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Certain Brake Drums From the People's Republic of China and the Republic of T[uuml]rkiye: Initiation of Less-Than-Fair-Value Investigations Publication: Federal Register Agency: International Trade Administration Byline: Abdelali Elouaradia Date: 17 July 2024 Subjects: American Government 
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[Federal Register Volume 89, Number 137 (Wednesday, July 17, 2024)]
[Notices]
[Pages 58116-58122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15714]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-174, A-489-853]
Certain Brake Drums From the People's Republic of China and the
Republic of T[uuml]rkiye: Initiation of Less-Than-Fair-Value
Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable July 10, 2024.
FOR FURTHER INFORMATION CONTACT: Samuel Frost (the People's Republic of
China (China)) at (202) 482-8180 and Eric Hawkins (the Republic of
T[uuml]rkiye (T[uuml]rkiye)) at (202) 482-1988, AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On June 20, 2024, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of certain
brake drums (brake drums) from China and T[uuml]rkiye filed in proper
form on behalf of Webb Wheel Products, Inc. (the petitioner), a U.S.
producer of brake drums.\1\ The Petitions were accompanied by
countervailing duty (CVD) petitions concerning imports of brake drums
from China and T[uuml]rkiye.\2\
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\1\ See Petitioner's Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties,'' dated June 20, 2024 (the
Petitions).
\2\ Id.
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Between June 24 and July 5, 2024, Commerce requested supplemental
information pertaining to certain aspects of the Petitions in
supplemental questionnaires.\3\ The petitioner responded to Commerce's
supplemental questionnaires between June 28 and July 8, 2024.\4\
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\3\ See Commerce's Letters, ``Supplemental Questions,'' dated
June 24, 2024 (General Issues Questionnaire), Country-Specific
Supplemental Questionnaires: China Supplemental and T[uuml]rkiye
Supplemental, dated June 24, 2024, and ``Supplemental Questions,''
dated July 5, 2024; see also Memoranda, ``Phone Call with Counsel to
the Petitioner,'' dated July 2, 2024 (July 2 Memorandum).
\4\ See Petitioner's Letters, ``Supplemental Questionnaire
Response, Volume I,'' dated June 28, 2024 (First General Issues
Supplement); Country-Specific AD Supplemental Responses, dated Jun
28, 2024; ``Supplemental Questionnaire Response, Volume I,'' dated
July 5, 2024 (Second General Issues Supplement); ``Supplemental
Questionnaire Response,'' dated July 5, 2024; and ``Supplemental
Questionnaire Response, Volume I,'' dated July 8, 2024 (Third
General Issues 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 brake drums
from China and T[uuml]rkiye 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 brake drums
industry in the United States. Consistent with section 732(b)(1) of the
Act, the Petitions were accompanied by information reasonably available
to the petitioner supporting its allegations.
Commerce finds that the petitioner filed the Petitions on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(C) of the Act.
[[Page 58117]]
Commerce also finds that the petitioner demonstrated sufficient
industry support for the initiation of the requested LTFV
investigations.\5\
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\5\ See section on ``Determination of Industry Support for the
Petitions,'' infra.
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Periods of Investigation
Because the Petitions were filed on June 20, 2024, pursuant to 19
CFR 351.204(b)(1), the period of investigation (POI) for the LTFV
investigation from T[uuml]rkiye is April 1, 2023, through March 31,
2024. Because China is a non-market economy (NME) country, pursuant to
19 CFR 351.204(b)(1), the POI for the LTFV investigation from China is
October 1, 2023, through March 31, 2024.
Scope of the Investigations
The products covered by these investigations are brake drums from
China and T[uuml]rkiye. For a full description of the scope of these
investigations, see the appendix to this notice.
Comments on the Scope of the Investigations
Between June 24 and July 2, 2024, Commerce requested information
and clarification from the petitioner regarding the proposed scope to
ensure that the scope language in the Petitions is an accurate
reflection of the products for which the domestic industry is seeking
relief.\6\ Between June 28 and July 5, 2024, the petitioner provided
clarifications and revised the scope.\7\ The description of merchandise
covered by these investigations, as described in the appendix to this
notice, reflects these clarifications.
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\6\ See First General Issues Questionnaire; see also July 2
Memorandum.
\7\ See First General Issues Supplement at 1-2 and Exhibit I-S1-
3; see also Second General Issues Supplement at 1-2.
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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).\8\ Commerce will consider all scope
comments received from interested parties and, if necessary, will
consult with interested parties prior to the issuance of the
preliminary determinations. If scope comments include factual
information,\9\ all such factual information should be limited to
public information. To facilitate preparation of its questionnaires,
Commerce requests that scope comments be submitted by 5:00 p.m. Eastern
Time (ET) on July 30, 2024, which is 20 calendar days from the
signature date of this notice.\10\ Any rebuttal comments, which may
include factual information, and should also be limited to public
information, must be filed by 5:00 p.m. ET on August 9, 2024, which is
10 calendar days from the initial comment deadline.
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\8\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR
351.312.
\9\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\10\ See 19 CFR 351.303(b)(1).
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Commerce requests that any factual information that parties
consider relevant to the scope of these investigations be submitted
during that period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigations may be relevant, the party must contact Commerce and
request permission to submit the additional information. All scope
comments must be filed simultaneously on the records of the concurrent
LTFV 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.\11\ An electronically filed document must be received
successfully in its entirety by the time and date it is due.
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\11\ 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 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.
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Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of brake drums to be
reported in response to Commerce's AD questionnaires. This information
will be used to identify the key physical characteristics of the
subject merchandise in order to report the relevant factors of
production (FOP) or cost of production (COP) 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. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) general product
characteristics; and (2) product comparison criteria. We note that it
is not always appropriate to use all product characteristics as product
comparison criteria. We base product comparison criteria on meaningful
commercial differences among products. In other words, although there
may be some physical product characteristics utilized by manufacturers
to describe brake drums, it may be that only a select few product
characteristics take into account commercially meaningful physical
characteristics. In addition, interested parties may comment on the
order in which the physical characteristics should be used in matching
products. Generally, Commerce attempts to list the most important
physical characteristics first and the least important characteristics
last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all product
characteristics comments must be filed by 5:00 p.m. ET on July 30,
2024, which is 20 calendar days from the signature date of this
notice.\12\ Any rebuttal comments must be filed by 5:00 p.m. ET on
August 9, 2024, which is 10 calendar days from the initial comment
deadline. All comments and submissions to Commerce must be filed
electronically using ACCESS, as explained above, on the record of each
of the LTFV investigations.
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\12\ See 19 CFR 351.303(b)(1).
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Determination of Industry Support for the Petitions
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
[[Page 58118]]
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 U.S. 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,\13\ 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.\14\
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\13\ See section 771(10) of the Act.
\14\ 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 Algoma Steel Corp., Ltd. v. United
States, 865 F.2d 240 (Fed. Cir. 1989)).
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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
petitions).
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 investigations.\15\ Based on our analysis of the information
submitted on the record, we have determined that brake drums, as
defined in the scope, constitute a single domestic like product, and we
have analyzed industry support in terms of that domestic like
product.\16\
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\15\ See Petitions at Volume I (pages I-9 through I-13 and
Exhibits I-2 through I-4 and I-7); see also First General Issues
Supplement at 4-7 and Exhibits I-SI-5 through I-S1-7); and Third
General Issues Supplement at 1-3.
\16\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Checklists, ``Certain Brake Drums from the People's Republic of
China and the Republic of T[uuml]rkiye,'' dated concurrently with,
and hereby adopted by, this notice (Country-Specific AD Initiation
Checklists), at Attachment II, Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions Covering Certain Brake
Drums from the People's Republic of China and the Republic of
T[uuml]rkiye (Attachment II). These checklists are on file
electronically via ACCESS.
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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 Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
production of the domestic like product in 2023.\17\ The petitioner
estimated the 2023 production of the domestic like product for the only
other known producer of brake drums in the United States.\18\ The
petitioner compared its production to the estimated total 2023
production of the domestic like product for the entire domestic
industry.\19\ We relied on data provided by the petitioner for purposes
of measuring industry support.\20\
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\17\ See Petitions at Volume I (pages I-2 and I-3 and Exhibit I-
1); see also First General Issues Supplement at 2-3 and Exhibit I-
S1-2.
\18\ See Petitions at Volume I (pages I-2 and I-3 and Exhibits
I-1 and I-7); see also First General Issues Supplement at 2-3 and
Exhibits I-S1-1 and I-S1-2.
\19\ See Petitions at Volume I (pages I-2 and I-3 and Exhibit I-
1); see also First General Issues Supplement at 3 and Exhibit I-S1-
2.
\20\ See Petition at Volume I (pages I-2 and I-3 and Exhibits I-
1 and I-7); see also First General Issues Supplement at 2-4 and
Exhibits I-S1-1, I-S1-2, and I-S4; and Third General Issues
Supplement at 1-3. For further discussion, see Attachment II of the
Country-Specific AD Initiation Checklists.
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Our review of the data provided in the Petitions, the First General
Issues Supplement, the Third General Issues Supplement, and other
information readily available to Commerce indicates that the petitioner
has established industry support for the Petitions.\21\ First, the
Petitions 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
Petitions 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 Petitions 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
Petitions.\24\ Accordingly, Commerce determines that the Petitions were
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 Country-Specific AD Initiation
Checklists.
\22\ Id.; see also section 732(c)(4)(D) of the Act.
\23\ See Attachment II of the Country-Specific AD Initiation
Checklists.
\24\ Id.
\25\ Id.
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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 argues that
subject imports from China and T[uuml]rkiye individually exceed the
negligibility threshold provided for under section 771(24)(A) of the
Act.\26\
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\26\ See Petitions at Volume I (pages I-13 and I-14 and Exhibit
I-8).
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The petitioner contends that the industry's injured condition is
illustrated by the significant and increasing volume of subject
imports; decreased market share; underselling and price depression and/
or suppression; lost sales and revenues; decline in capacity
utilization, production, and U.S. sales quantity; decline in
production-related workers; and decline in operating margins.\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\
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\27\ Id. at I-13 through I-36 and Exhibits I-7 through I-25; see
also First General Issues Supplement at 7 and Exhibits I-S1-8 and I-
S1-9.
\28\ See Country-Specific AD Initiation Checklists at Attachment
III, Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Certain Brake Drums from the People's Republic of China and
the Republic of T[uuml]rkiye.
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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 an LTFV
investigation of imports of brake drums from China and T[uuml]rkiye.
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
Country-Specific AD Initiation Checklists.
U.S. Price
For China and T[uuml]rkiye, the petitioner based export price (EP)
on pricing information for brake drums produced
[[Page 58119]]
in and exported from the respective countries and sold, or offered for
sale, in the United States.\29\ For each country, the petitioner made
certain adjustments to U.S. price to calculate a net ex-factory U.S.
price, where applicable.\30\
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\29\ See Country-Specific AD Initiation Checklists.
\30\ Id.
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Normal Value 31
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\31\ In accordance with section 773(b)(2) of the Act, for the
T[uuml]rkiye investigation, Commerce will request information
necessary to calculate the constructed value (CV) and COP to
determine whether there are reasonable grounds to believe or suspect
that sales of the foreign like product have been made at prices that
represent less than the COP of the product.
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For T[uuml]rkiye, the petitioner based NV on a home market price
obtained for brake drums produced in and sold, or offered for sale, in
T[uuml]rkiye during the applicable time period.\32\ The petitioner made
certain adjustments to the home market price to calculate a net ex-
factory home market price, where applicable.\33\
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\32\ See T[uuml]rkiye AD Initiation Checklist.
\33\ Id.
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Commerce considers China to be an NME country.\34\ 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 the China LTFV investigation.
Accordingly, we base NV on FOPs valued in a surrogate market economy
country in accordance with section 773(c) of the Act.
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\34\ See, e.g., Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Preliminary Affirmative
Determination of Sales at Less Than Fair Value and Preliminary
Affirmative Determination of Critical Circumstances, 88 FR 15372
(March 13, 2023), and accompanying Preliminary Decision Memorandum
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China: Final Affirmative Determination
of Sales at Less-Than-Fair Value and Final Affirmative Determination
of Critical Circumstances, 88 FR 34485 (May 30, 2023).
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The petitioner claims that Malaysia is an appropriate surrogate
country for China because it is a market economy that is at a level of
economic development comparable to that of China and is a significant
producer of comparable merchandise.\35\ The petitioner provided
publicly available information from Malaysia to value all FOPs except
labor.\36\ Consistent with Commerce's recent practice in cases
involving Malaysia as a surrogate country,\37\ to value labor, the
petitioner provided labor statistics from another surrogate country,
Romania.\38\ Based on the information provided by the petitioner, we
believe it is appropriate to use Malaysia as a surrogate country for
China to value all FOPs except labor and to value labor using labor
statistics from Romania for initiation purposes.
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\35\ See China AD Initiation Checklist.
\36\ Id.
\37\ See, e.g., Certain Collated Steel Staples from the People's
Republic of China: Final Results of Antidumping Duty Administrative
Review; and Final Determination of No Shipments; 2021-2022, 88 FR
85242 (December 7, 2023), and accompanying Issues and Decision
Memorandum (IDM) at Comment 2; and Light-Walled Rectangular Pipe and
Tube from the People's Republic of China: Final Results of
Antidumping Duty Administrative Review, 88 FR 15671 (March 14,
2023), and accompanying IDM at Comment 2.
\38\ See China AD Initiation Checklist.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selection 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
Because information regarding the volume of inputs consumed by
Chinese producers/exporters was not reasonably available, the
petitioner used its own product-specific consumption rates as a
surrogate to value Chinese manufacturers' FOPs.\39\ Additionally, the
petitioner calculated factory overhead, selling, general, and
administrative expenses, and profit based on the experience of a
Malaysian producer of comparable merchandise.\40\
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\39\ Id.
\40\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of brake drums from China and T[uuml]rkiye are
being, or are likely to be, sold in the United States at LTFV. Based on
comparisons of EP to NV in accordance with sections 772 and 773 of the
Act, the estimated dumping margins for the countries covered by this
initiation are as follows: (1) China--160.79 percent ad valorem and (2)
T[uuml]rkiye--149.29 percent ad valorem.\41\
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\41\ See Country-Specific AD Initiation Checklists.
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Initiation of LTFV Investigations
Based upon the examination of the Petitions and supplemental
questionnaire responses, we find that they meet the requirements of
section 732 of the Act. Therefore, we are initiating LTFV
investigations to determine whether imports of brake drums from China
and T[uuml]rkiye 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
determinations no later than 140 days after the date of these
initiations.
Respondent Selection
T[uuml]rkiye
In the Petition, the petitioner named 19 companies in T[uuml]rkiye
as producers and/or exporters of brake drums.\42\ In the event Commerce
determines that the number of companies is large, and it cannot
individually examine each company based upon Commerce's resources,
where appropriate, Commerce intends to select mandatory respondents
based on quantity and value (Q&V) questionnaires issued to potential
respondents. Following standard practice in AD investigations involving
market economy countries, Commerce would normally select respondents
based on U.S. Customs and Border Protection (CBP) entry data for
imports under the appropriate Harmonized Tariff Schedule of the United
States (HTSUS) subheadings listed in the scope of the investigations.
However, for these investigations, the main HTSUS subheading under
which the subject merchandise would enter (8708.30.5020) is a basket
category under which non-subject merchandise may also enter. Therefore,
we cannot rely on CBP entry data in selecting respondents.
Notwithstanding the decision to rely on Q&V questionnaires for
respondent selection, due to the number of producers and/or exporters
identified in the Petitions, Commerce has determined to limit the
number of Q&V questionnaires that it will issue to producers and/or
exporters based on CBP data for brake drums from T[uuml]rkiye during
the POI under the appropriate HTSUS subheading listed in the ``Scope of
the Investigations,'' in the appendix. Accordingly, for T[uuml]rkiye,
Commerce will send Q&V questionnaires to the largest producers and/or
exporters that are identified in the CBP entry data for which there is
complete address information on the record.\43\
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\42\ See Petitions at Volume I (page I-7 and Exhibit I-5).
\43\ See Memorandum, ``Release of U.S. Customs and Border
Protection Entry Data,'' dated July 8, 2024.
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Commerce will post the Q&V questionnaires along with filing
instructions on Commerce's website at https://www.trade.gov/ec-adcvd-case-announcements. Exporters/producers of brake drums from
T[uuml]rkiye that do not receive Q&V questionnaires by mail may still
submit a response to the Q&V questionnaire and can obtain a copy of the
Q&V questionnaire from Commerce's website noted above.
[[Page 58120]]
Responses to the Q&V questionnaire must be submitted by the relevant
exporters/producers no later than 5:00 p.m. ET on July 24, 2024, which
is two weeks from the signature date of this notice. All Q&V responses
must be filed electronically via ACCESS. An electronically filed
document must be received successfully, in its entirety, by ACCESS no
later than 5:00 p.m. ET on the deadline noted above.
Interested parties must submit applications for disclosure under
administrative protective order (APO) in accordance with 19 CFR
351.305(b). Instructions for filings such applications may be found on
Commerce's website at https://www.trade.gov/administrative-protective-orders.
China
In the Petitions, the petitioner named 54 companies in China as
producers and/or exporters of brake drums.\44\ Our standard practice
for respondent selection in AD investigations involving NME countries
is to select respondents based on Q&V questionnaires in cases where
Commerce has determined that the number of companies is large, and it
cannot individually examine each company based upon its resources.
Therefore, considering the number of producers and/or exporters
identified in the Petitions, Commerce will solicit Q&V information that
can serve as a basis for selecting exporters for individual examination
in the event that Commerce determines that the number is large and
decides to limit the number of respondents individually examined
pursuant to section 777A(c)(2) of the Act. Because there are 54 Chinese
producers and/or exporters identified in the Petitions, Commerce has
determined that it will issue Q&V questionnaires to the largest
producers and/or exporters that are identified in the CBP entry data
for which there is complete address information on the record.\45\
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\44\ See Petitions at Volume I (page I-7 and Exhibit I-5).
\45\ See Memorandum, ``Release of U.S. Customs and Border
Protection Entry Data,'' dated July 8, 2024.
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Commerce will post the Q&V questionnaires along with filing
instructions on Commerce's website at https://www.trade.gov/ec-adcvd-case-announcements. Producers/exporters of brake drums from China that
do not receive Q&V questionnaires may still submit a response to the
Q&V questionnaire and can obtain a copy of the Q&V questionnaire from
Commerce's website noted above. Responses to the Q&V questionnaire must
be submitted by the relevant Chinese producers/exporters no later than
5:00 p.m. ET on July 24, 2024, which is two weeks from the signature
date of this notice. All Q&V questionnaire responses must be filed
electronically via ACCESS. An electronically filed document must be
received successfully, in its entirety, by ACCESS no later than 5:00
p.m. ET on the deadline noted above.
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305(b). As stated above, instructions
for filing such applications may be found on Commerce's website at
https://www.trade.gov/administrative-protective-orders.
Separate Rates
In order to obtain separate rate status in an NME investigation,
exporters and producers must submit a separate rate application. The
specific requirements for submitting a separate rate application in an
NME investigation are outlined in detail in the application itself,
which is available on Commerce's website at https://access.trade.gov/Resources/nme/nme-sep-rate.html. The separate rate application will be
due 30 days after publication of this initiation notice. Exporters and
producers must file a timely separate rate application if they want to
be considered for individual examination. Exporters and producers 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 companies from China
submit a response both to the Q&V questionnaire and to the separate
rate application by the respective deadlines to receive consideration
for separate rate status. Companies not filing a timely Q&V
questionnaire response will not receive separate rate consideration.
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{time} 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.\46\
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\46\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigation involving NME Countries,'' (April
5, 2005), at 6 (emphasis added), available on Commerce's website at
https://access.trade.gov/Resources/policy/bull05-1.pdf.
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Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), copies of the public version of the Petitions have been
provided to the Governments of China and T[uuml]rkiye via ACCESS. To
the extent practicable, we will attempt to provide a copy of the public
version of the Petitions to each exporter named in the Petitions, 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 Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of brake drums from China and/or T[uuml]rkiye
are materially injuring, or threatening material injury to, a U.S.
industry.\47\ A negative ITC determination for any country will result
in the investigation being terminated with respect to that country.\48\
Otherwise, these LTFV investigations will proceed according to
statutory and regulatory time limits.
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\47\ See section 733(a) of the Act.
\48\ Id.
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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). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the
[[Page 58121]]
information is being submitted \49\ 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.\50\ 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.
Interested parties should review the regulations prior to submitting
factual information in this investigation.
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\49\ See 19 CFR 351.301(b).
\50\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation
Section 773(e) of the Act addresses the concept of particular
market situation (PMS) for purposes of CV, stating that ``if a
particular market situation exists such that the cost of materials and
fabrication or other processing of any kind does not accurately reflect
the cost of production in the ordinary course of trade, the
administering authority may use another calculation methodology under
this subtitle or any other calculation methodology.'' When an
interested party submits a PMS allegation pursuant to section 773(e) of
the Act (i.e., a cost-based PMS allegation), the submission must be
filed in accordance with the requirements of 19 CFR 351.416(b), and
Commerce will respond to such a submission consistent with 19 CFR
351.301(c)(2)(v). If Commerce finds that a cost-based PMS exists under
section 773(e) of the Act, then it will modify its dumping calculations
appropriately.
Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v),
sets a deadline for the submission of cost-based PMS allegations and
supporting factual information. However, in order to administer section
773(e) of the Act, Commerce must receive PMS allegations and supporting
factual information with enough time to consider the submission. Thus,
should an interested party wish to submit a cost-based PMS allegation
and supporting new factual information pursuant to section 773(e) of
the Act, it must do so no later than 20 days after submission of a
respondent's initial section D questionnaire response.
We note that a PMS allegation filed pursuant to sections
773(a)(1)(B)(ii)(III) or 773(a)(1)(C)(iii) of the Act (i.e., a sales-
based PMS allegation) must be filed within 10 days of submission of a
respondent's initial section B questionnaire response, in accordance
with 19 CFR 351.301(c)(2)(i) and 19 CFR 351.404(c)(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, or as otherwise specified by
Commerce.\51\ 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, Commerce 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, we
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, standalone submission; under limited circumstances we will
grant untimely filed requests for the extension of time limits, where
we determine, based on 19 CFR 351.302, that extraordinary circumstances
exist. Parties should review Commerce's regulations concerning the
extension of time limits and the Time Limits Final Rule prior to
submitting factual information in these investigations.\52\
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\51\ See 19 CFR 351.301; see also Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final
Rule), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
\52\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\53\
Parties must use the certification formats provided in 19 CFR
351.303(g).\54\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\53\ See section 782(b) of the Act.
\54\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional
information regarding the Final Rule is available at https://access.trade.gov/Resources/filing/index.html.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Parties wishing to participate
in this investigation should ensure that they meet the requirements of
19 CFR 351.103(d) (e.g., by filing the required letter of appearance).
Note that Commerce has amended certain of its requirements pertaining
to the service of documents in 19 CFR 351.303(f).\55\
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\55\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR
67069 (September 29, 2023).
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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: July 10, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigations
The merchandise covered by these investigations is certain brake
drums made of gray cast iron, whether finished or unfinished, with
an actual or nominal inside diameter of 14.75 inches or more but not
over 16.6 inches, weighing more than 50 pounds. Unfinished brake
drums are those which have undergone some turning or machining but
are not ready for installation. Subject brake drums are included
within the scope whether imported individually or with non-subject
merchandise (for example, a hub), whether assembled or unassembled,
or if joined with non-subject merchandise. When a subject drum is
imported together with non-subject merchandise, such as, but not
limited to, a drum-hub assembly, only the subject drum is covered by
the scope.
Subject merchandise also includes finished and unfinished brake
drums that are further processed in a third country or in the United
States, including, but not limited to, assembly or any other
processing that would not otherwise remove the merchandise from the
scope of these investigations if performed in the country of
manufacture of the subject brake drums. The inclusion, attachment,
joining, or assembly of non-subject merchandise with subject drums
either in the country of manufacture of the subject drum or in a
third country does not remove the subject drum from the scope.
Specifically excluded is merchandise covered by the scope of the
antidumping and countervailing duty orders on certain chassis and
subassemblies thereof from the People's Republic of China. See
Certain Chassis and Subassemblies Thereof from the People's Republic
of China: Antidumping Duty Order, 86 FR 36093 (July 8, 2021) and
Certain Chassis and Subassemblies Thereof from the People's Republic
of China: Countervailing Duty Order and Amended Final Affirmative
Countervailing Duty Determination, 86 FR 24844 (May 10, 2021).
[[Page 58122]]
The scope also excludes composite brake drums that contain more
than 40 percent steel by weight.
The merchandise covered by these investigations is classifiable
under Harmonized Tariff Schedule of the United States (HTSUS)
subheading 8708.30.5020. The merchandise covered by these
investigations may be classifiable under HTSUS subheading
8708.30.5090 when entered as part of an assembly. Subject
merchandise may also enter under HTSUS subheading 8716.90.5060.
Although the HTSUS subheadings are provided for convenience and
customs purposes, the written description of the merchandise covered
by these investigations is dispositive.
[FR Doc. 2024-15714 Filed 7-16-24; 8:45 am]
BILLING CODE 3510-DS-P