[Federal Register: October 8, 2008 (Volume 73, Number 196)]
[Notices]
[Page 58931-58941]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08oc08-40]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
(A-570-932)
Certain Steel Threaded Rod from the People's Republic of China:
Preliminary Determination of Sales at Less Than Fair Value
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: October 8, 2008.
SUMMARY: We preliminarily determine that certain steel threaded rod
(``CSTR'') from the People's Republic of China (``PRC'') is being, or
is likely to be, sold in the United States at less than fair value
(``LTFV''), as provided in section 733 of the Tariff Act of 1930, as
amended (``the Act''). The estimated margins of sales at LTFV are shown
in the ``Preliminary Determination'' section of this notice. Interested
parties are invited to comment on this preliminary determination.
FOR FURTHER INFORMATION CONTACT: Bobby Wong or Toni Dach, AD/CVD
Operations, Office 9, Import Administration, International Trade
[[Page 58932]]
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue, NW, Washington, DC, 20230; telephone: (202) 482-
0409 or 482-1655, respectively.
SUPPLEMENTARY INFORMATION:
Initiation
On March 5, 2008, the Department of Commerce (``Department'')
received a petition on imports of steel threaded rod from the PRC,
filed in proper form by Vulcan Threaded Products, Inc.
(``Petitioner''). See Petition for the Imposition of Antidumping Duties
on Steel Threaded Rod from the People's Republic of China (March 5,
2008) (``petition''). This investigation was initiated on April 1,
2008. See Steel Threaded Rod from the People's Republic of China:
Initiation of Antidumping Duty Investigation, 73 FR 17318 (April 1,
2008) (``Initiation Notice'').
On March 12, 2008, the United States International Trade Commission
(``ITC'') issued its affirmative preliminary determination that there
is a reasonable indication that an industry in the United States is
materially injured by reason of imports from China of certain steel
threaded rod. The ITC's determination was published in the Federal
Register on May 2, 2008. See Certain Steel Threaded Rod From China, 73
FR 24312 (May 2, 2008); see also Certain Steel Threaded Rod From China:
Investigation No. 731-TA-1145 (Preliminary), USITC Publication 3996
(April 2008).
Scope Comments
In accordance with the preamble to our regulations, we set aside a
period of time for parties to raise issues regarding product coverage
and encouraged all parties to submit comments within 20 calendar days
of publication of the Initiation Notice. See Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997).
See also Initiation Notice, 73 FR at 17318. We received no comments
from interested parties on issues related to the scope.
Respondent Selection
In the Initiation Notice, the Department stated that it intended to
select respondents based on quantity and value (``Q&V'')
questionnaires. See Initiation Notice, 73 FR at 17321. On April 4,
2008, the Department requested Q&V information from 417 companies that
Vulcan Threaded Products Inc. (``Petitioner''), identified as potential
exporters or producers of steel threaded rod from the PRC.
Additionally, the Department also posted the questionnaire requesting
Q&V information from potential producers/exporters of subject steel
threaded rod on its website at www.trade.gov/ia. For a complete list of
all parties from which the Department requested Q&V information, see
petition at exhibit 6. The Department received timely Q&V responses
from nineteen exporters that shipped subject merchandise to the United
States during the period of investigation (``POI'').
On June 9, 2008, the Department selected Jiaxing Brother Fastener
Co., Ltd. (``Brother Fastener'') and Ningbo Yinzhou Foreign Trade Co.,
Ltd. (``Ningbo Yinzhou'') as mandatory respondents in this
investigation. See June 9, 2008, memorandum to the File, from Toni
Dach, International Trade Analyst, and Bobby Wong, Senior International
Trade Analyst, through James C. Doyle, Director, and Scot T. Fullerton,
Program Manager, to Stephen J. Claeys, Deputy Assistant Secretary,
regarding Selection of Respondents for the Antidumping Investigation of
Steel Threaded Rod from the People's Republic of China (``Respondent
Selection Memo''). As described in the Affiliations section below,
after reviewing the questionnaire responses of Brother Fastener, we
have determined to treat its Hong Kong based affiliates, RMB Fasteners
Ltd. (``RMB'') and IFI & Morgan Ltd. (``IFI''), as a single entity that
is the appropriate respondent.
Separate Rates Applications
Between April 24, 2008, and June 3, 2008, we received timely
separate-rate applications (``SRA'') from eleven companies: Shanghai
Recky International Trading Co., Ltd. (``Shanghai Recky''); Suntec
Industries Co., Ltd. (``Suntec Industries''); Hangzhou Grand Imp. &
Exp. Co., Ltd. (``Hangzhou Grand''); Shanghai Prime Machinery Co. Ltd.
(``Shanghai Prime''); Jianxing Xinyue Standard Part Co., Ltd.
(``Jianxing Xinyue''); Certified Products International Inc.
(``CPII''); Jiashan Zhongsheng Metal Products Co., Ltd. (``Jiashan
Zhongsheng''); Haiyan Dayu Fasteners Co., Ltd. (``Haiyan Dayu'');
Zhejiang New Oriental Fastener Co., Ltd. (``New Oriental''); Brother
Fastener; and Ningbo Yinzhou.
Product Characteristics & Questionnaires
In the Initiation Notice, the Department asked all parties in this
investigation for comments on the appropriate product characteristics
for defining individual products. On April 15, 2008, we received
comments from Brother Fastener, with recommended product
characteristics.
On June 10, 2008, the Department issued to Brother Fastener and
Ningbo Yinzhou, sections A, C, D, and E of the Department's standard
antidumping duty questionnaire,\1\ which included product
characteristics used in the designation of control numbers
(``CONNUMs'') and assigned to the merchandise under consideration.
Between July 1, 2008, and July 31, 2008, the Department received
section A, C, and D questionnaire responses from Brother Fastener and
Ningbo Yinzhou. Brother Fastener and Ningbo Yinzhou were not required
by the Department to submit a Section E response, because the
Department determined that neither company had further manufacturing in
the United States. See Brother Fastener Section A Response, dated July
11, 2008, at page A-30, and Ningbo Yinzhou Section A Response, dated
July 1, 2008, at page 9. The Petitioner submitted deficiency comments
on the Section C and D questionnaire responses of both respondents on
August 22, 2008. From August 1, 2008, through September 3, 2008, the
Department issued supplemental questionnaires to Brother Fastener and
Ningbo Yinzhou and received responses between August 8, 2008, and
September 8, 2008.
---------------------------------------------------------------------------
\1\ Section A of the questionnaire requests general information
concerning a company's corporate structure and business practices,
the merchandise under investigation that it sells, and the manner in
which it sells that merchandise in all of its markets. Section C
requests a complete listing of U.S. sales. Section D requests
information on factors of production, and Section E requests
information on further manufacturing.
---------------------------------------------------------------------------
Surrogate Country
On July 29, 2008, the Department determined that India, Indonesia,
the Philippines, Colombia, and Thailand are countries comparable to the
PRC in terms of economic development. See July 29, 2008, Letter to All
Interested Parties, from Scot T. Fullerton, Program Manager, Office 9,
AD/CVD Operations, regarding ``Antidumping Duty Investigation of Steel
Threaded Rod from the People's Republic of China,'' (``Surrogate
Country Letter''), attaching July 23, 2008, Memorandum to Scot T.
Fullerton, Program Manager, Office 9, AD/CVD Operations, from Carole
Showers, Acting Director, Office of Policy, regarding ``Antidumping
Duty Investigation of Steel Threaded Rod from the People's Republic of
China (PRC): Request for List of Surrogate Countries.''
On July 29, 2008, the Department requested comments on surrogate
country selection from the interested parties in this investigation. On
August
[[Page 58933]]
13, 2008, Petitioner submitted surrogate country comments. No other
interested parties commented on the selection of a surrogate country.
For a detailed discussion of the selection of the surrogate country,
see ``Surrogate Country'' section below.
Surrogate Value Comments
On August 21, 2008, the Department extended the deadline for
interested parties to submit surrogate information with which to value
the factors of production in this proceeding. On August 25, 2008,
Petitioner and Brother Fastener submitted surrogate value comments. On
September 4, 2008, Brother Fastener submitted clarifying surrogate
value comments.
Postponement of Preliminary Determination
On July 15, 2008, Petitioner requested, pursuant to 19 CFR
351.205(b)(2) and (e), for a 50-day postponement of the preliminary
determination. The Department published a postponement of the
preliminary determination on July 29, 2008. See Postponement of
Preliminary Determination of Antidumping Duty Investigation: Steel
Threaded Rod from the People's Republic of China, 73 FR 43913 (July 29,
2008).
Period of Investigation
The period of investigation (``POI'') is July 1, 2007, through
December 31, 2007. This period corresponds to the two most recent
fiscal quarters prior to the month of the filing of the petition, March
2008. See 19 CFR 351.204(b)(1).
Scope of Investigation
The merchandise covered by this investigation is steel threaded
rod. Steel threaded rod is certain threaded rod, bar, or studs, of
carbon quality steel, having a solid, circular cross section, of any
diameter, in any straight length, that have been forged, turned, cold
drawn, cold rolled, machine straightened, or otherwise cold finished,
and into which threaded grooves have been applied. In addition, the
steel threaded rod, bar, or studs subject to this investigation are non
headed and threaded along greater than 25 percent of their total
length. A variety of finishes or coatings, such as plain oil finish as
a temporary rust protectant, zinc coating (i.e., galvanized, whether by
electroplating or hot dipping), paint, and other similar finishes and
coatings, may be applied to the merchandise.
Included in the scope of this investigation are steel threaded rod,
bar, or studs, in which: (1) iron predominates, by weight, over each of
the other contained elements; (2) the carbon content is 2 percent or
less, by weight; and (3) none of the elements listed below exceeds the
quantity, by weight, respectively indicated:
1.80 percent of manganese, or
1.50 percent of silicon, or
1.00 percent of copper, or
0.50 percent of aluminum, or
1.25 percent of chromium, or
0.30 percent of cobalt, or
0.40 percent of lead, or
1.25 percent of nickel, or
0.30 percent of tungsten, or
0.012 percent of boron, or
0.10 percent of molybdenum, or
0.10 percent of niobium, or
0.41 percent of titanium, or
0.15 percent of vanadium, or
0.15 percent of zirconium.
Steel threaded rod is currently classifiable under subheading
7318.15.5060 of the Harmonized Tariff Schedule of the United States
(``HTSUS''). Although the HTSUS subheading is provided for convenience
and customs purposes, the written description of the merchandise is
dispositive.
Excluded from the scope of the investigation are: (a) threaded rod,
bar, or studs which are threaded only on one or both ends and the
threading covers 25 percent or less of the total length; and (b)
threaded rod, bar, or studs made to American Society for Testing and
Materials (``ASTM'') A193 Grade B7, ASTM A193 Grade B7M, ASTM A193
Grade B16, or ASTM A320 Grade L7.
Non-market Economy Country
For purposes of initiation, Petitioner submitted LTFV analyses for
the PRC as a non-market economy (``NME''). See Initiation Notice, 73 FR
at 17318, 17320. The Department considers the PRC to be a NME country.
See, e.g., Preliminary Determination of Sales at Less Than Fair Value
and Postponement of Final Determination: Coated Free Sheet Paper from
the People's Republic of China, 72 FR 30758, 30760 (June 4, 2007),
unchanged in Final Determination of Sales at Less Than Fair Value:
Coated Free Sheet Paper from the People's Republic of China, 72 FR
60632 (October 25, 2007). In accordance with section 771(18)(C)(i) of
the Act, any determination that a foreign country is an NME country
shall remain in effect until revoked by the administering authority. No
party has challenged the designation of the PRC as an NME country in
this investigation. Therefore, we continue to treat the PRC as an NME
country for purposes of this preliminary determination.
Surrogate Country
When the Department is investigating imports from an NME, section
773(c)(1) of the Act directs it to base normal value, in most
circumstances, on the NME producer's factors of production (``FOP'')
valued in a surrogate market-economy country or countries considered to
be appropriate by the Department. In accordance with section 773(c)(4)
of the Act, in valuing the factors of production, the Department shall
utilize, to the extent possible, the prices or costs of factors of
production in one or more market-economy countries that are at a level
of economic development comparable to that of the NME country and are
significant producers of comparable merchandise. The sources of the
surrogate values we have used in this investigation are discussed under
the ``Normal Value'' section below.
The Department's practice with respect to determining economic
comparability is explained in Policy Bulletin 04.1,\2\ which states
that ``OP {Office of Policy{time} determines per capita economic
comparability on the basis of per capita gross national income, as
reported in the most current annual issue of the World Development
Report (The World Bank).'' The Department considers the five countries
identified in its Surrogate Country List as ``equally comparable in
terms of economic development.'' See Policy Bulletin 04.1 at 2. Thus,
we find that India, Indonesia, the Philippines, Colombia, and Thailand
are all at an economic level of development equally comparable to that
of the PRC.
---------------------------------------------------------------------------
\2\ See Policy Bulletin 04.1: Non-Market Economy Surrogate
Country Selection Process, (March 1, 2004), (``Policy Bulletin
04.1'') at Attachment II of the Department's Surrogate Country
Letter, also available at http://ia.ita.doc.gov/policy/bull04-
1.html.
---------------------------------------------------------------------------
Second, Policy Bulletin 04.1 provides some guidance on identifying
comparable merchandise and selecting a producer of comparable
merchandise. As noted in the Policy Bulletin, ``comparable
merchandise'' is not defined in the statute or the regulations, since
it is best determined on a case-by-case basis. See Policy Bulletin 04.1
at 2. As further noted in Policy Bulletin 04.1, in all cases, if
identical merchandise is produced, the country qualifies as a producer
of comparable merchandise. Id. Based on the data provided by
Petitioner, we find that India is a producer of identical merchandise,
as Petitioner has specifically identified multiple Indian producers of
CSTR. See Petition at 27 28 and Exhibit 14. Additionally, Petitioner
submitted
[[Page 58934]]
information for Indian companies that produce comparable merchandise
and noted that the other potential surrogate countries such as Egypt,
Indonesia, the Philippines, and Sri Lanka are not known manufacturers
of CSTR. Id. Because the Department was unable to find production data,
we are relying on export data as a substitute for overall production
data in this case. The Department first attempted to obtain export data
for CSTR from the World Trade Atlas (``WTA'') and was unable to find
specific data for any of the countries on the Surrogate Country List.
Thus, the Department obtained worldwide export data for comparable
steel threaded products.
Specifically, we reviewed export data from the WTA for the HTS
heading 7318.15, ``Other Screw and Bolt, Threaded,'' for 2007. The
Department found that, of the countries provided in the Surrogate
Country List, all five countries were exporters of comparable
merchandise: threaded bolt and screw products. As Policy Bulletin 04.1
notes, it is normally sufficient to identify comparable merchandise on
the basis of physical differences in the merchandise. See Policy
Bulletin 04.1 at 3. In the instant case, threaded bolt and screw
products share similar physical characteristics with steel threaded rod
(e.g., they are all made by combining iron, energy, and some further
processing). Thus, all countries on the Surrogate Country List are
considered as appropriate surrogates because each exported comparable
merchandise.
The Policy Bulletin 04.1 also provides some guidance in identifying
significant producers of comparable merchandise and selecting a
producer of comparable merchandise. The Policy Bulletin notes that any
determination of what constitutes ``significant production'' should be
made consistent with the characteristics of world production of, and
trade in, comparable merchandise (subject to the availability of data
on these characteristics). See Policy Bulletin 04.1 at 3. Since these
characteristics are specific to the merchandise in question, the
standard for ``significant producer'' will be determined by the
Department on a case-by-case basis, and fixed standards for making this
determination have not been adopted. Id.
Further analysis of export data was required to determine whether
any of the countries which produce comparable merchandise are
significant producers of that comparable merchandise. The WTA data we
obtained show that, in 2007, worldwide exports for HTS 7318.15 from:
India were approximately 51,462,357 kg; Indonesia were approximately
12,423,935 kg; Philippines were approximately 9,943,892 kg; and Sri
Lanka were approximately 29,977 kg. Furthermore, the Department was
unable to obtain Egyptian export data through WTA. Given the data noted
above, although India, Indonesia, and the Philippines appear to be
significant producers of comparable merchandise, no party in this
proceeding requested that Indonesia or the Philippines be selected as
the surrogate country.
With respect to data considerations in selecting a surrogate
country, it is the Department's practice that, ``. . . if more than one
country has survived the selection process to this point, the country
with the best factors data is selected as the primary surrogate
country.'' See Policy Bulletin 04.1 at 4. Currently, the record
contains surrogate value information, including possible surrogate
financial statements, only from India.
Thus, the Department is preliminarily selecting India as the
surrogate country on the basis that: (1) it is at a similar level of
economic development to the PRC, pursuant to 773(c)(4) of the Act; (2)
it is a significant producer of comparable merchandise; and (3) we have
reliable data from India that we can use to value the factors of
production. Therefore, we have calculated normal value using Indian
prices, when available and appropriate, to value RMB and IFI\3\ and
Ningbo Yinzhou's factors of production. See Memorandum to the File
through Scot T. Fullerton, Program Manager, AD/CVD Operations, Office
9, from Bobby Wong, Senior International Trade Analyst, AD/CVD
Operations, Office 9, regarding ``Antidumping Duty Investigation of
Certain Steel Threaded Rod from the People's Republic of China:
Selection of Factor Values,'' dated October 1, 2008 (``Surrogate Value
Memorandum'').
---------------------------------------------------------------------------
\3\ See the ``Affiliations'' section, below, regarding the
Department's determination to treat RMB and IFI, Brother Fastener's
affiliated exporters, as the mandatory respondent.
---------------------------------------------------------------------------
In accordance with 19 CFR 351.301(c)(3)(i), for the final
determination in an antidumping investigation, interested parties may
submit publicly available information to value the factors of
production within 40 days after the date of publication of the
preliminary determination.\4\
---------------------------------------------------------------------------
\4\ In accordance with 19 CFR 351.301(c)(1), for the final
determination of this investigation, interested parties may submit
factual information to rebut, clarify, or correct factual
information submitted by an interested party less than ten days
before, on, or after, the applicable deadline for submission of such
factual information. However, the Department notes that 19 CFR
351.301(c)(1) permits new information only insofar as it rebuts,
clarifies, or corrects information recently placed on the record.
The Department generally will not accept the submission of
additional, previously absent-from-the-record alternative surrogate
value information pursuant to 19 CFR 351.301(c)(1). See Glycine from
the People's Republic of China: Final Results of Antidumping Duty
Administrative Review and Final Rescission, in Part, 72 FR 58809
(October 17, 2007) and accompanying Issues and Decision Memorandum
at Comment 2.
---------------------------------------------------------------------------
Affiliations
We preliminarily find that IFI and RMB (collectively, the ``RMB and
IFI Group'') and Brother Fastener to be affiliated parties within the
meaning of section 771(33) of the Act. See Brother Fastener's August
22, 2008, supplemental questionnaire response at exhibit 4.
Furthermore, while the information on the record regarding the
corporate structure of IFI and RMB is not complete, the Department has
sufficient information to preliminarily determine that a significant
potential for manipulation of price may exist. See 19 CFR 401(f)(2).
Therefore, we preliminarily find that they should be considered a
single entity for purposes of this investigation. See generally 19 CFR
401(f). However, due to the business proprietary nature of this
discussion, for further analysis and discussion see October 1, 2008,
Memorandum to James C. Doyle, Director, AD/CVD Operations, Office 9,
From Bobby Wong, Senior International Trade Analyst, Through Scot T.
Fullerton, Program Manager, Regarding: Antidumping Duty Investigation
of Certain Steel Threaded Rod from the People's Republic of China:
Affiliations of RMB Fasteners Ltd., IFI & Morgan Ltd., and Jiaxing
Brother Fastener Co., Ltd. Subsequent to the preliminary determination,
we intend to solicit additional information from the RMB and IFI Group,
regarding the corporate structure and affiliation for the final
determination.
For purposes of the preliminary determination, we find that Brother
Fastener, by itself, should not be considered the mandatory respondent
for purposes of calculating a dumping margin. We preliminarily
determine that although Brother Fastener had knowledge that its
relevant sales were destined for the United States, such sales were
made exclusively to its market economy-located affiliate, the RMB and
IFI Group (of which Brother Fastener is the affiliated manufacturing
entity), thereby disqualifying Brother Fastener's price for use as the
export price. It is the Department's practice, in determining the
appropriate respondent for whom to calculate a dumping margin, to take
into consideration such issues as (1) which party takes title to
[[Page 58935]]
the merchandise prior to the sale, (2) which party completes the sales
negotiations, and (3) which party sets all essential terms of sale.
See, e.g., Final Determination of Sales at Less Than Fair Value and
Final Partial Affirmative Determination of Critical Circumstances:
Diamond Sawblades and Parts Thereof from the People's Republic of
China, 71 FR 29303 (May 22, 2006) (``Sawblades LTFV Final'') and
accompanying Issues and Decision Memorandum at Comment 17. Accordingly,
we find that Brother Fastener is not the appropriate respondent.
Rather, we find that the RMB and IFI Group is the appropriate
respondent.
Separate Rates
Additionally, in the Initiation Notice, the Department notified
parties of the application process by which exporters and producers may
obtain separate-rate status in NME investigations. See Initiation
Notice, 73 FR at 17321. The process requires exporters and producers to
submit a separate-rate status application. The Department's practice is
discussed further in Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigations
involving Non-Market Economy Countries, (April 5, 2005), (``Policy
Bulletin 05.1'') available at http://ia.ita.doc.gov/policy/bull05-
1.pdf.\5\ However, the standard for eligibility for a separate rate
(which is whether a firm can demonstrate an absence of both de jure and
de facto governmental control over its export activities) has not
changed.
---------------------------------------------------------------------------
\5\ The Policy Bulletin 05.1, states: ``{w{time} hile continuing
the practice of assigning separate rates only to exporters, all
separate rates that the Department will now assign in its NME
investigations will be specific to those producers that supplied the
exporter during the period of investigation. Note, however, that one
rate is calculated for the exporter and all of the producers which
supplied subject merchandise to it during the period of
investigation. This practice applies both to mandatory respondents
receiving an individually calculated separate rate as well as the
pool of non-investigated firms receiving the weighted-average of the
individually calculated rates. This practice is referred to as the
application of ``combination rates'' because such rates apply to
specific combinations of exporters and one or more producers. The
cash-deposit rate assigned to an exporter will apply only to
merchandise both exported by the firm in question and produced by a
firm that supplied the exporter during the period of
investigation.'' See Policy Bulletin 05.1 at 6.
---------------------------------------------------------------------------
In proceedings involving NME countries, there is a rebuttable
presumption that all companies within the country are subject to
government control and thus should be assessed a single antidumping
duty rate. See Polyethylene Terephthalate Film, Sheet, and Strip from
the People's Republic of China: Final Determination of Sales at Less
Than Fair Value, 73 FR 55039, 55040 (Sept. 24, 2008) (PET Film LTFV
Final). It is the Department's policy to assign all exporters of
merchandise subject to investigation in an NME country this single rate
unless an exporter can demonstrate that it is sufficiently independent
so as to be entitled to a separate rate. See Final Determination of
Sales at Less Than Fair Value: Sparklers From the People's Republic of
China, 56 FR 20588 (May 6, 1991); see also Notice of Final
Determination of Sales at Less Than Fair Value: Silicon Carbide From
the People's Republic of China, 59 FR 22585 (May 2, 1994), and section
351.107(d) of the Department's regulations. Shanghai Recky, Suntec
Industries, Hangzhou Grand, Shanghai Prime, Jianxing Xinyue, CPII,
Jiashan Zhongsheng, Haiyan Dayu, and New Oriental, (hereinafter
referred to as ``Separate Rate Companies''), and Brother Fastener and
Ningbo Yinzhou, the mandatory respondents, have provided company-
specific information to demonstrate that they operate independently of
de jure and de facto government control, and therefore satisfy the
standards for the assignment of a separate rate.
We have considered whether each PRC company that submitted a
complete application is eligible for a separate rate. The Department's
separate-rate test is not concerned, in general, with macroeconomic/
border-type controls, e.g., export licenses, quotas, and minimum export
prices, particularly if these controls are imposed to prevent dumping.
See Notice of Final Determination of Sales at Less Than Fair Value:
Certain Preserved Mushrooms from the People's Republic of China, 63 FR
72255, 72256 (December 31, 1998). The test focuses, rather, on controls
over the investment, pricing, and output decision-making process at the
individual firm level. See Certain Cut-to-Length Carbon Steel Plate
from Ukraine: Final Determination of Sales at Less than Fair Value, 62
FR 61754, 61758 (November 19, 1997), and Tapered Roller Bearings and
Parts Thereof, Finished and Unfinished, from the People's Republic of
China: Final Results of Antidumping Duty Administrative Review, 62 FR
61276, 61279 (November 17, 1997).
To establish whether a firm is sufficiently independent from
government control of its export activities to be entitled to a
separate rate, the Department analyzes each entity exporting the
subject merchandise under a test arising from the Notice of Final
Determination of Sales at Less Than Fair Value: Sparklers from the
People's Republic of China, 56 FR 20588 (May 6, 1991) (``Sparklers''),
as further developed in Notice of Final Determination of Sales at Less
Than Fair Value: Silicon Carbide from the People's Republic of China,
59 FR 22585 (May 2, 1994) (``Silicon Carbide''). In accordance with the
separate-rates criteria, the Department assigns separate rates in NME
cases only if respondents can demonstrate the absence of both de jure
and de facto governmental control over export activities.
1. Absence of De Jure Control
The Department considers the following de jure criteria in
determining whether an individual company may be granted a separate
rate: (1) an absence of restrictive stipulations associated with an
individual exporter's business and export licenses; (2) any legislative
enactments decentralizing control of companies; and (3) other formal
measures by the government decentralizing control of companies. See
Sparklers, 56 FR at 20589.
The evidence provided by the Separate Rate Companies supports a
preliminary finding of de jure absence of governmental control based on
the following: 1) an absence of restrictive stipulations associated
with the individual exporter's business and export licenses; 2) the
applicable legislative enactments decentralizing control of the
companies; and 3) any other formal measures by the government
decentralizing control of companies. See, e.g., CPII's June 2, 2008,
Separate Rate Application (``SRA'') at 6 10; Hangzhou Grand's May 30,
2008, SRA at 5 9; Jiaxing Xinyue's June 3, 2008, SRA at 9 12; Haiyan
Dayu's June 3, 2008, SRA at 9 12; New Oriental's June 3, 2008, SRA at 9
12; Shanghai Recky's April 24, 2008, SRA at 6 11; Jiashan Zhongsheng's
June 3, 2008, SRA at 9 12; Suntec Industries' May 30, 2008, SRA at 7
10; Shanghai Prime's May 30, 2008, SRA at 7 10; Brother Fastener's June
2, 2008, SRA at 7 12; and Ningbo Yinzhou's June 3, 2008, SRA at 6 10.
2. Absence of De Facto Control
Typically the Department considers four factors in evaluating
whether each respondent is subject to de facto governmental control of
its export functions: (1) whether the export prices are set by or are
subject to the approval of a governmental agency; (2) whether the
respondent has authority to negotiate and sign contracts and other
agreements; (3) whether the respondent has autonomy from the government
in making decisions regarding the selection of management; and (4)
whether the respondent retains the
[[Page 58936]]
proceeds of its export sales and makes independent decisions regarding
disposition of profits or financing of losses. See Silicon Carbide, 59
FR at 22586-87; see also Notice of Final Determination of Sales at Less
Than Fair Value: Furfuryl Alcohol From the People's Republic of China,
60 FR 22544, 22545 (May 8, 1995). The Department has determined that an
analysis of de facto control is critical in determining whether
respondents are, in fact, subject to a degree of governmental control
which would preclude the Department from assigning separate rates.
We determine that, for the Separate Rate Companies, the evidence on
the record supports a preliminary finding of de facto absence of
governmental control based on record statements and supporting
documentation showing the following: 1) each exporter sets its own
export prices independent of the government and without the approval of
a government authority; 2) each exporter retains the proceeds from its
sales and makes independent decisions regarding disposition of profits
or financing of losses; 3) each exporter has the authority to negotiate
and sign contracts and other agreements; and 4) each exporter has
autonomy from the government regarding the selection of management.
See, e.g., CPII's June 2, 2008, Separate Rate Application (``SRA'') at
exhibit 10; Hangzhou Grand's May 30, 2008, SRA at exhibit 9; Jiaxing
Xinyue's June 3, 2008, SRA at exhibit 10; Haiyan Dayu's June 3, 2008,
SRA at exhibit 8; New Oriental's June 3, 2008, SRA at exhibit 12;
Shanghai Recky's April 24, 2008, SRA at Annex IV-10; Jiashan
Zhongsheng's June 3, 2008, SRA at exhibit 8; Suntec Industries' May 30,
2008, SRA at exhibit 9; Shanghai Prime's May 30, 2008, SRA at exhibit
10; Ningbo Yinzhou's June 3, 2008, SRA at exhibit 10; and Brother
Fastener's June 2, 2008, SRA at exhibit 9.
As the Department has preliminarily determined that the RMB and IFI
Group is properly considered the seller of the subject merchandise for
purposes of calculating a dumping margin, and because we have changed
the designation of the appropriate party to serve as the mandatory
respondent, we are preliminarily granting RMB and IFI Group a separate
rate. Although the information on the record demonstrating the RMB and
IFI Group's eligibility for a separate rate is not complete, as
information regarding separate rate status was submitted by its
producer, Brother Fastener, the Department finds that it cannot
preliminarily deny the RMB and IFI Group a separate rate because the
Department did not specifically ask for additional information to
determine the RMB and IFI Group's separate rate eligibility. Thus, we
intend to request additional information from the RMB and IFI Group
subsequent to the preliminary determination in order to determine the
RMB and IFI Group's separate rate status for the final determination.
Moreover, as mentioned above, because we have determined that Brother
Fastener had no sales of subject merchandise to unaffiliated purchasers
during the POI, we preliminarily determine that Brother Fastener is not
eligible to receive a separate rate.
With respect to Shanghai Prime, in its September 16, 2008, separate
rates supplemental questionnaire response, it explained that a State-
owned Assets Supervision and Administration Commission (``SASAC'')-run
company is a minority shareholder in the company. Furthermore, Shanghai
Prime stated that, the SASAC-run company is entitled to profit
distributions and attends and participates in appointing directors at
shareholder meetings. However, Shanghai Prime stated that the SASAC-run
company does impose limitations or provide instructions to the
management of Shanghai Prime. See Shanghai Prime's September 16, 2008,
Separate Rate Supplemental Questionnaire Response. While the Department
remains concerned about the potential for state control, we find that
the record of the instant investigation does not support the conclusion
that Shanghai Prime operates under government control. Therefore, the
Department is preliminarily granting Shanghai Prime a separate rate,
but will continue to gather information regarding government control
over Shanghai Prime for the purposes of the final determination.
The evidence placed on the record of this investigation by the
Separate Rate Companies demonstrates an absence of de jure and de facto
government control with respect to each of the exporter's exports of
the merchandise under investigation, in accordance with the criteria
identified in Sparklers and Silicon Carbide. As a result, we have
granted the Separate Rate Companies a weighted-average margin based on
the experience of mandatory respondents and excluding any de minimis or
zero rates or rates based on total AFA for the purposes of this
preliminary determination. In addition, for the reasons outlined above,
we have preliminarily granted the RMB and IFI Group separate rate
status and assigned the RMB and IFI Group a separate rate as a single
entity.
Application of Facts Otherwise Available and Total Adverse Facts
Available:
The PRC-Wide Entity - PRC-Wide Rate
The Department has data that indicate there were more exporters of
subject steel threaded rod from the PRC than those indicated in the
response to our request for Q&V information during the POI. See
Respondent Selection Memorandum. We issued our request for Q&V
information to 417 potential Chinese exporters of the subject
merchandise, in addition to posting the Q&V questionnaire on the
Department's website. See Q&V Delivery Memo. While information on the
record of this investigation indicates that there are numerous
producers/exporters of subject steel threaded rod in the PRC, we
received only nineteen timely filed Q&V responses. Although all
exporters were given an opportunity to provide Q&V information, not all
exporters provided a response to the Department's Q&V letter.
Therefore, the Department has preliminarily determined that there were
exporters/producers of the subject merchandise during the POI from the
PRC that did not respond to the Department's request for information.
We have treated these PRC producers/exporters as part of the PRC-wide
entity because they did not qualify for a separate rate. See, e.g.,
Preliminary Determination of Sales at Less Than Fair Value,
Postponement of Final Determination, and Preliminary Partial
Determination of Critical Circumstances: Diamond Sawblades and Parts
Thereof From the People's Republic of China, 70 FR 77121, 77128
(December 29, 2005), and unchanged in Sawblades LTFV Final.
Section 776(a)(2) of the Act provides that, if an interested party
(A) withholds information that has been requested by the Department,
(B) fails to provide such information in a timely manner or in the form
or manner requested, subject to subsections 782(c)(1) and (e) of the
Act, (C) significantly impedes a proceeding under the antidumping
statute, or (D) provides such information but the information cannot be
verified, the Department shall, subject to subsection 782(d) of the
Act, use facts otherwise available in reaching the applicable
determination.
Information on the record of this investigation indicates that the
PRC-wide entity was non-responsive. Certain companies did not respond
to our questionnaire requesting Q&V information. As a result, pursuant
to section 776(a)(2)(A) of the Act, we find that the use of facts
available is appropriate to determine the PRC-wide
[[Page 58937]]
rate. See Preliminary Determination of Sales at Less Than Fair Value,
Affirmative Preliminary Determination of Critical Circumstances and
Postponement of Final Determination: Certain Frozen Fish Fillets from
the Socialist Republic of Vietnam, 68 FR 4986 (January 31, 2003),
unchanged in Final Determination of Sales at Less Than Fair Value and
Affirmative Critical Circumstances: Certain Frozen Fish Fillets from
the Socialist Republic of Vietnam, 68 FR 37116 (June 23, 2003).
Section 776(b) of the Act provides that, in selecting from among
the facts otherwise available, the Department may employ an adverse
inference if an interested party fails to cooperate by not acting to
the best of its ability to comply with requests for information. See
Statement of Administrative Action, accompanying the Uruguay Round
Agreements Act (``URAA''), H.R. Rep. No. 103-316, 870 (1994) (``SAA'');
see also Final Determination of Sales at Less Than Fair Value: Certain
Cold-Rolled Flat-Rolled Carbon-Quality Steel Products from the Russian
Federation, 65 FR 5510, 5518 (February 4, 2000). We find that, because
the PRC-wide entity did not respond to our requests for information, it
has failed to cooperate to the best of its ability. Therefore, the
Department preliminarily finds that, in selecting from among the facts
available, an adverse inference is appropriate.
When employing an adverse inference, section 776 indicates that the
Department may rely upon information derived from the petition, the
final determination from the LTFV investigation, a previous
administrative review, or any other information placed on the record.
In selecting a rate for adverse facts available (``AFA''), the
Department selects a rate that is sufficiently adverse to ensure that
the uncooperative party does not obtain a more favorable result by
failing to cooperate than if it had fully cooperated. It is the
Department's practice to select, as AFA, the higher of the (a) highest
margin alleged in the petition, or (b) the highest calculated rate of
any respondent in the investigation. See Final Determination of Sales
at Less Than Fair Value: Certain Cold-Rolled Carbon Quality Steel
Products from the People's Republic of China, 65 FR 34660 (May 21,
2000) and accompanying Issues and Decision Memorandum, at ``Facts
Available.'' As AFA, we have preliminarily assigned to the PRC-wide
entity a rate of 206.00 percent, the highest calculated rate from the
petition. The Department preliminarily determines that this information
is the most appropriate from the available sources to effectuate the
purposes of AFA. The Department's reliance on the petition rate to
determine an AFA rate is subject to the requirement to corroborate
secondary information.\6\
---------------------------------------------------------------------------
\6\ See the ``Corroboration'' section below.
---------------------------------------------------------------------------
Corroboration
Section 776(c) of the Act provides that, when the Department relies
on secondary information rather than on information obtained in the
course of an investigation as facts available, it must, to the extent
practicable, corroborate that information from independent sources
reasonably at its disposal. Secondary information is described in the
SAA as ``information derived from the petition that gave rise to the
investigation or review, the final determination concerning subject
merchandise, or any previous review under section 751 concerning the
subject merchandise.''\7\ The SAA explains that to ``corroborate''
means simply that the Department will satisfy itself that the secondary
information to be used has probative value. Id. The SAA also explains
that independent sources used to corroborate may include, for example,
published price lists, official import statistics and U.S. Customs and
Border Protection (``CBP'') data, and information obtained from
interested parties during the particular investigation. Id. To
corroborate secondary information, the Department will, to the extent
practicable, examine the reliability and relevance of the information
used.\8\
---------------------------------------------------------------------------
\7\ See SAA at 870.
\8\ See Tapered Roller Bearings and Parts Thereof, Finished and
Unfinished, from Japan, and Tapered Roller Bearings, Four Inches or
Less in Outside Diameter, and Components Thereof, from Japan;
Preliminary Results of Antidumping Duty Administrative Reviews and
Partial Termination of Administrative Reviews, 61 FR 57391, 57392
(November 6, 1996), unchanged in Tapered Roller Bearings and Parts
Thereof, Finished and Unfinished, From Japan, and Tapered Roller
Bearings, Four Inches or Less in Outside Diameter, and Components
Thereof, From Japan: Final Results of Antidumping Duty
Administrative Reviews and Termination in Part:, 62 FR 11825 (March
13, 1997).
---------------------------------------------------------------------------
The AFA rate that the Department used is from the petition.\9\
Petitioners' methodology for calculating the export price (``EP'') and
NV in the petition is discussed in the initiation notice.\10\ To
corroborate the AFA margin we have selected, we compared that margin to
the margins we found for the two cooperating respondents. We found that
the margin of 206.00 percent has probative value because it is in the
range of margins we found for the cooperating mandatory respondents.
See RMB/IFI Group Analysis Memorandum at page 1, and Ningbo Yinzhou
Analysis Memorandum at page 1. Accordingly, we find that the rate of
206.00 percent is corroborated within the meaning of section 776(c) of
the Act.
---------------------------------------------------------------------------
\9\ See Petition for Imposition of Antidumping Duties on Certain
Steel Threaded Rod from the People's Republic of China, dated March
5, 2008, at Volume II, Exhibit 23.
\10\ See Initiation Notice, 73 FR at 17318 and 17320.
---------------------------------------------------------------------------
Consequently, we are applying 206.00 percent as the single
antidumping rate to the PRC-wide entity. The PRC-wide rate applies to
all entries of the merchandise under investigation except for entries
from the RMB and IFI Group, Ningbo Yinzhou, and the separate rate
applicants receiving a separate rate.
Margin for the Separate Rate Companies
The Department received timely and complete separate rate
applications from the Separate Rate Companies, who are all exporters of
subject steel threaded rod from the PRC, which were not selected as
mandatory respondents in this investigation. Through the evidence in
their applications, these companies have demonstrated their eligibility
for a separate rate, as discussed above. Consistent with the
Department's practice, as the separate rate, we have established a
margin for the Separate Rate Companies based on the rate we calculated
for the cooperating mandatory respondents, RMB & IFI Group and Ningbo
Yinzhou.\11\ Companies receiving this rate are identified by name in
the ``Suspension of Liquidation'' section of this notice.
---------------------------------------------------------------------------
\11\ See, e.g., Preliminary Determination of Sales at Less Than
Fair Value and Partial Affirmative Determination of Critical
Circumstances: Certain Polyester Staple Fiber from the People's
Republic of China, 71 FR 77373, 77377 (December 26, 2006), unchanged
in Final Determination of Sales at Less Than Fair Value and Partial
Affirmative Determination of Critical Circumstances: Certain
Polyester Staple Fiber from the People's Republic of China, 72 FR
19690 (April 19, 2007).
---------------------------------------------------------------------------
Date of Sale
RMB & IFI Group and Ningbo Yinzhou both reported that the date of
sale was determined by the invoice date. See Section 351.401(i) of the
Department's regulations states that, ``{i{time} n identifying the date
of sale of the subject merchandise or foreign like product, the
Secretary normally will use the date of invoice, as recorded in the
exporter or producer's records kept in the ordinary course of
business.'' However, the Secretary may use a date other than the date
of invoice if the Secretary is satisfied that a different date better
reflects the date on which the exporter or producer establishes the
material terms of sale. See 19 CFR
[[Page 58938]]
351.401(i); see also Allied Tube and Conduit Corp. v. United States,
132 F. Supp. 2d 1087, 1090-1093 (CIT 2001) (``Allied Tube'').
The date of sale is generally the date on which the parties agree
upon all substantive terms of the sale. This normally includes the
price, quantity, delivery terms and payment terms. In Allied Tube, the
Court of International Trade (``CIT'') noted that a ``party seeking to
establish a date of sale other than invoice date bears the burden of
producing sufficient evidence to satisf{y{time} ' the Department that a
different date better reflects the date on which the exporter or
producer establishes the material terms of sale.''' Allied Tube 132 F.
Supp. 2d at 1090 (quoting 19 CFR 351.401(i)). In order to simplify the
determination of date of sale for both the respondent and the
Department and in accordance with 19 CFR 351.401(i), the date of sale
will normally be the date of the invoice, as recorded in the exporter's
or producer's records kept in the ordinary course of business, unless
satisfactory evidence is presented that the exporter or producer
establishes the material terms of sale on some other date. In other
words, the date of the invoice is the presumptive date of sale,
although this presumption may be overcome. For instance, in Notice of
Preliminary Results of Antidumping Duty Administrative Review, Intent
to Rescind and Partial Rescission of Antidumping Duty Administrative
Review: Stainless Steel Bar from India, 72 FR 10151 (March 7, 2007),
unchanged in Notice of Final Results and Final Partial Rescission of
Antidumping Duty Administrative Review: Stainless Steel Bar from
India,72 FR 51595 (September 10, 2007), the Department used the date of
the purchase order as the date of sale because the terms of sale were
established at that point. In this case, as the Department found no
evidence contrary to RMB & IFI Group and Ningbo Yinzhou's claims that
invoice date was the appropriate date of sale, the Department used
invoice date as the date of sale for this preliminary determination.
Fair Value Comparison
To determine whether sales of subject steel threaded rod to the
United States by the RMB and IFI Group and Ningbo Yinzhou were made at
less than fair value, we compared export price (``EP'') to normal value
(``NV''), as described in the ``U.S. Price'' and ``Normal Value''
sections of this notice.
U.S. Price
For RMB and IFI Group and Ningbo Yinzhou, we based U.S. price on EP
in accordance with section 772(a) of the Act, because the first sale to
an unaffiliated purchaser was made prior to importation, and
constructed export price (``CEP'') was not otherwise warranted by the
facts on the record. We calculated EP based on the packed price from
the RMB and IFI Group and Ningbo Yinzhou to the first unaffiliated
customer in the United States. Where applicable, we deducted discounts,
PRC brokerage costs, incurred international freight costs, and marine
insurance costs from the starting price (gross unit price), in
accordance with section 772(c) of the Act.
For a complete discussion of the calculation of the U.S. price for
the RMB and IFI Group and Ningbo Yinzhou, see RMB and IFI Group
Analysis Memorandum and Ningbo Yinzhou Analysis Memorandum.
Normal Value
Section 773(c)(1) of the Act provides that the Department shall
determine the NV using a FOP methodology if the merchandise is exported
from an NME and the information does not permit the calculation of NV
using home-market prices, third-country prices, or constructed value
under section 773(a) of the Act. The Department bases NV on the FOP
because the presence of government controls on various aspects of non-
market economies renders price comparisons and the calculation of
production costs invalid under the Department's normal methodologies.
Factor Valuation Methodology
In accordance with section 773(c) of the Act, we calculated NV
based on FOP data reported by Ningbo Yinzhou and the RMB and IFI Group.
To calculate NV, we multiplied the reported per-unit factor-consumption
rates by publicly available surrogate values (except as discussed
below). In selecting the surrogate values, we considered the quality,
specificity, and contemporaneity of the data. See, e.g., Fresh Garlic
From the People's Republic of China: Final Results of Antidumping Duty
New Shipper Review, 67 FR 72139 (December 4, 2002), and accompanying
Issues and Decision Memorandum at Comment 6; and Final Results of First
New Shipper Review and First Antidumping Duty Administrative Review:
Certain Preserved Mushrooms From the People's Republic of China, 66 FR
31204 (June 11, 2001), and accompanying Issues and Decision Memorandum
at Comment 5. A detailed description of all surrogate values used for
Ningbo Yinzhou and the RMB and IFI Group can be found in the Surrogate
Value Memorandum, Ningbo Yinzhou Analysis Memorandum, and RMB and IFI
Group Analysis Memorandum.
For this preliminary determination, in accordance with the
Department's practice, we used data from the Indian Import Statistics
and other publicly available Indian sources in order to calculate
surrogate values for Ningbo Yinzhou and the RMB and IFI Group's FOPs
(direct materials, energy, and packing materials) and certain movement
expenses. In selecting the best available information for valuing FOPs
in accordance with section 773(c)(1) of the Act, the Department's
practice is to select, to the extent practicable, surrogate values
which are non-export average values, most contemporaneous with the POI,
product-specific, and tax-exclusive. See, e.g., Notice of Preliminary
Determination of Sales at Less Than Fair Value, Negative Preliminary
Determination of Critical Circumstances and Postponement of Final
Determination: Certain Frozen and Canned Warmwater Shrimp From the
Socialist Republic of Vietnam, 69 FR 42672, 42682 (July 16, 2004),
unchanged in Final Determination of Sales at Less Than Fair Value:
Certain Frozen and Canned Warmwater Shrimp from the Socialist Republic
of Vietnam, 69 FR 71005 (December 8, 2004). The record shows that data
in the Indian Import Statistics, as well as those from the other Indian
sources, are contemporaneous with the POI, product-specific, and tax-
exclusive. In those instances where we could not obtain publicly
available information contemporaneous to the POI with which to value
factors, we adjusted the surrogate values using, where appropriate, the
Indian Wholesale Price Index (``WPI'') as published in the
International Financial Statistics of the International Monetary Fund.
Furthermore, with regard to the Indian import-based surrogate
values, we have disregarded import prices that we have reason to
believe or suspect may be subsidized. We have reason to believe or
suspect that prices of inputs from Indonesia, South Korea, and Thailand
may have been subsidized. We have found in other proceedings that these
countries maintain broadly available, non-industry-specific export
subsidies and, therefore, it is reasonable to infer that all exports to
all markets from these countries may be subsidized. See Notice of Final
Determination of Sales at Less Than Fair Value and Negative Final
Determination of Critical
[[Page 58939]]
Circumstances: Certain Color Television Receivers From the People's
Republic of China, 69 FR 20594 (April 16, 2004) and accompanying Issues
and Decision Memorandum at Comment 7 (``CTVs from the PRC''). Further,
guided by the legislative history, it is the Department's practice not
to conduct a formal investigation to ensure that such prices are not
subsidized. See H.R. Rep. 100-576 at 590 (1988). Rather, the Department
bases its decision on information that is available to it at the time
it makes its determination. See Polyethylene Terephthalate Film, Sheet,
and Strip from the People's Republic of China: Preliminary
Determination of Sales at Less Than Fair Value, 73 FR 24552, 24559 (May
5, 2008), unchanged in PET Film LTFV Final. Therefore, we have not used
prices from these countries in calculating the Indian import-based
surrogate values. Additionally, we disregarded prices from NME
countries. Finally, imports that were labeled as originating from an
``unspecified'' country were excluded from the average value, because
the Department could not be certain that they were not from either an
NME country or a country with general export subsidies.
The Department used the Indian Import Statistics to value the raw
material and packing material inputs that Ningbo Yinzhou and the RMB
and IFI Group used to produce the subject merchandise during the POI,
except where listed below.
For direct, indirect, and packing labor, consistent with 19 CFR
351.408(c)(3), we used the PRC regression-based wage rate as reported
on Import Administration's home page, Import Library, Expected Wages of
Selected NME Countries, revised in May 2008, see Corrected 2007
Calculation of Expected Non-Market Economy Wages, 73 FR 27795 (May 14,
2008), and http://ia.ita.doc.gov/wages/index.html. The source of these
wage-rate data on the Import Administration's web site is the Yearbook
of Labour Statistics 2005, ILO (Geneva: 2007), Chapter 5B: Wages in
Manufacturing. Because this regression-based wage rate does not
separate the labor rates into different skill levels or types of labor,
we have applied the same wage rate to all skill levels and types of
labor reported by the respondents.
We valued truck freight expenses using a per-unit average rate
calculated from data on the following Web site: http://
www.infobanc.com/logistics/logtruck.htm. The logistics section of this
Web site contains inland freight truck rates between many large Indian
cities. Since this value is not contemporaneous with the POI, we
deflated the rate using WPI.
We valued international freight shipping expenses using
contemporaneous rates reported by Maersk Line Shipping. Where
applicable, for each respondent, the Department used the international
freight rates reported for each corresponding origin and destination
ports for each month of the POI.
We valued electricity using price data for small, medium, and large
industries, as published by the Central Electricity Authority of the
Government of India in its publication titled Electricity Tariff & Duty
and Average Rates of Electricity Supply in India, dated July 2006.
These electricity rates represent actual country-wide, publicly-
available information on tax-exclusive electricity rates charged to
industries in India. Since the rates are not contemporaneous with the
POI, we inflated the values using the WPI.
To value water, the Department used data from the Maharashtra
Industrial Development Corporation (http://
www.midindia.orgwww.midcindia.org) since it includes a wide range of
industrial water tariffs. This source provides 386 industrial water
rates within the Maharashtra province from June 2003: 193 of the water
rates were for the ``inside industrial areas'' usage category and 193
of the water rates were for the ``outside industrial areas'' usage
category. Because the value was not contemporaneous with the POR, we
used WPI data to inflate the rate to be contemporaneous to the POI.
We valued diesel using the rates provided by the OECD's
International Energy Agency's publication: Key World Energy Statistics
from 2004 and 2005. The prices are based on 2004 and 2005 first quarter
prices of automotive diesel fuel retail prices, thus we used WPI data
to inflate the price to be contemporaneous to the POI.
We valued brokerage and handling using a simple average of the
brokerage and handling costs that were reported in public submissions
that were filed in three antidumping duty cases. Specifically, we
averaged the public brokerage and handling expenses reported by Agro
Dutch Industries Ltd. in the antidumping duty administrative review of
certain preserved mushrooms from India, Kejirwal Paper Ltd. in the LTFV
investigation of certain lined paper products from India, and Essar
Steel in the antidumping duty administrative review of hot-rolled
carbon steel flat products from India. See Certain Preserved Mushrooms
From India: Final Results of Antidumping Duty Administrative Review, 71
FR 10646 (March 2, 2006); see also Notice of Preliminary Determination
of Sales at Less Than Fair Value, Postponement of Final Determination,
and Affirmative Preliminary Determination of Critical Circumstances in
Part: Certain Lined Paper Products From India, 71 FR 19706 (April 17,
2006), unchanged in Notice of Final Determination of Sales at Less Than
Fair Value, and Negative Determination of Critical Circumstances:
Certain Lined Paper Products from India, 71 FR 45012 (August 8, 2006)
and Certain hot-Rolled Carbon Steel Flat Products From India:
Preliminary Results of Antidumping Duty Administrative Review, 71 FR
2018,2021 (January 12, 2006) (unchanged in Certain Hot-Rolled Carbon
Steel Flat Products From India: Final Results of Antidumping
Administrative Review, 71 FR 40694 (July 18, 2006). Since the resulting
value is not contemporaneous with the POI, we inflated the rate using
the WPI.
To value marine insurance, the Department used data from RGJ
Consultants (http://www.rjgconsultants.com/). This source provides
information regarding the per-value rates of marine insurance of
imports and exports to/from various countries.
To value factory overhead, selling, general, and administrative
expenses, and profit, we used the average of two audited 2006-2007
financial statements: Deepak Fasteners and Nasco Steel, producers in
India of merchandise comparable to steel threaded rod. For a detailed
discussion of all surrogate values used for this preliminary
determination, see October 1, 2008, Surrogate Value Memorandum.
Use of Facts Available
Section 776(a)(1) of the Act mandates that the Department use facts
available if necessary information is not available on the record of an
antidumping proceeding. In this review, Ningbo Yinzhou reported that it
used tolling companies to finish subject steel threaded rod sold to the
U.S. during the POI. See July 1, 2008, Ningbo Yinzhou questionnaire
response at 3. Furthermore, Ningbo Yinzhou did not report the factors
of production associated with the inputs consumed by its unaffiliated
tolling companies during the finishing process, which are necessary to
the Department's calculation of normal value. Therefore, pursuant to
section 776(a)(2)(B) of the Act, Ningbo Yinzhou failed to provide
information relevant to the Department's analysis. Thus, consistent
with section 782(d) of the Act, the Department has determined it
necessary
[[Page 58940]]
to apply facts otherwise available to value zinc plated and hot-dip
galvanizing finishes for subject steel threaded rods sold to the United
States during the POI. To account for the finishing costs associated
Ningbo Yinzhou's zinc-plating and hot-dip galvanized steel threaded rod
sold to the U.S. during the POI, the Department has preliminarily
determined to apply the reported cost of galvanizing rebar,\12\
reported by Galrebars.com, a trade association in India, to value to
the factors associated with galvanizing steel threaded rod. See
Surrogate Value Memorandum at exhibit 4. However, subsequent to the
preliminary determination, the Department intends to request additional
information from Ningbo Yinzhou regarding the factors of production
consumed in galvanizing steel threaded rod for the purposes of the
final determination.
---------------------------------------------------------------------------
\12\ For this purpose, we consider partially deformed concrete
steel reinforcing bar (i.e., rebar) comparable merchandise to CSTR.
---------------------------------------------------------------------------
Currency Conversion
We made currency conversions into U.S. dollars, in accordance with
section 773A(a) of the Act, based on the exchange rates in effect on
the dates of the U.S. sales as certified by the Federal Reserve Bank.
Verification
As provided in section 782(i)(1) of the Act, we intend to verify
the information upon which we will rely in making our final
determination.
Combination Rates
In the Initiation Notice, the Department stated that it would
calculate combination rates for certain respondents that are eligible
for a separate rate in this investigation. See Initiation Notice, 72 FR
at 60806. This practice is described in Policy Bulletin 05.1, available
at http://ia.ita.doc.gov/.
Preliminary Determination
The weighted-average dumping margins are as follows:
Certain Steel Threaded Rod from the PRC
----------------------------------------------------------------------------------------------------------------
Exporter Producer Weighted-Average Margin
----------------------------------------------------------------------------------------------------------------
RMB Fasteners Ltd., and IFI & Morgan Ltd. (``RMB and Jiaxing Brother Fastener 77.85%
IFI Group'')....................................... Co., Ltd. (aka Jiaxing
Brother Standard Parts Co.,
Ltd.)
Ningbo Yinzhou Foreign Trade Co. Ltd................ Zhejiang Guorui Industry 176.57%
Co., Ltd.; or Ningbo Daxie
Chuofeng Industrial
Development Co. Ltd.
Separate Rates Entities............................. Producer Margin
Shanghai Recky International Trading Co., Ltd....... Shanghai Xiangrong 91.22%
International Trading Co.,
Ltd.; Shanghai Xianglong
International Trading Co.,
Ltd.; Pighu City Zhapu Screw
Cap Factory; or Jiaxing
Xinyue Standard Part Co.,
Ltd.
Suntec Industries Co., Ltd.......................... Jiaxing Xinyue Standard Part 91.22%
Co., Ltd.; or Haiyan County
No. 1 Fasteners Factory
Hangzhou Grand Imp. & Exp. Co., Ltd................. Zhapu Creative Standard 91.22%
Parts Material Co., Ltd.
Shanghai Prime Machinery Co. Ltd.................... Haiyan Yida Fasteners Co., 91.22%
Ltd.; or Jiaxing Xinyue
Standard Part Co., Ltd.
Jiaxing Xinyue Standard Part Co., Ltd............... Jiaxing Xinyue Standard Part 91.22%
Co., Ltd.
Certified Products International Inc................ Jiashan Zhongsheng Metal 91.22%
Products Co., Ltd.; or
Jiaxing Xinyue Standard Part
Co., Ltd.
Zhejiang New Oriental Fastener Co., Ltd............. Zhejiang New Oriental 91.22%
Fastener Co., Ltd.
Jiashan Zhongsheng Metal Products Co., Ltd.......... Jiashan Zhongsheng Metal 91.22%
Products Co., Ltd.
Haiyan Dayu Fasteners Co., Ltd...................... Haiyan Dayu Fasteners Co., 91.22%
Ltd.
PRC-wide Entity..................................... ............................ 206.00%
----------------------------------------------------------------------------------------------------------------
Disclosure
We will disclose the calculations performed within five days of the
date of publication of this notice to parties in this proceeding in
accordance with 19 CFR 351.224(b).
Suspension of Liquidation
In accordance with section 733(d) of the Act, we will instruct CBP
to suspend liquidation of all entries of subject steel threaded rod
from the PRC as described in the ``Scope of Investigation'' section,
entered, or withdrawn from warehouse, for consumption from Shanghai
Recky, Suntec Industries, Hangzhou Grand, Shanghai Prime, Jianxing
Xinyue, CPII, Jiashan Zhongsheng, Haiyan Dayu, New Oriental, Ningbo
Yinzhou, the RMB and IFI Group, and the PRC-wide entity on or after the
date of publication of this notice in the Federal Register. We will
instruct CBP to require a cash deposit or
[[Page 58941]]
the posting of a bond equal to the weighted-average amount by which the
normal value exceeds U.S. price, as indicated above.
International Trade Commission Notification
In accordance with section 733(f) of the Act, we have notified the
ITC of our preliminary affirmative determination of sales at less than
fair value. Section 735(b)(2) of the Act requires the ITC to make its
final determination as to whether the domestic industry in the United
States is materially injured, or threatened with material injury, by
reason of imports of steel threaded rod, or sales (or the likelihood of
sales) for importation, of the subject merchandise within 45 days of
our final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Import Administration no later than seven days
after the date of the final verification report is issued in this
proceeding and rebuttal briefs limited to issues raised in case briefs
no later than five days after the deadline date for case briefs (see 19
CFR 351.309(c)(i) and (d)). A list of authorities used and an executive
summary of issues should accompany any briefs submitted to the
Department. This summary should be limited to five pages total,
including footnotes.
In accordance with section 774 of the Act, and if requested, we
will hold a public hearing, to afford interested parties an opportunity
to comment on arguments raised in case or rebuttal briefs. If a request
for a hearing is made, we intend to hold the hearing shortly after the
deadline of submission of rebuttal briefs at the U.S. Department of
Commerce, 14th Street and Constitution Ave, NW, Washington, DC 20230,
at a time and location to be determined. Parties should confirm by
telephone the date, time, and location of the hearing two days before
the scheduled date.
Interested parties who wish to request a hearing, or to participate
if one is requested, must submit a written request to the Assistant
Secretary for Import Administration, U.S. Department of Commerce, Room
1870, within 30 days after the date of publication of this notice. See
19 CFR 351.310(c). Requests should contain the party's name, address,
and telephone number, the number of participants, and a list of the
issues to be discussed. At the hearing, each party may make an
affirmative presentation only on issues raised in that party's case
brief and may make rebuttal presentations only on arguments included in
that party's rebuttal brief.
Unless the deadline is extended pursuant to section 735(a)(2) of
the Act, the Department will make its final determination within 75
days after the date of this preliminary determination, pursuant to
section 735(a)(1) of the Act.
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act.
Dated: October 1, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-23896 Filed 10-7-08; 8:45 am]
BILLING CODE 3510-DS-S