rod
produced and sold in the respective home markets or third country
prices; accordingly, the petitioner based NV on constructed value
(CV).\30\ For further discussion of CV, see the section ``Normal Value
Based on Constructed Value'' below.\31\
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\30\ See Taiwan AD Initiation Checklist and Thailand AD
Initiation Checklist.
\31\ In accordance with section 505(a) of the Trade Preferences
Extension Act of 2015, amending section 773(b)(2) of the Act, for
this investigation, Commerce will request information necessary to
calculate the CV and cost of production (COP) to determine whether
there are reasonable grounds to believe or suspect that sales of the
foreign like product have been made at prices that represent less
than the COP of the product. Commerce no longer requires a COP
allegation to conduct this analysis.
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With respect to China, Commerce considers China to be an NME
country.\32\ In accordance with section 771(18)(C)(i) of the Act, the
presumption of NME status remains in effect until revoked by Commerce.
Therefore, we continue to treat China as an NME for purposes of the
initiation of this investigation. Accordingly, NV in China is
appropriately based on FOPs valued in a surrogate market economy
country, in accordance with section 773(c) of the Act.\33\
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\32\ See Antidumping Duty Investigation of Certain Aluminum Foil
from the People's Republic of China: Affirmative Preliminary
Determination of Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and
accompanying decision memorandum, China's Status as a Non-Market
Economy, unchanged in Certain Aluminum Foil from the People's
Republic of China: Final Determination of Sales at Less Than Fair
Value, 83 FR 9282 (March 5, 2018).
\33\ See China AD Initiation Checklist.
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The petitioner claims that Mexico is an appropriate surrogate
country for China, because it is a market economy country that is at a
level of economic development comparable to that of China, it is a
significant producer of comparable merchandise, and public information
from Mexico is available to value all material input factors.\34\ Based
on the information provided by the petitioner, we determine that it is
appropriate to use Mexico as a surrogate country for initiation
purposes.
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\34\ See Volume II of the Petition at 2-4.
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Interested parties will have the opportunity to submit 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 FOPs within 30 days before the scheduled
date of the preliminary determination.
Interested parties will have the opportunity to submit 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 FOPs within 30 days before the scheduled
date of the preliminary determination.
Factors of Production
Because information regarding the volume of inputs consumed by the
Chinese producers/exporters is not available, the petitioner relied on
its own production experience as an estimate of Chinese manufacturers'
FOPs.\35\ The petitioner valued the estimated FOPs using surrogate
values from Mexico and used the average POI exchange rate to convert
the data to U.S. dollars.\36\
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\35\ See China AD Initiation Checklist.
\36\ Id.
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Normal Value Based on Constructed Value
As noted above, the petitioner was unable to obtain information
relating to the prices charged for steel threaded rod produced in
Taiwan and Thailand, or third country prices; accordingly, the
petitioner based NV on CV.\37\ Pursuant to section 773(e) of the Act,
CV consists of the cost of manufacturing (COM), selling, general, and
administrative (SG&A) expenses, financial expenses, packing expenses,
and profit. For Taiwan and Thailand, the petitioner calculated the COM
based on the input factors of production and its own usage rates. The
input factors of production were valued using publicly available data
on costs specific to Taiwan and Thailand, during the proposed POI.\38\
Specifically, the prices for raw materials, reclaimed steel scrap, and
packing inputs were valued using publicly available import and domestic
price data for Taiwan and Thailand.\39\ Labor and energy costs were
valued using publicly available sources for Taiwan and Thailand.\40\
The petitioner calculated factory overhead, SG&A expenses, financial
expenses, and profit for Taiwan and Thailand based on the ratios found
in the experience of a producer of identical or comparable merchandise
from each of these countries.\41\
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\37\ See Taiwan AD Initiation Checklist and Thailand AD
Initiation Checklist.
\38\ Id.
\39\ Id.
\40\ Id.
\41\ Id.
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Fair Value Comparisons
Based on the data provided by the AD Petitions, as amended, there
is reason to believe that imports of steel threaded rod from India,
Taiwan, Thailand, and China are being, or are likely to be, sold in the
United States at LTFV. Based on comparisons of EP to NV in accordance
with sections 772 and 773 of the Act, the estimated dumping margins for
steel threaded rod for each of the countries covered by this initiation
are as follows: (1) India--25.43 and 28.34 percent; \42\ (2) Taiwan--
32.26 percent; \43\ (3) Thailand--20.83 percent; \44\ and (4) China--
57.36 and 59.45 percent.\45\
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\42\ See India AD Initiation Checklist.
\43\ See Taiwan AD Initiation Checklist.
\44\ See Thailand AD Initiation Checklist.
\45\ See China AD Initiation Checklist.
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Initiation of LTFV Investigations
Based upon the examination of the AD Petitions, as amended, and
supplemental responses, we find that the AD Petitions, as amended, meet
the requirements of section 732 of the Act. Therefore, we are
initiating AD investigations to determine whether imports of steel
threaded rod from India, Taiwan, Thailand, and China are being, or are
likely to be, sold in the United States at LTFV. In accordance with
section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our preliminary determinations no later than
140 days after the date of this initiation.
[[Page 10038]]
Respondent Selection
The petitioner named 32 companies in India,\46\ 25 companies in
Taiwan,\47\ and five companies in Thailand,\48\ as producers/exporters
of steel threaded rod. Following standard practice in AD investigations
involving market economy countries, in the event Commerce determines
that the number of companies is large and it cannot individually
examine each company based upon Commerce's resources, where
appropriate, Commerce intends to select respondents in India, Taiwan,
and Thailand based on U.S. Customs and Border Protection (CBP) data for
U.S. imports under the appropriate Harmonized Tariff Schedule of the
United States (HTSUS) numbers listed with the scope in the Appendix,
below.\49\
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\46\ See Volume I of the Petitions, at Exhibit I-13.
\47\ Id.
\48\ Id.
\49\ See, e.g., Polyester Textured Yarn from India and the
People's Republic of China: Initiation of Less-Than-Fair-Value
Investigations, 83 FR 58223, 58227 (November 19, 2018).
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The petitioner named 446 producers/exporters of steel threaded rod
in China.\50\ In AD investigations involving NME countries, Commerce
selects respondents based on quantity and value (Q&V) questionnaires in
cases where it has determined that the number of companies is large and
it cannot individually examine each company based upon its resources.
After considering the large number of producers and exporters
identified in the China AD Petition, and considering the resources that
must be used by Commerce to mail Q&V questionnaires to all of these
companies, Commerce has determined that we do not have sufficient
administrative resources to mail Q&V questionnaires to all 446
identified producers and exporters. Therefore, Commerce has determined
to limit the number of Q&V questionnaires it will send out to exporters
and producers based on CBP data for imports during the POI under the
appropriate HTSUS numbers listed with the scope in the Appendix, below.
Accordingly, Commerce will send Q&V questionnaires to the largest
producers and exporters that are identified in the CBP data for which
there is address information on the record.
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\50\ See Volume I of the Petitions, at Exhibit I-13.
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On March 11, 2019, Commerce released CBP data on imports of steel
threaded rod from India, Taiwan, Thailand, and China under APO to all
parties with access to information protected by APO and indicated that
interested parties wishing to comment on the CBP data must do so within
three business days of the publication date of the notice of initiation
of these investigations.\51\ We further stated that we will not accept
rebuttal comments.
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\51\ See Memoranda, ``Carbon and Alloy Steel Threaded Rod from
India: U.S. Customs and Border Protection Data for Respondent
Selection Purposes;'' ``Carbon and Alloy Steel Threaded Rod from
Thailand: U.S. Customs and Border Protection Data for Respondent
Selection Purposes;'' ``Carbon and Alloy Steel Threaded Rod from
Taiwan: U.S. Customs and Border Protection Data for Respondent
Selection Purposes;'' and ``Carbon and Alloy Steel Threaded Rod from
the People's Republic of China: U.S. Customs and Border Protection
Data for Respondent Selection Purposes,'' dated March 11, 2019.
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In addition, Commerce will post the Q&V questionnaire along with
filing instructions on the Enforcement and Compliance website at https://www.trade.gov/enforcement/news.asp. In accordance with our standard
practice for respondent selection in AD cases involving NME countries,
we intend to base respondent selection on the responses to the Q&V
questionnaire that we receive.
Producers/exporters of steel threaded rod from China that do not
receive Q&V questionnaires by mail may still submit a response to the
Q&V questionnaire and can obtain a copy of the Q&V questionnaire from
Enforcement & Compliance's website. The Q&V response must be submitted
by the relevant Chinese exporters/producers no later than 5:00 p.m. ET
on March 27, 2019. All Q&V responses must be filed electronically via
ACCESS.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
exporters and producers must submit a separate-rate application.\52\
The specific requirements for submitting a separate-rate application in
the China investigation are outlined in detail in the application
itself, which is available on Commerce's website at https://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate
application will be due 30 days after publication of this initiation
notice.\53\ Exporters and producers who submit a separate-rate
application and are selected as mandatory respondents will be eligible
for consideration for separate-rate status only if they respond to all
parts of Commerce's AD questionnaire as mandatory respondents. Commerce
requires that companies from China submit a response to both the Q&V
questionnaire and the separate-rate application by the respective
deadlines in order to receive consideration for separate-rate status.
Companies not filing a timely Q&V response will not receive separate-
rate consideration.
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\52\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving Non-Market Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin
05.1).
\53\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates
Commerce 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 Investigation 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.\54\
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\54\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the AD Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the AD Petitions, as
amended, have been provided to the governments of India, Taiwan,
Thailand, and China via ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the AD Petitions, as
amended, to each exporter named in the AD Petitions, as amended, as
provided under 19 CFR 351.203(c)(2).
ITC Notification
We will notify 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 AD Petitions, as amended, were filed, whether there is a
reasonable indication that imports of steel threaded rod from India,
Taiwan, Thailand, and/or China are materially injuring, or
[[Page 10039]]
threatening material injury to, a U.S. industry.\55\ A negative ITC
determination for any country will result in the investigation being
terminated with respect to that country.\56\ Otherwise, the
investigations will proceed according to statutory and regulatory time
limits.
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\55\ See section 733(a) of the Act.
\56\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (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 Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \57\ 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.\58\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in these investigations.
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\57\ See 19 CFR 351.301(b).
\58\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation
Section 504 of the Trade Preferences Extension Act of 2015 amended
the Act by adding the concept of particular market situation (PMS) for
purposes of CV under section 773(e) of the Act.\59\ Section 773(e) of
the Act states that ``if a particular market situation exists such that
the cost of materials and fabrication or other processing of any kind
does not accurately reflect the cost of production in the ordinary
course of trade, the administering authority may use another
calculation methodology under this subtitle or any other calculation
methodology.'' When an interested party submits a PMS allegation
pursuant to section 773(e) of the Act, Commerce will respond to such a
submission consistent with 19 CFR 351.301(c)(2)(v). If Commerce finds
that a PMS exists under section 773(e) of the Act, then it will modify
its dumping calculations appropriately.
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\59\ See Trade Preferences Extension Act of 2015, Public Law
114-27, 129 Stat. 362 (2015).
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Neither section 773(e) of the Act nor 19 CFR 351.301(c)(2)(v) set a
deadline for the submission of PMS allegations and supporting factual
information. However, in order to administer section 773(e) of the Act,
Commerce must receive PMS allegations and supporting factual
information with enough time to consider the submission. Thus, should
an interested party wish to submit a PMS allegation and supporting new
factual information pursuant to section 773(e) of the Act, it must do
so no later than 20 days after submission of a respondent's initial
section D questionnaire response.
Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351.301. For submissions that are
due from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we 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, we will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, stand-alone submission; under limited circumstances we will
grant untimely-filed requests for the extension of time limits. Parties
should review Extension of Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information
in these investigations.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\60\
Parties must use the certification formats provided in 19 CFR
351.303(g).\61\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\60\ See section 782(b) of the Act.
\61\ See also Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to
frequently asked questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce
published Antidumping and Countervailing Duty Proceedings: Documents
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008).
Parties wishing to participate in these investigations should ensure
that they meet the requirements of these procedures (e.g., the filing
of letters of appearance as discussed at 19 CFR 351.103(d)).
This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: March 13, 2019.
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
Scope of the Investigations
The merchandise covered by the scope of these investigations is
carbon and alloy steel threaded rod. Steel threaded rod is certain
threaded rod, bar, or studs, of carbon or alloy steel, having a
solid, circular cross section of any diameter, in any straight
length. Steel threaded rod is normally drawn, cold-rolled, threaded,
and straightened, or it may be hot-rolled. In addition, the steel
threaded rod, bar, or studs subject to these investigations are non-
headed and threaded along greater than 25 percent of their total
actual length. A variety of finishes or coatings, such as plain oil
finish as a temporary rust protectant, zinc coating (i.e.,
galvanized, whether by electroplating or hot-dipping), paint, and
other similar finishes and coatings, may be applied to the
merchandise.
Steel threaded rod is normally produced to American Society for
Testing and Materials (ASTM) specifications ASTM A36, ASTM A193 B7/
B7m, ASTM A193 B16, ASTM A307, ASTM A329 L7/L7M, ASTM A320 L43, ASTM
A354 BC and BD, ASTM A449, ASTM F1554-36, ASTM F1554-55, ASTM F1554
Grade 105, American Society of Mechanical Engineers (ASME)
specification ASME B18.31.3, and American Petroleum Institute (API)
specification API 20E. All steel threaded rod meeting the physical
description set forth above is covered by the scope of these
investigations, whether or not produced according to a particular
standard.
Subject merchandise includes material matching the above
description that has been
[[Page 10040]]
finished, assembled, or packaged in a third country, including by
cutting, chamfering, coating, or painting the threaded rod, by
attaching the threaded rod to, or packaging it with, another
product, or any other finishing, assembly, or packaging operation
that would not otherwise remove the merchandise from the scope of
the investigations if performed in the country of manufacture of the
threaded rod.
Carbon and alloy steel threaded rod are also included in the
scope of these investigations whether or not imported attached to,
or in conjunction with, other parts and accessories such as nuts and
washers. If carbon and alloy steel threaded rod are imported
attached to, or in conjunction with, such non-subject merchandise,
only the threaded rod is included in the scope.
Excluded from the scope of these investigations are: (1)
Threaded rod, bar, or studs which are threaded only on one or both
ends and the threading covers 25 percent or less of the total actual
length; and (2) stainless steel threaded rod, defined as steel
threaded rod containing, by weight, 1.2 percent or less of carbon
and 10.5 percent or more of chromium, with our without other
elements.
Excluded from the scope of the antidumping investigation on
steel threaded rod from the People's Republic of China is any
merchandise covered by the existing antidumping order on Certain
Steel Threaded Rod from the People's Republic of China. See Certain
Steel Threaded Rod from the People's Republic of China: Notice of
Antidumping Duty Order, 74 FR 17154 (April 14, 2009).
Steel threaded rod is currently classifiable under subheadings
7318.15.5051, 7318.15.5056, and 7318.15.5090 of the Harmonized
Tariff Schedule of the United States (HTSUS). Subject merchandise
may also enter under subheading 7318.15.2095 and 7318.19.0000 of the
HTSUS. The HTSUS subheadings are provided for convenience and U.S.
Customs purposes only. The written description of the scope is
dispositive.
[FR Doc. 2019-05136 Filed 3-18-19; 8:45 am]
BILLING CODE 3510-DS-P