53-Foot Domestic Dry Containers From the People's Republic of China: Initiation of Antidumping Duty Investigation, 28674-28679 [2014-11519]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 79, Number 96 (Monday, May 19, 2014)]
[Notices]
[Pages 28674-28679]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-11519]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-014]


53-Foot Domestic Dry Containers From the People's Republic of 
China: Initiation of Antidumping Duty Investigation

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

DATES:  Effective Date: May 19, 2014.

FOR FURTHER INFORMATION CONTACT: John Drury and Brian Davis, Office VI, 
AD/CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0195 and (202) 482-7924, respectively.

SUPPLEMENTARY INFORMATION:

The Petition

    On April 23, 2014, the Department of Commerce (Department) received 
an antidumping duty (AD) petition concerning imports of 53-foot 
domestic dry containers (domestic dry containers) from the People's 
Republic of China (PRC), officially filed in proper form on behalf of a 
U.S. producer of domestic dry containers, Stoughton Trailers, LLC 
(Petitioner).\1\ The AD Petition was accompanied by a countervailing 
duty (CVD) petition concerning imports of domestic dry containers from 
the PRC. On April 25, 2014, and May 6, 2014, the Department requested 
additional information and clarification of certain areas of the 
Petition, and on April 30, 2014, and May 8, 2014, respectively, 
Petitioner filed responses to these requests.\2\
---------------------------------------------------------------------------

    \1\ See ``Petition for the Imposition of Antidumping Duties on 
Imports of 53-Foot Domestic Dry Containers from the People's 
Republic of China,'' dated April 23, 2014 (hereafter referred to as 
the ``Petition'').
    \2\ See Petitioner's, filing titled, ``Response to Department of 
Commerce Supplemental Questions, Volume II: Sales at Less Than 
Normal Value,'' dated April 30, 2014 (AD Supplement); see also 
``Response to Department of Commerce Supplemental Questions, Volume 
I: General Issues,'' dated April 30, 2014 (General Issues 
Supplement); and ``Petition for the Imposition of Antidumping and 
Countervailing Duties, Supplemental Submission, Petition Volume II: 
53-Foot Domestic Dry Containers from the People's Republic of 
China'', dated May 8, 2014 (AD Supplement 2).
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), Petitioner alleges that imports of domestic dry 
containers from the PRC are being, or are likely to be, sold in the 
United States at less than fair value within the meaning of section 731 
of the Act, and that such imports materially retard the establishment 
of an industry in the United States, or in the alternative, that the 
U.S. industry is materially injured or threatened with material injury 
by reason of such imports. Also, consistent with section 732(b)(1) of 
the Act, the Petition is accompanied by information reasonably 
available to Petitioner in support of its allegations.
    The Department finds that Petitioner filed the Petition on behalf 
of the domestic industry because Petitioner is an interested party as 
defined in section 771(9)(C) of the Act, and that Petitioner 
demonstrated sufficient industry support with respect to the initiation 
of the AD investigation that Petitioner is requesting.\3\
---------------------------------------------------------------------------

    \3\ See ``Determination of Industry Support for the Petition'' 
section, below.
---------------------------------------------------------------------------

Period of Investigation

    The period of investigation (POI) is October 1, 2013, through March 
31, 2014.

Scope of the Investigation

    The product covered by this investigation is domestic dry 
containers from the PRC. For a full description of the scope of the 
investigation, please see the ``Scope of the Investigation'' in 
Appendix I of this notice.

Comments on the Scope of the Investigation

    During our review of the Petition, the Department issued questions 
to, and received responses from, Petitioner pertaining to the proposed 
scope language in order to ensure that such language is an accurate 
reflection of the product for which the domestic industry is seeking 
relief.\4\ As discussed in the preamble to the Department's 
regulations,\5\ we are setting aside a period for interested parties to 
raise issues regarding product coverage. The period of scope comments 
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. All comments must be filed by 5:00 
p.m. Eastern Daylight Time (EDT) on June 2, 2014, which is twenty 
calendar days from the signature date of this notice. Any rebuttal 
comments must be filed by 5:00 p.m. EDT on June 9, 2014. All such 
comments must be filed on the records of the AD investigation, as well 
as the concurrent CVD investigation.
---------------------------------------------------------------------------

    \4\ See General Issues Supplemental Questions, dated April 25, 
2014; see also General Issues Supplement, at 1-2 and Exhibit SG-2.
    \5\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
---------------------------------------------------------------------------

Filing Requirements

    All comments and submissions to the Department must be filed 
electronically using Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (IA ACCESS). 
An electronically filed document must be received successfully in its 
entirety by the time and date of the applicable deadline noted above. 
Documents excepted from the electronic submission requirements must be 
filed

[[Page 28675]]

manually (i.e., in paper form) with Enforcement and Compliance's APO/
Dockets Unit, Room 1870, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230, and stamped with the 
date and time of receipt by the applicable deadline.\6\
---------------------------------------------------------------------------

    \6\ See 19 CFR 351.303(b)(1). See also Antidumping and 
Countervailing Duty Proceedings: Electronic Filing Procedures; 
Administrative Protective Order Procedures, 76 FR 39263 (July 6, 
2011) for details of the Department's electronic filing 
requirements, which went into effect on August 5, 2011. Information 
on help using IA ACCESS can be found at https://iaaccess.trade.gov/help.aspx and a handbook can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------

Comments on the Product Characteristics for the AD Questionnaire

    The Department requests comments from interested parties regarding 
the appropriate physical characteristics of domestic dry containers to 
be reported in response to the Department's AD questionnaire. This 
information will be used to identify the key physical characteristics 
of the subject merchandise in order to report the relevant factors of 
production accurately, as well as to develop appropriate product-
comparison criteria.
    Interested parties may provide any information or comments that 
they believe are relevant to the development of an accurate list of 
physical characteristics. Specifically, interested parties may provide 
comments as to which characteristics are appropriate to use as: (1) 
General product characteristics and (2) product-comparison criteria. We 
note that it is not always appropriate to use all product 
characteristics as product-comparison criteria. We base product-
comparison criteria on meaningful commercial differences among 
products. In other words, while there may be some physical product 
characteristics utilized by manufacturers to describe domestic dry 
containers, it may be that only a select few product characteristics 
take into account commercially meaningful physical characteristics. In 
addition, interested parties may comment on the order in which the 
physical characteristics should be used in matching products. 
Generally, the Department attempts to list the most important physical 
characteristics first and the least important characteristics last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaire, we must receive comments 
on product characteristics no later than June 2, 2014. Rebuttal 
comments must be received no later than June 9, 2014. All comments and 
submissions to the Department must be filed electronically using IA 
ACCESS, as referenced above.

Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, the Department 
shall: (i) Poll the industry or rely on other information in order to 
determine if there is support for the petition, as required by 
subparagraph (A); or (ii) determine industry support using a 
statistically valid sampling method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs the Department to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both the Department and 
the ITC must apply the same statutory definition regarding the domestic 
like product (see 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.\7\
---------------------------------------------------------------------------

    \7\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petitions).
    With regard to the domestic like product, Petitioner does not offer 
a definition of the domestic like product distinct from the scope of 
the investigation. Based on our analysis of the information submitted 
on the record, we determined that domestic dry containers constitute a 
single domestic like product and we analyzed industry support in terms 
of that domestic like product.\8\
---------------------------------------------------------------------------

    \8\ For a discussion of the domestic like product analysis in 
this case, see Antidumping Duty Investigation Initiation Checklist: 
53-Foot Domestic Dry Containers from the People's Republic of China 
(AD Initiation Checklist) at Attachment II, Analysis of Industry 
Support for the Petitions Covering 53-Foot Domestic Dry Containers 
from the People's Republic of China (Attachment II). This checklist 
is dated concurrently with this notice and on file electronically 
via IA ACCESS. Access to documents filed via IA ACCESS is also 
available in the Central Records Unit (CRU), Room 7046 of the main 
Department of Commerce building.
---------------------------------------------------------------------------

    In determining whether Petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in Appendix I of this 
notice. To establish industry support, Petitioner provided its own 
production of the domestic like product in 2013.\9\ Petitioner states 
that there are no other known producers of domestic dry containers in 
the United States; therefore, the Petition is supported by 100 percent 
of the U.S. industry.\10\
---------------------------------------------------------------------------

    \9\ See Volume I of the Petition, at 3; see also General Issues 
Supplement, at 2.
    \10\ See Volume I of the Petition, at 3.
---------------------------------------------------------------------------

    Our review of the data provided in the Petition and other 
information readily available to the Department indicates that 
Petitioner has established industry support.\11\ First, the Petition 
established support from domestic producers (or workers) accounting for 
more than 50 percent of the total production of the domestic like 
product and, as such, the Department is not required to take further 
action in order to evaluate industry support (e.g., polling).\12\ 
Second, the domestic producers (or workers) have met the statutory 
criteria

[[Page 28676]]

for industry support under section 732(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.\13\ Finally, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 732(c)(4)(A)(ii) 
of the Act because the domestic producers (or workers) who support the 
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.\14\ 
Accordingly, the Department determines that the Petition was filed on 
behalf of the domestic industry within the meaning of section 732(b)(1) 
of the Act.
---------------------------------------------------------------------------

    \11\ See AD Initiation Checklist, at Attachment II.
    \12\ See section 732(c)(4)(D) of the Act; see also AD Initiation 
Checklist, at Attachment II.
    \13\ See AD Initiation Checklist, at Attachment II.
    \14\ Id.
---------------------------------------------------------------------------

    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 it has demonstrated sufficient 
industry support with respect to the AD investigation that it is 
requesting the Department initiate.\15\
---------------------------------------------------------------------------

    \15\ Id.
---------------------------------------------------------------------------

Allegations and Evidence of Material Retardation, Material Injury and 
Causation

    Section 733(a)(1)(B) of the Act states that the ITC ``shall 
determine . . . whether there is a reasonable indication that the 
establishment of an industry in the United States is materially 
retarded by reason of imports of the subject merchandise.'' Petitioner 
alleges that imports of subject merchandise sold at less than normal 
value (NV) from the PRC have materially retarded the establishment of 
the domestic industry producing domestic dry containers. Petitioner 
argues that despite its demonstrated substantial commitment to commence 
production, U.S. production has not stabilized, and, therefore, the 
U.S. industry producing domestic dry containers has not been 
established.\16\ To support its argument, Petitioner examines the five 
factors \17\ considered by the ITC to determine if an industry is 
established,\18\ as set forth in the ITC's AD/CVD Handbook.\19\ If the 
ITC determines that an industry is not established, it then considers 
whether the performance of the industry reflects normal start-up 
difficulties or whether the imports of the subject merchandise have 
materially retarded the establishment of the industry.\20\ Petitioner 
contends that the domestic industry has performed substantially worse 
than what could reasonably be expected during normal start-up 
conditions, thereby demonstrating that the establishment of the 
domestic industry has been materially retarded by subject imports.\21\ 
Petitioner also alleges that, in the alternative, the U.S. industry 
producing the domestic like product is being materially injured, or is 
threatened with material injury, by reason of the imports of the 
subject merchandise sold at less than NV. In addition, Petitioner 
alleges that subject imports exceed the negligibility threshold 
provided for under section 771(24)(A) of the Act.\22\
---------------------------------------------------------------------------

    \16\ See Volume I of the Petition, at 37-38.
    \17\ See Attachment III.
    \18\ Id., at 18-20 and 37-38; see also General Issues 
Supplement, at 1 and Exhibit SG-1.
    \19\ See Antidumping and Countervailing Duty Handbook (13th 
Ed.), USITC Pub. 4056 (December 2008) (ITC AD/CVD Handbook), at II-
31.
    \20\ Id., at II-31 and II-32.
    \21\ See Volume I of the Petition, at 38-39 and Exhibits I-10 
and I-11.
    \22\ See General Issues Supplement, at 4-5 and Exhibit SG-3.
---------------------------------------------------------------------------

    Petitioner contends that the industry's materially retarded, or in 
the alternative, injured condition is illustrated by negligible market 
share; underselling and price depression or suppression; lost sales and 
revenues; adverse impact on production, capacity utilization, and 
shipments; decline in employment variables; and decline in financial 
performance.\23\ We assessed the allegations and supporting evidence 
regarding material retardation, or in the alternative, material injury 
or threat of material injury, and causation, and we determined that 
these allegations are properly supported by adequate evidence and meet 
the statutory requirements for initiation.\24\
---------------------------------------------------------------------------

    \23\ See Volume I of the Petition, at 14-20, 25-40 and Exhibits 
I-10 through I-15; see also General Issues Supplement, at 2-5 and 
Exhibits SG-3 through SG-6.
    \24\ See AD Initiation Checklist, at Attachment III, Analysis of 
Allegations and Evidence of Material Retardation, Material Injury 
and Causation for the Antidumping and Countervailing Duty Petitions 
Covering 53-Foot Domestic Dry Containers from the People's Republic 
of China.
---------------------------------------------------------------------------

Allegation of Sales at Less Than Fair Value

    The following is a description of the allegation of sales at less 
than fair value upon which the Department based its decision to 
initiate an investigation of imports of domestic dry containers from 
the PRC. The sources of data for the deductions and adjustments 
relating to U.S. price and NV are discussed in greater detail in the AD 
Initiation Checklist.

Export Price

    Petitioner based export price (EP) on one U.S. price quote for 
domestic dry containers produced in the PRC and offered for sale in the 
United States during the POI. As the quoted price is on an ex-works 
basis, Petitioner did not make any adjustments to this U.S. net 
price.\25\
---------------------------------------------------------------------------

    \25\ See Volume II of the Petition, at 4 and Exhibit II-4; see 
also AD Initiation Checklist.
---------------------------------------------------------------------------

Normal Value

    Petitioner states that the Department has treated the PRC as a non-
market economy (NME) country in every proceeding in which the PRC has 
been involved.\26\ The presumption of NME status for the PRC has not 
been revoked by the Department and, therefore, in accordance with 
section 771(18)(C)(i) of the Act, remains in effect for purposes of the 
initiation of this investigation. Accordingly, the NV of the product 
for the investigation is appropriately based on factors of production 
valued in a surrogate market-economy country in accordance with section 
773(c) of the Act. In the course of this investigation, all parties 
will have the opportunity to provide relevant information related to 
the issues of the PRC's NME status and granting of separate rates to 
individual exporters.
---------------------------------------------------------------------------

    \26\ See Volume II of the Petition at 2.
---------------------------------------------------------------------------

    Petitioner contends that Thailand is the appropriate surrogate 
country for the PRC because: (1) It is at a level of economic 
development comparable to that of the PRC; (2) It is a significant 
producer of comparable merchandise; and (3) the data for Thailand for 
valuing factors of production are available and reliable.\27\ Based on 
the information provided by Petitioner, we conclude that it is 
appropriate to use Thailand as a surrogate country for initiation 
purposes.\28\ After initiation of this investigation, interested 
parties will have the opportunity to submit comments regarding 
surrogate country selection and, pursuant to 19 CFR 351.301(c)(3)(i), 
will be provided an opportunity to submit publicly available 
information to value factors of production (FOPs) within 30 days before 
the scheduled date of the preliminary determination.\29\
---------------------------------------------------------------------------

    \27\ Id. at 1-4.
    \28\ See AD Initiation Checklist.
    \29\ See 19 CFR 351.301(c)(3)(i). Note that this is the revised 
regulation published on April 10, 2013. See https://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt.
---------------------------------------------------------------------------

    Petitioner calculated NV using the Department's NME methodology as 
required by 19 CFR 351.202(b)(7)(i)(C) and 19 CFR 351.408. Petitioner 
based

[[Page 28677]]

NV on its own production experience.\30\ Petitioner asserts that, to 
the best of its knowledge, its consumption rates are similar to the 
consumption of PRC producers.\31\
---------------------------------------------------------------------------

    \30\ See Volume II of the Petition, at 4 and Exhibit II-5 and AD 
Supplement, at 1 and Exhibit SAD-1.
    \31\ Id.
---------------------------------------------------------------------------

    Petitioner valued the factors of production using reasonably 
available, public surrogate country data, specifically, Thai import 
data from the Global Trade Atlas (GTA) for the period September 2013 
through February 2014, which are the most recent six months of data 
available for Thailand at the time of filing the Petition.\32\ 
Petitioner excluded from these GTA import statistics imports from NME 
countries, countries that maintain broadly available export subsidies, 
and any imports from ``unspecified'' countries.\33\ The Department 
determines that the surrogate values used by Petitioner are reasonably 
available and, thus, are acceptable for purposes of initiation. With 
respect to direct materials, Petitioner applied certain conversion 
factors to align the units of measure with its own FOPs.\34\
---------------------------------------------------------------------------

    \32\ See Volume II of the Petition at 5 and Exhibit II-9; see 
also AD Supplement, at 2-3 and Exhibit SAD-3.
    \33\ See Volume II of the Petition at 5 and Exhibit II-9.
    \34\ Id. and at Exhibit II-6 and AD Supplement at 1-2.
---------------------------------------------------------------------------

    Petitioner calculated labor using a 2007 Thailand wage rate from 
the National Statistics Office's 2007 Industrial Census, and adjusted 
this rate for inflation using the consumer price index (CPI) data for 
Thailand published by the International Financial Statistics (IFS).\35\
---------------------------------------------------------------------------

    \35\ See Volume II of the Petition at 6 and Exhibits II-11 and 
II-12.
---------------------------------------------------------------------------

    Petitioner valued electricity using a 2013 Thailand industry 
electricity rate from the Metropolitan Electricity Authority (MEA).\36\
---------------------------------------------------------------------------

    \36\ See AD Supplement 2 at 2.
---------------------------------------------------------------------------

    Petitioner calculated financial ratios (i.e., factory overhead 
expenses, selling, general, and administrative expenses, and profit) 
based on the 2013 year-end financial statements of Cho Thavee Dollasien 
Public Company Limited (formerly Cho Thavee Dollasien Co., Ltd.) and 
its subsidiary, Cho Thavee Thermo Tech Co., Ltd. (collectively, Cho 
Thavee Dollasien), Thai manufacturers of containers, trailer 
assemblies, special vehicles, and related equipment (products that 
Petitioner claims is comparable to domestic dry containers), for the 
year ending December 31, 2013.\37\
---------------------------------------------------------------------------

    \37\ See Volume II of the Petition at 6 and Exhibit II-14, and 
AD Supplement at 4-5 and Exhibit SAD-5.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by Petitioner, there is reason to 
believe that imports of domestic dry containers from the PRC are being, 
or are likely to be, sold in the United States at less than fair value. 
Based on comparisons of EP to NV in accordance with section 773(c) of 
the Act, Petitioner calculated the estimated dumping margin to be 84.07 
percent with respect to imports of domestic dry containers from the 
PRC.\38\
---------------------------------------------------------------------------

    \38\ See AD Supplement at 6.
---------------------------------------------------------------------------

Initiation of AD Investigation

    Based on our examination of the Petition on domestic dry containers 
from the PRC, the Department finds that the Petition meets the 
requirements of section 732 of the Act. Therefore, we are initiating an 
AD investigation to determine whether imports of domestic dry 
containers from the PRC are being, or likely to be, sold in the United 
States at less than fair value. In accordance with section 733(b)(1)(A) 
of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our 
preliminary determination no later than 140 days after the date of this 
initiation. For a discussion of evidence supporting our initiation 
determination, see the AD Initiation Checklist which accompanies this 
notice.

Respondent Selection

    In accordance with our standard practice for respondent selection 
in AD investigations involving NME countries, we intend to issue 
quantity and value questionnaires to each potential respondent named in 
the Petition,\39\ and will base respondent selection on the responses 
received. In addition, the Department will post the quantity and value 
questionnaire along with the filing instructions on the Enforcement and 
Compliance Web site (https://trade.gov/enforcement/news.asp). Exporters 
and producers of domestic dry containers from the PRC that do not 
receive quantity and value questionnaires via mail may still submit a 
quantity and value response, and can obtain a copy from the Enforcement 
and Compliance Web site. The quantity and value questionnaire must be 
submitted by all PRC exporters/producers no later than May 27, 2014. 
All quantity and value questionnaires must be filed electronically 
using IA ACCESS.
---------------------------------------------------------------------------

    \39\ See Volume I of the Petition at 12-13.
---------------------------------------------------------------------------

Separate Rates

    In order to obtain separate rate status in an NME AD investigation, 
exporters and producers must submit a separate rate application.\40\ 
The specific requirements for submitting the separate rate application 
in the PRC investigation are outlined in detail in the application 
itself, which will be available on the Department's Web site at https://trade.gov/enforcement/news.asp on the date of publication of this 
initiation notice in the Federal Register. The separate rate 
application will be due 60 days after the publication of this 
initiation notice. For exporters and producers who submit a separate 
rate status application and have been selected as mandatory 
respondents, these exporters and producers will no longer be eligible 
for consideration for separate rate status unless they respond to all 
parts of the Department's AD questionnaire as mandatory respondents. 
The Department requires that the PRC respondents submit a response to 
the separate rate application by the deadline referenced above in order 
to receive consideration for separate rate status.
---------------------------------------------------------------------------

    \40\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
Involving Non-Market Economy Countries (April 5, 2005) (Separate 
Rates and Combination Rates Bulletin), available on the Department's 
Web site at https://enforcement.trade.gov/policy/).
---------------------------------------------------------------------------

Use of Combination Rates

    The Department will calculate combination rates for certain 
respondents that are eligible for a separate rate in an NME 
investigation. The Separate Rates and Combination Rates Bulletin 
states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME investigations will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is 
referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\41\
---------------------------------------------------------------------------

    \41\ See Separate Rates and Combination Rates Bulletin at 6 
(emphasis added).

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

[[Page 28678]]

Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act, and 19 CFR 
351.202(f), copies of the public version of the Petition have been 
provided to the Government of the PRC. To the extent practicable, we 
will attempt to provide a copy of the public version of the Petition to 
each known exporter (as named in the Petition), as provided in 19 CFR 
351.203(c)(2).

ITC Notification

    We notified the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of domestic dry containers from the PRC 
materially retard the establishment of the U.S. industry, or whether 
the U.S. industry is materially injured, or threatened with material 
injury by reason of such imports.\42\ A negative ITC determination will 
result in the investigation being terminated.\43\ Otherwise, this 
investigation will proceed according to statutory and regulatory time 
limits.
---------------------------------------------------------------------------

    \42\ See section 733(a) of the Act.
    \43\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    On April 10, 2013, the Department published Definition of Factual 
Information and Time Limits for Submission of Factual Information: 
Final Rule, 78 FR 21246 (April 10, 2013), which modified two 
regulations related to AD and CVD proceedings: (1) The definition of 
factual information (19 CFR 351.102(b)(21)), and (2) the time limits 
for the submission of factual information (19 CFR 351.301). The final 
rule identifies five categories of factual information in 19 CFR 
351.102(b)(21), which are summarized as follows: (i) Evidence submitted 
in response to questionnaires; (ii) evidence submitted in support of 
allegations; (iii) publicly available information to value factors 
under 19 CFR 351.408(c) or to measure the adequacy of remuneration 
under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by the 
Department; and (v) evidence other than factual information described 
in (i)-(iv). The final rule requires any party, when submitting factual 
information, to specify under which subsection of 19 CFR 351.102(b)(21) 
the information is being submitted and, if the information is submitted 
to rebut, clarify, or correct factual information already on the 
record, to provide an explanation identifying the information already 
on the record that the factual information seeks to rebut, clarify, or 
correct. The final rule also modified 19 CFR 351.301 so that, rather 
than providing general time limits, there are specific time limits 
based on the type of factual information being submitted. These 
modifications are effective for all proceeding segments initiated on or 
after May 10, 2013, and thus are applicable to this investigation. 
Please review the final rule, available at https://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt, prior to 
submitting factual information for this investigation.

Revised Extension of Time Limits Regulation

    On September 20, 2013, the Department modified its regulation 
concerning the extension of time limits for submissions in AD and CVD 
proceedings.\44\ The modification clarifies that parties may request an 
extension of time limits before a time limit established under Part 351 
expires, or as otherwise specified by the Secretary. In general, an 
extension request will be considered untimely if it is filed after the 
time limit established under Part 351 expires. For submissions which 
are due from multiple parties simultaneously, an extension request will 
be considered untimely if it is filed after 10:00 a.m. on the due date. 
Examples include, but are not limited to: (1) Case and rebuttal briefs, 
filed pursuant to 19 CFR 351.309; (2) factual information to value 
factors under section 19 CFR 351.408(c), or to measure the adequacy of 
remuneration under section 19 CFR 351.511(a)(2), filed pursuant to 19 
CFR 351.301(c)(3) and rebuttal, clarification and correction filed 
pursuant to 19 CFR 351.301(c)(3)(iv); (3) comments concerning the 
selection of a surrogate country and surrogate values and rebuttal; (4) 
comments concerning U.S. Customs and Border Protection (CBP) data; and 
(5) quantity and value questionnaires. Under certain circumstances, the 
Department may elect to specify a different time limit by which 
extension requests will be considered untimely for submissions which 
are due from multiple parties simultaneously. In such a case, the 
Department will inform parties in the letter or memorandum setting 
forth the deadline (including a specified time) by which extension 
requests must be filed to be considered timely. This modification also 
requires that an extension request must be made in a separate, stand-
alone submission, and clarifies the circumstances under which the 
Department will grant untimely-filed requests for the extension of time 
limits. These modifications are effective for all segments initiated on 
or after October 21, 2013. Please review Extension of Time Limits; 
Final Rule, available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information in this 
segment.
---------------------------------------------------------------------------

    \44\ See Extension of Time Limits, Final Rule, 78 FR 57790 
(September 20, 2013).
---------------------------------------------------------------------------

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\45\ 
Parties are hereby reminded that revised certification requirements are 
in effect for company/government officials as well as their 
representatives in all AD or CVD investigations or proceedings 
initiated on or after August 16, 2013, including this 
investigation.\46\ The formats for the revised certifications are 
provided at the end of the Final Rule. The Department intends to reject 
factual submissions if the submitting party does not comply with the 
revised certification requirements.
---------------------------------------------------------------------------

    \45\ See section 782(b) of the Act.
    \46\ See Certifications of Factual Information To Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule).
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). Instructions for filing such 
applications may be found on the Department's Web site at https://enforcement.trade.gov/apo/.
    This notice is issued and published pursuant to section 777(i) of 
the Act and 19 CFR 351.203(c).

     Dated: May 13, 2014.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise subject to investigation is closed (i.e., not 
open top) van containers exceeding 14.63 meters (48 feet) but 
generally measuring 16.154 meters (53 feet) in exterior length, 
which are designed for the intermodal transport \47\ of goods other 
than bulk liquids within North America primarily by rail or by road 
vehicle, or by a combination of rail and road vehicle (domestic 
containers). The merchandise is known in the industry by

[[Page 28679]]

varying terms including ``53-foot containers,'' ``53-foot dry 
containers,'' ``53-foot domestic dry containers,'' ``domestic dry 
containers'' and ``domestic containers.'' These terms all describe 
the same article with the same design and performance 
characteristics. Notwithstanding the particular terminology used to 
describe the merchandise, all merchandise that meets the definition 
set forth herein is included within the scope of this investigation.
---------------------------------------------------------------------------

    \47\ ``Intermodal transport'' refers to a movement of freight 
using more than one mode of transportation, most commonly on a 
container chassis for on-the-road transportation and on a rail car 
for rail transportation.
---------------------------------------------------------------------------

    Domestic containers generally meet the characteristic for closed 
van containers for domestic intermodal service as described in the 
American Association of Railroads (AAR) Manual of Standards and 
Recommended Practices Intermodal Equipment Manual Closed Van 
Containers for Domestic Intermodal Service Specification M 930 
Adopted: 1972; Last Revised 2013 (AAR Specifications) for 53-foot 
and 53-foot high cube containers. The AAR Specifications generally 
define design, performance and testing requirements for closed van 
containers, but are not dispositive for purposes of defining subject 
merchandise within this scope definition. Containers which may not 
fall precisely within the AAR Specifications or any successor 
equivalent specifications are included within the scope definition 
of the subject merchandise if they have the exterior dimensions 
referenced below, are suitable for use in intermodal transportation, 
are capable of and suitable for double-stacking \48\ in intermodal 
transportation, and otherwise meet the scope definition for the 
subject merchandise.
---------------------------------------------------------------------------

    \48\ ``Double-stacking'' refers to two levels of intermodal 
containers on a rail car, one on top of the other.
---------------------------------------------------------------------------

    Domestic containers have the following actual exterior 
dimensions: An exterior length exceeding 14.63 meters (48 feet) but 
not exceeding 16.154 meters (53 feet); an exterior width of between 
2.438 meters and 2.60 meters (between 8 feet and 8 feet 6\3/8\ 
inches); and an exterior height of between 2.438 meters and 2.908 
meters (between 8 feet and 9 feet 6\1/2\ inches), all subject to 
tolerances as allowed by the AAR Specifications. In addition to two 
frames (one at either end of the container), the domestic containers 
within the scope definition have two stacking frames located 
equidistant from each end of the container, as required by the AAR 
Specifications. The stacking frames have four upper handling 
fittings and four bottom dual aperture handling fittings, placed at 
the respective corners of the stacking frames. Domestic containers 
also have two forward facing fittings at the front lower corners and 
two downward facing fittings at the rear lower corners of the 
container to facilitate chassis interface.
    All domestic containers as described herein are included within 
this scope definition, regardless of whether the merchandise enters 
the United States in a final, assembled condition, or as an 
unassembled kit or substantially complete domestic container which 
requires additional manipulation or processing after entry into the 
United States to be made ready for use as a domestic container.
    The scope of this investigation excludes the following items: 
(1) Refrigerated containers; (2) trailers, where the cargo box and 
rear wheeled chassis are of integrated construction, and the cargo 
box of the unit may not be separated from the chassis for further 
intermodal transport; (3) container chassis, whether or not imported 
with domestic containers, but the domestic containers remain subject 
merchandise, to the extent they meet the written description of the 
scope. Imports of the subject merchandise are provided for under 
subheading 8609.00.0000 of the Harmonized Tariff Schedule of the 
United States (HTSUS). Imports of the subject merchandise which meet 
the definition of and requirements for ``instruments of 
international traffic'' pursuant to 19 U.S.C. 1322 and 19 CFR 10.41a 
may be classified under subheading 9803.00.50, HTSUS. While HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the subject merchandise as set forth herein 
is dispositive.

[FR Doc. 2014-11519 Filed 5-16-14; 8:45 am]
BILLING CODE 3510-DS-P