Carbon and Alloy Steel Threaded Rod From India: Final Affirmative Countervailing Duty Determination, 8828-8829 [2020-03050]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 85, Number 32 (Tuesday, February 18, 2020)]
[Notices]
[Pages 8828-8829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03050]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-888]


Carbon and Alloy Steel Threaded Rod From India: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of carbon and alloy steel threaded rod (steel threaded rod) from India 
during the period of investigation (POI) January 1, 2018 through 
December 31, 2018. The final estimated subsidy rates are shown in the 
``Final Determination'' section of this notice.

DATES: Applicable February 18, 2020.

FOR FURTHER INFORMATION CONTACT: Genevieve Coen or Hannah Falvey, AD/
CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-3251 or (202) 
482-4889, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On July 29, 2019, Commerce published the Preliminary Determination 
of this investigation, in which we found that countervailable subsidies 
are being provided to producers and exporters of steel threaded rod 
from India.\1\ On October 16, 2019, we issued a Post-Preliminary 
Analysis Memorandum.\2\ We invited interested parties to comment on the 
Preliminary Determination and the Post-Preliminary Analysis Memorandum. 
We received no comments from interested parties.
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    \1\ See Carbon and Alloy Steel Threaded Rod from India: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 84 FR 36570 (July 29, 2019) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ See Memorandum, ``Post-Preliminary Analysis Memorandum in 
the Countervailing Duty Investigation of Carbon and Alloy Steel 
Threaded Rod from India,'' dated October 16, 2019 (Post-Preliminary 
Analysis Memorandum).
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Period of Investigation

    The POI is January 1, 2018 through December 31, 2018.

Scope of the Investigation

    The product covered by this investigation is steel threaded rod 
from India. For a complete description of the scope of this 
investigation, see the appendix to this notice.

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 Memorandum).
    \4\ The scope case briefs were due 30 days after the publication 
of the Preliminary Determination. See Preliminary Scope Memorandum 
at 3. The deadline for scope rebuttal briefs was Monday, September 
2, 2019.
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Verification

    Commerce conducted verification of the questionnaire responses 
provided by Mangal Steel Enterprises Limited (Mangal) between October 
21 and October 24, 2019.\5\ Because the second mandatory respondent in 
this investigation, Daksh Fasteners (Daksh), did not provide the 
information requested, Commerce did not conduct verification of 
Daksh.\6\
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    \5\ See Memorandum, ``Verification of the Questionnaire 
Responses of Mangal Steel Enterprises Limited,'' dated November 8, 
2019.
    \6\ See Preliminary Determination PDM at 6-7.
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Analysis of Comments Received

    As noted above, we received no comments in response to the 
Preliminary Determination or Post-Preliminary Analysis Memorandum. 
However, Commerce is revising its decision regarding the application of 
adverse facts available (AFA) to the Government of India (GOI) 
regarding the duty drawback (DDB) program.\7\ Consistent with other 
proceedings, which we referenced in the Preliminary Determination,\8\ 
for this final determination, we find that the GOI's responses 
regarding the DDB program did not warrant the application of AFA, but 
instead, the GOI's responses were insufficient to establish that the 
GOI has a system in place for this program that is reasonable or 
effective for the purposes intended.\9\ Therefore, we find that this 
program is countervailable.\10\ Because we continue to find this 
program countervailable, our calculations regarding this program remain 
unchanged for this final determination.
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    \7\ Id. at 7-8.
    \8\ Id. at 20 (citing Certain Frozen Warmwater Shrimp from 
India: Final Affirmative Countervailing Duty Determination, 78 FR 
50385 (August 19, 2013) (Shrimp from India Final Determination), and 
accompanying Issues and Decision Memorandum (IDM) at ``Duty 
Drawback'').
    \9\ See Shrimp from India Final Determination IDM at 12 (``If 
such a system does not exist, or if it is not applied effectively, 
and the government in question does not carry out an examination of 
actual inputs involved to confirm which inputs are consumed in the 
production of the exported product, the entire amount of any 
exemption, deferral, remission or drawback is countervailable.'').
    \10\ Id.
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Methodology

    We continue to find, as stated in the Preliminary Determination, 
that mandatory respondent Daksh withheld requested information, failed 
to provide information by the specified deadlines, and significantly 
impeded the proceeding, pursuant to section 776(a) of the Tariff Act of 
1930, as amended (the Act). Further, we continue to find that Daksh 
failed to cooperate to the best of its ability to comply with our 
requests for information, and, accordingly, we continue to apply an 
adverse inference when selecting from among the facts otherwise 
available to determine the relevant countervailable subsidy rate, in 
accordance with section 776(b) of the Act. We continue to find, using 
AFA, that Daksh used all the programs on which Commerce initiated, and 
continue to apply AFA rates for each program as discussed in the 
Preliminary Determination and the Post-Preliminary Analysis 
Memorandum.\11\
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    \11\ Id. at 11-15; see also Post-Preliminary Analysis Memorandum 
at 2-3.
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All-Others Rate

    We continue to assign the countervailable subsidy rate calculated 
for Mangal as the all-others rate applicable to all exporters and/or 
producers not individually examined.\12\
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    \12\ See Preliminary Determination, 84 FR at 36571.
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Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

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                                                            Net subsidy
                    Exporter/producer                     rate (percent)
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Daksh Fasteners.........................................          211.72
Mangal Steel Enterprises Limited........................            6.07
All Others..............................................            6.07
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[[Page 8829]]

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise as described in the scope of the investigation 
section entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of the Preliminary Determination in the 
Federal Register. In accordance with section 703(d) of the Act, we 
issued instructions to CBP to discontinue the suspension of liquidation 
for countervailing duty purposes for subject merchandise entered, or 
withdrawn from warehouse, on or after November 26, 2019, but to 
continue the suspension of liquidation of all entries from July 29 
through November 25, 2019.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, reinstate the suspension of liquidation under section 706(a) of 
the Act, and require a cash deposit of estimated countervailing duties 
for such entries of subject merchandise in the amounts indicated above. 
If the ITC determines that material injury, or threat of material 
injury, does not exist, this proceeding will be terminated, and all 
estimated duties deposited or securities posted as a result of the 
suspension of liquidation will be refunded or canceled.

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a final determination within five days of 
any public announcement or, if there is no public announcement, within 
five days of the date of publication of the notice of final 
determination in the Federal Register, in accordance with 19 CFR 
351.224(b). However, because there are no changes from the Preliminary 
Determination, there are no new calculations to disclose.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of the final affirmative determination of countervailable 
subsidies. In addition, we are making available to the ITC all non-
privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.
    Because the final determination in this proceeding is affirmative, 
in accordance with section 705(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 steel threaded rod from India no later than 45 
days after this final determination. If the ITC determines that 
material injury, or threat of material injury, does not exist, the 
proceeding will be terminated, and all cash deposits will be refunded. 
If the ITC determines that such injury does exist, Commerce will issue 
a countervailing duty order directing CBP to assess, upon further 
instruction by Commerce, countervailing 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 APO

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

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 705(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

Scope of the Investigation

    The merchandise covered by the scope of this investigation 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 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.
    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 A320 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 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 this investigation if performed in the 
country of manufacture of the threaded rod.
    Carbon and alloy 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 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).
    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. 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. 2020-03050 Filed 2-14-20; 8:45 am]
 BILLING CODE 3510-DS-P