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Certain Chassis and Subassemblies Thereof From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation

American Government Special Collections Reference Desk

American Government Cars in China Topics:  Coalition of American Chassis Manufacturers

Certain Chassis and Subassemblies Thereof From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation

Jeffrey I. Kessler
Department of Commerce
26 August 2020


[Federal Register Volume 85, Number 166 (Wednesday, August 26, 2020)]
[Notices]
[Pages 52552-52557]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18713]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-135]


Certain Chassis and Subassemblies Thereof From the People's 
Republic of China: Initiation of Less-Than-Fair-Value Investigation

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

DATES: Applicable August 19, 2020.

FOR FURTHER INFORMATION CONTACT: William Langley; AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3861.

SUPPLEMENTARY INFORMATION:

The Petition

    On July 30, 2020, the U.S. Department of Commerce (Commerce) 
received an antidumping duty (AD) petition concerning imports of 
certain chassis and subassemblies thereof (chassis) from the People's 
Republic of China (China) filed in proper form on behalf of the 
Coalition of American Chassis Manufacturers (the petitioner), the 
members of which are domestic producers of chassis.\1\ The Petition was 
accompanied by a countervailing duty (CVD) petition concerning imports 
of chassis from China.\2\
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    \1\ The members of the Coalition of American Chassis 
Manufacturers are: Cheetah Chassis Corporation; Hercules 
Enterprises, LLC; Pitts Enterprises, Inc.; Pratt Industries, Inc.; 
and Stoughton Trailers, LLC. See Petitioner's Letter, ``Certain 
Chassis and Subassemblies Thereof from the People's Republic of 
China: Petitions for the Imposition of Antidumping and 
Countervailing Duties,'' dated July 30, 2020 (the Petition) at 
Volume I and Exhibit I-1.
    \2\ Id.
---------------------------------------------------------------------------

    On August 3 and 7, 2020, Commerce requested supplemental 
information pertaining to certain aspects of the

[[Page 52553]]

Petition in separate supplemental questionnaires and a phone call with 
the petitioner.\3\ On August 7 and 10, 2020, the petitioner filed 
timely responses to these requests for additional information.\4\
---------------------------------------------------------------------------

    \3\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Certain Chassis 
and Subassemblies Thereof from the People's Republic of China: 
Supplemental Questions'' (General Issues Supplemental); and 
``Petition for the Imposition of Antidumping Duties on Imports of 
Certain Chassis and Subassemblies Thereof from the People's Republic 
of China: Supplemental Questions'' both dated August 3, 2020; see 
also Memorandum, ``Phone Call with Counsel to the Petitioner,'' 
dated August 7, 2020.
    \4\ See Petitioner's Letter, ``Certain Chassis and Subassemblies 
Thereof from the People's Republic of China: Response to 
Supplemental Questions on General Issues Volume I of the Petition,'' 
dated August 7, 2020 (General Issues Supplement); see also 
Petitioner's Letter, ``Certain Chassis and Subassemblies Thereof 
from the People's Republic of China: Errata to Response to 
Supplemental Questions on General Issues Volume I of the Petition,'' 
dated August 7, 2020 (Scope Errata); and Petitioner's Letter, 
``Certain Chassis and Subassemblies Thereof from the People's 
Republic of China: Response to Supplemental Questions on AD Volume 
II of the Petition,'' dated August 10, 2020.
---------------------------------------------------------------------------

    On August 11, 2020, Commerce officials spoke via phone call with 
the petitioner's counsel regarding certain issues pertaining to the 
proposed scope, import statistics, and U.S. price.\5\ On August 13 and 
14, 2020, the petitioner submitted timely responses to these requests 
for additional information.\6\
---------------------------------------------------------------------------

    \5\ See Memorandum, ``Phone Call with Counsel to the 
Petitioner,'' dated August 11, 2020.
    \6\ See Petitioner's Letter, ``Certain Chassis and Subassemblies 
Thereof from the People's Republic of China: Response to Second 
Supplemental Questions on AD Volume II of the Petition,'' dated 
August 13, 2020 (Second China AD Supplement); see also Petitioner's 
Letter, ``Certain Chassis and Subassemblies Thereof from the 
People's Republic of China: Response to Second Supplemental 
Questions (Question 2) on General Issues Volume I of the Petition,'' 
dated August 13, 2020; and Petitioner's Letter, ``Certain Chassis 
and Subassemblies Thereof from the People's Republic of China: 
Response to Second Supplemental Questions (Question 1) on General 
Issues Volume I of the Petition,'' dated August 14, 2020 (Scope 
Supplement).
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of chassis from 
China are being, or are likely to be, sold in the United States at less 
than fair value (LTFV) within the meaning of section 731 of the Act, 
and that imports of such products are materially injuring, or 
threatening material injury to, the domestic chassis industry in the 
United States. Consistent with section 732(b)(1) of the Act, the 
Petition is accompanied by information reasonably available to the 
petitioner supporting the allegation.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry because the petitioner is an interested party, as 
defined in section 771(9)(E) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support for the initiation 
of the requested AD investigation.\7\
---------------------------------------------------------------------------

    \7\ See ``Determination of Industry Support for the Petition'' 
section, infra.
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Period of Investigation

    Because China is a non-market economy (NME) country, pursuant to 19 
CFR 351.204(b)(1), the period of investigation is January 1, 2020 
through June 30, 2020.

Scope of the Investigation

    The products covered by this investigation are chassis from China. 
For a full description of the scope of this investigation, see the 
appendix to this notice.

Comments on the Scope of the Investigation

    On August 3, 7, and 11, 2020, Commerce requested further 
information from the petitioner regarding the proposed scope to ensure 
that the scope language in the Petition is an accurate reflection of 
the products for which the domestic industry is seeking relief.\8\ On 
August 7, 2020, the petitioner revised the scope.\9\ The description of 
the merchandise covered by this investigation, as described in the 
appendix to this notice, reflects these clarifications.
---------------------------------------------------------------------------

    \8\ See General Issues Supplemental at 3-4; see also Memorandum, 
``Phone Call with Counsel to the Petitioner,'' dated August 7, 2020.
    \9\ See General Issues Supplement at 5-7; see also Scope Errata 
at 5-6; and Scope Supplement at 1.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\10\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information, all such 
factual information should be limited to public information.\11\ To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such comments by 5:00 p.m. Eastern Time 
(ET) on September 8, 2020, which is 20 calendar days from the signature 
date of this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on September 18, 2020, which 
is ten calendar days after the initial comment deadline.\12\
---------------------------------------------------------------------------

    \10\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \11\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \12\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

    Commerce requests that any factual information parties consider 
relevant to the scope of the investigation be submitted during this 
period. However, 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. All such submissions must be filed 
on the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\13\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------

    \13\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
---------------------------------------------------------------------------

Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of chassis to be reported 
in response to Commerce's AD questionnaire. This information will be 
used to identify the key physical characteristics of the subject 
merchandise in order to report the relevant factors of production 
(FOPs) accurately, as well as to develop appropriate product-comparison 
criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. In order to consider the suggestions of 
interested parties in developing and issuing the AD questionnaire, all 
comments must be filed by 5:00 p.m. ET on September 8, 2020, which is 
20 calendar days from the signature date of this notice.\14\ Any 
rebuttal comments, which may include factual information, must be filed 
by 5:00 p.m. ET on September 18, 2020, which is ten calendar days after 
the initial comment

[[Page 52554]]

deadline. All comments and submissions to Commerce must be filed 
electronically using ACCESS, as explained above, on the record of the 
AD investigation.
---------------------------------------------------------------------------

    \14\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\15\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\16\
---------------------------------------------------------------------------

    \15\ See section 771(10) of the Act.
    \16\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F. 2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\17\ Based on our analysis of the information 
submitted on the record, we have determined that chassis, as defined in 
the scope, constitute a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\18\
---------------------------------------------------------------------------

    \17\ See Volume I of the Petition at 16-18 and Exhibits I-7 and 
I-18; see also General Issues Supplement at 7-9 and Exhibits I-Supp-
1 and I-Supp-2.
    \18\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
the Antidumping Duty Investigation Initiation Checklist: Certain 
Chassis and Subassemblies Thereof from the People's Republic of 
China (China AD Initiation Checklist) at Attachment II, Analysis of 
Industry Support for the Antidumping and Countervailing Duty 
Petitions Covering Certain Chassis and Subassemblies Thereof from 
the People's Republic of China (Attachment II). This checklist is 
dated concurrently with, and hereby adopted by, this notice and on 
file electronically via ACCESS.
---------------------------------------------------------------------------

    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
own production of chassis in 2019 and compared this to the estimated 
total chassis production for the entire domestic industry.\19\ We have 
relied on the data provided by the petitioner for purposes of measuring 
industry support.\20\
---------------------------------------------------------------------------

    \19\ See Volume I of the Petition at 2-3 and Exhibits I-3 and I-
17; see also General Issues Supplement at 9-10 and Exhibit I-Supp-3.
    \20\ See Volume I of the Petition at 2-3 and Exhibits I-3 and I-
17; see also General Issues Supplement at 9-10 and Exhibit I-Supp-3. 
For further discussion, see Attachment II of the China AD Initiation 
Checklist.
---------------------------------------------------------------------------

    Our review of the data provided in the Petition, the General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petition.\21\ First, the Petition established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product and, as such, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\22\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
732(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petition account for at least 25 percent of the total 
production of the domestic like product.\23\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 732(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition.\24\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within the meaning of 
section 732(b)(1) of the Act.\25\
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    \21\ See Attachment II of the China AD Initiation Checklist.
    \22\ Id.; see also section 732(c)(4)(D) of the Act.
    \23\ See Attachment II of the China AD Initiation Checklist.
    \24\ Id.
    \25\ Id.
---------------------------------------------------------------------------

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner alleges that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\26\
---------------------------------------------------------------------------

    \26\ See Volume I of the Petition at 25-26 and Exhibit I-13.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by a significant volume of subject imports; reduced market 
share; underselling and price depression and/or suppression; lost sales 
and revenues; declines in production, shipments, net sales, and 
capacity utilization; decline in employment; declining financial 
performance; and the magnitude of the estimated dumping margin.\27\ We 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, causation, as well as negligibility, 
and we have determined that these allegations are properly supported by 
adequate evidence and meet the statutory requirements for 
initiation.\28\
---------------------------------------------------------------------------

    \27\ See Volume I of the Petition at 15-16, 19-39 and Exhibits 
I-3, I-13, I-15 through I-17 and I-20 through I-31; see also General 
Issues Supplement at 10 and Exhibit I-Supp-4.
    \28\ See China AD Initiation Checklist at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Certain Chassis and Subassemblies Thereof from the People's 
Republic of China (Attachment III).

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[[Page 52555]]

Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate the AD investigation 
of imports of chassis from China. The sources of data for the 
deductions and adjustments relating to U.S. price and normal value (NV) 
are discussed in greater detail in the China AD Initiation Checklist.

U.S. Price

    The petitioner based constructed export price (CEP) on information 
from a sale or offer for sale for chassis produced in and exported from 
China by a Chinese producer and adjusted for movement and other 
expenses, where appropriate.\29\
---------------------------------------------------------------------------

    \29\ See China AD Initiation Checklist.
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Normal Value

    Commerce considers China to be an NME country.\30\ In accordance 
with section 771(18)(C)(i) of the Act, any determination that a foreign 
country is an NME country shall remain in effect until revoked by 
Commerce. Therefore, we continue to treat China as an NME country for 
purposes of the initiation of this investigation. Accordingly, NV in 
China is appropriately based on FOPs valued in a surrogate market 
economy country, in accordance with section 773(c) of the Act.
---------------------------------------------------------------------------

    \30\ See, e.g., Antidumping Duty Investigation of Certain 
Aluminum Foil from the People's Republic of China: Affirmative 
Preliminary Determination of Sales at Less-Than-Fair Value and 
Postponement of Final Determination, 82 FR 50858, 50861 (November 2, 
2017), and accompanying Preliminary Decision Memorandum at ``China's 
Status as a Non-Market Economy,'' unchanged in Certain Aluminum Foil 
from the People's Republic of China: Final Determination of Sales at 
Less Than Fair Value, 83 FR 9282 (March 5, 2018).
---------------------------------------------------------------------------

    The petitioner states that Malaysia is an appropriate surrogate 
country because Malaysia is a market economy country that is at a level 
of economic development comparable to that of China and is a 
significant producer of comparable merchandise.\31\ The petitioner 
submitted publicly-available information from Malaysia to value all 
FOPs.\32\ Based on the information provided by the petitioner, we 
determine that it is appropriate to use Malaysia as a surrogate country 
for China for initiation purposes.
---------------------------------------------------------------------------

    \31\ See Volume II of the Petition at 2, 14-15 and Exhibit II-
20.
    \32\ Id. at Exhibit II-20.
---------------------------------------------------------------------------

    Interested parties will have the opportunity to submit comments 
regarding surrogate country selections and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    The petitioner used the product-specific consumption rates and 
production costs of a U.S. manufacturer of chassis as a surrogate to 
value Chinese manufacturers' FOPs.\33\ Additionally, the petitioner 
calculated factory overhead; selling, general and administrative 
expenses; and profit based on the experience of a Malaysian producer of 
comparable merchandise (i.e., fabricated and assembled steel sheet and 
bar products).\34\
---------------------------------------------------------------------------

    \33\ Id. at 15 and Exhibit II-16.
    \34\ Id. at 22 and Exhibit II-21.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of chassis from China are being, or are likely to 
be, sold in the United States at LTFV. Based on a comparison of CEP to 
NV in accordance with sections 772 and 773 of the Act, the estimated 
dumping margin for chassis from China is 188.05 percent.\35\
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    \35\ See Second China AD Supplement at Exhibit II-Supp2-2.
---------------------------------------------------------------------------

Initiation of LTFV Investigation

    Based upon our examination of the Petition on chassis from China 
and supplemental responses, we find that the Petition meets the 
requirements of section 732 of the Act. Therefore, we are initiating an 
AD investigation to determine whether imports of chassis from China are 
being, or are likely to be, sold in the United States at LTFV. In 
accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determination no later than 140 days after the date of this initiation.

Respondent Selection

    The petitioner named two companies in China as producers/exporters 
of chassis subject to the scope of this investigation.\36\ Accordingly, 
and in the absence of any contradictory information, Commerce intends 
to examine all known producers/exporters of chassis from China.
---------------------------------------------------------------------------

    \36\ See Volume I of the Petition at Exhibit I-10.
---------------------------------------------------------------------------

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
producers/exporters must submit a separate-rate application.\37\ The 
specific requirements for submitting a separate-rate application in a 
China investigation are outlined in detail in the application itself, 
which is available on E&C's website at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate application will be due 30 
days after publication of this initiation notice.\38\ Producers/
exporters who submit a separate-rate application and have been selected 
as mandatory respondents will be eligible for consideration for 
separate-rate status only if they respond to all parts of Commerce's AD 
questionnaire as mandatory respondents. Commerce requires that 
respondents from China submit a response to the separate-rate 
application by the deadline in order to receive consideration for 
separate-rate status.
---------------------------------------------------------------------------

    \37\ See Policy Bulletin 05.1: ``Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving NME Countries,'' (April 5, 2005), available at http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 05.1).
    \38\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
---------------------------------------------------------------------------

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that {Commerce{time}  will now 
assign in its NME Investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is 
referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\39\
---------------------------------------------------------------------------

    \39\ See Policy Bulletin 05.1 at 6 (emphasis added).
---------------------------------------------------------------------------

Distribution of Copies of the AD Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the Government of China via ACCESS.

[[Page 52556]]

Furthermore, to the extent practicable, Commerce will attempt to 
provide a copy of the public version of the Petition to each exporter 
named in the Petition, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of our initiation, as required by 
section 732(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of chassis from China are materially injuring, 
or threatening material injury to, a U.S. industry.\40\ A negative ITC 
determination will result in the investigation being terminated.\41\ 
Otherwise, this investigation will proceed according to statutory and 
regulatory time limits.
---------------------------------------------------------------------------

    \40\ See section 733(a) of the Act.
    \41\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Any party, when submitting factual 
information, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted \42\ and, if the 
information is submitted to rebut, clarify, or correct factual 
information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct.\43\ Time limits for 
the submission of factual information are addressed in 19 CFR 351.301, 
which provides specific time limits based on the type of factual 
information being submitted. Please review the regulations prior to 
submitting factual information in this investigation.
---------------------------------------------------------------------------

    \42\ See 19 CFR 351.301(b).
    \43\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301. For submissions that are due 
from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, Commerce will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, stand-alone submission; under limited circumstances we will 
grant untimely-filed requests for the extension of time limits. Parties 
should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information 
in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\44\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\45\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \44\ See section 782(b) of the Act.
    \45\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce 
published Antidumping and Countervailing Duty Proceedings: Documents 
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). 
Parties wishing to participate in this investigation should ensure that 
they meet the requirements of these procedures (e.g., the filing of 
letters of appearance as discussed at 19 CFR 351.103(d)). Note that 
Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information until 
further notice.\46\
---------------------------------------------------------------------------

    \46\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
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    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: August 19, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The merchandise covered by this investigation is chassis and 
subassemblies thereof, whether finished or unfinished, whether 
assembled or unassembled, whether coated or uncoated, regardless of 
the number of axles, for carriage of containers, or other payloads 
(including self-supporting payloads) for road, marine roll-on/roll-
off (RORO) and/or rail transport. Chassis are typically, but are not 
limited to, rectangular framed trailers with a suspension and axle 
system, wheels and tires, brakes, a lighting and electrical system, 
a coupling for towing behind a truck tractor, and a locking system 
or systems to secure the shipping container or containers to the 
chassis using twistlocks, slide pins or similar attachment devices 
to engage the corner fittings on the container or other payload.
    Subject merchandise includes, but is not limited to, the 
following subassemblies:
     Chassis frames, or sections of chassis frames, 
including kingpins or kingpin assemblies, bolsters consisting of 
transverse beams with locking or support mechanisms, goosenecks, 
drop assemblies, extension mechanisms and/or rear impact guards;
     Running gear assemblies or axle assemblies for 
connection to the chassis frame, whether fixed in nature or capable 
of sliding fore and aft or lifting up and lowering down, which may 
or may not include suspension(s) (mechanical or pneumatic), wheel 
end components, slack adjusters, axles, brake chambers, locking 
pins, and tires and wheels;
     Landing gear (legs) or landing gear assemblies, for 
connection to the chassis frame, capable of supporting the chassis 
when it is not engaged to a tractor; and
     Assemblies and/or components that connect to the 
chassis frame or a section of the chassis frame, such as, but not 
limited to, pintle hooks or B-trains (which include a fifth wheel), 
which are capable of connecting a chassis to a converter dolly or 
another chassis.
    Importation of any of these subassemblies, whether assembled or 
unassembled, constitutes an unfinished chassis for purposes of this 
investigation.
    Subject merchandise also includes chassis, whether finished or 
unfinished, entered with or for further assembly with components 
such as, but not limited to: Hub and drum assemblies, brake 
assemblies (either drum or disc), axles, brake chambers, suspensions 
and suspension components, wheel end

[[Page 52557]]

components, landing gear legs, spoke or disc wheels, tires, brake 
control systems, electrical harnesses and lighting systems.
    Processing of finished and unfinished chassis and components 
such as trimming, cutting, grinding, notching, punching, drilling, 
painting, coating, staining, finishing, assembly, or any other 
processing either in the country of manufacture of the in-scope 
product or in a third country does not remove the product from the 
scope. Inclusion of other components not identified as comprising 
the finished or unfinished chassis does not remove the product from 
the scope.
    This scope excludes dry van trailers, refrigerated van trailers 
and flatbed trailers. Dry van trailers are trailers with a wholly 
enclosed cargo space comprised of fixed sides, nose, floor and roof, 
with articulated panels (doors) across the rear and occasionally at 
selected places on the sides, with the cargo space being permanently 
incorporated in the trailer itself. Refrigerated van trailers are 
trailers with a wholly enclosed cargo space comprised of fixed 
sides, nose, floor and roof, with articulated panels (doors) across 
the rear and occasionally at selected places on the sides, with the 
cargo space being permanently incorporated in the trailer and being 
insulated, possessing specific thermal properties intended for use 
with self-contained refrigeration systems. Flatbed (or platform) 
trailers consist of load-carrying main frames and a solid, flat or 
stepped loading deck or floor permanently incorporated with and 
supported by frame rails and cross members.
    The finished and unfinished chassis subject to this 
investigation are typically classified in the Harmonized Tariff 
Schedule of the United States (HTSUS) at subheadings: 8716.39.0090 
and 8716.90.5060. Imports of finished and unfinished chassis may 
also enter under HTSUS subheading 8716.90.5010. While the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise under investigation is 
dispositive.

[FR Doc. 2020-18713 Filed 8-25-20; 8:45 am]
BILLING CODE 3510-DS-P

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