Vertical Metal File Cabinets From the People's Republic of China: Initiation of Countervailing Duty Investigation, 24089-24093 [2019-10936]

Download as PDF Federal Register / Vol. 84, No. 101 / Friday, May 24, 2019 / Notices Notification to Interested Parties DEPARTMENT OF COMMERCE These final results are issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221(b)(5). International Trade Administration Dated: May 17, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. I. Summary II. Background III. Scope of the Order IV. Period of Review V. Subsidies Valuation Information VI. Use of Facts Otherwise Available VII. Analysis of Programs VIII. Discussion of Comments Comment 1: Whether Commerce Should Apply AFA for POSCO and Hyundai Steel’s Failure to Retain AUL Records for Acquired Companies Comment 2: Whether POSCO Energy is POSCO’s Cross-Owned Input Supplier Comment 3: Whether to Treat POSCO Chemtech’s Deferred Tax Liabilities Under Restriction of Special Taxation Act (RSTA) Article 9 as an Interest-Free Contingent Liability Loan Comment 4: Which of POSCO’s Reported Benchmark Loans to Use as Benchmarks for POSCO’s KEXIM Loans Comment 5: Whether POSCO’s Equipment Loans from the KDB are Covered by the Previously Countervailed Program ‘‘Korea Development Bank (KDB) and Other Policy Banks’ Short-Term Discounted Loans for Export Receivables’’ Comment 6: Whether to Use the GOK Short-Term Bond Interest Rate or IMF Statistic as a Short-Term Interest Rate Benchmark for POSCO’s Short-Term KDB Loans Comment 7: Various Alleged Errors in the Preliminary Calculations for POSCO Comment 8: Whether Hyundai Green Power is Hyundai Steel’s Cross-Owned Input Supplier Comment 9: Whether Commerce Should Countervail Benefits Received by SPP Yulchon Energy Comment 10: Whether Suncheon Harbor Usage Fee Exemptions Under the Harbor Act Are Countervailable IX. Recommendation khammond on DSKBBV9HB2PROD with NOTICES BILLING CODE 3510–DS–P VerDate Sep<11>2014 18:10 May 23, 2019 Jkt 247001 Vertical Metal File Cabinets From the People’s Republic of China: Initiation of Countervailing Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable May 20, 2019. FOR FURTHER INFORMATION CONTACT: Chien-Min Yang at (202) 482–5484, AD/ CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. SUPPLEMENTARY INFORMATION: AGENCY: Appendix—List of Topics Discussed in the Issues and Decision Memorandum [FR Doc. 2019–10933 Filed 5–23–19; 8:45 am] [C–570–111] The Petition On April 30, 2019, the U.S. Department of Commerce (Commerce) received a countervailing duty (CVD) petition (Petition) concerning imports of vertical metal file cabinets (file cabinets) from the People’s Republic of China (China) filed in proper form on behalf of Hirsh Industries LLC (the petitioner).1 The CVD Petition was accompanied by an antidumping duty (AD) Petition concerning imports of file cabinets from China. Between May 2 and 15, 2019, Commerce requested supplemental information pertaining to certain aspects of the Petition.2 The petitioner filed responses to this request on May 6 and 16, 2019.3 1 See Petitioner’s Letter, ‘‘Vertical Metal File Cabinets from the People’s Republic of China— Petition for the Imposition of Antidumping and Countervailing Duties,’’ dated April 30, 2019 (the Petition). 2 See Commerce’s Letter, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Vertical Metal File Cabinets from the People’s Republic of China: Supplemental Questions,’’ dated May 2, 2019 (General Issues Supplemental Questionnaire); Petitioner’s Letter, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Vertical Metal File Cabinets from the People’s Republic of China: Supplemental Questions,’’ dated May 2, 2019 (CVD Supplemental Questionnaire); see also Memoranda, ‘‘Phone Call with Counsel to the Petitioner,’’ dated May 8, 2019 (May 8, 2019 Memorandum); and, ‘‘Phone Calls with Counsel to the Petitioner,’’ dated May 15, 2019 (May 15, 2019 Memorandum).. 3 See Petitioner’s Letters, ‘‘Vertical Metal File Cabinets from the People’s Republic of China— Petitioner’s Supplement to Volume I Relating to General Issues,’’ dated May 6, 2019 (General Issues Supplement); ‘‘Vertical Metal File Cabinets from the People’s Republic of China: Petitioner’s Supplement to Volume III Relating to China Countervailing Duties,’’ dated May 6, 2019 (CVD Supplement); ‘‘Vertical Metal File Cabinets from the People’s Republic of China—Petitioner’s 2nd Supplement to Volume I Relating to General PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 24089 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 file cabinets in China, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing file cabinets 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 this Petition on behalf of the domestic industry because the petitioner is an interested party as defined in section 771(9)(C) of the Act. Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested CVD investigation.4 Period of Investigation Because the Petition was filed on April 30, 2019, the period of investigation (POI) is January 1, 2018, through December 31, 2018. Scope of the Investigation The merchandise covered by this investigation is file cabinets from China. For a full description of the scope of this investigation, see the Appendix to this notice. Comments on Scope of the Investigation During our review of the Petition, we contacted the petitioner regarding the proposed scope to ensure that the scope language in the Petition is an accurate reflection of the products for which the domestic industry is seeking relief.5 As a result, the scope of the Petition was modified to clarify the description of the merchandise covered by the Petition. The description of the merchandise covered by this investigation, as described in the Appendix to this notice, reflects these clarifications. As discussed in the Preamble to Commerce’s regulations, we are setting aside a period for interested parties to Issues,’’ dated May 9, 2019 (Second General Issues Supplement); and, ‘‘Vertical Metal File Cabinets from the People’s Republic of China—Petitioner’s 3rd Supplement to Volume I Relating to General Issues,’’ dated May 16, 2019 (Third General Issues Supplement). 4 See ‘‘Determination of Industry Support for the Petition’’ section, infra. 5 See General Issues Supplement; see also May 8, 2019 Memorandum; Second General Issues Supplement; May 15, 2019 Memorandum; Third General Issues Supplement. E:\FR\FM\24MYN1.SGM 24MYN1 24090 Federal Register / Vol. 84, No. 101 / Friday, May 24, 2019 / Notices raise issues regarding product coverage (scope).6 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,7 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit scope comments by 5:00 p.m. Eastern Time (ET) on June 10, 2019, which is 20 calendar days from the signature date of this notice.8 Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on June 20, 2019, which is 10 calendar days from the initial comment deadline.9 Commerce requests that any factual information the parties consider relevant to the scope of the investigation be submitted during this time period. However, 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 comments must also be filed on the record of the concurrent AD investigation. khammond on DSKBBV9HB2PROD with NOTICES 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).10 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, 6 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). 7 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 8 Because the deadline falls on a Sunday (i.e., June 9, 2019), the deadline becomes the next business day (i.e., June 10, 2019). 9 See 19 CFR 351.303(b). 10 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, effective 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%20 on%20Electronic%20Filling%20Procedures.pdf. VerDate Sep<11>2014 18:10 May 23, 2019 Jkt 247001 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 China of the receipt of the Petition and provided it the opportunity for consultations with respect to the CVD Petition.11 China did not request consultations. 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,12 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 11 See Commerce’s Letter, ‘‘Countervailing Duty Petition on Vertical Metal File Cabinets from the People’s Republic of China,’’ dated May 15, 2019. 12 See section 771(10) of the Act. PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 differences do not render the decision of either agency contrary to law.13 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.14 Based on our analysis of the information submitted on the record, we have determined that file cabinets, as defined in the scope, constitute a single domestic like product, and we have analyzed industry support in terms of that domestic like product.15 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 2018 production of the domestic like product, as well as the 2018 production of the supporters of the Petition.16 The petitioner compared the total production of the supporters of the Petition to the estimated total production of the domestic like product for the entire domestic industry.17 We relied on data provided by the petitioner for purposes of measuring industry support.18 13 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)). 14 See Volume I of the Petitions at 11–13; see also General Issues Supplement at 11–13 and Exhibits GEN-Supp-1 through GEN-Supp-4. 15 For a discussion of the domestic like product analysis as applied to this case and information regarding industry support, see Countervailing Duty Initiation Checklist: Vertical Metal File Cabinets from the People’s Republic of China (CVD Initiation Checklist) at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petition Covering File Cabinets 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. 16 See Volume I of the Petition at 2–3 and Exhibit GEN–3. 17 See id.; see also General Issues Supplement, 14–15 and Exhibit GEN-Supp-5. 18 See Volume I of the Petition at 2–3 and Exhibit GEN–3; see also General Issues Supplement at 14– E:\FR\FM\24MYN1.SGM 24MYN1 Federal Register / Vol. 84, No. 101 / Friday, May 24, 2019 / Notices Our review of the data provided in the Petition, the General Issues Supplement, and other information readily available to Commerce indicates that the petitioner has established industry support for the Petition.19 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).20 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.21 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.22 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. 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 khammond on DSKBBV9HB2PROD with NOTICES 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.23 15 and Exhibit GEN-Supp-5. For further discussion, see CVD Initiation Checklist at Attachment II. 19 See CVD Initiation Checklist at Attachment II. 20 See id.; see also section 702(c)(4)(D) of the Act. 21 See CVD Initiation Checklist at Attachment II. 22 Id. 23 See Volume I of the Petition at 13–14 and Exhibits GEN–7 and GEN–10. VerDate Sep<11>2014 18:10 May 23, 2019 Jkt 247001 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 revenues; and a decline in the domestic industry’s production, capacity utilization, domestic shipments, employment variables, and financial performance.24 We have assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, as well as negligibility, and we have determined that these allegations are properly supported by adequate evidence, and meet the statutory requirements for initiation.25 Initiation of CVD Investigation Based on the examination of the Petition on file cabinets from China, 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 file cabinets from China benefit from countervailable subsidies conferred by the Government of China. Based on our review of the Petition, we find that there is sufficient information to initiate a CVD investigation on each of the alleged programs. For a full discussion of the basis for our decision to initiate on each program, see CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 65 days after the date of this initiation. Respondent Selection The petitioner named 62 companies in China as producers/exporters of file cabinets.26 Commerce intends to follow its standard practice in CVD investigations and calculate companyspecific subsidy rates in this investigation. 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 24 Id. at 10, 13–23 and Exhibits GEN–1, GEN–7, and GEN–10 through GEN–14; see also General Issues Supplement at 15–16 and Exhibit GEN-Supp5. 25 See CVD Initiation Checklist at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Vertical Metal File Cabinets from the People’s Republic of China (Attachment III). 26 See Petition Volume I at Exhibit GEN–8. PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 24091 on U.S. Customs and Border Protection (CBP) data for U.S. imports of file cabinets from China during the POI under the appropriate Harmonized Tariff Schedule of the United States numbers listed in the ‘‘Scope of the Investigation,’’ in the Appendix. On May 16, 2019, Commerce released CBP data for imports of file cabinets from China under APO to all parties with access to information protected by APO and indicated that interested parties wishing to comment on the CBP data must do so within three business days of the publication date of the notice of initiation of this investigation.27 We further stated that we will not accept rebuttal comments. 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 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 732(b)(3)(A) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petition has been provided to the government of China via ACCESS. Furthermore, to the extent practicable, we will attempt to provide a copy of the public version of the Petition to each exporter named in the Petition, 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 Determination by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petition was filed, whether there is a reasonable indication that imports of file cabinets from China are materially injuring or threatening material injury to a U.S. industry.28 A negative ITC determination will result in the investigation being terminated.29 Otherwise, this investigation will 27 See Memorandum, ‘‘Countervailing Duty Investigation of File Cabinets from: Release of U.S. Customs and Border Protection Data,’’ dated May 16, 2019. 28 See section 733(a) of the Act. 29 Id. E:\FR\FM\24MYN1.SGM 24MYN1 24092 Federal Register / Vol. 84, No. 101 / Friday, May 24, 2019 / Notices proceed according to statutory and regulatory time limits. khammond on DSKBBV9HB2PROD with NOTICES 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). Section 351.301(b) of Commerce’s regulations requires any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 30 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.31 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. Please review the regulations prior to submitting factual information in this investigation. 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 of 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 untimelyfiled requests for the extension of time limits. Parties should review Extension of Time Limits; Final Rule, 78 FR 57790 30 See 31 See 19 CFR 351.301(b). 19 CFR 351.301(b)(2). VerDate Sep<11>2014 18:10 May 23, 2019 Jkt 247001 (September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to submitting factual information in this investigation. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.32 Parties must use the certification formats provided in 19 CFR 351.303(g).33 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: May 20, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix Scope of the Investigation The scope of this investigation covers freestanding vertical metal file cabinets containing two or more extendable file storage elements and having an actual width of 25 inches or less. The subject vertical metal file cabinets have bodies made of carbon and/or alloy steel and or other metals, regardless of whether painted, powder coated, or galvanized or otherwise coated for corrosion protection or aesthetic appearance. The subject vertical metal file cabinets must have two or more extendable elements for file storage (e.g., file drawers) of a height that permits hanging files of either letter (8.5″ x 11″) or legal (8.5″ x 14″) sized documents. An ‘‘extendable element’’ is defined as a movable load-bearing storage component including, but not limited to, drawers and filing frames. Extendable elements typically have suspension systems, consisting of glide 32 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). Answers to frequently asked questions regarding the Final Rule are available at http://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 33 See PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 blocks or ball bearing glides, to facilitate opening and closing. The subject vertical metal file cabinets typically come in models with two, three, four, or five-file drawers. The inclusion of one or more additional nonfile-sized extendable storage elements, not sized for storage files (e.g., box or pencil drawers), does not remove an otherwise inscope product from the scope as long as the combined height of the non-file-sized extendable storage elements does not exceed six inches. The inclusion of an integrated storage area that is not extendable (e.g., a cubby) and has an actual height of six inches or less, also does not remove a subject vertical metal file cabinet from the scope. Accessories packaged with a subject vertical file cabinet, such as separate printer stands or shelf kits that sit on top of the in-scope vertical file cabinet are not considered integrated storage. ‘‘Freestanding’’ means the unit has a solid top and does not have an open top or a top with holes punched in it that would permit the unit to be attached to, hung from, or otherwise used to support a desktop or other work surface. The ability to anchor a vertical file cabinet to a wall for stability or to prevent it from tipping over does not exclude the unit from the scope. The addition of mobility elements such as casters, wheels, or a dolly does not remove the product from the scope. Packaging a subject vertical metal file cabinet with other accessories, including, but not limited to, locks, leveling glides, caster kits, drawer accessories (e.g., including but not limited to follower wires, follower blocks, file compressors, hanger rails, pencil trays, and hanging file folders), printer stand, shelf kit and magnetic hooks, also does not remove the product from the scope. Vertical metal file cabinets are also in scope whether they are imported assembled or unassembled with all essential parts and components included. Excluded from the scope are lateral metal file cabinets. Lateral metal file cabinets have a width that is greater than the body depth, and have a body with an actual width that is more than 25 inches wide. Also excluded from the scope are pedestal file cabinets. Pedestal file cabinets are metal file cabinets with body depths that are greater than or equal to their width, are under 31 inches in actual height, and have the following characteristics: (1) An open top or other the means for the cabinet to be attached to or hung from a desktop or other work surface such as holes punched in the top (i.e., not freestanding); or (2) freestanding file cabinets that have all of the following: (a) At least a 90 percent drawer extension for all extendable file storage elements; (b) a central locking system; (c) a minimum weight density of 9.5 lbs./cubic foot; and (d) casters or leveling glides. ‘‘Percentage drawer extension’’ is defined as the drawer travel distance divided by the inside depth dimension of the drawer. Inside depth of drawer is measured from the inside of the drawer face to the inside face of the drawer back. Drawer extension is the distance the drawer travels from the closed position to the maximum travel position which is limited by the out stops. In situations where drawers do not include an E:\FR\FM\24MYN1.SGM 24MYN1 Federal Register / Vol. 84, No. 101 / Friday, May 24, 2019 / Notices outstop, the drawer is extended until the drawer back is 3 l⁄2 inches from the closed position of inside face of the drawer front. The ‘‘weight density’’ is calculated by dividing the cabinet’s actual weight by its volume in cubic feet (the multiple of the product’s actual width, depth, and height). A ‘‘central locking system’’ locks all drawers in a unit. Also excluded from the scope are fire proof or fire-resistant file cabinets that meet Underwriters Laboratories (UL) fire protection standard 72, class 350, which covers the test procedures applicable to fireresistant equipment intended to protect paper records. The merchandise subject to the investigation is classified under Harmonized Tariff Schedule of the United States (HTSUS) subheading 9403.10.0020. The subject merchandise may also enter under HTSUS subheadings 9403.10.0040, 9403.20.0080, and 9403.20.0090. While HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of the investigation is dispositive. [FR Doc. 2019–10936 Filed 5–23–19; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–110] Vertical Metal File Cabinets From the People’s Republic of China: Initiation of Less-Than-Fair-Value Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable May 20, 2019. FOR FURTHER INFORMATION CONTACT: Kathryn Wallace at (202) 482–6251, AD/ CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230. SUPPLEMENTARY INFORMATION: AGENCY: khammond on DSKBBV9HB2PROD with NOTICES The Petition On April 30, 2019, the U.S. Department of Commerce (Commerce) received an antidumping duty (AD) petition (Petition) concerning imports of vertical metal file cabinets (file cabinets) from the People’s Republic of China (China), filed in proper form on behalf of Hirsh Industries LLC (the petitioner).1 The AD Petition was accompanied by a countervailing duty (CVD) Petition 1 See Petitioner’s Letter, ‘‘Vertical Metal File Cabinets from the People’s Republic of China— Petition for the Imposition of Antidumping and Countervailing Duties,’’ dated April 30, 2019 (the Petition). VerDate Sep<11>2014 18:10 May 23, 2019 Jkt 247001 concerning imports of file cabinets from China. Between May 2 and 15, 2019, Commerce requested supplemental information pertaining to certain aspects of the Petition.2 The petitioner filed responses to these requests between May 6 and 16, 2019.3 In accordance with section 732(b) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that imports of file cabinets from China are being, or are likely to be, sold in the United States at less-than-fair value (LTFV) within the meaning of section 731 of the Act, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing file cabinets and in the United States. Consistent with section 732(b)(1) of the Act, the Petition is accompanied by information reasonably available to the petitioner supporting its allegations. Commerce finds that the petitioner filed this Petition on behalf of the domestic industry, because the petitioner is an interested party, as defined in section 771(9)(C) of the Act. Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested AD investigation.4 Period of Investigation Because the Petition was filed on April 30, 2019, the period of investigation (POI) is October 1, 2018, through March 31, 2019. 2 See Commerce’s Letters, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Vertical Metal File Cabinets from the People’s Republic of China: Supplemental Questions,’’ dated May 2, 2019 (General Issues Supplemental Questionnaire); and, ‘‘Petitions for the Imposition of Antidumping and Countervailing Duties on Imports of Vertical Metal File Cabinets from the People’s Republic of China: Supplemental Questions,’’ dated May 2, 2019 (AD Supplemental Questionnaire); see also Memoranda, ‘‘Phone Call with Counsel to the Petitioner,’’ dated May 8, 2019 (May 8, 2019 Memorandum); and, ‘‘Phone Calls with Counsel to the Petitioner,’’ dated May 15, 2019 (May 15, 2019 Memorandum). 3 See Petitioner’s Letters, ‘‘Vertical Metal File Cabinets from the People’s Republic of China— Petitioner’s Supplement to Volume I Relating to General Issues,’’ dated May 6, 2019 (General Issues Supplement); ‘‘Vertical Metal Cabinets from the People’s Republic of China—Petitioner’s Supplement to Volume II Relating to China Antidumping Duties,’’ dated May 6, 2019 (AD Supplement); ‘‘Vertical Metal File Cabinets from the People’s Republic of China—Petitioner’s 2nd Supplement to Volume I Relating to General Issues,’’ dated May 9, 2019 (Second General Issues Supplement); and, ‘‘Vertical Metal File Cabinets from the People’s Republic of China—Petitioner’s 3rd Supplement to Volume I Relating to General Issues,’’ dated May 16, 2019 (Third General Issues Supplement). 4 See ‘‘Determination of Industry Support for the Petition’’ section, infra. PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 24093 Scope of the Investigation The merchandise covered by this investigation is file cabinets from China. For a full description of the scope of this investigation, see the Appendix to this notice. Comments on Scope of the Investigation During our review of the Petition, we contacted the petitioner regarding the proposed scope to ensure that the scope language in the Petition is an accurate reflection of the products for which the domestic industry is seeking relief.5 As a result, the scope of the Petition was modified to clarify the description of the merchandise covered by the Petition. The description of the merchandise covered by this investigation, as described in the Appendix to this notice, reflects these clarifications. 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).6 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,7 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit scope comments by 5:00 p.m. Eastern Time (ET) on June 10, 2019, which is 20 calendar days from the signature date of this notice.8 Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on June 20, 2019, which is 10 calendar days from the initial comment deadline.9 Commerce requests that any factual information the parties consider relevant to the scope of the investigation be submitted during this time period. However, 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 comments must 5 See General Issues Supplement; see also May 8, 2019 Memorandum; Second General Issues Supplement; May 15, 2019 Memorandum; Third General Issues Supplement. 6 See Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997). 7 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 8 Because the deadline falls on a Sunday (i.e., June 9, 2019), the deadline becomes the next business day (i.e., June 10, 2019). 9 See 19 CFR 351.303(b). E:\FR\FM\24MYN1.SGM 24MYN1

Agencies

[Federal Register Volume 84, Number 101 (Friday, May 24, 2019)]
[Notices]
[Pages 24089-24093]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10936]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-111]


Vertical Metal File Cabinets From the People's Republic of China: 
Initiation of Countervailing Duty Investigation

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

DATES: Applicable May 20, 2019.

FOR FURTHER INFORMATION CONTACT: Chien-Min Yang at (202) 482-5484, AD/
CVD Operations, Office VII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petition

    On April 30, 2019, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition (Petition) concerning 
imports of vertical metal file cabinets (file cabinets) from the 
People's Republic of China (China) filed in proper form on behalf of 
Hirsh Industries LLC (the petitioner).\1\ The CVD Petition was 
accompanied by an antidumping duty (AD) Petition concerning imports of 
file cabinets from China.
---------------------------------------------------------------------------

    \1\ See Petitioner's Letter, ``Vertical Metal File Cabinets from 
the People's Republic of China--Petition for the Imposition of 
Antidumping and Countervailing Duties,'' dated April 30, 2019 (the 
Petition).
---------------------------------------------------------------------------

    Between May 2 and 15, 2019, Commerce requested supplemental 
information pertaining to certain aspects of the Petition.\2\ The 
petitioner filed responses to this request on May 6 and 16, 2019.\3\
---------------------------------------------------------------------------

    \2\ See Commerce's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Vertical Metal 
File Cabinets from the People's Republic of China: Supplemental 
Questions,'' dated May 2, 2019 (General Issues Supplemental 
Questionnaire); Petitioner's Letter, ``Petition for the Imposition 
of Countervailing Duties on Imports of Vertical Metal File Cabinets 
from the People's Republic of China: Supplemental Questions,'' dated 
May 2, 2019 (CVD Supplemental Questionnaire); see also Memoranda, 
``Phone Call with Counsel to the Petitioner,'' dated May 8, 2019 
(May 8, 2019 Memorandum); and, ``Phone Calls with Counsel to the 
Petitioner,'' dated May 15, 2019 (May 15, 2019 Memorandum)..
    \3\ See Petitioner's Letters, ``Vertical Metal File Cabinets 
from the People's Republic of China--Petitioner's Supplement to 
Volume I Relating to General Issues,'' dated May 6, 2019 (General 
Issues Supplement); ``Vertical Metal File Cabinets from the People's 
Republic of China: Petitioner's Supplement to Volume III Relating to 
China Countervailing Duties,'' dated May 6, 2019 (CVD Supplement); 
``Vertical Metal File Cabinets from the People's Republic of China--
Petitioner's 2nd Supplement to Volume I Relating to General 
Issues,'' dated May 9, 2019 (Second General Issues Supplement); and, 
``Vertical Metal File Cabinets from the People's Republic of China--
Petitioner's 3rd Supplement to Volume I Relating to General 
Issues,'' dated May 16, 2019 (Third General Issues Supplement).
---------------------------------------------------------------------------

    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 file cabinets in 
China, and that such imports are materially injuring, or threatening 
material injury to, the domestic industry producing file cabinets 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 this Petition on behalf of 
the domestic industry because the petitioner is an interested party as 
defined in section 771(9)(C) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support with respect to the 
initiation of the requested CVD investigation.\4\
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    \4\ See ``Determination of Industry Support for the Petition'' 
section, infra.
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Period of Investigation

    Because the Petition was filed on April 30, 2019, the period of 
investigation (POI) is January 1, 2018, through December 31, 2018.

Scope of the Investigation

    The merchandise covered by this investigation is file cabinets from 
China. For a full description of the scope of this investigation, see 
the Appendix to this notice.

Comments on Scope of the Investigation

    During our review of the Petition, we contacted the petitioner 
regarding the proposed scope to ensure that the scope language in the 
Petition is an accurate reflection of the products for which the 
domestic industry is seeking relief.\5\ As a result, the scope of the 
Petition was modified to clarify the description of the merchandise 
covered by the Petition. The description of the merchandise covered by 
this investigation, as described in the Appendix to this notice, 
reflects these clarifications.
---------------------------------------------------------------------------

    \5\ See General Issues Supplement; see also May 8, 2019 
Memorandum; Second General Issues Supplement; May 15, 2019 
Memorandum; Third General Issues Supplement.
---------------------------------------------------------------------------

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to

[[Page 24090]]

raise issues regarding product coverage (scope).\6\ 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,\7\ all such factual information should be limited to 
public information. To facilitate preparation of its questionnaires, 
Commerce requests that all interested parties submit scope comments by 
5:00 p.m. Eastern Time (ET) on June 10, 2019, which is 20 calendar days 
from the signature date of this notice.\8\ Any rebuttal comments, which 
may include factual information, must be filed by 5:00 p.m. ET on June 
20, 2019, which is 10 calendar days from the initial comment 
deadline.\9\
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    \6\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \7\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \8\ Because the deadline falls on a Sunday (i.e., June 9, 2019), 
the deadline becomes the next business day (i.e., June 10, 2019).
    \9\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information the parties consider 
relevant to the scope of the investigation be submitted during this 
time period. However, 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 comments must also be filed 
on the record of the concurrent AD investigation.

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).\10\ 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.
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    \10\ 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, effective 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.
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Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified China of the receipt of the Petition and provided it the 
opportunity for consultations with respect to the CVD Petition.\11\ 
China did not request consultations.
---------------------------------------------------------------------------

    \11\ See Commerce's Letter, ``Countervailing Duty Petition on 
Vertical Metal File Cabinets from the People's Republic of China,'' 
dated May 15, 2019.
---------------------------------------------------------------------------

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,\12\ 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.\13\
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    \12\ See section 771(10) of the Act.
    \13\ 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.\14\ Based on our analysis of the information 
submitted on the record, we have determined that file cabinets, as 
defined in the scope, constitute a single domestic like product, and we 
have analyzed industry support in terms of that domestic like 
product.\15\
---------------------------------------------------------------------------

    \14\ See Volume I of the Petitions at 11-13; see also General 
Issues Supplement at 11-13 and Exhibits GEN-Supp-1 through GEN-Supp-
4.
    \15\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Countervailing Duty Initiation Checklist: Vertical Metal File 
Cabinets from the People's Republic of China (CVD Initiation 
Checklist) at Attachment II, Analysis of Industry Support for the 
Antidumping and Countervailing Duty Petition Covering File Cabinets 
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 2018 production of the domestic like product, as well as the 2018 
production of the supporters of the Petition.\16\ The petitioner 
compared the total production of the supporters of the Petition to the 
estimated total production of the domestic like product for the entire 
domestic industry.\17\ We relied on data provided by the petitioner for 
purposes of measuring industry support.\18\
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    \16\ See Volume I of the Petition at 2-3 and Exhibit GEN-3.
    \17\ See id.; see also General Issues Supplement, 14-15 and 
Exhibit GEN-Supp-5.
    \18\ See Volume I of the Petition at 2-3 and Exhibit GEN-3; see 
also General Issues Supplement at 14-15 and Exhibit GEN-Supp-5. For 
further discussion, see CVD Initiation Checklist at Attachment II.

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[[Page 24091]]

    Our review of the data provided in the Petition, the General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petition.\19\ 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).\20\ 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.\21\ 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.\22\ 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.
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    \19\ See CVD Initiation Checklist at Attachment II.
    \20\ See id.; see also section 702(c)(4)(D) of the Act.
    \21\ See CVD Initiation Checklist at Attachment II.
    \22\ Id.
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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.\23\
---------------------------------------------------------------------------

    \23\ See Volume I of the Petition at 13-14 and Exhibits GEN-7 
and GEN-10.
---------------------------------------------------------------------------

    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 revenues; and a decline in the domestic industry's 
production, capacity utilization, domestic shipments, employment 
variables, and financial performance.\24\ We have assessed the 
allegations and supporting evidence regarding material injury, threat 
of material injury, causation, as well as negligibility, and we have 
determined that these allegations are properly supported by adequate 
evidence, and meet the statutory requirements for initiation.\25\
---------------------------------------------------------------------------

    \24\ Id. at 10, 13-23 and Exhibits GEN-1, GEN-7, and GEN-10 
through GEN-14; see also General Issues Supplement at 15-16 and 
Exhibit GEN-Supp-5.
    \25\ See CVD Initiation Checklist at Attachment III, Analysis of 
Allegations and Evidence of Material Injury and Causation for the 
Antidumping and Countervailing Duty Petitions Covering Vertical 
Metal File Cabinets from the People's Republic of China (Attachment 
III).
---------------------------------------------------------------------------

Initiation of CVD Investigation

    Based on the examination of the Petition on file cabinets from 
China, 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 file cabinets from China benefit from 
countervailable subsidies conferred by the Government of China. Based 
on our review of the Petition, we find that there is sufficient 
information to initiate a CVD investigation on each of the alleged 
programs. For a full discussion of the basis for our decision to 
initiate on each program, see CVD Initiation Checklist. A public 
version of the initiation checklist for this investigation is available 
on ACCESS. In accordance with section 703(b)(1) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determination no later than 65 days after the date of this initiation.

Respondent Selection

    The petitioner named 62 companies in China as producers/exporters 
of file cabinets.\26\ Commerce intends to follow its standard practice 
in CVD investigations and calculate company-specific subsidy rates in 
this investigation. 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 U.S. Customs and Border 
Protection (CBP) data for U.S. imports of file cabinets from China 
during the POI under the appropriate Harmonized Tariff Schedule of the 
United States numbers listed in the ``Scope of the Investigation,'' in 
the Appendix.
---------------------------------------------------------------------------

    \26\ See Petition Volume I at Exhibit GEN-8.
---------------------------------------------------------------------------

    On May 16, 2019, Commerce released CBP data for imports of file 
cabinets from China under APO to all parties with access to information 
protected by APO and indicated that interested parties wishing to 
comment on the CBP data must do so within three business days of the 
publication date of the notice of initiation of this investigation.\27\ 
We further stated that we will not accept rebuttal comments.
---------------------------------------------------------------------------

    \27\ See Memorandum, ``Countervailing Duty Investigation of File 
Cabinets from: Release of U.S. Customs and Border Protection Data,'' 
dated May 16, 2019.
---------------------------------------------------------------------------

    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 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 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the government of China via ACCESS.
    Furthermore, to the extent practicable, we will attempt to provide 
a copy of the public version of the Petition to each exporter named in 
the Petition, 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 Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of file cabinets from China are materially 
injuring or threatening material injury to a U.S. industry.\28\ A 
negative ITC determination will result in the investigation being 
terminated.\29\ Otherwise, this investigation will

[[Page 24092]]

proceed according to statutory and regulatory time limits.
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    \28\ See section 733(a) of the Act.
    \29\ Id.
---------------------------------------------------------------------------

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). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \30\ 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.\31\ 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. Please review the 
regulations prior to submitting factual information in this 
investigation.
---------------------------------------------------------------------------

    \30\ See 19 CFR 351.301(b).
    \31\ 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 of 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 this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\32\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\33\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \32\ See section 782(b) of the Act.
    \33\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

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: May 20, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The scope of this investigation covers freestanding vertical 
metal file cabinets containing two or more extendable file storage 
elements and having an actual width of 25 inches or less. The 
subject vertical metal file cabinets have bodies made of carbon and/
or alloy steel and or other metals, regardless of whether painted, 
powder coated, or galvanized or otherwise coated for corrosion 
protection or aesthetic appearance. The subject vertical metal file 
cabinets must have two or more extendable elements for file storage 
(e.g., file drawers) of a height that permits hanging files of 
either letter (8.5'' x 11'') or legal (8.5'' x 14'') sized 
documents.
    An ``extendable element'' is defined as a movable load-bearing 
storage component including, but not limited to, drawers and filing 
frames. Extendable elements typically have suspension systems, 
consisting of glide blocks or ball bearing glides, to facilitate 
opening and closing. The subject vertical metal file cabinets 
typically come in models with two, three, four, or five-file 
drawers. The inclusion of one or more additional non-file-sized 
extendable storage elements, not sized for storage files (e.g., box 
or pencil drawers), does not remove an otherwise in-scope product 
from the scope as long as the combined height of the non-file-sized 
extendable storage elements does not exceed six inches. The 
inclusion of an integrated storage area that is not extendable 
(e.g., a cubby) and has an actual height of six inches or less, also 
does not remove a subject vertical metal file cabinet from the 
scope. Accessories packaged with a subject vertical file cabinet, 
such as separate printer stands or shelf kits that sit on top of the 
in-scope vertical file cabinet are not considered integrated 
storage.
    ``Freestanding'' means the unit has a solid top and does not 
have an open top or a top with holes punched in it that would permit 
the unit to be attached to, hung from, or otherwise used to support 
a desktop or other work surface. The ability to anchor a vertical 
file cabinet to a wall for stability or to prevent it from tipping 
over does not exclude the unit from the scope.
    The addition of mobility elements such as casters, wheels, or a 
dolly does not remove the product from the scope. Packaging a 
subject vertical metal file cabinet with other accessories, 
including, but not limited to, locks, leveling glides, caster kits, 
drawer accessories (e.g., including but not limited to follower 
wires, follower blocks, file compressors, hanger rails, pencil 
trays, and hanging file folders), printer stand, shelf kit and 
magnetic hooks, also does not remove the product from the scope. 
Vertical metal file cabinets are also in scope whether they are 
imported assembled or unassembled with all essential parts and 
components included.
    Excluded from the scope are lateral metal file cabinets. Lateral 
metal file cabinets have a width that is greater than the body 
depth, and have a body with an actual width that is more than 25 
inches wide.
    Also excluded from the scope are pedestal file cabinets. 
Pedestal file cabinets are metal file cabinets with body depths that 
are greater than or equal to their width, are under 31 inches in 
actual height, and have the following characteristics: (1) An open 
top or other the means for the cabinet to be attached to or hung 
from a desktop or other work surface such as holes punched in the 
top (i.e., not freestanding); or (2) freestanding file cabinets that 
have all of the following: (a) At least a 90 percent drawer 
extension for all extendable file storage elements; (b) a central 
locking system; (c) a minimum weight density of 9.5 lbs./cubic foot; 
and (d) casters or leveling glides.
    ``Percentage drawer extension'' is defined as the drawer travel 
distance divided by the inside depth dimension of the drawer. Inside 
depth of drawer is measured from the inside of the drawer face to 
the inside face of the drawer back. Drawer extension is the distance 
the drawer travels from the closed position to the maximum travel 
position which is limited by the out stops. In situations where 
drawers do not include an

[[Page 24093]]

outstop, the drawer is extended until the drawer back is 3 \l/2\ 
inches from the closed position of inside face of the drawer front. 
The ``weight density'' is calculated by dividing the cabinet's 
actual weight by its volume in cubic feet (the multiple of the 
product's actual width, depth, and height). A ``central locking 
system'' locks all drawers in a unit.
    Also excluded from the scope are fire proof or fire-resistant 
file cabinets that meet Underwriters Laboratories (UL) fire 
protection standard 72, class 350, which covers the test procedures 
applicable to fire-resistant equipment intended to protect paper 
records.
    The merchandise subject to the investigation is classified under 
Harmonized Tariff Schedule of the United States (HTSUS) subheading 
9403.10.0020. The subject merchandise may also enter under HTSUS 
subheadings 9403.10.0040, 9403.20.0080, and 9403.20.0090. While 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of the investigation is 
dispositive.

[FR Doc. 2019-10936 Filed 5-23-19; 8:45 am]
 BILLING CODE 3510-DS-P