Steel Wheels From the People's Republic of China: Notice of Preliminary Affirmative Determination of Critical Circumstances, 12812-12814 [2012-5186]
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Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Notices
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 notice is issued and published in
accordance with section 777(i)(1) of the
Tariff Act of 1930, as amended, and 19
CFR 351.213(d)(4).
Dated: February 17, 2012.
Christian Marsh,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations.
[FR Doc. 2012–4872 Filed 3–1–12; 8:45 am]
BILLING CODE 3510–DS–M
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–974]
Steel Wheels From the People’s
Republic of China: Notice of
Preliminary Affirmative Determination
of Critical Circumstances
Import Administration,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(the Department) has preliminarily
determined that critical circumstances
exist with respect to imports of steel
wheels from the People’s Republic of
China (PRC).
DATES: Effective Date: March 2, 2012.
FOR FURTHER INFORMATION CONTACT:
Robert Copyak or Eric Greynolds, AD/
CVD Operations, Office 3, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, Room 4014, 14th Street and
Constitution Avenue NW., Washington,
DC 20230; telephone: 202–482–2209
and 202–482–6071, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
tkelley on DSK3SPTVN1PROD with NOTICES
Case History
On March 30, 2011, the Department
received a countervailing duty (CVD)
petition concerning imports of steel
wheels from the PRC filed in proper
form by Accuride Corporation
(Accuride) and Hayes Lemmerz
International, Inc. (collectively,
petitioners).1 This investigation was
initiated on April 19, 2011.2 The
1 See Petition for the Imposition of Countervailing
Duties (Petition). A public version of the Petition
and all other public documents and public versions
of business proprietary documents for this
investigation are available on the public file in the
Central Records Unit (CRU), Room 7046 of the main
Department of Commerce building.
2 See Certain Steel Wheels From the People’s
Republic of China: Initiation of Countervailing Duty
Investigation, 76 FR 23302 (April 26, 2011)
(Initiation Notice), and accompanying Initiation
Checklist.
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17:01 Mar 01, 2012
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affirmative preliminary determination
was published on September 6, 2011.3
On September 1, 2011, petitioners
alleged that critical circumstances exist
with respect to imports of steel wheels
from the PRC and submitted U.S.
Census Data in support of their
allegation at Exhibit I.4 On September 9,
2011, the Department requested from
the three mandatory respondents—the
Jingu Companies,5 the Xingmin
Companies,6 and the Centurion
Xingmin Companies 7—monthly
shipment data of subject merchandise to
the United States for the period October
2010 through June 2011.
On September 21, 2011, the Xingmin
Companies submitted to the Department
their monthly shipment data of subject
merchandise to the United States for the
period October 2010 through June
2011.8 At verification, the Xingmin
Companies provided some minor
corrections to these data.9 On
September 25, 2011, the Jingu
Companies submitted to the Department
their monthly shipment data of subject
merchandise to the United States for the
period October 2010 through June
2011.10 At verification, the Jingu
Companies provided some minor
corrections to these data.11 On
September 26, 2011, the Centurion
Companies submitted to the Department
their monthly shipment data of subject
merchandise to the United States for the
3 See Certain Steel Wheels From the People’s
Republic of China: Preliminary Affirmative
Countervailing Duty Determination and Alignment
With Final Antidumping Duty Determination, 76 FR
55012 (September 6, 2011) (Preliminary
Determination).
4 See Petitioners’ Critical Circumstances
Allegation (September 1, 2011).
5 The Jingu Companies are Zhejiang Jingu
Company Limited (Zhejiang Jingu), Chengdu Jingu
Wheel Co., Ltd. (Chengdu Jingu), Shanghai Yata
Industrial Co. Ltd. (Shanghai Yata), and Zhejiang
Wheel World Industrial Co., Ltd. (Wheel World).
6 The Xingmin Companies are Shandong Xingmin
Wheel Co. Ltd. (Xingmin) and Sino-tex (Longkou)
Wheel Manufacturers, Inc. (Sino-tex).
7 The Centurion Companies are Jining Centurion
Wheels Manufacturing Co. Ltd. (Jining Centurion)
and Jining CII Wheel Manufacture Co., Ltd. (Jining
CII).
8 See the Xingmin Companies’ third supplemental
questionnaire response titled ‘‘Steel Wheels from
China: Third Supplemental Questionnaire
Response’’ (September 21, 2010) at Exhibit I.
9 See the Department’s January 6, 2012,
verification report titled ‘‘Verification Report of
Xingmin Wheel Co. Ltd’’ at 2 (filed on IA ACCESS
on January 10, 2012).
10 See the Jingu Companies’ third supplemental
questionnaire response titled ‘‘CVD Investigation of
Steel Wheels from China: Critical Circumstances
Shipment Data’’ (filed on IA ACCESS on September
25, 2011, and dated September 26, 2011) at Exhibit
I.
11 See the Department’s January 31, 2012,
verification report titled ‘‘Verification Report
Regarding Information Submitted by Zhejiang Jingu
Company Limited’’ at 2 and 5–6.
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period October 2010 through June
2011.12
Period of Investigation
The period for which we are
measuring subsidies, or the period of
investigation (POI), is calendar year
2010.
Scope of Investigation
The products covered by this
investigation are steel wheels with a
wheel diameter of 18 to 24.5 inches.
Rims and discs for such wheels are
included, whether imported as an
assembly or separately. These products
are used with both tubed and tubeless
tires. Steel wheels, whether or not
attached to tires or axles, are included.
However, if the steel wheels are
imported as an assembly attached to
tires or axles, the tire or axle is not
covered by the scope. The scope
includes steel wheels, discs, and rims of
carbon and/or alloy composition and
clad wheels, discs, and rims when
carbon or alloy steel represents more
than fifty percent of the product by
weight. The scope includes wheels,
rims, and discs, whether coated or
uncoated, regardless of the type of
coating.
Imports of the subject merchandise
are provided for under the following
categories of the Harmonized Tariff
Schedule of the United States (HTSUS):
8708.70.05.00, 8708.70.25.00,
8708.70.45.30, and 8708.70.60.30.
Imports of the subject merchandise may
also enter under the following categories
of the HTSUS: 8406.90.4580,
8406.90.7500, 8420.99.9000,
8422.90.1100, 8422.90.2100,
8422.90.9120, 8422.90.9130,
8422.90.9160, 8422.90.9195,
8431.10.0010, 8431.10.0090,
8431.20.0000, 8431.31.0020,
8431.31.0040, 8431.31.0060,
8431.39.0010, 8431.39.0050,
8431.39.0070, 8431.39.0080,
8431.43.8060, 8431.49.1010,
8431.49.1060, 8431.49.1090,
8431.49.9030, 8431.49.9040,
8431.49.9085, 8432.90.0005,
8432.90.0015, 8432.90.0030,
8432.90.0080, 8433.90.1000,
8433.90.5020, 8433.90.5040,
8436.99.0020, 8436.99.0090,
8479.90.9440, 8479.90.9450,
8479.90.9496, 8487.90.0080,
8607.19.1200, 8607.19.1500,
8708.70.1500, 8708.70.3500,
8708.70.4560, 8708.70.6060,
8709.90.0000, 8710.00.0090,
12 See the Centurion Companies’ third
supplemental questionnaire response titled ‘‘CVD
Investigation of Steel Wheels from China: Critical
Circumstances Shipment Data’’ (dated September
26, 2010) at Exhibit I.
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8714.19.0030, 8714.19.0060,
8716.90.1000, 8716.90.5030,
8716.90.5060, 8803.20.0015,
8803.20.0030, and 8803.20.0060.
These HTSUS numbers are provided
for convenience and customs purposes
only; the written description of the
scope is dispositive.
tkelley on DSK3SPTVN1PROD with NOTICES
Comments of the Parties
In their critical circumstances
allegation, Petitioners also allege that
there is a reasonable basis to believe that
there are subsidies in this investigation
which are inconsistent with the World
Trade Organization (WTO) Agreement
on Subsidies and Countervailing
Measures (Subsidies Agreement).
Petitioners cite to the Preliminary
Determination, in which the Department
preliminarily determined that the Jingu
Companies have received several
subsidies which are contingent on
export performance. See Petitioners’
Critical Circumstances Allegation
(September 1, 2011) at 2.
Petitioners also claim in their critical
circumstances allegation that there have
been massive imports of steel wheels in
the three months following the filing of
the petition on March 30, 2011.
Petitioners provided Census Bureau
Data, which they contend demonstrate
that imports of subject merchandise
increased by more than 15 percent,
which is required to be considered
‘‘massive’’ under section 351.206(h)(2)
of the Department’s regulations.
Petitioners submit that, by volume,
imports increased approximately 48
percent from 510,174 wheels in the first
quarter of 2011, to 753,604 wheels in
the second quarter of 2010. Id. at 3 and
Exhibit 1. Petitioners also contend that,
by value, imports increased
approximately 40 percent, from
$17,787,704 in the first quarter of 2011,
to $24,893,481 in the second quarter of
2010. Id.
Analysis
Section 703(e)(1) of the Tariff Act of
1930, as amended (the Act), provides
that the Department will preliminarily
determine that critical circumstances
exist if there is a reasonable basis to
believe or suspect that: (A) The alleged
countervailable subsidy is inconsistent
with the Subsidies Agreement, and (B)
there have been massive imports of the
subject merchandise over a relatively
short period.
When determining whether an alleged
countervailable subsidy is inconsistent
with the Subsidies Agreement, the
Department limits its findings to those
subsidies contingent on export
performance or use of domestic over
imported goods (i.e., those prohibited
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17:01 Mar 01, 2012
Jkt 226001
under Article 3 of the Subsidies
Agreement).13 In the Preliminary
Determination, the Department found
that, during the POI, the Jingu
Companies received countervailable
benefits under five programs that are
contingent upon export performance.
Therefore, we preliminarily determine
that there is a reasonable basis to believe
or suspect that these five programs are
inconsistent with the Subsidies
Agreement.
In the Preliminary Determination, the
Department found that, during the POI,
the Centurion Companies and Xingmin
Companies did not receive
countervailable benefits under any
programs that are contingent upon
export performance. Therefore, we
preliminarily determine that there is not
a reasonable basis to believe or suspect
that the Centurion Companies and the
Xingmin Companies received benefits
inconsistent with the Subsidies
Agreement.
In determining whether imports of the
subject merchandise have been
‘‘massive,’’ section 351.206(h)(1) of the
Department’s regulations provides that
the Department normally will examine:
(i) The volume and value of the imports;
(ii) seasonal trends; and (iii) the share of
domestic consumption accounted for by
the imports. In addition, the Department
will not consider imports to be massive
unless imports during the ‘‘relatively
short period’’ (comparison period) have
increased by at least 15 percent
compared to imports during an
‘‘immediately preceding period of
comparable duration’’ (base period). See
19 CFR 351.206(h)(2).
Section 351.206(i) of the Department’s
regulations defines ‘‘relatively short
period’’ as normally being the period
beginning on the date the proceeding
commences (i.e., the date the petition is
filed) and ending at least three months
later. For consideration of this
allegation, we have used a three-month
base period (i.e., January 2011 through
March 2011) and a three-month
comparison period (i.e., April 2011
through June 2011).
In determining whether there were
massive imports from the Jingu
Companies, we analyzed the Jingu
Companies’ monthly shipment data for
the period January 2011 through June
2011. These data indicate that there was
13 See,
e.g., Notice of Preliminary Negative
Determination of Critical Circumstances: Certain
New Pneumatic Off-the-Road Tires From the
People’s Republic of China, 73 FR 21588, 21589–
90 (April 22, 2008), unchanged in Final Affirmative
Countervailing Duty Determination and Final
Negative Critical Circumstances Determination:
Carbon and Certain Alloy Steel Wire Rod From
Germany, 67 FR 55808, 55809 (August 30, 2002).
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12813
not a massive increase in shipments of
subject merchandise to the United
States by the Jingu Companies during
the three-month period immediately
following the filing of the petition on
March 30, 2011. Specifically, shipments
of subject merchandise to the United
States from the Jingu Companies
decreased, both in terms of volume and
value. See the Memorandum to the File
from Robert Copyak, Senior Financial
Analyst, AD/CVD Operations Office 3,
titled ‘‘Critical Circumstances Shipment
Data Analysis,’’ (Critical Circumstances
Memorandum) (February, 2011) at
Attachment I.
With regard to whether imports of
subject merchandise by the ‘‘all other’’
exporters of steel wheels in the PRC
were massive, we preliminarily
determine that because there is evidence
of the existence of countervailable
subsidies that are inconsistent with the
Subsidies Agreement, an analysis is
warranted as to whether there was a
massive increase in shipment by the ‘‘all
other’’ companies, in accordance with
section 351.206(h)(1) of the
Department’s regulations. Therefore, we
analyzed, in accordance with 19 CFR
351.206(i), monthly shipment data for
the period January 2011 through June
2011, using shipment data from the
International Trade Commission’s
(ITC’s) Dataweb and adjusting it to
remove the shipments by the
respondents participating in the
investigation.14 For this analysis, we
used only the data pertaining to the
HTSUS numbers 8708.70.05.00,
8708.70.25.00, 8708.70.45.30, and
8708.70.60.30, which are the HTSUS
categories under which a majority of the
subject merchandise entered the United
States. We did not use the HTSUS
numbers described in the scope as
categories that imports of subject
merchandise ‘‘may also enter under’’
because they are basket categories. The
data provided by the respondents and
the data for shipments by other
exporters from the ITC’s Dataweb
indicate there was a massive increase in
shipments, as defined by 19 CFR
351.206(h). See Critical Circumstances
Memorandum at Attachment II.
Conclusion
We preliminarily determine that
critical circumstances do not exist for
14 See, e.g., Certain Oil Country Tubular Goods
From the People’s Republic of China: Preliminary
Affirmative Countervailing Duty Determination,
Preliminary Negative Critical Circumstances
Determination, 74 FR 47210, 47212 (September 15,
2009), unchanged in Certain Oil Country Tubular
Goods From the People’s Republic of China: Final
Affirmative Countervailing Duty Determination:
Final Negative Critical Circumstances
Determination, 74 FR 64045 (December 7, 2009).
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Federal Register / Vol. 77, No. 42 / Friday, March 2, 2012 / Notices
imports of steel wheels from the three
mandatory respondents the Jingu
Companies, Centurion Companies, and
Xingmin Companies. Although the
Preliminary Determination indicates
that the Jingu Companies benefited from
programs that are inconsistent with the
Subsidies Agreement, the Jingu
Companies’ shipment data does not
indicate a massive increase in
shipments of subject merchandise to the
United States. With regard to Centurion
and Xingmin, there is no evidence on
the record indicating that either
company benefited from programs that
are inconsistent with the Subsidies
Agreement and therefore we
preliminarily determine that critical
circumstances do not exist with regard
to shipments from these two mandatory
respondents.
We also preliminary determine, based
on our analysis of the shipment data
provided by the three mandatory
respondents and ITC Dataweb data, that
critical circumstances exist for imports
from ‘‘all other’’ exporters of steel from
the PRC. We will make a final
determination concerning critical
circumstances for steel wheels from the
PRC when we make our final
countervailable subsidy determination
in this investigation.
DEPARTMENT OF COMMERCE
Suspension of Liquidation
SUPPLEMENTARY INFORMATION:
In accordance with section
703(e)(2)(A) of the Act, we are directing
U.S. Customs and Border Protection to
suspend, with regard to the ‘‘all other’’
companies only, liquidation of any
unliquidated entries of subject
merchandise from the PRC entered, or
withdrawn from warehouse for
consumption, on or after June 8, 2011,
which is 90 days prior to the date of
publication of the Preliminary
Determination in the Federal Register.
ITC Notification
tkelley on DSK3SPTVN1PROD with NOTICES
In accordance with section 703(f) of
the Act, we will notify the ITC of our
determination.
This determination is issued and
published pursuant to sections 703(f)
and 777(i)(1) of the Act.
Dated: February 27, 2012.
Ronald K. Lorentzen
Acting Assistant Secretary for Import
Administration.
[FR Doc. 2012–5186 Filed 3–1–12; 8:45 am]
BILLING CODE 3510–DS–P
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17:01 Mar 01, 2012
Jkt 226001
National Oceanic and Atmospheric
Administration
RIN 0648–XB055
North Pacific Fishery Management
Council; Public Meeting
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of a meeting of the North
Pacific Fishery Management Council
(Council) and Alaska Board of Fisheries
(AK BOF) Joint Protocol Committee.
AGENCY:
The North Pacific Fishery
Management Council Joint Protocol
Committee of the AK BOF and Council
will meet in March in Anchorage, AK.
DATES: The meeting will be held on
March 19, 2012, from 10 a.m. to 4 p.m.
ADDRESSES: The meeting will be held at
the Hilton Hotel, Aleutian Room, 500
W. Third Avenue, Anchorage, AK.
Council address: North Pacific
Fishery Management Council, 605 W.
4th Ave., Suite 306, Anchorage, AK
99501–2252.
FOR FURTHER INFORMATION CONTACT: AK
BOF Staff; telephone: (907) 465–4110 or
Council staff; telephone: (907) 271–
2809.
SUMMARY:
The
Committee will review the following:
Status of Tanner Rebuilding, review
pending actions; Status of Gulf of
Alaska (GOA) Halibut Bycatch, review
pending actions; Status of Salmon
Chum Bycatch, review of actions on
Bering Sea (BS) Chinook, review of
actions on GOA Chinook, review of
pending actions on BS chum salmon
bycatch; Status of GOA Pacific cod
(discussion papers): reverse parallel jig
fishery, revise ‘‘A’’ season opening date
in GOA, limiting other gear on board
while jig fishing; Close waters to bottom
gear in Prince William Sound; Aleutian
Islands golden king crab total allowable
catch (TAC); remove minimum TAC in
Bristol Bay red king crab fishery;
statewide scallops. Determination of
next committee meeting and/or full
Joint Board meeting; miscellaneous
business.
The Agenda is subject to change, and
the latest version will be posted at
https://www.alaskafisheries.noaa.gov/
npfmc/.
Although non-emergency issues not
contained in this agenda may come
before this group for discussion, those
issues may not be the subject of formal
action during this meeting. Action will
be restricted to those issues specifically
PO 00000
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listed in this notice and any issues
arising after publication of this notice
that require emergency action under
section 305(c) of the Magnuson-Stevens
Fishery Conservation and Management
Act, provided the public has been
notified of the Council’s intent to take
final action to address the emergency.
Special Accommodations
This meeting is physically accessible
to people with disabilities. Requests for
sign language interpretation or other
auxiliary aids should be directed to Gail
Bendixen at (907) 271–2809 at least 7
working days prior to the meeting date.
Dated: February 28, 2012.
Tracey L. Thompson,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 2012–5118 Filed 3–1–12; 8:45 am]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN0648–XB056
Mid-Atlantic Fishery Management
Council (MAFMC); Public Meetings
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of public meetings.
AGENCY:
The Scientific and Statistical
Committee (SSC) and the Tilefish
Monitoring Committee of the MidAtlantic Fishery Management Council
(Council) will hold meetings.
DATES: The SSC will meet Wednesday,
March 21, 2012 from 10 a.m. until 5
p.m. and Thursday, March 22, 2012
from 8 a.m. until 4 p.m. The Tilefish
Monitoring Committee will meet
Wednesday, March 21, 2012 from 3 p.m.
until 5 p.m.
ADDRESSES: The meetings will be held at
the Pier V Hotel, 711 Eastern Avenue,
Baltimore, MD 21202; telephone: (410)
539–2000.
Council address: Mid-Atlantic Fishery
Management Council, 800 N. State
Street, Suite 201, Dover, DE 19901;
telephone: (302) 674–2331.
FOR FURTHER INFORMATION CONTACT:
Christopher M. Moore, Ph.D., Executive
Director, Mid-Atlantic Fishery
Management Council, 800 N. State
Street, Suite 201, Dover, DE 19901;
telephone: (302) 526–5255.
SUPPLEMENTARY INFORMATION: The
primary purpose of the SSC meeting
includes: 2012–14 ABC
SUMMARY:
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]]>Agencies
[Federal Register Volume 77, Number 42 (Friday, March 2, 2012)]
[Notices]
[Pages 12812-12814]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-5186]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-974]
Steel Wheels From the People's Republic of China: Notice of
Preliminary Affirmative Determination of Critical Circumstances
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has preliminarily
determined that critical circumstances exist with respect to imports of
steel wheels from the People's Republic of China (PRC).
DATES: Effective Date: March 2, 2012.
FOR FURTHER INFORMATION CONTACT: Robert Copyak or Eric Greynolds, AD/
CVD Operations, Office 3, Import Administration, International Trade
Administration, U.S. Department of Commerce, Room 4014, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: 202-482-2209
and 202-482-6071, respectively.
SUPPLEMENTARY INFORMATION:
Case History
On March 30, 2011, the Department received a countervailing duty
(CVD) petition concerning imports of steel wheels from the PRC filed in
proper form by Accuride Corporation (Accuride) and Hayes Lemmerz
International, Inc. (collectively, petitioners).\1\ This investigation
was initiated on April 19, 2011.\2\ The affirmative preliminary
determination was published on September 6, 2011.\3\
---------------------------------------------------------------------------
\1\ See Petition for the Imposition of Countervailing Duties
(Petition). A public version of the Petition and all other public
documents and public versions of business proprietary documents for
this investigation are available on the public file in the Central
Records Unit (CRU), Room 7046 of the main Department of Commerce
building.
\2\ See Certain Steel Wheels From the People's Republic of
China: Initiation of Countervailing Duty Investigation, 76 FR 23302
(April 26, 2011) (Initiation Notice), and accompanying Initiation
Checklist.
\3\ See Certain Steel Wheels From the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination and
Alignment With Final Antidumping Duty Determination, 76 FR 55012
(September 6, 2011) (Preliminary Determination).
---------------------------------------------------------------------------
On September 1, 2011, petitioners alleged that critical
circumstances exist with respect to imports of steel wheels from the
PRC and submitted U.S. Census Data in support of their allegation at
Exhibit I.\4\ On September 9, 2011, the Department requested from the
three mandatory respondents--the Jingu Companies,\5\ the Xingmin
Companies,\6\ and the Centurion Xingmin Companies \7\--monthly shipment
data of subject merchandise to the United States for the period October
2010 through June 2011.
---------------------------------------------------------------------------
\4\ See Petitioners' Critical Circumstances Allegation
(September 1, 2011).
\5\ The Jingu Companies are Zhejiang Jingu Company Limited
(Zhejiang Jingu), Chengdu Jingu Wheel Co., Ltd. (Chengdu Jingu),
Shanghai Yata Industrial Co. Ltd. (Shanghai Yata), and Zhejiang
Wheel World Industrial Co., Ltd. (Wheel World).
\6\ The Xingmin Companies are Shandong Xingmin Wheel Co. Ltd.
(Xingmin) and Sino-tex (Longkou) Wheel Manufacturers, Inc. (Sino-
tex).
\7\ The Centurion Companies are Jining Centurion Wheels
Manufacturing Co. Ltd. (Jining Centurion) and Jining CII Wheel
Manufacture Co., Ltd. (Jining CII).
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On September 21, 2011, the Xingmin Companies submitted to the
Department their monthly shipment data of subject merchandise to the
United States for the period October 2010 through June 2011.\8\ At
verification, the Xingmin Companies provided some minor corrections to
these data.\9\ On September 25, 2011, the Jingu Companies submitted to
the Department their monthly shipment data of subject merchandise to
the United States for the period October 2010 through June 2011.\10\ At
verification, the Jingu Companies provided some minor corrections to
these data.\11\ On September 26, 2011, the Centurion Companies
submitted to the Department their monthly shipment data of subject
merchandise to the United States for the period October 2010 through
June 2011.\12\
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\8\ See the Xingmin Companies' third supplemental questionnaire
response titled ``Steel Wheels from China: Third Supplemental
Questionnaire Response'' (September 21, 2010) at Exhibit I.
\9\ See the Department's January 6, 2012, verification report
titled ``Verification Report of Xingmin Wheel Co. Ltd'' at 2 (filed
on IA ACCESS on January 10, 2012).
\10\ See the Jingu Companies' third supplemental questionnaire
response titled ``CVD Investigation of Steel Wheels from China:
Critical Circumstances Shipment Data'' (filed on IA ACCESS on
September 25, 2011, and dated September 26, 2011) at Exhibit I.
\11\ See the Department's January 31, 2012, verification report
titled ``Verification Report Regarding Information Submitted by
Zhejiang Jingu Company Limited'' at 2 and 5-6.
\12\ See the Centurion Companies' third supplemental
questionnaire response titled ``CVD Investigation of Steel Wheels
from China: Critical Circumstances Shipment Data'' (dated September
26, 2010) at Exhibit I.
---------------------------------------------------------------------------
Period of Investigation
The period for which we are measuring subsidies, or the period of
investigation (POI), is calendar year 2010.
Scope of Investigation
The products covered by this investigation are steel wheels with a
wheel diameter of 18 to 24.5 inches. Rims and discs for such wheels are
included, whether imported as an assembly or separately. These products
are used with both tubed and tubeless tires. Steel wheels, whether or
not attached to tires or axles, are included. However, if the steel
wheels are imported as an assembly attached to tires or axles, the tire
or axle is not covered by the scope. The scope includes steel wheels,
discs, and rims of carbon and/or alloy composition and clad wheels,
discs, and rims when carbon or alloy steel represents more than fifty
percent of the product by weight. The scope includes wheels, rims, and
discs, whether coated or uncoated, regardless of the type of coating.
Imports of the subject merchandise are provided for under the
following categories of the Harmonized Tariff Schedule of the United
States (HTSUS): 8708.70.05.00, 8708.70.25.00, 8708.70.45.30, and
8708.70.60.30. Imports of the subject merchandise may also enter under
the following categories of the HTSUS: 8406.90.4580, 8406.90.7500,
8420.99.9000, 8422.90.1100, 8422.90.2100, 8422.90.9120, 8422.90.9130,
8422.90.9160, 8422.90.9195, 8431.10.0010, 8431.10.0090, 8431.20.0000,
8431.31.0020, 8431.31.0040, 8431.31.0060, 8431.39.0010, 8431.39.0050,
8431.39.0070, 8431.39.0080, 8431.43.8060, 8431.49.1010, 8431.49.1060,
8431.49.1090, 8431.49.9030, 8431.49.9040, 8431.49.9085, 8432.90.0005,
8432.90.0015, 8432.90.0030, 8432.90.0080, 8433.90.1000, 8433.90.5020,
8433.90.5040, 8436.99.0020, 8436.99.0090, 8479.90.9440, 8479.90.9450,
8479.90.9496, 8487.90.0080, 8607.19.1200, 8607.19.1500, 8708.70.1500,
8708.70.3500, 8708.70.4560, 8708.70.6060, 8709.90.0000, 8710.00.0090,
[[Page 12813]]
8714.19.0030, 8714.19.0060, 8716.90.1000, 8716.90.5030, 8716.90.5060,
8803.20.0015, 8803.20.0030, and 8803.20.0060.
These HTSUS numbers are provided for convenience and customs
purposes only; the written description of the scope is dispositive.
Comments of the Parties
In their critical circumstances allegation, Petitioners also allege
that there is a reasonable basis to believe that there are subsidies in
this investigation which are inconsistent with the World Trade
Organization (WTO) Agreement on Subsidies and Countervailing Measures
(Subsidies Agreement). Petitioners cite to the Preliminary
Determination, in which the Department preliminarily determined that
the Jingu Companies have received several subsidies which are
contingent on export performance. See Petitioners' Critical
Circumstances Allegation (September 1, 2011) at 2.
Petitioners also claim in their critical circumstances allegation
that there have been massive imports of steel wheels in the three
months following the filing of the petition on March 30, 2011.
Petitioners provided Census Bureau Data, which they contend demonstrate
that imports of subject merchandise increased by more than 15 percent,
which is required to be considered ``massive'' under section
351.206(h)(2) of the Department's regulations. Petitioners submit that,
by volume, imports increased approximately 48 percent from 510,174
wheels in the first quarter of 2011, to 753,604 wheels in the second
quarter of 2010. Id. at 3 and Exhibit 1. Petitioners also contend that,
by value, imports increased approximately 40 percent, from $17,787,704
in the first quarter of 2011, to $24,893,481 in the second quarter of
2010. Id.
Analysis
Section 703(e)(1) of the Tariff Act of 1930, as amended (the Act),
provides that the Department will preliminarily determine that critical
circumstances exist if there is a reasonable basis to believe or
suspect that: (A) The alleged countervailable subsidy is inconsistent
with the Subsidies Agreement, and (B) there have been massive imports
of the subject merchandise over a relatively short period.
When determining whether an alleged countervailable subsidy is
inconsistent with the Subsidies Agreement, the Department limits its
findings to those subsidies contingent on export performance or use of
domestic over imported goods (i.e., those prohibited under Article 3 of
the Subsidies Agreement).\13\ In the Preliminary Determination, the
Department found that, during the POI, the Jingu Companies received
countervailable benefits under five programs that are contingent upon
export performance. Therefore, we preliminarily determine that there is
a reasonable basis to believe or suspect that these five programs are
inconsistent with the Subsidies Agreement.
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\13\ See, e.g., Notice of Preliminary Negative Determination of
Critical Circumstances: Certain New Pneumatic Off-the-Road Tires
From the People's Republic of China, 73 FR 21588, 21589-90 (April
22, 2008), unchanged in Final Affirmative Countervailing Duty
Determination and Final Negative Critical Circumstances
Determination: Carbon and Certain Alloy Steel Wire Rod From Germany,
67 FR 55808, 55809 (August 30, 2002).
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In the Preliminary Determination, the Department found that, during
the POI, the Centurion Companies and Xingmin Companies did not receive
countervailable benefits under any programs that are contingent upon
export performance. Therefore, we preliminarily determine that there is
not a reasonable basis to believe or suspect that the Centurion
Companies and the Xingmin Companies received benefits inconsistent with
the Subsidies Agreement.
In determining whether imports of the subject merchandise have been
``massive,'' section 351.206(h)(1) of the Department's regulations
provides that the Department normally will examine: (i) The volume and
value of the imports; (ii) seasonal trends; and (iii) the share of
domestic consumption accounted for by the imports. In addition, the
Department will not consider imports to be massive unless imports
during the ``relatively short period'' (comparison period) have
increased by at least 15 percent compared to imports during an
``immediately preceding period of comparable duration'' (base period).
See 19 CFR 351.206(h)(2).
Section 351.206(i) of the Department's regulations defines
``relatively short period'' as normally being the period beginning on
the date the proceeding commences (i.e., the date the petition is
filed) and ending at least three months later. For consideration of
this allegation, we have used a three-month base period (i.e., January
2011 through March 2011) and a three-month comparison period (i.e.,
April 2011 through June 2011).
In determining whether there were massive imports from the Jingu
Companies, we analyzed the Jingu Companies' monthly shipment data for
the period January 2011 through June 2011. These data indicate that
there was not a massive increase in shipments of subject merchandise to
the United States by the Jingu Companies during the three-month period
immediately following the filing of the petition on March 30, 2011.
Specifically, shipments of subject merchandise to the United States
from the Jingu Companies decreased, both in terms of volume and value.
See the Memorandum to the File from Robert Copyak, Senior Financial
Analyst, AD/CVD Operations Office 3, titled ``Critical Circumstances
Shipment Data Analysis,'' (Critical Circumstances Memorandum)
(February, 2011) at Attachment I.
With regard to whether imports of subject merchandise by the ``all
other'' exporters of steel wheels in the PRC were massive, we
preliminarily determine that because there is evidence of the existence
of countervailable subsidies that are inconsistent with the Subsidies
Agreement, an analysis is warranted as to whether there was a massive
increase in shipment by the ``all other'' companies, in accordance with
section 351.206(h)(1) of the Department's regulations. Therefore, we
analyzed, in accordance with 19 CFR 351.206(i), monthly shipment data
for the period January 2011 through June 2011, using shipment data from
the International Trade Commission's (ITC's) Dataweb and adjusting it
to remove the shipments by the respondents participating in the
investigation.\14\ For this analysis, we used only the data pertaining
to the HTSUS numbers 8708.70.05.00, 8708.70.25.00, 8708.70.45.30, and
8708.70.60.30, which are the HTSUS categories under which a majority of
the subject merchandise entered the United States. We did not use the
HTSUS numbers described in the scope as categories that imports of
subject merchandise ``may also enter under'' because they are basket
categories. The data provided by the respondents and the data for
shipments by other exporters from the ITC's Dataweb indicate there was
a massive increase in shipments, as defined by 19 CFR 351.206(h). See
Critical Circumstances Memorandum at Attachment II.
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\14\ See, e.g., Certain Oil Country Tubular Goods From the
People's Republic of China: Preliminary Affirmative Countervailing
Duty Determination, Preliminary Negative Critical Circumstances
Determination, 74 FR 47210, 47212 (September 15, 2009), unchanged in
Certain Oil Country Tubular Goods From the People's Republic of
China: Final Affirmative Countervailing Duty Determination: Final
Negative Critical Circumstances Determination, 74 FR 64045 (December
7, 2009).
---------------------------------------------------------------------------
Conclusion
We preliminarily determine that critical circumstances do not exist
for
[[Page 12814]]
imports of steel wheels from the three mandatory respondents the Jingu
Companies, Centurion Companies, and Xingmin Companies. Although the
Preliminary Determination indicates that the Jingu Companies benefited
from programs that are inconsistent with the Subsidies Agreement, the
Jingu Companies' shipment data does not indicate a massive increase in
shipments of subject merchandise to the United States. With regard to
Centurion and Xingmin, there is no evidence on the record indicating
that either company benefited from programs that are inconsistent with
the Subsidies Agreement and therefore we preliminarily determine that
critical circumstances do not exist with regard to shipments from these
two mandatory respondents.
We also preliminary determine, based on our analysis of the
shipment data provided by the three mandatory respondents and ITC
Dataweb data, that critical circumstances exist for imports from ``all
other'' exporters of steel from the PRC. We will make a final
determination concerning critical circumstances for steel wheels from
the PRC when we make our final countervailable subsidy determination in
this investigation.
Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, we are
directing U.S. Customs and Border Protection to suspend, with regard to
the ``all other'' companies only, liquidation of any unliquidated
entries of subject merchandise from the PRC entered, or withdrawn from
warehouse for consumption, on or after June 8, 2011, which is 90 days
prior to the date of publication of the Preliminary Determination in
the Federal Register.
ITC Notification
In accordance with section 703(f) of the Act, we will notify the
ITC of our determination.
This determination is issued and published pursuant to sections
703(f) and 777(i)(1) of the Act.
Dated: February 27, 2012.
Ronald K. Lorentzen
Acting Assistant Secretary for Import Administration.
[FR Doc. 2012-5186 Filed 3-1-12; 8:45 am]
BILLING CODE 3510-DS-P
