80 FR 28962 - Certain Steel Nails From the Socialist Republic of Vietnam: Final Affirmative Countervailing Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 80, Issue 97 (May 20, 2015)

The Department of Commerce (Department) has determined that countervailable subsidies are being provided to producers and exporters of certain steel nails (nails) from the Socialist Republic of Vietnam (Vietnam). For information on the estimated countervailing duty rates, see the ``Suspension of Liquidation'' section, below.

[Federal Register Volume 80, Number 97 (Wednesday, May 20, 2015)]
[Notices]
[Pages 28962-28964]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12278]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-552-819]


Certain Steel Nails From the Socialist Republic of Vietnam: Final 
Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Department) has determined that 
countervailable subsidies are being provided to producers and exporters 
of certain steel nails (nails) from the Socialist Republic of Vietnam 
(Vietnam). For information on the estimated countervailing duty rates, 
see the ``Suspension of Liquidation'' section, below.

DATES: Effective Date: May 20, 2015.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin, Thomas Schauer, or 
Shane Subler, AD/CVD Operations, Office I, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue NW., Washington, DC 20230; telephone: 
(202) 482-6478, (202) 482-0410, and (202) 482-0189, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The petitioner in this investigation is Mid Continent Steel & Wire, 
Inc. The period for which we are measuring subsidies, or period of 
investigation, is January 1, 2013, through December 31, 2013.

Case History

    The events that have occurred since the Department published the 
Preliminary Determination on November 3, 2014,\1\ are discussed in the 
Issues and Decision Memorandum.\2\ The Issues and Decision Memorandum 
is a public document and is on file

[[Page 28963]]

electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at http://access.trade.gov, The 
Issues and Decision Memorandum is available to all parties in the 
Central Records Unit, room 7046 of the main Department of Commerce 
building. In addition, a complete version of the Issues and Decision 
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and the electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \1\ Certain Steel Nails From the Socialist Republic of Vietnam: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Countervailing Duty Determination With Final 
Antidumping Duty Determination, 79 FR 65184 (November 3, 2014) 
(Preliminary Determination) and accompanying Memorandum, ``Decision 
Memorandum for the Preliminary Determination in the Countervailing 
Duty Investigation of Certain Steel Nails from the Socialist 
Republic of Vietnam'' (Preliminary Decision Memorandum).
    \2\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations from 
James Maeder, Office Director, Office I, ``Decision Memorandum for 
the Final Determination in the Countervailing Duty Investigation of 
Certain Steel Nails from the Socialist Republic of Vietnam'' dated 
concurrently with this notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is certain steel nails 
from Vietnam. For a full description of the scope of the investigation, 
see Appendix I to this notice.
    Since the Preliminary Determination, several interested parties 
(i.e., IKEA Supply AG, The Home Depot, Target Corporation, and 
Petitioner) commented on the scope of these investigations. The 
Department reviewed these comments and made certain changes. For 
further discussion, see the Issues and Decision Memorandum. The scope 
in Appendix I reflects all modifications to the scope made by the 
Department for this final determination.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties to this investigation are 
addressed in the Issues and Decision Memorandum. Attached as Appendix 
II is a list of the issues that parties have raised and to which we 
have responded in the Issues and Decision Memorandum.

Use of Adverse Facts Available

    For purposes of this final determination, we have relied on facts 
available and applied adverse inferences, in accordance with sections 
776(a) and (b) of the Act, to determine the subsidy rates for the 
mandatory respondents. For a full discussion of these issues, see the 
Decision Memorandum, at ``Use of Facts Otherwise Available and Adverse 
Facts Available.''

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a countervailing duty rate for the two individually 
investigated producers/exporters of the subject merchandise, Region 
Industries Co., Ltd. (Region) and United Nail Products Co. (United). 
With respect to the all-others rate, section 705(c)(5)(A)(ii) of the 
Act provides that if the countervailable subsidy rates established for 
all exporters and producers individually investigated are determined 
entirely in accordance with section 776 of the Act, the Department may 
use any reasonable method to establish an all-others rate for exporters 
and producers not individually investigated. In this case, the rates 
calculated for the investigated companies are based entirely on adverse 
facts available under section 776 of the Act. Because there is no other 
information on the record, we based the all-others rate on the AFA 
rates calculated for Region and United, consistent with our 
practice.\3\ We calculated the all-others rate using a simple average 
of Region's and United's rates.
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    \3\ See Raw Flexible Magnets from the People's Republic of 
China: Affirmative Countervailing Duty Determination, 73 FR 39667 
(July 10, 2008); Final Affirmative Countervailing Duty 
Determination: Certain Hot-Rolled Carbon Steel Flat Products From 
Argentina, 66 FR 37007, 37008 (July 16, 2001); Final Affirmative 
Countervailing Duty Determination: Prestressed Concrete Steel Wire 
Strand From India, 68 FR 68356, 68357 (December 8, 2003).
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    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                  Company                            Subsidy rate
------------------------------------------------------------------------
Region Industries Co., Ltd.................  288.56 percent
United Nail Products Co. Ltd...............  313.97 percent
All Others.................................  301.27 percent
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    As a result of our affirmative Preliminary Determination, pursuant 
to sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise from Vietnam which were entered or withdrawn from 
warehouse, for consumption on or after November 3, 2014, the date of 
the publication of the Preliminary Determination in the Federal 
Register.
    In accordance with section 703(d) of the Act, we later 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 3, 2015, but to continue 
the suspension of liquidation of all entries from November 3, 2014, 
through March 2, 2015.
    We will issue a countervailing duty order and reinstate the 
suspension of liquidation under section 706(a) of the Act if the United 
States International Trade Commission (ITC) issues a final affirmative 
injury determination, and we will instruct CBP to 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 administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

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 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

[[Page 28964]]

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 13, 2015.
Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is certain steel 
nails having a nominal shaft length not exceeding 12 inches.\4\ 
Certain steel nails include, but are not limited to, nails made from 
round wire and nails that are cut from flat-rolled steel. Certain 
steel nails may be of one piece construction or constructed of two 
or more pieces. 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 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.
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    \4\ The shaft length of certain steel nails with flat heads or 
parallel shoulders under the head shall be measured from under the 
head or shoulder to the tip of the point. The shaft length of all 
other certain steel nails shall be measured overall.
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    Excluded from the scope of this investigation 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 length of one inch or less that are (a) a component of 
an unassembled article, (b) the total number of nails is sixty (60) 
or less, and (c) 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 steel 
nails that meet the specifications of Type I, Style 20 nails as 
identified in Tables 29 through 33 of ASTM Standard F1667 (2013 
revision).
    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 
7317.00.20.00 and 7317.00.30.00.
    Also excluded from the scope of this investigation are nails 
having 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, suitable 
for use in gas-actuated hand tools.
    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 
7317.00.10.00.
    Certain steel nails subject to this investigation are currently 
classified under HTSUS subheadings 7317.00.55.02, 7317.00.55.03, 
7317.00.55.05, 7317.00.55.07, 7317.00.55.08, 7317.00.55.11, 
7317.00.55.18, 7317.00.55.19, 7317.00.55.20, 7317.00.55.30, 
7317.00.55.40, 7317.00.55.50, 7317.00.55.60, 7317.00.55.70, 
7317.00.55.80, 7317.00.55.90, 7317.00.65.30, 7317.00.65.60 and 
7317.00.75.00. Certain steel nails subject to this investigation 
also may be classified under HTSUS subheading 8206.00.00.00 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 Comments and Issues in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Adverse Facts Available
VII. Analysis of Programs
VIII. Analysis of Comments
    Comment 1 Whether the Respondents Cooperated to the Best of 
their Ability and Should Be Subject to Adverse Facts Available
    Comment 2 Whether the Department's Post-Preliminary Application 
of Adverse Facts Available with Respect to Land Preferences for 
Enterprises in Encouraged Industries or Industrial Zones was 
Justified
    Comment 3 Whether the Department's Preliminary Application of 
Adverse Facts Available with Respect to Import Duty Exemptions for 
Raw Materials was Justified
IX. Recommendation

[FR Doc. 2015-12278 Filed 5-19-15; 8:45 am]
BILLING CODE 3510-DS-P