[Federal Register Volume 75, Number 109 (Tuesday, June 8, 2010)]
[Notices]
[Pages 32362-32366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13776]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-948]
Certain Steel Grating 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) has determined
that countervailable subsidies are being provided to producers and
exporters of steel grating from the People's Republic of China (PRC).
For information on the estimated countervailable subsidy rates, please
see the ``Suspension of Liquidation'' section, below.
EFFECTIVE DATE: June 8, 2010.
FOR FURTHER INFORMATION CONTACT: Justin Neuman or Nicholas Czajkowski
AD/CVD Operations, Office 6, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
0486, (202) 482-1395, respectively.
Petitioners
Petitioners in this investigation are Alabama Metal Industries
Corp. (AMICO) and Fisher & Ludlow (collectively, ``Petitioners'').
Period of Investigation
The period for which we are measuring subsidies, i.e., the period
of investigation (POI), is January 1, 2008 through December 31, 2008.
Case History
The following events have occurred since the preliminary
determination. See Certain Steel Grating from the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Countervailing Duty Determination with Final
Antidumping Duty Determination, 74 FR 56796 (November 3, 2009)
(Preliminary Determination).
The Department issued several supplemental questionnaires to the
Government of the People's Republic of China (GOC) and Ningbo Jiulong
Machinery Manufacturing Co., Ltd. (Ningbo Jiulong). The Department
received responses to questionnaires issued to the GOC in December
2009, as well as in January and February 2010. The Department received
responses to questionnaires issued to Ningbo Jiulong in December 2009,
as well as in January, February, and March 2010. Public versions of the
questionnaires and
[[Page 32363]]
responses, as well as the various memoranda cited below, are available
in the Department's Central Records Unit (Room 1117 in the HCHB
Building) (hereinafter referred to as the CRU).
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 final CVD determination is now May
28, 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'' (February 12, 2010).
On February 24, 2010, Department officials met with Petitioners'
counsel to discuss issues related to the upcoming verification of the
GOC and Ningbo Jiulong. See Memorandum for the File from Nicholas
Czajkowski, Case Analyst, AD/CVD Operations, Meeting with Counsel for
Petitioners: Countervailing Duty Investigation on Certain Steel Grating
from the People's Republic of China (February 26, 2010).
On March 8, 2010, Petitioners placed on the record a detailed
analysis of mill test certificates that were provided to the Department
by Ningbo Jiulong. See Letter to Secretary Locke from Timothy C.
Brightbill, Certain Steel Grating from the People's Republic of China:
Comments on Mill Test Certificates (March 8, 2010).
From March 8 through March 13, 2010, we conducted verification of
the questionnaire responses submitted by the GOC and Ningbo Jiulong. We
issued verification reports on April 14, 2010. See Memorandum to the
File from Thomas Beline, Staff Attorney; Nicholas Czajkowski,
International Trade Analyst; and Justin Neuman, International Trade
Analyst, Verification of the Questionnaire Responses Submitted by the
Government of China (April 14, 2010), and Memorandum to the File from
Thomas Beline, Staff Attorney; Nicholas Czajkowski, International Trade
Analyst; and Justin Neuman, International Trade Analyst, Verification
of the Questionnaire Responses Submitted by Ningbo Jiulong Machinery
Manufacturing Co., Ltd. and Ningbo Zhenhai Jiulong Electronic Equipment
Factory (April 14, 2010) (Ningbo Jiulong Verification Report).
On March 15, 2010, Ningbo Jiulong filed a copy of the minor
corrections provided to the Department at verification. See Letter to
Secretary Locke from Gregory S. Menegaz, Certain Steel Grating from the
People's Republic of China - Minor Corrections - Ningbo Jiulong (March
15, 2010).
On March 23, 2010, we requested permission from Customs and Border
Protection (CBP) to place on the record certain entry documents that it
had provided for the record in the corresponding antidumping (AD)
investigation. See Memorandum to Tom Futtner, Supervisory Import
Compliance Analyst, Customs Unit, Import Administration from Nicholas
Czajkowski, International Trade Analyst, Office 6, Countervailing Duty
Investigation of Certain Steel Grating from the People's Republic of
China: Request for Customs Documents (March 23, 2010). Those documents
were placed on the record on April 6, 2010. See Memorandum to the File
from Nicholas Czajkowski, Trade Analyst, Office 6, AD/CVD Operations,
Countervailing Duty Investigation of Certain Steel Grating (CSG) from
the People's Republic of China (PRC): CBP Entry Documents (April 6,
2010).
On March 23, 2010, we issued a letter establishing a deadline for
parties to rebut factual information recently added to the record. See
Letter to Ningbo Jiulong from Barbara E. Tillman, Director, AD/CVD
Operations, Office 6, Countervailing Duty Investigation; Certain Steel
Grating from the People's Republic of China (March 23, 2010).
On March 23, 2010, Ningbo Jiulong filed clarifying and rebuttal
comments related to Petitioners' March 8, 2010 analysis of mill test
certificates provided by Ningbo Jiulong to the Department. See Letter
to Secretary Locke from Ningbo Jiulong, Steel Grating from China -
Ningbo Jiulong Machinery Manufacturing Co. Ltd. and Ningbo Zhenhai
Jiulong Electronic Equipment Factory - Rebuttal to Petitioners' March
8, 2010 Submission (March 24, 2010).
On April 15, 2010, we issued our post-preliminary determination
regarding the ``Provision of Electricity at Less than Adequate
Remuneration.'' See Memorandum to Ronald K. Lorentzen, Deputy Assistant
Secretary for Import Administration from John M. Andersen, Acting
Deputy Assistant Secretary for AD/CVD Operations, Countervailing Duty
Investigation of Certain Steel Grating from the People's Republic of
China (PRC): Post-Preliminary Determination Regarding the Provision of
Electricity for Less than Adequate Remuneration (April 15, 2010).
On April 23, 2010, we received comments from Ningbo Jiulong
regarding what it considers to be several significant errors in the
Ningbo Jiulong Verification Report issued by the Department on April
14, 2010, and urging the Department not to let those errors color its
analysis for the purposes of the final determination.
On April 26, 2010, we received case briefs from Petitioners, the
GOC, Ningbo Jiulong, and Yantai Xinke Steel Structure Co., Ltd. (an
exporter/producer of steel grating that was not selected as a mandatory
respondent in this investigation). On April 28, the Department issued a
letter rejecting Petitioners' brief because it contained new factual
information. See Letter to AMICO and Fisher & Ludlow from Barbara E.
Tillman, Director, AD/CVD Operations, Office 6, Import Administration,
Rejection of New Factual Information Submitted in Case Brief Dated
April 26, 2010. Petitioners resubmitted their brief on April 29, 2010.
Rebuttal briefs were submitted by Petitioners, the GOC, and Ningbo
Jiulong on May 3, 2010.
On May 4, 2010, Ningbo Jiulong withdrew its request for a hearing.
On May 6, 2010, Department officials met with representatives of Ningbo
Jiulong regarding issues in the briefs submitted by their client and by
Petitioners. See Memorandum for the File from Justin M. Neuman,
International Trade Analyst, AD/CVD Operations, Office 6, Ex-Parte
Meeting with Representatives of Ningbo Jiulong Machinery Manufacturing
Co., Ltd. (May 10, 2010). On May 10, 2010, Department officials met
with Petitioners' counsel to discuss issues related to the briefs. See
Memorandum for the File from Justin M. Neuman, International Trade
Analyst, AD/CVD Operations, Office 6, Countervailing Duty Investigation
of Certain Steel Grating from the People's Republic of China: Ex-Parte
Meeting with Representatives of Alabama Metal Industries, Fisher and
Ludlow (May 19, 2010).
Scope of the Investigation
The products covered by this investigation are certain steel
grating, consisting of two or more pieces of steel, including load-
bearing pieces and cross pieces, joined by any assembly process,
regardless of: (1) size or shape; (2) method of manufacture; (3)
metallurgy (carbon, alloy, or stainless); (4) the profile of the bars;
and (5) whether or not they are galvanized, painted, coated, clad or
plated. Steel grating is also commonly referred to as ``bar grating,''
although the components may consist of steel other than bars, such as
hot-rolled sheet, plate, or wire rod.
The scope of this investigation excludes expanded metal grating,
which
[[Page 32364]]
is comprised of a single piece or coil of sheet or thin plate steel
that has been slit and expanded, and does not involve welding or
joining of multiple pieces of steel. The scope of this investigation
also excludes plank type safety grating which is comprised of a single
piece or coil of sheet or thin plate steel, typically in thickness of
10 to 18 gauge, that has been pierced and cold formed, and does not
involve welding or joining of multiple pieces of steel.
Certain steel grating that is the subject of this investigation is
currently classifiable in the Harmonized Tariff Schedule of the United
States (``HTSUS'') under subheading 7308.90.7000. While the HTSUS
subheading is 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 Tariff Act of 1930, as amended (the
Act), the International Trade Commission (ITC) is required to
determine, pursuant to section 701(a)(2) of the Act, whether imports of
the subject merchandise from the PRC materially injure, or threaten
material injury to, a United States industry. On July 20, 2009, the ITC
published its preliminary determination that there is a reasonable
indication that an industry in the United States is materially injured
by reason of allegedly subsidized imports from the PRC of subject
merchandise. See Certain Steel Grating From China Determinations, 74 FR
35204 (July 20, 2009); and Certain Steel Grating from China
(Preliminary), USITC Pub. 4087, Inv. Nos. 701-TA-465 and 731-TA-1161
(July 2009).
Analysis of Subsidy Programs and Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the Memorandum to Ronald K.
Lorentzen, Deputy Assistant Secretary for Import Administration, from
John M. Andersen, Acting Deputy Assistant Secretary for Antidumping and
Countervailing Duty Operations, entitled ``Issues and Decision
Memorandum for the Final Determination in the Countervailing Duty
Investigation of Certain Steel Grating from the People's Republic of
China,'' dated concurrently with this notice (hereinafter, Decision
Memorandum), which is hereby adopted by this notice. Attached to this
notice as an Appendix is a list of the issues that parties have raised
and to which we have responded in the Decision Memorandum. The Decision
Memorandum also contains a complete analysis of the programs covered by
this investigation, and the methodologies used to calculate the subsidy
rates. 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 Central Records Unit, room 1117 in
the main building of the Commerce Department. 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.
Use of Adverse Facts Available
For purposes of this final determination, we have relied on facts
available and drawn adverse inferences, in accordance with sections
776(a) and (b) of the Act, with regard to Ningbo Jiulong's receipt of
countervailable subsidies under the ``Provision of Hot-Rolled Steel for
Less than Adequate Remuneration'' and ``Provision of Wire Rod for Less
than Adequate Remuneration'' programs. A full discussion of our
decision to apply partial adverse facts available (AFA) is presented in
the Decision Memorandum in the section ``Application of Facts
Available, Including the Application of Adverse Inferences,'' as well
as the Department's position on Comment 4 in the Decision Memorandum.
With respect to the GOC's ``Provision of Electricity for Less than
Adequate Remuneration,'' the Department has also relied upon facts
available and drawn adverse inferences, in accordance with sections
776(a) and (b) of the Act. A full discussion of our decision to apply
partial AFA is presented in the section ``Application of Facts
Available, Including the Application of Adverse Inferences,'' and the
Department's position on Comment 10 of the Decision Memorandum.
Suspension of Liquidation
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have
calculated an individual rate for the mandatory respondent under
investigation, Ningbo Jiulong Machinery Manufacturing Co., Ltd. Section
705(c)(5)(A)(i) of the Act states that for companies not 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. In this investigation, the Department selected
two mandatory respondents to review. After receiving and reviewing the
questionnaire responses of one of the mandatory respondents, United
Steel Structures, Ltd. (USSL), the Department determined that, because
USSL was not a steel grating exporter or producer, it would be an
inappropriate mandatory respondent in this investigation. See
Memorandum to Ronald K. Lorentzen, Acting Assistant Secretary for
Import Administration from John M. Andersen, Acting Deputy Assistant
Secretary for AD/CVD Operations, Countervailing Duty Investigation of
Certain Steel Grating from the People's Republic of China: Whether USSL
Should be Maintained as a Mandatory Respondent. However, because that
determination was made on October 23, 2009, three days before the
preliminary determination, the Department determined that it could not
select an additional mandatory respondent to calculate an individual
rate for in this investigation. Because there is only one respondent in
this investigation for which the Department has calculated a company-
specific rate, consistent with our practice and section 705(c)(5)(A)(i)
of the Act, its rate serves as the ``all others'' rate. See e.g., Final
Affirmative Countervailing Duty Determination: Certain Hot-Rolled
Carbon Steel Flat Products from Thailand, 66 FR 50410, 50411 (October
3, 2001); and Final Affirmative Countervailing Duty Determination: Pure
Magnesium From Israel, 66 FR 49351, 49353 (Sept. 27, 2001).
------------------------------------------------------------------------
Net
Exporter/Manufacturer Countervailable
Subsidy Rate
------------------------------------------------------------------------
Ningbo Jiulong Machinery Manufacturing Co., Ltd........ 62.46[percnt]
ad valorem
All Others............................................. 62.46[percnt]
ad valorem
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As a result of our Preliminary Determination, we instructed CBP to
suspend liquidation of all entries of steel grating from the PRC which
were entered or withdrawn from warehouse, for consumption on or after
November 3, 2009, the date of the publication of the Preliminary
Determination in the Federal Register and to collect cash deposits of
estimated countervailing duties or bonds, in the amount of the
preliminary countervailing duty rates.
Pursuant to section 703(d) of the Act, we subsequently instructed
CBP to discontinue the suspension of liquidation for countervailing
duty
[[Page 32365]]
purposes for subject merchandise entered on or after March 3, 2010, but
to continue the suspension of liquidation of entries made on or after
November 3, 2009 through March 2, 2010.
If the ITC issues a final affirmative injury determination, we will
issue a countervailing duty order and order CBP to resume the
suspension of liquidation of entries of steel grating and to require a
cash deposit on all such entries equal to the subsidy rate listed
above. If the ITC determines that material injury, or threat of
material injury, does not exist, this proceeding will be terminated and
all deposits 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 issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: May 28, 2010.
Paul Piquado,
Acting Deputy Assistant Secretary for Import Administration.
Appendix
I. Summary
II. Background
III. Subsidies Valuation
A. Date of Applicability of CVD Law to the PRC
B. Allocation Period
C. Cross-Ownership
IV. Application of Facts Available, Including the Application of
Adverse Inferences
V. Analysis of Programs
A. Programs Determined to Be Countervailable
1. Government Provision of Hot-Rolled Steel for Less than Adequate
Remuneration
2. Government Provision of Wire Rod for Less than Adequate
Remuneration
3. Income Tax Credits for Domestically Owned Companies Purchasing
Domestically Produced Equipment
4. Government Provision of Electricity for Less than Adequate
Remuneration
5. Other Grant Programs
a) Export Grant 2006, 2007, 2008
b) Jiulong Lake Town Grant 2008
c) Energy Saving Grant 2008
d) Foreign Trade Grant 2008
e) Famous Brand Grant 2008
f) Innovative Small- and Medium-Sized Enterprise Grant 2008
g) Water Fund Refund/Exemption 2008
h) Product Quality Grant
B. Program Determined To Be Not Countervailable
Cleaning Production Grant 2008
C. Programs Determined To Be Not Used or To Not Provide Benefits During
the POI
1. GOC Provision of Steel Bar for Less than Adequate Remuneration
2. GOC Provision of Steel Plate for Less than Adequate Remuneration
3. GOC Provision of Land-Use Rights to SOEs for Less than Adequate
Remuneration
4. ``Two Free, Three Half'' Program
5. Reduced Income Tax Rates for Export-Oriented FIEs
6. Preferential Income Tax Policy for Enterprises in the Northeast
Region
7. Forgiveness of Tax Arrears for Enterprises in the Old Industrial
Bases of Northeast China
8. Tax Subsidies for FIES in Specially Designated Geographic Areas
9. Local Income Tax Exemption and Reduction Programs for
``Productive'' FIEs
10. Income Tax Credits for FIEs Purchasing Domestically Produced
Equipment
11. Preferential Tax Programs for FIEs Recognized as High or New
Technology Enterprises
12. Import Tariff and Value Added Tax (``VAT'') Exemptions for
Encouraged Industries Importing Equipment for Domestic Operations
13. VAT and Tariff Exemptions for Purchases of Fixed Assets Under
the Foreign Trade Development Fund
14. Loans and Interest Subsidies Provided Pursuant to the Northeast
Revitalization Program
15. Grants to ``Third-Line'' Military Enterprises
16. Guangdong and Zhejiang Province Program to Rebate Antidumping
Fees
17. The State Key Technology Project Fund
18. Export Incentive Payments Characterized as ``VAT Rebates''
19. VAT Refunds for FIEs Purchasing Domestically-Produced Equipment
20. Technical Upgrading Grant 2005, 2007
21. Power Engine Grant 2005
22. Technical Innovation Grant 2006
D. Programs For Which Ningbo Jiulong Is Determined to Be Ineligible
1. Liaoning Province ``Five Points, One Line'' Program
2. Guangzhou City Famous Exports Brands
3. Grants to Companies for ``Outward Expansion'' in Guangdong
Province
IV. Analysis of Comments
Comment 1: Application of U.S. Countervailing Duty Law to China
Comment 2: Cut-Off Date
Comment 3: Selection of Two Mandatory Respondents
Comment 4: Application of Adverse Facts Available
Comment 5: Department Procedures
Comment 6: Provision of Hot-Rolled Steel and Wire Rod for Less than
Adequate Remuneration - The Role of Mill Test Certificates
Comment 7: Provision of Hot-Rolled Steel and Wire Rod for Less than
Adequate Remuneration - Whether These Programs Are Countervailable
Comment 8: Provision of Hot-Rolled Steel and Wire Rod for Less than
Adequate Remuneration - Appropriate Benchmark
[[Page 32366]]
Comment 9: Income Tax Credits for Domestically Owned Companies
Purchasing Domestically Produced Equipment
Comment 10: Provision of Electricity for Less than Adequate
Remuneration
Comment 11: Grant Programs
Comment 12: Separate CVD Rate for Xinke
VII. Recommendation
[FR Doc. 2010-13776 Filed 6-7-10; 8:45 am]
BILLING CODE 3510-DS-S