Certain New Pneumatic Off-the-Road Tires From the People's Republic of China: Preliminary Results of Antidumping Duty Administrative Review; 2013-2014 |
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Ronald K. Lorentzen
Department of Commerce
October 9, 2015
[Federal Register Volume 80, Number 196 (Friday, October 9, 2015)]
[Notices]
[Pages 61166-61170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-25804]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-912]
Certain New Pneumatic Off-the-Road Tires From the People's
Republic of China: Preliminary Results of Antidumping Duty
Administrative Review; 2013-2014
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
[[Page 61167]]
SUMMARY: The Department of Commerce (``Department'') is conducting an
administrative review of the antidumping duty order on certain new
pneumatic off-the-road tires (``OTR tires'') from the People's Republic
of China (``PRC''). The period of review (``POR'') is September 1,
2013, through August 31, 2014. The review covers twelve exporters of
subject merchandise.\1\ The Department preliminarily finds that two
mandatory respondents, Qingdao Qihang Tyre Co., Ltd. (``Qihang'') and
Xuzhou Xugong Tyres Co., Ltd. (``Xugong'') \2\, made sales of subject
merchandise at less than normal value (``NV'') and an additional four
companies, Qingdao Free Trade Zone Full-World International Trading
Co., Ltd. (``Full-World''), Trelleborg Wheel Systems (Xingtai) China,
Co. Ltd. (``TWS Xingtai'') and Weihai Zhongwei Rubber Co., Ltd.
(``Zhongwei''), and Tianjin Leviathan International Trade Co., Ltd.
(``Leviathan''), demonstrated eligibility for separate rates status.
Further, the Department preliminarily determines that two firms listed
in the Initiation Notice had no shipments during the POR and one
company failed to demonstrate eligibility for separate rate status.
Finally, the remaining three firms timely withdrew their requests for
review, and the Department previously rescinded the review for these
companies.\3\ Interested parties are invited to comment on these
preliminary results.
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\1\ See Initiation of Antidumping and Countervailing Duty
Administrative Review, 79 FR 64565 (October 30, 2014) (``Initiation
Notice'').
\2\ As discussed below, we collapsed Xugong with Xuzhou Armour
Rubber Company Ltd. (``Armour'') and Xuzhou Hanbang Tyre Co., Ltd.
(``Hanbang'') as a single entity for the purposes of this review and
refer to the collapsed entity as ``Xugong'', collectively, for the
purposes of these preliminary results.
\3\ See Certain New Pneumatic Off-the-Road Tires from the
People's Republic of China: Partial Rescission of Antidumping Duty
Administrative Review; 2013-2014, 80 FR 9695 (February 24, 2015)
(``Notice of Partial Rescission'').
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DATES: Effective Date: October 9, 2015.
FOR FURTHER INFORMATION CONTACT: Andrew Medley or Mandy Mallott, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
4987 or (202) 482-6430, respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 30, 2014, the Department initiated the sixth
administrative review of the antidumping duty order on OTR tires from
the PRC.\4\ On April 23, 2015, we extended the time limit for the
preliminary results of review by 120 days, pursuant to section
751(a)(3)(A) of the Tariff Act of 1930, as amended (``Act''), to
September 30, 2015.\5\ For a complete description of the events that
followed the initiation of this administrative review, see the
Preliminary Decision Memorandum.\6\
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\4\ See Initiation Notice.
\5\ See Memorandum to Christian Marsh entitled, ``Certain New
Pneumatic Off-the-Road Tires from the People's Republic of China:
Extension of Deadline for Preliminary Results of 2013-2014
Antidumping Duty Administrative Review,'' dated April 23, 2015.
\6\ See Memorandum from Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations, to
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and
Compliance, entitled ``Decision Memorandum for Preliminary Results
of Antidumping Duty Administrative Review: Certain New Pneumatic
Off-the-Road Tires from the People's Republic of China; 2013-2014''
(``Preliminary Decision Memorandum''), dated concurrently with and
hereby adopted by this notice.
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Scope of the Order \7\
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\7\ For a complete description of the scope of the order, see
the Preliminary Decision Memorandum.
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The merchandise covered by this order includes new pneumatic tires
designed for off-the-road and off-highway use, subject to certain
exceptions. The subject merchandise is currently classifiable under
Harmonized Tariff Schedule of the United States (``HTSUS'')
subheadings: 4011.20.10.25, 4011.20.10.35, 4011.20.50.30,
4011.20.50.50, 4011.61.00.00, 4011.62.00.00, 4011.63.00.00,
4011.69.00.00, 4011.92.00.00, 4011.93.40.00, 4011.93.80.00,
4011.94.40.00, and 4011.94.80.00. The HTSUS subheadings are provided
for convenience and customs purposes only; the written product
description of the scope of the order is dispositive.
Preliminary Determination of No Shipments
On November 20, 2014, Trelleborg Wheel Systems Hebei Co. (``TWS
Hebei'') submitted a timely-filed certification indicating that it had
no shipments of subject merchandise to the United States during the
POR.\8\ Also, on December 26, 2014, Zhongce Rubber Group Company
Limited (``Zhongce'') submitted a timely-filed certification indicating
that it had no shipments of subject merchandise to the United States
during the POR.\9\ Consistent with our practice, the Department asked
Customs and Border Protection (``CBP'') to conduct a query on potential
shipments made by TWS Hebei and Zhongce during the POR.\10\ Based on
TWS Hebei and Zhongce's certifications and our analysis of CBP data and
rebuttal information, we preliminarily determine that TWS Hebei and
Zhongce did not have any reviewable transactions during the POR. For
additional information regarding this determination, see the
Preliminary Decision Memorandum. Consistent with our assessment
practice in non-market economy (``NME'') cases, the Department is not
rescinding this review for these companies, but intends to complete the
review and issue appropriate instructions to CBP based on the final
results of the review.\11\
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\8\ See Letter from TWS Hebei, entitled, ``Trelleborg Wheel
Systems Hebei Co. Statement of No Shipments during the POR: New
Pneumatic Off-The-Road Tires from the People's Republic of China,''
dated November 20, 2014.
\9\ See Letter from Zhongce entitled, ``New Pneumatic Off-the
Road Tires from the People's Republic of China (2013-2014): Zhongce
Rubber Group Company Limited No Shipment Letter,'' dated December
26, 2014.
\10\ See CBP Message Number 5141301, dated May 21, 2015.
\11\ See Non-Market Economy Antidumping Proceedings: Assessment
of Antidumping Duties, 76 FR 65694, 65694-95 (October 24, 2011) and
the ``Assessment Rates'' section, below.
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Preliminary Determination of Affiliation and Collapsing
Based on the record evidence for these preliminary results, we find
that Xugong, Armour, and Hanbang are affiliated, pursuant to sections
771(33)(E) of the Act. Additionally, based on the evidence presented in
the questionnaire responses and pursuant to 19 CFR 351.401(f)(1)-(2),
we preliminarily find that these companies should be considered a
single entity for purposes of this review.\12\
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\12\ For further discussion of the Department's affiliation and
collapsing decision, see the Preliminary Decision Memorandum and
Memorandum to Erin Begnal, Director, Office III, entitled, ``2013-
2014 Administrative Review of the Antidumping Duty Order on Certain
New Pneumatic Off-the-Road Tires from the People's Republic of
China: Preliminary Affiliation and Collapsing Memorandum for Xuzhou
Xugong Tyres Co., Ltd.,'' dated concurrently with this notice.
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Separate Rates
The Department preliminarily determines that information placed on
the record by the mandatory respondents Xugong and Qihang, as well as
by the four other separate rate applicants, Full-World, TWS Xingtai,
Zhongwei, and Leviathan, demonstrates that these companies are entitled
to separate rate status. For additional information, see the
Preliminary Decision Memorandum.
Rate for Non-Examined Companies Which Are Eligible for a Separate Rate
The statute and the Department's regulations do not address the
[[Page 61168]]
establishment of a rate to be applied to respondents not selected for
individual examination when the Department limits its examination of
companies subject to the administrative review pursuant to section
777A(c)(2)(B) of the Act. Generally, the Department looks to section
735(c)(5) of the Act, which provides instructions for calculating the
all-others rate in an investigation, for guidance when calculating the
rate for respondents not individually examined in an administrative
review. Section 735(c)(5)(A) of the Act articulates a preference for
not calculating an all-others rate using rates which are zero, de
minimis or based entirely on facts available (``FA''). Accordingly, the
Department's usual practice has been to determine the dumping margin
for companies not individually examined by averaging the weighted-
average dumping margins for the individually examined respondents,
excluding rates that are zero, de minimis, or based entirely on facts
available.\13\ Consistent with this practice, in this review, we
preliminarily calculated weighted-average dumping margins for Qihang
and Xugong that are above de minimis and not based entirely on FA;
therefore, the Department preliminarily assigns to Leviathan, Full-
World, TWS Xingtai, and Zhongwei the average of the weighted-average
margins calculated for Qihang and Xugong as the separate rate for this
review.\14\
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\13\ See Ball Bearings and Parts Thereof From France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews and Rescission of Reviews in Part, 73 FR
52823, 52824 (September 11, 2008), and accompanying Issues and
Decision Memorandum at Comment 16.
\14\ See Memorandum to the File entitled ``2013-2014
Administrative Review of the Antidumping Duty Order on Certain New
Pneumatic Off-the-Road Tires from the People's Republic of China:
Preliminary Results Margin Calculation for Separate Rate
Companies,'' dated concurrently with this notice.
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PRC-Wide Entity
The Department's change in policy regarding conditional review of
the PRC-wide entity applies to this administrative review.\15\ Under
this policy, the PRC-wide entity will not be under review unless a
party specifically requests, or the Department self-initiates, a review
of the entity. Because no party requested a review of the PRC-wide
entity in this review, the entity is not under review and the entity's
rate (i.e., 105.31 percent) is not subject to change.\16\ Aside from
the no shipments and separate rate companies discussed above and the
companies for which the review was previously rescinded (except where
previously determined to be a part of the PRC-wide entity, in the case
of Double Coin Holdings), the Department considers all other companies
for which a review was requested (i.e., Qingdao Haojia (Xinhai) Tyre
Co.), which did not file a separate rate application) to be part of the
PRC-wide entity. For additional information, see the Preliminary
Decision Memorandum.
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\15\ See Antidumping Proceedings: Announcement of Change in
Department Practice for Respondent Selection in Antidumping Duty
Proceedings and Conditional Review of the Nonmarket Economy Entity
in NME Antidumping Duty Proceedings, 78 FR 65963 (November 4, 2013).
\16\ See Certain New Pneumatic Off-the-Road Tires From the
People's Republic of China: Final Results of Antidumping Duty
Administrative Review; 2012-2013, 80 FR 20197 (April 15, 2015); see
also Certain New Pneumatic Off-the-Road Tires From the People's
Republic of China: Amended Final Results of Antidumping Duty
Administrative Review; 2012-2013, 80 FR 26230 (May 7, 2015).
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Application of Facts Available and Use of Adverse Inference
Section 776(a) of the Act provides that the Department shall apply
facts available if (1) necessary information is not on the record, or
(2) an interested party or any other person (A) withholds information
that has been requested, (B) fails to provide information within the
deadlines established, or in the form and manner requested by the
Department, subject to subsections (c)(1) and (e) of section 782 of the
Act, (C) significantly impedes a proceeding, or (D) provides
information that cannot be verified as provided by section 782(i) of
the Act.
Section 776(b) of the Act further provides that the Department may
use an adverse inference in applying facts available when a party has
failed to cooperate by not acting to the best of its ability to comply
with a request for information. Such an adverse inference may include
reliance on information derived from the petition, the final
determination, a previous administrative review, or other information
placed on the record.
Based on findings at verification, pursuant to sections 776(a) and
(b) of the Act, we are applying partial adverse facts available to a
portion of Xugong's U.S. sales. For details regarding this
determinations, see the Preliminary Decision Memorandum.\17\
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\17\ See Memorandum from the Department entitled, ``2013-2014
Administrative Review of the Antiduping Duty Order on Certain New
Pneumatic Off-the-Road Tires from the People's Rpublic of China:
Verification of the Sales and Factors Response of Xuzhou Xugong
Tyres Co., Ltd. And Affiliates,'' dated concurrently with this
notice and Memorandum from the Department entitled, ``2013-2014
Administrative Review of the Antidumping Duty Order on Certain New
Pneumatic Off-the-Road Tires from the People's Republic of China:
Analysis of the Preliminary results Margin Calculation for Xuzhou
Xugong Tyres Co., Ltd.,'' dated concurrently with this notice.
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Methodology
The Department is conducting this review in accordance with section
751(a)(1)(B) and 751(a)(2)(A) of the Act. Export and constructed export
prices were calculated in accordance with sections 772(a) and (b) of
the Act. Because the PRC is a nonmarket economy within the meaning of
section 771(18) of the Act, NV has been calculated in accordance with
section 773(c).
For a full description of the methodology underlying our
conclusions, see the Preliminary Decision Memorandum. The Preliminary
Decision Memorandum is a public document and is on file electronically
via Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (``ACCESS''). ACCESS is available
to registered users at http://access.trade.gov, and is available to all
parties in the Central Records Unit, Room B8024 of the main Department
of Commerce building. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly on the
Internet at http://enforcement.trade.gov/frn/. The signed Preliminary
Decision Memorandum and the electronic versions of the Preliminary
Decision Memorandum are identical in content.
Preliminary Results of Review
The Department preliminarily determines that the following
weighted-average dumping margins exist for the period September 1,
2013, through August 31, 2014:
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Weighted-
average
Exporter dumping
margin
(percent)
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Xuzhou Xugong Tyres Co., Ltd., Armour Rubber Company Ltd., 86.78
or Xuzhou Hanbang Tyre Co., Ltd...........................
Qingdao Qihang Tyre Co., Ltd............................... 99.36
Qingdao Free Trade Zone Full-World International Trading 91.30
Co., Ltd..................................................
Tianjin Leviathan International Trade Co., Ltd............. 91.30
Trelleborg Wheel Systems (Xingtai) China, Co. Ltd.......... 91.30
Weihai Zhongwei Rubber Co., Ltd............................ 91.30
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[[Page 61169]]
Disclosure, Public Comment and Opportunity To Request a Hearing
The Department intends to disclose the calculations used in our
analysis to parties in this review within five days of the date of
publication of this notice in accordance with 19 CFR 351.224(b).
Interested parties may submit case briefs within 30 days after the
date of publication of these preliminary results of review in the
Federal Register.\18\ Rebuttals to case briefs, which must be limited
to issues raised in the case briefs, must be filed within five days
after the time limit for filing case briefs.\19\ Parties who submit
arguments are requested to submit with the argument (a) a statement of
the issue, (b) a brief summary of the argument, and (c) a table of
authorities.\20\ Parties submitting briefs should do so pursuant to the
Department's electronic filing system, ACCESS.\21\
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\18\ See 19 CFR 351.309(c)(1)(ii).
\19\ See 19 CFR 351.309(d)(1)-(2).
\20\ See 19 CFR 351.309(c)(2), (d)(2).
\21\ See 19 CFR 351.303 (for general filing requirements).
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Any interested party may request a hearing within 30 days of
publication of this notice.\22\ Hearing requests should contain the
following information: (1) The party's name, address, and telephone
number; (2) the number of participants; and (3) a list of the issues to
be discussed. Oral presentations will be limited to issues raised in
the briefs. If a request for a hearing is made, parties will be
notified of the time and date for the hearing to be held at the U.S.
Department of Commerce, 14th Street and Constitution Avenue NW.,
Washington, DC 20230.\23\
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\22\ See 19 CFR 351.310(c).
\23\ See 19 CFR 351.310(d).
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The Department intends to issue the final results of this
administrative review, which will include the results of our analysis
of all issues raised in the case briefs, within 120 days of publication
of these preliminary results in the Federal Register, pursuant to
section 751(a)(3)(A) of the Act.
Assessment Rates
Upon issuance of the final results, the Department will determine,
and CBP shall assess, antidumping duties on all appropriate entries
covered by this review.\24\ The Department intends to issue assessment
instructions to CBP 15 days after the publication date of the final
results of this review.
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\24\ See 19 CFR 351.212(b).
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For assessment purposes, the Department applied the assessment rate
calculation method adopted in Antidumping Proceedings: Calculation of
the Weighted-Average Dumping Margin and Assessment Rate in Certain
Antidumping Proceedings: Final Modification.\25\ For any individually
examined respondent whose weighted average dumping margin is above de
minimis (i.e., 0.50 percent) in the final results of this review, the
Department will calculate importer-specific assessment rates on the
basis of the ratio of the total amount of dumping calculated for the
importer's examined sales to the total entered value of sales, in
accordance with 19 CFR 351.212(b)(1). Where an importer- (or customer-)
specific ad valorem rate is greater than de minimis, the Department
will instruct CBP to collect the appropriate duties at the time of
liquidation.\26\ Where either a respondent's weighted average dumping
margin is zero or de minimis, or an importer- (or customer-) specific
ad valorem rate is zero or de minimis, the Department will instruct CBP
to liquidate appropriate entries without regard to antidumping
duties.\27\ For the respondents that were not selected for individual
examination in this administrative review and that qualified for a
separate rate, the assessment rate will be based on the average of the
mandatory respondents.\28\
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\25\ See Antidumping Proceedings: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping
Proceedings: Final Modification, 77 FR 8101 (February 14, 2012) in
the manner described in more detail in the Preliminary Decision
Memorandum.
\26\ See 19 CFR 351.212(b)(1).
\27\ See 19 CFR 351.106(c)(2).
\28\ See Preliminary Decision Memorandum.
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Pursuant to the Department's practice, for entries that were not
reported in the U.S. sales databases submitted by companies
individually examined during the administrative review, the Department
will instruct CBP to liquidate such entries at the PRC-wide rate.
Additionally, if the Department determines that an exporter had no
shipments of the subject merchandise, any suspended entries that
entered under that exporter's case number (i.e., at that exporter's
rate) will be liquidated at the PRC-wide rate.\29\
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\29\ For a full discussion of this practice, see Non-Market
Economy Antidumping Proceedings: Assessment of Antidumping Duties,
76 FR 65694 (October 24, 2011).
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Cash Deposit Requirements
The following cash deposit requirements will be effective upon
publication of the final results of this review for shipments of the
subject merchandise from the PRC entered, or withdrawn from warehouse,
for consumption on or after the publication date, as provided by
sections 751(a)(2)(C) of the Act: (1) For the companies listed above
that have a separate rate, the cash deposit rate will be that
established in the final results of this review (except, if the rate is
zero or de minimis, then zero cash deposit will be required); (2) for
previously investigated or reviewed PRC and non-PRC exporters not
listed above that received a separate rate in a prior segment of this
proceeding, the cash deposit rate will continue to be the existing
exporter-specific rate; (3) for all PRC exporters of subject
merchandise that have not been found to be entitled to a separate rate,
the cash deposit rate will be that for the PRC-wide entity; and (4) for
all non-PRC exporters of subject merchandise which have not received
their own rate, the cash deposit rate will be the rate applicable to
the PRC exporter that supplied that non-PRC exporter. These deposit
requirements, when imposed, shall remain in effect until further
notice.
Notification to Importers
This notice also serves as a preliminary reminder to importers of
their responsibility under 19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of antidumping and/or countervailing duties
prior to liquidation of the relevant entries during the POR. Failure to
comply with this requirement could result in the Department's
presumption that reimbursement of antidumping and/or countervailing
duties occurred and the subsequent assessment of double antidumping
duties.
We are issuing and publishing these results in accordance with
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).
Dated: September 30, 2015.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Partial Rescission of Review and Preliminary Determination of No
Shipments
V. Respondent Selection and Determination Not To Select TWS Xingtai
as a Voluntary Respondent
VI. Affiliation and Collapsing
VII. Discussion of Methodology
A. Non-Market Economy Country
B. Separate Rates
C. Margin for the Companies Individually Examined
D. Margin for the Separate Rate Companies Not Individually
Examined
[[Page 61170]]
E. Margin for Companies Not Receiving a Separate Rate
F. PRC-Wide Entity
G. Application of Facts Available and Use of Adverse Inferences
H. Surrogate Country and Surrogate Value Data
I. Surrogate Country
J. Economic Comparability
K. Significant Producers of Identical or Comparable Merchandise
L. Data Availability
M. Date of Sale
N. Comparisons to Normal Value
O. Export Price and Constructed Export Price
P. Value-Added Tax
Q. Normal Value
R. Factor Evaluations
S. Adjustment Under Section 777A(f) of the Act
VIII. Currency Conversion
IX. Recommendation
[FR Doc. 2015-25804 Filed 10-8-15; 8:45 am]
BILLING CODE 3510-DS-P