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Certain Steel Wheels 12 to 16.5 Inches in Diameter From the People's Republic of China: Final Affirmative Countervailing Duty Determination, and Final Affirmative Determination of Critical Circumstances


American Government Cars in China

Certain Steel Wheels 12 to 16.5 Inches in Diameter From the People's Republic of China: Final Affirmative Countervailing Duty Determination, and Final Affirmative Determination of Critical Circumstances

Jeffrey I. Kessler
Department of Commerce
9 July 2019


[Federal Register Volume 84, Number 131 (Tuesday, July 9, 2019)]
[Notices]
[Pages 32723-32725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14558]


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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: Final Affirmative Countervailing Duty 
Determination, and Final Affirmative Determination of Critical 
Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain steel wheels 12 to 16.5 inches in diameter (certain steel 
wheels) from the People's Republic of China (China).

DATES: Applicable July 9, 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

    On February 25, 2019, Commerce published the Preliminary 
Determination of this investigation in the Federal Register.\1\ In the 
Preliminary Determination, Commerce aligned the final determination in 
this countervailing duty (CVD) investigation with the final 
determination in the companion less-than-fair-value (LTFV) 
investigation, in accordance with section 705(a)(1) of the Tariff Act 
of 1930, as amended (the Act), and 19 CFR 351.210(b)(4). A complete 
summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum.\2\
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    \1\ See Certain Steel Wheels 12 to 16.5 Inches in Diameter from 
the People's Republic of China: Preliminary Affirmative 
Countervailing Duty Determination, 84 FR 5989 (February 25, 2019) 
(Preliminary Determination) and accompanying Preliminary Decision 
Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final 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 (Issues and Decision Memorandum).
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    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 https://access.trade.gov, 
and 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 Issues and Decision Memorandum 
and the electronic version are identical in content.
    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\ Accordingly, the 
deadline for the final determination of this investigation is July 1, 
2019.
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    \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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Period of Investigation

    The period of investigation (POI) is January 1, 2017 through 
December 31, 2017.

Scope of the Investigation

    The products covered by this investigation are certain steel wheels 
12 to 16.5 inches in diameter from China. For a complete description of 
the scope of this investigation, see Appendix I of this notice.

Scope Comments

    During the course of this investigation and the concurrent LTFV 
investigation of certain steel wheels from China, Commerce received 
scope comments from interested parties. Commerce issued a Preliminary 
Scope Decision Memorandum to address these comments and set aside a 
period of time for parties to address scope issues in scope case and 
rebuttal briefs.\4\ Commerce has reviewed the briefs submitted by 
interested parties, considered the arguments therein, and has made 
changes to the scope of the investigation, including additional 
exclusions, and clarifying language. For a summary of the scope 
comments and rebuttal responses submitted to the record for this final 
determination, along with the accompanying discussion and analysis of 
all comments timely received, see the Final Scope Decision 
Memorandum.\5\
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    \4\ See Memorandum, ``Certain Steel Wheels 12 to 16.5 Inches in 
Diameter from the People's Republic of China: Preliminary Scope 
Decision Memorandum,'' dated April 15, 2019, at 11.
    \5\ See Memorandum, ``Certain Steel Wheels 12 to 16.5 Inches in 
Diameter from the People's Republic of China: Final Scope Comments 
Decision Memorandum,'' dated concurrently with this notice (Final 
Scope Decision Memorandum).
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Final Affirmative Determination of Critical Circumstances

    In the Preliminary Determination, Commerce preliminarily 
determined, pursuant to section 703(e)(1) of the Act, that critical 
circumstances exist with respect to Xingmin Intelligent Transportation 
Systems (Group) (Xingmin), Zhejiang Jingu Company Limited (Zhejiang 
Jingu), and all other exporters or producers not individually examined. 
For this final determination, we continue to find that critical 
circumstances exist for Xingmin, Zhejiang Jingu, and all other 
exporters or producers not individually examined, pursuant to section 
705(a)(2) of the Act. For a full description of the methodology and 
results of Commerce's analysis, see the Issues and Decision Memorandum.

Analysis of Subsidy Programs and Comments Received

    All issues raised in the case and rebuttal briefs submitted by 
interested parties in this proceeding, other than

[[Page 32724]]

those issues related to scope, are discussed in the Issues and Decision 
Memorandum. A list of the issues raised by parties and responded to by 
Commerce in the Issues and Decision Memorandum, is attached at Appendix 
II.

Use of Adverse Facts Available

    Commerce relied on ``facts otherwise available,'' including adverse 
facts available (AFA), for several findings in the Preliminary 
Determination. For this final determination, we are basing the CVD 
rates for Xingmin and Zhejiang Jingu on facts otherwise available, with 
an adverse inference, pursuant to sections 776(a) and (b) of the Act. 
For a full discussion of our application of AFA, see the Issues and 
Decision Memorandum.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received from parties, we 
made certain changes to the respondents' subsidy rate calculations set 
forth in the Preliminary Determination. For a discussion of these 
changes, see the Issues and Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(5)(A) of the Act, Commerce shall 
determine an estimated all-others rate for companies not individually 
examined. Generally, under section 705(c)(5)(A)(i) of the Act, 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 on 
AFA under section 776 of the Act. However, section 705(c)(5)(A)(ii) of 
the Act provides that, where all countervailable subsidy rates 
established for the mandatory respondents are zero, de minimis, or 
based entirely on facts available, Commerce may use ``any reasonable 
method'' for assigning an all-others rate, including ``averaging the 
estimated average countervailable subsidy rates determined for the 
exporters and producers individually investigated.'' In this 
investigation, all rates for the individually-investigated respondents 
are based entirely on facts available, pursuant to section 776 of the 
Act. We are relying on a simple average of the total AFA rates assigned 
to Xingmin and Zhejiang Jingu as the ``all-others'' rate in this final 
determination, consistent with the statutory provision to rely on ``any 
reasonable method.'' Specifically, there is no other information on the 
record from which to determine the all-others rate. For further 
information on the all-others rate, see the Issues and Decision 
Memorandum.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found countervailable, 
Commerce determines that there is a subsidy, i.e., a financial 
contribution by an ``authority'' that gives rise to a benefit to the 
recipient, and that the subsidy is specific.\6\ In making these 
findings, Commerce relied, in part, on facts otherwise available and, 
because it finds that one or more respondents did not act to the best 
of their ability to respond to Commerce's requests for information, 
Commerce drew an adverse inference where appropriate in selecting from 
among the facts otherwise available.\7\ For a full description of the 
methodology underlying our final determination, see the Issues and 
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.
    \7\ See sections 776(a), (b), and 782(d) of the Act.
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Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established individual estimated countervailable subsidy rates, as 
follows:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Xingmin Intelligent Transportation Systems (Group) \8\......      386.45
Zhejiang Jingu Company Limited \9\..........................      388.31
All-Others..................................................      387.38
------------------------------------------------------------------------

Disclosure

    We intend to disclose the calculations performed to parties in this 
proceeding 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).
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    \8\ Commerce 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.
    \9\ Commerce assigned Zhejiang Jingu Company Limited'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.
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Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all appropriate 
entries of certain steel wheels from China, as described in Appendix I 
of this notice, that were entered or withdrawn from warehouse, for 
consumption, on or after November 27, 2018, 90 days prior to the date 
of publication of the Preliminary Determination in the Federal 
Register, for Xingmin, Zhejiang and all other producers and exporters 
of merchandise under consideration. In accordance with section 703(d) 
of the Act, we issued instructions to CBP to discontinue the suspension 
of liquidation for CVD purposes for subject merchandise entered, or 
withdrawn from warehouse, on or after June 25, 2019, but to continue 
the suspension of liquidation of all entries from November 27, 2018 
through June 24, 2019.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, reinstate 
the suspension of liquidation under section 706(a) of the Act, and 
require a cash deposit of estimated countervailing duties for such 
entries of subject merchandise in the amounts indicated above. If the 
ITC issues a final affirmative injury determination but a final 
negative determination of critical circumstances, we will instruct CBP 
to liquidate entries prior to the date of publication of the 
Preliminary Determination without regard to duties, and all estimated 
duties deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled. If the ITC determines that 
material injury, or threat of material injury, does not exist, this 
proceeding will be terminated, and all estimated duties deposited or 
securities posted as a result of the suspension of liquidation will be 
refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of certain 
steel wheels from China. Because the final determination in this 
proceeding is affirmative, in accordance with section 705(b) of the 
Act, the ITC

[[Page 32725]]

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, or sales (or the likelihood of sales) for 
importation of certain steel wheels from China no later than 45 days 
after our 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 a CVD order 
directing CBP to assess, upon further instruction by Commerce, 
countervailing 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.

Administrative Protective Orders

    This notice serves as the only reminder to parties subject to the 
administrative protective order (APO) of their responsibility 
concerning the destruction of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely 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 terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: July 1, 2019.
Jeffrey I. Kessler,
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 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.
    The scope includes rims, discs, and wheels that have been 
further processed in a third country, including, but not limited to, 
the welding and painting of rims and discs to form a steel wheel, or 
any other processing that would not otherwise remove the merchandise 
from the scope of the investigations if performed in the People's 
Republic of China.
    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 in 
chrome. This exclusion is limited to chrome wheels coated entirely 
in chrome and produced through a chromium electroplating process, 
and does not extend to wheels that have been finished with other 
processes, including but not limited to Physical Vapor Deposition 
(PVD); 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 571.120S5.2;
    (5) steel wheels that meet the following specifications: Steel 
wheels with a nominal wheel diameter ranging from 15 inches to 16. 5 
inches, with a rim width of 8 inches or greater, and a wheel 
backspacing ranging from 3. 75 inches to 5.5 inches; and
    (6) steel wheels with wire spokes.
    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 Issues and Decision 
Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Affirmative Final Determination of Critical Circumstances
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Discussion of the Issues
    Comment 1: Calculation of the Total AFA Rate
    Comment 2: Calculation of the All Others Rate
    Comment 3: Whether Critical Circumstances Exist
VIII. Recommendation

[FR Doc. 2019-14558 Filed 7-8-19; 8:45 am]
BILLING CODE 3510-DS-P




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