53-Foot Domestic Dry Containers From the People's Republic of China: Final Determination of Sales at Less Than Fair Value; Final Negative Determination of Critical Circumstances |
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Ronald K. Lorentzen
Department of Commerce
April 17, 2015
[Federal Register Volume 80, Number 74 (Friday, April 17, 2015)]
[Notices]
[Pages 21203-21207]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-08903]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-014]
53-Foot Domestic Dry Containers From the People's Republic of
China: Final Determination of Sales at Less Than Fair Value; Final
Negative Determination of Critical Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
imports of 53-foot domestic dry containers (domestic dry containers)
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 735 of the Tariff Act of 1930, as amended (the
Act). The final weighted-average dumping margins for the investigation
on domestic dry
[[Page 21204]]
containers from the PRC are listed below in the ``Final Determination''
section of this notice.
DATES: Effective: April 17, 2015.
FOR FURTHER INFORMATION CONTACT: Brian Davis (Singamas), John Drury
(CIMC), or Angelica Townshend, 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, (202) 482-0195 or
(202) 482-3019, respectively.
SUPPLEMENTARY INFORMATION:
Background
On November 26, 2014, the Department published the preliminary
determination of the LTFV investigation of domestic dry containers from
the PRC in the Federal Register.\1\ The following events occurred since
then. On December 9, 2014, we received scope comments from interested
parties Crowley Maritime Corporation and Crowley Liner Services, Inc.,
and Sea Star Lines LLC (collectively, ``Crowley''). On December 1,
2014, respondent Singamas \2\ submitted timely ministerial error
allegations with respect to the Department's calculation the weighted-
average dumping margin for Singamas.\3\ Also on December 1, 2014,
Petitioner \4\ submitted ministerial error allegations \5\ with respect
to respondent CIMC.\6\ We received no rebuttal comments regarding these
allegations. On December 31, 2014, we published the amended preliminary
determination in the Federal Register.\7\ Between January 12, 2015, and
January 23, 2015, the Department conducted verification of the
mandatory respondents CIMC and Singamas. The Department issued the
sales and factors-of-production verification reports for both CIMC and
Singamas on February 26, 2015.\8\ On March 10, 2015, Petitioner,
Crowley, CIMC, and Singamas filed case briefs (which included scope
comments). On March 16, 2015, Petitioner, Crowley, CIMC, and Singamas
filed rebuttal briefs (which included scope comments). The Department
did not hold a hearing as all requests for a hearing were withdrawn.
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\1\ See 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, 79 FR 70501 (November 26, 2014)
(Preliminary Determination).
\2\ Singamas consists of Hui Zhou Pacific Container Co., Ltd.,
Qingdao Pacific Container Co., Ltd., Qidong Singamas Energy
Equipment Co., Ltd., and their holding company Singamas Container
Holding Limited.
\3\ See Singamas' Letter to the Department, ``53-Foot Domestic
Dry Containers from the People's Republic of China: Ministerial
Errors in the Preliminary Determination,'' dated December 1, 2014.
\4\ Petitioner is Stoughton Trailers, LLC.
\5\ Petitioner's Letter to the Department, ``53-Foot Domestic
Dry Containers from the People's Republic of China,'' dated December
1, 2014.
\6\ CIMC consists of 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.
\7\ See 53-Foot Domestic Dry Containers from the People's
Republic of China: Amended Preliminary Determination of Sales at
Less-than-Fair-Value, 79 FR 78800 (December 31, 2014) (Amended
Preliminary Determination).
\8\ See Verification of the Sales and Factors of Production
Response of CIMC International Marine Containers (Group) Co., Ltd.
(``CIMC Group''); China International Marine Containers (HK) Ltd.
(``CIMC HK''); Guangdong Xinhui CIMC Special Transportation
Equipment Co., Ltd. (``Xinhui Special''); Qingdao CIMC Containers
Manufacture Co., Ltd. (``Qingdao''); Nantong CIMC-Special
Transportation Equipment Manufacture Co., Ltd. (``Nantong''); and
Xinhui CIMC Container Co., Ltd. (``Xinhui Container'') (collectively
``CIMC'') in the Antidumping Duty Investigation of 53-Foot Domestic
Dry Containers (``domestic dry containers'') from the People's
Republic of China (the ``PRC''), dated February 26, 2015 (CIMC
Verification Report); and Verification of the Sales and Factors of
Production (FOPs) Response of Hui Zhou Pacific Container Co., Ltd.
(HPCL); Qingdao Pacific Container Co., Ltd. (QPCL); Qidong Singamas
Energy Equipment Co., Ltd. (QSCL); Singamas Container Holdings
Limited (SCHL); and Singamas Management Services Limited (SMSL)
(collectively, Singamas) in the Antidumping Duty Investigation of
53-Foot Domestic Dry Containers (domestic dry containers) from the
People's Republic of China (the PRC), dated February 26, 2015
(Singamas Verification Report).
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Period of Investigation
The period of investigation (POI) is October 1, 2013, through March
31, 2014.
Scope Comments
The Department received comments regarding the scope of this
investigation from interested parties. As detailed in the accompanying
Issues and Decision Memorandum,\9\ we have not made any changes to the
scope.\10\
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\9\ See Memorandum to Ronald K. Lorentzen, Acting Assistant
Secretary for Enforcement and Compliance, from Christian Marsh,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, regarding ``53-Foot Domestic Dry Containers from the
People's Republic of China: Issues and Decision Memorandum for the
Final Determination of Sales at Less than Fair Value,'' dated
concurrently with this notice (Issues and Decision Memorandum).
\10\ See the Issues and Decision Memorandum at section, ``Scope
of the Investigation.''
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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 \11\ 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).
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. For a complete description of the scope
of the investigation, see Appendix II to this notice.
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\11\ ``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.
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the Issues and Decision Memorandum
accompanying this notice, which is hereby adopted by this notice. A
list of the issues which the parties raised and to which the Department
responded in the memorandum appears in Appendix I of this notice. 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 http://iaaccess.trade.gov
and is available to all parties in the Central Records Unit, Room 7046
of the main Department of Commerce building. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
at http://enforcement.trade.gov/frn/. The signed and electronic
versions of the memorandum are identical in content.
Changes Since the Amended Preliminary Determination
Based on our review and analysis of the comments received from
parties, and minor corrections presented at verification, we made
certain changes to CIMC's and Singamas's margin calculations since the
Amended Preliminary Determination. For a discussion of these changes,
see the Issues and Decision Memorandum and the Final Analysis
Memoranda, all dated concurrently with this notice.\12\
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\12\ See Final Analysis Memorandum for the PRC-Wide Entity, and
Final Analysis Memorandum for Hui Zhou Pacific Container Co., Ltd.
(HPCL), Qingdao Pacific Container Co., Ltd. (QPCL), Qidong Singamas
Energy Equipment Co., Ltd. (QSCL), and Singamas Management Services
Limited (SMSL) and their holding company Singamas Container Holdings
Limited (collectively, Singamas), dated April 10, 2015.
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[[Page 21205]]
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.\13\ Policy Bulletin 05.1 sets
forth this practice.\14\
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\13\ See 53-Foot Domestic Dry Containers From the People's
Republic of China: Initiation of Antidumping Duty Investigations, 79
FR 28674, 28683 (May 19, 2014) (Initiation Notice).
\14\ See Enforcement and Compliance Policy Bulletin No. 05.1
``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.
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Final Determination
The Department determines that the following estimated weighted-
average dumping margins exist for the period October 1, 2013, through
March 31, 2014:
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\15\ As detailed in the Issues and Decision Memorandum, we
continue to find that CIMC did not demonstrate that it is entitled
to a separate rate, and we consider CIMC to be the PRC-Wide Entity.
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Weighted-
Exporter Producer average dumping
margin (percent)
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Hui Zhou Pacific Container Hui Zhou Pacific 111.22
Co., Ltd./Qingdao Pacific Container Co., Ltd./
Container Co., Ltd./Qidong Qingdao Pacific
Singamas Energy Equipment Container Co., Ltd./
Co., Ltd./Singamas Management Qidong Singamas
Services Limited Energy Equipment Co.,
Ltd.
PRC-Wide Entity \15\.......... ...................... 107.19
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Disclosure
We intend to disclose to parties the calculations performed in this
proceeding within five days of any public announcement of this notice
in accordance with 19 CFR 351.224(b).
Final Negative Determination of Critical Circumstances
No parties made any comments on our critical circumstances analysis
announced in the Preliminary Determination, which is hereby adopted by
this notice. In the Preliminary Determination, the Department stated
that it did not preliminarily find critical circumstances because
Petitioner did not allege that there has been a history of dumping and
material injury pursuant to section 733(e)(1)(A)(i) of the Act and did
not provide any evidence that importers knew or should have known that
there was likely to be material injury by reason of such sales in a
situation where the U.S. industry has not been established.\16\ Thus,
pursuant to 735(a)(3) of the Act, we continue to find that critical
circumstances do not exist with respect to imports of domestic dry
containers from the PRC from Singamas and the company covered by the
PRC-wide rate.
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\16\See Preliminary Determination, Preliminary Determination
Memorandum at 27-28.
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Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all appropriate entries of domestic dry
containers from the PRC, as described in the ``Scope of the
Investigation'' section of this notice and which were entered, or
withdrawn from warehouse, for consumption on or after November 26,
2014, the date of publication of the Preliminary Determination in the
Federal Register.
Pursuant to 19 CFR 351.205(d), we will instruct CBP to require a
cash deposit \17\ for all suspended entries at an ad valorum rate equal
to the weighted-average amount by which normal value exceeds U.S.
price, adjusted where appropriate for export subsidies and estimated
domestic subsidy pass-through,\18\ 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, 107.19 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.
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\17\ 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).
\18\ See sections 772(c)(1)(C) and 777A(f) of the Act,
respectively. Unlike in administrative reviews, the Department
calculates the adjustment for export subsidies in investigations not
in the margin-calculation program, 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.
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Furthermore, as stated above and consistent with our practice, we
will instruct CBP to require a cash deposit equal to the amount by
which the normal value exceeds export price or constructed export
price, less the amount of any countervailing duty (CVD) determined to
constitute an export subsidy. With respect to the PRC-wide entity
(which is based on CIMC's data), export subsidies constitute 11.67
percent of CIMC's final calculated CVD rate in the companion CVD
investigation. Therefore, we will offset the PRC-wide rate of 107.19
percent by the CVD rate attributable to export subsidies (i.e., 11.67
percent) to calculate the final PRC-wide entity cash deposit rate for
this LTFV investigation.\19\ With respect to Singamas, export subsidies
constitute 10.54 percent of Singamas's final calculated CVD rate in the
companion CVD investigation. Therefore, we will offset Singamas's rate
of 111.22 percent by the CVD rate attributable to export subsidies
(i.e., 10.54 percent) to calculate the final Singamas cash deposit rate
for this LTFV investigation.\20\
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\19\ See 53-Foot Domestic Dry Containers from the People's
Republic of China: Final Affirmative Countervailing Duty
Determination and accompanying Issues and Decision Memorandum. The
final determination in this companion CVD proceeding is being
concurrently released on the same day as this final determination.
\20\ Id.
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We are also adjusting the preliminary cash deposit rate for
estimated domestic subsidy pass-through for Singamas (i.e.,
[[Page 21206]]
5.87 percent). However, we are not adjusting the PRC-wide entity final
determination rate for estimated domestic subsidy pass-through because
we have no basis upon which to make such an adjustment.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we notified the
International Trade Commission (ITC) of the final affirmative
determination of sales at less than fair value. Because the final
determination in this proceeding is affirmative, the ITC will make its
final determination, in accordance with section 735(b)(2) of the Act,
as to whether the domestic industry in the United States is materially
injured, threatened with material injury, or the establishment of an
industry in the United States is materially retarded by reason of
imports of domestic dry containers from the PRC no later than 45 days
after our final determination. If the ITC determines that material
injury, threat of material injury, or material retardation, does not
exist, this proceeding will be terminated and all securities posted
will be refunded or canceled. If the ITC determines that such injury or
material retardation does exist, then the Department will issue an
antidumping duty order directing CBP to assess, upon further
instruction by the Department, 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. We are making available to the ITC all non-privileged and
non-proprietary information related to this investigation. We will
allow the ITC access to all privileged and business proprietary
information in our files, provided the ITC confirms that it will not
disclose such information, either publicly or under an administrative
protective order (APO), without the written consent of the Assistant
Secretary for Enforcement and Compliance.
Notification Regarding Administrative Protective Orders
This notice also serves as a reminder to parties subject to
administrative protective orders (APOs) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
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
sanctionable violation.
This determination and notice are issued and published pursuant to
sections 735(d) and 777(i)(1) of the Act.
Dated: April 10, 2015.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. List of Issues
III. Background
IV. Scope of the Investigation
V. Period of Investigation
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Changes Since the Amended Preliminary Determination
VIII. Discussion of Interested Party Comments
A. General Issues
Comment 1: Scope Exclusion Request
Comment 2: Surrogate Value for Ocean Freight
Comment 3: Surrogate Value for ``Wood Flooring--Other''
Comment 4: Whether to Deduct Return Transportation Costs for Wide-
Top Pick (WTP) Lift-Off Bars from U.S. Net Price
B. CIMC-Specific Issues
Comment 5: Proper Valuation of Ocean Freight and Brokerage and
Handling Expenses
Comment 6: Alleged Unreported U.S. Brokerage and Handling Expenses
Comment 7: Capping of Ocean Freight Revenue by Ocean Freight Expense
Comment 8: Surrogate Value for Corner Castings
Comment 9: Incorrect Calculation of CIMC's ``Wood Flooring--Other''
Surrogate Value
Comment 10: Separate Rate Determination
C. Singamas-Specific Issues
Comment 11: Surrogate Value for Hinges
Comment 12: Steel Coil Factor-of-Production (FOP) Should Be
Increased to Account for Yield Loss
VII. Conclusion
Appendix II
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 \21\ 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.
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\21\ ``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.
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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 \22\ in intermodal
transportation, and otherwise meet the scope definition for the
subject merchandise.
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\22\ ``Double-stacking'' refers to two levels of intermodal
containers on a rail car, one on top of the other.
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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
[[Page 21207]]
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 CFR10.41a 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.
[FR Doc. 2015-08903 Filed 4-16-15; 8:45 am]
BILLING CODE 3510-DS-P