Certain Tool Chests and Cabinets From the Socialist Republic of Vietnam: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination and Extension of Provisional Measures, 53452-53455 [2017-24862]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 82, Number 220 (Thursday, November 16, 2017)]
[Notices]
[Pages 53452-53455]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24862]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-552-821]


Certain Tool Chests and Cabinets From the Socialist Republic of 
Vietnam: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, Postponement of Final Determination and Extension of 
Provisional Measures

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that certain tool chests and cabinets (tool chests) from the 
Socialist Republic of Vietnam (Vietnam) are being, or are likely to be, 
sold in the United States at less than fair value (LTFV). The period of 
investigation (POI) is October 1, 2016, through March 31, 2017.

DATES: Applicable November 16, 2017.

FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW., Washington, DC 20230; telephone: (202) 482-0665.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on May 9, 
2017.\1\ On August 21, 2017, the Department postponed the preliminary 
determination of this investigation and the revised deadline is now 
November 7, 2017.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics included in the Preliminary 
Decision Memorandum is included as Appendix II to this notice. The 
Preliminary Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov, 
and to all parties in the Central Records Unit, room B8024 of the main 
Department of Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/.
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    \1\ See Certain Tool Chests and Cabinets from the People's 
Republic of China and the Socialist Republic of Vietnam: Initiation 
of Less-Than-Fair-Value Investigations, 82 FR 21523 (May 9, 2017) 
(Initiation Notice).
    \2\ See Certain Tool Chests and Cabinets from the People's 
Republic of China and the Socialist Republic of Vietnam: 
Postponements of Preliminary Determinations of Antidumping Duty 
Investigations, 82 FR 39563 (August 21, 2017).
    \3\ See Memorandum, ``Decision Memorandum for Preliminary 
Affirmative Determination in the Less-Than-Fair-Value Investigation 
of Certain Tool Chests and Cabinets from the Socialist Republic of 
Vietnam,'' dated concurrently with, and hereby adopted by, this 
notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are tool chests from 
Vietnam. For a complete description of the scope of this investigation, 
see Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this investigation, 
and accompanying discussion and analysis of all comments timely 
received, see the Preliminary Scope Decision Memorandum.\6\ The 
Department has preliminarily modified the scope language that appeared 
in the Initiation Notice. See the revised scope in Appendix I to this 
notice. The Department intends to address any scope comments received 
\7\ and issue a

[[Page 53453]]

final scope decision along with the final determination in the 
concurrent countervailing duty (CVD) investigation on tool chests from 
the People's Republic of China.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 82 FR at 21523.
    \6\ See Memorandum, ``Certain Tool Chests and Cabinets from the 
People's Republic of China and the Socialist Republic of Vietnam: 
Scope Comments Decision Memorandum for the Preliminary 
Determinations'' (Preliminary Scope Decision Memorandum), dated 
September 8, 2017.
    \7\ The scope case briefs were due 30 days after the publication 
of Certain Tool Chests and Cabinets from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination, 82 
FR 43331 (September 15, 2017), which was Sunday, October 15, 2017. 
See the Preliminary Scope Decision Memorandum at 6. Therefore, the 
actual deadline for the scope case briefs was Monday, October 16, 
2017. See 19 CFR 351.303(b)(1) (``For both electronically filed and 
manually filed documents, if the applicable due date falls on a non-
business day, the Secretary will accept documents that are filed on 
the next business day.''). The deadline for scope rebuttal briefs 
was Monday, October 23, 2017.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. The Department has calculated export prices and 
constructed export prices in accordance with sections 772(a) and (b) of 
the Act, respectively. Because Vietnam is a non-market economy, within 
the meaning of section 771(18) of the Act, the Department has 
calculated normal value (NV) in accordance with section 773(c) of the 
Act. In addition, pursuant to section 776(a) and (b) of the Act, the 
Department preliminarily has relied on facts otherwise available, with 
adverse inferences, for the Vietnam-wide entity. For a full description 
of the methodology underlying the Department's preliminary 
determination, see the Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,\8\ the Department stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\9\ In this investigation, we calculated 
producer/exporter combination rates for respondents eligible for 
separate rates.
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    \8\ See Initiation Notice, 82 FR at 21528.
    \9\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' dated April 5, 2005 (Policy Bulletin 05.1), available 
on the Department's Web site at https://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

    The Department preliminarily determines that the following 
estimated weighted-average dumping margins exist: \10\
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    \10\ The Department preliminarily determines that Clearwater 
Metal VN JSC, Rabat Corporation, and CSPS Co., Ltd., are a single 
entity (hereinafter, Clearwater Metal Single Entity). See 
Preliminary Decision Memorandum; see also Memorandum, ``Certain Tool 
Chests and Cabinets from the Socialist Republic of Vietnam: 
Collapsing and Single Entity Treatment,'' dated concurrently with 
this notice.

------------------------------------------------------------------------
                                                      Estimated weighted-
            Exporter                   Producer         average dumping
                                                       margin ([percnt])
------------------------------------------------------------------------
Clearwater Metal Single Entity..  Clearwater Metal                230.31
                                   Single Entity.
Vietnam-wide Entity.............  ..................              230.31
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Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, the Department 
will direct U.S. Customs and Border Protection (CBP) to suspend 
liquidation of subject merchandise as described in the scope of the 
investigation section entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register, as discussed below. Further, pursuant to section 
733(d)(1)(B) of the Act and 19 CFR 351.205(d), the Department will 
instruct CBP to require a cash deposit equal to the weighted-average 
amount by which normal value exceeds U.S. price, as indicated in the 
chart above as follows: (1) For the producer/exporter combination 
listed in the table above, the cash deposit rate is equal to the 
estimated weighted-average dumping margin listed for that combination 
in the table; (2) for all combinations of Vietnam producers/exporters 
of merchandise under consideration that have not established 
eligibility for their own separate rates, the cash deposit rate will be 
equal to the estimated weighted-average dumping margin established for 
the Vietnam-wide entity; and (3) for all third-country exporters of 
merchandise under consideration not listed in the table above, the cash 
deposit rate is the cash deposit rate applicable to the Vietnam 
producer/exporter combination (or the Vietnam-wide entity) that 
supplied that third-country exporter.

Disclosure

    The Department intends to disclose to interested parties the 
calculations performed in connection with this preliminary 
determination within five days of its public announcement or, if there 
is no public announcement, within five days of the date of publication 
of this notice in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, the Department intends 
to verify information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments, with the exception of scope 
case briefs or scope comments,\11\ may be submitted to the Assistant 
Secretary for Enforcement and Compliance no later than seven days after 
the date on which the last final verification report is issued in this 
investigation, unless the Department alters the time limit. Rebuttal 
briefs, limited to issues raised in case briefs, may be submitted no 
later than five days after the deadline date for case briefs.\12\ 
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case 
briefs or rebuttal briefs in this investigation are encouraged to 
submit with each argument: (1) A statement of the issue; (2) a brief 
summary of the argument; and (3) a table of authorities.
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    \11\ As explained above, the actual deadline for the scope case 
briefs was Monday, October 16, 2017.
    \12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, the 
Department intends to hold the hearing at the U.S. Department of 
Commerce,

[[Page 53454]]

1401 Constitution Avenue NW., Washington, DC 20230, at a time and date 
to be determined. Parties should confirm by telephone the date, time, 
and location of the hearing two days before the scheduled date.
    All documents must be filed electronically using ACCESS. An 
electronically-filed request must be received successfully in its 
entirety by ACCESS no later than 5:00 p.m. Eastern Time on the 
established due date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioners. Pursuant to 19 CFR 351.210(e)(2), the Department 
requires that requests by respondents for postponement of a final 
antidumping determination be accompanied by a request for extension of 
provisional measures from a four-month period to a period not more than 
six months in duration.
    On September 19, 2017, pursuant to 19 CFR 351.210(e), the 
Clearwater Metal Single Entity requested that the Department postpone 
the final determination and that provisional measures be extended to a 
period not to exceed six months.\13\ In accordance with section 
735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because (1) the 
preliminary determination is affirmative; (2) the requesting exporter 
accounts for a significant proportion of exports of the subject 
merchandise; and (3) no compelling reasons for denial exist, the 
Department is postponing the final determination and extending the 
provisional measures from a four-month period to a period not greater 
than six months. Accordingly, the Department's final determination will 
be published no later than 135 days after the date of publication of 
this preliminary determination.
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    \13\ See Letter from the Clearwater Metal Single Entity, 
``Antidumping Duty Investigation of Certain Tool Chests and Cabinets 
from the Socialist Republic of Vietnam: Extension Request for Final 
Determination,'' dated September 19, 2017.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, the Department will 
notify the International Trade Commission (ITC) of its preliminary 
determination of sales at LTFV. If the final determination is 
affirmative, the ITC will determine before the later of 120 days after 
the date of this preliminary determination or 45 days after the final 
determination whether imports of the subject merchandise are materially 
injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: November 7, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers certain metal tool chests 
and tool cabinets, with drawers, (tool chests and cabinets), from 
the Socialist Republic of Vietnam (Vietnam). The scope covers all 
metal tool chests and cabinets, including top chests, intermediate 
chests, tool cabinets and side cabinets, storage units, mobile work 
benches, and work stations and that have the following physical 
characteristics:
    (1) A body made of carbon, alloy, or stainless steel and/or 
other metals;
    (2) two or more drawers for storage in each individual unit;
    (3) a width (side to side) exceeding 15 inches for side cabinets 
and exceeding 21 inches for all other individual units but not 
exceeding 60 inches;
    (4) a body depth (front to back) exceeding 10 inches but not 
exceeding 24 inches; and
    (5) prepackaged for retail sale.
    For purposes of this scope, the width parameter applies to each 
individual unit, i.e., each individual top chest, intermediate top 
chest, tool cabinet, side cabinet, storage unit, mobile work bench, 
and work station.
    Prepackaged for retail sale means the units may, for example, be 
packaged in a cardboard box, other type of container or packaging, 
and may bear a Universal Product Code, along with photographs, 
pictures, images, features, artwork, and/or product specifications. 
Subject tool chests and cabinets are covered whether imported in 
assembled or unassembled form. Subject merchandise includes tool 
chests and cabinets produced in Vietnam but assembled, prepackaged 
for retail sale, or subject to other minor processing in a third 
country prior to importation into the United States. Similarly, it 
would include tool chests and cabinets produced in Vietnam that are 
later found to be assembled, prepackaged for retail sale, or subject 
to other minor processing after importation into the United States.
    Subject tool chests and cabinets may also have doors and shelves 
in addition to drawers, may have handles (typically mounted on the 
sides), and may have a work surface on the top. Subject tool chests 
and cabinets may be uncoated (e.g., stainless steel), painted, 
powder coated, galvanized, or otherwise coated for corrosion 
protection or aesthetic appearance.
    Subject tool chests and cabinets may be packaged as individual 
units or in sets. When packaged in sets, they typically include a 
cabinet with one or more chests that stack on top of the cabinet. 
Tool cabinets act as a base tool storage unit and typically have 
rollers, casters, or wheels to permit them to be moved more easily 
when loaded with tools. Work stations and mobile work benches are 
tool cabinets with a work surface on the top that may be made of 
rubber, plastic, metal, wood, or other materials.
    Top chests are designed to be used with a tool cabinet to form a 
tool storage unit. The top chests may be mounted on top of the base 
tool cabinet or onto an intermediate chest. They are often packaged 
as a set with tool cabinets or intermediate chests, but may also be 
packaged separately. They may be packaged with mounting hardware 
(e.g., bolts) and instructions for assembling them onto the base 
tool cabinet or onto an intermediate tool chest which rests on the 
base tool cabinet. Smaller top chests typically have handles on the 
sides, while the larger top chests typically lack handles. 
Intermediate tool chests are designed to fit on top of the floor 
standing tool cabinet and to be used underneath the top tool chest. 
Although they may be packaged or used separately from the tool 
cabinet, intermediate chests are designed to be used in conjunction 
with tool cabinets. The intermediate chests typically do not have 
handles. The intermediate and top chests may have the capability of 
being bolted together.
    Side cabinets are designed to be bolted or otherwise attached to 
the side of the base storage cabinet to expand the storage capacity 
of the base tool cabinet.
    Subject tool chests and cabinets also may be packaged with a 
tool set included. Packaging a subject tool chest and cabinet with a 
tool set does not remove an otherwise covered subject tool chest and 
cabinet from the scope. When this occurs, the tools are not part of 
the subject merchandise.
    All tool chests and cabinets that meet the above definition are 
included in the scope unless otherwise specifically excluded.
    Excluded from the scope of the investigation are tool boxes, 
chests, and cabinets with bodies made of plastic, carbon fiber, 
wood, or other non-metallic substances.
    Also excluded from the scope of the investigation are industrial 
grade steel tool chests and cabinets. The excluded industrial grade 
steel tool chests and cabinets are those:
    (1) Having a body that is over 60 inches in width; or
    (2) having each of the following physical characteristics:
    (a) A body made of steel that is 0.047 inches or more in 
thickness;

[[Page 53455]]

    (b) a body depth (front to back) exceeding 21 inches; and
    (c) a unit weight that exceeds the maximum unit weight shown 
below for each width range:
[GRAPHIC] [TIFF OMITTED] TR16NO17.283

    Also excluded from the scope of the investigation are service 
carts. The excluded service carts have all of the following 
characteristics:
    (1) Casters, wheels, or other similar devices which allow the 
service cart to be rolled from place to place;
    (2) a flat top or flat lid on top of the unit that opens;
    (3) a space or gap between the casters, wheels, or other similar 
devices, and the bottom of the enclosed storage space (e.g., 
drawers) of at least 10 inches; and
    (4) a total unit height, including casters, of less than 48 
inches.
    Also excluded from the scope of the investigation are non-mobile 
work benches. The excluded non-mobile work benches have all of the 
following characteristics:
    (1) A solid top working surface;
    (2) no drawers, one drawer, or two drawers in a side-by-side 
configuration; and
    (3) the unit is supported by legs and has no solid front, side, 
or back panels enclosing the body of the unit.
    Also excluded from the scope of this investigation are metal 
filing cabinets that are configured to hold hanging file folders and 
are classified in the Harmonized Tariff Schedule of the United 
States (HTSUS) at subheading 9403.10.0020.
    Merchandise subject to this investigation is classified under 
HTSUS categories 9403.20.0021, 9403.20.0026, 9403.20.0030 and 
7326.90.8688, but may also be classified under HTSUS category 
7326.90.3500. While HTSUS subheadings are provided for convenience 
and Customs purposes, the written description of the scope of this 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Product Characteristics
VI. Selection of Respondents
VII. Affiliation and Single Entity Treatment
VIII. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Surrogate Country
    1. Economic Comparability
    2. Significant Producer of Comparable Merchandise
    3. Data Availability
    C. Surrogate Value Comments
    D. Separate Rates
    E. Combination Rates
    F. The Vietnam-Wide Entity
    G. Application of Facts Available and Adverse Inferences
    1. Use of Facts Available
    2. Application of Facts Available With an Adverse Inference
    3. Selection of the AFA Rate
    H. Date of Sale
    I. Comparisons to Fair Value
    1. Determination of Comparison Method
    2. Results of the Differential Pricing Analysis
    J. U.S. Price
    K. Normal Value
    L. Factor Valuation Methodology
    1. Direct and Packing Materials
    2. Energy
    3. Movement Expenses
    4. Labor
    5. Financial Ratios
    M. Use of Facts Available for Certain Factors of Production
    N. Currency Conversion
IX. Conclusion

[FR Doc. 2017-24862 Filed 11-15-17; 8:45 am]
 BILLING CODE 3510-DS-P