Certain Steel Wheels From the People's Republic of China: Notice of Covered Merchandise Referral |
|---|
|
James Maeder
Department of Commerce
20 July 2021
[Federal Register Volume 86, Number 136 (Tuesday, July 20, 2021)]
[Notices]
[Pages 38270-38272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15415]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-082, C-570-083]
Certain Steel Wheels From the People's Republic of China: Notice
of Covered Merchandise Referral
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: Pursuant to the Enforce and Protect Act of 2015 (EAPA), the
Department of Commerce (Commerce) received a covered merchandise
referral from U.S. Customs and Border Protection (CBP) in connection
with a CBP EAPA investigation concerning the antidumping duty (AD) and
countervailing duty (CVD) orders on certain steel wheels from the
People's Republic of China (China). In accordance with EAPA, Commerce
intends to determine whether the merchandise subject to the referral is
covered by the scope of these orders and promptly transmit its
determination to CBP. Commerce is providing notice of the referral and
inviting participation from interested parties.
DATES: Applicable July 20, 2021.
FOR FURTHER INFORMATION CONTACT: Elfi Blum or Jacqueline Arrowsmith,
AD/CVD Operations, Office VII, Enforcement & Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-0197 or (202)
482-5255, respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 24, 2016, the Trade Facilitation and Trade Enforcement
Act of 2015 was signed into law, which contains Title IV-Prevention of
Evasion of Antidumping and Countervailing Duty Orders, commonly
referred to as the Enforce and Protect Act of 2015 or EAPA.\1\
Effective August 22, 2016, section 421 of EAPA added section 517 to the
Tariff Act of 1930, as amended (the Act), which establishes a formal
process for CBP to investigate allegations of the evasion of AD and CVD
orders. Section 517(b)(4)(A) of the Act provides a procedure whereby
if, during the course of an EAPA investigation, CBP is unable to
determine whether the merchandise at issue is covered merchandise
within the meaning of section 517(a)(3) of the Act, then it shall refer
the matter to Commerce to make such a determination. Section 517(a)(3)
of the Act defines covered merchandise as merchandise that is subject
to an AD order issued under section 736 of the Act or a CVD order
issued under section 706 of the Act. Section 517(b)(4)(B) of the Act
states that Commerce, after receiving a covered merchandise referral
from CBP, shall determine whether the merchandise is covered
merchandise and promptly transmit its determination to CBP. The Act
does not establish a deadline by which Commerce must issue its
determination.
---------------------------------------------------------------------------
\1\ Title IV--Prevention of Evasion of Antidumping and
Countervailing Duty Orders, Public Law 114-125, 130 Stat. 122, 155
(February 24, 2016).
---------------------------------------------------------------------------
On June 9, 2021, Commerce received a covered merchandise referral
from CBP regarding CBP EAPA Investigation No. 7509,\2\ which concerns
the AD and CVD orders on certain steel wheels from China.\3\ CBP
explained that Accuride Corporation (Accuride) and Maxion Wheels Akron
LLC (Maxion) alleged that Vanguard National Trailer Corporation
(Vanguard) imported steel wheels produced by Chinese manufacturer
Zhejiang Jingu Company Limited (Jingu) that were transshipped through
Jingu's affiliate in Thailand, Asia Wheel Co. Ltd. (Asia Wheel), and
entered into the United States as a product of Thailand to evade the
Orders. CBP's Office of Trade initiated an EAPA investigation based on
the evidence in the allegation submitted by Accuride and Maxion that
reasonably suggested that Vanguard entered steel wheels into the
customs territory of the United States by means of evasion.\4\
---------------------------------------------------------------------------
\2\ See CBP's Letter, ``Covered Merchandise Referral Request for
EAPA Investigation 7509, Imported by Vanguard National Trailer
Corporation: Antidumping and countervailing duty Orders on Certain
Steel Wheels 22.5 and 24.5 Inches in Diameter from the People's
Republic of China,'' dated June 9, 2021 (CBP's EAPA 75009 Letter).
Commerce intends to make available this document and any supporting
documents on Enforcement and Compliance's Antidumping Duty and
Countervailing Duty Centralized Electronic Service System (ACCESS)
with this notice.
\3\ See Certain Steel Wheels from the People's Republic of
China: Antidumping and Countervailing Duty Orders, 84 FR 24098 (May
24, 2019) (Orders).
\4\ See CBP's EAPA 75009 Letter at 2.
---------------------------------------------------------------------------
CBP further informed Commerce on August 18, 2020, that the Trade
Remedy Law Enforcement Directorate of CBP's Office of Trade initiated
an EAPA investigation based on the reasonableness of the evidence in
Accuride and Maxion's allegation that Vanguard imported merchandise
covered by the Orders into the customs territory of the United States
by means of evasion.\5\ In response, Vanguard and Asia Wheel stated
that the steel wheels at issue were not subject to the Orders, because
they were produced in Thailand using rims that did not originate in
China.\6\ Accordingly, CBP has requested that Commerce issue a
determination as to whether steel wheels produced in Thailand by Asia
Wheel from Thai-origin steel wheel rims and Chinese-origin steel wheel
discs, are covered merchandise.
---------------------------------------------------------------------------
\5\ Id. at 1-2.
\6\ Id. at 2.
---------------------------------------------------------------------------
We note that this merchandise is already the subject of a scope
ruling request previously submitted to Commerce by Asia Wheel,\7\ and
is currently under consideration in ongoing scope inquiries of the
Orders.\8\
---------------------------------------------------------------------------
\7\ See Asia Wheel's Letter, ``Certain Steel Wheels from the
People's Republic of China: Request for Scope Ruling for Asia
Wheel's Steel Truck Wheels,'' dated February 11, 2021.
\8\ See Letter from Commerce ``Antidumping and Countervailing
Duty Orders on Certain Steel Wheels from the People's Republic of
China (A-570-082, C-570-083): Initiation of Asia Wheel Scope
Inquiry,'' dated May 12, 2021.
---------------------------------------------------------------------------
Notification to Interested Parties
Commerce is hereby notifying interested parties that it has
received the covered merchandise referral referenced above. As the
covered merchandise referral requests a determination on
[[Page 38271]]
merchandise identified in a request for a scope ruling previously
submitted to Commerce and currently under consideration, we will
address the covered merchandise referral and Asia Wheel's scope ruling
request in the ongoing scope inquires of the Orders. Based on our
determinations in the ongoing scope inquiries of the Orders, we intend
to notify CBP as to whether the merchandise subject to the referral is
covered merchandise within the meaning of section 517(a)(3) of the Act.
Commerce intends to provide interested parties with the opportunity
to participate in this EAPA referral as part of the ongoing scope
inquiries, including through the submission of comments, and, if
appropriate, new factual information and verification. Specifically,
Commerce will notify parties on the segment-specific service list for
these segments of the proceedings of a schedule for comments. In
addition, Commerce may request factual information from any person to
assist in making its determination and may verify submissions of
factual information, if Commerce determines that such verification is
appropriate. C
Parties are also hereby notified that this is the only notice that
Commerce intends to publish in the Federal Register concerning this
covered merchandise referral. Interested parties that wish to
participate in these scope inquiries, and receive notice of the final
determinations, must submit their letters of appearance as discussed
below. Further, any party desiring access to business proprietary
information in these scope inquiries must file an application for
access to business proprietary information under administrative
protective order (APO), as discussed below.
Further, Commerce may consider conducting a separate anti-
circumvention inquiry regarding the merchandise described in CBP's
covered merchandise referral, if parties submit the necessary
information addressing the criteria for an anti-circumvention inquiry,
in accordance with section 781 of the Act. Interested parties are
requested to file such comments and information onto the record of the
ongoing scope inquiries within 30 days of the publication of this
notice in the Federal Register.
Finally, we note that covered merchandise referrals constitute a
new type of segment of a proceeding at Commerce and, therefore,
Commerce intends to develop its practice and procedures in this area as
it gains more experience.
Scope of the Orders
The products covered by the Orders are 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
CFR571.120. The scope includes certain on-the-road steel wheels
imported with or without the required markings. Certain on-the-road
steel wheels imported as an assembly with a tire mounted on the wheel
and/or with a valve stem attached are included. However, if the certain
on-the-road steel wheel is imported as an assembly with a tire mounted
on the wheel and/or with a valve stem attached, the certain on-the-road
steel wheel is covered by the scope, but the tire and/or valve stem is
not covered by the scope.
The scope includes rims and discs that have been further processed
in a third country, including, but not limited to, the welding and
painting of rims and discs from China to form a steel wheel, or any
other processing that would not otherwise remove the merchandise from
the scope of the proceeding if performed in China.
Excluded from the scope are:
(1) Steel wheels for tube-type tires that require a removable
side ring;
(2) aluminum wheels;
(3) wheels where steel represents less than fifty percent of the
product by weight; and
(4) steel wheels that do not meet National Highway Traffic
Safety Administration requirements, other than the rim marking
requirements found in 49 CFR 571.120S5.2.
Imports of the subject merchandise are currently classified under
the following Harmonized Tariff Schedule of the United States (HTSUS)
subheadings: 8708.70.4530, 8708.70.4560, 8708.70.6030, 8708.70.6060,
8716.90.5045, and 8716.90.5059. Merchandise meeting the scope
description may also enter under the following HTSUS subheadings:
4011.20.1015, 4011.20.5020, and 8708.99.4850. While HTSUS subheadings
are provided for convenience and customs purposes, the written
description of the scope of the orders is dispositive.
Filing Requirements
All submissions to Commerce must be filed electronically using
ACCESS.\9\ An electronically filed document must be received
successfully in its entirety by the time and date it is due. Note that
Commerce has temporarily modified certain of its requirements for
serving documents containing business proprietary information.\10\ Each
submission must be placed on the record of each of the scope inquiries,
i.e., for the AD order (A-570-082) and the CVD order (C-570-083).
---------------------------------------------------------------------------
\9\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011), as amended in Enforcement
and Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective 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%20Filing%20Procedures.pdf.
\10\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19, 85 FR 17006 (March 26, 2020); see also Temporary
Rule Modifying AD/CVD Service Requirements Due to COVID19; Extension
of Effective Period, 85 FR 41363 (July 10, 2020).
---------------------------------------------------------------------------
Letters of Appearance and Administrative Protective Order
Interested parties that wish to participate in these scope
inquiries and be added to the public service list must file a letter of
appearance in accordance with 19 CFR 351.103(d)(1), with one exception:
The parties to EAPA investigation 7509 publicly identified
[[Page 38272]]
by CBP in the covered merchandise referral referenced above (Accuride,
Maxion, and Vanguard) \11\ are not required to submit a letter of
appearance, and will be added to the public service list for these
scope inquires by Commerce.
---------------------------------------------------------------------------
\11\ See CBP's EAPA 75009 Letter at 4.
---------------------------------------------------------------------------
Commerce placed an APO on the existing records of the scope
inquiries on May 12, 2021,\12\ and established the APO service lists
for use in these segments. Commerce intends to place the covered
merchandise referral letter on the records of these scope inquiries in
ACCESS within five days of publication of this notice.
---------------------------------------------------------------------------
\12\ See the Administrative Protective Orders, dated May 12,
2021.
---------------------------------------------------------------------------
Interested parties must submit applications for disclosure under
the APO in accordance with the procedures outlined in Commerce's
regulations at 19 CFR 351.305. Those procedures apply to these segments
of the AD and CVD proceedings, with one exception: APO applicants
representing the parties that have been identified by CBP as an
importer in the covered merchandise referral (referenced above) are
exempt from the additional filing requirements for importers pursuant
to 19 CFR 351.305(d).
Dated: July 14, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations.
[FR Doc. 2021-15415 Filed 7-19-21; 8:45 am]
BILLING CODE 3510-DS-P