Certain Chassis and Subassemblies Thereof From the People's Republic of China: Countervailing Duty Order and Amended Final Affirmative Countervailing Duty Determination |
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Christian Marsh
Department of Commerce
10 May 2021
[Federal Register Volume 86, Number 88 (Monday, May 10, 2021)]
[Notices]
[Pages 24844-24845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09848]
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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: Countervailing Duty Order and Amended Final
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of
Commerce (Commerce) and the International Trade Commission (ITC),
Commerce is issuing a countervailing duty (CVD) order on certain
chassis and subassemblies thereof (chassis) from the People's Republic
of China (China). In addition, Commerce is amending its final
determination with respect to chassis from China to correct a
ministerial error.
DATES: Applicable May 10, 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
In accordance with sections 705(a), 705(d), and 777(i)(1) of the
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(c), on
March 22, 2021, Commerce published its affirmative final determination
that countervailable subsidies are being provided to producers and
exporters of chassis from China.\1\ In the investigation of chassis
from China, the Coalition of American Chassis Manufacturers (the
petitioner) submitted a timely allegation on the record that Commerce
made a ministerial error in the final CVD determination on chassis from
China.\2\ Section 705(e) of the Act and 19 CFR 351.224(f) define
ministerial errors as errors in addition, subtraction, or other
arithmetic function, clerical errors resulting from inaccurate copying,
duplication, or the like, and any other type of unintentional error
which Commerce considers ministerial. We reviewed the allegation and
determined that we made a ministerial error in the final CVD
determination on chassis from China. See ``Amendment to the Final
Determination'' section below for further discussion.
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\1\ See Certain Chassis and Subassemblies Thereof from the
People's Republic of China; Final Affirmative Countervailing Duty
Determination, 86 FR 15186 (March 22, 2021) (Final Determination),
and accompanying Issues and Decision Memorandum.
\2\ See Petitioner's Letter, ``Certain Chassis and Subassemblies
Thereof from the People's Republic of China: Ministerial Error
Allegations,'' dated March 22, 2021 (Ministerial Error Allegations).
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On May 3, 2021, the ITC notified Commerce of its affirmative final
determination that pursuant to sections 705(b)(1)(A)(i) and 705(d) of
the Act, an industry in the United States is materially injured by
reason of subsidized imports of subject merchandise from China.\3\
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\3\ See ITC's Letter, ``Notification of ITC Final
Determination,'' dated May 3, 2021 (ITC Notification Letter).
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Scope of the Order
The products covered by this order are certain chassis and
subassemblies thereof from China. For a complete description of the
scope of this order, see the appendix to this notice.
Amendment to the Final Determination
On March 22, 2021, the petitioner submitted a timely ministerial
error allegation regarding the Final Determination.\4\ Commerce
reviewed the record and, on April 8, 2021, agreed that the error
alleged by the petitioner constituted a ministerial error within the
meaning of section 705(e) of the Act and 19 CFR 351.224(f).\5\
Specifically, Commerce found that it made an error in calculating the
subsidy rates for inputs provided for less than adequate remuneration
to Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan CIMC Vehicle
Co., Ltd. and their cross-owned companies (collectively, CIMC).
Pursuant to 19 CFR 351.224(e), Commerce is amending the Final
Determination to reflect the correction of the ministerial error
described in the Ministerial Error Memorandum. Based on the correction,
the subsidy rate for CIMCs changed from 39.14 percent to 44.32 percent.
Because the all-others rate is based entirely on CIMC's ad valorem
subsidy rate, the all-others rate also changed from 39.14 percent to
44.32 percent.
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\4\ See Ministerial Error Allegations.
\5\ See Memorandum, ``Countervailing Duty Investigation of
Certain Chassis and Subassemblies Thereof from the People's Republic
of China: Ministerial Error Allegations in the Final
Determination,'' dated April 8, 2021 (Ministerial Error Memorandum)
at 1-2.
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Countervailing Duty Order
As stated above, on May 3, 2021, in accordance with section 705(d)
of the Act, the ITC notified Commerce of its final determination that
an industry in the United States is materially injured within the
meaning of section 705(b)(1)(A)(i) of the Act by reason of subsidized
imports of chassis from China.\6\ Therefore, in accordance with section
705(c)(2) of the Act, Commerce is issuing this CVD order. Because the
ITC determined that imports of chassis from China are materially
injuring a U.S. industry, unliquidated entries of such merchandise from
China, entered or withdrawn from warehouse for consumption, are subject
to the assessment of countervailing duties.
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\6\ See ITC Notification Letter.
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Therefore, in accordance with section 706(a) of the Act, Commerce
will direct U.S. Customs and Border Protection (CBP) to assess, upon
further instruction by Commerce, countervailing duties for all relevant
entries of chassis from China which are entered, or withdrawn from
warehouse, for consumption on or after January 4, 2021, the date of
publication of the Preliminary Determination,\7\ but will not include
entries occurring after the expiration of the provisional measures
period and before the publication of the ITC's final injury
determination under section 705(b) of the Act, as further described in
the ``Provisional Measures'' section of this notice.\8\
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\7\ 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.
\8\ In the Final Determination, Commerce inadvertently stated
that we would instruct 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.'' The
Preliminary Determination was published on January 4, 2021, which is
the date reflected in our instructions to CBP.
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Continuation of Suspension of Liquidation and Cash Deposits
Except as noted in the ``Provisional Measures'' section of this
notice, in accordance with section 706(a)(1) of the Act, Commerce will
instruct CBP to continue to suspend liquidation on all relevant entries
of chassis from China. These instructions suspending liquidation will
remain in effect until further notice.
Commerce will also instruct CBP to require cash deposits equal to
the net countervailable subsidy rates indicated in the table below.
Accordingly, effective on the date of publication in the Federal
Register of the notice of the ITC's final affirmative injury
determination, CBP must require, at the same time as importers would
deposit estimated normal customs duties on
[[Page 24845]]
subject merchandise, a cash deposit equal to the rates listed in the
table below.
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Subsidy
Company rate
(percent)
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Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan CIMC 44.32
Vehicle Co., Ltd.\9\.......................................
All Others.................................................. 44.32
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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.
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Provisional Measures
Section 703(d) of the Act states that the suspension of liquidation
pursuant to an affirmative preliminary determination may not remain in
effect for more than four months. Commerce published the Preliminary
Determination on January 4, 2021.\10\
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\10\ See Preliminary Determination.
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The provisional measures period, beginning on the date of
publication of the Preliminary Determination, ended on May 3, 2021.
Therefore, in accordance with section 703(d) of the Act and our
practice, Commerce will instruct CBP to terminate the suspension of
liquidation and to liquidate, without regard to countervailing duties,
unliquidated entries of chassis from China entered, or withdrawn from
warehouse, for consumption after May 3, 2021, the final day on which
the provisional measures were in effect, until and through the day
preceding the date of publication of the ITC's final affirmative injury
determination in the Federal Register. Suspension of liquidation and
the collection of cash deposits will resume on the date of publication
of the ITC's final determination in the Federal Register.
Notification to Interested Parties
This notice constitutes the CVD order with respect to chassis from
China pursuant to section 706(a) of the Act. Interested parties can
find a list of CVD orders currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
This amended final determination and order is issued and published
in accordance with sections 705(d) and 706(a) of the Act and 19 CFR
351.211(b) and 351.224(e).
Dated: May 4, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Order
The merchandise covered by this order 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
order.
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 order, 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 order 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 order is dispositive.
[FR Doc. 2021-09848 Filed 5-7-21; 8:45 am]
BILLING CODE 3510-DS-P