Certain Tow-Behind Lawn Groomers and Certain Parts Thereof from the People's Republic of China: Initiation of Countervailing Duty Investigation, 42324-42328 [E8-16627]
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42324
Federal Register / Vol. 73, No. 140 / Monday, July 21, 2008 / Notices
This determination is issued and
published in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: July 14, 2008.
David M. Spooner,
Assistant Secretary for Import
Administration.
Appendix I
List of Issues
Company–Specific Issues
Comment 1: The Bona Fides of QHD
Sanhai’s Single POR Sale
Comment 2: Selection of Mandatory
Respondents–Zhejiang
Comment 3: Selection of the
Appropriate Separate Rate Applied to
Zhejiang’s Sales
General Issues
Comment 4: Selection of Appropriate
Surrogate Value for Raw Honey
Comment 5: Selection of Appropriate
Surrogate Values–Coal, Labels, and
Aluminum Seals
[FR Doc. E8–16624 Filed 7–18–08; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–940]
Certain Tow–Behind Lawn Groomers
and Certain Parts Thereof from the
People’s Republic of China: Initiation
of Countervailing Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: July 21, 2008.
FOR FURTHER INFORMATION CONTACT:
Gene Calvert or Paul Matino, AD/CVD
Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, N.W., Washington, DC 20230;
telephone: (202) 482–3586 and (202)
482–4146, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
PWALKER on PROD1PC71 with NOTICES
The Petition
On June 24, 2008, the Department of
Commerce (the Department) received a
petition filed in proper form by Agri–
Fab, Inc. (petitioner), domestic
producers of certain tow–behind lawn
groomers and certain parts thereof (lawn
groomers) from the People’s Republic of
China (PRC). On June 27, 2008, the
Department issued requests for
additional information and clarification
of certain areas of the petition involving
general issues and the countervailable
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subsidy allegations. Based on the
Department’s request, petitioner timely
filed additional information concerning
the petition on July 2, 2008. On June 27
and July 7, 2008, the Department issued
requests for additional information and
clarification of certain areas of the
petition. Based on the Department’s
requests, petitioner filed supplemental
information on the following topics:
general issues (i.e., scope, injury, and
industry support) and scope on July 9,
2008. In addition, petitioner provided
an additional clarification of the scope
of the Petition on July 10, 2009. See
Memorandum from Maisha Cryor,
Senior International Trade Compliance
Analyst, to the File, ‘‘Request to Agri–
Fab, Inc. via Telephone Conversation,
July 10, 2008.’’ Petitioner also provided
additional information on industry
support on July 10, 2008. See
Memorandum from Meredith A.W.
Rutherford to the File, Petitions for the
Imposition of Antidumping and
Countervailing Duties – Certain Tow
Behind Lawn Groomers and Certain
Parts Thereof from the People’s
Republic of China: Phone Call with
Petitioner Regarding Industry Support,
dated July 9, 2008. Lastly, petitioner
provided an additional clarification to
the scope on July 11, 2008. See
Memorandum from Maisha Cryor,
Senior International Trade Compliance
Analyst, to the File, ‘‘Scope
Clarification,’’ July 11, 2008.
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), petitioner alleges that
manufacturers, producers, or exporters
of lawn groomers in the PRC received
countervailable subsidies within the
meaning of section 701 of the Act, and
that imports are materially injuring, or
threatening material injury to, an
industry in the United States.
The Department finds that petitioner
filed this petition on behalf of the
domestic industry because it is an
interested party as defined in section
771(9)(C) of the Act, and petitioner has
demonstrated sufficient industry
support with respect to the
countervailing duty investigation that it
is requesting the Department to initiate
(see infra, ‘‘Determination of Industry
Support for the Petition’’).
Period of Investigation
The anticipated period of
investigation (POI) is calendar year
2007. See 19 CFR 351.204(b)(2).
Scope of the Investigation
The merchandise covered by this
investigation is certain lawn groomers
and certain parts thereof. See
Attachment I to this notice for a
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complete description of the
merchandise covered by this
investigation.
Comments on Scope of the Investigation
During our review of the petition, we
discussed the scope with petitioner to
ensure that it is an accurate reflection of
the merchandise for which the domestic
industry is seeking relief. Moreover, as
discussed in the preamble to the
regulations (see Antidumping Duties;
Countervailing Duties; Final Rule, 62 FR
27296, 27323 (May 19, 1997)), we are
setting aside a period for interested
parties to raise issues regarding product
coverage. The Department encourages
all interested parties to submit such
comments by August 4, 2008, which is
21 calendar days from the date of
signature of this notice.1 Comments
should be addressed to Import
Administration’s APO/Dockets Unit,
Room 1870, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, N.W., Washington, DC 20230.
The period of scope consultations is
intended to provide the Department
with ample opportunity to consider all
comments and to consult with parties
prior to the issuance of the preliminary
determination.
Consultations
Pursuant to section 702(b)(4)(A)(ii) of
the Act, the Department invited
representatives of the Government of the
People’s Republic of China (the GOC)
for consultations with respect to the
countervailing duty petition. The
Department held these consultations on
July 9, 2008. See Memorandum to the
File, Petition on Certain Tow Behind
Lawn Grooming Products and Certain
Parts Therof from the People’s Republic
of China: Consultations with the
Government of the People’s Republic of
China, July 11, 2008 and on file in the
Central Records Unit (CRU), Room 1117
of the main Commerce Building.
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
1 Twenty calendar days after the date of signature
is Sunday, August 3, 2008.
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PWALKER on PROD1PC71 with NOTICES
Federal Register / Vol. 73, No. 140 / Monday, July 21, 2008 / Notices
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.
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 (section
771(10) of the Act), 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. 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), cert. denied 492 U.S. 919 (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, petitioner does not offer a
definition of domestic like product
distinct from the scope of the
investigation. Based on our analysis of
the information submitted on the
record, we have determined that certain
tow behind lawn groomers and certain
lawn groomer parts constitute a single
domestic like product and we have
analyzed industry support in terms of
that domestic like product. For a
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discussion of the domestic like product
analysis in this case, see Countervailing
Duty Investigation Initiation Checklist:
Certain Tow Behind Lawn Groomers
and Certain Parts Thereof from the
People’s Republic of China (Initiation
Checklist), Industry Support at
Attachment II, on file in the CRU.
In determining whether petitioner has
standing (i.e., those domestic workers
and producers supporting the petition
account for (1) at least 25 percent of the
total production of the domestic like
product and (2) 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), we
considered the industry support data
contained in the petition with reference
to the domestic like product as defined
in the ‘‘Scope of Investigation’’ section
above. To establish industry support,
petitioner provided its sales volume of
the domestic like product for calendar
year 2007, and compared that to total
sales volume of the domestic like
product for the industry. Petitioner
stated that it ‘‘used sales volumes . . .
as a surrogate for production, because it
does not have access to the actual
production data of other domestic {lawn
groomer} producers.’’ See Petition,
Volume 1, at 2. We have relied upon
data petitioner provided for purposes of
measuring industry support. For further
discussion, see Initiation Checklist at
Attachment II (Analysis of Industry
Support for the Petition).
The Department’s review of the data
provided in the Petition, supplemental
submissions, and other information
readily available to the Department
indicates that petitioner has established
industry support. First, the Petition
establishes 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). See Section 702(c)(4)(D) of the
Act. 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. 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
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42325
expressing support for, or opposition to,
the Petition. 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. See Initiation
Checklist at Attachment II (Analysis of
Industry Support for the Petition).
The Department finds that 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 has
demonstrated sufficient industry
support with respect to the
countervailing duty investigation that it
is requesting the Department initiate.
See Initiation Checklist at Attachment II
(Analysis of Industry Support for the
Petition).
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
these investigations. 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
Petitioner alleges that imports of lawn
groomers from the PRC are benefitting
from countervailable subsidies and that
such imports are causing or threaten to
cause, material injury to the domestic
industry producing lawn groomers. In
addition, petitioner alleges that
subsidized imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.
Petitioner contends that the industry’s
injured condition is illustrated by
reduced market share, underselling and
price depressing and suppressing
effects, lost sales and revenue, reduced
production and capacity utilization,
reduced shipments, reduced
employment, and an overall decline in
financial performance. 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. See
Initiation Checklist at Attachment III
(Analysis of Injury Allegations and
Evidence of Material Injury and
Causation).
Subsidy Allegations
Section 702(b) of the Act requires the
Department to initiate a countervailing
duty proceeding whenever an interested
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3. VAT Refunds for Encouraged FIEs
Purchasing Domestic Equipment in
Zhejiang Province
4. VAT and Import Tariff Rebates for
Encouraged FIEs Purchasing
Imported Equipment in Zhejiang
Province
party files a 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 petitioner
supporting the allegations. The
Department has examined the
countervailing duty petition on certain
lawn groomers and parts thereof from
the PRC and found that it complies with
the requirements of section 702(b) of the
Act. Therefore, in accordance with
section 702(b) of the Act, we are
initiating a countervailing duty
investigation to determine whether
manufacturers, producers, or exporters
of certain lawn groomers and parts
thereof from the PRC receive
countervailable subsidies. For a
discussion of evidence supporting our
initiation determination, see Initiation
Checklist.
We are including in our investigation
the following programs alleged in the
petition to have provided
countervailable subsidies to producers
and exporters of the subject
merchandise:
A. National Preferential Income Tax
Programs
1. Preferential Tax Policies for
Enterprises with Foreign
Investment (Two Free, Three Half
Program)
2. Income Tax Reductions for Export–
Oriented Enterprises
3. Refund of Enterprise Income Taxes
on FIE Profits Reinvested in an
Export-Oriented Enterprise
5. Export–Based ‘‘Reward’’ Subsidies
for Enterprises in Zhejiang Province
6. Refunds of Legal Fees Paid in
Antidumping and Countervailing
Duty Investigations in Zhejiang
Province and Jiashan County
7. Income Tax Programs in Huimin
Industrial Park in Zhejiang Province
8. Export–Based ‘‘Reward’’ Subsidies
for Enterprises in Huimin Industrial
Park in Zhejiang Province
9. VAT and Import Tariff Rebates for
Encouraged FIEs Purchasing
Imported Equipment in Huimin
Industrial Park in Zhejiang Province
10. Income Tax Programs in the
Hangzhou Export Processing Zone
in Zhejiang Province
11. Export Incentive Payments in the
Form of VAT Rebates for
Companies Located in the
Hangzhou Export Processing Zone
in Zhejiang Province
E. Preferential Policies and Benefits for
Enterprises Located in Shandong
Province
1. Provision of Land for Less Than
Adequate Remuneration for Export–
Oriented FIEs for Enterprises
Located in Shandong Province
F. Preferential Policies and Benefits in
Qingdao Municipality
1. Income Tax Programs for FIEs
Located in Qingdao Municipality
2. Income Tax Offsets and/or Refunds
for FIEs Purchasing Domestic
Equipment in Qingdao
Municipality
B. Value Added Tax (VAT) and Indirect
Tax Programs at the National Level
1. Income Tax Credits for FIEs
Purchasing Domestically Produced
Equipment
2. Income Tax Credits on Purchases of
Domestically–Produced Equipment
by Domestically Owned Companies
3. VAT refunds for FIEs Purchasing
Domestically Produced Equipment
4. Import Tariff and VAT Exemptions
for Encouraged Industries Importing
Equipment for Domestic Operations
5. Export Incentive Payments
Characterized as ‘‘VAT Rebates’’
PWALKER on PROD1PC71 with NOTICES
C. Provision of Hot–Rolled Steel at Less
Than Adequate Remuneration
D. Provincial and Local Income Tax
Programs
1. Reduced Income Taxes Based on
Geographic Location (Zhejiang and
Shandong Provinces)
2. Income Tax Preferential Programs
for FIEs in Zhejiang Province
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19:22 Jul 18, 2008
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3. VAT and Import Tariff Rebates for
Encouraged FIEs Purchasing
Imported Equipment in Qingdao
Municipality
4. Provision of Land for Less Than
Adequate Remuneration for Export–
Oriented FIEs Located in Qingdao
Municipality
G. Preferential Policies and Benefits for
Enterprises Located in the Lingang
Processing Industrial Zone in Qingdao
Municipality
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1. Income Tax Programs in the
Lingang Processing Industrial Zone
2. VAT and Import Tariff Rebates for
Encouraged FIEs Purchasing
Imported Equipment in the Lingang
Processing Industrial Zone
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For further information explaining
why the Department is investigating
these programs, see Initiation Checklist.
We are not including in our
investigation the following programs
alleged to benefit producers and
exporters of the subject merchandise in
the PRC.
1. Preferential Loans Pursuant to the
Iron and Steel Policy
2. Preferential Lending Policies in
Pursuant to Provincial Five–Year Plans
(Shandong and Zhejiang Provinces)
For further explanation of the
Department’s decision not to investigate
these programs, see Initiation Checklist.
Application of the Countervailing Duty
Law to the PRC
The Department has treated the PRC
as a non–market economy (NME)
country in all past antidumping duty
investigations and administrative
reviews. In accordance with section
771(18)(C)(i) of the Act, any
determination that a country is an NME
country shall remain in effect until
revoked by the administering authority.
See, e.g., Tapered Roller Bearings and
Parts Thereof, Finished and Unfinished,
(TRBs) From the People’s Republic of
China: Preliminary Results of 2001–
2002 Administrative Review and Partial
Rescission of Review, 68 FR 7500
(February 14, 2003), unchanged in TRBs
from the People’s Republic of China:
Final Results of 2001–2002
Administrative Review, 68 FR 70488
(December 18, 2003). In the final
affirmative countervailing duty
determination on coated free sheet
paper from the PRC, the Department
determined that the current nature of
the PRC economy does not create
obstacles to applying the necessary
criteria in the CVD law. See Coated Free
Sheet Paper from the People’s Republic
of China: Final Affirmative
Countervailing Duty Determination, 72
FR 60645 (October 25, 2007), and the
accompanying Issues and Decision
Memorandum at Comment 1; see also
Circular Welded Carbon Quality Steel
Pipe from the People’s Republic of
China: Final Affirmative Countervailing
Duty Determination and Final
Affirmative Determination of Critical
Circumstances, 73 FR 31966 (June 5,
2008) and accompanying Issues and
Decision Memorandum at Comment 1.
Therefore, because petitioner has
provided sufficient information to
support its allegations to meet the
statutory criteria for initiating a
countervailing duty investigation of
certain tow behind lawn groomers and
parts thereof from the PRC, initiation of
a countervailing duty investigation is
warranted in this case.
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Respondent Selection
To determine the total and relative
volume and value of import data for
each potential respondent, the
Department normally relies on Customs
and Border Protection import data for
the POI. However, in the instant
proceeding, the Harmonized Tariff
Schedule of the United States (HTSUS)
categories that include subject
merchandise are very broad, and
include products other than products
subject to this investigation. Further,
imports of subject merchandise, as
estimated by petitioner, account for only
3.8 percent by value of imports under
the relevant HTSUS categories.
Therefore, because of the unique
circumstances of this case, the
Department will issue ‘‘Quantity and
Value Questionnaires’’ to potential
respondents for the purposes of
respondent selection.
The Department requires that the
respondents submit a response to the
quantity and value questionnaire. See,
e.g., Circular Welded Austenitic
Stainless Pressure Pipe from the
People’s Republic of China: Initiation of
Antidumping Duty Investigation, 73 FR
10221, 10225 (February 26, 2008). This
response must be submitted by all
exporters/producers no later than July
28, 2008. The Department will post the
quantity and value questionnaire along
with the filing instructions on the
Import Administration’s website, at
https://ia.ita.doc.gov/ia–highlights-and–
news.html. The Department will send
the quantity and value questionnaire to
those PRC companies identified in the
July 8, 2008, Supplement to the Petition,
at Exhibit 2.
Distribution of Copies of the Petition
In accordance with section
702(b)(4)(A)(i) of the Act, a copy of the
public version of the petition has been
provided to the GOC. To the extent
practicable, we will attempt to provide
a copy of the public version of the
petition to each exporter named in the
petition, as provided under 19 CFR
351.203(c)(2).
PWALKER on PROD1PC71 with NOTICES
ITC Notification
We have notified the ITC of our
initiation, as required by section 702(d)
of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine,
by no later than August 8, 2008,
whether there is reasonable indication
that imports of subsidized certain tow
behind lawn groomers and parts thereof
from the PRC are causing material
injury, or threatening to cause material
injury, to a U.S. industry.
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See Section 703(a)(2) of the Act. A
negative ITC determination will result
in the investigation being terminated;
otherwise, the investigation will
proceed according to statutory and
regulatory time limits.
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: July 14, 2008.
David M. Spooner,
Assistant Secretaryfor Import Administration.
Appendix I
Scope of the Countervailing Duty
Investigation Lawn Groomers from the
People’s Republic of China
The scope of this investigation covers
certain non–motorized tow behind lawn
groomers (‘‘lawn groomers’’),
manufactured from any material, and
certain parts thereof. Lawn groomers are
defined as lawn sweepers, aerators,
dethatchers, and spreaders. Unless
specifically excluded, lawn groomers
that are designed to perform at least one
of the functions listed above are
included in the scope of this
investigation, even if the lawn groomer
is designed to perform additional non–
subject functions (e.g., mowing).
All lawn groomers are designed to
incorporate a hitch, of any
configuration, which allows the product
to be towed behind a vehicle. Lawn
groomers that are designed to
incorporate both a hitch and a push
handle, of any type, are also covered by
the scope of this investigation. The
hitch and handle may be permanently
attached or removable, and they may be
attached on opposite sides or on the
same side of the lawn groomer. Lawn
groomers designed to incorporate a
hitch, but where the hitch is not
attached to the lawn groomer, are also
included in the scope of the
investigation.
Lawn sweepers consist of a frame, as
well as a series of brushes attached to
an axle or shaft which allows the
brushing component to rotate. Lawn
sweepers also include a container
(which is a receptacle into which debris
swept from the lawn or turf is
deposited) supported by the frame.
Aerators consist of a frame, as well as
an aerating component that is attached
to an axle or shaft which allows the
aerating component to rotate. The
aerating component is made up of a set
of knives fixed to a plate (known as a
‘‘plug aerator’’), a series of discs with
protruding spikes (a ‘‘spike aerator’’), or
any other configuration, that are
designed to create holes or cavities in a
lawn or turf surface. Dethatchers consist
of a frame, as well as a series of tines
designed to remove material (e.g., dead
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grass or leaves) or other debris from the
lawn or turf. The dethatcher tines are
attached to and suspended from the
frame. Lawn spreaders consist of a
frame, as well as a hopper (i.e., a
container of any size, shape, or material)
that holds a media to be spread on the
lawn or turf. The media can be
distributed by means of a rotating
spreader plate that broadcasts the media
(‘‘broadcast spreader’’), a rotating
agitator that allows the media to be
released at a consistent rate (‘‘drop
spreader’’), or any other configuration.
Lawn dethatchers with a net fully–
assembled weight (i.e., without packing,
additional weights, or accessories) of
100 pounds or less are covered by the
scope of the investigation. Other lawn
groomers–sweepers, aerators, and
spreaders–with a net fully–assembled
weight (i.e., without packing, additional
weights, or accessories) of 200 pounds
or less are covered by the scope of the
investigation.
Also included in the scope of the
investigation are modular units,
consisting of a chassis that is designed
to incorporate a hitch, where the hitch
may or may not be included, which
allows modules that perform sweeping,
aerating, dethatching, or spreading
operations to be interchanged. Modular
units–when imported with one or more
lawn grooming modules–with a fully
assembled net weight (i.e., without
packing, additional weights, or
accessories) of 200 pounds or less when
including a single module, are included
in the scope of the investigation.
Modular unit chasses, imported without
a lawn grooming module and with a
fully assembled net weight (i.e., without
packing, additional weights, or
accessories) of 125 pounds or less, are
also covered by the scope of the order.
When imported separately, modules
that are designed to perform subject
lawn grooming functions (i.e., sweeping,
aerating, dethatching, or spreading),
with a fully assembled net weight (i.e.,
without packing, additional weights, or
accessories) of 75 pounds or less, and
that are imported with or without a
hitch, are also covered by the scope.
Lawn groomers, assembled or
unassembled, are covered by this
investigation. For purposes of this
investigation, ‘‘unassembled lawn
groomers’’ consist of either 1) all parts
necessary to make a fully assembled
lawn groomer, or 2) any combination of
parts, constituting a less than complete,
unassembled lawn groomer, with a
minimum of two of the following
‘‘major components–:
1) an assembled or unassembled
brush housing designed to be used
in a lawn sweeper, where a brush
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Federal Register / Vol. 73, No. 140 / Monday, July 21, 2008 / Notices
PWALKER on PROD1PC71 with NOTICES
housing is defined as a component
housing the brush assembly, and
consisting of a wrapper which
covers the brush assembly and two
end plates attached to the wrapper;
2) a sweeper brush;
3) an aerator or dethatcher weight
tray, or similar component designed
to allow weights of any sort to be
added to the unit;
4) a spreader hopper;
5) a rotating spreader plate or agitator,
or other component designed for
distributing media in a lawn
spreader;
6) dethatcher tines;
7) aerator spikes, plugs, or other
aerating component; or
8) a hitch.
The major components or parts of
lawn groomers that are individually
covered by this investigation under the
term ‘‘certain parts thereof’’ are: (1)
brush housings, where the wrapper and
end plates incorporating the brush
assembly may be individual pieces or a
single piece; and (2) weight trays, or
similar components designed to allow
weights of any sort to be added to a
dethatcher or an aerator unit.
The products for which relief is
sought specifically exclude the
following: 1) agricultural implements
designed to work (e.g., churn, burrow,
till, etc.) soil, such as cultivators,
harrows, and plows; 2) lawn or farm
carts and wagons that do not groom
lawns; 3) grooming products
incorporating a motor or an engine for
the purpose of operating and/or
propelling the lawn groomer; 4) lawn
groomers that are designed to be hand
held or are designed to be attached
directly to the frame of a vehicle, rather
than towed; 5) ‘‘push’’ lawn grooming
products that incorporate a push handle
rather than a hitch, and which are
designed solely to be manually
operated; 6) dethatchers with a net
assembled weight (i.e., without packing,
additional weights, or accessories) of
more than 100 pounds, or lawn
groomers–sweepers, aerators, and
spreaders–with a net fully–assembled
weight (i.e., without packing, additional
weights, or accessories) of more than
200 pounds; and 7) lawn rollers
designed to flatten grass and turf,
including lawn rollers which
incorporate an aerator component (e.g.,
‘‘drum–style’’ spike aerators).
The lawn groomers that are the
subject of this investigation are
currently classifiable in the Harmonized
Tariff Schedule of the United States
(‘‘HTSUS’’) statistical reporting numbers
8432.40.0000, 8432.80.0000,
8432.90.0030, 8432.90.0080,
VerDate Aug<31>2005
19:22 Jul 18, 2008
Jkt 214001
8479.89.9897, 8479.90.9496, and
9603.50.0000. These HTSUS provisions
are given for reference and customs
purposes only, and the description of
merchandise is dispositive for
determining the scope of the product
included in this petition.
[FR Doc. E8–16627 Filed 7–18–08; 8:45 am]
BILLING CODE 3510–DS–S
DEPARTMENT OF COMMERCE
International Trade Administration
Manufacturing and Services’
Sustainable Manufacturing Initiative;
Update
Notice of first round of regional
showcase tours in support of
Commerce’s Sustainable Manufacturing
Initiative; request for suggestions of
other cities and regions to be considered
for future tours.
ACTION:
SUMMARY: The International Trade
Administration’s Manufacturing &
Services Unit is planning a new project
as part of its Sustainable Manufacturing
Initiative, to be known as ‘‘SMART,’’
which through a series of regional tours
across the United States will showcase
sustainable manufacturing practices.
SMART (‘‘Sustainable Manufacturing’s
American Regional Tours’’) will travel
to a number of cities and regions in
order to demonstrate the feasibility and
viability of sustainable manufacturing
practices for U.S. firms.
DATES: Submit comments no later than
30 days after the date of this notice.
ADDRESSES: Address all comments
concerning this notice to Sustainable
Manufacturing’s American Regional
Tours, U.S. Department of Commerce,
Room 2213, 1401 Constitution Ave.,
NW., Washington, DC 20230 (or via the
Internet at susmanuf@mail.doc.gov).
FOR FURTHER INFORMATION CONTACT:
Morgan Barr in Manufacturing &
Services’ Office of Trade Policy
Analysis, 202–482–3703.
SUPPLEMENTARY INFORMATION:
Sustainable manufacturing practices in
the United States have become
increasingly popular in recent years as
companies look for new ways to make
more efficient use of resources, ensure
compliance with domestic and
international regulations related to
environment and health, enhance the
marketability of their products and
services, and last but not least, increase
profitability. As the trend towards
sustainable manufacturing practices
grows, so do its implications for U.S.
global competitiveness and firm
profitability.
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
At the Department of Commerce, one
of our main goals is to foster domestic
and international conditions for doing
business that allow U.S. firms to
successfully compete as globalization
evolves. Evidence has shown that firms
incorporating both environmentally and
economically sustainable manufacturing
processes can gain competitive
advantages by achieving inherent cost
savings (i.e., improving their energy
efficiency, minimizing raw materials
usage, etc.) while at the same time
reaping societal benefits for being good
stewards of the environment. Many U.S.
firms have demonstrated that being
environmentally sustainable can also
mean being more profitable.
In order to provide effective and
continued support to U.S. companies in
their sustainable manufacturing efforts,
Commerce’s Manufacturing and
Services (MAS) unit has launched a
Sustainable Manufacturing Initiative
and public-private dialogue that aims to
(a) identify U.S. industry’s most
pressing sustainable manufacturing
challenges and (b) facilitate public and
private sector efforts to address these
challenges.
To help maintain and enhance
forward momentum on this initiative,
MAS is introducing its SMART project,
which implements one of the four ‘‘next
steps’’ identified by the Initiative’s
participants at MAS’s September 2007
conference and enumerated in the April
2008 Federal Register notice (Vol. 73,
No. 76/Friday, April 18, 2008): leading
regional showcase tours to promote
sustainable manufacturing.
Numerous U.S. companies have
voiced concerns over the lack of
visibility that sustainable manufacturing
receives nationwide and the lack of
information U.S. manufacturers possess
in this field. In order to continue
spreading awareness of sustainable
manufacturing’s benefits, both to U.S.
global competitiveness and the
environment, MAS will hold the first
round of SMART cities and regions: St.
Louis, MO (July 28, 2008), Grand
Rapids, MI (September 3, 2008), and
Rochester, NY (September 23, 2008).
SMART city events will most likely
include tours of local manufacturing
facilities that showcase those firms that
are incorporating sustainable
manufacturing techniques into their
production processes or have facilities
that are otherwise sustainable. The goal
of these tours is to demonstrate to other
similarly situated firms in the area that
incorporating sustainable manufacturing
techniques into the production cycle is
not cost-prohibitive and, in fact, can
help the long-term economic viability of
American manufacturers.
E:\FR\FM\21JYN1.SGM
21JYN1
]]>Agencies
[Federal Register Volume 73, Number 140 (Monday, July 21, 2008)]
[Notices]
[Pages 42324-42328]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16627]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-940]
Certain Tow-Behind Lawn Groomers and Certain Parts Thereof from
the People's Republic of China: Initiation of Countervailing Duty
Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
EFFECTIVE DATE: July 21, 2008.
FOR FURTHER INFORMATION CONTACT: Gene Calvert or Paul Matino, AD/CVD
Operations, Office 6, Import Administration, International Trade
Administration, U.S. Department of Commerce, 14\th\ Street and
Constitution Avenue, N.W., Washington, DC 20230; telephone: (202) 482-
3586 and (202) 482-4146, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On June 24, 2008, the Department of Commerce (the Department)
received a petition filed in proper form by Agri-Fab, Inc.
(petitioner), domestic producers of certain tow-behind lawn groomers
and certain parts thereof (lawn groomers) from the People's Republic of
China (PRC). On June 27, 2008, the Department issued requests for
additional information and clarification of certain areas of the
petition involving general issues and the countervailable subsidy
allegations. Based on the Department's request, petitioner timely filed
additional information concerning the petition on July 2, 2008. On June
27 and July 7, 2008, the Department issued requests for additional
information and clarification of certain areas of the petition. Based
on the Department's requests, petitioner filed supplemental information
on the following topics: general issues (i.e., scope, injury, and
industry support) and scope on July 9, 2008. In addition, petitioner
provided an additional clarification of the scope of the Petition on
July 10, 2009. See Memorandum from Maisha Cryor, Senior International
Trade Compliance Analyst, to the File, ``Request to Agri-Fab, Inc. via
Telephone Conversation, July 10, 2008.'' Petitioner also provided
additional information on industry support on July 10, 2008. See
Memorandum from Meredith A.W. Rutherford to the File, Petitions for the
Imposition of Antidumping and Countervailing Duties - Certain Tow
Behind Lawn Groomers and Certain Parts Thereof from the People's
Republic of China: Phone Call with Petitioner Regarding Industry
Support, dated July 9, 2008. Lastly, petitioner provided an additional
clarification to the scope on July 11, 2008. See Memorandum from Maisha
Cryor, Senior International Trade Compliance Analyst, to the File,
``Scope Clarification,'' July 11, 2008.
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), petitioner alleges that manufacturers, producers, or
exporters of lawn groomers in the PRC received countervailable
subsidies within the meaning of section 701 of the Act, and that
imports are materially injuring, or threatening material injury to, an
industry in the United States.
The Department finds that petitioner filed this petition on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act, and petitioner has demonstrated
sufficient industry support with respect to the countervailing duty
investigation that it is requesting the Department to initiate (see
infra, ``Determination of Industry Support for the Petition'').
Period of Investigation
The anticipated period of investigation (POI) is calendar year
2007. See 19 CFR 351.204(b)(2).
Scope of the Investigation
The merchandise covered by this investigation is certain lawn
groomers and certain parts thereof. See Attachment I to this notice for
a complete description of the merchandise covered by this
investigation.
Comments on Scope of the Investigation
During our review of the petition, we discussed the scope with
petitioner to ensure that it is an accurate reflection of the
merchandise for which the domestic industry is seeking relief.
Moreover, as discussed in the preamble to the regulations (see
Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296,
27323 (May 19, 1997)), we are setting aside a period for interested
parties to raise issues regarding product coverage. The Department
encourages all interested parties to submit such comments by August 4,
2008, which is 21 calendar days from the date of signature of this
notice.\1\ Comments should be addressed to Import Administration's APO/
Dockets Unit, Room 1870, U.S. Department of Commerce, 14\th\ Street and
Constitution Avenue, N.W., Washington, DC 20230. The period of scope
consultations is intended to provide the Department with ample
opportunity to consider all comments and to consult with parties prior
to the issuance of the preliminary determination.
---------------------------------------------------------------------------
\1\ Twenty calendar days after the date of signature is Sunday,
August 3, 2008.
---------------------------------------------------------------------------
Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department
invited representatives of the Government of the People's Republic of
China (the GOC) for consultations with respect to the countervailing
duty petition. The Department held these consultations on July 9, 2008.
See Memorandum to the File, Petition on Certain Tow Behind Lawn
Grooming Products and Certain Parts Therof from the People's Republic
of China: Consultations with the Government of the People's Republic of
China, July 11, 2008 and on file in the Central Records Unit (CRU),
Room 1117 of the main Commerce Building.
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
[[Page 42325]]
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.
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 (section 771(10) of the Act), 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. 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), cert. denied 492 U.S. 919 (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, petitioner does not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we have determined that certain tow behind lawn groomers
and certain lawn groomer parts constitute a single domestic like
product and we have analyzed industry support in terms of that domestic
like product. For a discussion of the domestic like product analysis in
this case, see Countervailing Duty Investigation Initiation Checklist:
Certain Tow Behind Lawn Groomers and Certain Parts Thereof from the
People's Republic of China (Initiation Checklist), Industry Support at
Attachment II, on file in the CRU.
In determining whether petitioner has standing (i.e., those
domestic workers and producers supporting the petition account for (1)
at least 25 percent of the total production of the domestic like
product and (2) 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), we considered the
industry support data contained in the petition with reference to the
domestic like product as defined in the ``Scope of Investigation''
section above. To establish industry support, petitioner provided its
sales volume of the domestic like product for calendar year 2007, and
compared that to total sales volume of the domestic like product for
the industry. Petitioner stated that it ``used sales volumes . . . as a
surrogate for production, because it does not have access to the actual
production data of other domestic {lawn groomer{time} producers.'' See
Petition, Volume 1, at 2. We have relied upon data petitioner provided
for purposes of measuring industry support. For further discussion, see
Initiation Checklist at Attachment II (Analysis of Industry Support for
the Petition).
The Department's review of the data provided in the Petition,
supplemental submissions, and other information readily available to
the Department indicates that petitioner has established industry
support. First, the Petition establishes 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). See Section 702(c)(4)(D) of the Act. 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.
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. 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. See
Initiation Checklist at Attachment II (Analysis of Industry Support for
the Petition).
The Department finds that 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 has demonstrated sufficient
industry support with respect to the countervailing duty investigation
that it is requesting the Department initiate. See Initiation Checklist
at Attachment II (Analysis of Industry Support for the Petition).
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 these investigations. 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
Petitioner alleges that imports of lawn groomers from the PRC are
benefitting from countervailable subsidies and that such imports are
causing or threaten to cause, material injury to the domestic industry
producing lawn groomers. In addition, petitioner alleges that
subsidized imports exceed the negligibility threshold provided for
under section 771(24)(A) of the Act.
Petitioner contends that the industry's injured condition is
illustrated by reduced market share, underselling and price depressing
and suppressing effects, lost sales and revenue, reduced production and
capacity utilization, reduced shipments, reduced employment, and an
overall decline in financial performance. 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. See Initiation Checklist at
Attachment III (Analysis of Injury Allegations and Evidence of Material
Injury and Causation).
Subsidy Allegations
Section 702(b) of the Act requires the Department to initiate a
countervailing duty proceeding whenever an interested
[[Page 42326]]
party files a 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
petitioner supporting the allegations. The Department has examined the
countervailing duty petition on certain lawn groomers and parts thereof
from the PRC and found that it complies with the requirements of
section 702(b) of the Act. Therefore, in accordance with section 702(b)
of the Act, we are initiating a countervailing duty investigation to
determine whether manufacturers, producers, or exporters of certain
lawn groomers and parts thereof from the PRC receive countervailable
subsidies. For a discussion of evidence supporting our initiation
determination, see Initiation Checklist.
We are including in our investigation the following programs
alleged in the petition to have provided countervailable subsidies to
producers and exporters of the subject merchandise:
A. National Preferential Income Tax Programs
1. Preferential Tax Policies for Enterprises with Foreign
Investment (Two Free, Three Half Program)
2. Income Tax Reductions for Export-Oriented Enterprises
3. Refund of Enterprise Income Taxes on FIE Profits Reinvested in
an Export-Oriented Enterprise
B. Value Added Tax (VAT) and Indirect Tax Programs at the National
Level
1. Income Tax Credits for FIEs Purchasing Domestically Produced
Equipment
2. Income Tax Credits on Purchases of Domestically-Produced
Equipment by Domestically Owned Companies
3. VAT refunds for FIEs Purchasing Domestically Produced Equipment
4. Import Tariff and VAT Exemptions for Encouraged Industries
Importing Equipment for Domestic Operations
5. Export Incentive Payments Characterized as ``VAT Rebates''
C. Provision of Hot-Rolled Steel at Less Than Adequate Remuneration
D. Provincial and Local Income Tax Programs
1. Reduced Income Taxes Based on Geographic Location (Zhejiang and
Shandong Provinces)
2. Income Tax Preferential Programs for FIEs in Zhejiang Province
3. VAT Refunds for Encouraged FIEs Purchasing Domestic Equipment in
Zhejiang Province
4. VAT and Import Tariff Rebates for Encouraged FIEs Purchasing
Imported Equipment in Zhejiang Province
5. Export-Based ``Reward'' Subsidies for Enterprises in Zhejiang
Province
6. Refunds of Legal Fees Paid in Antidumping and Countervailing
Duty Investigations in Zhejiang Province and Jiashan County
7. Income Tax Programs in Huimin Industrial Park in Zhejiang
Province
8. Export-Based ``Reward'' Subsidies for Enterprises in Huimin
Industrial Park in Zhejiang Province
9. VAT and Import Tariff Rebates for Encouraged FIEs Purchasing
Imported Equipment in Huimin Industrial Park in Zhejiang Province
10. Income Tax Programs in the Hangzhou Export Processing Zone in
Zhejiang Province
11. Export Incentive Payments in the Form of VAT Rebates for
Companies Located in the Hangzhou Export Processing Zone in Zhejiang
Province
E. Preferential Policies and Benefits for Enterprises Located in
Shandong Province
1. Provision of Land for Less Than Adequate Remuneration for
Export-Oriented FIEs for Enterprises Located in Shandong Province
F. Preferential Policies and Benefits in Qingdao Municipality
1. Income Tax Programs for FIEs Located in Qingdao Municipality
2. Income Tax Offsets and/or Refunds for FIEs Purchasing Domestic
Equipment in Qingdao Municipality
3. VAT and Import Tariff Rebates for Encouraged FIEs Purchasing
Imported Equipment in Qingdao Municipality
4. Provision of Land for Less Than Adequate Remuneration for
Export-Oriented FIEs Located in Qingdao Municipality
G. Preferential Policies and Benefits for Enterprises Located in the
Lingang Processing Industrial Zone in Qingdao Municipality
1. Income Tax Programs in the Lingang Processing Industrial Zone
2. VAT and Import Tariff Rebates for Encouraged FIEs Purchasing
Imported Equipment in the Lingang Processing Industrial Zone
For further information explaining why the Department is
investigating these programs, see Initiation Checklist.
We are not including in our investigation the following programs
alleged to benefit producers and exporters of the subject merchandise
in the PRC.
1. Preferential Loans Pursuant to the Iron and Steel Policy
2. Preferential Lending Policies in Pursuant to Provincial Five-Year
Plans (Shandong and Zhejiang Provinces)
For further explanation of the Department's decision not to investigate
these programs, see Initiation Checklist.
Application of the Countervailing Duty Law to the PRC
The Department has treated the PRC as a non-market economy (NME)
country in all past antidumping duty investigations and administrative
reviews. In accordance with section 771(18)(C)(i) of the Act, any
determination that a country is an NME country shall remain in effect
until revoked by the administering authority. See, e.g., Tapered Roller
Bearings and Parts Thereof, Finished and Unfinished, (TRBs) From the
People's Republic of China: Preliminary Results of 2001-2002
Administrative Review and Partial Rescission of Review, 68 FR 7500
(February 14, 2003), unchanged in TRBs from the People's Republic of
China: Final Results of 2001-2002 Administrative Review, 68 FR 70488
(December 18, 2003). In the final affirmative countervailing duty
determination on coated free sheet paper from the PRC, the Department
determined that the current nature of the PRC economy does not create
obstacles to applying the necessary criteria in the CVD law. See Coated
Free Sheet Paper from the People's Republic of China: Final Affirmative
Countervailing Duty Determination, 72 FR 60645 (October 25, 2007), and
the accompanying Issues and Decision Memorandum at Comment 1; see also
Circular Welded Carbon Quality Steel Pipe from the People's Republic of
China: Final Affirmative Countervailing Duty Determination and Final
Affirmative Determination of Critical Circumstances, 73 FR 31966 (June
5, 2008) and accompanying Issues and Decision Memorandum at Comment 1.
Therefore, because petitioner has provided sufficient information to
support its allegations to meet the statutory criteria for initiating a
countervailing duty investigation of certain tow behind lawn groomers
and parts thereof from the PRC, initiation of a countervailing duty
investigation is warranted in this case.
[[Page 42327]]
Respondent Selection
To determine the total and relative volume and value of import data
for each potential respondent, the Department normally relies on
Customs and Border Protection import data for the POI. However, in the
instant proceeding, the Harmonized Tariff Schedule of the United States
(HTSUS) categories that include subject merchandise are very broad, and
include products other than products subject to this investigation.
Further, imports of subject merchandise, as estimated by petitioner,
account for only 3.8 percent by value of imports under the relevant
HTSUS categories. Therefore, because of the unique circumstances of
this case, the Department will issue ``Quantity and Value
Questionnaires'' to potential respondents for the purposes of
respondent selection.
The Department requires that the respondents submit a response to
the quantity and value questionnaire. See, e.g., Circular Welded
Austenitic Stainless Pressure Pipe from the People's Republic of China:
Initiation of Antidumping Duty Investigation, 73 FR 10221, 10225
(February 26, 2008). This response must be submitted by all exporters/
producers no later than July 28, 2008. The Department will post the
quantity and value questionnaire along with the filing instructions on
the Import Administration's website, at https://ia.ita.doc.gov/ia-
highlights-and-news.html. The Department will send the quantity and
value questionnaire to those PRC companies identified in the July 8,
2008, Supplement to the Petition, at Exhibit 2.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A)(i) of the Act, a copy of
the public version of the petition has been provided to the GOC. To the
extent practicable, we will attempt to provide a copy of the public
version of the petition to each exporter named in the petition, as
provided under 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, by no later than August 8,
2008, whether there is reasonable indication that imports of subsidized
certain tow behind lawn groomers and parts thereof from the PRC are
causing material injury, or threatening to cause material injury, to a
U.S. industry.
See Section 703(a)(2) of the Act. A negative ITC determination will
result in the investigation being terminated; otherwise, the
investigation will proceed according to statutory and regulatory time
limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: July 14, 2008.
David M. Spooner,
Assistant Secretaryfor Import Administration.
Appendix I
Scope of the Countervailing Duty Investigation Lawn Groomers from the
People's Republic of China
The scope of this investigation covers certain non-motorized tow
behind lawn groomers (``lawn groomers''), manufactured from any
material, and certain parts thereof. Lawn groomers are defined as lawn
sweepers, aerators, dethatchers, and spreaders. Unless specifically
excluded, lawn groomers that are designed to perform at least one of
the functions listed above are included in the scope of this
investigation, even if the lawn groomer is designed to perform
additional non-subject functions (e.g., mowing).
All lawn groomers are designed to incorporate a hitch, of any
configuration, which allows the product to be towed behind a vehicle.
Lawn groomers that are designed to incorporate both a hitch and a push
handle, of any type, are also covered by the scope of this
investigation. The hitch and handle may be permanently attached or
removable, and they may be attached on opposite sides or on the same
side of the lawn groomer. Lawn groomers designed to incorporate a
hitch, but where the hitch is not attached to the lawn groomer, are
also included in the scope of the investigation.
Lawn sweepers consist of a frame, as well as a series of brushes
attached to an axle or shaft which allows the brushing component to
rotate. Lawn sweepers also include a container (which is a receptacle
into which debris swept from the lawn or turf is deposited) supported
by the frame. Aerators consist of a frame, as well as an aerating
component that is attached to an axle or shaft which allows the
aerating component to rotate. The aerating component is made up of a
set of knives fixed to a plate (known as a ``plug aerator''), a series
of discs with protruding spikes (a ``spike aerator''), or any other
configuration, that are designed to create holes or cavities in a lawn
or turf surface. Dethatchers consist of a frame, as well as a series of
tines designed to remove material (e.g., dead grass or leaves) or other
debris from the lawn or turf. The dethatcher tines are attached to and
suspended from the frame. Lawn spreaders consist of a frame, as well as
a hopper (i.e., a container of any size, shape, or material) that holds
a media to be spread on the lawn or turf. The media can be distributed
by means of a rotating spreader plate that broadcasts the media
(``broadcast spreader''), a rotating agitator that allows the media to
be released at a consistent rate (``drop spreader''), or any other
configuration.
Lawn dethatchers with a net fully-assembled weight (i.e., without
packing, additional weights, or accessories) of 100 pounds or less are
covered by the scope of the investigation. Other lawn groomers-
sweepers, aerators, and spreaders-with a net fully-assembled weight
(i.e., without packing, additional weights, or accessories) of 200
pounds or less are covered by the scope of the investigation.
Also included in the scope of the investigation are modular units,
consisting of a chassis that is designed to incorporate a hitch, where
the hitch may or may not be included, which allows modules that perform
sweeping, aerating, dethatching, or spreading operations to be
interchanged. Modular units-when imported with one or more lawn
grooming modules-with a fully assembled net weight (i.e., without
packing, additional weights, or accessories) of 200 pounds or less when
including a single module, are included in the scope of the
investigation. Modular unit chasses, imported without a lawn grooming
module and with a fully assembled net weight (i.e., without packing,
additional weights, or accessories) of 125 pounds or less, are also
covered by the scope of the order. When imported separately, modules
that are designed to perform subject lawn grooming functions (i.e.,
sweeping, aerating, dethatching, or spreading), with a fully assembled
net weight (i.e., without packing, additional weights, or accessories)
of 75 pounds or less, and that are imported with or without a hitch,
are also covered by the scope.
Lawn groomers, assembled or unassembled, are covered by this
investigation. For purposes of this investigation, ``unassembled lawn
groomers'' consist of either 1) all parts necessary to make a fully
assembled lawn groomer, or 2) any combination of parts, constituting a
less than complete, unassembled lawn groomer, with a minimum of two of
the following ``major components-:
1) an assembled or unassembled brush housing designed to be used in
a lawn sweeper, where a brush
[[Page 42328]]
housing is defined as a component housing the brush assembly, and
consisting of a wrapper which covers the brush assembly and two end
plates attached to the wrapper;
2) a sweeper brush;
3) an aerator or dethatcher weight tray, or similar component
designed to allow weights of any sort to be added to the unit;
4) a spreader hopper;
5) a rotating spreader plate or agitator, or other component
designed for distributing media in a lawn spreader;
6) dethatcher tines;
7) aerator spikes, plugs, or other aerating component; or
8) a hitch.
The major components or parts of lawn groomers that are
individually covered by this investigation under the term ``certain
parts thereof'' are: (1) brush housings, where the wrapper and end
plates incorporating the brush assembly may be individual pieces or a
single piece; and (2) weight trays, or similar components designed to
allow weights of any sort to be added to a dethatcher or an aerator
unit.
The products for which relief is sought specifically exclude the
following: 1) agricultural implements designed to work (e.g., churn,
burrow, till, etc.) soil, such as cultivators, harrows, and plows; 2)
lawn or farm carts and wagons that do not groom lawns; 3) grooming
products incorporating a motor or an engine for the purpose of
operating and/or propelling the lawn groomer; 4) lawn groomers that are
designed to be hand held or are designed to be attached directly to the
frame of a vehicle, rather than towed; 5) ``push'' lawn grooming
products that incorporate a push handle rather than a hitch, and which
are designed solely to be manually operated; 6) dethatchers with a net
assembled weight (i.e., without packing, additional weights, or
accessories) of more than 100 pounds, or lawn groomers-sweepers,
aerators, and spreaders-with a net fully-assembled weight (i.e.,
without packing, additional weights, or accessories) of more than 200
pounds; and 7) lawn rollers designed to flatten grass and turf,
including lawn rollers which incorporate an aerator component (e.g.,
``drum-style'' spike aerators).
The lawn groomers that are the subject of this investigation are
currently classifiable in the Harmonized Tariff Schedule of the United
States (``HTSUS'') statistical reporting numbers 8432.40.0000,
8432.80.0000, 8432.90.0030, 8432.90.0080, 8479.89.9897, 8479.90.9496,
and 9603.50.0000. These HTSUS provisions are given for reference and
customs purposes only, and the description of merchandise is
dispositive for determining the scope of the product included in this
petition.
[FR Doc. E8-16627 Filed 7-18-08; 8:45 am]
BILLING CODE 3510-DS-S
