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Certain Steel Wheels 12 to 16.5 Inches in Diameter From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination


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Certain Steel Wheels 12 to 16.5 Inches in Diameter From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination

Gary Taverman
Department of Commerce
25 February 2019 

[Federal Register Volume 84, Number 37 (Monday, February 25, 2019)]
[Notices]
[Pages 5989-5991]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03131]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-091]


Certain Steel Wheels 12 to 16.5 Inches in Diameter From the 
People's Republic of China: Preliminary Affirmative Countervailing Duty 
Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that producers and/or exporters subject to this investigation received 
countervailable subsidies. Interested parties are invited to comment on 
this preliminary determination.

DATES: Applicable February 25, 2019.

FOR FURTHER INFORMATION CONTACT: Emily Halle or Keith Haynes, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-0176 or (202) 482-5139, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on September 
5, 2018.\1\ On October 15, 2018, Commerce postponed the preliminary 
determination of this investigation, and reset the deadline to January 
7, 2019.\2\ Subsequently, Commerce exercised its discretion to toll all 
deadlines affected by the partial federal government closure from 
December 22, 2018, through the resumption of operations on January 29, 
2019.\3\ The revised deadline for the preliminary determination 
decision is now February 14, 2019.
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    \1\ See Certain Steel Wheels 12 to 16.5 Inches in Diameter from 
the People's Republic of China: Initiation of Countervailing Duty 
Investigation, 83 FR 45100 (September 5, 2018) (Initiation Notice).
    \2\ See Certain Steel Wheels 12 to 16.5 Inches in Diameter from 
the People's Republic of China: Postponement of Preliminary 
Determination in the Countervailing Duty Investigation, 83 FR 51926 
(October 15, 2018).
    \3\ See Memorandum to the Record from Gary Taverman, Deputy 
Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance, ``Deadlines 
Affected by the Partial Shutdown of the Federal Government,'' dated 
January 28, 2019. All deadlines in this segment of the proceeding 
have been extended by 40 days.
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\4\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. 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 at http://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Preliminary Decision Memorandum are identical in content.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Countervailing Duty Investigation of Certain 
Steel Wheels 12 to 16.5 Inches in Diameter from the People's 
Republic of China,'' dated concurrently with, and hereby adopted by, 
this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are certain steel wheels 
from China. For a complete description of the scope of this 
investigation, see Appendix I.
Scope Comments
    In accordance with the Preamble to Commerce's regulations, the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product

[[Page 5990]]

coverage (i.e., scope).\5\ Certain interested parties commented on the 
scope of the investigation as it appeared in the Initiation Notice. 
Commerce intends to issue its preliminary decision regarding comments 
concerning the scope of the antidumping duty (AD) and countervailing 
duty (CVD) investigations in the preliminary determination of the 
companion AD investigation.
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    \5\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also Initiation 
Notice.
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Period of Investigation
    The period of investigation is January 1, 2017, through December 
31, 2017.
Methodology
    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that 
confers a benefit on the recipient, and that the subsidy is 
specific.\6\ For a full description of the methodology underlying our 
preliminary conclusions, see the Preliminary Decision Memorandum.
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    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    In making these findings, Commerce relied, in part, on facts 
available. Further, because one or more respondents did not act to the 
best of their ability to respond to Commerce's requests for 
information, an adverse inference was drawn, where appropriate, in 
selecting from among the facts otherwise available.\7\ For further 
information, see ``Use of Facts Otherwise Available and Adverse 
Inferences'' in the Preliminary Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination of Critical Circumstances
    In accordance with section 703(e)(1) of the Act, Commerce 
preliminarily determines that critical circumstances exist with respect 
to imports of certain steel wheels from China for Zhejiang Jingu 
Company Limited (Zhejiang Jingu), Xingmin Intelligent Transportation 
Systems (Group) (Xingmin), and all other exporters or producers not 
individually examined. For a full description of the methodology and 
results of Commerce's analysis, see the Preliminary Decision 
Memorandum.
Alignment
    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), and based on the petitioner's request,\8\ we are 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigation of certain steel 
wheels from China. Consequently, the final CVD determination will be 
issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than July 1, 2019, unless 
postponed.
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    \8\ See Letter from the petitioner, ``Certain Steel Wheels 12 to 
16.5 Inches in Diameter from the People's Republic of China (C-570-
091)--Petitioner's Request for Alignment of Countervailing Duty 
Investigation Final Determination Deadline with Antidumping 
Investigation Final Determination Deadline,'' dated December 12, 
2018.
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All-Others Rate
    Sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the Act provide that 
in the preliminary determination, Commerce shall determine an estimated 
all-others rate for companies not individually examined. This rate 
shall be an amount equal to the weighted average of the estimated 
subsidy rates established for those companies individually examined, 
excluding any zero and de minimis rates and any rates based entirely 
under section 776 of the Act.
    In this investigation, Commerce calculated a rate that is not zero, 
de minimis or based entirely on the facts available for Zhejiang Jingu. 
Specifically, Zhejiang Jingu is the only participating respondent with 
a rate that is not zero, de minimis or based entirely on the facts 
available. Consequently, the rate calculated for Zhejiang Jingu is also 
assigned as the rate for all-other producers and exporters.
Preliminary Determination
    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                      Producer/exporter                          rate
                                                               (percent)
------------------------------------------------------------------------
Zhejiang Jingu Company Limited \9\..........................       58.30
Xingmin Intelligent Transportation Systems (Group) \10\.....      293.27
All-Others..................................................       58.30
------------------------------------------------------------------------

Suspension of Liquidation
    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise produced and/or exported by Zhejiang Jingu, Xingmin, and 
all other exporters or producers. In accordance with section 
703(e)(2)(A) of the Act, Commerce will direct U.S. Customs and Border 
Protection (CBP) to suspend the liquidation of entries to unliquidated 
entries of merchandise from the exporters/producers identified in this 
paragraph that were entered, or withdrawn from warehouse, for 
consumption on or after the date which is 90 days before the 
publication of this notice.
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    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce has assigned Zhejiang Jingu's rate to each of the entities 
named as cross-owned in its affiliation questionnaire response: 
Shanghai Yata Industry Company Limited; Shangdong Jingu Auto Parts 
Co., Ltd.; An'Gang Jingu (Hangzhou) Metal Materials Co., Ltd.; 
Zhejiang Wheel World Co., Ltd.; and Hangzhou Jingu New Energy 
Development Co. Ltd. Zhejiang Jingu's rate has also been assigned to 
Zhejiang Jingu Automobile Components, which was the prior name of 
Zhejiang Jingu.
    \10\ As discussed in the Preliminary Decision Memorandum, 
Commerce has assigned Xingmin's rate to each of the entities for 
which Xingmin provided an initial questionnaire response: Sino-Tex 
(Longkou) Wheel Manufacturers Inc.; Tangshan Xingmin Wheel Co., 
Ltd.; and Xianning Xingmin Wheel Co., Ltd.
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    Furthermore, pursuant to 19 CFR 351.205(d), Commerce will instruct 
CBP to require a cash deposit equal to the rates indicated above.
Disclosure
    Commerce intends to disclose its calculations and analysis to 
interested parties in this preliminary determination within five days 
of its public announcement, or if there is no public announcement, 
within five days of the date of this notice in accordance with 19 CFR 
351.224(b).
Verification
    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.
Public Comment
    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to

[[Page 5991]]

issues raised in case briefs, may be submitted no later than five days 
after the deadline date for case briefs.\11\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal 
briefs in this investigation 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.
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    \11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.
International Trade Commission Notification
    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If 
Commerce's final determination is affirmative, the ITC will make its 
final determination before the later of 120 days after the date of this 
preliminary determination or 45 days after Commerce's final 
determination.
Notification to Interested Parties
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: February 14, 2019.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation is certain on-the-road steel 
wheels, discs, and rims for tubeless tires with a nominal wheel 
diameter of 12 inches to 16.5 inches, regardless of width. Certain on-
the-road steel wheels with a nominal wheel diameter of 12 inches to 
16.5 inches within the scope are generally for road and highway 
trailers and other towable equipment, including, inter alia, utility 
trailers, cargo trailers, horse trailers, boat trailers, recreational 
trailers, and towable mobile homes. The standard widths of certain on-
the-road steel wheels are 4 inches, 4.5 inches, 5 inches, 5.5 inches, 6 
inches, and 6.5 inches, but all certain on-the-road steel wheels, 
regardless of width, are covered by the scope.
    The scope includes rims and discs for certain on-the-road steel 
wheels, whether imported as an assembly, unassembled, or separately. 
The scope includes certain on-the-road steel wheels regardless of steel 
composition, whether cladded or not cladded, whether finished or not 
finished, and whether coated or uncoated. The scope also includes 
certain on-the-road steel wheels with discs in either a ``hub-piloted'' 
or ``stud-piloted'' mounting configuration, though the stud-piloted 
configuration is most common in the size range covered.
    All on-the-road wheels sold in the United States must meet Standard 
110 or 120 of the National Highway Traffic Safety Administration's 
(NHTSA) Federal Motor Vehicle Safety Standards, which requires a rim 
marking, such as the ``DOT'' symbol, indicating compliance with 
applicable motor vehicle standards. See 49 CFR 571.110 and Sec.  
571.120. The scope includes certain on-the-road steel wheels imported 
with or without NHTSA's required markings.
    Certain on-the-road steel wheels imported as an assembly with a 
tire mounted on the wheel and/or with a valve stem or rims imported as 
an assembly with a tire mounted on the rim and/or with a valve stem are 
included in the scope of this investigation. However, if the steel 
wheels or rims are imported as an assembly with a tire mounted on the 
wheel or rim and/or with a valve stem attached, the tire and/or valve 
stem is not covered by the scope.
    Excluded from this scope are the following:
    (1) steel wheels for use with tube-type tires; such tires use multi 
piece rims, which are two-piece and three-piece assemblies and require 
the use of an inner tube;
    (2) aluminum wheels;
    (3) certain on-the-road steel wheels that are coated entirely with 
chrome; and
    (4) steel wheels that do not meet Standard 110 or 120 of the 
NHTSA's requirements other than the rim marking requirements found in 
49 CFR 571.110S4.4.2 and Sec.  571.120S5.2.
    Certain on-the-road steel wheels subject to this investigation are 
properly classifiable under the following category of the Harmonized 
Tariff Schedule of the United States (HTSUS): 8716.90.5035 which covers 
the exact product covered by the scope whether entered as an assembled 
wheel or in components. Certain on-the-road steel wheels entered with a 
tire mounted on them may be entered under HTSUS 8716.90.5059 (Trailers 
and semi-trailers; other vehicles, not mechanically propelled, parts, 
wheels, other, wheels with other tires) (a category that will be 
broader than what is covered by the scope). While the HTSUS subheadings 
are provided for convenience and customs purposes, the written 
description of the subject merchandise is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Respondent Selection
VII. Injury Test
VIII. Preliminary Affirmative Determination of Critical Circumstances
IX. Application of the CVD Law to Imports from China
X. Diversification of China's Economy
XI. Subsidies Valuation
XII. Benchmarks
XIII. Use of Facts Otherwise Available and Adverse Inferences
XIV. Analysis of Programs
XV. Calculation of the All-Others Rate
XVI. ITC Notification
XVII. Disclosure and Public Comment
XVIII. Verification
XIX. Recommendation

[FR Doc. 2019-03131 Filed 2-22-19; 8:45 am]
 BILLING CODE 3510-DS-P




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