Certain Tow-Behind Lawn Groomers and Certain Parts Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 29180-29183 [E9-14471]

Download as PDF 29180 Federal Register / Vol. 74, No. 117 / Friday, June 19, 2009 / Notices comment the following document identifier: File No. 1032–1917–01. DEPARTMENT OF COMMERCE Kate Swails or Tammy Adams, (301) 713– 2289. [C–570–940] FOR FURTHER INFORMATION CONTACT: The subject amendment to Permit No. 1032– 1917 is requested under the authority of the Marine Mammal Protection Act of 1972, as amended (16 U.S.C. 1361 et seq.), and the regulations governing the taking and importing of marine mammals (50 CFR part 216). Permit No. 1032–1917, issued on September 4, 2007 (72 FR 51621), authorizes the permit holder to continue long-term studies of the Weddell seal (Leptonychotes weddellii) population in the Erebus Bay, McMurdo Sound, Ross Sea, and White Island areas of Antarctica. Up to 325 adults and 800 pups may be captured annually. Animals may be weighed, tissued sampled, flipper tagged, and released. Annually up to 2000 Weddell, 50 crabeater (Lobodon carcinophagus), and 50 leopard (Hydrurga leptonyx) seals may be incidentally disturbed as a result of the research activities. The permit authorizes up to 4 (2 adults and 2 pups) Weddell seal research-related mortalities annually. The permit holder is requesting the permit be amended to include authorization for use of a small temperature logging tag on pups. The additional tag would be used to measure the amount of time pups spend in the water. This information would be used as part of the mass dynamics studies. In compliance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.), an initial determination has been made that the activity proposed is categorically excluded from the requirement to prepare an environmental assessment or environmental impact statement. Concurrent with the publication of this notice in the Federal Register, NMFS is forwarding copies of this application to the Marine Mammal Commission and its Committee of Scientific Advisors. mstockstill on PROD1PC66 with NOTICES SUPPLEMENTARY INFORMATION: Dated: June 16, 2009. P. Michael Payne, Chief, Permits, Conservation and Education Division, Office of Protected Resources, National Marine Fisheries Service. [FR Doc. E9–14476 Filed 6–18–09; 8:45 am] BILLING CODE 3510–22–S VerDate Nov<24>2008 16:25 Jun 18, 2009 Jkt 217001 International Trade Administration Certain Tow-Behind Lawn Groomers and Certain Parts Thereof From the People’s Republic of China: Final Affirmative Countervailing Duty Determination AGENCY: Import Administration, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Department) has determined that countervailable subsidies are being provided to producers and exporters of certain tow-behind lawn groomers (lawn groomers) and certain parts thereof from the People’s Republic of China (PRC). For information on the estimated countervailing duty rates, please see the ‘‘Suspension of Liquidation’’ section, below. EFFECTIVE DATE: June 19, 2009. FOR FURTHER INFORMATION CONTACT: Gene Calvert or Jun Jack Zhao, AD/CVD Operations, Office 6, Import Administration, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482–3586 and (202) 482–1396, respectively. SUPPLEMENTARY INFORMATION: Period of Investigation The period for which we are measuring subsidies, i.e., the period of investigation (POI), is January 1, 2007 through December 31, 2007. Case History The following events have occurred since the announcement of the preliminary determination, which was published in the Federal Register on November 24, 2008. See Certain TowBehind Lawn Groomers and Certain Parts Thereof from the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Countervailing Duty Determination with Final Antidumping Duty Determination, 73 FR 70971 (November 24, 2008) (Preliminary Determination). The Department issued several supplemental questionnaires to the Government of the People’s Republic of China (GOC), Princeway Furniture (Dong Guan) Co., Ltd. and Princeway Limited (collectively, Princeway) and Jiashan Superpower Tools Co., Ltd. (Superpower). The Department received responses to these questionnaires in November and December 2008. Public PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 versions of the questionnaires and responses, as well as the various memoranda cited below, are available at the Department’s Central Records Unit (Room 1117 in the HCHB Building) (hereafter referred to as ‘‘CRU’’). From January 5 through January 21, 2009, we conducted verification of the questionnaire responses submitted by the GOC, Superpower and Princeway. We issued verification reports on February 27, 2009. See Verification of the Questionnaire Responses Submitted by the Government of the People’s Republic of China (GOC), Verification of the Questionnaire Responses Submitted by Princeway Furniture (Dong Guan) Co., Ltd. & Princeway Limited, and Verification of the Questionnaire Responses Submitted by Jiashan Superpower Tools Co., Ltd. On May 13, 2009, we issued our postpreliminary determination regarding the ‘‘Provision of Hot-Rolled Steel at Less Than Adequate Remuneration,’’ ‘‘Export Incentive Payments Characterized as VAT Rebates,’’ ‘‘Patent Subsidy Authorized by the Administration Rule for Patent Specific Fund of Jiashan County, SHAN KE [2006] No. 58,’’ ‘‘Foreign Trade Assistance Subsidy (Exhibition Attendance Incentive Policy of Jiashan County: Article II.24 of SZF 132),’’ and ‘‘Amortization of Startup Costs Under Article 49 of the FIE Tax Regulations.’’ See Memorandum to Ronald K. Lorentzen, Acting Assistant Secretary for Import Administration, ‘‘Countervailing Duty Investigation of Certain Tow-Behind Lawn Groomers and Certain Parts Thereof from the People’s Republic of China’’ (May 13, 2009). We received a case brief from the GOC on May 20, 2009. Agri-Fab, Inc. (Petitioner) and respondent companies did not submit case briefs or rebuttal briefs. On December 23, 2008, the GOC submitted a timely request for a hearing pursuant to 19 CFR 351.310(c). On May 27, 2009, the GOC withdrew its request for a hearing. Scope of the Investigation The scope of this investigation covers certain non-motorized tow behind 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 nonsubject functions (e.g., mowing). All lawn groomers are designed to incorporate a hitch, of any E:\FR\FM\19JNN1.SGM 19JNN1 mstockstill on PROD1PC66 with NOTICES Federal Register / Vol. 74, No. 117 / Friday, June 19, 2009 / Notices 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 VerDate Nov<24>2008 16:25 Jun 18, 2009 Jkt 217001 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 chassis, 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 investigation. 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 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, defined as a complete hitch assembly comprising of at least the following two major hitch components, tubing and a hitch plate regardless of the absence of minor components such as pin or fasteners. Individual hitch component parts, such as tubing, hitch plates, pins or fasteners are not covered by the scope. The major components or parts of lawn groomers that are individually covered by this investigation under the term ‘‘certain parts thereof’’ are: (1) PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 29181 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, 8432.80.0010, 8432.90.0030, 8432.90.0080, 8479.89.9896, 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 investigation. Scope Comments On December 30, 2008, and on January 7, 2009, Brinly–Hardy Company (Brinly–Hardy), a domestic producer of the merchandise under consideration, submitted comments on the scope of the investigation. Specifically, Brinly– Hardy requested that the scope be revised to define one of the eight listed ‘‘major components,’’ specifically a hitch, as a complete hitch assembly, with all necessary components. Brinly– Hardy requested that individual components such as tubing, hitch plates or pins, not be covered by the scope. E:\FR\FM\19JNN1.SGM 19JNN1 29182 Federal Register / Vol. 74, No. 117 / Friday, June 19, 2009 / Notices mstockstill on PROD1PC66 with NOTICES On January 12, 2009, Petitioner submitted comments in response to Brinly–Hardy’s request. Petitioner agreed that a hitch should be defined, but stated that a hitch should be defined as consisting of its own major components, i.e., tubing and a hitch plate, rather than all necessary components. Petitioner stated that the absence of minor components such as a hitch pin or fasteners is not intended to remove a hitch assembly from the definition of a hitch. We have received no further comments on the scope of the investigation. Thus, we are making a final determination that hitches are defined as a complete hitch assembly comprising of at least the following two major hitch components, tubing and a hitch plate regardless of the absence of minor components such as pin or fasteners. The revised scope language is included in the ‘‘Scope of the Investigation’’ section, above. See also Memorandum to Ronald K. Lorentzen, Acting Assistant Secretary for Import Administration, ‘‘Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Certain TowBehind Lawn Groomers and Certain Parts Thereof from the People’s Republic of China’’ (June 12, 2009) (hereafter referred to as the ‘‘Decision Memorandum’’), which is hereby adopted by this notice, at Comment 12. Injury Test Because the PRC is a ‘‘Subsidies Agreement Country’’ within the meaning of section 701(b) of the Tariff Act of 1930, as amended (the Act), the International Trade Commission (ITC) is required to determine pursuant to section 701(a)(2) of the Act whether imports of the subject merchandise from the PRC materially injure, or threaten material injury to, a United States industry. On August 21, 2008, the ITC published its preliminary determination that there is a reasonable indication that an industry in the United States is materially injured by reason of allegedly subsidized imports from the PRC of subject merchandise. See Certain TowBehind Lawn Groomers and Parts Thereof From China Determinations, 73 FR 49489 (August 21, 2008); and Certain Tow-Behind Lawn Groomers and Parts Thereof from China (Preliminary), USITC Pub. 4028, Inv. Nos. 701–TA– 457 and 731–TA–1153 (August 2008). Analysis of Comments Received All issues raised in the case brief submitted by the GOC are addressed in the Decision Memorandum. Attached to this notice as an Appendix is a list of VerDate Nov<24>2008 17:28 Jun 18, 2009 Jkt 217001 the issues that parties have raised and to which we have responded in the Decision Memorandum. Parties can find this public memorandum in the Department’s CRU. In addition, a complete version of the Decision Memorandum can be accessed directly on the internet at https://ia.ita.doc.gov/ frn/. The paper copy and electronic version of the Decision Memorandum are identical in content. Use of Adverse Facts Available For purposes of this final determination, we have continued to rely on facts available and have again used adverse inferences in accordance with sections 776(a) and (b) of the Act to determine the countervailable subsidy rates for the following five companies that provided no response to the Department’s ‘‘quantity and value’’ questionnaire issued during the respondent selection process: Qingdao Hundai Tools Co., Ltd., Qingdao Taifa Group Co., Ltd., Maxchief Investments Ltd., Qingdao EA Huabang Instrument Co., Ltd., and World Factory Inc. (collectively, non-h;cooperative companies). A full discussion of our decision to apply adverse facts available (AFA) is presented in the Decision Memorandum in the section ‘‘Use of Facts Otherwise Available and Adverse Facts Available.’’ On this basis, we determine that the AFA countervailable subsidy rate for the five non– cooperating companies is 264.98 percent ad valorem. Suspension of Liquidation In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have calculated an individual rate for the companies under investigation, Superpower and Princeway. Section 705(c)(5)(A)(i) of the Act states that for companies not investigated, we will determine an all others rate equal to the weighted average countervailable subsidy rates established for exporters and producers individually investigated, excluding any zero and de minimis countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. As Princeway’s rate was de minimis, it is not included in the all others rate. Exporter/Manufacturer Princeway Furniture (Dong Guan) Co., Ltd. and Princeway Limited ....................... Jiashan Superpower Tools Co., Ltd ........... Maxchief Investments Ltd ............................. PO 00000 Frm 00019 Fmt 4703 Exporter/Manufacturer Qingdao EA Huabang Instrument Co., Ltd ... Qingdao Hundai Tools Co., Ltd ..................... Qingdao Taifa Group Co., Ltd ..................... World Factory, Inc ........ All Others ...................... Net Subsidy Rate 264.98% 264.98% 264.98% 264.98% 13.30% In accordance with section 703(d) of the Act, we instructed U.S. Customs and Border Protection to discontinue the suspension of liquidation for countervailing duty purposes for subject merchandise entered on or after March 24, 2009, but to continue the suspension of liquidation of entries made from November 24, 2008 through March 23, 2009. We will issue a countervailing duty order and reinstate the suspension of liquidation under section 706(a) of the Act if the ITC issues a final affirmative injury determination, and will require a cash deposit of estimated countervailing duties for such entries of merchandise in the amounts indicated above, except for Princeway, which has a de minimis rate and will be excluded from an order. This exclusion will apply only to subject merchandise both produced and exported by Princeway. If the ITC determines that material injury, or threat of material injury, does not exist, this proceeding will be terminated and all estimated duties deposited or securities posted as a result of the suspension of liquidation will be refunded or canceled. ITC Notification In accordance with section 705(d) of the Act, we will notify the ITC of our determination. In addition, we are making available to the ITC all nonprivileged and non-proprietary information related to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an Administrative Protective Order (APO), without the written consent of the Assistant Secretary for Import Administration. Return or Destruction of Proprietary Information Net Subsidy Rate In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to an APO of their responsibility concerning the 0.56% (de minimis) destruction of proprietary information 13.30% disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 264.98% written notification of the return/ Sfmt 4703 E:\FR\FM\19JNN1.SGM 19JNN1 Federal Register / Vol. 74, No. 117 / Friday, June 19, 2009 / Notices Dated: June 12, 2009. Ronald K. Lorentzen, Acting Assistant Secretary for Import Administration. List of Comments and Issues in the Decision Memorandum Comment 1: Application of CVD Law to a Country that the Department Treats as an NME in a Parallel AD Investigation Comment 2: Double Counting/ Overlapping Remedies Comment 3: Cut–off Date for Countervailing Subsidies Comment 4: Discount Rate Used for Benefit Calculations Comment 5: Public Authority Status of Hot–Rolled Steel Producer Comment 6: Preferential Tax Policies for Enterprises with Foreign Investment (Two Free, Three Half Program) Comment 7: Refund of Enterprise Income Taxes on FIE Profits Reinvested in an Export Oriented Enterprise Comment 8: Import Tariff and VAT Exemptions for Encouraged Industries Importing Equipment for Domestic Operations Comment 9: Export Incentive Payments Characterized as ‘‘VAT Rebates’’ Comment 10: Amortization of Startup Costs in the PRC Tax Law Comment 11: Calculation of the All Others Rate Comment 12: Whether to Clarify the Scope Language for Hitches [FR Doc. E9–14471 Filed 6–18–09; 8:45 am] BILLING CODE 3510–DS–S DEPARTMENT OF COMMERCE International Trade Administration The Manufacturing Council: Meeting mstockstill on PROD1PC66 with NOTICES AGENCY: International Trade Administration, U.S. Department of Commerce. ACTION: Notice of an open meeting. SUMMARY: The Manufacturing Council will hold an introductory meeting with the Secretary of Commerce to discuss topics related to the U.S. manufacturing sector. DATES: June 23, 2009. Time: TBD. Location: TBD. FOR FURTHER INFORMATION CONTACT: J. Marc Chittum, The Manufacturing Jkt 217001 Gaithersburg, Maryland 20899. Please note registration and admittance instructions under the SUPPLEMENTARY INFORMATION section of this notice. Dated: June 15, 2009. J. Marc Chittum, Executive Secretary, The Manufacturing Council. [FR Doc. E9–14392 Filed 6–18–09; 8:45 am] FOR FURTHER INFORMATION CONTACT: Tanya Brewer, T: (301) 975–4534, E: tbrewer@nist.gov. The National Institute of Standards and Technology (NIST), in cooperation with the Australian Federal Government agency, Centrelink, will hold a public workshop on July 13–15, 2009, at the NIST Gaithersburg campus. The workshop is open to the public but requires registration. The goal of the 3day workshop is to explore potential commercial implementations of the Protocol for Lightweight Authentication of Identity (PLAID) and the potential usefulness of this protocol to U.S. Federal agencies. PLAID public resources are available from the following site: https:// www.govdex.gov.au. The principle of the workshop is that each attending vendor has two days, with the assistance of Centrelink, to ‘‘port’’ existing source code, or develop new code for their device or card. All the information vendors need will be available to them ahead of the workshop on the www.govdex.gov.au site. Vendors may obtain as much or as little assistance as they please from other vendors in the workshop. (Card vendors might, for instance, assist device vendors.) On the third day, end-users are invited to view the efforts of all of the vendors. Each vendor will use their space to demonstrate their PLAID implementation to attendees. Attendees are invited to interact with the vendors and discuss their PLAID implementation. This workshop is open to the public, but all attendees, vendors and others, must pre-register in advance. All visitors to the NIST campus are required to register in advance. No late or sameday registrations will be accepted for this reason. All attendees must present a government-issued ID when gaining access to the campus. There is no registration fee. Please submit your name, time of arrival, e-mail address and phone number to Tanya Brewer or Annie Sokol, and one of them will provide you with further logistics information. Non-U.S. citizens must also submit their country of citizenship, title, employer/sponsor, and address. The registration deadline is July 7, 2009. Tanya Brewer’s e-mail address is DEPARTMENT OF COMMERCE APPENDIX 17:28 Jun 18, 2009 Council, Room 4043, 1401 Constitution Avenue, NW., Washington, DC 20230; telephone: 202–482–4501; and e-mail: Marc.Chittum@mail.doc.gov. BILLING CODE 3510–DR–P destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction. This determination is published pursuant to sections 705(d) and 777(i) of the Act. VerDate Nov<24>2008 29183 National Institute of Standards and Technology Announcing a Workshop on the Protocol for Lightweight Authentication of Identity (PLAID) AGENCY: National Institute of Standards and Technology, Commerce. ACTION: Notice of public workshop. SUMMARY: The National Institute of Standards and Technology (NIST), in cooperation with the Australian Federal Government agency, Centrelink, will hold a public workshop on July 13–15, 2009, at the NIST Gaithersburg campus. The workshop is open to the public but requires registration. The goal of the 3day workshop is to explore potential commercial implementations of the Protocol for Lightweight Authentication of Identity (PLAID) and the potential usefulness of this protocol to U.S. Federal agencies. PLAID public resources are available from the following site: https:// www.govdex.gov.au. The principle of the workshop is that each attending vendor has two days, with the assistance of Centrelink, to ‘‘port’’ existing source code, or develop new code for their device or card. All the information vendors need will be available to them ahead of the workshop on the https://www.govdex.gov.au site. Vendors may obtain as much or as little assistance as they please from other vendors in the workshop. (Card vendors might, for instance, assist device vendors.) On the third day, end-users are invited to view the efforts of all of the vendors. Each vendor will use their space to demonstrate their PLAID implementation to attendees. Attendees are invited to interact with the vendors and discuss their PLAID implementation. DATES: The workshop will be held on July 13–15, 2009, 9 a.m. till 5 p.m. ADDRESSES: The workshop will be held in the Employees’ Lounge and the Poster Hallway in the Administration Building on the NIST Gaithersburg campus, 100 Bureau Drive, PO 00000 Frm 00020 Fmt 4703 Sfmt 4703 SUPPLEMENTARY INFORMATION: E:\FR\FM\19JNN1.SGM 19JNN1

Agencies

[Federal Register Volume 74, Number 117 (Friday, June 19, 2009)]
[Notices]
[Pages 29180-29183]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-14471]


-----------------------------------------------------------------------

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: Final Affirmative Countervailing Duty 
Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Department) has determined that 
countervailable subsidies are being provided to producers and exporters 
of certain tow-behind lawn groomers (lawn groomers) and certain parts 
thereof from the People's Republic of China (PRC). For information on 
the estimated countervailing duty rates, please see the ``Suspension of 
Liquidation'' section, below.

EFFECTIVE DATE: June 19, 2009.

FOR FURTHER INFORMATION CONTACT: Gene Calvert or Jun Jack Zhao, AD/CVD 
Operations, Office 6, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
3586 and (202) 482-1396, respectively.

SUPPLEMENTARY INFORMATION:

Period of Investigation

    The period for which we are measuring subsidies, i.e., the period 
of investigation (POI), is January 1, 2007 through December 31, 2007.

Case History

    The following events have occurred since the announcement of the 
preliminary determination, which was published in the Federal Register 
on November 24, 2008. See Certain Tow-Behind Lawn Groomers and Certain 
Parts Thereof from the People's Republic of China: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Countervailing Duty Determination with Final Antidumping Duty 
Determination, 73 FR 70971 (November 24, 2008) (Preliminary 
Determination).
    The Department issued several supplemental questionnaires to the 
Government of the People's Republic of China (GOC), Princeway Furniture 
(Dong Guan) Co., Ltd. and Princeway Limited (collectively, Princeway) 
and Jiashan Superpower Tools Co., Ltd. (Superpower). The Department 
received responses to these questionnaires in November and December 
2008. Public versions of the questionnaires and responses, as well as 
the various memoranda cited below, are available at the Department's 
Central Records Unit (Room 1117 in the HCHB Building) (hereafter 
referred to as ``CRU'').
    From January 5 through January 21, 2009, we conducted verification 
of the questionnaire responses submitted by the GOC, Superpower and 
Princeway. We issued verification reports on February 27, 2009. See 
Verification of the Questionnaire Responses Submitted by the Government 
of the People's Republic of China (GOC), Verification of the 
Questionnaire Responses Submitted by Princeway Furniture (Dong Guan) 
Co., Ltd. & Princeway Limited, and Verification of the Questionnaire 
Responses Submitted by Jiashan Superpower Tools Co., Ltd.
    On May 13, 2009, we issued our post-preliminary determination 
regarding the ``Provision of Hot-Rolled Steel at Less Than Adequate 
Remuneration,'' ``Export Incentive Payments Characterized as VAT 
Rebates,'' ``Patent Subsidy Authorized by the Administration Rule for 
Patent Specific Fund of Jiashan County, SHAN KE [2006] No. 58,'' 
``Foreign Trade Assistance Subsidy (Exhibition Attendance Incentive 
Policy of Jiashan County: Article II.24 of SZF 132),'' and 
``Amortization of Startup Costs Under Article 49 of the FIE Tax 
Regulations.'' See Memorandum to Ronald K. Lorentzen, Acting Assistant 
Secretary for Import Administration, ``Countervailing Duty 
Investigation of Certain Tow-Behind Lawn Groomers and Certain Parts 
Thereof from the People's Republic of China'' (May 13, 2009).
    We received a case brief from the GOC on May 20, 2009. Agri-Fab, 
Inc. (Petitioner) and respondent companies did not submit case briefs 
or rebuttal briefs. On December 23, 2008, the GOC submitted a timely 
request for a hearing pursuant to 19 CFR 351.310(c). On May 27, 2009, 
the GOC withdrew its request for a hearing.

Scope of the Investigation

    The scope of this investigation covers certain non-motorized tow 
behind 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

[[Page 29181]]

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 chassis, 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 investigation. 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 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, defined as a complete hitch assembly comprising of at 
least the following two major hitch components, tubing and a hitch 
plate regardless of the absence of minor components such as pin or 
fasteners. Individual hitch component parts, such as tubing, hitch 
plates, pins or fasteners are not covered by the scope.
    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, 8432.80.0010, 8432.90.0030, 8432.90.0080, 8479.89.9896, 
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 investigation.

Scope Comments

    On December 30, 2008, and on January 7, 2009, Brinly-Hardy Company 
(Brinly-Hardy), a domestic producer of the merchandise under 
consideration, submitted comments on the scope of the investigation. 
Specifically, Brinly-Hardy requested that the scope be revised to 
define one of the eight listed ``major components,'' specifically a 
hitch, as a complete hitch assembly, with all necessary components. 
Brinly-Hardy requested that individual components such as tubing, hitch 
plates or pins, not be covered by the scope.

[[Page 29182]]

    On January 12, 2009, Petitioner submitted comments in response to 
Brinly-Hardy's request. Petitioner agreed that a hitch should be 
defined, but stated that a hitch should be defined as consisting of its 
own major components, i.e., tubing and a hitch plate, rather than all 
necessary components. Petitioner stated that the absence of minor 
components such as a hitch pin or fasteners is not intended to remove a 
hitch assembly from the definition of a hitch.
    We have received no further comments on the scope of the 
investigation. Thus, we are making a final determination that hitches 
are defined as a complete hitch assembly comprising of at least the 
following two major hitch components, tubing and a hitch plate 
regardless of the absence of minor components such as pin or fasteners. 
The revised scope language is included in the ``Scope of the 
Investigation'' section, above. See also Memorandum to Ronald K. 
Lorentzen, Acting Assistant Secretary for Import Administration, 
``Issues and Decision Memorandum for the Final Determination in the 
Countervailing Duty Investigation of Certain Tow-Behind Lawn Groomers 
and Certain Parts Thereof from the People's Republic of China'' (June 
12, 2009) (hereafter referred to as the ``Decision Memorandum''), which 
is hereby adopted by this notice, at Comment 12.

Injury Test

    Because the PRC is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Tariff Act of 1930, as amended (the 
Act), the International Trade Commission (ITC) is required to determine 
pursuant to section 701(a)(2) of the Act whether imports of the subject 
merchandise from the PRC materially injure, or threaten material injury 
to, a United States industry. On August 21, 2008, the ITC published its 
preliminary determination that there is a reasonable indication that an 
industry in the United States is materially injured by reason of 
allegedly subsidized imports from the PRC of subject merchandise. See 
Certain Tow-Behind Lawn Groomers and Parts Thereof From China 
Determinations, 73 FR 49489 (August 21, 2008); and Certain Tow-Behind 
Lawn Groomers and Parts Thereof from China (Preliminary), USITC Pub. 
4028, Inv. Nos. 701-TA-457 and 731-TA-1153 (August 2008).

Analysis of Comments Received

    All issues raised in the case brief submitted by the GOC are 
addressed in the Decision Memorandum. Attached to this notice as an 
Appendix is a list of the issues that parties have raised and to which 
we have responded in the Decision Memorandum. Parties can find this 
public memorandum in the Department's CRU. In addition, a complete 
version of the Decision Memorandum can be accessed directly on the 
internet at https://ia.ita.doc.gov/frn/. The paper copy and electronic 
version of the Decision Memorandum are identical in content.

Use of Adverse Facts Available

    For purposes of this final determination, we have continued to rely 
on facts available and have again used adverse inferences in accordance 
with sections 776(a) and (b) of the Act to determine the 
countervailable subsidy rates for the following five companies that 
provided no response to the Department's ``quantity and value'' 
questionnaire issued during the respondent selection process: Qingdao 
Hundai Tools Co., Ltd., Qingdao Taifa Group Co., Ltd., Maxchief 
Investments Ltd., Qingdao EA Huabang Instrument Co., Ltd., and World 
Factory Inc. (collectively, non-h;cooperative companies). A full 
discussion of our decision to apply adverse facts available (AFA) is 
presented in the Decision Memorandum in the section ``Use of Facts 
Otherwise Available and Adverse Facts Available.'' On this basis, we 
determine that the AFA countervailable subsidy rate for the five non-
cooperating companies is 264.98 percent ad valorem.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have 
calculated an individual rate for the companies under investigation, 
Superpower and Princeway. Section 705(c)(5)(A)(i) of the Act states 
that for companies not investigated, we will determine an all others 
rate equal to the weighted average countervailable subsidy rates 
established for exporters and producers individually investigated, 
excluding any zero and de minimis countervailable subsidy rates, and 
any rates determined entirely under section 776 of the Act. As 
Princeway's rate was de minimis, it is not included in the all others 
rate.

------------------------------------------------------------------------
                Exporter/Manufacturer                  Net Subsidy Rate
------------------------------------------------------------------------
Princeway Furniture (Dong Guan) Co., Ltd. and         0.56% (de minimis)
 Princeway Limited..................................
Jiashan Superpower Tools Co., Ltd...................              13.30%
Maxchief Investments Ltd............................             264.98%
Qingdao EA Huabang Instrument Co., Ltd..............             264.98%
Qingdao Hundai Tools Co., Ltd.......................             264.98%
Qingdao Taifa Group Co., Ltd........................             264.98%
World Factory, Inc..................................             264.98%
All Others..........................................              13.30%
------------------------------------------------------------------------

    In accordance with section 703(d) of the Act, we instructed U.S. 
Customs and Border Protection to discontinue the suspension of 
liquidation for countervailing duty purposes for subject merchandise 
entered on or after March 24, 2009, but to continue the suspension of 
liquidation of entries made from November 24, 2008 through March 23, 
2009.
    We will issue a countervailing duty order and reinstate the 
suspension of liquidation under section 706(a) of the Act if the ITC 
issues a final affirmative injury determination, and will require a 
cash deposit of estimated countervailing duties for such entries of 
merchandise in the amounts indicated above, except for Princeway, which 
has a de minimis rate and will be excluded from an order. This 
exclusion will apply only to subject merchandise both produced and 
exported by Princeway. If the ITC determines that material injury, or 
threat of material injury, does not exist, this proceeding will be 
terminated and all estimated duties deposited or securities posted as a 
result of the suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an Administrative Protective Order (APO), without the written 
consent of the Assistant Secretary for Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/

[[Page 29183]]

destruction of APO materials or conversion to judicial protective order 
is hereby requested. Failure to comply with the regulations and terms 
of an APO is a violation which is subject to sanction.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: June 12, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

APPENDIX

List of Comments and Issues in the Decision Memorandum

Comment 1: Application of CVD Law to a Country that the Department 
Treats as an NME in a Parallel AD Investigation
Comment 2: Double Counting/Overlapping Remedies
Comment 3: Cut-off Date for Countervailing Subsidies
Comment 4: Discount Rate Used for Benefit Calculations
Comment 5: Public Authority Status of Hot-Rolled Steel Producer
Comment 6: Preferential Tax Policies for Enterprises with Foreign 
Investment (Two Free, Three Half Program)
Comment 7: Refund of Enterprise Income Taxes on FIE Profits Reinvested 
in an Export Oriented Enterprise
Comment 8: Import Tariff and VAT Exemptions for Encouraged Industries 
Importing Equipment for Domestic Operations
Comment 9: Export Incentive Payments Characterized as ``VAT Rebates''
Comment 10: Amortization of Startup Costs in the PRC Tax Law
Comment 11: Calculation of the All Others Rate
Comment 12: Whether to Clarify the Scope Language for Hitches
[FR Doc. E9-14471 Filed 6-18-09; 8:45 am]
BILLING CODE 3510-DS-S
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