Certain Steel Wheels 12 to 16.5 Inches in Diameter From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, and Preliminary Affirmative Determination of Critical Circumstances |
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Jeffrey I. Kessler
Department of Commerce
22 April 2019
[Federal Register Volume 84, Number 77 (Monday, April 22, 2019)]
[Notices]
[Pages 16643-16646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08005]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-090]
Certain Steel Wheels 12 to 16.5 Inches in Diameter From the
People's Republic of China: Preliminary Affirmative Determination of
Sales at Less Than Fair Value, and Preliminary Affirmative
Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that certain steel wheels 12 to 16.5 inches in diameter (certain steel
wheels) from the People's Republic of China (China) are being sold in
the United States at less than fair value (LTFV). The period of
investigation (POI) is January 1, 2018, through June 30, 2018.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable April 22, 2019.
FOR FURTHER INFORMATION CONTACT: Kyle Clahane or Charles Doss, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-5449 or (202) 482-4474,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). We published
the notice of initiation of this investigation on September 5, 2018.\1\
We exercised our discretion to toll all deadlines affected by the
partial federal government closure from December 22, 2018, through the
resumption of operations on January 29, 2019.\2\ On February 6, 2019,
we postponed the preliminary determination of this investigation and
the revised deadline is now April 15, 2019.\3\ For a complete
description of the events that followed the initiation of this
investigation, see the Preliminary Decision Memorandum.\4\ 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, Room B8024 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 Certain Steel Wheels 12 to 16.5 Inches in Diameter from
the People's Republic of China: Initiation of Less-Than-Fair-Value
Investigation, 83 FR 45095 (September 5, 2018) (Initiation Notice)
and accompanying Initiation Checklist.
\2\ See memorandum, ``Deadlines Affected by the Partial Shutdown
of the Federal Government,'' dated January 28, 2019.
\3\ See Certain Steel Wheels 12 to 16.5 Inches in Diameter from
the People's Republic of China: Postponement of Preliminary
Determination in the Less-Than-Fair-Value Investigation, 84 FR 2169
(February 6, 2019).
\4\ See memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less Than Fair Value Investigation of Certain
Steel Wheels 12 to 16.5 Inches in Diameter from the People's
Republic of China,'' dated concurrently with, and hereby adopted by,
this notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are certain steel wheels
12 to 16.5 inches in diameter from China. For a complete description of
the scope of this investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product
[[Page 16644]]
coverage (i.e., scope).\6\ Certain interested parties commented on the
scope of the investigation as it appeared in the Initiation Notice. For
a summary of the product coverage comments and rebuttal responses
submitted to the record for this investigation, and accompanying
discussion and analysis of all comments timely received, see the
Preliminary Scope Decision Memorandum.\7\ We are preliminarily
modifying the scope language as it appeared in the Initiation Notice.
See the revised scope in Appendix I to this notice.
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See Initiation Notice.
\7\ See memorandum, ``Certain Steel Wheels 12 to 16.5 Inches in
Diameter from the People's Republic of China: Preliminary Scope
Decision Memorandum,'' dated concurrently with, and hereby adopted
by, this notice (Preliminary Scope Decision Memorandum).
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Methodology
We are conducting this investigation in accordance with section 731
of the Act. Pursuant to section 776(a) and (b) of the Act, we have
preliminarily relied upon facts otherwise available, with adverse
inferences (AFA), for the China-wide entity, including each of the
companies selected for individual examination: Xiamen Sunrise Wheel
Group Co., Ltd. (Sunrise), Xingmin Intelligent Transportation System
Co., Ltd. (Xingmin), and Zhejiang Jingu Co., Ltd. (Zhejiang Jingu). As
AFA, we have assigned the highest margin alleged in the Petition of
44.35 percent.\8\
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\8\ See the petitioner's letter, ``Petitions for the Imposition
of Antidumping Duties and Countervailing Duties on Imports of
Certain Steel Wheels 12-16.5 Inches in Diameter from the People's
Republic of China,'' dated August 8, 2018 (the Petition). We
adjusted the Petition rate when we initiated this investigation. See
Initiation Checklist at Attachment V.
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We preliminarily find a single entity, Changzhou Chungang Machinery
Co., Ltd. (Chungang Machinery), which was not selected for individual
examination in this investigation, to have demonstrated eligibity for a
separate rate. However, because none of the mandatory respondents are
receiving a separate rate and we are determining the China-wide rate
based on AFA, we look to section 735(c)(5)(B) of the Act for guidance
and are, consistent with that provision, using ``any reasonable
method'' to determine the rate for exporters that are not being
individually examined and found to be entitled to a separate rate. As
``any reasonable method,'' we find it appropriate to assign the simple
average of the Petition rates (i.e., 38.27 percent) \9\ to Chungang
Machinery, the separate rate applicant not individually examined.\10\
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\9\ Id. The invidivdual Petition rates, as recalculated in the
Initiation Checklist, were 44.35, 37.24, 43.12, 42.28, 37.32, 30.48,
36.11, and 35.27 percent. The simple average of these margins is
38.27 percent.
\10\ See, e.g., Carton-Closing Staples From the People's
Republic of China: Final Affirmative Determination of Sales at Less
Than Fair Value, 83 FR 13236 (March 28, 2018) and accompanying
Issues and Decision Memorandum at Comment 3 (citing, e.g.,
Galvanized Steel Wire from the People's Republic of China: Final
Determination of Sales at Less Than Fair Value, 77 FR 17430 (March
26, 2012)).
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For a full description of the methodology underlying Commerce's
preliminary determination, see the Preliminary Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances
In accordance with section 733(e) of the Act and 19 CFR 351.206,
Commerce preliminarily determines that critical circumstances exist
with respect to imports of certain steel wheels from China for Chungang
Machinery, the company eligible for a separate rate, and the China-wide
entity. For a full description of the methodology and results of
Commerce's critical circumstances analysis, see the Preliminary
Decision Memorandum.
Combination Rates
In the Initiation Notice,\11\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\12\
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\11\ See Initiation Notice at 83 FR 45099.
\12\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' dated April 5, 2005 (Policy Bulletin 05.1), available
on Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist.
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Estimated Cash deposit rate
weighted-average (adjusted for
Producer Exporter dumping margin subsidy offsets)
(percent) (percent)
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Changzhou Chungang Machinery Co., Ltd.. Changzhou Chungang Machinery 38.27 37.65
Co., Ltd.
China-Wide Entity...................... ............................... 44.35 43.73
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of subject merchandise as described in the scope of the investigation
section entered, or withdrawn from warehouse, for consumption on or
after the date of publication of this notice in the Federal Register,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted-average amount by which normal value
exceeds U.S. price, as indicated in the chart above as follows: (1) For
the producer/exporter combinations listed in the table above, the cash
deposit rate is equal to the estimated weighted-average dumping margin
listed for that combination in the table; (2) for all combinations of
Chinese producers/exporters of merchandise under consideration that
have not established eligibility for their own separate rates, the cash
deposit rate will be equal to the estimated weighted-average dumping
margin established for the China-wide entity; and (3) for all third-
country exporters of merchandise under consideration not listed in the
table above, the cash deposit rate is the cash deposit rate applicable
to the Chinese producer/exporter combination (or the China-wide entity)
that supplied that third-country exporter.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered, or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of subject
merchandise from the following
[[Page 16645]]
producer/exporter combinations: Chungang Machinery, the company
eligible for a separate rate, and the China-wide entity. In accordance
with section 733(e)(2)(A) of the Act, the suspension of liquidation
shall apply to all unliquidated entries of merchandise from the
producer/exporter combinations identified in this paragraph that were
entered, or withdrawn from warehouse, for consumption on or after the
date which is 90 days before the publication of this notice.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted
rates may be found in the ``Preliminary Determination'' section's chart
of estimated weighted-average dumping margins above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a preliminary 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, because Commerce
preliminarily applied AFA to the mandatory respondents in this
investigation in accordance with section 776 of the Act, and the
applied AFA rate is based solely on the Petition, and the rate assigned
to the separate rate company was a simple average of the Petition
rates, there are no calculations to disclose.
Verification
Because the mandatory respondents in this investigation did not
provide information requested by Commerce and Commerce preliminarily
determines each of the mandatory respondents to have been
uncooperative, verification will not be conducted.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than 30
days after the date of publication of the preliminary determination,
unless the Secretary alters the time limit. Rebuttal briefs, limited to
issues raised in case briefs, may be submitted no later than five days
after the deadline date for case briefs.\13\ Pursuant to 19 CFR
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal
briefs in this investigation 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.
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\13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
Final Determination
Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that
Commerce will issue the final determination within 75 days after the
date of its preliminary determination. Accordingly, Commerce will make
its final determination no later than 75 days after the signature date
of this preliminary determination.
International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of the subject merchandise are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: April 15, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation is certain on-the-road steel
wheels, discs, and rims for tubeless tires with a nominal wheel
diameter of 12 inches to 16.5 inches, regardless of width. Certain
on-the-road steel wheels with a nominal wheel diameter of 12 inches
to 16.5 inches within the scope are generally for road and highway
trailers and other towable equipment, including, inter alia, utility
trailers, cargo trailers, horse trailers, boat trailers,
recreational trailers, and towable mobile homes. The standard widths
of certain on-the-road steel wheels are 4 inches, 4.5 inches, 5
inches, 5.5 inches, 6 inches, and 6.5 inches, but all certain on-
the-road steel wheels, regardless of width, are covered by the
scope.
The scope includes rims and discs for certain on-the-road steel
wheels, whether imported as an assembly, unassembled, or separately.
The scope includes certain on-the-road steel wheels regardless of
steel composition, whether cladded or not cladded, whether finished
or not finished, and whether coated or uncoated. The scope also
includes certain on-the-road steel wheels with discs in either a
``hub-piloted'' or ``stud-piloted'' mounting configuration, though
the stud-piloted configuration is most common in the size range
covered.
All on-the-road wheels sold in the United States must meet
Standard 110 or 120 of the National Highway Traffic Safety
Administration's (NHTSA) Federal Motor Vehicle Safety Standards,
which requires a rim marking, such as the ``DOT'' symbol, indicating
compliance with applicable motor vehicle standards. See 49 CFR
571.110 and 571.120. The scope includes certain on-the-road steel
wheels imported with or without NHTSA's 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 or rims
[[Page 16646]]
imported as an assembly with a tire mounted on the rim and/or with a
valve stem are included in the scope of this investigation. However,
if the steel wheels or rims are imported as an assembly with a tire
mounted on the wheel or rim and/or with a valve stem attached, the
tire and/or valve stem is not covered by the scope.
The scope includes rims, discs, and wheels that have been
further processed in a third country, including, but not limited to,
the painting of wheels from China and 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 investigations if performed in China.
Excluded from this scope are the following: (1) Steel wheels for
use with tube-type tires; such tires use multi piece rims, which are
two-piece and three-piece assemblies and require the use of an inner
tube; (2) aluminum wheels; (3) certain on-the-road steel wheels that
are coated entirely in chrome; (4) steel wheels that do not meet
Standard 110 or 120 of the NHTSA's requirements other than the rim
marking requirements found in 49 CFR 571.110S4.4.2 and 571.120S5.2;
(5) steel wheels that meet the following specifications: steel
wheels with a nominal wheel diameter ranging from 15 inches to 16. 5
inches, with a rim width of 8 inches or greater, and a wheel
backspacing ranging from 3. 75 inches to 5.5 inches; and (6) steel
wheels with wire spokes.
Certain on-the-road steel wheels subject to this investigation
are properly classifiable under the following category of the
Harmonized Tariff Schedule of the United States (HTSUS):
8716.90.5035 which covers the exact product covered by the scope
whether entered as an assembled wheel or in components. Certain on-
the-road steel wheels entered with a tire mounted on them may be
entered under HTSUS 8716.90.5059 (Trailers and semi-trailers; other
vehicles, not mechanically propelled, parts, wheels, other, wheels
with other tires) (a category that will be broader than what is
covered by the scope). While the 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 Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Preliminary Affirmative Determination of Critical Circumstances
VII. Discussion of the Methodology
A. Non-Market Economy Country
B. Separate Rates
i. Absence of De Jure control
ii. Absence of De Facto control
iii. Separate Rate Margin
C. China-Wide Entity
D. Application of Facts Available and Adverse Inferences
i. Application of Facts Available
ii. Application of AFA
iii. Selection and Corroboration of the AFA Rate
VIII. Adjustment Under Section 777(A)(f) of the Act
IX. Adjustments To Cash Deposit Rates For Export Subsidies
X. Verification
XI. Conclusion
[FR Doc. 2019-08005 Filed 4-19-19; 8:45 am]
BILLING CODE 3510-DS-P