Certain Tool Chests and Cabinets From the People's Republic of China: Initiation of Countervailing Duty Investigation, 21516-21520 [2017-09371]

Download as PDF 21516 Federal Register / Vol. 82, No. 88 / Tuesday, May 9, 2017 / Notices These initiations and this notice are in accordance with section 751(a) of the Act (19 U.S.C. 1675(a)) and 19 CFR 351.221(c)(1)(i). the end of the Final Rule.12 The Department intends to reject factual submissions in any proceeding segments if the submitting party does not comply with applicable revised certification requirements. mstockstill on DSK30JT082PROD with NOTICES Extension of Time Limits Regulation Parties may request an extension of time limits before a time limit established under Part 351 expires, or as otherwise specified by the Secretary. See 19 CFR 351.302. In general, an extension request will be considered untimely if it is filed after the time limit established under Part 351 expires. For submissions which are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. on the due date. Examples include, but are not limited to: (1) Case and rebuttal briefs, filed pursuant to 19 CFR 351.309; (2) factual information to value factors under 19 CFR 351.408(c), or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2), filed pursuant to 19 CFR 351.301(c)(3) and rebuttal, clarification and correction filed pursuant to 19 CFR 351.301(c)(3)(iv); (3) comments concerning the selection of a surrogate country and surrogate values and rebuttal; (4) comments concerning U.S. Customs and Border Protection data; and (5) quantity and value questionnaires. Under certain circumstances, the Department 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, the Department will inform parties in the letter or memorandum setting forth the deadline (including a specified time) by which extension requests must be filed to be considered timely. This modification also requires that an extension request must be made in a separate, stand-alone submission, and clarifies the circumstances under which the Department will grant untimelyfiled requests for the extension of time limits. These modifications are effective for all segments initiated on or after October 21, 2013. Please review the final rule, available at https:// www.gpo.gov/fdsys/pkg/FR-2013-09-20/ html/2013-22853.htm, prior to submitting factual information in these segments. 12 See Certification of Factual Information To Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (‘‘Final Rule’’); see also the frequently asked questions regarding the Final Rule, available at https://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. VerDate Sep<11>2014 18:19 May 08, 2017 Jkt 241001 Dated: May 2, 2017. Gary Taverman, Associate Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. [FR Doc. 2017–09301 Filed 5–8–17; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–057] Certain Tool Chests and Cabinets From the People’s Republic of China: Initiation of Countervailing Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Effective Date: May 1, 2016. FOR FURTHER INFORMATION CONTACT: Minoo Hatten at (202) 482–1690, AD/ CVD Operations, Enforcement & Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230. SUPPLEMENTARY INFORMATION: AGENCY: The Petition On April 11, 2017, the Department of Commerce (the Department) received a countervailing duty (CVD) petition concerning imports of certain tool chests and cabinets (tool chests) from the People’s Republic of China (PRC), filed in proper form, on behalf of Waterloo Industries Inc. (the petitioner).1 The petitioner is a domestic producer of tool chests.2 The CVD petition was accompanied by antidumping duty (AD) petitions concerning imports of tool chests from the PRC and the Socialist Republic of Vietnam (Vietnam). On April 13 2017, the petitioner filed an amendment to the Petition.3 On April 13 and 20, 2017, the Department 1 See Letter to the Secretary of Commerce from the petitioner ‘‘Certain Tool Chests and Cabinets from the People’s Republic of China and the Socialist Republic of Vietnam—Petition for the Imposition of Antidumping and Countervailing Duties’’ (April 11, 2017) (the Petition). 2 See Volume I of the Petitions, at 1. 3 See Letter to the Secretary of Commerce from the petitioner ‘‘Certain Tool Chests and Cabinets From the People’s Republic of China and the Socialist Republic of Vietnam—Petitioner’s Amendment to Volume I of the Antidumping and Countervailing Duty Petition’’ (April 13, 2017) (clarifying the scope of the imported merchandise that the petitioner intends to cover). PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 requested additional information and clarification of certain areas of the Petition.4 The petitioner filed responses to these requests on April 18 and 21, 2017.5 On April 27, 3017, the petitioner filed an additional amendment to the Petition.6 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that the Government of the PRC (GOC) is providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act with respect to imports of tool chests from the PRC, and that imports of tool chests are materially injuring, or threatening material injury to, an industry in the United States. Also, consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating a CVD investigation, the Petition is accompanied by information reasonably available to the petitioner supporting its allegations. The Department finds that the petitioner filed the Petition on behalf of the domestic industry because the petitioner is an interested party as defined in section 771(9)(C) of the Act. The Department also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the CVD investigation that the petitioner is requesting.7 Period of Investigation Because the Petition was filed on April 11, 2017, pursuant to 19 CFR 4 See letter to the petitioner from the Department concerning supplemental questions on Volume IV of the Petition (April 13, 2017); see also letter to the petitioner from the Department concerning supplemental questions on general issues (April 13, 2017) (General Issues Supplemental Questionnaire); and letter to the petitioner from the Department concerning supplemental questions on Volume IV (April 20, 2017). 5 See Letter to the Secretary of Commerce from the petitioner ‘‘Certain Tool Chests and Cabinets from the People’s Republic of China and the Socialist Republic of Vietnam—Petitioner’s Response to Supplemental Questionnaire Concerning Volume IV’’ (April 18, 2017); see also letter to the Secretary of Commerce from the petitioner ‘‘Certain Tool Chests and Cabinets From the People’s Republic of China and the Socialist Republic of Vietnam—Petitioner’s 2nd Amendment to Volume I of the Antidumping and Countervailing Duty Petition’’ (April 18, 2017) (General Issues 2nd Amendment); and letter to the Secretary of Commerce from the petitioner ‘‘Certain Tool Chests and Cabinets from the People’s Republic of China and the Socialist Republic of Vietnam—Petitioner’s Response to Supplemental Questionnaire Concerning Volume IV’’ (April 21, 2017). 6 See Letter to the Secretary of Commerce from the petitioner ‘‘Certain Tool Chests and Cabinets From the People’s Republic of China and the Socialist Republic of Vietnam—Petitioner’s 3rd Amendment to Volume I of the Antidumping and Countervailing Duty Petition’’ (April 27, 2017) (General Issues 3rd Amendment). 7 See ‘‘Determination of Industry Support for the Petition’’ section, below. E:\FR\FM\09MYN1.SGM 09MYN1 Federal Register / Vol. 82, No. 88 / Tuesday, May 9, 2017 / Notices 351.204(b)(2), the period of investigation is January 1, 2016, through December 31, 2016.8 Scope of the Investigation The products covered by this investigation are tool chests from the PRC. For a full description of the scope of this investigation, see the ‘‘Scope of the Investigation,’’ in Appendix I of this notice. mstockstill on DSK30JT082PROD with NOTICES Comments on Scope of the Investigation During our review of the Petition, we issued questions to, and received responses from, the petitioner pertaining to the proposed scope to ensure that the scope language in the Petition would be an accurate reflection of the products for which the domestic industry is seeking relief.9 As discussed in the preamble to the Department’s regulations,10 we are setting aside a period for interested parties to raise issues regarding product coverage (i.e., scope). The Department will consider all comments received from interested parties and, if necessary, will consult with the interested parties prior to the issuance of the preliminary determination. If scope comments include factual information,11 all such factual information should be limited to public information. In order to facilitate preparation of its questionnaire, the Department requests all interested parties to submit such comments by 5:00 p.m. Eastern Time (ET) on Monday, May 22, 2017, which is the next business day after 20 calendar days from the signature date of this notice. Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on Thursday, June 1, 2017, which is 10 calendar days from the deadline for initial comments.12 All such comments must be filed on the records of each of the concurrent AD investigations. The Department requests that any factual information the parties consider relevant to the scope of the investigation be submitted during this time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation may be relevant, the party may contact the Department and request permission to submit the additional information. As stated above, all such 8 See 19 CFR 351.204(b)(2). General Issues Supplemental Questionnaire; see also General Issues 2nd Amendment; and General Issues 3rd Amendment. 10 See Antidumping Duties; Countervailing Duties: Final Rule, 62 FR 27296, 27323 (May 19, 1997). 11 See 19 CFR 351.102(b)(21). 12 See 19 CFR 351.303(b). 9 See VerDate Sep<11>2014 18:19 May 08, 2017 Jkt 241001 comments must be filed on the record of the concurrent AD investigations. Filing Requirements All submissions to the Department must be filed electronically using Enforcement & Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS).13 An electronicallyfiled document must be received successfully in its entirety by the time and date it is due. Documents excepted from the electronic submission requirements must be filed manually (i.e., in paper form) with Enforcement & Compliance’s APO/Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, and stamped with the date and time of receipt by the applicable deadlines. Consultations Pursuant to section 702(b)(4)(A) of the Act, the Department notified representatives of the GOC of the receipt of the Petition, and provided them the opportunity for consultations with respect to the CVD Petition.14 In response to the Department’s letter, the GOC requested that consultations be held.15 Such consultations were held on April 26, 2017.16 The invitation letter and memorandum regarding the consultations are on file electronically via ACCESS. Determination of Industry Support for the Petition Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(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 13 See 19 CFR 351.303 (for general filing requirements); see also Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011), for details of the Department’s electronic filing requirements, which went into effect on August 5, 2011. Information on help using ACCESS can be found at https://access.trade.gov/help.aspx, and a handbook can be found at https://access.trade.gov/help/ Handbook%20on%20Electronic%20Filling%20 Procedures.pdf. 14 See Letter to the embassy of the PRC from the Department ‘‘Countervailing Duty Petition on Certain Tool Chests and Cabinets from the People’s Republic of China’’ (April 11, 2017). 15 See Letter to the Department from the Ministry of Commerce of the People’s Republic of China ‘‘Consultation Request for Countervailing Duty Petition on Certain Tool Chest and Cabinets’’ (April 18, 2017). 16 See Department Memorandum ‘‘Countervailing Duty Petition on Certain Tool Chests and Cabinets from the People’s Republic of China: GOC Consultations’’ (April 26, 2017). PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 21517 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 702(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, the Department shall: (i) Poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the ‘‘industry.’’ Section 771(4)(A) of the Act defines the ‘‘industry’’ as the producers, as a whole, of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs the Department to look to producers and workers who produce the domestic like product. The International Trade Commission (ITC), which is responsible for determining whether ‘‘the domestic industry’’ has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both the Department and the ITC must apply the same statutory definition regarding the domestic like product,17 they do so for different purposes and pursuant to a separate and distinct authority. In addition, the Department’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.18 Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the Petition). With regard to the domestic like product, the petitioner does not offer a definition of the domestic like product distinct from the scope of the investigation. Based on our analysis of the information submitted on the 17 See section 771(10) of the Act. USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d 865 F.2d 240 (Fed. Cir. 1989)). 18 See E:\FR\FM\09MYN1.SGM 09MYN1 21518 Federal Register / Vol. 82, No. 88 / Tuesday, May 9, 2017 / Notices mstockstill on DSK30JT082PROD with NOTICES record, we have determined that tool chests, as defined in the scope, constitute a single domestic like product and we have analyzed industry support in terms of that domestic like product.19 In determining whether the petitioner has standing under section 702(c)(4)(A) of the Act, we considered the industry support data contained in the Petition with reference to the domestic like product as defined in the ‘‘Scope of the Investigation,’’ in Appendix I of this notice. To establish industry support, the petitioner provided its own production of the domestic like product in 2016.20 In addition, the petitioner provided a letter of support from Metal Box International, stating that the company supports the Petition and providing its own production of the domestic like product in 2016.21 The petitioner identifies itself and Metal Box International as the companies constituting the U.S. tool chests industry and states that there are no other known producers of tool chests in the United States; therefore, the Petition is supported by 100 percent of the U.S. industry.22 Our review of the data provided in the Petition and other information readily available to the Department indicates that the petitioner has established industry support for the Petition.23 First, the Petition established support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like product and, as such, the Department is not required to take further action in order to evaluate industry support (e.g., polling).24 Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the Petition account for at least 25 percent of the total production of the domestic like product.25 Finally, the domestic 19 For a discussion of the domestic like product analysis in this case, see Countervailing Duty Investigation Initiation Checklist: Certain Tool Chests and Cabinets from the People’s Republic of China (PRC CVD Initiation Checklist), at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Certain Tool Chests and Cabinets from the People’s Republic of China and the Socialist Republic of Vietnam, (Attachment II). This checklist is dated concurrently with this notice and on file electronically via ACCESS. 20 See Volume I of the Petition, at 3 and Exhibit GEN–1. 21 Id., at 3 and Exhibit GEN–2. 22 Id., at 2–3 and Exhibits GEN–1 and GEN–2. 23 See PRC CVD Initiation Checklist, at Attachment II. 24 See section 702(c)(4)(D) of the Act; see also PRC CVD Initiation Checklist, at Attachment II. 25 See PRC CVD Initiation Checklist, at Attachment II. VerDate Sep<11>2014 18:19 May 08, 2017 Jkt 241001 producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) who support the Petition account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petition.26 Accordingly, the Department determines that the Petition was filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act. The Department finds that the petitioner filed the Petition on behalf of the domestic industry because it is an interested party as defined in section 771(9)(C) of the Act, and it has demonstrated sufficient industry support with respect to the CVD investigation that it is requesting that the Department initiate.27 Injury Test Because the PRC is a ‘‘Subsidies Agreement Country’’ within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to this investigation. Accordingly, the ITC must determine whether imports of the subject merchandise from the PRC materially injure, or threaten material injury to, a U.S. industry. Allegations and Evidence of Material Injury and Causation The petitioner alleges that imports of the subject merchandise are benefitting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product. In addition, the petitioner alleges that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.28 The petitioner contends that the industry’s injured condition is illustrated by reduced market share; underselling and price suppression or depression; lost sales and revenues; declining production and shipments; declining net sales; and deteriorating financial performance.29 We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, and causation, and we have determined that these allegations are properly supported by 26 Id. 27 Id. 28 See Volume I of the Petition, at 17–19 and Exhibits GEN–2, GEN–7, and GEN–11. 29 See Volume I of the Petition, at 12–26 and Exhibits GEN–2, GEN–6 through GEN–9, and GEN– 11 through GEN–15. PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 adequate evidence, and meet the statutory requirements for initiation.30 Initiation of CVD Investigation Section 702(b)(1) of the Act requires the Department to initiate a CVD investigation whenever an interested party files a CVD petition on behalf of an industry that (1) alleges the elements necessary for an imposition of a duty under section 701(a) of the Act and (2) is accompanied by information reasonably available to the petitioner supporting the allegations. The petitioner alleges that producers/ exporters of tool chests in the PRC benefited from countervailable subsidies bestowed by the GOC. The Department examined the Petition and finds that it complies with the requirements of section 702(b)(1) of the Act. Therefore, in accordance with section 702(b)(1) of the Act, we are initiating a CVD investigation to determine whether manufacturers, producers, and/or exporters of tool chests from the PRC receive countervailable subsidies from the GOC. Under the Trade Preferences Extension Act of 2015, numerous amendments to the AD and CVD laws were made.31 The 2015 law does not specify dates of application for those amendments. On August 6, 2015, the Department published an interpretative rule, in which it announced the applicability dates for each amendment to the Act, except for amendments contained in section 771(7) of the Act, which relate to determinations of material injury by the ITC.32 The amendments to sections 776 and 782 of the Act are applicable to all determinations made on or after August 6, 2015, and, therefore, apply to this CVD investigation.33 Subsidy Allegations Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on 17 of the 18 alleged programs. For a full discussion of the basis for our decision to initiate or not initiate on each program, see the PRC 30 See PRC CVD Initiation Checklist, at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Certain Tool Chests and Cabinets from the People’s Republic of China and the Socialist Republic of Vietnam. 31 See Trade Preferences Extension Act of 2015, Public Law 114–27, 129 Stat. 362 (2015). 32 See Dates of Application of Amendments to the Antidumping and Countervailing Duty Laws Made by the Trade Preferences Extension Act of 2015, 80 FR 46793 (August 6, 2015). The 2015 amendments may be found at https://www.congress.gov/bill/ 114th-congress/house-bill/1295/text/pl. 33 Id., at 46794–95. E:\FR\FM\09MYN1.SGM 09MYN1 Federal Register / Vol. 82, No. 88 / Tuesday, May 9, 2017 / Notices CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination in this investigation no later than 65 days after the date of initiation. Respondent Selection The Department normally selects respondents in a CVD investigation using U.S. Customs and Border Protection (CBP) entry data. However, for this investigation, the Harmonized Tariff Schedule of the United States (HTSUS) numbers the subject merchandise would enter under are basket categories containing many products unrelated to tool chests, and the HTSUS numbers allow for the reporting of differing units of quantity. Therefore, we cannot rely on CBP entry data in selecting respondents. Instead, for this investigation, the Department will request quantity and value (Q&V) information from known exporters and producers identified, with complete contact information, in the Petition. In addition, the Department will post the Q&V questionnaire along with filing instructions on the Enforcement & Compliance Web site at https:// www.trade.gov/enforcement/news.asp. Producers/exporters of tool chests from the PRC that do not receive Q&V questionnaires by mail may still submit a response to the Q&V questionnaire and can obtain a copy from the Enforcement & Compliance Web site. The Q&V response must be submitted by the relevant PRC exporters/producers no later than May 11, 2017. All Q&V responses must be filed electronically via ACCESS. mstockstill on DSK30JT082PROD with NOTICES Distribution of Copies of the Petition In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petition has been provided to the GOC via ACCESS. Because of the particularly large number of producers/ exporters identified in the Petition, the Department considers the service of the public version of the Petition to the foreign producers/exporters satisfied by delivery of the public version to the government of the PRC, consistent with 19 CFR 351.203(c)(2). ITC Notification We will notify the ITC of our initiation, as required by section 702(d) of the Act. VerDate Sep<11>2014 18:19 May 08, 2017 Jkt 241001 Preliminary Determinations by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petition was filed, whether there is a reasonable indication that imports of tool chests from the PRC are materially injuring, or threatening material injury to, a U.S. industry.34 A negative ITC determination will result in the investigation being terminated; 35 otherwise, this investigation will proceed according to statutory and regulatory time limits. 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 the Department; and (v) evidence other than factual information described in (i) through (iv). The regulation requires any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 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. 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. Parties should review the regulations prior to submitting factual information in this investigation. Extension of Time Limits Regulation 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 the Secretary. 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 expires. 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. on the due date. Under certain circumstances, we may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In 34 See 35 See PO 00000 section 703(a)(2) of the Act. section 703(a)(1) of the Act. Frm 00018 Fmt 4703 Sfmt 4703 21519 such a case, we will inform parties in the letter or memorandum setting forth the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, stand-alone submission; under limited circumstances we will grant untimely-filed requests for the extension of time limits. Review Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to submitting factual information in this investigation. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.36 Parties are hereby reminded that revised certification requirements are in effect for company/government officials, as well as their representatives. Investigations initiated on the basis of petitions filed on or after August 16, 2013, and other segments of any AD or CVD proceedings initiated on or after August 16, 2013, should use the formats for the revised certifications provided at the end of the Final Rule.37 The Department intends to reject factual submissions if the submitting party does not comply with the applicable revised certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under Administrative Protective Order (APO) in accordance with 19 CFR 351.305. On January 22, 2008, the Department published Antidumping and Countervailing Duty Proceedings: Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to participate in this investigation should ensure that they meet the requirements of these procedures (e.g., the filing of letters of appearance as discussed at 19 CFR 351.103(d)). This notice is issued and published pursuant to sections 702 and 777(i) of the Act. 36 See section 782(b) of the Act. Certification of Factual Information To Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also frequently asked questions regarding the Final Rule, available at https://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 37 See E:\FR\FM\09MYN1.SGM 09MYN1 21520 Federal Register / Vol. 82, No. 88 / Tuesday, May 9, 2017 / Notices Dated: May 1, 2017. Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and Compliance. mstockstill on DSK30JT082PROD with NOTICES Appendix I Scope of the Investigation The scope of this investigation covers certain metal tool chests and tool cabinets, with drawers, (tool chests and cabinets), from the People’s Republic of China (the PRC). The scope covers all metal tool chests and cabinets, including top chests, intermediate chests, tool cabinets and side cabinets, storage units, mobile work benches, and work stations and that have the following physical characteristics: (1) A body made of carbon, alloy, or stainless steel and/or other metals; (2) two or more drawers for storage in each individual unit; (3) a width (side to side) exceeding 15 inches for side cabinets and exceeding 21 inches for all other individual units but not exceeding 60 inches; (4) a drawer depth (front to back) exceeding 10 inches but not exceeding 24 inches; and (5) prepackaged for retail sale. For purposes of this scope, the width parameter applies to each individual unit, i.e., each individual top chest, intermediate top chest, tool cabinet, side cabinet, storage unit, mobile work bench, and work station. Prepackaged for retail sale means the units are packaged in a cardboard box or other container suitable for retail display and sale. Subject tool chests and cabinets are covered whether imported in assembled or unassembled form. Subject merchandise includes tool chests and cabinets produced in the PRC but assembled, prepackaged for sale, or subject to other minor processing in a third country prior to importation into the United States. Similarly, it would include tool chests and cabinets produced in the PRC that are later found to be assembled, prepackaged for sale, or subject to other minor processing after importation into the United States. Subject tool chests and cabinets may also have doors and shelves in addition to drawers, may have handles (typically mounted on the sides), and may have a work surface on the top. Subject tool chests and cabinets may be uncoated (e.g., stainless steel), painted, powder coated, galvanized, or otherwise coated for corrosion protection or aesthetic appearance. Subject tool chests and cabinets may be packaged as individual units or in sets. When packaged in sets, they typically include a cabinet with one or more chests that stack on top of the cabinet. Tool cabinets act as a base tool storage unit and typically have rollers, casters, or wheels to permit them to be moved more easily when loaded with tools. Work stations and work benches are tool cabinets with a work surface on the top that may be made of rubber, plastic, metal, wood, or other materials. Top chests are designed to be used with a tool cabinet to form a tool storage unit. The top chests may be mounted on top of the base tool cabinet or onto an intermediate chest. VerDate Sep<11>2014 18:19 May 08, 2017 Jkt 241001 They are often packaged as a set with tool cabinets or intermediate chests, but may also be packaged separately. They may be packaged with mounting hardware (e.g., bolts) and instructions for assembling them onto the base tool cabinet or onto an intermediate tool chest which rests on the base tool cabinet. Smaller top chests typically have handles on the sides, while the larger top chests typically lack handles. Intermediate tool chests are designed to fit on top of the floor standing tool cabinet and to be used underneath the top tool chest. Although they may be packaged or used separately from the tool cabinet, intermediate chests are designed to be used in conjunction with tool cabinets. The intermediate chests typically do not have handles. The intermediate and top chests may have the capability of being bolted together. Side cabinets are designed to be bolted or otherwise attached to the side of the base storage cabinet to expand the storage capacity of the base tool cabinet. Subject tool chests and cabinets also may be packaged with a tool set included. Packaging a subject tool chest and cabinet with a tool set does not remove an otherwise covered subject tool chest and cabinet from the scope. When this occurs the tools are not part of the subject merchandise. Excluded from the scope of the investigation are tool boxes, chests and cabinets with bodies made of plastic, carbon fiber, wood, or other non-metallic substances. Also excluded from the scope of the investigation are portable metal tool boxes. Portable metal tool boxes have each of the following characteristics: (1) Fewer than three drawers; (2) a handle on the top that allows the tool box to be carried by hand; and (3) a width that is 21 inches or less; and depth (front to back) not exceeding 10 inches. Also excluded from the scope of the investigation are industrial grade steel tool chests and cabinets. The excluded industrial grade steel tool chests and cabinets are those: (1) Having a body that is over 60 inches wide; or (2) having each of the following physical characteristics: (a) A body made of steel that is 0.055″ or more in thickness; (b) all drawers over 21″ deep; (c) all drawer slides rated for 200 lbs. or more; and (d) not prepackaged for retail sale. Also excluded from the scope of the investigation are work benches with fewer than two drawers. Excluded work benches have a solid top working surface, fewer than two drawers, are supported by legs and have no solid front, side, or back panels enclosing the body of the unit. Also excluded from the scope of the investigation are metal filing cabinets that are configured to hold hanging file folders and are classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheading 9403.10.0020. Merchandise subject to the investigation is classified under HTSUS categories 9403.20.0021, 9403.20.0026, 9403.20.0030 and 7326.90.8688, but may also be classified under HTSUS category 7326.90.3500. While HTSUS subheadings are provided for PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 convenience and Customs purposes, the written description of the scope of this investigation is dispositive. [FR Doc. 2017–09371 Filed 5–8–17; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–815, A–533–806, C–533–807] Sulfanilic Acid From India and the People’s Republic of China: Continuation of Antidumping Duty and Countervailing Duty Orders Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: As a result of determinations by the Department of Commerce (Department) and the International Trade Commission (ITC) that revocation of the antidumping duty (AD) orders on sulfanilic acid from the People’s Republic of China (PRC) and India and the countervailing duty (CVD) order on sulfanilic acid from India would likely lead to continuation or recurrence of dumping and a countervailable subsidy and material injury to an industry in the United States, the Department is publishing this notice of continuation of these AD and CVD orders. DATES: Effective May 9, 2017. FOR FURTHER INFORMATION CONTACT: Mandy Mallott (India and PRC AD Orders), John Conniff (India CVD Order), AD/CVD Operations, Office III, Enforcement and Compliance International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482–6430 or (202) 482–1009, respectively. SUPPLEMENTARY INFORMATION: On September 1, 2016, the Department initiated the fourth sunset reviews of the AD orders on sulfanilic acid from the PRC and India and the CVD order on sulfanilic acid from India pursuant to section 751(c) of the Tariff Act of 1930, as amended (Act).1 As a result of its reviews, pursuant to sections 751(c) and 752(b) of the Act, the Department determined that revocation of the AD orders on sulfanilic acid from India and the PRC and the CVD order on sulfanilic acid from India would be likely to lead to a continuation or recurrence of dumping and a countervailable subsidy, and, therefore, notified the ITC of the magnitude of the margins and net AGENCY: 1 See Initiation of Five-Year (‘‘Sunset’’) Reviews, 81 FR 60386 (September 1, 2016) (‘‘Notice of Initiation’’). E:\FR\FM\09MYN1.SGM 09MYN1

Agencies

[Federal Register Volume 82, Number 88 (Tuesday, May 9, 2017)]
[Notices]
[Pages 21516-21520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09371]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-057]


Certain Tool Chests and Cabinets From the People's Republic of 
China: Initiation of Countervailing Duty Investigation

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

DATES: Effective Date: May 1, 2016.

FOR FURTHER INFORMATION CONTACT: Minoo Hatten at (202) 482-1690, AD/CVD 
Operations, Enforcement & Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petition

    On April 11, 2017, the Department of Commerce (the Department) 
received a countervailing duty (CVD) petition concerning imports of 
certain tool chests and cabinets (tool chests) from the People's 
Republic of China (PRC), filed in proper form, on behalf of Waterloo 
Industries Inc. (the petitioner).\1\ The petitioner is a domestic 
producer of tool chests.\2\ The CVD petition was accompanied by 
antidumping duty (AD) petitions concerning imports of tool chests from 
the PRC and the Socialist Republic of Vietnam (Vietnam).
---------------------------------------------------------------------------

    \1\ See Letter to the Secretary of Commerce from the petitioner 
``Certain Tool Chests and Cabinets from the People's Republic of 
China and the Socialist Republic of Vietnam--Petition for the 
Imposition of Antidumping and Countervailing Duties'' (April 11, 
2017) (the Petition).
    \2\ See Volume I of the Petitions, at 1.
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    On April 13 2017, the petitioner filed an amendment to the 
Petition.\3\ On April 13 and 20, 2017, the Department requested 
additional information and clarification of certain areas of the 
Petition.\4\ The petitioner filed responses to these requests on April 
18 and 21, 2017.\5\ On April 27, 3017, the petitioner filed an 
additional amendment to the Petition.\6\
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    \3\ See Letter to the Secretary of Commerce from the petitioner 
``Certain Tool Chests and Cabinets From the People's Republic of 
China and the Socialist Republic of Vietnam--Petitioner's Amendment 
to Volume I of the Antidumping and Countervailing Duty Petition'' 
(April 13, 2017) (clarifying the scope of the imported merchandise 
that the petitioner intends to cover).
    \4\ See letter to the petitioner from the Department concerning 
supplemental questions on Volume IV of the Petition (April 13, 
2017); see also letter to the petitioner from the Department 
concerning supplemental questions on general issues (April 13, 2017) 
(General Issues Supplemental Questionnaire); and letter to the 
petitioner from the Department concerning supplemental questions on 
Volume IV (April 20, 2017).
    \5\ See Letter to the Secretary of Commerce from the petitioner 
``Certain Tool Chests and Cabinets from the People's Republic of 
China and the Socialist Republic of Vietnam--Petitioner's Response 
to Supplemental Questionnaire Concerning Volume IV'' (April 18, 
2017); see also letter to the Secretary of Commerce from the 
petitioner ``Certain Tool Chests and Cabinets From the People's 
Republic of China and the Socialist Republic of Vietnam--
Petitioner's 2nd Amendment to Volume I of the Antidumping and 
Countervailing Duty Petition'' (April 18, 2017) (General Issues 2nd 
Amendment); and letter to the Secretary of Commerce from the 
petitioner ``Certain Tool Chests and Cabinets from the People's 
Republic of China and the Socialist Republic of Vietnam--
Petitioner's Response to Supplemental Questionnaire Concerning 
Volume IV'' (April 21, 2017).
    \6\ See Letter to the Secretary of Commerce from the petitioner 
``Certain Tool Chests and Cabinets From the People's Republic of 
China and the Socialist Republic of Vietnam--Petitioner's 3rd 
Amendment to Volume I of the Antidumping and Countervailing Duty 
Petition'' (April 27, 2017) (General Issues 3rd Amendment).
---------------------------------------------------------------------------

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Government of the 
PRC (GOC) is providing countervailable subsidies, within the meaning of 
sections 701 and 771(5) of the Act with respect to imports of tool 
chests from the PRC, and that imports of tool chests are materially 
injuring, or threatening material injury to, an industry in the United 
States. Also, consistent with section 702(b)(1) of the Act and 19 CFR 
351.202(b), for those alleged programs on which we are initiating a CVD 
investigation, the Petition is accompanied by information reasonably 
available to the petitioner supporting its allegations.
    The Department finds that the petitioner filed the Petition on 
behalf of the domestic industry because the petitioner is an interested 
party as defined in section 771(9)(C) of the Act. The Department also 
finds that the petitioner demonstrated sufficient industry support with 
respect to the initiation of the CVD investigation that the petitioner 
is requesting.\7\
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    \7\ See ``Determination of Industry Support for the Petition'' 
section, below.
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Period of Investigation

    Because the Petition was filed on April 11, 2017, pursuant to 19 
CFR

[[Page 21517]]

351.204(b)(2), the period of investigation is January 1, 2016, through 
December 31, 2016.\8\
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    \8\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation

    The products covered by this investigation are tool chests from the 
PRC. For a full description of the scope of this investigation, see the 
``Scope of the Investigation,'' in Appendix I of this notice.

Comments on Scope of the Investigation

    During our review of the Petition, we issued questions to, and 
received responses from, the petitioner pertaining to the proposed 
scope to ensure that the scope language in the Petition would be an 
accurate reflection of the products for which the domestic industry is 
seeking relief.\9\
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    \9\ See General Issues Supplemental Questionnaire; see also 
General Issues 2nd Amendment; and General Issues 3rd Amendment.
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    As discussed in the preamble to the Department's regulations,\10\ 
we are setting aside a period for interested parties to raise issues 
regarding product coverage (i.e., scope). The Department will consider 
all comments received from interested parties and, if necessary, will 
consult with the interested parties prior to the issuance of the 
preliminary determination. If scope comments include factual 
information,\11\ all such factual information should be limited to 
public information. In order to facilitate preparation of its 
questionnaire, the Department requests all interested parties to submit 
such comments by 5:00 p.m. Eastern Time (ET) on Monday, May 22, 2017, 
which is the next business day after 20 calendar days from the 
signature date of this notice. Any rebuttal comments, which may include 
factual information, must be filed by 5:00 p.m. ET on Thursday, June 1, 
2017, which is 10 calendar days from the deadline for initial 
comments.\12\ All such comments must be filed on the records of each of 
the concurrent AD investigations.
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    \10\ See Antidumping Duties; Countervailing Duties: Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \11\ See 19 CFR 351.102(b)(21).
    \12\ See 19 CFR 351.303(b).
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    The Department requests that any factual information the parties 
consider relevant to the scope of the investigation be submitted during 
this time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigation may be relevant, the party may contact the Department and 
request permission to submit the additional information. As stated 
above, all such comments must be filed on the record of the concurrent 
AD investigations.

Filing Requirements

    All submissions to the Department must be filed electronically 
using Enforcement & Compliance's Antidumping Duty and Countervailing 
Duty Centralized Electronic Service System (ACCESS).\13\ An 
electronically-filed document must be received successfully in its 
entirety by the time and date it is due. Documents excepted from the 
electronic submission requirements must be filed manually (i.e., in 
paper form) with Enforcement & Compliance's APO/Dockets Unit, Room 
18022, U.S. Department of Commerce, 1401 Constitution Avenue NW., 
Washington, DC 20230, and stamped with the date and time of receipt by 
the applicable deadlines.
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    \13\ See 19 CFR 351.303 (for general filing requirements); see 
also Antidumping and Countervailing Duty Proceedings: Electronic 
Filing Procedures; Administrative Protective Order Procedures, 76 FR 
39263 (July 6, 2011), for details of the Department's electronic 
filing requirements, which went into effect on August 5, 2011. 
Information on help using ACCESS can be found at https://access.trade.gov/help.aspx, and a handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Consultations

    Pursuant to section 702(b)(4)(A) of the Act, the Department 
notified representatives of the GOC of the receipt of the Petition, and 
provided them the opportunity for consultations with respect to the CVD 
Petition.\14\ In response to the Department's letter, the GOC requested 
that consultations be held.\15\ Such consultations were held on April 
26, 2017.\16\ The invitation letter and memorandum regarding the 
consultations are on file electronically via ACCESS.
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    \14\ See Letter to the embassy of the PRC from the Department 
``Countervailing Duty Petition on Certain Tool Chests and Cabinets 
from the People's Republic of China'' (April 11, 2017).
    \15\ See Letter to the Department from the Ministry of Commerce 
of the People's Republic of China ``Consultation Request for 
Countervailing Duty Petition on Certain Tool Chest and Cabinets'' 
(April 18, 2017).
    \16\ See Department Memorandum ``Countervailing Duty Petition on 
Certain Tool Chests and Cabinets from the People's Republic of 
China: GOC Consultations'' (April 26, 2017).
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Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(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 702(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, the Department 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A); or (ii) determine industry support using a 
statistically valid sampling method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers, as a whole, of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product,\17\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, the Department'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.\18\
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    \17\ See section 771(10) of the Act.
    \18\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
Petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigation. Based on our analysis of the information 
submitted on the

[[Page 21518]]

record, we have determined that tool chests, as defined in the scope, 
constitute a single domestic like product and we have analyzed industry 
support in terms of that domestic like product.\19\
---------------------------------------------------------------------------

    \19\ For a discussion of the domestic like product analysis in 
this case, see Countervailing Duty Investigation Initiation 
Checklist: Certain Tool Chests and Cabinets from the People's 
Republic of China (PRC CVD Initiation Checklist), at Attachment II, 
Analysis of Industry Support for the Antidumping and Countervailing 
Duty Petitions Covering Certain Tool Chests and Cabinets from the 
People's Republic of China and the Socialist Republic of Vietnam, 
(Attachment II). This checklist is dated concurrently with this 
notice and on file electronically via ACCESS.
---------------------------------------------------------------------------

    In determining whether the petitioner has standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in Appendix I of this 
notice. To establish industry support, the petitioner provided its own 
production of the domestic like product in 2016.\20\ In addition, the 
petitioner provided a letter of support from Metal Box International, 
stating that the company supports the Petition and providing its own 
production of the domestic like product in 2016.\21\ The petitioner 
identifies itself and Metal Box International as the companies 
constituting the U.S. tool chests industry and states that there are no 
other known producers of tool chests in the United States; therefore, 
the Petition is supported by 100 percent of the U.S. industry.\22\
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    \20\ See Volume I of the Petition, at 3 and Exhibit GEN-1.
    \21\ Id., at 3 and Exhibit GEN-2.
    \22\ Id., at 2-3 and Exhibits GEN-1 and GEN-2.
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    Our review of the data provided in the Petition and other 
information readily available to the Department indicates that the 
petitioner has established industry support for the Petition.\23\ 
First, the Petition established support from domestic producers (or 
workers) accounting for more than 50 percent of the total production of 
the domestic like product and, as such, the Department is not required 
to take further action in order to evaluate industry support (e.g., 
polling).\24\ Second, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 702(c)(4)(A)(i) 
of the Act because the domestic producers (or workers) who support the 
Petition account for at least 25 percent of the total production of the 
domestic like product.\25\ Finally, the domestic producers (or workers) 
have met the statutory criteria for industry support under section 
702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) 
who support the Petition account for more than 50 percent of the 
production of the domestic like product produced by that portion of the 
industry expressing support for, or opposition to, the Petition.\26\ 
Accordingly, the Department determines that the Petition was filed on 
behalf of the domestic industry within the meaning of section 702(b)(1) 
of the Act.
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    \23\ See PRC CVD Initiation Checklist, at Attachment II.
    \24\ See section 702(c)(4)(D) of the Act; see also PRC CVD 
Initiation Checklist, at Attachment II.
    \25\ See PRC CVD Initiation Checklist, at Attachment II.
    \26\ Id.
---------------------------------------------------------------------------

    The Department finds that the petitioner filed the Petition on 
behalf of the domestic industry because it is an interested party as 
defined in section 771(9)(C) of the Act, and it has demonstrated 
sufficient industry support with respect to the CVD investigation that 
it is requesting that the Department initiate.\27\
---------------------------------------------------------------------------

    \27\ Id.
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Injury Test

    Because the PRC is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from the PRC materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that imports of the subject merchandise are 
benefitting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioner 
alleges that subject imports exceed the negligibility threshold 
provided for under section 771(24)(A) of the Act.\28\
---------------------------------------------------------------------------

    \28\ See Volume I of the Petition, at 17-19 and Exhibits GEN-2, 
GEN-7, and GEN-11.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by reduced market share; underselling and price suppression 
or depression; lost sales and revenues; declining production and 
shipments; declining net sales; and deteriorating financial 
performance.\29\ We have assessed the allegations and supporting 
evidence regarding material injury, threat of material injury, and 
causation, and we have determined that these allegations are properly 
supported by adequate evidence, and meet the statutory requirements for 
initiation.\30\
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    \29\ See Volume I of the Petition, at 12-26 and Exhibits GEN-2, 
GEN-6 through GEN-9, and GEN-11 through GEN-15.
    \30\ See PRC CVD Initiation Checklist, at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Certain Tool Chests and Cabinets from the People's Republic 
of China and the Socialist Republic of Vietnam.
---------------------------------------------------------------------------

Initiation of CVD Investigation

    Section 702(b)(1) of the Act requires the Department to initiate a 
CVD investigation whenever an interested party files a CVD petition on 
behalf of an industry that (1) alleges the elements necessary for an 
imposition of a duty under section 701(a) of the Act and (2) is 
accompanied by information reasonably available to the petitioner 
supporting the allegations.
    The petitioner alleges that producers/exporters of tool chests in 
the PRC benefited from countervailable subsidies bestowed by the GOC. 
The Department examined the Petition and finds that it complies with 
the requirements of section 702(b)(1) of the Act. Therefore, in 
accordance with section 702(b)(1) of the Act, we are initiating a CVD 
investigation to determine whether manufacturers, producers, and/or 
exporters of tool chests from the PRC receive countervailable subsidies 
from the GOC.
    Under the Trade Preferences Extension Act of 2015, numerous 
amendments to the AD and CVD laws were made.\31\ The 2015 law does not 
specify dates of application for those amendments. On August 6, 2015, 
the Department published an interpretative rule, in which it announced 
the applicability dates for each amendment to the Act, except for 
amendments contained in section 771(7) of the Act, which relate to 
determinations of material injury by the ITC.\32\ The amendments to 
sections 776 and 782 of the Act are applicable to all determinations 
made on or after August 6, 2015, and, therefore, apply to this CVD 
investigation.\33\
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    \31\ See Trade Preferences Extension Act of 2015, Public Law 
114-27, 129 Stat. 362 (2015).
    \32\ See Dates of Application of Amendments to the Antidumping 
and Countervailing Duty Laws Made by the Trade Preferences Extension 
Act of 2015, 80 FR 46793 (August 6, 2015). The 2015 amendments may 
be found at https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
    \33\ Id., at 46794-95.
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Subsidy Allegations

    Based on our review of the Petition, we find that there is 
sufficient information to initiate a CVD investigation on 17 of the 18 
alleged programs. For a full discussion of the basis for our decision 
to initiate or not initiate on each program, see the PRC

[[Page 21519]]

CVD Initiation Checklist. A public version of the initiation checklist 
for this investigation is available on ACCESS.
    In accordance with section 703(b)(1) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determination in this investigation no later than 65 days after the 
date of initiation.

Respondent Selection

    The Department normally selects respondents in a CVD investigation 
using U.S. Customs and Border Protection (CBP) entry data. However, for 
this investigation, the Harmonized Tariff Schedule of the United States 
(HTSUS) numbers the subject merchandise would enter under are basket 
categories containing many products unrelated to tool chests, and the 
HTSUS numbers allow for the reporting of differing units of quantity. 
Therefore, we cannot rely on CBP entry data in selecting respondents. 
Instead, for this investigation, the Department will request quantity 
and value (Q&V) information from known exporters and producers 
identified, with complete contact information, in the Petition. In 
addition, the Department will post the Q&V questionnaire along with 
filing instructions on the Enforcement & Compliance Web site at https://www.trade.gov/enforcement/news.asp.
    Producers/exporters of tool chests from the PRC that do not receive 
Q&V questionnaires by mail may still submit a response to the Q&V 
questionnaire and can obtain a copy from the Enforcement & Compliance 
Web site. The Q&V response must be submitted by the relevant PRC 
exporters/producers no later than May 11, 2017. All Q&V responses must 
be filed electronically via ACCESS.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOC via ACCESS. Because of the particularly large 
number of producers/exporters identified in the Petition, the 
Department considers the service of the public version of the Petition 
to the foreign producers/exporters satisfied by delivery of the public 
version to the government of the PRC, consistent with 19 CFR 
351.203(c)(2).

ITC Notification

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

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of tool chests from the PRC are materially 
injuring, or threatening material injury to, a U.S. industry.\34\ A 
negative ITC determination will result in the investigation being 
terminated; \35\ otherwise, this investigation will proceed according 
to statutory and regulatory time limits.
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    \34\ See section 703(a)(2) of the Act.
    \35\ See section 703(a)(1) of the Act.
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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 the Department; and (v) evidence other than 
factual information described in (i) through (iv). The regulation 
requires any party, when submitting factual information, to specify 
under which subsection of 19 CFR 351.102(b)(21) the information is 
being submitted 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. 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. Parties should review the 
regulations prior to submitting factual information in this 
investigation.

Extension of Time Limits Regulation

    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 the Secretary. 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 expires. 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. on the due 
date. Under certain circumstances, we may elect to specify a different 
time limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in the letter or memorandum setting 
forth the deadline (including a specified time) by which extension 
requests must be filed to be considered timely. An extension request 
must be made in a separate, stand-alone submission; under limited 
circumstances we will grant untimely-filed requests for the extension 
of time limits. Review Extension of Time Limits; Final Rule, 78 FR 
57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual 
information in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\36\ 
Parties are hereby reminded that revised certification requirements are 
in effect for company/government officials, as well as their 
representatives. Investigations initiated on the basis of petitions 
filed on or after August 16, 2013, and other segments of any AD or CVD 
proceedings initiated on or after August 16, 2013, should use the 
formats for the revised certifications provided at the end of the Final 
Rule.\37\ The Department intends to reject factual submissions if the 
submitting party does not comply with the applicable revised 
certification requirements.
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    \36\ See section 782(b) of the Act.
    \37\ See Certification of Factual Information To Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at 
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
Administrative Protective Order (APO) in accordance with 19 CFR 
351.305. On January 22, 2008, the Department published Antidumping and 
Countervailing Duty Proceedings: Documents Submission Procedures; APO 
Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to 
participate in this investigation should ensure that they meet the 
requirements of these procedures (e.g., the filing of letters of 
appearance as discussed at 19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act.


[[Page 21520]]


    Dated: May 1, 2017.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers certain metal tool chests 
and tool cabinets, with drawers, (tool chests and cabinets), from 
the People's Republic of China (the PRC). The scope covers all metal 
tool chests and cabinets, including top chests, intermediate chests, 
tool cabinets and side cabinets, storage units, mobile work benches, 
and work stations and that have the following physical 
characteristics:
    (1) A body made of carbon, alloy, or stainless steel and/or 
other metals;
    (2) two or more drawers for storage in each individual unit;
    (3) a width (side to side) exceeding 15 inches for side cabinets 
and exceeding 21 inches for all other individual units but not 
exceeding 60 inches;
    (4) a drawer depth (front to back) exceeding 10 inches but not 
exceeding 24 inches; and
    (5) prepackaged for retail sale.
    For purposes of this scope, the width parameter applies to each 
individual unit, i.e., each individual top chest, intermediate top 
chest, tool cabinet, side cabinet, storage unit, mobile work bench, 
and work station.
    Prepackaged for retail sale means the units are packaged in a 
cardboard box or other container suitable for retail display and 
sale. Subject tool chests and cabinets are covered whether imported 
in assembled or unassembled form. Subject merchandise includes tool 
chests and cabinets produced in the PRC but assembled, prepackaged 
for sale, or subject to other minor processing in a third country 
prior to importation into the United States. Similarly, it would 
include tool chests and cabinets produced in the PRC that are later 
found to be assembled, prepackaged for sale, or subject to other 
minor processing after importation into the United States.
    Subject tool chests and cabinets may also have doors and shelves 
in addition to drawers, may have handles (typically mounted on the 
sides), and may have a work surface on the top. Subject tool chests 
and cabinets may be uncoated (e.g., stainless steel), painted, 
powder coated, galvanized, or otherwise coated for corrosion 
protection or aesthetic appearance.
    Subject tool chests and cabinets may be packaged as individual 
units or in sets. When packaged in sets, they typically include a 
cabinet with one or more chests that stack on top of the cabinet. 
Tool cabinets act as a base tool storage unit and typically have 
rollers, casters, or wheels to permit them to be moved more easily 
when loaded with tools. Work stations and work benches are tool 
cabinets with a work surface on the top that may be made of rubber, 
plastic, metal, wood, or other materials.
    Top chests are designed to be used with a tool cabinet to form a 
tool storage unit. The top chests may be mounted on top of the base 
tool cabinet or onto an intermediate chest. They are often packaged 
as a set with tool cabinets or intermediate chests, but may also be 
packaged separately. They may be packaged with mounting hardware 
(e.g., bolts) and instructions for assembling them onto the base 
tool cabinet or onto an intermediate tool chest which rests on the 
base tool cabinet. Smaller top chests typically have handles on the 
sides, while the larger top chests typically lack handles. 
Intermediate tool chests are designed to fit on top of the floor 
standing tool cabinet and to be used underneath the top tool chest. 
Although they may be packaged or used separately from the tool 
cabinet, intermediate chests are designed to be used in conjunction 
with tool cabinets. The intermediate chests typically do not have 
handles. The intermediate and top chests may have the capability of 
being bolted together.
    Side cabinets are designed to be bolted or otherwise attached to 
the side of the base storage cabinet to expand the storage capacity 
of the base tool cabinet.
    Subject tool chests and cabinets also may be packaged with a 
tool set included. Packaging a subject tool chest and cabinet with a 
tool set does not remove an otherwise covered subject tool chest and 
cabinet from the scope. When this occurs the tools are not part of 
the subject merchandise.
    Excluded from the scope of the investigation are tool boxes, 
chests and cabinets with bodies made of plastic, carbon fiber, wood, 
or other non-metallic substances. Also excluded from the scope of 
the investigation are portable metal tool boxes. Portable metal tool 
boxes have each of the following characteristics: (1) Fewer than 
three drawers; (2) a handle on the top that allows the tool box to 
be carried by hand; and (3) a width that is 21 inches or less; and 
depth (front to back) not exceeding 10 inches.
    Also excluded from the scope of the investigation are industrial 
grade steel tool chests and cabinets. The excluded industrial grade 
steel tool chests and cabinets are those:
    (1) Having a body that is over 60 inches wide; or
    (2) having each of the following physical characteristics:
    (a) A body made of steel that is 0.055'' or more in thickness;
    (b) all drawers over 21'' deep;
    (c) all drawer slides rated for 200 lbs. or more; and
    (d) not prepackaged for retail sale.
    Also excluded from the scope of the investigation are work 
benches with fewer than two drawers. Excluded work benches have a 
solid top working surface, fewer than two drawers, are supported by 
legs and have no solid front, side, or back panels enclosing the 
body of the unit.
    Also excluded from the scope of the investigation are metal 
filing cabinets that are configured to hold hanging file folders and 
are classified in the Harmonized Tariff Schedule of the United 
States (HTSUS) at subheading 9403.10.0020.
    Merchandise subject to the investigation is classified under 
HTSUS categories 9403.20.0021, 9403.20.0026, 9403.20.0030 and 
7326.90.8688, but may also be classified under HTSUS category 
7326.90.3500. While HTSUS subheadings are provided for convenience 
and Customs purposes, the written description of the scope of this 
investigation is dispositive.

[FR Doc. 2017-09371 Filed 5-8-17; 8:45 am]
BILLING CODE 3510-DS-P
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