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Certain Steel Wheels From the People's Republic of China: Final Affirmative Countervailing Duty Determination

American Government Special Collections Reference Desk

American Government Cars in China

Certain Steel Wheels From the People's Republic of China: Final Affirmative Countervailing Duty Determination

Gary Taverman
Department of Commerce
28 March 2019


[Federal Register Volume 84, Number 60 (Thursday, March 28, 2019)]
[Notices]
[Pages 11744-11746]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05956]



[[Page 11744]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-083]


Certain Steel Wheels From the People's Republic of China: Final 
Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
producers and exporters of certain steel wheels from the People's 
Republic of China (China) received countervailable subsidies as 
provided in section 705 of the Tariff Act of 1930, as amended (the Act) 
during the period of investigation (POI), January 1, 2017, through 
December 31, 2017.

DATES: Applicable March 28, 2019.

FOR FURTHER INFORMATION CONTACT: Chien-Min Yang or Myrna Lobo, AD/CVD 
Operations, Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone (202) 482-5484 or (202) 482-2371, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On August 31, 2018, Commerce published in the Federal Register the 
preliminary affirmative determination of this investigation.\1\ A 
summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum.\2\ A list of topics included in the 
Issues and Decision Memorandum is included as Appendix II to this 
notice.
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    \1\ See Certain Steel Wheels from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 83 FR 44673 (August 31, 2018) (Preliminary 
Determination) and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Steel Wheels from the People's Republic of China,'' dated 
concurrently with this determination and hereby adopted by this 
notice (Issues and Decision Memorandum).
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    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 http://access.trade.gov, and 
is available to all parties in the Central Records Unit, Room B8024 of 
the main Department of Commerce building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed Issues and Decision 
Memorandum and the electronic version are identical in content.

Period of Investigation

    The POI is January 1, 2017, through December 31, 2017.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope), and states ``if a 
party subsequently finds that additional factual information pertaining 
to the scope of the investigation may be relevant, the party may 
contact Commerce and request permission to submit the additional 
information.'' \4\ No issue was raised regarding the scope as it 
appeared in the Initiation Notice during the time period provided for 
scope comments. On December 11, 2018, the petitioners \5\ requested 
that Commerce permit them to submit additional factual information for 
the final scope determination to ensure any orders resulting from this 
investigation would effectively provide relief from unfairly-traded 
imports.\6\ In response, Commerce provided the petitioners an 
opportunity to submit new factual information and comments relating the 
scope. Commerce also provided interested parties an opportunity to 
submit comments and factual information intended to rebut, clarify or 
correct the petitioners' new factual information.\7\ On December 19, 
2018, the petitioners submitted comments on the scope of the 
investigation.\8\ On February 4, 2019, Xiamen Sunrise \9\ and Zhejiang 
Jingu Company Limited (Zhejiang Jingu) each submitted rebuttal comments 
pertaining to the petitioners' scope comments.\10\ After considering 
comments and supporting factual information, Commerce is modifying the 
scope language as it appeared in the Initiation Notice. For further 
discussion, see Issues and Decision Memorandum.
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Certain Steel Wheels from the People's Republic of 
China: Initiation of Countervailing Duty Investigation, 83 FR 17794 
(April 24, 2018) (Initiation Notice).
    \5\ The petitioners are Accuride Corporation and Maxion Wheels 
Akron LLC (collectively, the petitioners).
    \6\ See Letter from the petitioners, ``Certain Steel Wheels from 
China (C-570-083)--Petitioners' Request to Submit Additional Factual 
Information Relevant to Scope,'' dated December 11, 2018.
    \7\ See Memorandum, ``Certain Steel Wheels from the People's 
Republic of China: Opportunity to Submit Factual Information and 
Comments Pertaining to the Scope of Investigations,'' dated December 
14, 2018.
    \8\ See Petitioners' Letter, ``Certain Steel Wheels from the 
People's Republic of China (A-570-082, C-570-083)--Petitioners' 
Request for Clarification of the Scope of the Investigations and 
Submission of Additional Factual Information Relevant to Scope,'' 
dated December 19, 2018 (Petitioners' Scope Comments).
    \9\ Xiamen Sunrise Wheel Group Co., Ltd. (``Xiamen Sunrise''), 
Xiamen Sunrise Wheel Co., Ltd. (``Sunrise Wheel''), Xiamen Sunrise 
Metal Co., Ltd. (``Sunrise Metal''), Sichuan Sunrise Metal Industry 
Co., Ltd. (``Sichuan Sunrise''), and Xiamen Topu Import & Export 
Co., Ltd. (``Topu'') (collectively, ``Xiamen Sunrise'').
    \10\ See Xiamen Sunrise's Letter, ``Certain Steel Wheels from 
the People's Republic of China: Response to Petitioners' Request for 
Clarification of the Scope of the Investigations and Submission of 
Additional Factual Information Relevant to Scope,'' dated February 
4, 2019 (Xiamen Sunrise's Scope Rebuttal); see also Zhejiang Jingu's 
Letter, ``Antidumping and Countervailing Duty Investigations of 
Certain Steel Wheels from the People's Republic of China: Response 
to Petitioners' Request for Clarification of Scope of 
Investigations,'' dated February 4, 2019 (Zhejiang Jingu's Scope 
Rebuttal).
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Scope of the Investigation

    The merchandise covered by this investigation is certain steel 
wheels from China. For a complete description of the scope of this 
investigation, see Appendix I.

Use of Adverse Facts Available (AFA)

    Commerce relied on ``facts otherwise available,'' including adverse 
facts available (AFA), for several findings in the Preliminary 
Determination. For this final determination, we are basing the 
countervailing duty (CVD) rates for Xiamen Sunrise Wheel Group Co., 
Ltd. (Xiamen Sunrise) \11\ and Zhejiang Jingu Company Limited (Zhejiang 
Jingu) \12\ on facts otherwise available, with an adverse inference, 
pursuant to sections 776(a) and (b) of the Act. For a full discussion 
of AFA, see the Issues and Decision Memorandum.\13\
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    \11\ As discussed in the Issues and Decision Memorandum, 
Commerce has assigned Xiamen Sunrise Wheel Group Co., Ltd.'s rate to 
each of the entities named as cross-owned in its affiliation 
questionnaire response: Xiamen Sunrise Wheel Co., Ltd., Xiamen 
Sunrise Metal Co., Ltd., Xiamen Topu Import & Export Co., Ltd. and 
Sichuan Sunrise Metal Industry Co., Ltd.
    \12\ As discussed in the Issues and Decision Memorandum, 
Commerce has assigned Zhejiang Jingu Company Limited's rate to each 
of the entities named as cross-owned in its affiliation 
questionnaire response: Shanghai Yata Industry Company Limited; 
Shangdong Jingu Auto Parts Co., Ltd.; Chengdu Jingu Wheel Co., Ltd.; 
and An'Gang Jingu (Hangzhou) Metal Materials Co., Ltd.
    \13\ See Issues and Decision Memorandum.

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[[Page 11745]]

Affirmative Determination of Critical Circumstances, in Part

    We find that the Government of China bestowed countervailable 
subsides inconsistent with the Subsidies and Countervailing Measures 
Agreement (SCM) to steel wheel producers pursuant to section 
705(a)(2)(A) of the Act. Furthermore, we also find that there have been 
massive imports of the subject merchandise over a relatively short 
period pursuant to section 705(a)(2)(B) of the Act and section 776(a)-
(b) of the Act with respect to Xiamen Sunrise and Zhejiang Jingu. 
Therefore, Commerce has determined that critical circumstances exist 
with respect to Xiamen Sunrise and Zhejiang Jingu, and that critical 
circumstances do not exist with respect to all other producers or 
exporters of steel wheels from China. For further information on 
Commerce's critical circumstances analysis, see the Issues and Decision 
Memorandum.\14\
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    \14\ See Issues and Decision Memorandum at Comment 4.
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All-Others Rate

    In accordance with section 705(c)(5)(A) of the Act, Commerce shall 
determine an estimated all-others rate for companies not individually 
examined. Generally, under section 705(c)(5)(A)(i) of the Act, this 
rate shall be an amount equal to the weighted average of the estimated 
subsidy rates established for those companies individually examined, 
excluding any zero and de minimis rates and any rates based entirely on 
AFA under section 776 of the Act. However, section 705(c)(5)(A)(ii) of 
the Act provides that, where all countervailable subsidy rates 
established for the mandatory respondents are zero, de minimis, or 
based entirely on facts available, Commerce may use ``any reasonable 
method'' for assigning an all-others rate, including ``averaging the 
estimated weighted-average countervailable subsidy rates determined for 
the exporters and producers individually investigated.'' In this 
investigation, all rates for the individually-investigated respondents 
are based entirely on facts available, pursuant to section 776 of the 
Act. Accordingly, we find under ``any reasonable method'' to rely on a 
simple average of the total AFA rates computed for Xiamen Sunrise and 
Zhejiang Jingu as the ``all-others'' rate in this final determination, 
particularly as there is no other information on the record that can be 
used to determine the all-others rate. For further information on the 
all-others rate, see the Issues and Decision Memorandum.\15\
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    \15\ Id. at Comment 3.
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Analysis of Comments Received

    A list of issues which the petitioners raised in its case brief, as 
well as in the petitioners' scope comments,\16\ along with Sunrise's 
and Zhejiang Jingu's rebuttal comments,\17\ to which we responded in 
the Issues and Decision Memorandum, is attached to this notice at 
Appendix II.
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    \16\ See Petitioners' Scope Comments.
    \17\ See Sunrise's Scope Rebuttal; see also Zhejiang Jingu's 
Scope Rebuttal.
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Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established individual estimated countervailable subsidy rates for 
Sunrise Wheel Group Co., Ltd. and its cross-owned affiliates (Xiamen 
Sunrise), and Zhejiang Jingu Company Limited and its cross-owned 
affiliates (Zhejiang Jingu).
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    \18\ Commerce assigned Xiamen Sunrise Wheel Group Co., Ltd.'s 
rate to each of the entities named as cross-owned in its affiliation 
questionnaire response: Xiamen Sunrise Wheel Co., Ltd., Xiamen 
Sunrise Metal Co., Ltd., Xiamen Topu Import & Export Co., Ltd. and 
Sichuan Sunrise Metal Industry Co., Ltd.
    \19\ Commerce assigned Zhejiang Jingu Company Limited's rate to 
each of the entities named as cross-owned in its affiliation 
questionnaire response: Shanghai Yata Industry Company Limited; 
Shangdong Jingu Auto Parts Co., Ltd.; Chengdu Jingu Wheel Co., Ltd.; 
and An'Gang Jingu (Hangzhou) Metal Materials Co., Ltd.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Xiamen Sunrise Wheel Group Co., Ltd\18\.................          457.10
Zhejiang Jingu Company Limited \19\.....................          457.10
All-Others..............................................          457.10
------------------------------------------------------------------------

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with its final determination within five days 
of its public announcement or, if there is no public announcement, 
within five days of the date of publication of this notice in 
accordance with 19 CFR 351.224(b). However, in this investigation, no 
individually examined companies participated in the investigation, and 
Commerce has applied total AFA to all producers and exporters, 
including the China-wide entity, in accordance with section 776 of the 
Act. The applied AFA rates applied to each program are discussed in the 
Issues and Decision Memorandum at Appendix I. Therefore, there are no 
calculations to disclose to interested parties.

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
merchandise under consideration from China that were entered or 
withdrawn from warehouse, for consumption, on or after August 31, 2018, 
the date of publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, we issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after December 29, 2018, but to continue the 
suspension of liquidation of all entries from August 31, 2018, through 
December 28, 2018.
    Further, because Commerce has determined that critical 
circumstances exist with respect to Xiamen Sunrise and Zhejiang Jingu, 
we will instruct CBP to suspend liquidation of entries of subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after June 2, 2018, which is 90 days prior to the date of publication 
of the Preliminary Determination in the Federal Register.
    If the U.S. International Trade Commission (the ITC) issues a final 
affirmative injury determination, we will issue a CVD order and will 
reinstate the suspension of liquidation under section 706(a) of the Act 
and will require a cash deposit of estimated CVDs for such entries of 
subject merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated, and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of countervailable subsidies. Because the final 
determination in this proceeding is affirmative, in accordance with 
section 705(b) of the Act, 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 plastic ribbon from China no later than 45 days after our final 
determination. If the ITC determines

[[Page 11746]]

that material injury or threat of material injury does not exist, the 
proceeding will be terminated, and all cash deposits will be refunded. 
If the ITC determines that such injury does exist, Commerce will issue 
a CVD order directing CBP to assess, upon further instruction by 
Commerce, countervailing duties on all imports of the subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the effective date of the suspension of liquidation, as discussed 
above in the ``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice will serve as a reminder to the parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305(a)(3). Timely written notification of 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 705(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

     Dated: March 25, 2019.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise subject to the investigation is certain on-the-
road steel wheels, discs, and rims for tubeless tires, with a 
nominal rim diameter of 22.5 inches and 24.5 inches, regardless of 
width. Certain on-the-road steel wheels with a nominal wheel 
diameter of 22.5 inches and 24.5 inches are generally for Class 6, 
7, and 8 commercial vehicles (as classified by the Federal Highway 
Administration Gross Vehicle Weight Rating system), including 
tractors, semi-trailers, dump trucks, garbage trucks, concrete 
mixers, and buses, and are the current standard wheel diameters for 
such applications. The standard widths of certain on-the-road steel 
wheels are 7.5 inches, 8.25 inches, and 9.0 inches, but all certain 
on-the-road steel wheels, regardless of width, are covered by the 
scope. While 22.5 inches and 24.5 inches are standard wheel sizes 
used by Class 6, 7, and 8 commercial vehicles, the scope covers 
sizes that may be adopted in the future for Class 6, 7, and 8 
commercial vehicles.
    The scope includes certain on-the-road steel wheels with either 
a ``hub-piloted'' or ``stud-piloted'' mounting configuration, and 
includes rims and discs for such wheels, whether imported as an 
assembly or separately. The scope includes certain on-the-road steel 
wheels, discs, and rims, of carbon and/or alloy steel composition, 
whether cladded or not cladded, whether finished or not finished, 
and whether coated or uncoated. All on-the-road wheels sold in the 
United States are subject to the requirements of the National 
Highway Traffic Safety Administration and bear markings, such as the 
``DOT'' symbol, indicating compliance with applicable motor vehicle 
standards. See 49 CFR 571.120. The scope includes certain on-the-
road steel wheels imported with or without the required markings. 
Certain on-the-road steel wheels imported as an assembly with a tire 
mounted on the wheel and/or with a valve stem attached are included. 
However, if the certain on-the-road steel wheel is imported as an 
assembly with a tire mounted on the wheel and/or with a valve stem 
attached, the certain on- the-road steel wheel is covered by the 
scope, but the tire and/or valve stem is not covered by the scope.
    The scope includes rims and discs that have been further 
processed in a third country, including, but not limited to, the 
welding and painting of rims and discs from China to form a steel 
wheel, or any other processing that would not otherwise remove the 
merchandise from the scope of the proceeding if performed in China.
    Excluded from the scope are:
    (1) Steel wheels for tube-type tires that require a removable 
side ring;
    (2) aluminum wheels;
    (3) wheels where steel represents less than fifty percent of the 
product by weight; and
    (4) steel wheels that do not meet National Highway Traffic 
Safety Administration requirements, other than the rim marking 
requirements found in 49 CFR 571.120S5.2.
    Imports of the subject merchandise are currently classified 
under the following Harmonized Tariff Schedule of the United States 
(HTSUS) subheadings: 8708.70.4530, 8708.70.4560, 8708.70.6030, 
8708.70.6060, 8716.90.5045, and 8716.90.5059. Merchandise meeting 
the scope description may also enter under the following HTSUS 
subheadings: 4011.20.1015, 4011.20.5020, and 8708.99.4850. While 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the subject merchandise is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Affirmative Determination of Critical Circumstances, in Part
VII. Discussion of the Issues
    Comment 1: Whether To Clarify the Scope to Include Steel Wheels 
Processed in A Third Country Using Rims and Discs From China
    Comment 2: Whether To Revise the Total AFA Rate Applied to 
Xiamen Sunrise and Zhejiang Jingu
    Comment 3: Calculation of the ``All-Others'' Rate
    Comment 4: Whether Critical Circumstances Exist.
VIII. Recommendation

Appendix I
[FR Doc. 2019-05956 Filed 3-27-19; 8:45 am]
BILLING CODE 3510-DS-P

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