Certain Chassis and Subassemblies Thereof From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value |
|---|
|
Christian Marsh
Department of Commerce
17 May 2021
[Federal Register Volume 86, Number 93 (Monday, May 17, 2021)]
[Notices]
[Pages 26694-26696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10346]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-135]
Certain Chassis and Subassemblies Thereof From the People's
Republic of China: Final Affirmative Determination of Sales at Less
Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that certain
chassis and subassemblies thereof (chassis) from the People's Republic
of China (China) are being, or are likely to be, sold in the United
States at less than fair value (LTFV). The period of investigation
(POI) is January 1, 2020, through June 30, 2020.
DATES: Applicable May 17, 2021.
FOR FURTHER INFORMATION CONTACT: Hermes Pinilla or Mary Kolberg, 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) 482-3477 or (202) 482-1785,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 4, 2021, Commerce published its Preliminary Determination
in the antidumping duty investigation of chassis from China.\1\ A
summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, may be found in the
Issues and Decision Memorandum.\2\
---------------------------------------------------------------------------
\1\ See Certain Chassis and Subassemblies Thereof from the
People's Republic of China: Preliminary Affirmative Determination of
Sales at Less Than Fair Value, 86 FR 12616 (March 4, 2021)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
\2\ See Memorandum, ``Certain Chassis and Subassemblies Thereof
from the People's Republic of China: Decision Memorandum for the
Final Affirmative Determination of Sales at Less-Than-Fair-Value,''
dated concurrently with, and hereby adopted by, this notice (Issues
and Decision Memorandum).
---------------------------------------------------------------------------
Period of Investigation
The POI is January 1, 2020, through June 30, 2020.
Scope of the Investigation
The products covered by this investigation are certain chassis and
subassemblies thereof from China. For a full description of the scope
of this investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\3\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\4\ Certain interested
parties commented on the scope of the investigations as they appeared
in the Initiation Notice and we addressed these comments in the
Preliminary Scope Decision Memorandum,\5\ modifying the scope of this
and the companion countervailing duty (CVD) investigation.
Specifically, we removed individual components from the definition of
in-scope subassemblies and added language to clarify that the
individual components that enter separately are not covered by the
scope of these investigations. We established a period for parties to
address issues in scope case and rebuttal briefs.\6\ We received scope
comments and addressed them in the Final Scope Decision Memorandum.\7\
---------------------------------------------------------------------------
\3\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\4\ See Certain Chassis and Subassemblies Thereof from the
People's Republic of China: Initiation of Less-Than-Fair-Value
Investigation, 85 FR 52552 (August 26, 2020) (Initiation Notice).
\5\ 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).
\6\ See Preliminary Scope Decision Memorandum.
\7\ See Memorandum, ``Antidumping 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).
---------------------------------------------------------------------------
Analysis of Comments Received
All issues raised in the case briefs and rebuttal briefs submitted
by interested parties in this proceeding are discussed in the Issues
and Decision Memorandum. A list of the issues raised by parties and
responded to by Commerce is attached to this notice as Appendix II. The
Issues and Decision Memorandum is a public document and is available
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. In
addition, a complete version of the Issues and Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn./.
Changes Since the Preliminary Determination
Pursuant to section 772(c)(1)(C) of the Act, Commerce normally
adjusts the dumping margin for countervailable export subsidies. In the
Preliminary Determination, we determined a countervailable export
subsidy rate of 5.77 percent ad valorem based on the export buyer's
credit. However, for the final determination of the concurrent CVD
investigation, Commerce adjusted its calculation of the export subsidy
rate because we determined that CIMC benefitted from several subsidy
programs contingent on exports totaling 11.00 percent ad valorem for
the China-wide entity. Accordingly, Commerce adjusted the calculated
estimated weighted-average dumping margin for this investigation by the
offset.\8\
---------------------------------------------------------------------------
\8\ The export subsidy rate determined in the final
determination of the companion CVD investigation is 11.00 percent.
See Chassis and Subassemblies Thereof from the People's Republic of
China: Final Affirmative Countervailing Duty Determination, 86 FR
15186 (March 22, 2021) (Chassis CVD Final Determination), and
accompanying Issues and Decision Memorandum (IDM) at 8.
---------------------------------------------------------------------------
[[Page 26695]]
China-Wide Entity and Use of Adverse Facts Available
We continue to find that the use of facts available is warranted in
determining the rate of the China-wide entity pursuant to sections
776(a)(1) and (a)(2)(A)-(C) of the Act. Further, use of adverse facts
available (AFA) is warranted because the China-wide entity did not
cooperate to the best of its ability to comply with our request for
information and, accordingly, we applied adverse inferences in
selecting from the facts available, pursuant to section 776(b) of the
Act and 19 CFR 351.308(a).
The China-wide entity includes mandatory respondents Dongguan CIMC
Vehicle Co., Ltd. and Qingdao CIMC Special Vehicles Co., Ltd.
(collectively, CIMC) and Guangdong Fuwa Heavy Industries Co., Ltd.
(Fuwa), as well as the companies that received, but did not complete,
Commerce's quantity and value questionnaire. Because CIMC submitted its
supplemental questionnaire responses in an untimely manner, necessary
information regarding our separate rate inquiries is not available on
the record. Further, Fuwa did not provide information on all
shareholders and ultimate shareholders. Therefore, we continue to find
that CIMC and Fuwa have not demonstrated eligibility for a separate
rate. Because none of the companies responded to the best of their
ability to Commerce's questionnaires, we assigned the highest margin
alleged in the petition, 188.05 percent, to the China-wide entity.
Combination Rates
Because no companies qualified for a separate rate, producer/
exporter combination rates were not calculated.
Final Determination
Commerce determines that the estimated weighted-average dumping
margin is as follows:
----------------------------------------------------------------------------------------------------------------
Estimated weighted-
Estimated weighted- average dumping margin
Producer/exporter average dumping margin adjusted for export
(percent) subsidy offset(s)
(percent)
----------------------------------------------------------------------------------------------------------------
China-Wide Entity........................................... 188.05 177.05
----------------------------------------------------------------------------------------------------------------
Disclosure
The dumping margin calculations in the Preliminary Determination
were based on AFA.\9\ As noted above, there are no changes to the
calculations for the Final Determination. Thus, no additional
disclosure is necessary for this final determination.
---------------------------------------------------------------------------
\9\ See Preliminary Determination.
---------------------------------------------------------------------------
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 735(c)(1)(B) of the Act, Commerce will instruct U.S. Customs
and Border Protection (CBP) to continue to suspend liquidation of
entries of subject merchandise as described in the ``Scope of the
Investigation'' section entered, or withdrawn from warehouse, for
consumption, on or after March 4, 2021, which is the date of
publication of the Preliminary Determination in the Federal Register.
Pursuant to section 735(c)(1)(B)(ii) of the Act, upon the
publication of this notice, Commerce will instruct CBP to require a
cash deposit equal to the weighted-average amount by which the normal
value exceeds U.S. price as follows: (1) For all combinations of
Chinese producers/exporters of subject merchandise that have not
established eligibility for their own separate rates, the cash deposit
rate will be equal to the estimated weighted-average dumping margin
established for the China-wide entity; and (2) for all third-country
exporters of subject merchandise not listed in the table above, the
cash deposit rate is the cash deposit rate applicable to the Chinese
producer/exporter combination (or China-wide entity) that supplied that
third-country exporter. These suspension of liquidation instructions
will remain in effect until further notice.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion CVD
proceeding when CVD provisional measures are in effect. Accordingly,
where Commerce makes an affirmative determination for domestic subsidy
pass-through or export subsidies, Commerce offsets the calculated
estimated weighted-average dumping margin by the appropriate rate(s).
In this case, there was no demonstration on the record that an
adjustment for domestic subsidies was warranted in the Preliminary
Determination, which remains unchanged for the final determination.\10\
However, with respect to export subsidies for all respondents, Commerce
issued the final determination of the concurrent CVD investigation of
chassis from China, in which it found export-contingent subsidies of
11.00 percent for CIMC.\11\ Therefore, we have deducted export
subsidies from the final margin and adjusted the cash deposit rate in
the chart above. However, suspension of liquidation for provisional
measures in the companion CVD case has been discontinued; therefore, we
are not instructing CBP to collect cash deposits based upon the
adjusted estimated weighted-average dumping margin for those subsidies
at this time.
---------------------------------------------------------------------------
\10\ See section VII. Adjustment under Section 777A(f) of the
Act in the Preliminary Determination PDM.
\11\ See Chassis CVD Final Determination IDM at 8.
---------------------------------------------------------------------------
International Trade Commission (ITC) Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of our final affirmative determination of sales at LTFV. Commerce
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, without the written consent of the Assistant
Secretary for Enforcement and Compliance. Because Commerce's final
determination is affirmative, in accordance with section 735(b)(2) of
the Act, the ITC will make its final determination as to whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports or sales (or the
likelihood of sales) for importation of chassis from China no later
than 45 days after this final determination. If the ITC determines that
such injury does exist, Commerce
[[Page 26696]]
will issue an AD order directing CBP to assess, upon further
instructions by Commerce, antidumping duties on all imports of the
subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section of this notice.
Notification Regarding Administrative Protective Order (APO)
This notice will serve as a final reminder to parties subject to an
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 sanctionable violation.
Notification to Interested Parties
This determination is issued and published pursuant to sections
735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).
Dated: May 11, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation consists of
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.
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. Period of Investigation
IV. Scope of Investigation
V. Adjustment under Section 777A(f) of the Act
VI. Adjustment to Cash Deposit Rate for Export Subsidies
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Discussion of the Issues
Comment 1: Whether Total AFA is Warranted for CIMC
Comment 2: Whether CIMC is Eligible for a Separate Rate
IX. Recommendation
[FR Doc. 2021-10346 Filed 5-14-21; 8:45 am]
BILLING CODE 3510-DS-P