Certain Steel Racks From the People's Republic: Initiation of Countervailing Duty Investigation, 33201-33205 [2018-15224]
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Federal Register / Vol. 83, No. 137 / Tuesday, July 17, 2018 / Notices
Duty Determination and Countervailing Duty
Order, 80 FR 63,745 (October 21, 2017). Also
excluded from the scope of this investigation
are bulk-packed parts or components of
boltless steel shelving units that were
specifically excluded from the scope of the
Boltless Steel Shelving Orders because such
bulk-packed parts or components do not
contain the steel vertical supports (i.e.,
uprights and posts) and steel horizontal
supports (i.e., beams, braces) packaged
together for assembly into a completed
boltless steel shelving unit.
Merchandise covered by this investigation
is currently classified in the Harmonized
Tariff Schedule of the United States (HTSUS)
under the following subheadings:
7326.90.8688, 9403.20.0080, and
9403.90.8041. Subject merchandise may also
enter under subheadings 7308.90.3000,
7308.90.6000, 7308.90.9590, and
9403.20.0090. The HTSUS subheadings are
provided for convenience and U.S. Customs
purposes only. The written description of the
scope is dispositive.
[FR Doc. 2018–15225 Filed 7–16–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–089]
Certain Steel Racks From the People’s
Republic: Initiation of Countervailing
Duty Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable July 10, 2018.
FOR FURTHER INFORMATION CONTACT: Eli
Lovely or Robert Galantucci at (202)
482–1593 or (202) 482–2923,
respectively, AD/CVD Operations,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
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AGENCY:
The Petition
On June 20, 2018, the U.S.
Department of Commerce (Commerce)
received a countervailing duty (CVD)
Petition concerning imports of certain
steel racks (steel racks) from the
People’s Republic of China (China),
filed in proper form on behalf of the
Coalition for Fair Rack Imports (the
petitioner), the members of which are
domestic producers of steel racks.1 The
CVD Petition was accompanied by an
antidumping duty (AD) Petition
1 See the petitioner’s Letter, ‘‘Petitions for the
Imposition of Antidumping Duties and
Countervailing Duties: Steel Racks from the
People’s Republic of China,’’ dated June 20, 2018
(the Petition).
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concerning imports of steel racks from
China.
On June 22, 2018, Commerce
requested supplemental information
pertaining to certain aspects of the
Petition in two separate supplemental
questionnaires, one dealing with CVD
programs and one primarily with scope
clarification issues.2 The petitioner filed
additional information on June 26,
2018.3
On June 28, 2018, Commerce
requested supplemental information
pertaining to industry support and
import statistics.4 The petitioner filed a
response to Commerce’s request on July
2, 2018.5 On July 5, 2018, we spoke with
the petitioner regarding the scope
language submitted in its July 2, 2018,
submission.6 On July 9, 2018, the
petitioner filed an amendment to the
scope, further clarifying the scope
language.7
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), the petitioner alleges that the
Government of China (GOC) is
providing countervailable subsidies,
within the meaning of sections 701 and
771(5) of the Act, to producers of steel
racks in China and that imports of such
products are materially injuring, or
threatening material injury to, the
domestic steel racks industry in the
United States. Consistent with section
702(b)(1) of the Act and 19 CFR
351.202(b), for those alleged programs
on which we are initiating a CVD
investigation, the Petition is
accompanied by information reasonably
available to the petitioner supporting its
allegations.
Commerce finds that the petitioner
filed the Petition on behalf of the
domestic industry because the
petitioner is an interested party as
defined in section 771(9)(E) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
2 See Commerce’s Letters, both titled, ‘‘Petitions
for the Imposition of Antidumping and
Countervailing Duties on Imports of Steel Racks
from the People’s Republic of China: Supplemental
Questions,’’ and both dated June 22, 2018.
3 See the petitioner’s Letters, ‘‘Steel Racks from
the People’s Republic of China: Response to
Supplemental Questions—Countervailing Duties,’’
dated June 26, 2018 (CVD Supplement). See ‘‘Steel
Racks from the People’s Republic of China:
Response to Supplemental Questions—General
Issues,’’ dated June 26, 2018 (General Issues
Supplement).
4 See Memoranda, ‘‘Phone Call with Counsel to
the Petitioner,’’ dated June 28, 2018.
5 See the petitioner’s Letter, ‘‘Steel Racks from the
People’s Republic of China—General Issues,’’ dated
July 2, 2018 (Second General Issues Supplement).
6 See Memorandum, ‘‘Phone Call with Counsel to
the Petitioner,’’ dated July 5, 2018.
7 See the petitioner’s Letter, ‘‘Steel Racks from the
People’s Republic of China: Scope Clarification,’’
dated July 9, 2018 (Revised Scope).
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33201
support necessary for the initiation of
the requested CVD investigation.8
Period of Investigation
Because the Petition was filed on June
20, 2018, the period of investigation is
January 1, 2017, through December
31, 2017.
Scope of the Investigation
The product covered by this
investigation is steel racks from China.
For a full description of the scope of
these investigations, see the Appendix
to this notice.
Scope Comments
During our review of the Petition,
Commerce received proposed scope
language from the petitioner to ensure
that the scope language in the Petition
is an accurate reflection of the products
for which the domestic industry is
seeking relief.9 As a result of petitioner’s
submissions, the scope of the Petition
was modified to clarify the description
of merchandise covered by the Petition.
The description of the merchandise
covered by this initiation, as described
in the Appendix to this notice, reflects
this clarification.
As discussed in the Preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(scope).10 Commerce will consider all
comments received from interested
parties and, if necessary, will consult
with interested parties prior to the
issuance of the preliminary
determination. If scope comments
include factual information,11 all such
factual information should be limited to
public information. To facilitate
preparation of its questionnaires,
Commerce requests that all interested
parties submit such comments by 5:00
p.m. Eastern Time (ET) on July 30, 2018,
which is 20 calendar days from the
signature date of this notice. Any
rebuttal comments, which may include
factual information, must be filed by
5:00 p.m. ET on August 9, 2018, which
is 10 calendar days from the initial
comments deadline.12
Commerce requests that any factual
information parties consider relevant to
the scope of the investigation be
submitted during this period. However,
8 See the ‘‘Determination of Industry Support for
the Petition’’ section, infra.
9 See General Issues Supplement, at 1–9; see also
Revised Scope, at Exhibit 1.
10 See Antidumping Duties; Countervailing
Duties, Final Rule, 62 FR 27296, 27323 (May 19,
1997) (Preamble).
11 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
12 See 19 CFR 351.303(b).
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if a party subsequently finds that
additional factual information
pertaining to the scope of the
investigation may be relevant, the party
may contact Commerce and request
permission to submit the additional
information. All such submissions must
be filed on the records of the concurrent
AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be
filed electronically using Enforcement
and Compliance’s Antidumping Duty
and Countervailing Duty Centralized
Electronic Service System (ACCESS).13
An electronically filed document must
be received successfully in its entirety
by the time and date it is due.
Documents exempted from the
electronic submission requirements
must be filed manually (i.e., in paper
form) with Enforcement and
Compliance’s APO/Dockets Unit, Room
18022, U.S. Department of Commerce,
1401 Constitution Avenue NW,
Washington, DC 20230, and stamped
with the date and time of receipt by the
applicable deadlines.
Consultations
Pursuant to sections 702(b)(4)(A)(i)
and (ii) of the Act, Commerce notified
representatives of the GOC of the receipt
of the Petition and provided them the
opportunity for consultations with
respect to the CVD Petition.14 The GOC
did not request consultations.
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Determination of Industry Support for
the Petition
Section 702(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 702(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 702(c)(4)(D)
13 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011). See also Enforcement and
Compliance: Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014) for details
of Commerce’s electronic filing requirements,
which went into effect on August 5, 2011.
Information on help using ACCESS can be found at
https://access.trade.gov/help.aspx, and a handbook
can be found at https://access.trade.gov/help/
Handbook%20on%20Electronic%20Filling
%20Procedures.pdf.
14 See Commerce’s Letter, ‘‘Countervailing Duty
Petition on Certain Steel Racks from China,’’ dated
June 20, 2018.
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17:07 Jul 16, 2018
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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,
Commerce 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 Commerce 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 Commerce and the
ITC must apply the same statutory
definition regarding the domestic like
product,15 they do so for different
purposes and pursuant to a separate and
distinct authority. In addition,
Commerce’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.16
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, the petitioner does not offer a
definition of the domestic like product
distinct from the scope of the
investigation.17 Based on our analysis of
the information submitted on the
record, we have determined that steel
racks, as defined in the scope, constitute
a single domestic like product, and we
section 771(10) of the Act.
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)).
17 See Volume I of the Petition, at 11–13 and
Exhibit I–9; see also General Issues Supplement, at
9–10.
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15 See
16 See
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have analyzed industry support in terms
of that domestic like product.18
In determining whether the petitioner
has standing under section 702(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 the Appendix to this
notice. To establish industry support,
the petitioner provided its own 2017
shipments of the domestic like product
and compared this to the estimated total
shipments of the domestic like product
for the entire domestic industry.19 The
petitioner explained that it relied on
shipment data because production data
for the entire domestic industry are not
available.20 In addition, the petitioner
contends that shipments are a
reasonable proxy for data on production
of steel racks.21 We relied on data the
petitioner provided for purposes of
measuring industry support.22
In its July 3, 2018, letter, Jiaxing
Zhongda Import & Export Co., Ltd.
(Jiaxing Zhongda), a Chinese exporter/
producer, submitted comments on
industry support and requested that
Commerce poll the industry to
determine industry support.23 The
petitioner responded to these comments
in the Industry Support Supplement,
dated July 3, 2018.24 In a letter dated
July 5, 2018, Guangdong Wireking
Housewares and Hardware Co., Ltd.
(Guangdong Wireking), a Chinese
exporter/producer, submitted comments
on industry support and requested that
18 For a discussion of the domestic like product
analysis as applied to this case and information
regarding industry support, see Countervailing Duty
Investigation Initiation Checklist: Steel Racks from
the People’s Republic of China (China CVD
Initiation Checklist), at Attachment II, Analysis of
Industry Support for the Antidumping and
Countervailing Duty Petitions Covering Steel Racks
from the People’s Republic of China (Attachment
II). This checklist is dated concurrently with this
notice and on file electronically via ACCESS.
Access to documents filed via ACCESS is also
available in the Central Records Unit, Room B8024
of the main Department of Commerce building.
19 See Volume I of the Petition, at 3–5 and
Exhibits I–2 and I–3; see also General Issues
Supplement, at 10–11 and Exhibit 5; see also
Second General Issues Supplement, at 3–4 and
Exhibits 1 and 2.
20 See Volume I of the Petition, at 4–5 and Exhibit
I–2.
21 Id., at 4 and Exhibit I–3; see also Second
General Issues Supplement, at 4.
22 See Volume I of the petition, at 4–5 and Exhibit
I–2; see also General Issues Supplement, at 10–11
and Exhibit 5; see also Second General Issues
Supplement, at 3–4 and Exhibits 1 and 2.
23 See Jiaxing Zhongda’s Letter, ‘‘Steel Racks from
the People’s Republic of China: Pre-Initiation
Industry Support Comments,’’ dated July 3, 2018
(Jiaxing Zhongda Letter).
24 See the petitioner’s Letter, ‘‘Steel Racks from
the People’s Republic of China: Response to
Industry Support Comments,’’ dated July 3, 2018
(Industry Support Supplement).
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Commerce poll the industry to
determine industry support.25 The
petitioner responded to Guangdong
Wireking’s comments on July 6, 2018.26
In a letter dated July 9, 2018, United
Material Handling (UMH), a U.S.
importer of subject merchandise,
submitted comments on industry
support and requested that Commerce
poll the industry to determine industry
support.27 The petitioner responded to
these comments on July 10, 2018.28 For
further discussion of these comments,
see Attachment II of the China CVD
Initiation Checklist.
Our review of the data provided in the
Petition, the General Issues Supplement,
the Second General Issues Supplement,
letters from Jiaxing Zhongda,
Guangdong Wireking, and UMH, the
Industry Support Supplement, the
Second Industry Support Supplement,
the Third Industry Support Supplement,
and other information readily available
to Commerce indicates that the
petitioner has established industry
support for the Petition.29 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, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).30 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product.31 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petition
account for more than 50 percent of the
production of the domestic like product
25 See Guangdong Wireking’s Letter, ‘‘Steel Racks
from the People’s Republic of China: Pre-Initiation
Industry Support Comments,’’ dated July 5, 2018
(Guangdong Wireking Letter).
26 See the petitioner’s Letter, ‘‘Steel Racks from
the People’s Republic of China: Response to
Industry Support Comments,’’ dated July 6, 2018
(Second Industry Support Supplement).
27 See UMH’s Letter, ‘‘Steel Racks from the
People’s Republic of China Pre-Initiation Comments
on Industry Support,’’ dated July 9, 2018 (UMH
Letter).
28 See Petitioner’s Letter, ‘‘Steel Racks from the
People’s Republic of China: Response to Industry
Support Comments,’’ dated July 10, 2018 (Third
Industry Support Supplement).
29 See China CVD Initiation Checklist, at
Attachment II.
30 Id.; see also section 702(c)(4)(D) of the Act.
31 See China CVD Initiation Checklist, at
Attachment II.
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produced by that portion of the industry
expressing support for, or opposition to,
the Petition.32 Accordingly, Commerce
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 702(b)(1) of the
Act.
Commerce finds that the petitioner
filed the Petition on behalf of the
domestic industry because it is an
interested party as defined in section
771(9)(E) of the Act, and it has
demonstrated sufficient industry
support with respect to the CVD
investigation that it is requesting that
Commerce initiate.33
Injury Test
Because China is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Act,
section 701(a)(2) of the Act applies to
this investigation. Accordingly, the ITC
must determine whether imports of the
subject merchandise from China
materially injure, or threaten material
injury to, a U.S. industry.
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that imports of
the subject merchandise are benefitting
from countervailable subsidies and that
such imports are causing, or threaten to
cause, material injury to the U.S.
industry producing the domestic like
product. In addition, the petitioner
alleges that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.34
The petitioner contends that the
industry’s injured condition is
illustrated by a significant and
increasing volume of subject imports;
reduced market share; underselling and
price depression or suppression; lost
sales and lost revenues; decline in
production, quantity of U.S. shipments,
and capacity utilization rate; and
decline in the domestic industry’s
profitability.35 We have assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, and causation, and we
have determined that these allegations
are properly supported by adequate
evidence, and meet the statutory
requirements for initiation.36
32 Id.
33 Id.
34 See Volume I of the Petition, at 17 and Exhibit
I–13.
35 See Volume I of the Petition, at 14–28 and
Exhibits I–3, I–13, and I–15 through I–24; see also
General Issues Supplement at 11–12 and Exhibit 6;
and Second General Issues Supplement, at 4–5.
36 See China Initiation Checklist at Attachment
III, Analysis of Allegations and Evidence of Material
Injury and Causation for the Antidumping and
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33203
Initiation of CVD Investigation
Based on the examination of the
Petition, we find that the Petition meets
the requirements of section 702 of the
Act. Therefore, we are initiating a CVD
investigation to determine whether
imports of steel racks from China benefit
from countervailable subsidies
conferred by the GOC. In accordance
with section 703(b)(1) of the Act and 19
CFR 351.205(b)(1), unless postponed,
we will make our preliminary
determinations no later than 65 days
after the date of this initiation.
Based on our review of the Petition,
we find that there is sufficient
information to initiate a CVD
investigation on 25 of the 28 subsidy
programs alleged in the petition. For a
full discussion of the basis for our
decision to initiate or not on each
program, see China CVD Initiation
Checklist. A public version of the
initiation checklist for this investigation
is available on ACCESS.
Respondent Selection
The petitioner named 93 producers/
exporters as accounting for the majority
of exports of steel racks to the United
States from China.37 In the event
Commerce determines that the number
of companies is large and it cannot
individually examine each company
based upon Commerce’s resources,
where appropriate, Commerce intends
to select mandatory respondents based
on quantity and value (Q&V)
questionnaires issued to potential
respondents. Commerce normally
selects mandatory respondents in a CVD
investigation using U.S. Customs and
Border Protection (CBP) entry data, and
on July 5, 2018, we released CBP data
under Administrative Protective Order
(APO) to all parties with access to
information protected by APO and
indicated that interested parties wishing
to comment regarding the CBP data and
respondent selection must do so within
three business days of the publication
date of the notice of initiation of this
CVD investigation.38 However, for this
investigation, the Harmonized Tariff
Schedule of the United States (HTSUS)
numbers of the subject merchandise
would enter under (7326.90.8688,
9403.20.0080, and 9403.90.8041) are
basket categories containing products
unrelated to steel racks, and much of the
reported entry data do not contain
Countervailing Duty Petitions Covering Steel Racks
from the People’s Republic of China.
37 See Volume I of the Petition, at Exhibit I–6; see
also General Issues Supplement, at 1 and Exhibit 1.
38 See Memorandum, ‘‘Steel Racks from the
People’s Republic of China Countervailing Duty
Petition: Release of Customs Data from U.S.
Customs and Border Protection,’’ dated July 5, 2018.
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quantity information. We, therefore,
cannot rely on CBP entry data in
selecting respondents. We instead
intend to issue Q&V questionnaires to
each potential respondent, for which the
petitioner has provided a complete
address, that is: (1) Named in the
Petition, and (2) appears in the CBP
entry data, and base respondent
selection on the responses received.
Commerce will post the Q&V
questionnaire along with the filing
instructions on the Enforcement and
Compliance website at https://trade.gov/
enforcement/news.asp.
Exporters and producers of steel racks
from China that do not receive Q&V
questionnaires by mail may still submit
a response to the Q&V questionnaire
and can obtain a copy of the Q&V
questionnaire from the Enforcement and
Compliance website. The Q&V
questionnaire must be submitted by the
relevant Chinese exporters/producers no
later than 5:00 p.m. ET on July 24, 2018,
which is two weeks from the signature
date of this notice. All Q&V responses
must be filed electronically via
ACCESS.
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 Commerce’s
website at https://enforcement.trade.gov/
apo.
Comments must be filed
electronically using ACCESS. An
electronically filed document must be
received successfully, in its entirety, by
ACCESS no later than 5:00 p.m. ET on
the date noted above. We intend to
finalize our decisions regarding
respondent selection within 20 days of
publication of this notice.
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Distribution of Copies of the Petition
In accordance with section
702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), copies of the public versions
of the Petition have been provided to
the GOC via ACCESS. To the extent
practicable, we will attempt to provide
a copy of the public version of the
Petition to each exporter named in the
Petitions, as provided under 19 CFR
351.203(c)(2).
ITC Notification
We will notify the ITC of our
initiation, as required by section 702(d)
of the Act.
Preliminary Determinations 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
steel racks from China are materially
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injuring, or threatening material injury
to, a U.S. industry.39 A negative ITC
determination will result in the
investigation being terminated.40
Otherwise, this investigation will
proceed according to statutory and
regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (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 Commerce; and (v)
evidence other than factual information
described in (i)–(iv). 19 CFR 351.301(b)
requires any party, when submitting
factual information, to specify under
which subsection of 19 CFR
351.102(b)(21) the information is being
submitted 41 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.42 Time
limits for the submission of factual
information are addressed in 19 CFR
351.301, which provides specific time
limits based on the type of factual
information being submitted. Interested
parties should review the regulations
prior to submitting factual information
in these investigations.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301, or as otherwise specified by the
Secretary. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351.301.
For submissions that are due from
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. ET
on the due date. Under certain
circumstances, we 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, we will inform parties in
the letter or memorandum setting forth
the deadline (including a specified time)
by which extension requests must be
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39 See
section 703(a)(2) of the Act.
section 703(a)(1) of the Act.
41 See 19 CFR 351.301(b).
42 See 19 CFR 351.301(b)(2).
40 See
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filed to be considered timely. An
extension request must be made in a
separate, stand-alone submission; under
limited circumstances we will grant
untimely-filed requests for the extension
of time limits. Parties should review
Extension of Time Limits; Final Rule, 78
FR 57790 (September 20, 2013),
available at https://www.gpo.gov/fdsys/
pkg/FR-2013-09-20/html/201322853.htm, prior to submitting factual
information in these investigations.
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.43
Parties must use the certification
formats provided in 19 CFR
351.303(g).44 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305. On
January 22, 2008, Commerce published
Antidumping and Countervailing Duty
Proceedings: Documents Submission
Procedures; APO Procedures, 73 FR
3634 (January 22, 2008). Parties wishing
to participate in this investigation
should ensure that they meet the
requirements of these procedures (e.g.,
the filing of letters of appearance as
discussed at 19 CFR 351.103(d)).
This notice is issued and published
pursuant to sections 702 and 777(i) of
the Act and 19 CFR 351.203(c).
Dated: July 10, 2018.
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
Scope of the Investigation
The merchandise covered by this
investigation is steel racks and parts thereof,
assembled, to any extent, or unassembled,
including but not limited to, vertical
components (e.g., uprights, posts, or
columns), horizontal or diagonal components
(e.g., arms or beams), braces, frames, locking
devices (i.e., end plates and beam
connectors), and accessories (including, but
43 See
section 782(b) of the Act.
Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (‘‘Final Rule’’); see also frequently asked
questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
44 See
E:\FR\FM\17JYN1.SGM
17JYN1
daltland on DSKBBV9HB2PROD with NOTICES
Federal Register / Vol. 83, No. 137 / Tuesday, July 17, 2018 / Notices
not limited to, rails, skid channels, skid rails,
drum/coil beds, fork clearance bars, pallet
supports, column and post protectors, end
row and end aisle protectors, corner guards,
row spacers, and wall ties). Subject steel
racks and parts thereof are made of steel,
including, but not limited to, cold and/or
hot-formed steel, regardless of the type of
steel used to produce the components and
may, or may not, include locking tabs, slots,
or bolted, clamped, or welded connections.
Steel rack components can be assembled
into structures of various dimensions and
configurations by welding, bolting, clipping,
or with the use of devices such as clips, end
plates, and beam connectors, including, but
not limited to the following configurations:
(1) Racks with upright frames perpendicular
to the aisles that are independently
adjustable, with positive locking beams
parallel to the aisle spanning the upright
frames with braces; and (2) cantilever racks
with vertical components parallel to the aisle
and cantilever beams or arms connected to
the vertical components perpendicular to the
aisle. Steel racks may be referred to as pallet
racks, storage racks, stacker racks, retail
racks, pick modules, selective racks, or
cantilever racks and may incorporate moving
components and be referred to as pallet-flow
racks, carton-flow racks, push-back racks,
movable-shelf racks, drive-in racks, and
drive-through racks. While steel racks may be
made to ANSI MH16.l or ANSI MH16.3
standards, all steel racks and parts thereof
meeting the description set out herein are
covered by the scope of this investigation,
whether or not produced according to a
particular standard.
The scope includes all steel racks and parts
thereof meeting the description above,
regardless of
(1) Dimensions, weight, strength, gauge, or
load rating;
(2) vertical components or frame type
(including structural, roll-form, or other);
(3) horizontal support or beam/brace type
(including but not limited to structural, rollform, slotted, unslotted, Z-beam, C-beam,
L-beam, step beam, and cantilever beam);
(4) number of supports;
(5) number of levels;
(6) surface coating, if any (including but
not limited to paint, epoxy, powder coating,
zinc, or other metallic coatings);
(7) shape (including but not limited to
rectangular, square, corner, and cantilever);
(8) the method by which the vertical and
horizontal supports connect (including but
not limited to locking tabs or slots, bolting,
clamping, and welding); and
(9) whether or not the steel rack has
moving components (including but not
limited to rails, wheels, rollers, tracks,
channels, carts, and conveyors).
Subject merchandise includes merchandise
matching the above description that has been
finished or packaged in a third country.
Finishing includes, but is not limited to,
coating, painting, or assembly, including
attaching the merchandise to another
product, or any other finishing or assembly
operation that would not remove the
merchandise from the scope of the
investigation if performed in the country of
manufacture of the steel racks and parts
VerDate Sep<11>2014
17:07 Jul 16, 2018
Jkt 244001
thereof. Packaging includes packaging the
merchandise with or without another
product or any other packaging operation
that would not remove the merchandise from
the scope of the investigation if performed in
the country of manufacture of the steel racks
and parts thereof.
Steel racks and parts thereof are included
in the scope of this investigation whether or
not imported attached to, or included with,
other parts or accessories such as wire
decking, nuts, and bolts. If steel racks and
parts thereof are imported attached to, or
included with, such non-subject
merchandise, only the steel racks and parts
thereof are included in the scope.
The scope of this investigation does not
cover: (1) Decks, i.e., shelving that sits on or
fits into the horizontal supports to provide
the horizontal storage surface of the steel
racks; (2) wire shelving units, i.e., shelves
made from wire that incorporate both a wire
deck and wire horizontal supports (taking the
place of the horizontal beams and braces)
into a single piece with tubular collars that
slide over the posts and onto plastic sleeves
snapped on the posts to create a finished
unit; (3) pins, nuts, bolts, washers, and clips
used as connecting devices; and (4) non-steel
components.
Specifically excluded from the scope of
this investigation are any products covered
by Commerce’s existing antidumping and
countervailing duty orders on boltless steel
shelving units prepackaged for sale from the
People’s Republic of China. See Boltless Steel
Shelving Units Prepackaged for Sale From
the People’s Republic of China: Antidumping
Duty Order, 80 FR 63,741 (October 21, 2017);
Boltless Steel Shelving Units Prepackaged for
Sale From the People’s Republic of China:
Amended Final Affirmative Countervailing
Duty Determination and Countervailing Duty
Order, 80 FR 63,745 (October 21, 2017). Also
excluded from the scope of this investigation
are bulk-packed parts or components of
boltless steel shelving units that were
specifically excluded from the scope of the
Boltless Steel Shelving Orders because such
bulk-packed parts or components do not
contain the steel vertical supports (i.e.,
uprights and posts) and steel horizontal
supports (i.e., beams, braces) packaged
together for assembly into a completed
boltless steel shelving unit.
Merchandise covered by this investigation
is currently classified in the Harmonized
Tariff Schedule of the United States (HTSUS)
under the following subheadings:
7326.90.8688, 9403.20.0080, and
9403.90.8041. Subject merchandise may also
enter under subheadings 7308.90.3000,
7308.90.6000, 7308.90.9590, and
9403.20.0090. The HTSUS subheadings are
provided for convenience and U.S. Customs
purposes only. The written description of the
scope is dispositive.
[FR Doc. 2018–15224 Filed 7–16–18; 8:45 am]
BILLING CODE 3510–DS–P
PO 00000
Frm 00014
Fmt 4703
33205
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–062]
Cast Iron Soil Pipe Fittings From the
People’s Republic of China: Final
Affirmative Determination of Sales at
Less Than Fair Value and Final
Determination of Critical
Circumstances, in Part
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that cast iron
soil pipe fittings from the People’s
Republic of China (China) are being, or
are likely to be, sold in the United States
at less than fair value (LTFV). The
period of investigation is January 1,
2017, through June 30, 2017.
DATES: Applicable July 17, 2018.
FOR FURTHER INFORMATION CONTACT:
Sergio Balbontin or Denisa Ursu, AD/
CVD Operations, Office VIII,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–6478
and (202) 482–2285 respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On February 20, 2018, Commerce
published in the Federal Register the
Preliminary Determination in the LTFV
investigation of cast iron soil pipe
fittings from China.1 The mandatory
respondents in this investigation are
Shanxi Xuanshi Industrial Group Co.
Ltd. (Xuanshi), Wor-Biz International
Trading Co., Ltd. (Anhui) (Wor-Biz),
Sibo International Limited (Sibo), and
Kingway Pipe Co., Ltd. (Kingway).
Commerce exercised its discretion to
toll all deadlines affected by the closure
of the Federal Government from January
20 through 22, 2018. If the new deadline
falls on a non-business day, in
accordance with Commerce’s practice,
the deadline will become the next
business day. The revised deadline for
the final determination of this
investigation is now July 5, 2018.2
1 See Cast Iron Soil Pipe Fittings from the People’s
Republic of China: Preliminary Affirmative
Determination of Sales at Less Than Fair Value,
Preliminary Affirmative Determination of Critical
Circumstances, in Part, Postponement of Final
Determination and Extension of Provisional
Measures, 83 FR 7145 (February 20, 2018)
(Preliminary Determination) and accompanying
Preliminary Decision Memorandum.
2 See Memorandum for The Record from
Christian Marsh, Deputy Assistant Secretary for
Continued
Sfmt 4703
E:\FR\FM\17JYN1.SGM
17JYN1
]]>Agencies
[Federal Register Volume 83, Number 137 (Tuesday, July 17, 2018)]
[Notices]
[Pages 33201-33205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15224]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-089]
Certain Steel Racks From the People's Republic: Initiation of
Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable July 10, 2018.
FOR FURTHER INFORMATION CONTACT: Eli Lovely or Robert Galantucci at
(202) 482-1593 or (202) 482-2923, respectively, AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230.
SUPPLEMENTARY INFORMATION:
The Petition
On June 20, 2018, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) Petition concerning imports of
certain steel racks (steel racks) from the People's Republic of China
(China), filed in proper form on behalf of the Coalition for Fair Rack
Imports (the petitioner), the members of which are domestic producers
of steel racks.\1\ The CVD Petition was accompanied by an antidumping
duty (AD) Petition concerning imports of steel racks from China.
---------------------------------------------------------------------------
\1\ See the petitioner's Letter, ``Petitions for the Imposition
of Antidumping Duties and Countervailing Duties: Steel Racks from
the People's Republic of China,'' dated June 20, 2018 (the
Petition).
---------------------------------------------------------------------------
On June 22, 2018, Commerce requested supplemental information
pertaining to certain aspects of the Petition in two separate
supplemental questionnaires, one dealing with CVD programs and one
primarily with scope clarification issues.\2\ The petitioner filed
additional information on June 26, 2018.\3\
---------------------------------------------------------------------------
\2\ See Commerce's Letters, both titled, ``Petitions for the
Imposition of Antidumping and Countervailing Duties on Imports of
Steel Racks from the People's Republic of China: Supplemental
Questions,'' and both dated June 22, 2018.
\3\ See the petitioner's Letters, ``Steel Racks from the
People's Republic of China: Response to Supplemental Questions--
Countervailing Duties,'' dated June 26, 2018 (CVD Supplement). See
``Steel Racks from the People's Republic of China: Response to
Supplemental Questions--General Issues,'' dated June 26, 2018
(General Issues Supplement).
---------------------------------------------------------------------------
On June 28, 2018, Commerce requested supplemental information
pertaining to industry support and import statistics.\4\ The petitioner
filed a response to Commerce's request on July 2, 2018.\5\ On July 5,
2018, we spoke with the petitioner regarding the scope language
submitted in its July 2, 2018, submission.\6\ On July 9, 2018, the
petitioner filed an amendment to the scope, further clarifying the
scope language.\7\
---------------------------------------------------------------------------
\4\ See Memoranda, ``Phone Call with Counsel to the
Petitioner,'' dated June 28, 2018.
\5\ See the petitioner's Letter, ``Steel Racks from the People's
Republic of China--General Issues,'' dated July 2, 2018 (Second
General Issues Supplement).
\6\ See Memorandum, ``Phone Call with Counsel to the
Petitioner,'' dated July 5, 2018.
\7\ See the petitioner's Letter, ``Steel Racks from the People's
Republic of China: Scope Clarification,'' dated July 9, 2018
(Revised Scope).
---------------------------------------------------------------------------
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of China
(GOC) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of steel racks in
China and that imports of such products are materially injuring, or
threatening material injury to, the domestic steel racks industry in
the United States. Consistent with section 702(b)(1) of the Act and 19
CFR 351.202(b), for those alleged programs on which we are initiating a
CVD investigation, the Petition is accompanied by information
reasonably available to the petitioner supporting its allegations.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry because the petitioner is an interested party as
defined in section 771(9)(E) of the Act. Commerce also finds that the
petitioner demonstrated sufficient industry support necessary for the
initiation of the requested CVD investigation.\8\
---------------------------------------------------------------------------
\8\ See the ``Determination of Industry Support for the
Petition'' section, infra.
---------------------------------------------------------------------------
Period of Investigation
Because the Petition was filed on June 20, 2018, the period of
investigation is
January 1, 2017, through December 31, 2017.
Scope of the Investigation
The product covered by this investigation is steel racks from
China. For a full description of the scope of these investigations, see
the Appendix to this notice.
Scope Comments
During our review of the Petition, Commerce received proposed scope
language from the petitioner to ensure that the scope language in the
Petition is an accurate reflection of the products for which the
domestic industry is seeking relief.\9\ As a result of petitioner's
submissions, the scope of the Petition was modified to clarify the
description of merchandise covered by the Petition. The description of
the merchandise covered by this initiation, as described in the
Appendix to this notice, reflects this clarification.
---------------------------------------------------------------------------
\9\ See General Issues Supplement, at 1-9; see also Revised
Scope, at Exhibit 1.
---------------------------------------------------------------------------
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (scope).\10\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information,\11\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit such comments by 5:00 p.m. Eastern Time
(ET) on July 30, 2018, which is 20 calendar days from the signature
date of this notice. Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on August 9, 2018, which is
10 calendar days from the initial comments deadline.\12\
---------------------------------------------------------------------------
\10\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\11\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\12\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------
Commerce requests that any factual information parties consider
relevant to the scope of the investigation be submitted during this
period. However,
[[Page 33202]]
if a party subsequently finds that additional factual information
pertaining to the scope of the investigation may be relevant, the party
may contact Commerce and request permission to submit the additional
information. All such submissions must be filed on the records of the
concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\13\ An electronically
filed document must be received successfully in its entirety by the
time and date it is due. Documents exempted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230, and stamped with the date and time of receipt by the applicable
deadlines.
---------------------------------------------------------------------------
\13\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011). See also Enforcement and
Compliance: Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, which went into effect on August 5, 2011. Information
on help using ACCESS can be found at https://access.trade.gov/help.aspx, and a handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------
Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified representatives of the GOC of the receipt of the Petition and
provided them the opportunity for consultations with respect to the CVD
Petition.\14\ The GOC did not request consultations.
---------------------------------------------------------------------------
\14\ See Commerce's Letter, ``Countervailing Duty Petition on
Certain Steel Racks from China,'' dated June 20, 2018.
---------------------------------------------------------------------------
Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce 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 Commerce 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 Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\15\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce'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.\16\
---------------------------------------------------------------------------
\15\ See section 771(10) of the Act.
\16\ 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
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\17\ Based on our analysis of the information
submitted on the record, we have determined that steel racks, as
defined in the scope, constitute a single domestic like product, and we
have analyzed industry support in terms of that domestic like
product.\18\
---------------------------------------------------------------------------
\17\ See Volume I of the Petition, at 11-13 and Exhibit I-9; see
also General Issues Supplement, at 9-10.
\18\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Countervailing Duty Investigation Initiation Checklist: Steel Racks
from the People's Republic of China (China CVD Initiation
Checklist), at Attachment II, Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions Covering Steel Racks
from the People's Republic of China (Attachment II). This checklist
is dated concurrently with this notice and on file electronically
via ACCESS. Access to documents filed via ACCESS is also available
in the Central Records Unit, Room B8024 of the main Department of
Commerce building.
---------------------------------------------------------------------------
In determining whether the petitioner has standing under section
702(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 the Appendix to
this notice. To establish industry support, the petitioner provided its
own 2017 shipments of the domestic like product and compared this to
the estimated total shipments of the domestic like product for the
entire domestic industry.\19\ The petitioner explained that it relied
on shipment data because production data for the entire domestic
industry are not available.\20\ In addition, the petitioner contends
that shipments are a reasonable proxy for data on production of steel
racks.\21\ We relied on data the petitioner provided for purposes of
measuring industry support.\22\
---------------------------------------------------------------------------
\19\ See Volume I of the Petition, at 3-5 and Exhibits I-2 and
I-3; see also General Issues Supplement, at 10-11 and Exhibit 5; see
also Second General Issues Supplement, at 3-4 and Exhibits 1 and 2.
\20\ See Volume I of the Petition, at 4-5 and Exhibit I-2.
\21\ Id., at 4 and Exhibit I-3; see also Second General Issues
Supplement, at 4.
\22\ See Volume I of the petition, at 4-5 and Exhibit I-2; see
also General Issues Supplement, at 10-11 and Exhibit 5; see also
Second General Issues Supplement, at 3-4 and Exhibits 1 and 2.
---------------------------------------------------------------------------
In its July 3, 2018, letter, Jiaxing Zhongda Import & Export Co.,
Ltd. (Jiaxing Zhongda), a Chinese exporter/producer, submitted comments
on industry support and requested that Commerce poll the industry to
determine industry support.\23\ The petitioner responded to these
comments in the Industry Support Supplement, dated July 3, 2018.\24\ In
a letter dated July 5, 2018, Guangdong Wireking Housewares and Hardware
Co., Ltd. (Guangdong Wireking), a Chinese exporter/producer, submitted
comments on industry support and requested that
[[Page 33203]]
Commerce poll the industry to determine industry support.\25\ The
petitioner responded to Guangdong Wireking's comments on July 6,
2018.\26\ In a letter dated July 9, 2018, United Material Handling
(UMH), a U.S. importer of subject merchandise, submitted comments on
industry support and requested that Commerce poll the industry to
determine industry support.\27\ The petitioner responded to these
comments on July 10, 2018.\28\ For further discussion of these
comments, see Attachment II of the China CVD Initiation Checklist.
---------------------------------------------------------------------------
\23\ See Jiaxing Zhongda's Letter, ``Steel Racks from the
People's Republic of China: Pre-Initiation Industry Support
Comments,'' dated July 3, 2018 (Jiaxing Zhongda Letter).
\24\ See the petitioner's Letter, ``Steel Racks from the
People's Republic of China: Response to Industry Support Comments,''
dated July 3, 2018 (Industry Support Supplement).
\25\ See Guangdong Wireking's Letter, ``Steel Racks from the
People's Republic of China: Pre-Initiation Industry Support
Comments,'' dated July 5, 2018 (Guangdong Wireking Letter).
\26\ See the petitioner's Letter, ``Steel Racks from the
People's Republic of China: Response to Industry Support Comments,''
dated July 6, 2018 (Second Industry Support Supplement).
\27\ See UMH's Letter, ``Steel Racks from the People's Republic
of China Pre-Initiation Comments on Industry Support,'' dated July
9, 2018 (UMH Letter).
\28\ See Petitioner's Letter, ``Steel Racks from the People's
Republic of China: Response to Industry Support Comments,'' dated
July 10, 2018 (Third Industry Support Supplement).
---------------------------------------------------------------------------
Our review of the data provided in the Petition, the General Issues
Supplement, the Second General Issues Supplement, letters from Jiaxing
Zhongda, Guangdong Wireking, and UMH, the Industry Support Supplement,
the Second Industry Support Supplement, the Third Industry Support
Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\29\ 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, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\30\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
702(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\31\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 702(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition account for more than
50 percent of the production of the domestic like product produced by
that portion of the industry expressing support for, or opposition to,
the Petition.\32\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.
---------------------------------------------------------------------------
\29\ See China CVD Initiation Checklist, at Attachment II.
\30\ Id.; see also section 702(c)(4)(D) of the Act.
\31\ See China CVD Initiation Checklist, at Attachment II.
\32\ Id.
---------------------------------------------------------------------------
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry because it is an interested party as defined in
section 771(9)(E) of the Act, and it has demonstrated sufficient
industry support with respect to the CVD investigation that it is
requesting that Commerce initiate.\33\
---------------------------------------------------------------------------
\33\ Id.
---------------------------------------------------------------------------
Injury Test
Because China is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from China materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, the petitioner
alleges that subject imports exceed the negligibility threshold
provided for under section 771(24)(A) of the Act.\34\
---------------------------------------------------------------------------
\34\ See Volume I of the Petition, at 17 and Exhibit I-13.
---------------------------------------------------------------------------
The petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share; underselling and price depression or suppression;
lost sales and lost revenues; decline in production, quantity of U.S.
shipments, and capacity utilization rate; and decline in the domestic
industry's profitability.\35\ We have assessed the allegations and
supporting evidence regarding material injury, threat of material
injury, and causation, and we have determined that these allegations
are properly supported by adequate evidence, and meet the statutory
requirements for initiation.\36\
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\35\ See Volume I of the Petition, at 14-28 and Exhibits I-3, I-
13, and I-15 through I-24; see also General Issues Supplement at 11-
12 and Exhibit 6; and Second General Issues Supplement, at 4-5.
\36\ See China Initiation Checklist at Attachment III, Analysis
of Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering Steel Racks
from the People's Republic of China.
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Initiation of CVD Investigation
Based on the examination of the Petition, we find that the Petition
meets the requirements of section 702 of the Act. Therefore, we are
initiating a CVD investigation to determine whether imports of steel
racks from China benefit from countervailable subsidies conferred by
the GOC. In accordance with section 703(b)(1) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determinations no later than 65 days after the date of this initiation.
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation on 25 of the 28
subsidy programs alleged in the petition. For a full discussion of the
basis for our decision to initiate or not on each program, see China
CVD Initiation Checklist. A public version of the initiation checklist
for this investigation is available on ACCESS.
Respondent Selection
The petitioner named 93 producers/exporters as accounting for the
majority of exports of steel racks to the United States from China.\37\
In the event Commerce determines that the number of companies is large
and it cannot individually examine each company based upon Commerce's
resources, where appropriate, Commerce intends to select mandatory
respondents based on quantity and value (Q&V) questionnaires issued to
potential respondents. Commerce normally selects mandatory respondents
in a CVD investigation using U.S. Customs and Border Protection (CBP)
entry data, and on July 5, 2018, we released CBP data under
Administrative Protective Order (APO) to all parties with access to
information protected by APO and indicated that interested parties
wishing to comment regarding the CBP data and respondent selection must
do so within three business days of the publication date of the notice
of initiation of this CVD investigation.\38\ However, for this
investigation, the Harmonized Tariff Schedule of the United States
(HTSUS) numbers of the subject merchandise would enter under
(7326.90.8688, 9403.20.0080, and 9403.90.8041) are basket categories
containing products unrelated to steel racks, and much of the reported
entry data do not contain
[[Page 33204]]
quantity information. We, therefore, cannot rely on CBP entry data in
selecting respondents. We instead intend to issue Q&V questionnaires to
each potential respondent, for which the petitioner has provided a
complete address, that is: (1) Named in the Petition, and (2) appears
in the CBP entry data, and base respondent selection on the responses
received. Commerce will post the Q&V questionnaire along with the
filing instructions on the Enforcement and Compliance website at https://trade.gov/enforcement/news.asp.
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\37\ See Volume I of the Petition, at Exhibit I-6; see also
General Issues Supplement, at 1 and Exhibit 1.
\38\ See Memorandum, ``Steel Racks from the People's Republic of
China Countervailing Duty Petition: Release of Customs Data from
U.S. Customs and Border Protection,'' dated July 5, 2018.
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Exporters and producers of steel racks from China that do not
receive Q&V questionnaires by mail may still submit a response to the
Q&V questionnaire and can obtain a copy of the Q&V questionnaire from
the Enforcement and Compliance website. The Q&V questionnaire must be
submitted by the relevant Chinese exporters/producers no later than
5:00 p.m. ET on July 24, 2018, which is two weeks from the signature
date of this notice. All Q&V responses must be filed electronically via
ACCESS.
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 Commerce's website at https://enforcement.trade.gov/apo.
Comments must be filed electronically using ACCESS. An
electronically filed document must be received successfully, in its
entirety, by ACCESS no later than 5:00 p.m. ET on the date noted above.
We intend to finalize our decisions regarding respondent selection
within 20 days of publication of this notice.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), copies of the public versions of the Petition have been
provided to the GOC via ACCESS. To the extent practicable, we will
attempt to provide a copy of the public version of the Petition to each
exporter named in the Petitions, as provided under 19 CFR
351.203(c)(2).
ITC Notification
We will notify the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determinations 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 steel racks from China are materially
injuring, or threatening material injury to, a U.S. industry.\39\ A
negative ITC determination will result in the investigation being
terminated.\40\ Otherwise, this investigation will proceed according to
statutory and regulatory time limits.
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\39\ See section 703(a)(2) of the Act.
\40\ See section 703(a)(1) of the Act.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (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 Commerce; and (v) evidence other than factual
information described in (i)-(iv). 19 CFR 351.301(b) requires any
party, when submitting factual information, to specify under which
subsection of 19 CFR 351.102(b)(21) the information is being submitted
\41\ 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.\42\ Time limits for
the submission of factual information are addressed in 19 CFR 351.301,
which provides specific time limits based on the type of factual
information being submitted. Interested parties should review the
regulations prior to submitting factual information in these
investigations.
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\41\ See 19 CFR 351.301(b).
\42\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351.301. For submissions that are
due from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we 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, we 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. An extension request
must be made in a separate, stand-alone submission; under limited
circumstances we will grant untimely-filed requests for the extension
of time limits. Parties should review Extension of Time Limits; Final
Rule, 78 FR 57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to
submitting factual information in these investigations.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\43\
Parties must use the certification formats provided in 19 CFR
351.303(g).\44\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\43\ See section 782(b) of the Act.
\44\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (``Final Rule''); see also
frequently asked questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce
published Antidumping and Countervailing Duty Proceedings: Documents
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008).
Parties wishing to participate in this investigation should ensure that
they meet the requirements of these procedures (e.g., the filing of
letters of appearance as discussed at 19 CFR 351.103(d)).
This notice is issued and published pursuant to sections 702 and
777(i) of the Act and 19 CFR 351.203(c).
Dated: July 10, 2018.
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
Scope of the Investigation
The merchandise covered by this investigation is steel racks and
parts thereof, assembled, to any extent, or unassembled, including
but not limited to, vertical components (e.g., uprights, posts, or
columns), horizontal or diagonal components (e.g., arms or beams),
braces, frames, locking devices (i.e., end plates and beam
connectors), and accessories (including, but
[[Page 33205]]
not limited to, rails, skid channels, skid rails, drum/coil beds,
fork clearance bars, pallet supports, column and post protectors,
end row and end aisle protectors, corner guards, row spacers, and
wall ties). Subject steel racks and parts thereof are made of steel,
including, but not limited to, cold and/or hot-formed steel,
regardless of the type of steel used to produce the components and
may, or may not, include locking tabs, slots, or bolted, clamped, or
welded connections.
Steel rack components can be assembled into structures of
various dimensions and configurations by welding, bolting, clipping,
or with the use of devices such as clips, end plates, and beam
connectors, including, but not limited to the following
configurations: (1) Racks with upright frames perpendicular to the
aisles that are independently adjustable, with positive locking
beams parallel to the aisle spanning the upright frames with braces;
and (2) cantilever racks with vertical components parallel to the
aisle and cantilever beams or arms connected to the vertical
components perpendicular to the aisle. Steel racks may be referred
to as pallet racks, storage racks, stacker racks, retail racks, pick
modules, selective racks, or cantilever racks and may incorporate
moving components and be referred to as pallet-flow racks, carton-
flow racks, push-back racks, movable-shelf racks, drive-in racks,
and drive-through racks. While steel racks may be made to ANSI
MH16.l or ANSI MH16.3 standards, all steel racks and parts thereof
meeting the description set out herein are covered by the scope of
this investigation, whether or not produced according to a
particular standard.
The scope includes all steel racks and parts thereof meeting the
description above, regardless of
(1) Dimensions, weight, strength, gauge, or load rating;
(2) vertical components or frame type (including structural,
roll-form, or other);
(3) horizontal support or beam/brace type (including but not
limited to structural, roll-form, slotted, unslotted, Z-beam, C-
beam, L-beam, step beam, and cantilever beam);
(4) number of supports;
(5) number of levels;
(6) surface coating, if any (including but not limited to paint,
epoxy, powder coating, zinc, or other metallic coatings);
(7) shape (including but not limited to rectangular, square,
corner, and cantilever);
(8) the method by which the vertical and horizontal supports
connect (including but not limited to locking tabs or slots,
bolting, clamping, and welding); and
(9) whether or not the steel rack has moving components
(including but not limited to rails, wheels, rollers, tracks,
channels, carts, and conveyors).
Subject merchandise includes merchandise matching the above
description that has been finished or packaged in a third country.
Finishing includes, but is not limited to, coating, painting, or
assembly, including attaching the merchandise to another product, or
any other finishing or assembly operation that would not remove the
merchandise from the scope of the investigation if performed in the
country of manufacture of the steel racks and parts thereof.
Packaging includes packaging the merchandise with or without another
product or any other packaging operation that would not remove the
merchandise from the scope of the investigation if performed in the
country of manufacture of the steel racks and parts thereof.
Steel racks and parts thereof are included in the scope of this
investigation whether or not imported attached to, or included with,
other parts or accessories such as wire decking, nuts, and bolts. If
steel racks and parts thereof are imported attached to, or included
with, such non-subject merchandise, only the steel racks and parts
thereof are included in the scope.
The scope of this investigation does not cover: (1) Decks, i.e.,
shelving that sits on or fits into the horizontal supports to
provide the horizontal storage surface of the steel racks; (2) wire
shelving units, i.e., shelves made from wire that incorporate both a
wire deck and wire horizontal supports (taking the place of the
horizontal beams and braces) into a single piece with tubular
collars that slide over the posts and onto plastic sleeves snapped
on the posts to create a finished unit; (3) pins, nuts, bolts,
washers, and clips used as connecting devices; and (4) non-steel
components.
Specifically excluded from the scope of this investigation are
any products covered by Commerce's existing antidumping and
countervailing duty orders on boltless steel shelving units
prepackaged for sale from the People's Republic of China. See
Boltless Steel Shelving Units Prepackaged for Sale From the People's
Republic of China: Antidumping Duty Order, 80 FR 63,741 (October 21,
2017); Boltless Steel Shelving Units Prepackaged for Sale From the
People's Republic of China: Amended Final Affirmative Countervailing
Duty Determination and Countervailing Duty Order, 80 FR 63,745
(October 21, 2017). Also excluded from the scope of this
investigation are bulk-packed parts or components of boltless steel
shelving units that were specifically excluded from the scope of the
Boltless Steel Shelving Orders because such bulk-packed parts or
components do not contain the steel vertical supports (i.e.,
uprights and posts) and steel horizontal supports (i.e., beams,
braces) packaged together for assembly into a completed boltless
steel shelving unit.
Merchandise covered by this investigation is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under the following subheadings: 7326.90.8688, 9403.20.0080,
and 9403.90.8041. Subject merchandise may also enter under
subheadings 7308.90.3000, 7308.90.6000, 7308.90.9590, and
9403.20.0090. The HTSUS subheadings are provided for convenience and
U.S. Customs purposes only. The written description of the scope is
dispositive.
[FR Doc. 2018-15224 Filed 7-16-18; 8:45 am]
BILLING CODE 3510-DS-P
