[Federal Register Volume 75, Number 98 (Friday, May 21, 2010)]
[Notices]
[Pages 28557-28560]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-12292]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-946]
Pre-Stressed Concrete Steel Wire Strand from the People's
Republic of China: Final Affirmative Countervailing Duty Determination
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
countervailable subsidies are being provided to producers and exporters
of pre-stressed concrete steel wire strand from the People's Republic
of China (the PRC). For information on the estimated subsidy rates, see
the ``Suspension of Liquidation'' section of this notice.
EFFECTIVE DATE: May 21, 2010.
FOR FURTHER INFORMATION CONTACT: Robert Copyak, AD/CVD Operations,
Office 3, Operations, Import Administration, U.S. Department of
Commerce, Room 4014, 14th Street and Constitution Avenue, NW,
Washington, DC 20230; telephone: (202) 482-2209.
SUPPLEMENTARY INFORMATION:
Background
This investigation covers 61 programs and the following producers/
exporters: Fasten Group Import & Export Co., Ltd. (Fasten I&E), Fasten
Group Corporation (Fasten Corp.), Jiangyin Fasten Steel (Fasten Steel),
Jiangyin Hongyu Metal Products Co., Ltd. (Hongyu Metal), Jiangyin
Walsin Steel Cable Co., Ltd. (Walsin) and Jiangyin Hongsheng Co., Ltd.
(Hongsheng) (collectively, the
[[Page 28558]]
Fasten Companies) and Xinhua Metal Products Company (Xinhua), Xinyu
Iron and Steel Joint Stock Limited Company (Xinyu), and Xinyu Iron and
Steel Limited Liability Company (Xingang) (collectively, the Xinhua
Companies). The petitioners in this investigation are American Spring
Wire Corp., Insteel Wire Products Company, and Sumiden Wire Products
Corp. (collectively, the petitioners).
Period of Investigation
The period of investigation (the POI) for which we are measuring
subsidies is January 1, 2008, through December 31, 2008, which
corresponds to the PRC's most recently completed fiscal year. See 19
CFR 351.204(b)(2).
Case History
The following events have occurred since the Department announced
the Preliminary Determination on October 27, 2009. See Pre-Stressed
Concrete Steel Wire Strand from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination, 74 FR 56756
(November 2, 2009) (Preliminary Determination).
From November 3, 2009, through December 23, 2009, we issued
supplemental questionnaires to Government of the PRC (the GOC), the
Fasten Companies, and the Xinhua Companies. From November 9, 2009,
through January 25, 2010, the GOC, the Fasten Companies, and the Xinhua
Companies submitted supplemental questionnaire responses. On October
28, 2009, petitioners requested that the Department align the due date
of the final determination of the countervailing duty (CVD)
investigation with the due date of the final determination in the
companion antidumping (AD) investigation. On November 13, 2009, the
Department aligned the due date of the final determination in the CVD
investigation with the due date of the final determination in the AD
investigation. See Pre-Stressed Concrete Steel Wire Strand from the
People's Republic of China: Alignment of Final Countervailing Duty
Determination with Final Antidumping Duty Determination, 74 FR 59960
(November 19, 2009). On November 20, 2009, the Xinhua Companies
submitted a request for a public hearing. From November 23, 2009,
through January 22, 2010, we issued verification outlines to the Fasten
Companies, the GOC, and the Xinhua Companies. From January 14, 2010,
through February 3, 2010, verifiers from the Department conducted
verification of the questionnaire responses submitted by the Fasten
Companies, the Xinhua Companies, and the GOC. From February 23, 2010,
through March 9, 2010, we issued verification reports for the GOC, the
Fasten Companies, and the Xinhua Companies. On March 16 and March 24,
interested parties submitted their case and rebuttal briefs. On April
14, 2010, the Department placed on the record of the investigation
publicly available information concerning the provision of wire rod for
less than adequate remuneration (LTAR) program. See Memorandum to the
File from Eric B. Greynolds, Program Manager, Office 3, Operations
(April 14, 2010) (New Information Memorandum). On April 21 and 26,
2010, interested parties submitted comments and clarifying information
concerning the information the Department placed on the record.
As explained in the memorandum from the Deputy Assistant Secretary
for Import Administration, the Department has exercised its discretion
to toll deadlines for the duration of the closure of the Federal
Government from February 5, through February 12, 2010. Thus, all
deadlines in this segment of the proceeding have been extended by seven
days. The revised deadline for this CVD investigation is now May 14,
2010. See Memorandum to the Record from Ronald K Lorentzen, Deputy
Assistant Secretary for Import Administration, regarding ``Tolling of
Administrative Deadlines As a Result of the Government Closure During
the Recent Snowstorm,'' dated February 12, 2010.''
Scope of Investigation
For purposes of this investigation, PC strand is steel wire strand,
other than of stainless steel, which is suitable for use in, but not
limited to, pre-stressed concrete (both pre-tensioned and post-
tensioned) applications. The scope of this investigation encompasses
all types and diameters of PC strand whether uncoated (uncovered) or
coated (covered) by any substance, including but not limited to,
grease, plastic sheath, or epoxy. This merchandise includes, but is not
limited to, PC strand produced to the American Society for Testing and
Materials (ASTM) A-416 specification, or comparable domestic or foreign
specifications. PC strand made from galvanized wire is excluded from
the scope if the zinc and/or zinc oxide coating meets or exceeds the
0.40 oz./ft[bds2] standard set forth in ASTM-A-475.
The PC strand subject to this investigation is currently
classifiable under subheadings 7312.10.3010 and 7312.10.3012 of the
Harmonized Tariff Schedule of the United States (HTSUS). Although the
HTSUS subheadings are provided for convenience and customs purposes,
the written description of the scope of this investigation is
dispositive.
Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, the International Trade
Commission (the ITC) is required to determine whether imports of the
subject merchandise from the PRC materially injure, or threaten
material injury to, a U.S. industry. On July 17, 2009, the ITC
published its preliminary determination finding that there is a
reasonable indication that an industry in the United States is
materially injured or threatened with material injury by reason of
imports from the PRC of the subject merchandise. See Pre-Stressed
Concrete Steel Wire Strand from China, Investigation Nos. 701-TA-464
and 731-TA-1160 (Preliminary), 74 FR 34782 (July 17, 2009).
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the Decision Memorandum. Attached
to this notice as an Appendix is a list of the issues that parties
raised and to which we have responded in the Decision Memorandum.
Parties can find a complete discussion of all issues raised in this
investigation and the corresponding recommendations in this public
memorandum, which is on file in the Department's Central Records Unit.
In addition, a complete version of the Decision Memorandum can be
accessed directly on the Internet at http://ia.ita.doc.gov/frn/. The
paper copy and electronic version of the Decision Memorandum are
identical in content.
Suspension of Liquidation
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have
calculated an individual rate for the companies under investigation:
the Fasten Companies and the Xinhua Companies. Sections 703(d) and
705(c)(5)(A) of the Act state that for companies not investigated, we
will determine an all-others rate by weighting the individual company
subsidy rate of each of the companies investigated by each company's
exports of the subject merchandise to the United States. The all-others
rate may not include zero and de minimis net subsidy rates, or any
rates based solely on the facts available.
Notwithstanding the language of section 705(c)(1)(B)(i)(I) of the
Act, we have not calculated the all-others rate by weight averaging the
rates of the Fasten Companies and the Xinhua
[[Page 28559]]
Companies because doing so risks disclosure of proprietary information.
Therefore, for the all-others rate, we have calculated a simple average
of the two responding firms' rates.
------------------------------------------------------------------------
Producer/Exporter Subsidy Rate
------------------------------------------------------------------------
Fasten Group Corporation 8.85 percent ad valorem
(Fasten Corp.), Fasten Group
Import & Export Co., Ltd.
(Fasten I&E), Jiangyin
Hongsheng Co. Ltd.
(Hongsheng), Jiangyin Fasten
Steel (Fasten Steel), Jiangyin
Hongyu Metal Products Co.,
Ltd. (Hongyu Metal), and
Jiangyin Walsin Steel Cable
Co., Ltd. (Walsin)
(Collectively, the Fasten
Companies)....................
Xinhua Metal Products Company 45.85 percent ad valorem
(Xinhua), Xinyu Iron and Steel
Joint Stock Limited Company
(Xinyu), and Xinyu Iron and
Steel Limited Liability
Company (Xingang)
(Collectively the Xinhua
Companies)....................
All Others..................... 27.35 percent ad valorem
------------------------------------------------------------------------
As a result of our Preliminary Determination and pursuant to
section 703(d) of the Act, we instructed the U.S. Customs and Border
Protection (CBP) to suspend liquidation of all entries of subject
merchandise from the PRC which were entered or withdrawn from
warehouse, for consumption on or after November 2, 2009, the date of
the publication of the Preliminary Determination in the Federal
Register. In accordance with sections 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 March 2, 2010, but to continue
the suspension of liquidation of all entries from November 2, 2010,
through March 1, 2010.
We will issue a CVD order and reinstate the suspension of
liquidation under section 706(a) of the Act if the ITC issues a final
affirmative injury determination, and will require a cash deposit of
estimated countervailing duties for such entries of 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.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. 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 APO, without the written consent of the Assistant Secretary
for Import Administration.
Return or Destruction of Proprietary Information
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an administrative protective order (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.
This determination is published pursuant to sections 705(d) and
777(i) of the Act.
Dated: May 14, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
APPENDIX
List of Comments and Issues in the Decision Memorandum
Comment 1: Whether the Imposition of Countervailing Duties on the Same
Imports that are Subject to Commerce's NME AD Methodology is Contrary
to Law
Comment 2: Whether the Simultaneous Application of CVD Market
Benchmarks and the AD Surrogate Value Methodology Unlawfully Double-
Counts the Remedy for Domestic Subsidies
Comment 3: Whether the Department May Place the Burden on Respondents
to ``Prove'' the Double-Counting of Remedies
Comment 4: Whether the Department's Application of a December 11, 2001
``Cut-Off'' Date for Examining Alleged Subsidies Is Appropriate
Comment 5: Whether the GOC Failed to Cooperate in Providing Ownership
Information for Producer A in a Manner that Warrants the Application of
AFA
Comment 6: Whether the GOC Failed to Cooperate in Providing Ownership
Information for Producer B in a Manner that Warrants the Application of
AFA
Comment 7: Whether Record Evidence Demonstrates that Producer A is a
GOC Authority
Comment 8: Whether Record Evidence Demonstrates that Producer B is a
GOC Authority
Comment 9: Whether the GOC Failed to Indicate Whether Certain Wire Rod
Suppliers Were Producers or Trading Companies
Comment 10: Whether SOEs and Firms Majority-Owned by the GOC Constitute
Government Authorities
Comment 11: Whether Private Resellers of Wire Rod Should Be Treated as
Government Authorities
Comment 12: Whether the Provision of Wire Rod to PC Strand Producers is
Specific
Comment 13: Whether the Benchmark for the Wire Rod for LTAR Program
Should Reflect All Delivery Charges, Including Shipping and Insurance
Costs
Comment 14: Whether the Department Should Include Wire Rod Prices from
the CRU Monitor and AMM Monitor in the LTAR Benchmark
Comment 15: Whether to Use an In-Country Benchmark to Measure Benefits
Under the Provision of Wire Rod for LTAR Program
Comment 16: Whether Benefits Under the Provision of Wire Rod Program
Should Be Attributed to Sales of Fasten I&E and Hongshen
Comment 17: Whether the Wire Rod Sold for LTAR Should be Attributed
Only to Sales of Wire Rod
Comment 18: Whether the Department Committed a Ministerial Error for
the Fasten and the Xinhua Companies Under the Provision of Wire Rod for
LTAR Program And Whether the Department Should Correct the GOC
Verification Report for Alleged Errors
[[Page 28560]]
Comment 19: Whether the Department Erred By Including Intra-Company
Sales in the Denominator Used in the Net Subsidy Calculation of the
Wire Rod for LTAR Program
Comment 20: The Suitability of the Benchmark Used to Calculate Benefits
Under the Policy Lending Program
Comment 21: Whether GOC Policy Lending Is Specific
Comment 22: Whether Chinese Banks are Government Authorities
Comment 23: Whether The Department Should Apply AFA Available to
Unverifiable Information Provided by Xinhua
Comment 24: Whether the Department Should Investigate the PRC's Alleged
Undervaluation of its Currency and Find that it Constitutes a
Countervailable Export Subsidy
Comment 25:Whether Provision of Land by Municipal and Provincial
Governments to Respondents Was Countervailable
Comment 26:Whether the Provision of Electricity Is Not Countervailable
Because the Program Provides General Infrastructure Which Does Not
Constitute a Financial Contribution, Co 27, 45
[FR Doc. 2010-12292 Filed 5-20-10; 8:45 am]
BILLING CODE 3510-DS-S