Certain Steel Wheels From the People's Republic: Initiation of Countervailing Duty Investigation |
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Gary Taverman
Department of Commerce
24 April 2018
[Federal Register Volume 83, Number 79 (Tuesday, April 24, 2018)]
[Notices]
[Pages 17794-17798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08469]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-083]
Certain Steel Wheels From the People's Republic: Initiation of
Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable April 16, 2018.
FOR FURTHER INFORMATION CONTACT: Eli Lovely at (202) 482-1593 or Maisha
Cryor at (202) 482-5831, AD/CVD Operations, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petition
On March 27, 2018, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) Petition concerning imports of
certain steel wheels (steel wheels) from the People's Republic of China
(China), filed in proper form on behalf of Accuride Corporation
(Accuride) and Maxion Wheels Akron LLC (collectively, the
petitioners).\1\ The CVD Petition was accompanied by an antidumping
duty (AD) Petition concerning imports of steel wheels China. The
petitioners are domestic producers of steel wheels.\2\
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\1\ See the petitioners' letter, ``Petitions for the Imposition
of Antidumping Duties and Countervailing Duties on Imports of
Certain Steel Wheels From the People's Republic of China,'' dated
March 27, 2018 (the Petition).
\2\ Id. at Volume I of the Petition at I-2.
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On March 30, 2018, Commerce requested supplemental information
pertaining to certain aspects of the Petitions. The petitioners filed
additional information on April 3, 2018.\3\ On April 9 and 13, 2018,
Commerce requested the petitioners to clarity the scope of the
Petition.\4\ The petitioners filed responses to Commerce's scope
request on April 13, 2018.\5\
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\3\ See the petitioners' letters, ``Certain Steel Wheels from
the People's Republic of China (C-570-083): Petitioners' Response to
the Department's March 30, 2018 Supplemental Questionnaire Regarding
the Countervailing Duty Petition, dated March 30, 2018); and
``Petitioners' Response to the Department of Commerce's March 30,
2018 General Issues Questionnaire Regarding the Petitions for the
Imposition of Antidumping and Countervailing Duties on Imports of
Certain Steel Wheels from the People's Republic of China,'' dated
April 3, 2018 (General Issues Supplement).
\4\ See Commerce's Memorandum to the File, ``Phone Call with
Counsel to Petitioners,'' dated April 9, 2018 and Commerce's
Memorandum to the File, ``Phone Call with Counsel to Petitioners,''
dated April 13, 2018.
\5\ See the petitioners' Letter, ``Petitioners' Scope
Clarification Regarding the Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Steel
Wheels from the People's Republic of China,'' dated April 13, 2018.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioners allege that the Government of China
(GOC) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of steel wheels in
China and imports of such products are materially injuring, or
threatening material injury to, the domestic steel wheels industry in
the United States. Consistent with section 702(b)(1) of the Act and 19
CFR 351.202(b), for those alleged programs on which we are initiating a
CVD investigation, the Petition is accompanied by information
reasonably available to the petitioners supporting their allegations.
Commerce finds that the petitioners filed the Petition on behalf of
the domestic industry because the petitioners are interested parties as
defined in section 771(9)(C) of the Act. Commerce also finds that the
petitioners demonstrated sufficient industry
[[Page 17795]]
support necessary for the initiation of the requested CVD
investigation.\6\
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\6\ See ``Determination of Industry Support for the Petition''
section, infra.
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Period of Investigation
Because the Petition was filed on March 27, 2018, the period of
investigation is January 1, 2017, through December 31, 2017.
Scope of the Investigation
The product covered by these investigations is steel wheels from
China. For a full description of the scope of these investigations, see
the Appendix to this notice.
Scope Comments
During our review of the Petition, Commerce issued questions to,
and received responses from, the petitioners pertaining to the proposed
scope to ensure that the scope language in the Petition is an accurate
reflection of the products for which the domestic industry is seeking
relief.\7\ As a result of these exchanges, the scope of the Petition
was modified to clarify the description of merchandise covered by the
Petition. The description of the merchandise covered by this
initiation, as described in the Appendix to this notice, reflects these
clarifications.
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\7\ See General Issues Supplemental Questionnaire, at 3-5.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (scope).\8\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information,\9\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit such comments by 5:00 p.m. Eastern Time
(ET) on May 6, 2018, which is 20 calendar days from the signature date
of this notice. Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on May 16, 2018, which is 10
calendar days from the initial comments deadline.\10\
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\8\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\9\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\10\ See 19 CFR 351.303(b).
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Commerce requests that any factual information parties consider
relevant to the scope of the investigation be submitted during this
period. However, if a party subsequently finds that additional factual
information pertaining to the scope of the investigations may be
relevant, the party may contact Commerce and request permission to
submit the additional information. All such submissions must be filed
on the records of each of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\11\ An electronically
filed document must be received successfully in its entirety by the
time and date it is due. Documents exempted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230, and stamped with the date and time of receipt by the applicable
deadlines.
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\11\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011). See also Enforcement and
Compliance: Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, which went into effect on August 5, 2011. Information
on help using ACCESS can be found at https://access.trade.gov/
help.aspx, and a handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified representatives of the GOC of the receipt of the Petition and
provided them the opportunity for consultations with respect to the CVD
Petition.\12\ The GOC did not request consultations.
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\12\ See Letter from Robert Bolling, Program Manager, Office IV,
to the Embassy of China ``Countervailing Duty Petition on Certain
Steel Wheels from China,'' dated April 2, 2018.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\13\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\14\
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\13\ See Section 771(10) of the Act.
\14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in a
petition).
With regard to the domestic like product, the petitioners do not
offer a definition of the domestic like product distinct from the scope
of the Petition. Based on our analysis of the information submitted on
the record, we have determined that steel wheels, as defined in the
scope, constitute a single domestic like product, and we have
[[Page 17796]]
analyzed industry support in terms of that domestic like product.\15\
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\15\ For a discussion of the domestic like product analysis in
this case, see Countervailing Duty Investigation Initiation
Checklist: Certain Steel Wheels from the People's Republic of China
(Initiation Checklist), at Attachment II, Analysis of Industry
Support for the Antidumping and Countervailing Duty Petitions
Covering Certain Steel Wheels from the People's Republic of China
(Attachment II). This checklist is dated concurrently with this
notice and on file electronically via ACCESS. Access to documents
filed via ACCESS is also available in the Central Records Unit, Room
B8024 of the main Department of Commerce building.
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In determining whether the petitioners have standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition and the General Issues Supplement with
reference to the domestic like product as defined in the ``Scope of the
Investigation,'' in the Appendix to this notice. The petitioners
provided their 2017 production of the domestic like product.\16\ The
petitioners state that they are the only known producers of steel
wheels in the United States; therefore, the Petition is supported by
100 percent of the U.S. industry.\17\
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\16\ See Volume I of the Petition, at I-36.
\17\ Id. at I-7 and Exhibit I-1; see also General Issues
Supplement, at SGQ-11--SGQ-12 and Exhibit SGQ-10.
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Our review of the data provided in the Petition, General Issues
Supplement, and other information readily available to Commerce
indicates that the petitioners have established industry support for
the Petition.\18\ First, the Petition established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\19\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
702(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\20\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 702(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition account for more than
50 percent of the production of the domestic like product produced by
that portion of the industry expressing support for, or opposition to,
the Petition.\21\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.
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\18\ See Initiation Checklist, at Attachment II.
\19\ See section 702(c)(4)(D) of the Act; see also Initiation
Checklist, at Attachment II.
\20\ See Initiation Checklist, at Attachment II.
\21\ Id.
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Commerce finds that the petitioners filed the Petition on behalf of
the domestic industry because they are interested parties as defined in
section 771(9)(C) of the Act, and they have demonstrated sufficient
industry support with respect to the CVD investigation that they are
requesting that Commerce initiate.\22\
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\22\ Id.
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Injury Test
Because China is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from China materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioners allege that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, the petitioners
allege that subject imports exceed the negligibility threshold provided
for under section 771(24)(A) of the Act.\23\
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\23\ See Volume I of the Petition, at I-20--I-22 and Exhibit I-
15.
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The petitioners contend that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports,
reduced market share and increasing market share of subject imports,
underselling and price depression or suppression, lost sales and
revenues, and adverse effects on petitioners' operating indicators and
financial results.\24\ We have assessed the allegations and supporting
evidence regarding material injury, threat of material injury, and
causation, and we have determined that these allegations are properly
supported by adequate evidence, and meet the statutory requirements for
initiation.\25\
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\24\ Id. at I-22 through I-37, Exhibits I-10 through I-16, and
Exhibit I-25.
\25\ See Initiation Checklist at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering Certain Steel
Wheels from the People's Republic of China.
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Initiation of CVD Investigation
Based on the examination of the Petition, we find that the Petition
meet the requirements of section 702 of the Act. Therefore, we are
initiating a CVD investigation to determine whether imports of steel
wheels from China benefit from countervailable subsidies conferred by
the GOC. In accordance with section 703(b)(1) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determinations no later than 65 days after the date of this initiation.
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on all of the
subsidy programs alleged in the petition, with certain limitations. For
a full discussion of the basis for our decision to initiate on each
program, see China CVD Initiation Checklist. A public version of the
initiation checklist for this investigation is available on ACCESS.
Respondent Selection
The petitioners named 32 companies in China \26\ as producers/
exporters of steel wheels. Commerce intends to follow its standard
practice in CVD investigations and calculate company-specific subsidy
rates in these investigations. In the event Commerce determines that
the number of companies is large and it cannot individually examine
each company based upon Commerce's resources, where appropriate,
Commerce intends to select mandatory respondents based on U.S. Customs
and Border Protection (CBP) data for U.S. imports of steel wheels from
China during the POI under the appropriate Harmonized Tariff Schedule
of the United States numbers listed in the ``Scope of the
Investigation,'' in the Appendix.
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\26\ See General Issues Supplemental Questionnaire Response at
Exhibit SGQ-1.
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Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). Instructions for filing such
applications may be found on the Commerce's website at http://enforcement.trade.gov/apo.
Comments must be filed electronically using ACCESS. An
electronically filed document must be received successfully, in its
entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above.
We intend to finalize our decisions regarding respondent selection
within 20 days of publication of this notice.
[[Page 17797]]
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), copies of the public versions of the Petition have been
provided to the GOC via ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the Petition to each
exporter named in the Petitions, as provided under 19 CFR
351.203(c)(2).
ITC Notification
We will notify the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of steel wheels from China are materially
injuring, or threatening material injury to, a U.S. industry.\27\ A
negative ITC determination will result in the investigation being
terminated.\28\ Otherwise, this investigation will proceed according to
statutory and regulatory time limits.
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\27\ See section 703(a)(2) of the Act.
\28\ See section 703(a)(1) of the Act.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). 19 CFR 351.301(b) requires any
party, when submitting factual information, to specify under which
subsection of 19 CFR 351.102(b)(21) the information is being submitted
\29\ and, if the information is submitted to rebut, clarify, or correct
factual information already on the record, to provide an explanation
identifying the information already on the record that the factual
information seeks to rebut, clarify, or correct.\30\ Time limits for
the submission of factual information are addressed in 19 CFR 351.301,
which provides specific time limits based on the type of factual
information being submitted. Interested parties should review the
regulations prior to submitting factual information in these
investigations.
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\29\ See 19 CFR 351.301(b).
\30\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351.301. For submissions that are
due from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, we will inform parties in the letter or memorandum setting
forth the deadline (including a specified time) by which extension
requests must be filed to be considered timely. An extension request
must be made in a separate, stand-alone submission; under limited
circumstances we will grant untimely-filed requests for the extension
of time limits. Parties should review Extension of Time Limits; Final
Rule, 78 FR 57790 (September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to
submitting factual information in these investigations.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\31\
Parties must use the certification formats provided in 19 CFR
351.303(g).\32\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\31\ See section 782(b) of the Act.
\32\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (``Final Rule''); see also
frequently asked questions regarding the Final Rule, available at
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce
published Antidumping and Countervailing Duty Proceedings: Documents
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008).
Parties wishing to participate in this investigation should ensure that
they meet the requirements of these procedures (e.g., the filing of
letters of appearance as discussed at 19 CFR 351.103(d)).
This notice is issued and published pursuant to sections 702 and
777(i) of the Act and 19 CFR 351.203(c).
Dated: April 16, 2018.
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
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.
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
[[Page 17798]]
(4) steel wheels that do not meet National Highway Traffic
Safety Administration requirements, other than the rim marking
requirements found in 49 CFR Sec. 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.
[FR Doc. 2018-08469 Filed 4-23-18; 8:45 am]
BILLING CODE 3510-DS-P