Certain Steel Nails From the Sultanate of Oman: Final Affirmative Countervailing Duty Determination, 51335-51337 [2022-18051]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 87, Number 161 (Monday, August 22, 2022)]
[Notices]
[Pages 51335-51337]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18051]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-523-817]


Certain Steel Nails From the Sultanate of Oman: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain steel nails (steel nails) from the Sultanate of Oman (Oman).

DATES: Applicable August 22, 2022.

FOR FURTHER INFORMATION CONTACT: Thomas Martin, AD/CVD Operations, 
Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3936.

SUPPLEMENTARY INFORMATION:

Background

    On June 7, 2022, Commerce published the Preliminary Determination 
in the Federal Register.\1\ For a complete description of the events 
that followed the Preliminary Determination, see the Issues and 
Decision Memorandum.\2\ The Issues and Decision Memorandum is a public 
document and is on file electronically via Enforcement and Compliance's 
Antidumping and Countervailing Duty Centralized Electronic Service 
System (ACCESS). ACCESS is available to registered users at https://access.trade.gov. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \1\ See Certain Steel Nails from the Sultanate of Oman: 
Preliminary Affirmative Countervailing Duty Determination, 87 FR 
34639 (June 7, 2022) (Preliminary Determination), and accompanying 
Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Decision Memorandum for the Final 
Determination of the Countervailing Duty Investigation of Certain 
Steel Nails from the Sultanate of Oman,'' dated concurrently with 
this determination (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2020, through December 
31, 2020.

Scope of the Investigation

    The products covered by this investigation are steel nails from 
Oman. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    On July 5, 2022, Commerce issued the Preliminary Scope 
Memorandum.\3\ Commerce made no changes to the scope of this 
investigation since the Preliminary Determination.
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    \3\ See Memorandum, ``Antidumping Duty Investigations of Certain 
Steel Nails from India, Sri Lanka, Thailand, and Oman and 
Countervailing Duty Investigations of Certain Steel Nails from 
India, Oman, Sri Lanka, Thailand, and Oman: Preliminary Scope 
Decision Memorandum,'' dated July 5, 2022 (Preliminary Scope 
Memorandum).
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs by parties in this investigation, are 
discussed in the Issues and Decision Memorandum. For a list of the 
issues raised by parties, and to which we responded in the Issues and 
Decision Memorandum, see Appendix II of this notice.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found to be countervailable, Commerce determines that 
there is a subsidy, i.e., a financial contribution by an ``authority'' 
that gives rise to a benefit to the recipient and that the subsidy is 
specific.\4\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \4\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\5\
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    \5\ See Commerce's Letters, ``Revised In Lieu of Verification 
Questionnaire for Oman Fasteners LLC in the Countervailing Duty 
Investigation of Certain Steel Nails from the Sultanate of Oman,'' 
dated June 17, 2022; and ``Revised In Lieu of Verification 
Questionnaire for the Government of the Sultanate of Oman in the 
Countervailing Duty Investigation of Certain Steel Nails from the 
Sultanate of Oman'' dated June 17, 2022.

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[[Page 51336]]

Changes Since the Preliminary Determination

    After evaluating the comments received from interested parties and 
analyzing the information received in lieu of on-site verification, we 
made no changes to the net countervailable subsidy rate calculated for 
Oman Fasteners LLC (Oman Fasteners) since the Preliminary 
Determination. For a discussion of these comments, see the Issues and 
Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated an individual estimated countervailable subsidy rate for 
Oman Fasteners. Section 705(c)(5)(A)(i) of the Act states that, for all 
exporters and producers not individually investigated, we will 
determine an all-others rate equal to the weighted-average 
countervailable subsidy rates established for exporters and producers 
individually investigated, excluding any zero and de minimis 
countervailable subsidy rates, and any rates determined entirely under 
section 776 of the Act.
    Commerce calculated an individual estimated countervailable subsidy 
rate for Oman Fasteners, the only individually examined producer/
exporter in this investigation. Because the only individually 
calculated rate is not zero, de minimis, or based entirely on facts 
otherwise available, the rate calculated for Oman Fasteners is the rate 
assigned to all other producers and exporters not individually examined 
in this investigation, pursuant to section 705(c)(5)(A)(i) of the Act.

Final Determination

    Commerce determines that the following estimated net 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Oman Fasteners LLC......................................            2.49
All Others..............................................            2.49
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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 to the calculations 
from the Preliminary Determination, no additional disclosure is 
necessary.

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce 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 June 7, 2022, the date of publication of the Preliminary 
Determination in the Federal Register.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order and require a cash deposit of estimated countervailing duties for 
such entries of subject merchandise in the amounts indicated above, in 
accordance with section 706(a) of the Act. 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.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of steel nails 
from Oman. As Commerce's final determination is affirmative, in 
accordance with section 705(b) of the Act, the ITC will determine, 
within 45 days, whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports from Oman. In addition, we are making available to the ITC all 
non-privileged and nonproprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Notification Regarding APO

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the APO of their responsibility concerning the destruction 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and terms 
of an APO is a violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 771(i) of the Act, and 19 CFR 351.210(c).

    Dated: August 15, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is certain steel 
nails having a nominal shaft or shank length not exceeding 12 
inches. Certain steel nails include, but are not limited to, nails 
made from round wire and nails that are cut from flat-rolled steel 
or long-rolled flat steel bars. Certain steel nails may be of one 
piece construction or constructed of two or more pieces. Examples of 
nails constructed of two or more pieces include, but are not limited 
to, anchors comprised of an anchor body made of zinc or nylon and a 
steel pin or a steel nail; crimp drive anchors; split-drive anchors, 
and strike pin anchors. Also included in the scope are anchors of 
one piece construction.
    Certain steel nails may be produced from any type of steel, and 
may have any type of surface finish, head type, shank, point type 
and shaft diameter. Finishes include, but are not limited to, 
coating in vinyl, zinc (galvanized, including but not limited to 
electroplating or hot dipping one or more times), phosphate, cement, 
and paint. Certain steel nails may have one or more surface 
finishes. Head styles include, but are not limited to, flat, 
projection, cupped, oval, brad, headless, double, countersunk, and 
sinker. Shank or shaft styles include, but are not limited to, 
smooth, barbed, screw threaded, ring shank and fluted.
    Screw-threaded nails subject to this proceeding are driven using 
direct force and not by turning the nail using a tool that engages 
with the head. Point styles include, but are not limited to, 
diamond, needle, chisel and blunt or no point. Certain steel nails 
may be sold in bulk, or they may be collated in any manner using any 
material.
    Excluded from the scope are certain steel nails packaged in 
combination with one or more non-subject articles, if the total 
number of nails of all types, in aggregate regardless of size, is 
less than 25. If packaged in combination with one or more non-
subject articles, certain steel nails remain subject merchandise if 
the total number of nails of all types, in aggregate regardless of 
size, is equal to or greater than 25, unless otherwise excluded 
based on the other exclusions below.
    Also excluded from the scope are certain steel nails with a 
nominal shaft or shank

[[Page 51337]]

length of one inch or less that are a component of an unassembled 
article, where the total number of nails is sixty (60) or less, and 
the imported unassembled article falls into one of the following 
eight groupings: (1) Builders' joinery and carpentry of wood that 
are classifiable as windows, French-windows and their frames; (2) 
builders' joinery and carpentry of wood that are classifiable as 
doors and their frames and thresholds; (3) swivel seats with 
variable height adjustment; (4) seats that are convertible into beds 
(with the exception of those classifiable as garden seats or camping 
equipment); (5) seats of cane, osier, bamboo or similar materials; 
(6) other seats with wooden frames (with the exception of seats of a 
kind used for aircraft or motor vehicles); (7) furniture (other than 
seats) of wood (with the exception of (i) medical, surgical, dental 
or veterinary furniture; and (ii) barbers' chairs and similar 
chairs, having rotating as well as both reclining and elevating 
movements); or (8) furniture (other than seats) of materials other 
than wood, metal, or plastics (e.g., furniture of cane, osier, 
bamboo or similar materials). The aforementioned imported 
unassembled articles are currently classified under the following 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings: 
4418.10, 4418.20, 9401.30, 9401.40, 9401.51, 9401.59, 9401.61, 
9401.69, 9403.30, 9403.40, 9403.50, 9403.60, 9403.81 or 9403.89.
    Also excluded from the scope of this investigation are nails 
suitable for use in powder-actuated hand tools, whether or not 
threaded, which are currently classified under HTSUS subheadings 
7317.00.2000 and 7317.00.3000.
    Also excluded from the scope of this investigation are nails 
suitable for use in gas-actuated hand tools. These nails have a case 
hardness greater than or equal to 50 on the Rockwell Hardness C 
scale (HRC), a carbon content greater than or equal to 0.5 percent, 
a round head, a secondary reduced-diameter raised head section, a 
centered shank, and a smooth symmetrical point.
    Also excluded from the scope of this investigation are 
corrugated nails. A corrugated nail is made up of a small strip of 
corrugated steel with sharp points on one side.
    Also excluded from the scope of this investigation are thumb 
tacks, which are currently classified under HTSUS subheading 
7317.00.1000.
    Also excluded from the scope are decorative or upholstery tacks.
    Certain steel nails subject to this investigation are currently 
classified under HTSUS subheadings 7317.00.5501, 7317.00.5502, 
7317.00.5503, 7317.00.5505, 7317.00.5507, 7317.00.5508, 
7317.00.5511, 7317.00.5518, 7317.00.5519, 7317.00.5520, 
7317.00.5530, 7317.00.5540, 7317.00.5550, 7317.00.5560, 
7317.00.5570, 7317.00.5580, 7317.00.5590, 7317.00.6530, 7317.00.6560 
and 7317.00.7500. Certain steel nails subject to this investigation 
also may be classified under HTSUS subheadings 7318.15.5090, 
7907.00.6000, 8206.00.0000 or other HTSUS subheadings. While the 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of this investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation Information
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Whether Commerce Selected an Appropriate Benchmark 
for the Land for Less Than Adequate Remuneration (LTAR) Program
    Comment 2: Whether the Provision of Land for LTAR Program and 
Tariff Exemption Program are De Jure Specific
    Comment 3: Whether the Tariff Exemptions Program can be Tied to 
Specific Products
    Comment 4: Whether the Government of Oman (GSO) Acted to the 
Best of Its Ability to Respond to Commerce's Information Requests 
Regarding Whether the Cost Reflective Tariff (CRT) Electricity Rate 
is Based on Market Principles
    Comment 5: Whether the CRT Electricity Rate is a Subsidy Program
VII. Recommendation

[FR Doc. 2022-18051 Filed 8-19-22; 8:45 am]
BILLING CODE 3510-DS-P