80 FR 28969 - Certain Steel Nails From Malaysia; Final Determination of Sales at Less Than Fair Value

DEPARTMENT OF COMMERCE
International Trade Administration

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

The Department of Commerce (the Department) determines that imports of certain steel nails from Malaysia are being sold in the United States at less than fair value (LTFV), as provided in section 735 of the Tariff Act of 1930, as amended (the Act). The final weighted-average dumping margins of sales at LTFV are listed below in the section entitled ``Final Determination Margins.''

[Federal Register Volume 80, Number 97 (Wednesday, May 20, 2015)]
[Notices]
[Pages 28969-28971]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-12250]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-557-816]


Certain Steel Nails From Malaysia; Final Determination of Sales 
at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that 
imports of certain steel nails from Malaysia are being sold in the 
United States at less than fair value (LTFV), as provided in section 
735 of the Tariff Act of 1930, as amended (the Act). The final 
weighted-average dumping margins of sales at LTFV are listed below in 
the section entitled ``Final Determination Margins.''

DATES:  Effective Date: May 20, 2015.

FOR FURTHER INFORMATION CONTACT: Edythe Artman or Steve Bezirganian, 
AD/CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
3931 or (202) 482-1131, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On December 29, 2014, the Department published in the Federal 
Register the preliminary determination in the LTFV investigation of 
certain steel nails from Malaysia.\1\ In the Preliminary Determination, 
we postponed the final determination until no later than 135 days after 
the publication of the Preliminary Determination in accordance with 
section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii) and 
invited parties to comment on our Preliminary Determination.
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    \1\ See Certain Steel Nails From Malaysia: Preliminary 
Determination of Sales at Less Than Fair Value and Postponement of 
Final Determination and Extension of Provisional Measures, 79 FR 
78055 (December 29, 2014) (Preliminary Determination).
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    The following events occurred since December 17, 2014, the day on 
which the Preliminary Determination was signed. On December 29, 2014, 
and January 12, 2015, Region System Sdn. Bhd. and Region International 
Co., Ltd. (collectively Region), one of the mandatory respondents, 
submitted responses to additional Department requests for information. 
On December 31, 2014, January 2, 2015, and January

[[Page 28970]]

8, 2015, Inmax Sdn. Bhd. (Inmax), the other mandatory respondent, 
submitted responses to additional Department requests for information. 
On January 9, 2015, Petitioner, Mid Continent Steel & Wire, Inc., 
submitted factual information in rebuttal to information submitted by 
Inmax in its aforementioned January 2, 2015 response.
    Between January 26, 2015, and February 13, 2015, the Department 
conducted sales and cost verifications of both respondents. See the 
``Verification,'' section below. From March 26, 2015, through April 1, 
2015, Petitioner, Inmax, and Region submitted case and/or rebuttal 
briefs. No public hearing was requested from any party.

Period of Investigation

    The period of investigation is April 1, 2013, through March 31, 
2014.

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 of the Less-Than-Fair-Value 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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Verification

    As provided in section 782(i) of the Act, in January 2015 through 
February 2015, we conducted verifications of the sales and cost 
information submitted by Inmax and Region for use in our final 
determination. We used standard verification procedures including an 
examination of relevant accounting and production records, and original 
source documents provided by Inmax and its affiliate, Inmax Industries 
Sdn. Bhd., and by Region.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are addressed in the Issues and Decision Memorandum. 
A list of the issues raised is attached to this notice as Appendix II. 
The Issues and 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 http://access.trade.gov; the 
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. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.

Changes Since the Preliminary Determination

    Following analysis of the comments submitted by interested parties, 
we have assigned a margin to Inmax based on adverse facts available 
(AFA). For Region, we have made the following changes: Revised energy 
and labor costs; revised common variable overhead; modified the 
transactions regarded adjustment related to heat treatment service 
costs; revised U.S. packing expenses for certain packing materials; 
corrected a billing adjustment for one home market sale; corrected the 
inland freight expense for several home market sales; corrected product 
coding for several home market and U.S. sales; and corrected the 
shipment date and associated imputed credit expense calculations for 
several U.S. sales. For more details, see the accompanying Issue and 
Decision Memorandum and the company-specific analysis memoranda for the 
final determination.

Use of Facts Otherwise Available and AFA

    In the Preliminary Determination, we stated that because the 
mandatory respondent Tag Fasteners Sdn. Bhd. (Tag) failed to respond to 
the Department's questionnaire, we preliminarily determined to apply 
facts otherwise available with an adverse inference to this respondent 
pursuant to sections 776(a) and (b) of the Act. Pursuant to section 776 
of the Act, the Department continues to find it appropriate to base 
Tag's rate on AFA. In addition, pursuant to sections 776(a) and (b) of 
the Act, the Department determines it is appropriate to apply facts 
otherwise available with an adverse inference to Inmax. In applying 
AFA, we are assigning Tag and Inmax the highest margin identified in 
the petition, 39.35 percent.\3\
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    \3\ See the Issues and Decision Memorandum.
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Final Determination Margins

    The Department determines that the following weighted-average 
dumping margins exist for the period April 1, 2013, through March 31, 
2014:

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Exporter or producer                        dumping
                                                                margin
                                                               (percent)
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Inmax Sdn. Bhd..............................................      39.35%
Region International Co. Ltd. and Region System Sdn. Bhd....        2.61
Tag Fasteners Sdn. Bhd......................................       39.35
All Others..................................................        2.61
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All Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated ``All 
Others'' rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated, excluding any zero or de 
minimis margins, and any margins determined entirely under section 776 
of the Act. The weighted-average margin for exporters and producers 
individually investigated that meets these criteria is that of Region. 
Therefore, the All-Others rate is the rate calculated for Region, as 
indicated in the ``Final Determination Margins'' section above.

Disclosure

    We will disclose to parties in this proceeding the calculations 
performed for this final determination within five days of the date of 
public announcement of our final determination, in accordance with 19 
CFR 351.224(b).

Continuation of Suspension of Liquidation

    Pursuant to sections 735(c)(1)(B) and (C) of the Act, the 
Department will instruct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of all entries of certain steel nails from Malaysia 
which were entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of the final determination. We will 
instruct CBP to require a cash deposit equal to the weighted-average 
amount by which normal value exceeds U.S. price, as follows: (1) The 
rates for Inmax, Region, and Tag will be the rates we determined in 
this final determination; (2) if the exporter is not a firm identified 
in this investigation but the producer is, the rate will be the

[[Page 28971]]

rate established for the producer of the subject merchandise; (3) the 
rate for all other producers or exporters will be 2.61 percent. These 
suspension of liquidation instructions will remain in effect until 
further notice.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of our final determination. 
As our final determination is affirmative, in accordance with section 
735(b)(3) of the Act, the ITC will determine within 45 days whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports or sales (or the 
likelihood of sales) for importation of the subject merchandise. If the 
ITC determines that such injury exists, the Department will issue an 
antidumping duty order directing CBP to assess, upon further 
instruction by the Department, antidumping duties on all imports of the 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Return or Destruction of Proprietary Information

    This notice will serve as a reminder to parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of the destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.

Notification to Interested Parties

    We are issuing and publishing this determination and notice in 
accordance with sections 735(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 Topics Discussed in the Issues and Decision 
Memorandum

    Issues Pertaining to Inmax
    Comment 1: Application of Adverse Facts Available for Inmax
    Issues Pertaining to Region
    Comment 2: Region System Energy and Labor Costs
    Comment 3: Region System Common Variable Overhead
    Comment 4: Region System Heat Treatment Service Costs
    Comment 5: Region System Financial Expense Rate
    Comment 6: Whether to Revise Region System G&A Expenses to 
include Region Products Marketing G&A Expenses
    Comment 7: Region System G&A and Interest Expense Calculations
    Comment 8: U.S. Warranty Expenses
    Comment 9: Packing Expenses

[FR Doc. 2015-12250 Filed 5-19-15; 8:45 am]
BILLING CODE 3510-DS-P