82 FR 36741 - Certain Steel Nails From Malaysia: Preliminary Results and Partial Rescission of Antidumping Duty Administrative Review; 2014-2016

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 150 (August 7, 2017)

The Department of Commerce (the Department) is conducting an administrative review of the antidumping duty order on certain steel nails from Malaysia. The period of review covers December 29, 2014, through June 30, 2016. The review covers three producers/exporters of the subject merchandise. We preliminarily determine that sales of subject merchandise by the collapsed entities Inmax and Region, both of which were selected for individual examination, were made at less than normal value during the period of review. We are rescinding the review with respect to 16 companies for which the request for review was timely withdrawn. Interested parties are invited to comment on these preliminary results.

[Federal Register Volume 82, Number 150 (Monday, August 7, 2017)]
[Notices]
[Pages 36741-36744]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-16496]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-557-816]


Certain Steel Nails From Malaysia: Preliminary Results and 
Partial Rescission of Antidumping Duty Administrative Review; 2014-2016

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

SUMMARY: The Department of Commerce (the Department) is conducting an 
administrative review of the antidumping duty order on certain steel 
nails from Malaysia. The period of review covers December 29, 2014, 
through June 30, 2016. The review covers three producers/exporters of 
the subject merchandise. We preliminarily determine that sales of 
subject merchandise by the collapsed entities Inmax and Region, both of 
which were selected for individual examination, were made at less than 
normal value during the period of review. We are rescinding the review 
with respect to 16 companies for which the request for review was 
timely withdrawn. Interested parties are invited to comment on these 
preliminary results.

DATES: Applicable August 7, 2017.

FOR FURTHER INFORMATION CONTACT: Edythe Artman or Madeline Heeren, AD/
CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-3931 or (202) 
482-9179, respectively.

SUPPLEMENTARY INFORMATION:

Background

    These preliminary results of review are made in accordance with 
section 751 of the Tariff Act of 1930, as amended (the Act). On 
September 12, 2016, the Department published the notice of initiation 
for the administrative review.\1\ For a complete description of the 
events that followed the initiation of the review, see the Preliminary 
Decision Memorandum.\2\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary 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 https://access.trade.gov and 
to all parties in the Central Records Unit, located in Room B8094 of 
the main Department of Commerce building. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and the electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 81 FR 62720 (September 12, 2016) (Initiation 
Notice).
    \2\ See Memorandum, ``Decision Memorandum for Preliminary 
Results of Antidumping Duty Administrative Review and Intent to 
Rescind in Part: Certain Steel Nails from Malaysia; 2014-2016'', 
dated concurrently with this notice.
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Scope of the Order

    The products covered by the scope of the order are certain steel 
nails from Malaysia. For a complete description of the scope, see 
Appendix I of this notice.

Partial Rescission of Administrative Review

    In the Initiation Notice, we initiated a review of 19 companies. 
However, the petitioner, Mid Continent Steel & Wire, Inc., withdrew its 
request for review of 16 of the companies on December 12, 2016. No 
other parties had requested a review of these companies. Thus, in 
response to the petitioner's timely filed withdrawal request and 
pursuant to 19

[[Page 36742]]

CFR 351.213(d)(1), we are rescinding this administrative review for the 
following companies: Apex Container Line (M) Sdn Bhd; Astrotech Steels 
Private Ltd.; C.H. Robinson Freight Services Ltd.; Caribbean 
International Co. Ltd.; Chia Pao Metal Co. Ltd.; Expeditors (Malaysia) 
Sdn Bhd; Flyjac Logistics Private Ltd.; Hanjin Logistics India Private 
Ltd.; Hecny Transportation (M) Sdn Bhd; Honour Lane Logistics Sdn Bhd; 
Jinhai Hardware Co. Ltd.; Nora Freight Services Sdn Bhd; Orient 
Containers Sdn Bhd; Orient Star Transport Sdn Bhd; Sino Connections 
Logistics Co. Ltd.; and Swift Freight Private Ltd.

Methodology

    The Department is conducting this review in accordance with section 
751(a)(1)(B) of the Act. For a full description of the methodology 
underlying the preliminary results, see the Preliminary Decision 
Memorandum.

Preliminary Results of Review

    We preliminarily determine that, for the period December 29, 2014, 
through June 30, 2016, the following weighted-average dumping margins 
exist: \3\ \4\
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    \3\ The Department has preliminarily determined to collapse, and 
treat as a single entity, affiliates Inmax Sdn. Bhd. and Inmax 
Industries Sdn. Bhd. (collectively, Inmax) and Region International 
Co. Ltd. and Region System Sdn. Bhd. (collectively Region). For our 
analysis of the collapsing criteria, see the company-specific 
analysis memorandum, dated concurrently with this notice.
    \4\ As we did not have a publicly-ranged total U.S. sales value 
for Region for the period December 29, 2014, through June 30, 2016, 
to calculate a weighted-average dumping margin for the non-examined 
company, Tag Fasteners, the rate applied to this company is a simple 
average of the weighted-average dumping margins calculated for Inmax 
and Region.

------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                    Producer or exporter                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Inmax Sdn. Bhd. and Inmax Industries Sdn. Bhd...............        1.03
Region International Co. Ltd. and Region System Sdn. Bhd....        2.56
Tag Fasteners Sdn. Bhd......................................        1.80
------------------------------------------------------------------------

Disclosure and Public Comment

    The Department will disclose to parties to the proceeding any 
calculations performed in connection with these preliminary results of 
review within five days after the date of publication of this 
notice.\5\ Interested parties may submit case briefs not later than 30 
days after the date of publication of this notice in the Federal 
Register.\6\ Rebuttal briefs, limited to issues raised in the case 
briefs, may be filed not later than five days after the date for filing 
case briefs.\7\ Parties who submit case or rebuttal briefs in this 
proceeding are encouraged to submit with each argument: (1) A statement 
of the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.\8\ Case and rebuttal briefs should be filed using 
ACCESS.\9\
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    \5\ See 19 CFR 351.224(b).
    \6\ See 19 CFR 351.309(c)(1)(ii).
    \7\ See 19 CFR 351.309(d)(1).
    \8\ See 19 CFR 351.309(c)(2) and (d)(2).
    \9\ See 19 CFR 351.303.
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    Interested parties who wish to request a hearing must submit a 
written request to the Assistant Secretary for Enforcement and 
Compliance within 30 days of the date of publication of this 
notice.\10\ Requests should contain: (1) The party's name, address and 
telephone number; (2) the number of participants; and (3) a list of 
issues parties intend to discuss. Issues raised in the hearing will be 
limited to those raised in the respective case and rebuttal briefs. If 
a request for a hearing is made, the Department intends to hold the 
hearing at the U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230, at a date and time to be determined.\11\ 
Parties should confirm by telephone the date, time, and location of the 
hearing two days before the scheduled date.
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    \10\ See 19 CFR 351.310(c).
    \11\ See 19 CFR 351.310(d).
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    Unless extended, the Department intends to issue the final results 
of this administrative review, which will include the results of our 
analysis of all issues raised in the case briefs, within 120 days of 
publication of these preliminary results in the Federal Register, 
pursuant to section 751(a)(3)(A) of the Act.

Assessment Rates

    Upon issuance of the final results, the Department will determine, 
and U.S. Customs and Border Protection (CBP) shall assess, antidumping 
duties on all appropriate entries covered by this review.\12\ If a 
respondent's weighted-average dumping margin is not zero or de minimis 
in the final results of this review and the respondent reported 
reliable entered values, we will calculate importer-specific ad valorem 
assessment rates for the merchandise based on the ratio of the total 
amount of dumping calculated for the examined sales made during the 
period of review to each importer to the total entered value of those 
same sales in accordance with 19 CFR 351.212(b)(1). If the respondent 
has not reported reliable entered values, we will calculate a per-unit 
assessment rate for each importer by dividing the total amount of 
dumping for the examined sales made during the period of review to that 
importer by the total sales quantity associated with those 
transactions. Where an importer-specific ad valorem assessment rate is 
zero or de minimis, we will instruct CBP to liquidate the appropriate 
entries without regard to antidumping duties in accordance with 19 CFR 
351.106(c)(2). If the respondent's weighted-average dumping margin is 
zero or de minimis in the final results of review, we will instruct CBP 
not to assess duties on any of its entries in accordance with the Final 
Modification for Reviews, i.e., ``{w{time} here the weighted-average 
margin of dumping for the exporter is determined to be zero or de 
minimis, no antidumping duties will be assessed.'' \13\
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    \12\ See 19 CFR 351.212(b)(1).
    \13\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Proceedings: Final Modification, 77 FR 8101, 8102 (February 14, 
2012) (Final Modification for Reviews).
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    Regarding entries of subject merchandise during the period of 
review that were produced by Inmax and Region and for which they did 
not know that the merchandise was destined for the United States, we 
will instruct CBP to liquidate un-reviewed entries at the all-others 
rate of 2.66 percent, as established in the less-than-fair-value 
investigation of the order, if there is no rate for the intermediate 
company(ies) involved in the transaction.\14\ For a full discussion of 
this matter, see Assessment Policy Notice.\15\
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    \14\ See Certain Steel Nails from the Republic of Korea, 
Malaysia, the Sultanate of Oman, Taiwan, and the Socialist Republic 
of Vietnam: Antidumping Duty Orders, 80 FR 39994 (July 13, 2015).
    \15\ See Antidumping and Countervailing Duty Proceedings: 
Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003) 
(Assessment Policy Notice).
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    For the firms covered by this review, we intend to issue 
liquidation instructions to CBP 15 days after publication of the final 
results of this review. For the non-reviewed firms for which we are 
rescinding this administrative review, the Department intends to 
instruct CBP 15 days after publication of these preliminary results of 
review to assess antidumping duties at rates equal to the rates of cash 
deposits for estimated antidumping duties required at the time of 
entry, or withdrawn from warehouse, for consumption, during the period 
December 29, 2014, through June 30,

[[Page 36743]]

2016, in accordance with 19 CFR 351.212(c)(2).

Cash Deposit Requirements

    The following cash deposit requirements will be effective upon 
publication of the final results of this administrative review for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) The cash deposit rate for Inmax and Region 
and other companies listed above will be equal to the weighted-average 
dumping margin established in the final results of this administrative 
review; (2) for previously reviewed or investigated companies not 
listed above, the cash deposit rate will continue to be the company-
specific rate published for the most recently completed segment of this 
proceeding in which they were reviewed; (3) if the exporter is not a 
firm covered in this review, a prior review, or in the investigation 
but the producer is, the cash deposit rate will be the rate established 
for the most recently completed segment of this proceeding for the 
producer of the merchandise; and (4) the cash deposit rate for all 
other producers or exporters will continue to be the all-others rate of 
2.66 percent. These cash deposit requirements, when imposed, shall 
remain in effect until further notice.

Notification to Importers

    This notice also serves as a reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Department's presumption that 
reimbursement of antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    We are issuing and publishing this notice in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(4).

    Dated: July 28, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Order

    The merchandise covered by the antidumping duty order is certain 
steel nails having a nominal shaft length not exceeding 12 
inches.\16\ 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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    \16\ 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 order 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 order 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 order 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 order 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 order 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 order are thumb tacks, 
which are currently classified under HTSUS subheading 7317.00.10.00.
    Certain steel nails subject to this order 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 order also may be 
classified under HTSUS subheadings 7907.00.60.00, 7806.00.80.00, 
7318.29.00.00, 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 order 
is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

1. Background
2. Scope of the Order
3. Partial Rescission of Administrative Review
4. Company Not Selected for Individual Examination
5. Collapsing of Affiliated Companies
6. Date of Sale
7. Comparisons to Normal Value
    A. Determination of Comparison Method

[[Page 36744]]

    B. Results of the Differential Pricing Analysis
8. Product Comparisons
9. Export Price
10. Normal Value
    A. Home Market Viability as Comparison Market
    B. Level of Trade
    C. Sales to Affiliates
    D. Cost of Production
    1. Calculation of Cost of Production
    2. Test of Comparison Market Sales Prices
    3. Results of the Cost of Production Test
    E. Calculation of Normal Value Based on Comparison Market Prices
    F. Price-to-Constructed Value Comparison
11. Currency Conversion
12. Recommendation

[FR Doc. 2017-16496 Filed 8-4-17; 8:45 am]
 BILLING CODE 3510-DS-P