80 FR 28968 - Certain Steel Nails From Malaysia: Final Negative Countervailing Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

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

Page Range28968-28969
FR Document2015-12252

The Department of Commerce (the Department) determines that de minimis countervailable subsidies are being provided to producers and exporters of certain steel nails (nails) from Malaysia. The period of investigation is January 1, 2013 through December 31, 2013.

Federal Register, Volume 80 Issue 97 (Wednesday, May 20, 2015)
[Federal Register Volume 80, Number 97 (Wednesday, May 20, 2015)]
[Notices]
[Pages 28968-28969]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12252]



[[Page 28968]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-557-817]


Certain Steel Nails From Malaysia: Final Negative Countervailing 
Duty Determination

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

SUMMARY: The Department of Commerce (the Department) determines that de 
minimis countervailable subsidies are being provided to producers and 
exporters of certain steel nails (nails) from Malaysia. The period of 
investigation is January 1, 2013 through December 31, 2013.

DATES: Effective Date: May 20, 2015.

FOR FURTHER INFORMATION CONTACT: Yasmin Nair or Ilissa Shefferman, AD/
CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3813 and (202) 482-4684, respectively.

SUPPLEMENTARY INFORMATION:

Background

    The petitioner in this investigation is Mid Continent Steel & Wire, 
Inc. (Petitioner). The Department has determined two subsidy programs 
to be countervailable in this investigation. In addition to the 
Government of Malaysia (the GOM), the respondents to this investigation 
are Inmax Sdn. Bhd. and Inmax Industries Sdn. Bhd (collectively, Inmax) 
and Region System Sdn. Bhd (Region).

Case History

    The following events have occurred since we published the 
Preliminary Determination on November 3, 2014.\1\
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    \1\ See Certain Steel Nails From Malyasia: Preliminary Negative 
Countervailing Duty Determination and Alignment of Final 
Countervailing Duty Determination With Final Antidumping Duty 
Determination, 79 FR 65179 (November 3, 2014) (Preliminary 
Determination).
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    We conducted verification of the GOM's, Inmax's, and Region 
System's questionnaire responses from January 22 through January 28, 
2015, and issued verification reports on March 3, 2015. Petitioner 
submitted a case brief on March 18, 2015. Inmax and Region System 
submitted a rebuttal brief on March 23, 2015.

Scope of the Investigation

    The product covered by this investigation is certain steel nails 
from Malaysia. 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.\2\ The 
scope in Appendix I reflects all modifications to the scope made by the 
Department for this final determination.
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    \2\ See Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, from 
Abdelali Elouaradia, Acting Office Director for Enforcement and 
Compliance (Office VI), ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Steel Nails from Malaysia'' (Issues and Decision 
Memorandum), dated concurrently with this determination and hereby 
adopted by this notice.
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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 Memorandum to Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, ``Issues 
and Decision Memorandum for the Final Determination in the 
Countervailing Duty Investigation of Certain Steel Nails from 
Malaysia'' (Issues and Decision Memorandum),\3\ which is concurrently 
dated with, and hereby adopted by, this notice. A list of subsidy 
programs and the issues that parties raised, and to which we responded 
in the Issues and Decision Memorandum, is attached to this notice as 
Appendix II. The Issues and Decision Memorandum is a public document 
and is on file electronically via ACCESS. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
on the Internet at http://enforcement.trade.gov/frn/index.html. The 
signed Issues and Decision Memorandum and the electronic version of the 
Issues and Decision Memorandum are identical in content.
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    \3\ Public versions of all business proprietary documents and 
all public documents are on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized 
Electronic Service System (ACCESS). Access to ACCESS is available to 
registered users at http://access.trade.gov and in the Department's 
Central Records Unit, room 7046 of the main Department building.
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Final Determination

    The total estimated net countervailable subsidy rates are:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Inmax Sdn. Bhd and Inmax Industries Sdn. Bhd................      * 0.01
Region System Sdn. Bhd......................................      * 0.02
------------------------------------------------------------------------
* De minimis.

    Because the total estimated net countervailable subsidy rates for 
the examined companies are de minimis, we determine that 
countervailable subsidies are not being provided to producers or 
exporters of nails in Malaysia. Consistent with section 705(c)(1)(B) of 
the Tariff Act of 1930, as amended (the Act), we have not calculated an 
all-others rate because we have not reached an affirmative final 
determination. Because our final determination is negative, this 
proceeding is terminated in accordance with section 705(c)(2) of the 
Act.
    In the Preliminary Determination, the total net countervailable 
subsidy rates for the individually examined respondents were de minimis 
and, therefore, we did not suspend liquidation of entries of nails from 
Malaysia.\4\ Because the estimated subsidy rates for the examined 
companies are de minimis in this final determination, we are not 
directing U.S. Customs and Border Protection to suspend liquidation of 
entries of nails from Malaysia.
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    \4\ See Preliminary Determination, 79 FR at 65180.
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United States International Trade Commission (USITC) Notification

    In accordance with section 705(d) of the Act, we will notify the 
USITC of our final determination. Because our final determination is 
negative, this investigation is terminated.

Return or Destruction of Proprietary Information

    This notice serves 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 that is subject 
to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.


[[Page 28969]]


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

Appendix 1

Scope of the Investigation

    The merchandise covered by this investigation is certain steel 
nails having a nominal shaft length not exceeding 12 inches.\5\ 
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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    \5\ 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 2

List of Comments and Issues in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Subsidies Valuation
VI. Analysis of Programs
VII. Analysis of Comment
    Comment: Countervailability of Sales Tax Exemptions
VIII. Recommendation

[FR Doc. 2015-12252 Filed 5-19-15; 8:45 am]
BILLING CODE 3510-DS-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesEffective Date: May 20, 2015.
ContactYasmin Nair or Ilissa Shefferman, AD/ CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482- 3813 and (202) 482-4684, respectively.
FR Citation80 FR 28968 

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