Certain Steel Wheels 12 to 16.5 Inches in Diameter From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value, and Final Affirmative Determination of Critical Circumstances |
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Jeffrey I. Kessler
Department of Commerce
9 July 2019
[Federal Register Volume 84, Number 131 (Tuesday, July 9, 2019)]
[Notices]
[Pages 32707-32710]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14559]
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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: Final Affirmative Determination of Sales at
Less Than Fair Value, and Final Affirmative Determination of Critical
Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) 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, or are likely to be,
sold in the United States at less-than-fair-value (LTFV).
DATES: Applicable July 9, 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
On April 22, 2019, Commerce published the Preliminary Determination
of sales at LTFV of certain steel wheels from China in the Federal
Register.\1\ A complete summary of the events that occurred since
Commerce published the Preliminary Determination, as well as a full
discussion of the issues raised by the parties for this final
determination, may be found in the Issues and Decision Memorandum.\2\
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\1\ See 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, 84 FR 16643
(April 22, 2019) (Preliminary Determination), and accompanying
Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for Final
Affirmative Determination in the Antidumping Duty 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 (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 https://access.trade.gov,
and ACCESS is available to all parties in the Central Records Unit,
Room B8024 of the main 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 and
electronic versions of the Issues and Decision Memorandum are identical
in content.
Commerce exercised its 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.\3\ Accordingly, the
deadline for the final determination of this investigation is July 1,
2019.
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\3\ See Memorandum to the Record from 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, ``Deadlines
Affected by the Partial Shutdown of the Federal Government,'' dated
January 28, 2019. All deadlines in this segment of the proceeding
have been extended by 40 days.
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Period of Investigation
The period of investigation is January 1, 2018 through June 30,
2018.
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 of this notice.
Scope Comments
During the course of this investigation and the concurrent
countervailing duty (CVD) investigation of certain steel wheels from
China, Commerce received scope comments from interested parties.
Commerce issued a Preliminary Scope Decision Memorandum to address
these comments and set aside a period of time for parties to address
scope issues in scope case and rebuttal briefs.\4\ Commerce has
reviewed the briefs submitted by interested parties, considered the
arguments therein. For a summary of the scope comments and rebuttal
responses submitted to the record for this final determination, along
with the accompanying discussion and analysis of all comments timely
received, see the Final Scope Decision Memorandum.\5\ As a result, we
have made changes to the scope of the investigations, including
additional clarifying language.
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\4\ See Memorandum, ``Certain Steel Wheels 12 to 16.5 Inches in
Diameter from the People's Republic of China: Preliminary Scope
Decision Memorandum,'' dated April 15, 2019.
\5\ See Memorandum, ``Certain Steel Wheels 12 to 16.5 Inches in
Diameter from the People's Republic of China: Final Scope Comments
Decision Memorandum,'' dated July 1, 2019 (Final Scope Decision
Memorandum).
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Final Affirmative Determination of Critical Circumstances
In the Preliminary Determination, Commerce preliminarily
determined, pursuant to section 733(e) of the Tariff Act of 1930, as
amended (the Act), and 19 CFR 351.206, that critical circumstances
exist with respect to imports of certain steel wheels from Changzhou
Chungang Machinery Co., Ltd. (Chungang Machinery), a non-individually
examined company receiving a separate rate, and the China-wide entity.
For this final determination, we continue to find that critical
circumstances exist for Chungang Machinery and the China-
[[Page 32708]]
wide entity, pursuant to section 735(a)(3) of the Act and 19 CFR
351.206. For a full description of the methodology and results of
Commerce's analysis, see the Issues and Decision Memorandum.
Analysis of Comments Received
All issues raised in the case briefs and rebuttal briefs submitted
by interested parties in this proceeding, other than those issues
related to scope, are discussed in the Issues and Decision Memorandum.
A list of the issues raised by parties and responded to by Commerce are
in the Issues and Decision Memorandum, is attached at Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
731 of the Act. Pursuant to section 776(a) and (b) of the Act, we have
relied upon facts otherwise available, with adverse inferences (AFA),
for the China-wide entity, which includes each of the three 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
assigned the highest margin alleged in the Petition of 44.35
percent.\6\ We find a single entity, Chungang Machinery, which was not
selected for individual examination in this investigation, to have
demonstrated eligibility for a separate rate. 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 continue
to find it appropriate to assign the simple average of the Petition
rates (i.e., 38.27 percent) to Chungang Machinery, the separate rate
applicant not individually examined. For a full description of the
methodology underlying Commerce's final determination, see the Issues
and Decision Memorandum.
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\6\ See Commerce's letter, ``Less-Than-Fair-Value Investigation
of Certain Steel Wheels 12 to 16.5 Inches in Diameter from the
People's Republic of China: Respondent Selection,'' dated October
11, 2018.
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Changes Since the Preliminary Determination
Based on our analysis of the comments received, we did not make
changes to the antidumping margin calculations set forth in the
Preliminary Determination.\7\ For a discussion of these comments, see
the Issues and Decision Memorandum.
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\7\ However, we note that the cash deposit rate listed in the
``Final Determination'' section, infra, changed from the Preliminary
Determination, as a result of the changes in the concurrent CVD
investigation.
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China-Wide Entity and Use of Adverse Facts Available
For the reasons explained in the Preliminary Determination, we
continue to find that the use of AFA, pursuant to sections 776(a) and
(b) of the Act, is appropriate and are applying a rate based entirely
on AFA to the China-wide entity.\8\ Commerce did not receive timely
responses to its quantity and value (Q&V) questionnaire, separate rate
applications, or separate rate supplemental questionnaires from certain
exporters and/or producers of subject merchandise that were named in
the petition and to which Commerce issued Q&V questionnaires.\9\
Sunrise, Xingmin, and Zhejiang Jingu, which were selected as a
mandatory respondents in this investigation, each indicated their
intent to withdraw participation from this investigation, and were thus
deemed non-responsive.\10\ As these non-responsive companies in China
did not demonstrate that they are eligible for separate rate status,
Commerce continues to consider them to be a part of the China-wide
entity. Consequently, we continue to find that the China-wide entity
withheld requested information, significantly impeded the proceeding,
and also failed to cooperate to the best of its ability, and thus we
are continuing to base the China-wide entity's rate on AFA.
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\8\ The China-wide entity includes mandatory respondents Xiamen
Sunrise Wheel Group Co., Ltd. (Sunrise), Xingmin Intelligent
Transportation System Co., Ltd. (Xingmin), and Zhejiang Jingu Co.,
Ltd. (Zhejiang Jingu).
\9\ See Preliminary Decision Memorandum at 13.
\10\ Id.
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China-Wide Rate
In selecting the AFA rate for the China-wide entity, Commerce's
practice is to select a rate that is sufficiently adverse to ensure
that the uncooperative party does not obtain a more favorable result by
failing to cooperate than if it had fully cooperated.\11\ Specifically,
it is Commerce's practice to select, as an AFA rate, the higher of: (a)
The highest dumping margin alleged in the petition; or, (b) the highest
calculated dumping margin of any respondent in the investigation.\12\
For the final determination, we are assigning the China-wide entity, as
AFA, the highest petition margin of 44.35 percent. We have corroborated
the dumping margin alleged in the Petition to the extent
practicable.\13\
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\11\ See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value and Postponement of Final Determination:
Purified Carboxymethyl Cellulose from Finland, 69 FR 77216 (December
27, 2004), unchanged in Notice of Final Determination of Sales at
Less Than Fair Value: Purified Carboxymethyl Cellulose from Finland,
70 FR 28279 (May 17, 2005).
\12\ See, e.g., Certain Stilbenic Optical Brightening Agents
from the People's Republic of China: Final Determination of Sales at
Less Than Fair Value, 77 FR 17436, 17438 (March 26, 2012); Final
Determination of Sales at Less Than Fair Value: Cold-Rolled Flat-
Rolled Carbon Quality Steel Products from the People's Republic of
China, 65 FR 34660 (May 31, 2000), and accompanying Issues and
Decision Memorandum.
\13\ See Preliminary Decision Memorandum at 17.
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Combination Rates
In the Initiation Notice, Commerce stated that it would calculate
producer/exporter combination rates for the respondents that are
eligible for a separate rate in this investigation.\14\ For the final
determination, we continue to find that Chungang Machinery is eligible
for a separate rate. Pursuant to section 735(c)(5)(A) of the Act,
Commerce's practice is to assign to separate rate entities that were
not individually examined a rate equal to the weighted average of the
rates calculated for the individually examined respondents, excluding
any rates that are zero, de minimis, or based entirely on facts
available. Because we are determining the China-wide rate (of which the
mandatory respondents are a part) based entirely on AFA, we look to
section 735(c)(5)(B) of the Act for guidance and ``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) to the separate
rate applicant not individually examined.\15\ Thus, consistent with our
normal practice, we have assigned to the non-individually examined
separate-rate company, Chungang Machinery, the simple
[[Page 32709]]
average of the Petition rates, i.e., 38.27 percent.
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\14\ See Certain Steel Wheels 12 to 16.5 Inches in Diameter from
the People's Republic of China: Initiation of Less-Than-Fair-Value
Investigations, 83 FR 45095 (September 5, 2018) (Initiation Notice),
and accompanying Initiation Checklist; see also Preliminary
Determination, 84 FR at 16644.
\15\ See Initiation Notice 83 FR at 45098 and accompanying
Initiation Checklist. Commerce revised the petitioner's calculated
petition margins so that the adjusted petition margins are 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.
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Final Determination
Commerce determines that the following weighted-average dumping
margins exist for the period January 1, 2018 through June 30, 2018:
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Cash deposit
Weighted- rate (adjusted
Exporter/producer average margin for subsidy
(percent) offsets)
(percent)
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Changzhou Chungang Machinery Co., Ltd... 38.27 16.57
China-Wide Entity....................... 44.35 22.65
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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,
Commerce has applied total 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. Therefore, there are no calculations to disclose.
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of certain steel wheels
from China, as described in Appendix I of this notice, from the
separate rate company, Chungang Machinery, and the China-wide entity,
including Sunrise, Xingmin, and Zhejiang Jingu, and, in accordance with
section 735(c)(4) of the Act, because we continue to find that critical
circumstances exist, we will instruct CBP to continue to suspend
liquidation of all appropriate entries of certain steel wheels from
China which were entered, or withdrawn from warehouse, for consumption
on or after January 22, 2019, which is 90 days prior to the date of
publication of the Preliminary Determination in the Federal Register.
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 CVD
proceeding when CVD provisional measures are in effect. Accordingly,
where Commerce makes an affirmative determination for domestic subsidy
pass-through or export subsidies, Commerce offsets the calculated
estimated weighted-average dumping margin by the appropriate rate(s).
We have made an affirmative final determination for export subsidies
for certain respondents and all others in the companion CVD
investigation. However, suspension of liquidation for provisional
measures in the companion CVD case has been discontinued; therefore, we
are not instructing CBP to collect cash deposits based upon the
adjustment for those export subsidies at this time.
Pursuant to section 735(c)(1)(B)(ii) of the Act, Commerce will
instruct CBP to require a cash deposit equal to the weighted-average
amount by which NV exceeds U.S. price as follows: (1) The cash deposit
rate for the exporter/producer combination listed in the table above
will be the rate identified for that combination in the table; (2) for
all combinations of exporters/producers of merchandise under
consideration that have not received their own separate rate above, the
cash-deposit rate will be the cash deposit rate established for the
China-wide entity; and (3) for all non-Chinese exporters of the
merchandise under consideration which have not received their own
separate rate above, the cash-deposit rate will be the cash deposit
rate applicable to the Chinese exporter/producer combination that
supplied that non-Chinese exporter. These suspension of liquidation
instructions will remain in effect until further notice.
International Trade Commission (ITC) Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because the final determination in this
proceeding is affirmative, in accordance with section 735(b)(2) 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, or sales (or the
likelihood of sales) for importation of certain steel wheels from China
no later than 45 days after our final determination. If the ITC
determines 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 an antidumping duty order directing CBP to assess, upon
further instruction by Commerce, antidumping 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.
Administrative Protective Orders
This notice serves as the only reminder to parties subject to an
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely 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 violation subject to sanction.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).
Dated: July 1, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The products subject to these investigations are 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,
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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 imported
as an assembly with a tire mounted on the rim and/or with a valve
stem are included in the scope of these investigations. 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. This exclusion is limited to chrome wheels coated entirely
in chrome and produced through a chromium electroplating process,
and does not extend to wheels that have been finished with other
processes, including, but not limited to, Physical Vapor Deposition
(PVD);
(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 these investigations
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.
Attachment II--List of Topics Discussed in the Issues and Decision
Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Affirmative Determination of Critical Circumstances
VI. Changes Since the Preliminary Determination
VII. Adjustments to Cash Deposit Rates for Export Subsidies
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Discussion of the Issues
Comment 1: Selection of the AFA Rate
Comment 2: Whether Critical Circumstances Exist
X. Recommendation
[FR Doc. 2019-14559 Filed 7-8-19; 8:45 am]
BILLING CODE 3510-DS-P