53-Foot Domestic Dry Containers From the People's Republic of China: Final Affirmative Countervailing Duty Determination |
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Ronald K. Lorentzen
Department of Commerce
April 17, 2015
[Federal Register Volume 80, Number 74 (Friday, April 17, 2015)]
[Notices]
[Pages 21209-21212]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-08904]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-015]
53-Foot Domestic Dry Containers From the People's Republic of
China: Final Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
countervailable subsidies are being provided to producers and exporters
of 53-foot domestic dry containers (domestic dry containers) from the
People's Republic of China (PRC) as provided in section 705 of the
Tariff Act of 1930, as amended (the Act). For information on the
estimated subsidy rates, see the ``Final Determination'' section of
this notice.
DATES: Effective: April 17, 2015.
FOR FURTHER INFORMATION CONTACT: Yasmin Nair, David Cordell (Singamas),
or Ilissa Shefferman (CIMC), AD/CVD Operations, Office VI, Enforcement
and Compliance, International Trade Administration, U.S. Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230; telephone (202) 482-3813, (202) 482-0408 or (202) 482-4684,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On September 29, 2014, the Department published the preliminary
determination of the countervailing duty (CVD) investigation of
domestic dry containers from the PRC in the Federal Register.\1\ On
September 30,
[[Page 21210]]
2014, China International Marine Containers (Group) Co., Ltd.,
Guangdong Xinhui CIMC Special Transportation Equipment Co., Ltd.,
Nantong CIMC-Special Transportation Equipment Manufacture Co., Ltd.,
Qingdao CIMC Container Manufacture Co., Ltd., Xinhui CIMC Wood Co.,
Ltd., and Xinhui CIMC Container Co., Ltd. (collectively ``CIMC'')
submitted ministerial error comments regarding the Preliminary
Determination. On October 9, 2014, the Department responded to these
comments, stating that the issues raised by CIMC were methodological in
nature and did not constitute ministerial errors within the meaning of
the Department's regulations.\2\
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\1\ See Countervailing Duty Investigation of 53-Foot Domestic
Dry Containers from the People's Republic of China: Preliminary
Determination and Alignment of Final Determination with Final
Antidumping Duty Determination, 79 FR 58320 (September 29, 2014)
(Preliminary Determination) and accompanying Preliminary Decision
Memorandum.
\2\ See Memorandum to Richard Weible, Director, Office VI, AD/
CVD Operations, Enforcement and Compliance, ``Countervailing Duty
Investigation of 53-Foot Domestic Dry Containers from the People's
Republic of China: Allegation of a Ministerial Error in the
Preliminary Determination,'' dated October 9, 2014, at 3.
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On November 6, 2014, the Department issued a post-preliminary
analysis with respect to CIMC, as well as Hui Zhou Pacific Container
Co., Ltd., Qingdao Pacific Container Co., Ltd., and Qidong Singamas
Energy Equipment Co., Ltd. (collectively, ``Singamas'').\3\
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\3\ See Memorandum to Ronald K. Lorentzen, Acting Assistant
Secretary for Enforcement and Compliance, ``Countervailing Duty
(CVD) Investigation of 53-Foot Domestic Dry Containers from the
People's Republic of China (PRC): Post-Preliminary Analysis
Memorandum,'' dated November 6, 2014.
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Between November 12, 2014 and November 19, 2014, the Department
conducted onsite verification of CIMC's, Singamas's and the Government
of the People's Republic of China's (GOC) questionnaire responses.\4\
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\4\ See Memoranda to Richard Weible, Director, Office VI, AD/CVD
Operations, Enforcement and Compliance, entitled ``Countervailing
Duty Investigation of 53-Foot Domestic Dry Containers from the
People's Republic of China (PRC): Verification Report of China
International Marine Containers (Group) Co., Ltd. (CIMC Group) and
its cross-owned affiliates CIMC Containers Holding Co., Ltd. (CIMC
Holding); CIMC Wood Development Co., Ltd. (CIMC Wood); Guangdong
Xinhui CIMC Special Transportation Equipment Co., Ltd. (Xinhui
Special); Qingdao CIMC Containers Manufacture Co., Ltd. (Qingdao
CIMC); Nantong CIMC-Special Transportation Equipment Manufacture
Co., Ltd. (Nantong CIMC); Xinhui CIMC Container Co., Ltd. (Xinhui
Container); and Xinhui CIMC Wood Co., Ltd. (Xinhui Wood)
(collectively, CIMC),'' dated January 14, 2015; ``Countervailing
Duty Investigation of 53-Foot Domestic Dry Containers from the
People's Republic of China (PRC): Verification Report of Hui Zhou
Pacific Container Co., Ltd. (HPCL), Qingdao Pacific Container Co.,
Ltd., (QPCL) and Qidong Singamas Energy Equipment Co., Ltd., (QSCL)
and their holding company, Singamas Container Holdings Limited
(SCHL) (collectively, ``Singamas''),'' dated December 22, 2014; and
``Countervailing Duty Investigation of 53-Foot Domestic Dry
Containers from the People's Republic of China (PRC): Verification
Report of the Government of the People's Republic of China (GOC),''
dated December 22, 2014.
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On February 6, 2015, CIMC, Singamas and its holding company,
Singamas Container Holdings Limited (Singamas Holding); the GOC;
Petitioner; and Crowley Maritime Corporation and Crowley Liner
Services, Inc. and Sea Star Line, LLC (hereafter, collectively,
``Crowley'') filed case briefs. On February 12, 2015, CIMC, Singamas,
Singamas Holding, the GOC, Petitioner, Crowley, and J.B. Hunt
Transport, Inc. (J.B. Hunt) timely filed rebuttal briefs. Pursuant to
the Department's request, Crowley and Petitioner filed additional scope
comments to the record of this proceeding.\5\
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\5\ On April 2, 2015, the Department instructed all interested
parties to this investigation that filed scope comments on the
record of the companion AD investigation to file those comments and
rebuttals on the record of this instant investigation.
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Period of Investigation
The period of investigation (POI) is January 1, 2013, through
December 31, 2013.
Scope Comments
The Department received comments regarding the scope of this
investigation from interested parties. As detailed in the accompanying
Issues and Decision Memorandum,\6\ we have not made any changes to the
scope.
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\6\ See Memorandum from Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations, to
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and
Compliance, ``Countervailing Duty Investigation of 53-Foot Domestic
Dry Containers from the People's Republic of China: Issues &
Decision Memorandum for the Final Determination,'' dated
concurrently with this notice (Issues and Decision Memorandum).
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Scope of the Investigation
The merchandise subject to investigation is closed (i.e., not open
top) van containers exceeding 14.63 meters (48 feet) but generally
measuring 16.154 meters (53 feet) in exterior length, which are
designed for the intermodal transport \7\ of goods other than bulk
liquids within North America primarily by rail or by road vehicle, or
by a combination of rail and road vehicle (domestic containers).
Imports of the subject merchandise are provided for under subheading
8609.00.0000 of the Harmonized Tariff Schedule of the United States
(HTSUS). Imports of the subject merchandise which meet the definition
of and requirements for ``instruments of international traffic''
pursuant to 19 U.S.C. 1322 and 19 CFR 10.41a may be classified under
subheading 9803.00.50, HTSUS. For a complete description of the scope
of the investigation, see Appendix II to this notice.
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\7\ ``Intermodal transport'' refers to a movement of freight
using more than one mode of transportation, most commonly on a
container chassis for on-the-road transportation and on a rail car
for rail transportation.
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum, which is hereby
incorporated in, and adopted by, this notice.\8\ This memorandum also
details the changes we made since the Preliminary Determination to the
subsidy rates calculated for the mandatory respondents and all other
producers/exporters. 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 7046 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/index.html.
The signed Issues and Decision Memorandum and the electronic version of
the Issues and Decision Memorandum are identical in content. A list of
the issues that parties have raised, and to which we responded in the
Issues and Decision Memorandum, is attached to this notice as Appendix
I.
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\8\ See Issues and Decision Memorandum.
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Use of Facts Otherwise Available, Including Adverse Inferences
For purposes of this final determination, the Department relied, in
part, on facts available and, because one or more respondents did not
act to the best of their ability in responding to the Department's
requests for information, drew an adverse inference where appropriate
in selecting from among the facts otherwise available.\9\ For further
information, see the section ``Use of Facts Otherwise Available and
Adverse Inferences,'' in the Issues and Decision Memorandum.
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\9\ See sections 776(a) and (b) of the Act.
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[[Page 21211]]
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, and minor corrections presented at verification, we made
certain changes to CIMC's and Singamas's subsidy rate calculations
since the Preliminary Determination. For a discussion of these changes,
see the Issues and Decision Memorandum and the Final Analysis
Memoranda, all dated concurrently with this notice.\10\
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\10\ See Memorandum to Angelica Townshend, Program Manager, from
Ilissa Kabak Shefferman, International Trade Compliance Analyst,
entitled ``Countervailing Duty Investigation of 53-Foot Domestic Dry
Containers (Domestic Dry Containers) from the People's Republic of
China: Final Determination Calculations for CIMC,'' dated April 10,
2015; and Memorandum to Angelica Townshend, Program Manager, from
David Cordell, International Trade Compliance Analyst, entitled ''
Countervailing Duty Investigation of 53-Foot Domestic Dry Containers
(Domestic Dry Containers) from the People's Republic of China: Final
Determination Calculations for Singamas,'' dated April 10, 2015.
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Final Determination
For each of the subsidy programs found countervailable, we
determine that there is a subsidy, i.e., a financial contribution and
benefit within the meaning of section 771(5) of the Act, and that the
subsidy is specific within the meaning of section 771(5A) of the Act.
For further analysis, see the Issues and Decision Memorandum.
We determine the total estimated net countervailable subsidy rates
to be:
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Subsidy rate
Exporter/producer (%)
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CIMC.................................................... 28.00
Singamas................................................ 17.13
All-Others.............................................. 22.57
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Disclosure
We intend to disclose to parties the calculations performed in this
proceeding within five days of the public announcement of this notice
in accordance with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination, and pursuant to
section 703(d) of the Act, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of all entries of domestic dry
containers from the PRC that were entered or withdrawn from warehouse,
for consumption on or after September 29, 2014, the date of publication
of the Preliminary Determination in the Federal Register.\11\ 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
January 27, 2015, but to continue the suspension of liquidation of all
entries from September 29, 2014, through January 26, 2015.
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\11\ See Preliminary Determination, 79 FR at 58321.
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In accordance with section 705(c)(1)(B)(i) of the Act, we
calculated individual estimated countervailable subsidy rates for the
individually-investigated producers/exporters of the subject
merchandise, CIMC and Singamas. Section 705(c)(5)(A)(i) of the Act
states that for companies not individually investigated, we will
determine an ``all-others'' rate equal to the weighted average
countervailable subsidy rates established for exporters and producers
individually investigated, excluding any zero and de minimis
countervailable rates, and any rates determined entirely under section
776 of the Act. As described above, neither of the mandatory
respondents' subsidy rates was zero or de minimis or was calculated
entirely under section 776 of the Act.
Notwithstanding the language of section 705(c)(5)(A)(i) of the Act,
we have not calculated the ``all-others'' rate by weight averaging the
rates of the two individually investigated respondents, because doing
so risks disclosure of proprietary information. Therefore, for the
``all-others'' rate, we calculated a simple average of the rates of
CIMC and Singamas.
International Trade Commission Notification
In accordance with section 705(d) of the Act, we will notify the
U.S. International Trade Commission (ITC) of our final affirmative CVD
determination. Because the final determination in this proceeding is
affirmative, the ITC will make its final determination, in accordance
with section 705(b)(2)(B) of the Act, as to whether the domestic
industry in the United States is materially injured or threatened with
material injury, or whether the establishment of an industry in the
United States is materially retarded, by reason of imports of domestic
dry containers from the PRC no later than 45 days after our final
determination. If the ITC issues a final affirmative injury
determination, we will issue a CVD order and reinstate the suspension
of liquidation under section 706(a) of the Act, and will require a cash
deposit of estimated CVDs for appropriate entries of merchandise in the
amounts indicated above. If the ITC determines that material injury,
threat of material injury, or material retardation of the establishment
of an industry 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. We are making
available to the ITC all non-privileged and non-proprietary information
related to this investigation. We will allow the ITC access to all
privileged and business proprietary information in our files, provided
the ITC confirms that it will not disclose such information, either
publicly or under an administrative protective order (APO), without the
written consent of the Assistant Secretary for Enforcement and
Compliance.
Notification Regarding Administrative Protective Orders
This notice also serves as a reminder to parties subject to APOs of
their responsibility concerning the disposition of proprietary
information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return or destruction
of APO materials, or conversion to judicial protective order, is hereby
requested. Failure to comply with the regulations and the terms of an
APO is a sanctionable violation.
This determination and notice are issued and published pursuant to
sections 705(d) and 777(i) of the Act.
Dated: April 10, 2015.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Application of the Countervailing Duty Law to Importers From the
PRC
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Comments
CIMC Issues
Comment 1: The Department should correct the Ad Valorem subsidy rate
with respect to loans that CIMC received during the POI from the
China Export-Import Bank
Comment 2: Whether CIMC is a State owned enterprise (SOE) such that
it could benefit from the loans to SOEs program
Comment 3: Whether the CIMC Preferential Lending to SOEs loan
program is specific
Comment 4: Whether the Department should apply adverse facts
available in calculating the benefit CIMC received under the
preferential lending to SOEs program
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Singamas Issues
Comment 5: The sales e value to be used as denominators to calculate
subsidy rates with respect to Singamas
Overlapping Issues
Comment 6: Hot-Rolled Steel Sheet and Plate Less than Adequate
Remuneration (LTAR) and whether the Department should reverse its
findings regarding the hot-rolled LTAR benchmark.
(A) Whether the Department should use domestic Chinese steel
prices on the record to determine whether the GOC provided hot-
rolled steel for LTAR.
(B) Whether the Department properly found that ``authorities''
provided a benefit in the form of the provision of a good for LTAR
(C) Whether the Department properly found ``Specificity''
(D) Benchmarks and calculation of benefit
Comment 7: Export Buyer's Credits Program
Comment 8: Scope Exclusion Request
VIII. Recommendation
Appendix II
Scope of the Investigation
The merchandise subject to investigation is closed (i.e., not
open top) van containers exceeding 14.63 meters (48 feet) but
generally measuring 16.154 meters (53 feet) in exterior length,
which are designed for the intermodal transport \12\ of goods other
than bulk liquids within North America primarily by rail or by road
vehicle, or by a combination of rail and road vehicle (domestic
containers). The merchandise is known in the industry by varying
terms including ``53-foot containers,'' ``53-foot dry containers,''
``53-foot domestic dry containers,'' ``domestic dry containers'' and
``domestic containers.'' These terms all describe the same article
with the same design and performance characteristics.
Notwithstanding the particular terminology used to describe the
merchandise, all merchandise that meets the definition set forth
herein is included within the scope of this investigation.
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\12\ ``Intermodal transport'' refers to a movement of freight
using more than one mode of transportation, most commonly on a
container chassis for on-the-road transportation and on a rail car
for rail transportation.
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Domestic containers generally meet the characteristic for closed
van containers for domestic intermodal service as described in the
American Association of Railroads (AAR) Manual of Standards and
Recommended Practices Intermodal Equipment Manual Closed Van
Containers for Domestic Intermodal Service Specification M 930
Adopted: 1972; Last Revised 2013 (AAR Specifications) for 53-foot
and 53-foot high cube containers. The AAR Specifications generally
define design, performance and testing requirements for closed van
containers, but are not dispositive for purposes of defining subject
merchandise within this scope definition. Containers which may not
fall precisely within the AAR Specifications or any successor
equivalent specifications are included within the scope definition
of the subject merchandise if they have the exterior dimensions
referenced below, are suitable for use in intermodal transportation,
are capable of and suitable for double-stacking \13\ in intermodal
transportation, and otherwise meet the scope definition for the
subject merchandise.
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\13\ ``Double-stacking'' refers to two levels of intermodal
containers on a rail car, one on top of the other.
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Domestic containers have the following actual exterior
dimensions: An exterior length exceeding 14.63 meters (48 feet) but
not exceeding 16.154 meters (53 feet); an exterior width of between
2.438 meters and 2.60 meters (between 8 feet and 8 feet 6\3/8\
inches); and an exterior height of between 2.438 meters and 2.908
meters (between 8 feet and 9 feet 6\1/2\ inches), all subject to
tolerances as allowed by the AAR Specifications. In addition to two
frames (one at either end of the container), the domestic containers
within the scope definition have two stacking frames located
equidistant from each end of the container, as required by the AAR
Specifications. The stacking frames have four upper handling
fittings and four bottom dual aperture handling fittings, placed at
the respective corners of the stacking frames. Domestic containers
also have two forward facing fittings at the front lower corners and
two downward facing fittings at the rear lower corners of the
container to facilitate chassis interface.
All domestic containers as described herein are included within
this scope definition, regardless of whether the merchandise enters
the United States in a final, assembled condition, or as an
unassembled kit or substantially complete domestic container which
requires additional manipulation or processing after entry into the
United States to be made ready for use as a domestic container.
The scope of this investigation excludes the following items:
(1) Refrigerated containers; (2) trailers, where the cargo box and
rear wheeled chassis are of integrated construction, and the cargo
box of the unit may not be separated from the chassis for further
intermodal transport; (3) container chassis, whether or not imported
with domestic containers, but the domestic containers remain subject
merchandise, to the extent they meet the written description of the
scope. Imports of the subject merchandise are provided for under
subheading 8609.00.0000 of the Harmonized Tariff Schedule of the
United States (HTSUS). Imports of the subject merchandise which meet
the definition of and requirements for ``instruments of
international traffic'' pursuant to 19 U.S.C. 1322 and 19 CFR 10.41a
may be classified under subheading 9803.00.50, HTSUS. While HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the subject merchandise as set forth herein
is dispositive.
[FR Doc. 2015-08904 Filed 4-16-15; 8:45 am]
BILLING CODE 3510-DS-P