Alloy and Certain Carbon Steel Threaded Rod From the People's Republic of China; Carbon and Alloy Steel Threaded Rod From the People's Republic of China: Final Affirmative Determination of Circumvention of the Antidumping and Countervailing Duty Orders

<NOTICE> DEPARTMENT OF COMMERCE <SUBAGY>International Trade Administration</SUBAGY> <DEPDOC>[A-570-104, C-570-105]</DEPDOC> <SUBJECT>Alloy and Certain Carbon Steel Threaded Rod From the People's Republic of China; Carbon and Alloy Steel Threaded Rod From the People's Republic of China: Final Affirmative Determination of Circumvention of the Antidumping and Countervailing Duty Orders</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Enforcement and Compliance, International Trade Administration, Department of Commerce. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The U.S. Department of Commerce (Commerce) determines that imports of unthreaded pins of alloy steel from the People's Republic of China (China) are circumventing the antidumping duty order on alloy and certain carbon steel threaded rod from China and the countervailing duty order on carbon and alloy steel threaded rod from China. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> Applicable August 27, 2024. </DATES> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Zachary Krivine, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-3638. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Background</HD> On March 14, 2024, pursuant to section 781(e)(1)(A) of the Tariff Act of 1930, as amended (the Act), Commerce published the <E T="03">Preliminary Determination</E> and invited interested parties to comment. <SU>1</SU> <FTREF/> We notified the U.S. International Trade Commission (ITC) of our affirmative preliminary determination. <SU>2</SU> <FTREF/> Commerce also informed the ITC of its ability under the Act to request consultations with Commerce regarding Commerce's proposed inclusion of inquiry merchandise within the scope of the <E T="03">Orders</E> under the authority of section 781(a) of the Act. <SU>3</SU> <FTREF/> <FTNT> <SU>1</SU>   <E T="03">See Alloy and Certain Carbon Steel Threaded Rod from the People's Republic of China; Carbon and Alloy Steel Threaded Rod from the People's Republic of China: Affirmative Preliminary Determination of Circumvention of the Antidumping and Countervailing Duty Orders,</E> 89 FR 18600 (March 14, 2024) ( <E T="03">Preliminary Determination</E> ), and accompanying Preliminary Decision Memorandum (PDM). </FTNT> <FTNT> <SU>2</SU>   <E T="03">See</E> Commerce's Letter, “Preliminary Affirmative Determinations of Circumvention,” dated March 11, 2024. </FTNT> <FTNT> <SU>3</SU>   <E T="03">Id.</E> </FTNT> On March 29, 2024, Birmingham Fastener Inc./Houston Fastener Mfg. Inc. (Birmingham) and Dan Loc Group LLC (Dan Loc)  <SU>4</SU> <FTREF/> and Vulcan Threaded Products Inc. (the petitioner) filed case briefs. <SU>5</SU> <FTREF/> On April 5, 2024, Birmingham and Dan Loc, <SU>6</SU> <FTREF/> and the petitioner filed rebuttal briefs. <SU>7</SU> <FTREF/> On May 31, 2024, Commerce held a public hearing in this matter. <SU>8</SU> <FTREF/> <FTNT> <SU>4</SU>   <E T="03">See</E> Birmingham and Dan Loc's Letter, “Case Brief on Behalf of Birmingham Fastener, Inc., Houston Fastener, Inc. And Dan-Loc Group LLC,” dated March 29, 2024. </FTNT> <FTNT> <SU>5</SU>   <E T="03">See</E> Petitioner's Letter, “Petitioner's Case Brief,” dated March 29, 2024. </FTNT> <FTNT> <SU>6</SU>   <E T="03">See</E> Birmingham and Dan Loc's Letter, “Rebuttal Brief on Behalf of Birmingham Fastener, Inc., Houston Fastener, Inc. And Dan-Loc Group LLC,” dated April 5, 2024. </FTNT> <FTNT> <SU>7</SU>   <E T="03">See</E> Petitioner's Letter, “Petitioner's Rebuttal Brief,” dated April 5, 2024. </FTNT> <FTNT> <SU>8</SU>   <E T="03">See</E> Hearing Transcript, “In the Matter of: Circumvention Inquiries Regarding Antidumping Duty Order and Countervailing Duty Order on Carbon and Alloy Steel Threaded Rod from the People's Republic of China,” dated May 31, 2024. </FTNT> On July 22, 2024, Commerce tolled the deadline in these circumvention inquiries by seven days, extending the deadline for issuing the final determination to August 16, 2024. <SU>9</SU> <FTREF/> On August 16, 2024, Commerce extended the deadline for issuing the final determination in these circumvention inquiries by an additional five days, until August 21, 2024. <SU>10</SU> <FTREF/> <FTNT> <SU>9</SU>   <E T="03">See</E> Memoranda, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024; “Extension of Deadline for Final Determination in Circumvention Inquiries,” dated April 30, 2024; and “Second Extension of Deadline for Final Determination in Circumvention Inquiries,” dated June 28, 2024. </FTNT> <FTNT> <SU>10</SU>   <E T="03">See</E> Memorandum, “Additional Extension of Final Determination in Circumvention Inquiries,” dated August 16, 2024. </FTNT> For a summary of events that occurred since the <E T="03">Preliminary Determination,</E> as well as a full discussion of the issues raised by parties for consideration in the final determination, <E T="03">see</E> the Issues and Decision Memorandum. <SU>11</SU> <FTREF/> The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at <E T="03">https://access.trade.gov.</E> In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at <E T="03">https://access.trade.gov/public/FRNoticesListLayout.aspx.</E> <FTNT> <SU>11</SU>   <E T="03">See</E> Memorandum, “Decision Memorandum for the Final Determination in the Circumvention Inquiries Regarding the Antidumping Duty Order on Alloy and Certain Carbon Steel Threaded Rod from the People's Republic of China and the Countervailing Duty Order on Carbon and Alloy Steel Threaded Rod from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). </FTNT> <HD SOURCE="HD1"> Scope of the Orders  <E T="51">12</E> <E T="03">See Alloy and Certain Carbon Steel Threaded Rod from the People's Republic of China: Antidumping Duty Order,</E> 85 FR 19929 (April 9, 2020) ( <E T="03">AD Order</E> ); and <E T="03">Carbon and Alloy Steel Threaded Rod from India and the People's Republic of China: Countervailing Duty Orders,</E> 85 FR 19927 (April 9, 2020) ( <E T="03">CVD Order</E> ) (collectively, <E T="03">Orders</E> ). </FTNT> The merchandise covered by the scope of the <E T="03">AD Order</E> is alloy and certain carbon steel threaded rod from China. The merchandise covered by the scope of the <E T="03">CVD Order</E> is carbon and alloy steel threaded rod from China. For a full description of the scopes, <E T="03">see</E> the <E T="03">Preliminary Determination</E> PDM. <HD SOURCE="HD1">Merchandise Subject to the Circumvention Inquiry</HD> These circumvention inquiries cover unthreaded pins of alloy steel exported from China which are further processed into alloy steel threaded rod in the United States. Unthreaded pins of alloy steel are unthreaded rod, bar, or studs, having a solid, circular cross section of any diameter, in any straight length, and are non-headed. Unthreaded pins may enter unchamfered or with their ends already chamfered. Such pins may also be referenced as “pitch diameter stud blanks” or “blanks.” Unthreaded pins of alloy steel are believed to enter under Harmonized Tariff Schedule of the United States (HTSUS) subheadings 7318.15.5051, 7318.15.5056, 7318.15.5090, 7228.60.8000, 7318.15.2095, 7318.19.0000, and 7318.29.0000, several of which also cover alloy steel threaded rod. <HD SOURCE="HD1">Methodology</HD> Commerce conducted these circumvention inquiries in accordance with section 781(a) of the Act and 19 CFR 351.226. We have continued to apply the methodology relied upon for the <E T="03">Preliminary Determination,</E> including our use of facts available with adverse inferences with respect to Ningbo Zhenghai Yongding Fastener Co., Ltd. (Yongding Fastener) and its affiliated trading company, Ningbo Ningding Import & Export Co. Ltd. (Ningding I&E), <SU>13</SU> <FTREF/> pursuant to sections 776(a) and (b) of the Act, for our final determination. <E T="03">See</E> the <E T="03">Preliminary Determination</E> PDM for a full description of the methodology. <SU>14</SU> <FTREF/> <FTNT> <SU>13</SU>  Yongding Fastener exports through Ningding I&E. As in the <E T="03">Preliminary Determination,</E> as adverse facts available, we are treating Yongding Fastener and Ningding I&E, its affiliated trading company, as a single entity. </FTNT> <FTNT> <SU>14</SU>   <E T="03">See Preliminary Determination</E> PDM at 4-30. </FTNT> <HD SOURCE="HD1">Analysis of Comments Received</HD> All issues raised in these inquiries are addressed in the Issues and Decision Memorandum. A list of the issues raised is attached to this notice in Appendix I. Based on our analysis of the comments received from interested parties, we made no changes to the <E T="03">Preliminary Determination.</E> <HD SOURCE="HD1">Final Circumvention Determination</HD> As detailed in the Issues and Decision Memorandum, Commerce determines, pursuant to section 781(a) of the Act, that imports of unthreaded pins of alloy steel from China that are further processed in the United States into subject merchandise are circumventing the <E T="03">Orders.</E> We are applying our decision on a country-wide basis. <E T="03">See</E> the “Suspension of Liquidation and Cash Deposit Requirements” section, below, for details regarding suspension of liquidation and cash deposit requirements. <HD ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 27k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━