Certain Chassis and Subassemblies Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination

Christian Marsh
Department of Commerce
22 March 2021

[Federal Register Volume 86, Number 53 (Monday, March 22, 2021)]
[Notices]
[Pages 15186-15188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05815]



[[Page 15186]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-136]


Certain Chassis and Subassemblies Thereof From the People's 
Republic of China: Final Affirmative Countervailing Duty Determination

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 chassis and subassemblies thereof (chassis) from the 
People's Republic of China (China). The period of investigation is 
January 1, 2019, through December 31, 2019.

DATES: Applicable March 22, 2021.

FOR FURTHER INFORMATION CONTACT: William Langley or Nicholas 
Czajkowski, 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 
or (202) 482-1395, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The petitioner in this investigation is the Coalition of American 
Chassis Manufacturers. In addition to the Government of China (GOC), 
the selected mandatory respondents are Qingdao CIMC Special Vehicles 
Co., Ltd. (QCVC) and Dongguan CIMC Vehicle Co., Ltd. (DCVC) 
(collectively, with other cross-owned companies, CIMC).
    On January 4, 2021 Commerce published in the Federal Register the 
Preliminary Determination of this investigation.\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 
parties for this final determination, may be found in the Issues and 
Decision Memorandum.\2\ 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. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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    \1\ See Certain Chassis and Subassemblies Thereof from the 
People's Republic of China: Preliminary Affirmative Countervailing 
Duty Determination, 86 FR 56 (January 4, 2021) (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 Chassis and Subassemblies Thereof from the People's Republic 
of China,'' dated concurrently with, and hereby adopted by, this 
notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are certain chassis and 
subassemblies thereof from China. For a complete description of the 
scope of this investigation, see Appendix I.

Scope Comments

    During the course of this and the concurrent antidumping duty (AD) 
investigation, Commerce received scope comments from interested 
parties. Commerce issued a Preliminary Scope Decision Memorandum to 
address these comments.\3\ Subsequently, we received comments from 
interested parties on the Preliminary Scope Decision Memorandum, which 
we address in the Final Scope Decision Memorandum, dated 
contemporaneously with, and hereby adopted by, this final 
determination.\4\ Commerce is modifying the scope language as it 
appeared in the Preliminary Determination. See Appendix I for the final 
scope of this investigation.
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    \3\ See Memorandum, ``Certain Chassis and Subassemblies Thereof 
from the People's Republic of China: Scope Comments Preliminary 
Decision Memorandum,'' dated February 9, 2021 (Preliminary Scope 
Decision Memorandum).
    \4\ See Memorandum, ``Antidumping Duty and Countervailing Duty 
Investigations of Certain Chassis and Subassemblies Thereof from the 
People's Republic of China: Scope Comments Decision Memorandum for 
the Final Determinations,'' dated March 15, 2021 (Final Scope 
Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
raised by parties raised is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (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.\5\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \5\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    In making this final determination, Commerce is relying, in part, 
on facts otherwise available, including adverse facts available (AFA), 
pursuant to sections 776(a) and (b) of the Act. For a full discussion 
of our application of AFA, see the Preliminary Determination and the 
section ``Use of Facts Otherwise Available and Adverse Inference'' in 
the accompanying Issues and Decision Memorandum.\6\
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    \6\ See Preliminary Decision Memorandum at ``Use of Facts 
Otherwise Available and Adverse Inferences''; see also Issues and 
Decision Memorandum at ``Use of Facts Otherwise Available and 
Adverse Inference.''
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, as well as additional information collected in questionnaires 
issued subsequent to the Preliminary Determination, we made certain 
changes to CIMC's subsidy rate calculations. For a discussion of these 
changes, see the Issues and Decision Memorandum.

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Act.\7\
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    \7\ See Commerce's Letter, ``Countervailing Duty Investigation 
of Certain Chassis and Subassemblies Thereof: CIMC Vehicles (Group) 
Co., Ltd. Verification Questionnaire,'' dated February 3, 2021.
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All-Others Rate

    As discussed in the Preliminary Determination, Commerce selected 
the all-others rate using the countervailable subsidy rate calculated 
for the mandatory respondent in accordance with section 705(c)(5)(A) of 
the Act.\8\ Section 705(c)(5)(A) of the Act provides that this rate 
shall be an amount equal to the weighted average of the estimated 
subsidy rates established for those companies individually examined, 
excluding any zero and de minimis rates and any rates based entirely 
under section 776 of the Act.
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    \8\ See Preliminary Determination.
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    In this investigation, Commerce calculated a rate for CIMC that is 
not

[[Page 15187]]

zero, de minimis, or based entirely on facts otherwise available. 
Consequently, the rate calculated for CIMC is also assigned as the rate 
for all other producers and exporters.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:
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    \9\ Commerce finds the following companies to be cross-owned 
with Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan CIMC 
Vehicle Co., Ltd.: CIMC Vehicles (Group) Co., Ltd.; Shenzhen CIMC 
Vehicle Co., Ltd.; Zhumadian CIMC Huajun Casting Co., Ltd.; China 
International Marine Containers (Group) Co., Ltd.; Liangshan CIMC 
Dongyue Vehicles Co., Ltd.; Shandong Wanshida Special Vehicle 
Manufacturing Co., Ltd.; Yangzhou CIMC Tonghua Special Vehicles Co., 
Ltd.; Zhumadian CIMC Huajun Vehicle Co., Ltd.; Gansu CIMC Huajun 
Vehicles Co., Ltd.; CIMC Vehicles (Liaoning) Co., Ltd.; and 
Zhumadian CIMC Wanjia Axle Co., Ltd.

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan CIMC          39.14
 Vehicles Co., Ltd.\9\......................................
All Others..................................................       39.14
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Disclosure

    Commerce intends to disclose to interested parties its calculations 
and analysis performed in this 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).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries of 
subject merchandise from China that were entered, or withdrawn from 
warehouse, for consumption, effective January 4, 2020, which is the 
date of publication of the Preliminary Determination in the Federal 
Register.
    In accordance with section 705(c)(1)(C) of the Act, we are 
directing CBP to continue to suspend liquidation of all imports of the 
subject merchandise from China that are entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. The suspension of liquidation 
instructions will remain in effect until further notice. We are also 
directing CBP to collect countervailing duty deposits at the rates 
described above.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, and 
continue to require a cash deposit of estimated countervailing duties 
for such entries of subject merchandise in the amounts indicated above, 
in accordance with section 706(a) of the Act. 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.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of chassis from 
China. Because the final determination in this proceeding is 
affirmative, in accordance with section 705(b) 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 corrosion inhibitors from China no 
later than 45 days after our final determination. In addition, we are 
making available to the ITC all non-privileged and nonproprietary 
information related to this investigation. If the ITC determines that 
material injury or threat of material injury does not exist, this 
proceeding will be terminated and all cash deposits will be refunded. 
If the ITC determines that such injury does exist, Commerce will issue 
a countervailing duty order directing CBP to assess, upon further 
instruction by Commerce, countervailing duties on all imports of the 
subject merchandise that are entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation, as discussed above in the ``Continuation of Suspension of 
Liquidation'' section. We will allow the ITC access to all privileged 
and business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Notification Regarding APO

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to the APO of their responsibility concerning the destruction 
of proprietary information disclosed under APO in accordance with 19 
CFR 351.305(a)(3). Timely written notification of the return/
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 violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 771(i) of the Act, and 19 CFR 351.210(c).

    Dated: March 15, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

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 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 assemblies, for connection to the chassis 
frame, capable of supporting the chassis when it is not engaged to a 
tractor; and
     Assemblies 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.

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    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 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.
    Individual components entered and sold by themselves are not 
subject to the investigation, but components entered with or for 
further assembly with a finished or unfinished chassis are subject 
merchandise. A finished chassis is ultimately comprised of several 
different types of subassemblies. Within each subassembly there are 
numerous components that comprise a given subassembly.
    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.

Appendix II

List of Topics Discussed in the Final Decision Memorandum

I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Whether CIMC and Its Cross-Owned Affiliates are 
State-Owned
    Comment 2: Whether the Provision of International Ocean Shipping 
Services for LTAR is Countervailable
    Comment 3: Whether Shipping Services Provided by Non-Chinese 
Firms and For Merchandise Not Subject to the Investigation are 
Countervailable
    Comment 4: Whether the Application of Adverse Facts Available to 
the Export Buyer's Credit Program is Warranted
    Comment 5: Whether the Application of Adverse Facts Available is 
Warranted in Finding the Provision of Electricity for LTAR 
Countervailable
    Comment 6: Whether Electricity Surcharges are Countervailable
    Comment 7: Whether Commerce Should use Alternative Benchmark 
Rates for Land-Use Rights
    Comment 8: Whether Intercompany Loans are Countervailable
    Comment 9: Whether Commercial Loans are Countervailable
    Comment 10: Whether Subsidies to Huajun Casting's Production are 
Attributable to Chassis Production
    Comment 11: Whether Commerce Should Have Initiated an 
Investigation into Currency Undervaluation
    Comment 12: Whether CIMC Failed Verification with Respect to 
Reported Input Purchases
VII. Recommendation

[FR Doc. 2021-05815 Filed 3-19-21; 8:45 am]
BILLING CODE 3510-DS-P