Alloy and Certain Carbon Steel Threaded Rod From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value, 8821-8823 [2020-03048]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 85, Number 32 (Tuesday, February 18, 2020)]
[Notices]
[Pages 8821-8823]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03048]



[[Page 8821]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-104]


Alloy and Certain Carbon Steel Threaded Rod From the People's 
Republic of China: Final Affirmative Determination of Sales at Less 
Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports 
of alloy and certain carbon steel threaded rod (threaded rod) from the 
People's Republic of China (China) are being, or are likely to be, sold 
in the United States at less than fair value (LTFV). The final dumping 
margins of sales at LTFV are listed in the ``Final Determination'' 
section of this notice.

DATES: Applicable February 18, 2020.

FOR FURTHER INFORMATION CONTACT: Yang Jin Chun, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-5760.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the Preliminary Determination in the LTFV 
investigation of threaded rod from China on September 25, 2019.\1\ For 
a complete description of the events that followed the Preliminary 
Determination, see the Issues and Decision Memorandum.\2\
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    \1\ See Alloy and Certain Carbon Steel Threaded Rod from the 
People's Republic of China: Preliminary Affirmative Determination of 
Sales at Less Than Fair Value, Postponement of Final Determination 
and Extension of Provisional Measures, 84 FR 50379 (September 25, 
2019) (Preliminary Determination), and accompanying Preliminary 
Decision Memorandum (PDM).
    \2\ See Memorandum, ``Alloy and Certain Carbon Steel Threaded 
Rod from the People's Republic of China: Issues and Decision 
Memorandum for the Final Affirmative Determination of Sales at Less 
Than Fair Value,'' dated concurrently with, and hereby adopted by, 
this notice (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is July 1, 2018 through December 31, 
2018.

Scope of the Investigation

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

Scope Comments

    On July 22, 2019, we issued a Preliminary Scope Memorandum.\3\ The 
scope case briefs were due on August 28, 2019.\4\ We received no scope 
case briefs from interested parties. Therefore, Commerce has made no 
changes to the scope of this investigation since the Preliminary 
Determination.
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    \3\ See Memorandum, ``Carbon and Alloy Steel Threaded Rod from 
India, Taiwan, Thailand, and the People's Republic of China: Scope 
Comments Decision Memorandum for the Preliminary Determinations,'' 
dated July 22, 2019 (Preliminary Scope Decision Memorandum).
    \4\ The scope case briefs were due 30 days after the publication 
of Carbon and Alloy Steel Threaded Rod from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 84 FR 36578 (July 29, 2019). See Preliminary Scope 
Decision Memorandum at 3.
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Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), we verified the U.S. sales and factors of production 
information submitted by Ningbo Zhongjiang High Strength Bolts Co., 
Ltd. (Zhongjiang) \5\ and Zhejiang Junyue Standard Part Co., Ltd. 
(Junyue) \6\ in November 2019. We used standard verification 
procedures, including an examination of relevant accounting and 
production records, and original source documents provided by these two 
respondents.
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    \5\ See Memorandum, ``Verification of the Questionnaire 
Responses of Ningbo Zhongjiang High Strength Bolts Co., Ltd. in the 
Antidumping Investigation of Alloy and Certain Carbon Steel Threaded 
Rod from the People's Republic of China,'' dated December 3, 2019.
    \6\ See Memorandum, ``Verification of the Questionnaire 
Responses of Zhejiang Junyue Standard Part Co., Ltd. in the 
Antidumping Investigation of Alloy and Certain Steel Threaded Rod 
from the People's Republic of China,'' dated December 3, 2019.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by parties in this investigation are addressed in the Issues 
and Decision Memorandum. For a list of the issues raised by interested 
parties and addressed in the Issues and Decision Memorandum, see 
Appendix II to this notice. The Issues and Decision Memorandum is a 
public document and is made available to the public via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
https://access.trade.gov, and to all parties in the Central Records 
Unit, Room B8024 of the main Commerce building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at https://enforcement.trade.gov/frn/. The signed and 
electronic versions of the Issues and Decision Memorandum are identical 
in content.

China-Wide Entity and Use of Adverse Facts Available (AFA)

    We continue to find that the use of facts available is warranted in 
determining the rate of the China-wide entity pursuant to sections 
776(a)(1) and (a)(2)(A)-(C) of the Act.\7\ Further, use of AFA is 
warranted because the China-wide entity did not cooperate to the best 
of its ability to comply with our requests for information and, 
accordingly, we applied adverse inferences in selecting from the facts 
available, pursuant to section 776(b) of the Act and 19 CFR 351.308(a).
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    \7\ See Preliminary Determination PDM at 16-18.
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Changes From the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the dumping margin 
calculations for Junyue and Zhongjiang.\8\ Consistent with our 
Preliminary Determination, as AFA, we continued to rely on the highest 
petition rate of 59.45 percent to determine the China-wide entity's 
dumping margin.\9\
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    \8\ See the Issues and Decision Memorandum for a discussion of 
these changes.
    \9\ Id. at 3-4 for a full discussion of this issue.
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Combination Rates

    Consistent with the Preliminary Determination \10\ and Policy 
Bulletin 05.1,\11\ Commerce calculated combination rates for the 
respondents that are eligible for a separate rate in this 
investigation.
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    \10\ See Preliminary Determination.
    \11\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' dated April 5, 2005 (Policy Bulletin 05.1), available 
on Commerce's website at https://enforcement.trade.gov/policy/bull05-1.pdf.
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Final Determination

    Commerce determines that the following weighted-average dumping 
margins exist:

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                                                                                Estimated      Cash deposit rate
                                                                             weighted-average    (adjusted for
                  Exporter                              Producer              dumping margin    subsidy offsets)
                                                                                (percent)          (percent)
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Ningbo Zhongjiang High Strength Bolts Co.,   Ningbo Zhongjiang High                     14.16               3.62
 Ltd.                                         Strength Bolts Co., Ltd.
Zhejiang Junyue Standard Part Co., Ltd.....  Zhejiang Junyue Standard Part               4.26               0.00
                                              Co., Ltd.
Cooper & Turner (Ningbo) International       Zhejiang Cooper & Turner                   11.47               0.00
 Trading Co., Ltd.                            Fasteners Co., Ltd.
Cooper & Turner (Ningbo) International       Zhejiang Morgan Brother                    11.47               0.00
 Trading Co., Ltd.                            Technology Co., Ltd.
Cooper & Turner (Ningbo) International       Zhejiang Huiyou Import &                   11.47               0.00
 Trading Co., Ltd.                            Export Co., Ltd.
EC International (Nantong) Co., Ltd........  Ningbo Zhongjiang High                     11.47               0.00
                                              Strength Bolts Co., Ltd.
EC International (Nantong) Co., Ltd........  Ningbo Zhenghai Yongding                   11.47               0.00
                                              Fasteners Manufacture Co.,
                                              Ltd.
EC International (Nantong) Co., Ltd........  Zhejiang Junyue Standard Part              11.47               0.00
                                              Co., Ltd.
EC International (Nantong) Co., Ltd........  Haiyan Qinshan Rubber Factory              11.47               0.00
IFI & Morgan Ltd...........................  Zhejiang Morgan Brother                    11.47               0.00
                                              Technology Co., Ltd.
Jiaxing Genteel Import & Export Co., Ltd...  Ningbo Zhenhai Zhongbiao                   11.47               0.00
                                              Standard Parts Factory.
Ningbo Dingtuo Imp. & Exp. Co., Ltd........  Ningbo Jinding Fastening                   11.47               0.00
                                              Piece Co., Ltd.
Zhejiang Heiter Mfg & Trade Co., Ltd.......  Zhejiang Golden Automotive                 11.47               0.00
                                              Fastener Co., Ltd.
Ningbo Jinding Fastening Piece Co., Ltd....  Ningbo Jinding Fastening                   11.47               0.00
                                              Piece Co., Ltd.
Ningbo Qunli Fastener Manufacture Co., Ltd.  Ningbo Qunli Fastener                      11.47               0.00
                                              Manufacture Co., Ltd.
Nantong Runyou Metal Products Co., Ltd.....  Nantong Runyou Metal Products              11.47               0.00
                                              Co., Ltd.
Ningbo Shareway Import & Export, Co., Ltd..  Zhejiang Junyue Standard                   11.47               0.00
                                              Parts Co., Ltd.
Ningbo Xingsheng Oil Pipe Fittings           Ningbo Xingsheng Oil Pipe                  11.47               0.00
 Manufacture Co., Ltd.                        Fittings Manufacture Co.,
                                              Ltd.
Ningbo Zhenghai Yongding Fastener Co., Ltd.  Ningbo Zhenghai Yongding                   11.47               0.00
                                              Fastener Co., Ltd.
RMB Fasteners Ltd..........................  Zhejiang Morgan Brother                    11.47               0.00
                                              Technology Co., Ltd.
Zhejiang Morgan Brother Technology Co., Ltd  Zhejiang Morgan Brother                    11.47               0.00
                                              Technology Co., Ltd.
China-Wide Entity \12\.....................  .............................              59.45              48.91
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    \12\ Commerce preliminarily denied the separate rate eligibility 
for Jiaxing Xingcheng Electronics Co., Ltd., Ningbo Panxiang Imp & 
Exp Co., Ltd., Ningbo Zhonglian Fastener Co., Ltd., and Ningbo Zhong 
Xin Angora Spinning Mill. See Preliminary Determination, 84 FR at 
50380, n. 12. For the final determination, Commerce continues to 
deny their separate rate eligibility and treat them as part of the 
China-wide entity.
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Disclosure

    We intend to disclose the calculations performed to parties in this 
proceeding within five days after public announcement of the final 
determination in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with sections 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of threaded rod from China, as 
described in Appendix I of this notice, which were entered or withdrawn 
from warehouse for consumption on or after September 25, 2019, the date 
of publication of the Preliminary Determination of this investigation 
in the Federal Register.
    Pursuant to section 735(c)(1)(B)(ii) of the Act, upon the 
publication of this notice, Commerce will instruct CBP to require a 
cash deposit equal to the weighted-average amount by which the normal 
value exceeds U.S. price as follows: (1) The cash deposit rate for the 
exporter/producer combinations listed in the table above will be the 
rate identified in the table; (2) for all combinations of Chinese 
exporters/producers of subject merchandise that have not received their 
own separate rate above, the cash-deposit rate will be the cash deposit 
rate established for the China-wide entity; and (3) for all non-Chinese 
exporters of subject merchandise which have not received their own 
separate rate above, the cash-deposit rate will be the cash deposit 
rate applicable to the Chinese exporter/producer combination that 
supplied that non-Chinese exporter. These suspension of liquidation 
instructions will remain in effect until further notice.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce makes an affirmative 
determination for domestic subsidy pass-through or export subsidies, 
Commerce offsets the calculated estimated weighted-average dumping 
margin by the appropriate rate(s). In this case, we have made a 
negative determination for domestic subsidy pass-through for all 
respondents, but we have also found export subsidies for all 
respondents. In particular, Commerce issued the final determination of 
the concurrent CVD investigation of threaded rod from China, in which 
it found export-contingent subsidies of 10.54 percent for Zhongjiang 
and 31.62 percent for Junyue.\13\ Therefore, we deducted export 
subsidies from the final margins and adjusted the cash deposit 
rates.\14\ However, suspension of liquidation for provisional measures 
in the companion CVD case has been discontinued; \15\ therefore, we are 
not instructing CBP to collect cash deposits based upon the adjusted 
estimated weighted-average dumping margin for those export subsidies at 
this time.
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    \13\ See the unpublished Federal Register notice entitled 
``Carbon and Alloy Steel Threaded Rod from the People's Republic of 
China: Final Affirmative Countervailing Duty Determination,'' dated 
concurrently with this notice.
    \14\ See Memorandum, ``Alloy and Certain Carbon Steel Threaded 
Rod from the People's Republic of China: Final Separate Rate for 
Non-Selected Respondents,'' dated concurrently with this notice for 
the cash deposit rate adjustment for non-selected separate rate 
respondents.
    \15\ See CBP Message No. 9331312 dated November 27, 2019, 
available at https://aceservices.cbp.dhs.gov/adcvdweb/ad_cvd_msgs/27895.

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[[Page 8823]]

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of our final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of subject 
merchandise from China no later than 45 days after our final 
determination. If the ITC determines that such injury does not exist, 
this proceeding will be terminated and all cash deposits posted will be 
refunded or canceled. If the ITC determines that such injury does 
exist, Commerce will issue an antidumping duty order directing CBP to 
assess, upon further instruction by Commerce, antidumping duties on all 
imports of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the effective date of the 
suspension of liquidation.

Notification Regarding Administrative Protective Order

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

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).

    Dated: February 7, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by the scope of this investigation is 
alloy and certain carbon steel threaded rod. Alloy and certain 
carbon steel threaded rod are certain threaded rod, bar, or studs, 
of carbon or alloy steel, having a solid, circular cross section of 
any diameter, in any straight length. Alloy and certain carbon steel 
threaded rod are normally drawn, cold-rolled, threaded, and 
straightened, or it may be hot-rolled. In addition, the alloy and 
certain carbon steel threaded rod, bar, or studs subject to this 
investigation 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. Alloy Steel threaded rod is normally 
produced to American Society for Testing and Materials (ASTM) 
specifications A193 B7/B7m, A193 B16, A320 L7/L7m, A320 L43, A354 BC 
and BD, and F1554 Grade 105. Other specifications are Society of 
Automotive Engineers (SAE) specification 1429 grades 5 and 8, 
International Organization for Standardization (ISO) specification 
898 class 8.8 and 10.9, and American Petroleum Institute (API) 
specification 20E. Certain carbon steel threaded rod is normally 
produced to ASTM specification A449. All steel threaded rod meeting 
the physical description set forth above is covered by the scope of 
this investigation, whether or not produced according to a 
particular standard.
    Subject merchandise includes material matching the above 
description that has been 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 investigation if performed in the 
country of manufacture of the threaded rod.
    Alloy and certain carbon steel threaded rod are also included in 
the scope of this investigation 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 this investigation 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 or 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).
    Specifically excluded from the scope of this investigation is 
threaded rod that is imported as part of a package of hardware in 
conjunction with a ready-to-assemble piece of furniture. Alloy and 
certain carbon steel threaded rod are 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.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Surrogate Country
IV. Separate Rates
V. China-Wide Rate
VI. Adjustments to Cash Deposit Rates
VII. Changes Since the Preliminary Determination
VIII. Discussion of the Issues
    Comment 1: Double Remedies
    Comment 2: Export Subsidies
    Comment 3: Alloy Wire Rod
    Comment 4: Zinc Powder
    Comment 5: Selection of Primary Surrogate Country
    Comment 6: Labor
    Comment 7: SermaGard
    Comment 8: Octyl Phenol and Ethylene Oxide Emulsifier
    Comment 9: Surrogate Financial Ratios
    Comment 10: Junyue's Factors of Production
    Comment 11: Ocean Freight
    Comment 12: Surrogate Movement Expenses on a Gross Weight Basis
    Comment 13: Zhongjiang's U.S. Inland Freight from Port to 
Customer
    Comment 14: Differential Pricing
    Comment 15: Irrecoverable Value-Added Tax
IX. Recommendation

[FR Doc. 2020-03048 Filed 2-14-20; 8:45 am]
 BILLING CODE 3510-DS-P