AGENCY:
Import Administration, International Trade Administration, Department of Commerce.
EFFECTIVE DATES:
February 7, 2008.
SUMMARY:
On January 23, 2008, the Department of Commerce (the “Department”) published the preliminary determination of sales at less than fair value (“LTFV”) in the antidumping investigation of certain steel nails from the People's Republic of China (“PRC”). See Certain Steel Nails From the People's Republic of China: Preliminary Determination of Sales at Less Than Fair Value and Partial Affirmative Determination of Critical Circumstances and Postponement of Final Determination, 73 FR 3928 (January 23, 2008) (“Preliminary Determination”). We are amending our preliminary determination to correct certain ministerial errors with respect to the antidumping duty margin calculation for Illinois Tool Works Inc. and Paslode Fasteners (Shanghai) Co., Ltd. (collectively, “Paslode”). The corrections to Paslode's margin also affect the margin applied to companies granted separate-rate status.
FOR FURTHER INFORMATION CONTACT:
Nicole Bankhead, AD/CVD Operations, Office 9, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW., Washington, DC, 20230; telephone: (202) 482-9068.
SUPPLEMENTARY INFORMATION:
On January 23, 2008, the Department published in the Federal Register the preliminary determination that certain steel nails (“nails”) from the PRC are being, or are likely to be, sold in the United States at LTFV, as provided in section 733 of the Tariff Act of 1930, as amended (“the Act”). See Preliminary Determination.
On January 22, 2008, Paslode and Petitioners filed timely allegations of ministerial errors contained in the Department's Preliminary Determination. After reviewing the allegations, we have determined that the Preliminary Determination included significant ministerial errors. Therefore, in accordance with 19 CFR 351.224(e), we have made changes, as described below, to the Preliminary Determination.
Mid Continent Nail Corporation, Davis Wire Corporation, Gerdau Ameristeel Corporation (Atlas Steel & Wire Division), Maze Nails (Division of W.H. Maze Company), Treasure Coast Fasteners, Inc., and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (collectively, “Petitioners”).
Period of Investigation
The period of investigation (“POI”) is October 1, 2006, through March 31, 2007. This period corresponds to the two most recent fiscal quarters prior to the month of the filing of the petition, May 2007. See 19 CFR 351.204(b)(1).
Scope of Investigation
The merchandise covered by this investigation includes certain steel nails having a shaft length up to 12 inches. Certain steel nails include, but are not limited to, nails made of round wire and nails that are cut. 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 have a variety of finishes, heads, shanks, point types, shaft lengths and shaft diameters. Finishes include, but are not limited to, coating in vinyl, zinc (galvanized, whether by electroplating or hot-dipping one or more times), phosphate cement, and paint. 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 shank styles. Screw-threaded nails subject to this proceeding are driven using direct force and not by turning the fastener using a tool that engages with the head. Point styles include, but are not limited to, diamond, blunt, needle, chisel and no point. Finished nails may be sold in bulk, or they may be collated into strips or coils using materials such as plastic, paper, or wire. Certain steel nails subject to this proceeding are currently classified under the Harmonized Tariff Schedule of the United States (“HTSUS”) subheadings 7317.00.55, 7317.00.65 and 7317.00.75.
Excluded from the scope of this proceeding are roofing nails of all lengths and diameter, whether collated or in bulk, and whether or not galvanized. Steel roofing nails are specifically enumerated and identified in ASTM Standard F 1667 (2005 revision) as Type I, Style 20 nails. Also excluded from the scope of this proceeding are corrugated nails. A corrugated nail is made of a small strip of corrugated steel with sharp points on one side. Also excluded from the scope of this proceeding are fasteners suitable for use in powder-actuated hand tools, not threaded and threaded, which are currently classified under HTSUS 7317.00.20 and 7317.00.30. Also excluded from the scope of this proceeding are thumb tacks, which are currently classified under HTSUS 7317.00.10.00. Also excluded from the scope of this proceeding are certain brads and finish nails that are equal to or less than 0.0720 inches in shank diameter, round or rectangular in cross section, between 0.375 inches and 2.5 inches in length, and that are collated with adhesive or polyester film tape backed with a heat seal adhesive.
While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of these investigations is dispositive.
Significant Ministerial Error
Ministerial errors are defined in section 735(e) of the Act as “errors in addition, subtraction, or other arithmetic function, clerical errors resulting from inaccurate copying, duplication, or the like, and any other type of unintentional error which the administering authority considers ministerial.” Section 351.224(e) of the Department's regulations provides that the Department “will analyze any comments received and, if appropriate, correct any significant ministerial error by amending the preliminary determination* * *.” A significant ministerial error is defined as an error, the correction of which, singly or in combination with other errors, would result in (1) a change of at least five absolute percentage points in, but not less than 25 percent of, the weighted-average dumping margin calculated in the original (erroneous) preliminary determination; or (2) a difference between a weighted-average dumping margin of zero or de minimis and a weighted-average dumping margin of greater than de minimis or vice versa. See 19 CFR 351.224(g).
Ministerial Error Allegations From Paslode
Rail Freight
Paslode argues that the Department incorrectly applied the rail freight surrogate value in calculating the antidumping duty margin. Paslode notes in calculating the margin, the Department set the surrogate value for rails to 6.07 rupees per kilogram. See Memorandum to the File from Matthew Renkey, through Alex Villanueva, Program Manager, AD/CVD Operations, Office 9, and James C. Doyle, Director, AD/CVD Operations, Office 9: Certain Steel Nails from the People's Republic of China: Surrogate Values for the Preliminary Determination, dated January 15, 2008 (“Surrogate Value Memorandum”) at 11. According to Paslode, the calculation was incorrectly reading the Indian freight rates provided on the Indian Railways website as if they were stated on a per quintal (100) kilogram basis. However, Paslode asserts that the Indian freight rates provided on the Indian Railways website are stated on a per ton (1000) kilogram basis. See Petitioners' December 3, 2007, Surrogate Value Submission at Exhibit 52. Therefore, Paslode argues that the correct freight rate is 0.607 rupees per kilogram.
We agree that the Department incorrectly calculated the rail surrogate value. This error qualifies as a ministerial error in accordance with section 735(e) of the Act. Moreover, when considered in combination with the other corrections discussed below, this error constitutes a significant ministerial error in accordance with section 351.224(g) of the Department's regulations.
Ministerial Error Allegations From Petitioners
Billing Adjustments
Petitioners state that the Department inadvertently did not account for Paslode's reported billing adjustments. Petitioners argue that the Department should adjust the gross unit price to account for these billing adjustments in the targeted dumping analysis program. In addition, Petitioners argue that this same change needs to be made to Paslode's margin calculation programs.
We agree that the Department did not account for certain billing adjustments in the targeted dumping and margin calculation programs. Paslode reported that it incurred billing adjustments in its January 3, 2008, supplemental Section C questionnaire response and we indicated that we were adjusting for these billing adjustments. See Memorandum to the File from Nicole Bankhead, Senior Case Analyst: Program Analysis for the Preliminary Determination of Antidumping Duty Investigation of Certain Steel Nails from the People's Republic of China: Paslode, dated January 15, 2008 (“Paslode Analysis Memorandum”). However, the Department inadvertently did not include billing adjustments in Paslode's margin calculation program. This error qualifies as a ministerial error in accordance with section 735(e) of the Act. Moreover, when considered in combination with the other corrections discussed below, this error constitutes a significant ministerial error in accordance with section 351.224(g) of the Department's regulations.
Profit Surrogate Value
Petitioners argue that the Department used the incorrect surrogate value for profit in the CEP profit calculation in Paslode's targeted dumping analysis program.
We agree that the Department inadvertently mis-entered the profit surrogate value in the CEP profit calculation in Paslode's targeted dumping analysis program. This error qualifies as a ministerial error in accordance with section 735(e) of the Act. Moreover, when considered in combination with the other corrections discussed in this notice, this error constitutes a significant ministerial error in accordance with section 351.224(g) of the Department's regulations.
Brokerage and Handling Surrogate Value
Petitioners argue that the Department inadvertently entered the incomplete surrogate brokerage and handling charge in the calculation of Paslode's movement expenses.
We agree that the Department inadvertently only entered the surrogate brokerage and handling charge out to two decimal points instead of five in the calculation of Paslode's movement expenses. This error qualifies as a ministerial error in accordance with section 735(e) of the Act. Moreover, when considered together with the other corrections discussed in this notice, this error constitutes a significant ministerial error in accordance with section 351.224(g) of the Department's regulations.
Amended Preliminary Determination
We determine that these allegations qualify as ministerial errors as defined in section 351.224(g) of the Department's regulations because they result in a change of more than five absolute percentage points to Paslode's dumping margin. Accordingly, we have corrected the errors alleged by Paslode and Petitioners. See Memorandum to the File from Nicole Bankhead, Senior Case Analyst: Program Analysis for the Amended Preliminary Determination of Antidumping Duty Investigation of Certain Steel Nails from the People's Republic of China: Paslode, dated January 30, 2008 (“Paslode Amended Prelim Analysis Memorandum”).
As a result of correcting the above errors made to Paslode's margin, the margin for the companies granted separate rate status must also be revised because the margin for those companies was partially derived from Paslode's margin. See Paslode Amended Prelim Analysis Memorandum at Exhibit 5.
As a result of corrections of ministerial errors, the weighted-average dumping margins are as follows:
Certain Steel Nails From the PRC
The collection of bonds or cash deposits and suspension of liquidation will be revised accordingly and parties will be notified of this determination, in accordance with section 733(d) and (f) of the Act.
International Trade Commission Notification
In accordance with section 733(f) of the Act, we have notified the International Trade Commission (“ITC”) of our amended preliminary determination. If our final determination is affirmative, the ITC will 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 certain lined paper products, or sales (or the likelihood of sales) for importation, of the subject merchandise within 45 days of our final determination.
This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.224(e).
Dated: January 30, 2008.
David M. Spooner,
Assistant Secretary for Import Administration.
[FR Doc. E8-2273 Filed 2-6-08; 8:45 am]
BILLING CODE 3510-DS-P