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Certain Steel Wheels From the People's Republic of China: Final Determination of Sales at Less-Than-Fair-Value


American Government Cars in China

Certain Steel Wheels From the People's Republic of China: Final Determination of Sales at Less-Than-Fair-Value

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)
----------------------------------------------------------------------------------------------------------------
                                                                                            Estimated weighted-
                                                                     Estimated weighted-      average dumping
                Producer                          Exporter             average dumping      margin adjusted for
                                                                      margin  (percent)      subsidy offset(s)
                                                                                                 (percent)
----------------------------------------------------------------------------------------------------------------
China-Wide Entity......................  China-Wide Entity........                231.70                 231.08
----------------------------------------------------------------------------------------------------------------

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




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