Certain Steel Wheels From the People's Republic of China: Final Determination of Sales at Less-Than-Fair-Value |
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Gary Taverman
Department of Commerce
28 March 2019
[Federal Register Volume 84, Number 60 (Thursday, March 28, 2019)]
[Notices]
[Pages 11746-11749]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05957]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-082]
Certain Steel Wheels From the People's Republic of China: Final
Determination of Sales at Less-Than-Fair-Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports
of certain steel wheels (steel wheels) from the People's Republic of
China (China) 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) during the period of
investigation (POI), July 1, 2017, through December 31, 2017.
DATES: Applicable March 28, 2019.
FOR FURTHER INFORMATION CONTACT: Lingjun Wang, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-2316.
SUPPLEMENTARY INFORMATION:
Background
On October 30, 2018, Commerce published in the Federal Register the
preliminary affirmative determination of sales at LTFV of steel wheels
from China.\1\ A summary of the events that occurred since Commerce
published the Preliminary Determination, as well as a full discussion
of the issues raised by the parties for this final determination, may
be found in the Issues and Decision Memorandum.\2\
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\1\ See Certain Steel Wheels from the People's Republic of
China: Preliminary Determination of Sales at Less-Than-Fair-Value,
83 FR 54568 (October 30, 2018) (Preliminary Determination) and
accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination of Sales at Less-Than-Fair-Value Investigation
of Certain Steel Wheels from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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[[Page 11747]]
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://access.trade.gov, and
ACCESS is available to all parties in the Central Records Unit, Room
B8024 of the main 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
Issues and Decision Memorandum are identical in content.
Period of Investigation
The POI is July 1, 2017, through December 31, 2017.
Scope Comments
In accordance with the preamble to Commerce's regulations,\3\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope), and states that ``if a
party subsequently finds that additional factual information pertaining
to the scope of the investigation may be relevant, the party may
contact Commerce and request permission to submit the additional
information.'' \4\ No issue was raised regarding the scope as it
appeared in the Initiation Notice during the period provided for scope
comments. On December 11, 2018, the petitioners \5\ requested that
Commerce permit them to submit additional factual information for the
final scope determination to ensure any orders resulting from this
investigation would effectively provide relief from unfairly-traded
imports.\6\ In response, Commerce provided the petitioners an
opportunity to submit new factual information and comments relating to
the scope. Commerce also provided interested parties an opportunity to
submit comments and factual information intended to rebut, clarify or
correct the petitioners' new factual information.\7\ On December 19,
2018, the petitioners submitted comments on the scope of the
investigation.\8\ On February 4, 2019, Sunrise \9\ and Zhejiang Jingu
Company Limited (Zhejiang Jingu) each submitted rebuttal comments
pertaining to the petitioners' scope comments.\10\ After considering
comments and supporting factual information, Commerce is modifying the
scope language as it appeared in the Initiation Notice. For further
discussion, see Issues and Decision Memorandum.
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\3\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\4\ See Certain Steel Wheels from the People's Republic of
China: Initiation of Less-Than-Fair-Value Investigation, 83 FR 17798
(April 24, 2018) (Initiation Notice).
\5\ The petitioners are Accuride Corporation and Maxion Wheels
Akron LLC (collectively, the petitioners).
\6\ See Petitioners' Letter, ``Certain Steel Wheels from China
(A-570-082)--Petitioners' Request to Submit Additional Factual
Information Relevant to Scope,'' dated December 11, 2018.
\7\ See Memorandum, ``Certain Steel Wheels from the People's
Republic of China: Opportunity to Submit Factual Information and
Comments Pertaining to the Scope of Investigations,'' dated December
14, 2018.
\8\ See Petitioners' Letter, ``Certain Steel Wheels from the
People's Republic of China (A-570-082, C-570-083)--Petitioners'
Request for Clarification of the Scope of the Investigations and
Submission of Additional Factual Information Relevant to Scope,''
dated December 19, 2018 (Petitioners' Scope Comments).
\9\ Xiamen Sunrise Wheel Group Co., Ltd. (``Xiamen Sunrise''),
Xiamen Sunrise Wheel Co., Ltd. (``Sunrise Wheel''), Xiamen Sunrise
Metal Co., Ltd. (``Sunrise Metal''), Sichuan Sunrise Metal Industry
Co., Ltd. (``Sichuan Sunrise''), and Xiamen Topu Import & Export
Co., Ltd. (``Topu'') (collectively, ``Sunrise'')
\10\ See Sunrise's Letter, ``Certain Steel Wheels from the
People's Republic of China: Response to Petitioners' Request for
Clarification of the Scope of the Investigations and Submission of
Additional Factual Information Relevant to Scope,'' dated February
4, 2019 (Sunrise's Scope Rebuttal); see also Zhejiang Jingu's
Letter, ``Antidumping and Countervailing Duty Investigations of
Certain Steel Wheels from the People's Republic of China: Response
to Petitioners' Request for Clarification of Scope of
Investigations,'' dated February 4, 2019 (Zhejiang Jingu's Scope
Rebuttal).
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Scope of the Investigation
The products covered by this investigation are steel wheels from
China. For a complete description of the scope of this investigation,
see Appendix I.
Affirmative Determination of Critical Circumstances
We find that critical circumstances exist with regard to the China-
wide entity pursuant to section 735(a)(3) of the Act. Specifically, we
determine that there is a reasonable basis to believe or suspect that
importers knew, or should have known, that the subject merchandise was
being sold at less than fair value, and that those sales were likely to
cause material injury in accordance with section 735(a)(3)(A)(ii) of
the Act. Furthermore, we also find that there have been massive imports
of the subject merchandise over a relatively short period pursuant to
sections 735(a)(3)(B) and 776(a)-(b) of the Act. For further
discussion, see the Issues and Decision Memorandum.
Analysis of Comments Received
A list of issues which the petitioners raised in its case brief, as
well as in the petitioners' scope comments,\11\ along with Sunrise's
and Zhejiang Jingu's rebuttal comments,\12\ to which we responded in
the Issues and Decision Memorandum, is attached to this notice at
Appendix II.
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\11\ See Petitioners' Scope Comments.
\12\ See Sunrise's Scope Rebuttal; see also Zhejiang Jingu's
Scope Rebuttal.
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Final Determination
The final, estimated weighted-average dumping margin is as follows:
Table 2 to (d)(3)(ii)(B)(1)(i)
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Estimated weighted-
Estimated weighted- average dumping
Producer Exporter average dumping margin adjusted for
margin (percent) subsidy offset(s)
(percent)
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China-Wide Entity...................... China-Wide Entity........ 231.70 231.08
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Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with its final determination within five days
of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b). However, in this investigation, no
individually examined companies participated in the investigation, and
Commerce has applied total AFA to all producers and exporters,
including the China-wide entity, in accordance with
[[Page 11748]]
section 776 of the Act. The applied AFA rate continues to be based
solely on the petition, and, therefore, there are no calculations to
disclose to interested parties.
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 imports of the merchandise, as described in
Appendix I of this notice, that were entered or withdrawn from
warehouse, for consumption on or after October 30, 2018, the date that
the Preliminary Determination was published.
Section 735(c)(4) of the Act provides that, given an affirmative
final determination of critical circumstances, any suspension of
liquidation shall apply to unliquidated entries of subject merchandise
entered, or withdrawn from warehouse, for consumption on or after
August 1, 2018, which is 90 days before the date on which the
suspension of liquidation was first ordered. As discussed above and in
more detail in the Issues and Decision Memorandum, Commerce finds that
critical circumstances exist for imports of subject merchandise
produced or exported by the China-wide entity. In accordance with
section 733(c)(4) of the Act, the suspension of liquidation shall also
apply to unliquidated entries of shipments of subject merchandise from
the China-wide entity that were entered, or withdrawn from warehouse
from August 1, 2018, up to October 30, 2018.
Further, pursuant to section 735(c)(1)(B)(ii) of the Act, Commerce
will instruct CBP to collect a cash deposit as follows: (1) The rate
for the exporters and producers listed in the chart above will be equal
to the estimated weighted-average dumping margin that we have
determined in this final determination; (2) for all Chinese exporters
of subject merchandise which have not received their own rate, the
cash-deposit rate will be equal to the estimated weighted-average
dumping margin for the China-wide entity; and (3) for all non-Chinese
exporters of subject merchandise which have not received their own
rate, the cash-deposit rate will be equal to the rate applicable to the
Chinese exporter and producer combination that supplied that non-
Chinese exporter. Commerce normally adjusts the estimated weighted-
average dumping margin by the amount of export subsidies countervailed
in a companion countervailing duty (CVD) proceeding when the CVD
measures are in effect. Accordingly, where Commerce made an affirmative
determination for countervailable subsidies that are export
contingent,\13\ Commerce has offset the estimated weighted-average
dumping margin by the appropriate CVD rate(s). Any such adjusted cash
deposit rates may be found in the ``Final Determination Margin''
section, above. These suspension of liquidation instructions will
remain in effect until further notice.
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\13\ In the CVD final determination, based on AFA, we found the
``Foreign Trade Development Fund Program Grants'' program to be
inconsistent with the Subsidies Agreement pursuant to section
705(a)(2)(A) of the Act. See Certain Steel Wheels from the People's
Republic of China: Final Affirmative Countervailing Duty
Determination and Affirmative Determination of Critical
Circumstances, in Part, and accompanying Issues and Decision
Memorandum, dated concurrently with this AD final determination. The
AFA rate applied to that program was 0.62 percent.
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International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
U.S. International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because the final determination in this
proceeding is affirmative, in accordance with section 735(b)(2) of the
Act, the ITC will make its final determination as to whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports of subject
merchandise no later than 45 days after this final determination. If
the ITC determines that material injury, or threat of material injury,
does not exist, the proceeding will be terminated, and all cash
deposits will be refunded. If the ITC determines that such injury does
exist, Commerce will issue an antidumping duty order directing CBP to
assess, upon further instruction by Commerce, 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.
Notification Regarding Administrative Protective Orders
This notice will serve as the only reminder to parties subject to
an administrative protective order (APO) 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.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).
Dated: March 25, 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 merchandise subject to the investigation is certain on-the-
road steel wheels, discs, and rims for tubeless tires, with a
nominal rim diameter of 22.5 inches and 24.5 inches, regardless of
width. Certain on-the-road steel wheels with a nominal wheel
diameter of 22.5 inches and 24.5 inches are generally for Class 6,
7, and 8 commercial vehicles (as classified by the Federal Highway
Administration Gross Vehicle Weight Rating system), including
tractors, semi-trailers, dump trucks, garbage trucks, concrete
mixers, and buses, and are the current standard wheel diameters for
such applications. The standard widths of certain on-the-road steel
wheels are 7.5 inches, 8.25 inches, and 9.0 inches, but all certain
on-the-road steel wheels, regardless of width, are covered by the
scope. While 22.5 inches and 24.5 inches are standard wheel sizes
used by Class 6, 7, and 8 commercial vehicles, the scope covers
sizes that may be adopted in the future for Class 6, 7, and 8
commercial vehicles.
The scope includes certain on-the-road steel wheels with either
a ``hub-piloted'' or ``stud-piloted'' mounting configuration, and
includes rims and discs for such wheels, whether imported as an
assembly or separately. The scope includes certain on-the-road steel
wheels, discs, and rims, of carbon and/or alloy steel composition,
whether cladded or not cladded, whether finished or not finished,
and whether coated or uncoated. All on-the-road wheels sold in the
United States are subject to the requirements of the National
Highway Traffic Safety Administration and bear markings, such as the
``DOT'' symbol, indicating compliance with applicable motor vehicle
standards. See 49 CFR 571.120. The scope includes certain on-the-
road steel wheels imported with or without the required markings.
Certain on-the-road steel wheels imported as an assembly with a tire
mounted on the wheel and/or with a valve stem attached are included.
However, if the certain on-the-road steel wheel is imported as an
assembly with a tire mounted on the wheel and/or with a valve stem
attached, the certain on-the-road steel wheel is covered by the
scope, but the tire and/or valve stem is not covered by the scope.
The scope includes rims and discs that have been further
processed in a third country, including, but not limited to, the
welding and painting of rims and discs from China to form a steel
wheel, or any other processing that would not otherwise remove
[[Page 11749]]
the merchandise from the scope of the proceeding if performed in
China.
Excluded from the scope are:
(1) Steel wheels for tube-type tires that require a removable
side ring;
(2) aluminum wheels;
(3) wheels where steel represents less than fifty percent of the
product by weight; and
(4) steel wheels that do not meet National Highway Traffic
Safety Administration requirements, other than the rim marking
requirements found in 49 CFR 571.120S5.2.
Imports of the subject merchandise are currently classified
under the following Harmonized Tariff Schedule of the United States
(HTSUS) subheadings: 8708.70.4530, 8708.70.4560, 8708.70.6030,
8708.70.6060, 8716.90.5045, and 8716.90.5059. Merchandise meeting
the scope description may also enter under the following HTSUS
subheadings: 4011.20.1015, 4011.20.5020, and 8708.99.4850. While
HTSUS subheadings are provided for convenience and customs purposes,
the written description of the subject merchandise is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Affirmative Determination of Critical Circumstances
VII. Discussion of Issues
Comment 1: Scope Clarification for Rims and Discs Processed in a
Third Country
Comment 2: Critical Circumstances
Comment 3: Application of Adverse Facts Available
Comment 4: Separate Rate Status for CIMAC
VIII. Recommendation
[FR Doc. 2019-05957 Filed 3-27-19; 8:45 am]
BILLING CODE 3510-DS-P