Certain Steel Racks From the People's Republic: Initiation of Countervailing Duty Investigation, 33201-33205 [2018-15224]

Download as PDF 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: daltland on DSKBBV9HB2PROD with NOTICES 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). VerDate Sep<11>2014 17:07 Jul 16, 2018 Jkt 244001 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). PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 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). E:\FR\FM\17JYN1.SGM 17JYN1 33202 Federal Register / Vol. 83, No. 137 / Tuesday, July 17, 2018 / Notices 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. daltland on DSKBBV9HB2PROD with NOTICES 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. VerDate Sep<11>2014 17:07 Jul 16, 2018 Jkt 244001 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. PO 00000 15 See 16 See Frm 00011 Fmt 4703 Sfmt 4703 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). E:\FR\FM\17JYN1.SGM 17JYN1 Federal Register / Vol. 83, No. 137 / Tuesday, July 17, 2018 / Notices daltland on DSKBBV9HB2PROD with NOTICES 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. VerDate Sep<11>2014 17:07 Jul 16, 2018 Jkt 244001 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 PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 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. E:\FR\FM\17JYN1.SGM 17JYN1 33204 Federal Register / Vol. 83, No. 137 / Tuesday, July 17, 2018 / Notices 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 http://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 http://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. daltland on DSKBBV9HB2PROD with NOTICES 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 VerDate Sep<11>2014 17:07 Jul 16, 2018 Jkt 244001 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 PO 00000 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 Frm 00013 Fmt 4703 Sfmt 4703 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 http://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 http://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]


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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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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 http://trade.gov/enforcement/news.asp.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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 http://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.
---------------------------------------------------------------------------

    \39\ See section 703(a)(2) of the Act.
    \40\ See section 703(a)(1) of the Act.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \41\ See 19 CFR 351.301(b).
    \42\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

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 http://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 
http://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