Steel Racks From the People's Republic of China: Amended Preliminary Countervailing Duty Determination, 16640-16641 [2019-08004]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 84, Number 77 (Monday, April 22, 2019)]
[Notices]
[Pages 16640-16641]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08004]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-089]


Steel Racks From the People's Republic of China: Amended 
Preliminary Countervailing Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) is amending the scope of 
the countervailing duty (CVD) investigation of steel racks from China 
to conform with the scope published in the preliminary determination of 
the companion antidumping duty (AD) investigation of steel racks from 
China. The period of investigation is January 1, 2017, through December 
31, 2017.

DATES: Applicable April 22, 2019.

FOR FURTHER INFORMATION CONTACT: Eli Lovely, AD/CVD Operations, Office 
IV, Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230; telephone: (202) 482-1593.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published its CVD Preliminary Determination on December 3, 
2018.\1\ On March 4, 2019, Commerce published its AD Preliminary 
Determination within which we amended the scope of the investigation to 
exclude certain products, based upon comments received from interested 
parties.\2\
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    \1\ See Certain Steel Racks from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination, and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 83 FR 62297 (December 3, 2018) (CVD Preliminary 
Determination).
    \2\ See Steel Racks and Parts Thereof from the People's Republic 
of China: Preliminary Determination of Sales at Less Than Fair 
Value, 84 FR 7326 (March 4, 2019) (AD Preliminary Determination) and 
accompanying Preliminary Decision Memorandum. See also, Memorandum 
``Steel Racks from the People's Republic of China: Preliminary Scope 
Decision,'' dated February 25, 2019, which was placed on the record 
of both the AD and CVD investigations.
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Amended Scope of the Investigation

    The product covered by this investigation is steel racks from 
China. We are amending the scope of the CVD investigation to conform 
with the scope of the companion AD investigation, including the 
exclusions of: (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., units 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. These exclusions were first enumerated in the AD 
Preliminary Determination. For a complete description of the amended 
scope of this investigation, see Appendix I.

Suspension of Liquidation

    We have not revised the estimated cash deposit rates published in 
the CVD Preliminary Determination. In accordance with section 
703(d)(1)(B) and (d)(2) of the Tariff Act of 1930, as amended (the 
Act), we will direct U.S. Customs and Border Protection (CBP) to 
continue to suspend liquidation of entries of subject merchandise as 
described in the amended scope of the investigation, entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register, and to continue to 
require a cash deposit, pursuant to 19 CFR 351.205(d). Additionally, 
because certain products are now excluded from the scope of the 
investigation, Commerce will instruct CBP to terminate suspension of 
liquidation of those excluded products, and to refund any cash deposits 
previously posted with respect to them.

Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission of its amended determination. This 
determination is issued and published pursuant to sections 703(f) and 
777(i) of the Act and 19 CFR 351.205(c).

    Dated: March 29, 2019.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Amended 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 (e.g., end plates and beam 
connectors), and accessories (including, but not limited to, rails, 
skid channels, skid rails, drum/coil beds, fork clearance bars, 
pallet supports, 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. Subject steel racks have the following physical 
characteristics:
    (1) Each steel vertical and horizontal load bearing member 
(e.g., arms, beams, posts, and columns) is composed of steel that is 
at least 0.044 inches thick;
    (2) Each steel vertical and horizontal load bearing member 
(e.g., arms, beams, posts, and columns) is composed of steel that 
has a yield strength equal to or greater than 36,000 pounds per 
square inch;
    (3) The width of each steel vertical load bearing member (e.g., 
posts and columns) exceeds two inches; and
    (4) The overall depth of each steel roll-formed horizontal load 
bearing member (e.g., beams) exceeds two inches.
    In the case of steel horizontal load bearing members other than 
roll-formed (e.g., structural beams, Z-beams, or cantilever arms), 
only the criteria in subparagraphs (1) and (2) apply to these 
horizontal load bearing members. The depth limitation in 
subparagraph (4) does not apply to steel horizontal load bearing 
members that are not roll-formed.
    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

[[Page 16641]]

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) other dimensions, weight, 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) rack 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., units 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.
    Such excluded components of boltless steel shelving are defined 
as:
    (1) Boltless horizontal supports (beams, braces) that have each 
of the following characteristics: (a) A length of 95 inches or less, 
(b) made from steel that has a thickness of 0.068 inches or less, 
and (c) a weight capacity that does not exceed 2500 lbs per pair of 
beams for beams that are 78'' or shorter, a weight capacity that 
does not exceed 2200 lbs per pair of beams for beams that are over 
78'' long but not longer than 90'', and/or a weight capacity that 
does not exceed 1800 lbs per pair of beams for beams that are longer 
than 90'';
    (2) shelf supports that mate with the aforementioned horizontal 
supports; and
    (3) boltless vertical supports (upright welded frames and posts) 
that have each of the following characteristics: (a) A length of 95 
inches or less, (b) with no face that exceeds 2.90 inches wide, and 
(c) made from steel that has a thickness of 0.065 inches or less.
    Excluded from the scope of this investigation are: (1) Wall-
mounted shelving and racks, defined as shelving and racks that 
suspend all of the load from the wall, and do not stand on, or 
transfer load to, the floor; (2) ceiling-mounted shelving and racks, 
defined as shelving and racks that suspend all of the load from the 
ceiling and do not stand on, or transfer load to, the floor; and (3) 
wall/ceiling mounted shelving and racks, defined as shelving and 
racks that suspend the load from the ceiling and the wall and do not 
stand on, or transfer load to, the floor. The addition of a wall or 
ceiling bracket or other device to attach otherwise subject 
merchandise to a wall or ceiling does not meet the terms of this 
exclusion.
    Also excluded from the scope of this investigation is 
scaffolding that complies with ANSI/ASSE A10.8--2011--Scaffolding 
Safety Requirements, CAN/CSA S269.2-M87 (Reaffirmed 2003)--Access 
Scaffolding for Construction Purposes, and/or Occupational Safety 
and Health Administration regulations at 29 CFR part 1926 subpart 
L--Scaffolds.
    Also excluded from the scope of this investigation are tubular 
racks such as garment racks and drying racks, i.e., racks in which 
the load bearing vertical and horizontal steel members consist 
solely of: (1) Round tubes that are no more than two inches in 
diameter; (2) round rods that are no more than two inches in 
diameter; (3) other tubular shapes that have both an overall height 
of no more than two inches and an overall width of no more than two 
inches; and/or (4) wire.
    Also excluded from the scope of this investigation are portable 
tier racks. Portable tier racks must meet each of the following 
criteria to qualify for this exclusion:
    (1) They are freestanding, portable assemblies with a fully 
welded base and four freely inserted and easily removable corner 
posts;
    (2) They are assembled without the use of bolts, braces, 
anchors, brackets, clips, attachments, or connectors;
    (3) One assembly may be stacked on top of another without 
applying any additional load to the product being stored on each 
assembly, but individual portable tier racks are not securely 
attached to one another to provide interaction or interdependence; 
and
    (4) The assemblies have no mechanism (e.g., a welded foot plate 
with bolt holes) for anchoring the assembly to the ground.
    Also excluded from the scope of this investigation are 
accessories that are independently bolted to the floor and not 
attached to the rack system itself, i.e., column protectors, corner 
guards, bollards, and end row and end of aisle protectors.
    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. 2019-08004 Filed 4-19-19; 8:45 am]
 BILLING CODE 3510-DS-P