[Federal Register Volume 83, Number 154 (Thursday, August 9, 2018)]
[Notices]
[Pages 39422-39424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17050]


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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; 2016-2017

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) is conducting an 
administrative review of the antidumping duty order on certain steel 
nails from Malaysia. This review covers the sales of two mandatory 
respondents, both of which we preliminarily determine to have made 
sales at less than normal value during the period of review, covering 
July 1, 2016, through June 30, 2017. In addition, we are rescinding the 
review in part with respect to 15 companies for which the request for 
review was timely withdrawn.

DATES: Applicable August 9, 2018.

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 13, 2017, Commerce 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, 82 FR 42974 (September 13, 2017) (Initiation 
Notice).
    \2\ See Memorandum, ``Decision Memorandum for Preliminary 
Results and Partial Rescission of Antidumping Duty Administrative 
Review: Certain Steel Nails from Malaysia; 2016-2017'', dated 
concurrently with this notice (Preliminary Decision Memorandum).
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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. 
Subsequently, the petitioner, Mid Continent Steel & Wire, Inc., 
withdrew its request for review of 15 of the companies. 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 CFR 
351.213(d)(1), we are rescinding the administrative review of the 
following companies: Airlift Trans Oceanic Pvt. Ltd.; Astrotech Steels 
Private Ltd.; Caribbean International Co. Ltd.; Dahnay Logistics Pvt. 
Ltd.; Flyjac Logistics Private Ltd.; Full Well Freight (Thailand) Co.; 
Hecny Transportation; Jinhai Hardware Co. Ltd.; Orient Containers Sdn. 
Bhd.; Orient Express Container Co., Ltd.; Scanwell Logistics (Malaysia) 
Sdn Bhd; Shanghai Haoray International Trade Co. Ltd.; Sino Connections 
Logistics; Tag Fasteners Sdn. Bhd.; and Topocean Consolidation 
Services.

Methodology

    Commerce 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 July 1, 2016, 
through June 30, 2017, the following weighted-average dumping margins 
exist: \3\
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    \3\ Commerce 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 a full 
discussion of the collapsing criteria, see the company-specific 
analysis memorandum, dated concurrently with this notice.

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                    Producer/exporter                     dumping margin
                                                             (percent)
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Inmax Sdn. Bhd. and Inmax Industries Sdn. Bhd...........            0.00
Region International Co. Ltd. and Region System Sdn. Bhd            1.33
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Disclosure and Public Comment

    Commerce 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.\4\ Interested parties may submit case briefs no later than 
seven days after the date on which the last verification report is 
issued in this administrative review.\5\ Rebuttal briefs, limited to 
issues raised in the case briefs, may be filed no later than five days 
after the deadline for filing case briefs.\6\ 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.\7\ Case and rebuttal briefs 
should be filed using ACCESS.\8\
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    \4\ See 19 CFR 351.224(b).
    \5\ See 19 CFR 351.309(c)(1)(ii).
    \6\ See 19 CFR 351.309(d)(1).
    \7\ See 19 CFR 351.309(c)(2) and (d)(2).
    \8\ 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.\9\ 
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, Commerce intends to hold the hearing at 
the U.S. Department of

[[Page 39423]]

Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a date 
and time to be determined.\10\ Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.
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    \9\ See 19 CFR 351.310(c).
    \10\ See 19 CFR 351.310(d).
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    Unless extended, Commerce 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 completion of the administrative review, Commerce shall 
determine, and U.S. Customs and Border Protection (CBP) shall assess, 
antidumping duties on all appropriate entries covered by this 
review.\11\ The final results of this review shall be the basis for the 
assessment of antidumping duties on entries of merchandise covered by 
the final results of this review and for future deposits of estimated 
duties, where applicable.\12\ We intend to issue instructions to CBP 15 
days after the publication date of the final results of this review.
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    \11\ See 19 CFR 351.212(b).
    \12\ See section 751(a)(2)(C) of the Act.
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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 
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 Commerce'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 sections 19 CFR 
351.213(h)(1) and 351.221(b)(4).

    Dated: August 3, 2018.
Christian Marsh,
Deputy 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.\13\ 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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    \13\ 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,

[[Page 39424]]

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. Summary
2. Background
3. Scope of the Order
4. Partial Rescission of Administrative Review
5. Collapsing of Affiliated Companies
6. Date of Sale
7. Comparisons to Normal Value
    A. Determination of Comparison Method
    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. Cost Averaging Methodology
    A. Significance of Cost Changes
    B. Linkage Between Sales and Cost Information
2. Calculation of COP
3. Test of Comparison Market Sales Prices
4. 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. Verification
13. Recommendation

[FR Doc. 2018-17050 Filed 8-8-18; 8:45 am]
 BILLING CODE 3510-DS-P