Alloy and Certain Carbon Steel Threaded Rod From the People's Republic of China; Carbon and Alloy Steel Threaded Rod From the People's Republic of China: Affirmative Preliminary Determination of Circumvention of the Antidumping and Countervailing Duty Orders, 18600-18603 [2024-05464]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 89, Number 51 (Thursday, March 14, 2024)]
[Notices]
[Pages 18600-18603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05464]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-104, C-570-105]


Alloy and Certain Carbon Steel Threaded Rod From the People's 
Republic of China; Carbon and Alloy Steel Threaded Rod From the 
People's Republic of China: Affirmative Preliminary Determination of 
Circumvention of the Antidumping and Countervailing Duty Orders

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that imports of unthreaded pins of alloy steel from China 
are circumventing the antidumping duty (AD) order on alloy and certain 
carbon steel threaded rod from China and the countervailing duty (CVD) 
order on carbon and alloy steel threaded rod from China. We invite 
interested parties to comment on the preliminary determination.

DATES: Applicable March 14, 2024.

FOR FURTHER INFORMATION CONTACT: Robert Galantucci, 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) 482-2923.

SUPPLEMENTARY INFORMATION:

Background

    On July 12, 2023, pursuant to section 781(a) of the Tariff Act of 
1930, as amended (the Act), Commerce initiated these circumvention 
inquiries concerning unthreaded pins of alloy steel exported from 
China, which are further processed in the United States, into steel 
threaded rod.\1\ Commerce provided opportunities for interested parties 
to identify respondents in these inquiries \2\ and also solicited 
information on the quantity and value of sales, exports, or shipments 
of unthreaded pins from publicly-identified Chinese exporters and U.S. 
importers/processors.\3\ On October 13, 2023, Commerce selected 
importers Birmingham Fastener Inc./Houston Fastener Mfg. Inc. 
(Birmingham) and Dan Loc Group LLC (Dan Loc), and exporters Jiashan 
Steelfit Trading Co., Ltd. (Steelfit) and Ningbo Zhenghai Yongding 
Fastener Co., Ltd. (Yongding Fastener),\4\ as mandatory respondents to 
our questionnaires.\5\
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    \1\ See Alloy and Certain Carbon Steel Threaded Rod from the 
People's Republic of China; Carbon and Alloy Steel Threaded Rod from 
the People's Republic of China: Initiation of Circumvention 
Inquiries on the Antidumping Duty Order and Countervailing Duty 
Order, 88 FR 44277 (July 12, 2023) (Initiation Notice).
    \2\ Id., 88 FR at 44279.
    \3\ Id.; see also Memorandum, ``Confirmation of Delivery of 
Antidumping Questionnaire; Comments,'' dated October 4, 2023.
    \4\ Yongding Fastener exports through an affiliated trading 
company, i.e., Ningbo Ningding Import & Export Co. Ltd. See Yongding 
Fastener's Letter, ``Response of Ningbo Yongding to Questionnaire 
Dated October 16, 2023,'' dated November 12, 2023, at 1.
    \5\ See Memorandum, ``Respondent Selection,'' dated October 13, 
2023.
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    We received responses to initial and supplemental questionnaires 
from Birmingham, Dan Loc, and Steelfit, as well as a response to our 
initial questionnaire from Yongding Fasterner. However, after initially 
participating in these inquiries, Yongding Fastener subsequently failed 
to respond to a request for additional necessary information from 
Commerce. For a complete description of the events that followed the 
initiation of these inquiries, see the Preliminary Decision 
Memorandum.\6\
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    \6\ See Memorandum, ``Circumvention Inquiries Regarding 
Antidumping Duty Order on Alloy and Certain Carbon Steel Threaded 
Rod from the People's Republic of China and Countervailing Duty 
Order on Carbon and Alloy Steel Threaded Rod from the People's 
Republic of China: Preliminary Decision Memorandum,'' dated 
concurrently, and hereby adopted, with this notice (Preliminary 
Decision Memorandum).
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Scope of the Orders

    The merchandise covered by the scope of the AD Order \7\ is alloy 
and certain carbon steel threaded rod from China. The merchandise 
covered by the scope of the CVD Order \8\ is carbon and alloy steel 
threaded rod from China. For a full description of the scopes, see the 
Preliminary Decision Memorandum.
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    \7\ See Alloy and Certain Carbon Steel Threaded Rod from the 
People's Republic of China: Antidumping Duty Order, 85 FR 19929 
(April 9, 2020) (AD Order).
    \8\ See Carbon and Alloy Steel Threaded Rod from India and the 
People's Republic of China: Countervailing Duty Orders, 85 FR 19927 
(April 9, 2020) (CVD Order). We collectively refer to the AD Order 
and the CVD Order as the Orders.
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Merchandise Subject to the Circumvention Inquiries

    These circumvention inquiries cover unthreaded pins of alloy steel 
exported from China which are further processed into alloy steel 
threaded rod in the United States. Unthreaded pins of alloy steel are 
unthreaded rod, bar, or studs, having a solid, circular cross section 
of any diameter, in any straight length, and are non-headed. Unthreaded 
pins may enter unchamfered or with their ends already chamfered. Such 
pins may also be referenced as ``pitch diameter stud blanks'' or 
``blanks.'' Unthreaded pins of alloy steel are believed to enter under 
Harmonized Tariff Schedule of the United States (HTSUS) subheadings 
7318.15.5051, 7318.15.5056, 7318.15.5090, 7228.60.8000, 7318.15.2095, 
7318.19.0000, and 7318.29.0000, several of which also cover alloy steel 
threaded rod.

Methodology

    Commerce made these preliminary findings of circumvention in 
accordance with section 781(a) of the Act and 19 CFR 351.226. We relied 
on information placed on the record by the petitioners,\9\ U.S. 
importers/processors, and Chinese suppliers. Further, because Chinese 
supplier Yongding Fastener failed to cooperate in these inquiries, 
i.e., by failing to respond to a request for information and failing to 
participate to the best of its ability, we have used adverse inferences 
when selecting from among the facts otherwise available on the record, 
pursuant to sections 776(a) and (b) of the Act.\10\ Also, as adverse 
facts available, we are treating Yongding Fasteners and Ningding I&E, 
its affiliated trading company, as a single entity.
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    \9\ The petitioner is Vulcan Threaded Products Inc.
    \10\ See Preliminary Decision Memorandum at Section VI.
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    For a complete description of the methodology underlying our 
conclusions, see the Preliminary Decision Memorandum. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://enforcement.trade.gov/

[[Page 18601]]

frn/. A list of the topics discussed in the Preliminary Decision 
Memorandum is attached at Appendix I to this notice.

Preliminary Affirmative Determination of Circumvention

    Based on our analysis, as detailed in the Preliminary Decision 
Memorandum, we preliminarily find, pursuant to section 781(a) of the 
Act, that imports of unthreaded pins of alloy steel from China that are 
further processed in the United States into subject merchandise are 
circumventing the Orders.

Certification Requirements

    To administer this affirmative preliminary circumvention 
determination, Commerce is requiring that importers of unthreaded pins 
of alloy steel from China which will not be threaded into subject 
merchandise certify that such pins will not be further processed into 
subject alloy steel threaded rod. Importers will be required to submit 
a copy of the importer certification as part of the entry summary by 
uploading them into the document imaging system (or ``DIS'') in ACE, 
and to provide U.S. Customs and Border Protection (CBP) and/or Commerce 
with the importer certification, and any supporting documentation, upon 
request of either agency.\11\ Properly certified entries are not 
subject to AD/CVD duties under the Orders. Exemption from AD/CVD duties 
under the Orders is permitted only if the certification and 
documentation requirements specified in Appendices II and III are met.
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    \11\ The importer certification is provided at Appendix III.
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    Entries of unthreaded pins of alloy steel produced and/or exported 
by Yongding Fastener or Ningding I&E are not eligible for 
certification.

Suspension of Liquidation and Cash Deposit Requirements

    In accordance with 19 CFR 351.226(l)(2), we will direct CBP to 
continue the suspension of liquidation of previously suspended entries 
and to suspend liquidation of all entries of unthreaded pins of alloy 
steel from China that are entered, or withdrawn from warehouse, for 
consumption on or after July 12, 2023 (i.e., the date of publication of 
the Initiation Notice).\12\ Pursuant to 19 CFR 351.226(l)(2), we will 
also instruct CBP to require AD and CVD cash deposits for unthreaded 
pins of alloy steel from China for each unliquidated entry of 
unthreaded pins of alloy steel from China that have been entered, or 
withdrawn from warehouse, for consumption on or after July 12, 2023.
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    \12\ See generally Initiation Notice. We note that the 
petitioner has suggested that Commerce direct CBP to suspend entries 
earlier, pursuant to 19 CFR 351.226(l)(iii)(B). However, Commerce 
has determined that the appropriate date in this case is the date of 
initiation, pursuant to 19 CFR 351.226(l)(iii)(A).
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    For entries of unthreaded pins of alloy steel for which the 
exporter has a company-specific cash deposit rate under the AD Order, 
the cash deposit rate will be the company-specific AD cash deposit rate 
established for that company in the most recently-completed segment of 
the proceeding. For all Chinese exporters of unthreaded pins of alloy 
steel that do not have a company-specific cash deposit rate under the 
AD Order, the AD cash deposit rate will be the cash deposit rate for 
the China-wide entity (i.e., 48.91 percent); \13\ for all non-Chinese 
exporters of unthreaded pins of alloy steel which have not received 
their own rate, the cash deposit rate will be the rate applicable to 
the Chinese exporter that supplied that non-Chinese exporter.
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    \13\ See Alloy and Certain Carbon Steel Threaded Rod from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review; 2021-2022, 88 FR 18117 (March 27, 2023).
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    For entries of unthreaded pins of alloy steel for which the 
producer and/or exporter has a company-specific cash deposit rate under 
the CVD Order, the cash deposit rate will be the company-specific CVD 
cash deposit rate established for that company in the most recently-
completed segment of the proceeding. For all Chinese producers and/or 
exporters of unthreaded pins of alloy steel that do not have a company-
specific cash deposit rate under CVD Order, the CVD cash deposit rate 
will be the ``all others'' rate (i.e., 41.17 percent).\14\
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    \14\ See Carbon and Alloy Steel Threaded Rod from India and the 
People's Republic of China: Countervailing Duty Orders, 85 FR 19927, 
19928 (April 9, 2020).
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    These suspension of liquidation instructions and cash deposit 
requirements will remain in effect until further notice.

Public Comment

    Pursuant to 19 CFR 351.226(f)(4), interested parties are invited to 
comment on this preliminary determination of circumvention and may 
submit case briefs and/or written comments within 14 days of the 
publication of this notice. Rebuttal briefs, limited to issues raised 
in the case briefs, may be filed not later than seven days after the 
date on which case briefs are due. Parties who submit case briefs or 
rebuttal briefs in this proceeding are encouraged to submit with each 
argument: (1) a statement of the issue; (2) a brief summary of the 
argument; and (3) a table of authorities.
    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this these inquiries, we instead request 
that interested parties provide at the beginning of their briefs a 
public, executive summary for each issue raised in their briefs.\15\ 
Further, we request that interested parties limit their executive 
summary of each issue to no more than 450 words, not including 
citations. We intend to use the executive summaries as the basis of the 
comment summaries included in the issues and decision memorandum that 
will accompany the final determination in these inquires. We request 
that interested parties include footnotes for relevant citations in the 
executive summary of each issue. Note that Commerce has amended certain 
of its requirements pertaining to the service of documents in 19 CFR 
351.303(f).\16\
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    \15\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \16\ See also Administrative Protective Order, Service, and 
Other Procedures in Antidumping and Countervailing Duty Proceedings, 
88 FR 67069, 67077 (September 29, 2023).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance within 30 days after the date of publication 
of this notice. Requests should contain the party's name, address, and 
telephone number, the number of participants, whether any participant 
is a foreign national, and a list of the issues to be discussed. If a 
request for a hearing is made, Commerce will inform parties of the time 
and date for the hearing. Parties should confirm by telephone the date, 
time, and location of the hearing two days before the scheduled date of 
the hearing.

U.S. International Trade Commission (ITC) Notification

    Consistent with section 781(e) of the Act, Commerce is notifying 
the ITC of this affirmative preliminary determination to include the 
merchandise subject to these inquiries within the Orders. Pursuant to 
section 781(e) of the Act, the ITC may request consultations concerning 
Commerce's proposed inclusion of the inquiry merchandise. These 
consultations must

[[Page 18602]]

be concluded within 15 days after the date of the request. If, after 
consultations, the ITC believes that a significant injury issue is 
presented by the proposed inclusion, it will have 60 days to provide 
written advice to Commerce.

Notification to Interested Parties

    This notice is published in accordance with section 781(a) of the 
Act and 19 CFR 351.226(g)(1).

    Dated: March 8, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiries
V. Period of the Circumvention Inquiries
VI. Application of Facts Available and Use of Adverse Inferences
VII. Statutory and Regulatory Framework for the Circumvention 
Inquiries
VIII. Analysis for the Circumvention Inquiries
IX. Country-Wide Determination
X. Certification Requirement
XI. Recommendation

Appendix II

Certification Requirements

    Importers are required to complete and maintain the applicable 
importer certification and retain all supporting documentation for 
the certification. With the exception of the entries described 
below, the importer certification must be completed, signed, and 
dated by the time the entry summary is filed for the relevant entry. 
The importer, or the importer's agent, must transmit the importer's 
certification to CBP as part of the entry process by uploading it 
into the document imaging system (DIS) in ACE. Where the importer 
uses a broker to facilitate the entry process, it should obtain the 
entry summary number from the broker. Agents of the importer, such 
as brokers, however, are not permitted to certify on behalf of the 
importer.
    Additionally, the claims made in certifications and any 
supporting documentation are subject to verification by Commerce 
and/or CBP. Importers are required to maintain certifications and 
supporting documentation until the later of: (1) the date that is 
five years after the latest entry date of the entries covered by the 
certification; or (2) the date that is three years after the 
conclusion of any litigation in United States courts regarding such 
entries.
    For all unthreaded pins of alloy steel from China that were 
entered, or withdrawn from warehouse, for consumption during the 
period July 12, 2023 (i.e., the date of publication of the 
Initiation Notice), through the date of publication of this 
preliminary determination in the Federal Register, where the entry 
has not been liquidated, the relevant certification should be 
completed and signed as soon as practicable, but not later than 45 
days after the date of publication of this preliminary determination 
in the Federal Register. For such entries, importers have the option 
to complete a blanket certification covering multiple entries, 
individual certifications for each entry, or a combination thereof.
    For unliquidated entries (and entries for which liquidation has 
not become final) of unthreaded pins of alloy steel from China that 
were declared as non-AD/CVD type entries (e.g., type 01) and 
entered, or withdrawn from warehouse, for consumption in the United 
States during the period July 12, 2023 (i.e., the date of 
publication of the Initiation Notice) through the date of 
publication of this preliminary determination in the Federal 
Register, for which none of the above certifications may be made, 
importers must file a Post Summary Correction with CBP, in 
accordance with CBP's regulations, regarding conversion of such 
entries from non-AD/CVD type entries to AD/CVD type entries (e.g., 
type 01 to type 03). The importer should pay cash deposits on those 
entries consistent with the regulations governing post summary 
corrections that require payment of additional duties.
    If it is determined that an importer has not met the 
certification and/or related documentation requirements for certain 
entries, Commerce intends to instruct CBP to suspend, pursuant to 
this preliminary country-wide affirmative determination of 
circumvention and the Orders, all unliquidated entries for which 
these requirements were not met and to require the importer to post 
applicable AD and CVD cash deposits equal to the rates noted above. 
Interested parties may comment in their case briefs on these 
certification requirements, and on the certification language 
contained in Appendix III to this notice.

Appendix III

Importer Certification

    I hereby certify that:
    (A) My name is {IMPORTING COMPANY OFFICIAL'S NAME{time}  and I 
am an official of {NAME OF IMPORTING COMPANY{time} , located at 
{ADDRESS OF IMPORTING COMPANY{time} .
    (B) I have direct personal knowledge of the facts regarding the 
importation into the Customs territory of the United States of 
unthreaded pins of alloy steel produced in China that entered under 
the entry summary number(s), identified below, and which are covered 
by this certification. Unthreaded pins of alloy steel are unthreaded 
rod, bar, or studs, having a solid, circular cross section of any 
diameter, in any length, and are non-headed. Unthreaded pins may 
enter unchamfered or with their ends already chamfered. Such pins 
may also be referenced as ``pitch diameter stud blanks'' or 
``blanks.''
    ``Direct personal knowledge'' refers to facts the certifying 
party is expected to have in its own records. For example, the 
importer should have direct personal knowledge of the importation of 
the product (e.g., the name of the exporter and producer) in its 
records.
    (C) If the importer is acting on behalf of the first U.S. 
customer, include the following sentence as paragraph C of this 
certification:
    The unthreaded pins of alloy steel covered by this certification 
were imported by {IMPORTING COMPANY{time}  on behalf of {U.S. 
CUSTOMER{time} , located at {ADDRESS OF U.S. CUSTOMER{time} .
    If the importer is not acting on behalf of the first U.S. 
customer, include the following sentence as paragraph C of this 
certification:
    {NAME OF IMPORTING COMPANY{time}  is not acting on behalf of the 
first U.S. customer.
    (D) The imported unthreaded pins of alloy steel covered by this 
certification were shipped to {NAME OF PARTY TO WHOM MERCHANDISE WAS 
FIRST SHIPPED IN THE UNITED STATES{time} , located at {ADDRESS OF 
SHIPMENT{time} .
    (E) Select appropriate statement below:
    __I have direct personal knowledge of the facts regarding the 
end use of the imported product because my company is the end user 
of the imported product covered by this certification and I certify 
that the unthreaded pins of alloy steel will not be used to produce 
subject merchandise. ``Direct personal knowledge'' includes 
information contained within my company's books and records.
    __I have personal knowledge of the facts regarding the end use 
of the imported product because my company is not the end user of 
the imported product covered by this certification. However, I have 
been able to contact the end user of the imported product and 
confirm that it will not use this product to produce subject 
merchandise. The end user of the imported product is {COMPANY 
NAME{time}  located at {ADDRESS{time} . ``Personal knowledge'' 
includes facts obtained from another party (e.g., correspondence 
received by the importer from the end user of the product).
    (F) The imported unthreaded pins of alloy steel from China 
covered by this certification were not produced and/or exported by 
either Ningbo Zhenghai Yongding Fastener Co., Ltd. or Ningbo 
Ningding Import & Export Co. Ltd.
    (G) This certification applies to the following entries (repeat 
this block as many times as necessary):
    Entry Summary #:
    Entry Summary Line Item #:
    Foreign Seller:
    Foreign Seller's Address:
    Foreign Seller's Invoice #:
    Foreign Seller's Invoice Line Item #:
    Producer:
    Producer's Address:
    (H) I understand that {NAME OF IMPORTING COMPANY{time}  is 
required to maintain a copy of this certification and sufficient 
documentation supporting this certification (i.e., documents 
maintained in the normal course of business, or documents obtained 
by the certifying party, for example, mill certificates, production 
records, invoices, etc.) for the later of: (1) a period of five 
years from the date of entry; or (2) a period of three years after 
the conclusion of any litigation in the United States courts 
regarding such entries.

[[Page 18603]]

    (I) I understand that {IMPORTING COMPANY{time}  is required to 
submit a copy of the importer certification as part of the entry 
summary by uploading it into the document imaging system (DIS) in 
ACE, and to provide U.S. Customs and Border Protection (CBP) and/or 
the U.S. Department of Commerce (Commerce) with the importer 
certification, and any supporting documentation, upon request of 
either agency.
    (J) I understand that the claims made herein, and the 
substantiating documentation, are subject to verification by CBP 
and/or Commerce.
    (K) I understand that failure to maintain the required 
certifications, and/or failure to substantiate the claims made 
herein, and/or failure to allow CBP and/or Commerce to verify the 
claims made herein, may result in a de facto determination that all 
entries to which this certification applies are within the scope of 
the antidumping/countervailing duty orders on steel threaded rod 
from China. I understand that such finding will result in:
    (i) suspension of liquidation of all unliquidated entries (and 
entries for which liquidation has not become final) for which these 
requirements were not met;
    (ii) the requirement that the importer post applicable 
antidumping duty and/or countervailing duty cash deposits (as 
appropriate) equal to the rates determined by Commerce; and
    (iii) the importer no longer being allowed to participate in the 
certification process.
    (L) I understand that agents of the importer, such as brokers, 
are not permitted to make this certification. Where a broker or 
other party was used to facilitate the entry process, {NAME OF 
IMPORTING COMPANY{time}  obtained the entry summary number and date 
of entry summary from that party.
    (M) This certification was completed at or prior to the date of 
entry summary or within 45 days of the date on which Commerce 
published notice of its preliminary circumvention findings in the 
Federal Register.
    (N) I am aware that U.S. law (including, but not limited to, 18 
U.S.C. 1001) imposes criminal sanctions on individuals who knowingly 
and willfully make material false statements to the U.S. government.

Signature
{NAME OF COMPANY OFFICIAL{time} 
{TITLE{time} 

[FR Doc. 2024-05464 Filed 3-13-24; 8:45 am]
BILLING CODE 3510-DS-P