|
Paul Piquado
Department of Commerce
November 26, 2014
[Federal Register Volume 79, Number 228 (Wednesday, November 26, 2014)]
[Notices]
[Pages 70501-70504]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-28054]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-014]
53-Foot Domestic Dry Containers From the People's Republic of
China: Preliminary Determination of Sales at Less Than Fair Value;
Preliminary Negative Determination of Critical Circumstances; and
Postponement of Final Determination and Extension of Provisional
Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') preliminarily
determines that 53-foot domestic dry containers (``domestic dry
containers'')
[[Page 70502]]
from the People's Republic of China (``PRC'') are being, or are likely
to be, sold in the United States at less than fair value (``LTFV''), as
provided in section 733(b) of the Tariff Act of 1930, as amended (``the
Act''). The period of investigation (``POI'') is October 1, 2013,
through March 31, 2014. The estimated weighted-average dumping margins
of sales at LTFV are shown in the ``Preliminary Determination'' section
of this notice. Interested parties are invited to comment on this
preliminary determination.
DATES: Effective Date: November 26, 2014.
FOR FURTHER INFORMATION CONTACT: Brian Davis or John Drury, AD/CVD
Operations, Office VI, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
7924 or (202) 482-0195, respectively.
SUPPLEMENTARY INFORMATION:
Background
The Department published the notice of initiation of this
investigation on May 19, 2014.\1\ Pursuant to section 733(c)(1)(A) of
the Act, on August 28, 2014, the Department postponed this preliminary
LTFV determination by a period of 50 days.\2\
---------------------------------------------------------------------------
\1\ See 53-Foot Domestic Dry Containers From the People's
Republic of China: Initiation of Antidumping Duty Investigation, 79
FR 28674 (May 19, 2014) (``Initiation Notice'').
\2\ See 53-Foot Domestic Dry Containers From the People's
Republic of China: Postponement of Preliminary Determination of
Antidumping Duty Investigation, 79 FR 51305 (August 28, 2014).
---------------------------------------------------------------------------
Scope of the Investigation
The merchandise subject to investigation is closed (i.e., not open
top) van containers exceeding 14.63 meters (48 feet) but generally
measuring 16.154 meters (53 feet) in exterior length, which are
designed for the intermodal transport \3\ of goods other than bulk
liquids within North America primarily by rail or by road vehicle, or
by a combination of rail and road vehicle (domestic containers). The
merchandise is known in the industry by varying terms including ``53-
foot containers,'' ``53-foot dry containers,'' ``53-foot domestic dry
containers,'' ``domestic dry containers'' and ``domestic containers.''
Imports of the subject merchandise are provided for under subheading
8609.00.0000 of the Harmonized Tariff Schedule of the United States
(HTSUS). Imports of the subject merchandise which meet the definition
of and requirements for ``instruments of international traffic''
pursuant to 19 U.S.C. 1322 and 19 CFR 10.41a may be classified under
subheading 9803.00.50, HTSUS.
---------------------------------------------------------------------------
\3\ ``Intermodal transport'' refers to a movement of freight
using more than one mode of transportation, most commonly on a
container chassis for on-the-road transportation and on a rail car
for rail transportation.
---------------------------------------------------------------------------
While HTSUS subheadings are provided for convenience and customs
purposes, the written description of the subject merchandise is
dispositive. For a complete description of the scope of the
investigation, see Appendix I to this notice.
Various parties submitted comments on the scope. For a discussion
of these comments, see the Memorandum from Christian Marsh, Deputy
Assistant Secretary for Antidumping and Countervailing Duty Operations
to Paul Piquado, Assistant Secretary for Enforcement and Compliance,
``Antidumping Duty Investigation of 53-Foot Domestic Dry Containers
from the People's Republic of China: Decision Memorandum for the
Preliminary Determination,'' dated concurrently with, and hereby
adopted by, this notice (``Preliminary Decision Memorandum'').\4\ The
Preliminary Decision Memorandum is a public document and is made
available to the public via Enforcement and Compliance's Antidumping
and Countervailing Duty Centralized Electronic Service System
(``ACCESS''). ACCESS is available to registered users at http://access.trade.gov, and is available to all parties in the Department's
Central Records Unit, located in room 7046 of the main Department of
Commerce building. In addition, a complete version of the Preliminary
Decision Memorandum can be accessed directly on the Internet at http://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum
and the electronic version of the Preliminary Decision Memorandum are
identical in content.
---------------------------------------------------------------------------
\4\ For a list of topics discussed in the Preliminary Decision
Memorandum, see Appendix II to this notice.
---------------------------------------------------------------------------
Methodology
The Department conducted this investigation in accordance with
section 731 of the Act. We calculated export prices in accordance with
section 772 of the Act. Because the PRC is a non-market economy within
the meaning of section 771(18) of the Act, we calculated normal value
(``NV'') in accordance with section 773(c) of the Act.
For a full description of the methodology underlying our
conclusions, see the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice, the Department stated that it would
calculate combination rates for the respondents that are eligible for a
separate rate in this investigation. Policy Bulletin 05.1 describes
this practice.\5\
---------------------------------------------------------------------------
\5\ 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,'' (April 5, 2005) (``Policy Bulletin 05.1''), available
on the Department's Web site at http://enforcement.trade.gov/policy/bull05-1.pdf.
---------------------------------------------------------------------------
Preliminary Determination
The Department preliminarily determines that the following
weighted-average dumping margins exist for the exporter-producer
combinations listed below during the period October 1, 2013, through
March 31, 2014:
------------------------------------------------------------------------
Weighted-average
Exporter Producer dumping margin
(percent)
------------------------------------------------------------------------
Hui Zhou Pacific Container Hui Zhou Pacific 153.24
Co., Ltd./Qingdao Pacific Container Co., Ltd./
Container Co., Ltd./Qidong Qingdao Pacific
Singamas Energy Equipment Container Co., Ltd./
Co., Ltd./Singamas Qidong Singamas
Management Services Limited. Energy Equipment
Co., Ltd.
------------------------------------------------------------------------
PRC-Wide Entity 24.27
------------------------------------------------------------------------
As detailed in the Preliminary Decision Memorandum, China International
Marine Containers (Group) Co., Ltd., China International Marine
Containers (HK) Ltd., Xinhui CIMC Special Transportation Equipment
Co., Ltd., Nantong CIMC-Special Transportation Equipment Manufacture
Co., Ltd., and Qingdao CIMC Container Manufacture Co., Ltd.
(collectively, ``CIMC''), a mandatory respondent in this
investigation, did not demonstrate that it is entitled to a separate
rate and we consider CIMC to be the PRC-Wide Entity.
[[Page 70503]]
Preliminary Negative Determination of Critical Circumstances
On October 30, 2014, Stoughton Trailers LLC (``Petitioner''), filed
a timely critical circumstances allegation, pursuant to section
733(e)(1) of the Act and 19 CFR 351.206(c)(1), alleging that critical
circumstances exist with respect to imports of domestic dry containers
from the PRC.\6\ We preliminarily determine that Petitioner's critical
circumstances allegation is deficient because it does not contain
information regarding how ``the importer knew or should have known that
the exporter was selling the merchandise at less than fair value and
that there was likely to be material injury by reason of such sales.''
\7\ Therefore, we preliminarily determine that critical circumstances
do not exist for Singamas and the PRC-wide entity. A discussion of our
determination can be found in the Preliminary Decision Memorandum at
the section, ``Critical Circumstances.''
---------------------------------------------------------------------------
\6\ See Letter from Petitioner to the Secretary of Commerce,
``53-Foot Domestic Dry Containers from the People's Republic of
China,'' dated October 30, 2014.
\7\ See section 733(e)(1)(A)(ii) of the Act.
---------------------------------------------------------------------------
Disclosure and Public Comment
The Department intends to disclose calculations performed for this
preliminary determination to parties in this proceeding within five
days of the date of publication of this notice in accordance with 19
CFR 351.224(b). Case briefs or other written comments may be submitted
to the Assistant Secretary for Enforcement and Compliance, through
Enforcement and Compliance's electronic records system, ACCESS, no
later than seven days after the date on which the final verification
report is issued in this proceeding.\8\ Rebuttal briefs, limited to
issues raised in case briefs, may be submitted through ACCESS no later
than five days after the deadline for case briefs.\9\ Pursuant to 19
CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or
rebuttal briefs in this proceeding 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.
---------------------------------------------------------------------------
\8\ See 19 CFR 351.309(c).
\9\ See 19 CFR 351.309(d).
---------------------------------------------------------------------------
Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, or to participate in a hearing if one is requested,
must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, filed
electronically through ACCESS. Electronically filed case briefs/written
comments and hearing requests must be received successfully in their
entirety by the Department's electronic records system, ACCESS, by 5:00
p.m. Eastern Standard Time. Hearing requests must be received by the
Department within 30 days after the date of publication of this notice
\10\ and should contain the party's name, address, and telephone
number, the number of participants, and a list of the issues to be
presented at the hearing. If a request for a hearing is made, the
Department intends to hold the hearing at the U.S. Department of
Commerce, 14th Street and Constitution Avenue NW., Washington, DC
20230, at a time and location to be determined. Parties should confirm
by telephone the date, time, and location of the hearing two days
before the scheduled date.
---------------------------------------------------------------------------
\10\ See 19 CFR 351.310(c).
---------------------------------------------------------------------------
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, the Department
will instruct U.S. Customs and Border Protection (``CBP'') to suspend
liquidation of all entries of domestic dry containers from the PRC, as
described in the ``Scope of the Investigation'' section above, entered,
or withdrawn from warehouse, for consumption on or after the date of
publication of this notice in the Federal Register.
Pursuant to 19 CFR 351.205(d), the Department will instruct CBP to
require a cash deposit \11\ equal to the weighted-average amount by
which NV exceeds U.S. price, adjusted where appropriate for export
subsidies \12\ and estimated domestic subsidy pass-through,\13\ 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 PRC
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 PRC-wide entity, 24.27
percent; and (3) for all non-PRC 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
PRC exporter/producer combination that supplied that non-PRC exporter.
These suspension of liquidation and cash deposit instructions will
remain in effect until further notice.
---------------------------------------------------------------------------
\11\ See Modification of Regulations Regarding the Practice of
Accepting Bonds During the Provisional Measures Period in
Antidumping and Countervailing Duty Investigations, 76 FR 61042
(October 3, 2011).
\12\ See section 772(c)(1)(C) of the Act. Unlike in
administrative reviews, the Department calculates the adjustment for
export subsidies in investigations not in the margin calculation,
but in the cash deposit instructions issued to CBP. See Notice of
Final Determination of Sales at Less Than Fair Value, and Negative
Determination of Critical Circumstances: Certain Lined Paper
Products from India, 71 FR 45012 (August 8, 2006), and accompanying
Issues and Decision Memorandum at Comment 1.
\13\ For further discussion, see the Preliminary Decision
Memorandum at the section, ``Section 777A(f) of the Act.''
---------------------------------------------------------------------------
Furthermore, as stated above and consistent with our practice, we
will instruct CBP to require a cash deposit equal to the amount by
which NV exceeds the export price or constructed export price, less the
amount of the countervailing duty (``CVD'') rate determined to
constitute an export subsidy. In this LTFV investigation, with regard
to the PRC-wide entity rate (which is based on CIMC's data),\14\ export
subsidies constitute 4.75 percent \15\ of CIMC's preliminarily
calculated CVD rate in the companion CVD investigation. Therefore, we
will offset the PRC-wide rate of 24.27 percent by the CVD rate
attributable to export subsidies (i.e., 4.75 percent) to calculate the
preliminary PRC-wide entity cash deposit rate for this LTFV
investigation.
---------------------------------------------------------------------------
\14\ For further discussion, see the Preliminary Decision
Memorandum at the section, ``The PRC-wide Entity.''
\15\ The following subsidy program in the preliminary
determination of the companion CVD investigation is an export
subsidy: Export Seller's Credits from China Ex-Im Bank (4.75 percent
for CIMC). See Countervailing Duty Investigation of 53-Foot Domestic
Dry Containers From the People's Republic of China: Preliminary
Determination and Alignment of Final Determination With Final
Antidumping Duty Determination, 79 FR 58320 (September 29, 2014) and
accompanying Preliminary Decision Memorandum at 21-22.
---------------------------------------------------------------------------
We are adjusting the preliminary cash deposit rate for estimated
domestic subsidy pass-through for Singamas (i.e., 6.39 percent).
However, we are not adjusting the PRC-wide entity rate for estimated
domestic subsidy pass-through because we have no basis upon which to
make such an adjustment.\16\
---------------------------------------------------------------------------
\16\ See Preliminary Decision Memorandum at the section,
``Section 777A(f) of the Act.''
---------------------------------------------------------------------------
Postponement of Final Determination and Extension of Provisional
Measures
Pursuant to requests from the mandatory respondents Singamas \17\
and
[[Page 70504]]
CIMC \18\ and Petitioner,\19\ we are postponing the final
determination. Further, Singamas and CIMC requested to extend the
application of the provisional measures prescribed under section 733(d)
of the Act and 19 CFR 351.210(e)(2), from a four-month period to a six-
month period. The suspension of liquidation described above will be
extended accordingly.\20\ Accordingly, we intend to make our final
determination no later than 135 days after the date of publication of
this preliminary determination, pursuant to section 735(a)(2) of the
Act.\21\
---------------------------------------------------------------------------
\17\ See Letter from Singamas to the Secretary of Commerce
regarding ``53-Foot Domestic Dry Containers from the People's
Republic of China; Request to Extend Final Determination,'' dated
November 14, 2014.
\18\ See Letter from CIMC to the Secretary of Commerce regarding
``Antidumping Duty Investigation of 53-Foot Domestic Dry Containers
from the People's Republic of China: Extension of Final
Determination'' dated November 17, 2014.
\19\ See Letter from Petitioner to the Secretary of Commerce
regarding ``53-Foot Domestic Dry Containers from the People's
Republic of China,'' dated November 14, 2014.
\20\ Id.
\21\ See also 19 CFR 351.210(b)(2) and (e).
---------------------------------------------------------------------------
International Trade Commission (``ITC'') Notification
In accordance with section 733(f) of the Act, we notified the ITC
of our preliminary affirmative determination of sales at LTFV. Because
the preliminary determination in this investigation is affirmative,
section 735(b)(2) of the Act requires the ITC to make its final
determination as to whether the domestic industry in the United States
is materially injured, threatened with material injury, or is
materially retarded, by reason of imports of domestic dry containers
from the PRC, or sales (or the likelihood of sales) for importation, of
the merchandise under consideration before the later of 120 days after
the date of this preliminary determination or 45 days after our final
determination. Because we are postponing the deadline for our final
determination to 135 days from the date of publication of this
preliminary determination the ITC will make its final determination no
later than 45 days after our final determination.
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: November 19, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The merchandise subject to investigation is closed (i.e., not
open top) van containers exceeding 14.63 meters (48 feet) but
generally measuring 16.154 meters (53 feet) in exterior length,
which are designed for the intermodal transport \22\ of goods other
than bulk liquids within North America primarily by rail or by road
vehicle, or by a combination of rail and road vehicle (domestic
containers). The merchandise is known in the industry by varying
terms including ``53-foot containers,'' ``53-foot dry containers,''
``53-foot domestic dry containers,'' ``domestic dry containers'' and
``domestic containers.'' These terms all describe the same article
with the same design and performance characteristics.
Notwithstanding the particular terminology used to describe the
merchandise, all merchandise that meets the definition set forth
herein is included within the scope of this investigation.
---------------------------------------------------------------------------
\22\ ``Intermodal transport'' refers to a movement of freight
using more than one mode of transportation, most commonly on a
container chassis for on-the-road transportation and on a rail car
for rail transportation.
---------------------------------------------------------------------------
Domestic containers generally meet the characteristic for closed
van containers for domestic intermodal service as described in the
American Association of Railroads (AAR) Manual of Standards and
Recommended Practices Intermodal Equipment Manual Closed Van
Containers for Domestic Intermodal Service Specification M 930
Adopted: 1972; Last Revised 2013 (AAR Specifications) for 53-foot
and 53-foot high cube containers. The AAR Specifications generally
define design, performance and testing requirements for closed van
containers, but are not dispositive for purposes of defining subject
merchandise within this scope definition. Containers which may not
fall precisely within the AAR Specifications or any successor
equivalent specifications are included within the scope definition
of the subject merchandise if they have the exterior dimensions
referenced below, are suitable for use in intermodal transportation,
are capable of and suitable for double-stacking \23\ in intermodal
transportation, and otherwise meet the scope definition for the
subject merchandise.
---------------------------------------------------------------------------
\23\ ``Double-stacking'' refers to two levels of intermodal
containers on a rail car, one on top of the other.
---------------------------------------------------------------------------
Domestic containers have the following actual exterior
dimensions: An exterior length exceeding 14.63 meters (48 feet) but
not exceeding 16.154 meters (53 feet); an exterior width of between
2.438 meters and 2.60 meters (between 8 feet and 8 feet 6\3/8\
inches); and an exterior height of between 2.438 meters and 2.908
meters (between 8 feet and 9 feet 6\1/2\ inches), all subject to
tolerances as allowed by the AAR Specifications. In addition to two
frames (one at either end of the container), the domestic containers
within the scope definition have two stacking frames located
equidistant from each end of the container, as required by the AAR
Specifications. The stacking frames have four upper handling
fittings and four bottom dual aperture handling fittings, placed at
the respective corners of the stacking frames. Domestic containers
also have two forward facing fittings at the front lower corners and
two downward facing fittings at the rear lower corners of the
container to facilitate chassis interface.
All domestic containers as described herein are included within
this scope definition, regardless of whether the merchandise enters
the United States in a final, assembled condition, or as an
unassembled kit or substantially complete domestic container which
requires additional manipulation or processing after entry into the
United States to be made ready for use as a domestic container.
The scope of this investigation excludes the following items:
(1) Refrigerated containers; (2) trailers, where the cargo box and
rear wheeled chassis are of integrated construction, and the cargo
box of the unit may not be separated from the chassis for further
intermodal transport; (3) container chassis, whether or not imported
with domestic containers, but the domestic containers remain subject
merchandise, to the extent they meet the written description of the
scope.
Imports of the subject merchandise are provided for under
subheading 8609.00.0000 of the Harmonized Tariff Schedule of the
United States (HTSUS). Imports of the subject merchandise which meet
the definition of and requirements for ``instruments of
international traffic'' pursuant to 19 U.S.C. 1322 and 19 CFR 10.41a
may be classified under subheading 9803.00.50, HTSUS. While HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the subject merchandise as set forth herein
is dispositive.
Appendix II--List of Topics Discussed in the Preliminary Decision
Memorandum
SUMMARY
BACKGROUND
PERIOD OF INVESTIGATION
POSTPONEMENT OF PRELIMINARY DETERMINATION
SCOPE OF THE INVESTIGATION
SCOPE COMMENTS
DISCUSSION OF THE METHODOLOGY
Non-market Economy Country
Surrogate Country
Surrogate Value Comments
Combination Rates
The PRC-wide Entity
Single Entity Treatment
Date of Sale
Fair Value Comparisons
Export Price
Value-Added Tax
Normal Value
Factor Valuation Methodology
Comparisons to Normal Value
Currency Conversion
ALLEGATION OF CRITICAL CIRCUMSTANCES
VERIFICATION
SECTION 777A(F) OF THE ACT
ITC NOTIFICATION
CONCLUSION
[FR Doc. 2014-28054 Filed 11-25-14; 8:45 am]
BILLING CODE 3510-DS-P