Certain Chassis and Subassemblies Thereof From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, 12616-12619 [2021-04409]

Download as PDF 12616 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices number of participants, whether any participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at a time and date to be determined. Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date. jbell on DSKJLSW7X2PROD with NOTICES Postponement of Final Determination and Extension of Provisional Measures Section 735(a)(2) of the Act provides that a final determination may be postponed until not later than 135 days after the date of the publication of the preliminary determination if, in the event of an affirmative preliminary determination, a request for such postponement is made by exporters who account for a significant proportion of exports of the subject merchandise, or in the event of a negative preliminary determination, a request for such postponement is made by the petitioner. Section 351.210(e)(2) of Commerce’s regulations requires that a request by exporters for postponement of the final determination be accompanied by a request for extension of provisional measures from a four-month period to a period not more than six months in duration. On February 5, 2021, pursuant to 19 CFR 351.210(e), Adisseo Espan˜a requested that Commerce postpone the final determination and that provisional measures be extended to a period not to exceed six months.10 In accordance with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because: (1) The preliminary determination is affirmative; (2) the requesting exporter, Adisseo Espan˜a, accounts for a significant proportion of exports of the subject merchandise; and (3) no compelling reasons for denial exist, Commerce is postponing the final determination and extending the provisional measures from a four-month period to a period not greater than six months. Accordingly, Commerce will make its final determination no later than 135 days after the date of publication of this preliminary determination, pursuant to section 735(a)(2) of the Act. International Trade Commission Notification In accordance with section 733(f) of the Act, Commerce will notify the International Trade Commission (ITC) of its preliminary determination. If the final determination is affirmative, then 10 See Adisseo Espan ˜ a’s Letter, ‘‘Methionine from Spain: Request for Postponement of Final Determination and Provisional Measures Period,’’ dated February 5, 2021. VerDate Sep<11>2014 20:27 Mar 03, 2021 Jkt 253001 the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of methionine from Spain are materially injuring, or threaten material injury to, the U.S. industry. Notification to Interested Parties This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c). Dated: February 24, 2021. Christian Marsh, Acting Assistant Secretary for Enforcement and Compliance. Appendix I Scope of the Investigation The merchandise covered by this investigation is methionine and dl-Hydroxy analogue of dl-methionine, also known as 2Hydroxy 4-(Methylthio) Butanoic acid (HMTBa), regardless of purity, particle size, grade, or physical form. Methionine has the chemical formula C5H11NO2S, liquid HMTBa has the chemical formula C5H10O3S, and dry HMTBa has the chemical formula (C5H9O3S)2Ca. Subject merchandise also includes methionine processed in a third country including, but not limited to, refining, converting from liquid to dry or dry to liquid form, or any other processing that would not otherwise remove the merchandise from the scope of this investigation if performed in the country of manufacture of the in-scope methionine or dl-Hydroxy analogue of dlmethionine. The scope also includes methionine that is commingled (i.e., mixed or combined) with methionine from sources not subject to this investigation. Only the subject component of such commingled products is covered by the scope of this investigation. Excluded from this investigation is United States Pharmacopoeia (USP) grade methionine. In order to qualify for this exclusion, USP grade methionine must meet or exceed all of the chemical, purity, performance, and labeling requirements of the United States Pharmacopeia and the National Formulary for USP grade methionine. Methionine is currently classified under subheadings 2930.40.00.00 and 2930.90.46.00 of the Harmonized Tariff Schedule of the United States (HTSUS). Methionine has the Chemical Abstracts Service (CAS) registry numbers 583–91–5, 4857–44–7, 59–51–8 and 922–50–9. While the HTSUS subheadings and CAS registry number are provided for convenience and customs purposes, the written description of the scope of this investigation is dispositive. Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Period of Investigation PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 IV. Scope of the Investigation V. Critical Circumstances VI. Scope Comments VII. Discussion of the Methodology VIII. Currency Conversion IX. Recommendation [FR Doc. 2021–04416 Filed 3–3–21; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–135] Certain Chassis and Subassemblies Thereof From the People’s Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) preliminarily determines that certain chassis and subassemblies thereof 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 (POI) is January 1, 2020, through June 30, 2020. Interested parties are invited to comment on this preliminary determination. DATES: Applicable March 4, 2021. FOR FURTHER INFORMATION CONTACT: Hermes Pinilla or Mary Kolberg, AD/ CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–5439 or (202) 482–1785, respectively. AGENCY: SUPPLEMENTARY INFORMATION: Background This preliminary determination is made in accordance with section 733(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this investigation on August 19, 2020.1 On October 20, 2020, Commerce postponed the preliminary determination of this investigation, and the revised deadline is now February 25, 2021.2 For a complete description of the events that followed the initiation of this 1 See Certain Chassis and Subassemblies Thereof from the People’s Republic of China: Initiation of Less-Than-Fair-Value Investigations, 85 FR 52552 (August 19, 2020) (Initiation Notice). 2 See Certain Chassis and Subassemblies Thereof from the People’s Republic of China: Postponement of Preliminary Determination in the Less-Than-FairValue Investigation, 85 FR 68559 (October 20, 2020). E:\FR\FM\04MRN1.SGM 04MRN1 12617 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices investigation, see the Preliminary Decision Memorandum.3 A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary Decision Memorandum are identical in content. Scope of the Investigation Memorandum.8 For a summary of all scope related comments submitted to the record for this investigation and accompanying discussion and analysis of all comments timely received, see the Preliminary Scope Decision Memorandum. In the Preliminary Scope Decision Memorandum, Commerce preliminarily modified the scope language as it appeared in the Initiation Notice. See the revised scope in Appendix I to this notice. On February 11, 2021, we established a scope briefing schedule 9 and timely received a scope case brief from CIMC.10 The scope comments from CIMC will be addressed in the final determination of the companion countervailing duty (CVD) investigation due no later than March 15, 2021. Methodology Commerce is conducting this investigation in accordance with section 731 of the Act. Pursuant to section 776(a) and (b) of the Act, we have preliminarily relied upon facts otherwise available, with adverse Scope Comments inferences for the China-wide entity. In accordance with the preamble to The China-wide entity includes each of Commerce’s regulations,4 the Initiation the companies selected for individual Notice set aside a period of time for examination (CIMC and Fuwa), as well parties to raise issues regarding product as the companies that received but did coverage (i.e., scope).5 On September 22, not answer Commerce’s quantity and 2020, we received comments from value questionnaire.11 Because none of respondent interested parties and the the companies responded to the best of Coalition of American Chassis their ability to Commerce’s Manufacturers (the petitioner) on the questionnaires, we assigned the highest scope of the investigation.6 On October margin alleged in the petition (i.e., 5, 2020, we received scope rebuttal 188.05 percent) to the China-wide comments from the petitioner.7 On entity. Furthermore, because neither February 9, 2021, we issued the CIMC nor Fuwa demonstrated eligibility Preliminary Scope Decision for a separate rate, both companies are preliminarily found to be part of the 3 See Memorandum, ‘‘Certain Chassis and China-wide entity. For a full description Subassemblies Thereof from the People’s Republic of the methodology underlying of China: Decision Memorandum for Preliminary Commerce’s preliminary determination, Affirmative Determination of Sales at Less Than see the Preliminary Decision Fair Value,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum. jbell on DSKJLSW7X2PROD with NOTICES The products covered by this investigation are certain chassis and subassemblies thereof from China. For a complete description of the scope of this investigation, see Appendix I. Memorandum). 4 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997). 5 See Initiation Notice. 6 See Guangdong Fuwa Heavy Industries Co., Ltd. (Fuwa)’s Letter, ‘‘Certain Chassis and Subassemblies Thereof from the People’s Republic of China: Scope Comments,’’ dated September 22, 2020; see also CIMC Vehicle Co., Ltd. (CIMC)’s Letter, ‘‘Certain Chassis and Subassemblies Thereof from the People’s Republic of China: Scope Comments,’’ dated September 22, 2020; TRP International, LLC’s Letter, ‘‘Scope Comments Regarding Certain Chassis and Subassemblies Thereof from the People’s Republic of China (A– 570–135 & C–570–136); TRP International, LLC,’’ dated September 22, 2020; and Master Tow, Inc.’s Letter, ‘‘Certain Chassis and Subassemblies Thereof from the People’s Republic of China; Submission of Scope Comments,’’ dated September 22, 2020. 7 See Petitioner’s Letter, ‘‘Certain Chassis and Subassemblies Thereof form the People’s Republic of China: Petitioner’s Scope Rebuttal Comments,’’ dated October 5, 2020. VerDate Sep<11>2014 20:27 Mar 03, 2021 Jkt 253001 Combination Rates In the Initiation Notice,12 Commerce stated that it would calculate producer/ exporter combination rates for the respondents that are eligible for a separate rate in this investigation. Policy 8 See Memorandum, ‘‘Certain Chassis and Subassemblies Thereof from the People’s Republic of China: Scope Comments Preliminary Decision Memorandum,’’ dated February 9, 2021 (Preliminary Scope Decision Memorandum). 9 See Memorandum, ‘‘Scope Briefing Schedule,’’ February 11, 2021. 10 See CIMC’s Letter, ‘‘Certain Chassis and Subassemblies Thereof from the People’s republic of China: Scope Case Brief,’’ dated February 16, 2021. 11 See Memorandum, ‘‘Quantity & Value Questionnaire,’’ dated October 7, 2020. 12 See Initiation Notice. PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 Bulletin 05.1 describes this practice.13 In this case, because no companies qualified for a separate rate, producer/ exporter combination rates were not calculated for this preliminary determination.14 Preliminary Determination Commerce preliminarily determines that the following estimated weightedaverage dumping margins exist during the period January 1, 2020, and June 30, 2020: Producer/ exporter China-Wide Entity Estimated weightedaverage dumping margin (percent) Estimated weightedaverage dumping margin adjusted for export subsidy offset(s) (percent) 188.05 182.28 Suspension of Liquidation In accordance with section 733(d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of subject merchandise, as described in the scope of the investigation section, entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register, as discussed below. Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the weighted average amount by which normal value exceeds U.S. price, as indicated in the chart above, as follows: (1) For all combinations of Chinese producers/ exporters of subject merchandise that have not established eligibility for their own separate rates, the cash deposit rate will be equal to the estimated weightedaverage dumping margin established for the China-wide entity; and (2) for all third-county exporters of subject merchandise not listed in the table above, the cash deposit rate is the cash deposit rate applicable to the Chinese producer/exporter combination (or China-wide entity) that supplied that third-country exporter. To determine the cash deposit rate, Commerce normally adjusts the estimated weighted-average dumping margin by the amount of domestic 13 See Enforcement and Compliance’s Policy Bulletin No. 05.1, regarding, ‘‘Separate-Rates Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market Economy Countries,’’ (April 5, 2005) (Policy Bulletin 05.1), available on Commerce’s website at http://enforcement.trade.gov/policy/bull05-1.pdf. 14 See Preliminary Decision Memorandum. E:\FR\FM\04MRN1.SGM 04MRN1 12618 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices subsidy pass-through and export subsidies determined in a companion CVD proceeding when CVD provisional measures are in effect. Accordingly, where Commerce has made a preliminary affirmative determination for domestic subsidy pass-through or export subsidies, Commerce has offset the calculated estimated weightedaverage dumping margin by the appropriate rate(s). As discussed in the Preliminary Decision Memorandum, we made no adjustment for domestic subsidy pass-through. As further explained in the Preliminary Decision Memorandum, we made an adjustment for export subsidies found in the companion CVD investigation.15 The adjusted rate may be found in the ‘‘Preliminary Determination’’ section’s chart of estimated weighted-average dumping margins above. Should provisional measures in the companion CVD investigation expire prior to the expiration of provisional measures in this LTFV investigation, Commerce will direct CBP to begin collecting cash deposits at a rate equal to the estimated weighted-average dumping margin calculated in this preliminary determination unadjusted for export subsidies at the time the CVD provisional measures expire. These suspension of liquidation instructions will remain in effect until further notice. Disclosure Normally, Commerce discloses to interested parties the calculations performed in connection with a preliminary determination within five days of its public announcement or, if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b). However, because Commerce preliminarily determined that the mandatory respondents are considered to be part of the China-wide entity and assigned the China-wide entity a rate that is based solely on the petition, there are no calculations to disclose. jbell on DSKJLSW7X2PROD with NOTICES Verification Because the mandatory respondents in this investigation did not provide information requested by Commerce by the established deadline and Commerce preliminarily determines in accordance with section 776(b) of the Act that each of the mandatory respondents has been uncooperative, verification will not be conducted. 15 See Preliminary Decision Memorandum at 17. VerDate Sep<11>2014 20:27 Mar 03, 2021 Jkt 253001 Public Comment Case briefs or other written comments may be submitted to the Assistant Secretary for Enforcement and Compliance no later than 30 days after the of publication of the preliminary determination. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than seven days after the deadline date for case briefs.16 Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this investigation are encouraged to submit with each argument: (1) A statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities. Note that Commerce has modified certain of its requirements for serving documents containing business proprietary information until further notice.17 As noted above, the deadline has passed for filing case briefs on scope issues. Therefore, the case briefs that are due after the preliminary determination may not include any scope issues. Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, within 30 days after the date of publication of this notice. Requests should contain the party’s name, address, and telephone number, the number of participants, whether any participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, Commerce intends to hold the hearing at a time and date to be determined. Parties should confirm the date and time of the hearing two days before the scheduled date. Final Determination Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that Commerce will issue the final determination within 75 days after the date of its preliminary determination. Accordingly, Commerce will make its final determination no later than 75 days after the signature date of this preliminary determination. International Trade Commission Notification In accordance with section 733(f) of the Act, Commerce will notify the International Trade Commission (ITC) of 16 See 19 CFR 351.309; 19 CFR 351.303 (for general filing requirements); see also Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 41363 (July 10, 2020) (Temporary Rule). 17 See Temporary Rule. PO 00000 Frm 00026 Fmt 4703 Sfmt 4703 its preliminary determination of sales at LTFV. If the final determination is affirmative, the ITC will make its determination before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of certain chassis and subassemblies thereof are materially injuring, or threaten to injury to, the U.S. industry. Notification to Interested Parties This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c). Dated: February 25, 2021. Christian Marsh, Acting Assistant Secretary for Enforcement and Compliance. Appendix I Scope of the Investigation The merchandise covered by this investigation is chassis and subassemblies thereof, whether finished or unfinished, whether assembled or unassembled, whether coated or uncoated, regardless of the number of axles, for carriage of containers, or other payloads (including self-supporting payloads) for road, marine roll-on/roll-off (RORO) and/or rail transport. Chassis are typically, but are not limited to, rectangular framed trailers with a suspension and axle system, wheels and tires, brakes, a lighting and electrical system, a coupling for towing behind a truck tractor, and a locking system or systems to secure the shipping container or containers to the chassis using twistlocks, slide pins or similar attachment devices to engage the corner fittings on the container or other payload. Subject merchandise includes, but is not limited to, the following subassemblies: • Chassis frames, or sections of chassis frames, including kingpin assemblies, bolsters consisting of transverse beams with locking or support mechanisms, goosenecks, drop assemblies, extension mechanisms and/ or rear impact guards; • Running gear assemblies or axle assemblies for connection to the chassis frame, whether fixed in nature or capable of sliding fore and aft or lifting up and lowering down, which may or may not include suspension(s) (mechanical or pneumatic), wheel end components, slack adjusters, axles, brake chambers, locking pins, and tires and wheels; • Landing gear assemblies, for connection to the chassis frame, capable of supporting the chassis when it is not engaged to a tractor; and • Assemblies that connect to the chassis frame or a section of the chassis frame, such as, but not limited to, pintle hooks or B-trains (which include a fifth wheel), which are capable of connecting a chassis to a converter dolly or another chassis. Importation of any of these subassemblies, whether assembled or unassembled, constitutes an unfinished chassis for purposes of this investigation. E:\FR\FM\04MRN1.SGM 04MRN1 Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices Subject merchandise also includes chassis, whether finished or unfinished, entered with or for further assembly with components such as, but not limited to: Hub and drum assemblies, brake assemblies (either drum or disc), axles, brake chambers, suspensions and suspension components, wheel end components, landing gear legs, spoke or disc wheels, tires, brake control systems, electrical harnesses and lighting systems. Processing of finished and unfinished chassis and components such as trimming, cutting, grinding, notching, punching, drilling, painting, coating, staining, finishing, assembly, or any other processing either in the country of manufacture of the in-scope product or in a third country does not remove the product from the scope. Inclusion of other components not identified as comprising the finished or unfinished chassis does not remove the product from the scope. Individual components entered and sold by themselves are not subject to the investigation, but components entered with or for further assembly with a finished or unfinished chassis are subject merchandise. A finished chassis is ultimately comprised of several different types of subassemblies. Within each subassembly there are numerous components that comprise a given subassembly. This scope excludes dry van trailers, refrigerated van trailers and flatbed trailers. Dry van trailers are trailers with a wholly enclosed cargo space comprised of fixed sides, nose, floor and roof, with articulated panels (doors) across the rear and occasionally at selected places on the sides, with the cargo space being permanently incorporated in the trailer itself. Refrigerated van trailers are trailers with a wholly enclosed cargo space comprised of fixed sides, nose, floor and roof, with articulated panels (doors) across the rear and occasionally at selected places on the sides, with the cargo space being permanently incorporated in the trailer and being insulated, possessing specific thermal properties intended for use with selfcontained refrigeration systems. Flatbed (or platform) trailers consist of load-carrying main frames and a solid, flat or stepped loading deck or floor permanently incorporated with and supported by frame rails and cross members. The finished and unfinished chassis subject to this investigation are typically classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheadings: 8716.39.0090 and 8716.90.5060. Imports of finished and unfinished chassis may also enter under HTSUS subheading 8716.90.5010. While the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise under investigation is dispositive. jbell on DSKJLSW7X2PROD with NOTICES Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Period of Investigation IV. Scope Comments V. Respondent Selection VerDate Sep<11>2014 20:27 Mar 03, 2021 Jkt 253001 VI. Discussion of the Methodology VII. Adjustment Under Section 777A(f) of the Act VIII. Adjustment to Cash Deposit Rate for Export Subsidies IX. ITC Notification X. Recommendation [FR Doc. 2021–04409 Filed 3–3–21; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–120] Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof From the People’s Republic of China: Countervailing Duty Order and Amended Final Affirmative Countervailing Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: Based on affirmative final determinations by the Department of Commerce (Commerce) and the International Trade Commission (ITC), Commerce is issuing a countervailing duty order on certain vertical shaft engines between 225cc and 999cc, and parts thereof (vertical shaft engines) from the People’s Republic of China (China). In addition, Commerce is amending its final determination with respect to vertical shaft engines from China to correct ministerial errors. DATES: Applicable March 4, 2021. FOR FURTHER INFORMATION CONTACT: Andrew Huston, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4261. SUPPLEMENTARY INFORMATION: AGENCY: Background In accordance with sections 705(a), 705(d), and 777(i)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(c), on January 11, 2021, Commerce published its affirmative final determination that countervailable subsidies are being provided to producers and exporters of vertical shaft engines from China.1 In the investigation of vertical shaft engines 1 See Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof from the People’s Republic of China: Final Affirmative Countervailing Duty Determination and Final Negative Critical Circumstances Determination, 86 FR 1933 (January 11, 2021) (Final Determination), and accompanying Issues and Decision Memorandum. PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 12619 from China, the petitioners and a mandatory respondent submitted timely allegations on the record that Commerce made certain ministerial errors in the final countervailing duty determination on vertical shaft engines from China. Section 705(e) of the Act and 19 CFR 351.224(f) define ministerial errors as errors in addition, subtraction, or other arithmetic function, clerical errors resulting from inaccurate copying, duplication, or the like, and any other type of unintentional error which Commerce considers ministerial. We reviewed the allegations and determined that we made certain ministerial errors in the final countervailing duty determination on vertical shaft engines from China. See ‘‘Amendment to the Final Determination’’ section below for further discussion. On February 24, 2021, the ITC notified Commerce of its affirmative final determination that pursuant to sections 705(b)(1)(A)(i) and 705(d) of the Act, that an industry in the United States is materially injured by reason of subsidized imports of subject merchandise from China.2 Scope of the Order The products covered by this order are certain large vertical shaft engines from China. For a complete description of the scope of the order, see the appendix to this notice. Amendment to the Final Determination of Vertical Shaft Engines From China On January 21, 2021, co-petitioner Kohler Co. (Kohler) and mandatory respondent Loncin Motor Co., Ltd. (Loncin) submitted timely ministerial error allegations regarding the Final Determination.3 On January 29, 2012, Kohler, mandatory respondent Chongqing Zongshen General Power Machine Co., Ltd. (Zongshen) and interested party MTD Products Inc. (MTD) submitted timely responses to the ministerial allegations.4 2 See ITC Letter, ‘‘Notification of ITC Final Determination,’’ dated February 24, 2021 (ITC Notification Letter). 3 See Kohler’s Letter, ‘‘Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof, from the People’s Republic of China: Ministerial Error Allegations,’’ dated January 21, 2021 (Kohler Allegations); Loncin’s Letter, ‘‘Loncin Comments on Ministerial Errors in the Final Determination and the Disclosed Calculations for Loncin: Countervailing Duty Investigation of Certain Vertical Shaft Engines Between 225CC and 999CC, and Parts Thereof From the People’s Republic of China (C–570–120),’’ dated January 21, 2021 (Loncin Allegations). 4 See Kohler’s Letter, ‘‘Certain Vertical Shaft Engines Between 225cc and 999cc, and Parts Thereof, from the People’s Republic of China: E:\FR\FM\04MRN1.SGM Continued 04MRN1

Agencies

[Federal Register Volume 86, Number 41 (Thursday, March 4, 2021)]
[Notices]
[Pages 12616-12619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04409]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-135]


Certain Chassis and Subassemblies Thereof From the People's 
Republic of China: Preliminary Affirmative Determination of Sales at 
Less Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that certain chassis and subassemblies thereof 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 (POI) is January 1, 2020, through June 30, 2020. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable March 4, 2021.

FOR FURTHER INFORMATION CONTACT: Hermes Pinilla or Mary Kolberg, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-5439 or (202) 482-1785, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on August 19, 
2020.\1\ On October 20, 2020, Commerce postponed the preliminary 
determination of this investigation, and the revised deadline is now 
February 25, 2021.\2\ For a complete description of the events that 
followed the initiation of this

[[Page 12617]]

investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. The Preliminary Decision Memorandum is a 
public document and is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
https://access.trade.gov. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of 
the Preliminary Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \1\ See Certain Chassis and Subassemblies Thereof from the 
People's Republic of China: Initiation of Less-Than-Fair-Value 
Investigations, 85 FR 52552 (August 19, 2020) (Initiation Notice).
    \2\ See Certain Chassis and Subassemblies Thereof from the 
People's Republic of China: Postponement of Preliminary 
Determination in the Less-Than-Fair-Value Investigation, 85 FR 68559 
(October 20, 2020).
    \3\ See Memorandum, ``Certain Chassis and Subassemblies Thereof 
from the People's Republic of China: Decision Memorandum for 
Preliminary Affirmative Determination of Sales at Less Than Fair 
Value,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are certain chassis and 
subassemblies thereof from China. For a complete description of the 
scope of this investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ On September 22, 
2020, we received comments from respondent interested parties and the 
Coalition of American Chassis Manufacturers (the petitioner) on the 
scope of the investigation.\6\ On October 5, 2020, we received scope 
rebuttal comments from the petitioner.\7\ On February 9, 2021, we 
issued the Preliminary Scope Decision Memorandum.\8\ For a summary of 
all scope related comments submitted to the record for this 
investigation and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum. In the 
Preliminary Scope Decision Memorandum, Commerce preliminarily modified 
the scope language as it appeared in the Initiation Notice. See the 
revised scope in Appendix I to this notice. On February 11, 2021, we 
established a scope briefing schedule \9\ and timely received a scope 
case brief from CIMC.\10\ The scope comments from CIMC will be 
addressed in the final determination of the companion countervailing 
duty (CVD) investigation due no later than March 15, 2021.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Guangdong Fuwa Heavy Industries Co., Ltd. (Fuwa)'s 
Letter, ``Certain Chassis and Subassemblies Thereof from the 
People's Republic of China: Scope Comments,'' dated September 22, 
2020; see also CIMC Vehicle Co., Ltd. (CIMC)'s Letter, ``Certain 
Chassis and Subassemblies Thereof from the People's Republic of 
China: Scope Comments,'' dated September 22, 2020; TRP 
International, LLC's Letter, ``Scope Comments Regarding Certain 
Chassis and Subassemblies Thereof from the People's Republic of 
China (A-570-135 & C-570-136); TRP International, LLC,'' dated 
September 22, 2020; and Master Tow, Inc.'s Letter, ``Certain Chassis 
and Subassemblies Thereof from the People's Republic of China; 
Submission of Scope Comments,'' dated September 22, 2020.
    \7\ See Petitioner's Letter, ``Certain Chassis and Subassemblies 
Thereof form the People's Republic of China: Petitioner's Scope 
Rebuttal Comments,'' dated October 5, 2020.
    \8\ See Memorandum, ``Certain Chassis and Subassemblies Thereof 
from the People's Republic of China: Scope Comments Preliminary 
Decision Memorandum,'' dated February 9, 2021 (Preliminary Scope 
Decision Memorandum).
    \9\ See Memorandum, ``Scope Briefing Schedule,'' February 11, 
2021.
    \10\ See CIMC's Letter, ``Certain Chassis and Subassemblies 
Thereof from the People's republic of China: Scope Case Brief,'' 
dated February 16, 2021.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Pursuant to section 776(a) and (b) of the Act, 
we have preliminarily relied upon facts otherwise available, with 
adverse inferences for the China-wide entity. The China-wide entity 
includes each of the companies selected for individual examination 
(CIMC and Fuwa), as well as the companies that received but did not 
answer Commerce's quantity and value questionnaire.\11\ Because none of 
the companies responded to the best of their ability to Commerce's 
questionnaires, we assigned the highest margin alleged in the petition 
(i.e., 188.05 percent) to the China-wide entity. Furthermore, because 
neither CIMC nor Fuwa demonstrated eligibility for a separate rate, 
both companies are preliminarily found to be part of the China-wide 
entity. For a full description of the methodology underlying Commerce's 
preliminary determination, see the Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \11\ See Memorandum, ``Quantity & Value Questionnaire,'' dated 
October 7, 2020.
---------------------------------------------------------------------------

Combination Rates

    In the Initiation Notice,\12\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\13\ In this case, because no companies 
qualified for a separate rate, producer/exporter combination rates were 
not calculated for this preliminary determination.\14\
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    \12\ See Initiation Notice.
    \13\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
    \14\ See Preliminary Decision Memorandum.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist during the period January 1, 
2020, and June 30, 2020:

------------------------------------------------------------------------
                                                              Estimated
                                                              weighted-
                                                 Estimated     average
                                                 weighted-     dumping
                                                  average       margin
              Producer/ exporter                  dumping      adjusted
                                                   margin     for export
                                                 (percent)     subsidy
                                                              offset(s)
                                                              (percent)
------------------------------------------------------------------------
China-Wide Entity.............................      188.05       182.28
------------------------------------------------------------------------

Suspension of Liquidation

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

[[Page 12618]]

subsidy pass-through and export subsidies determined in a companion CVD 
proceeding when CVD provisional measures are in effect. Accordingly, 
where Commerce has made a preliminary affirmative determination for 
domestic subsidy pass-through or export subsidies, Commerce has offset 
the calculated estimated weighted-average dumping margin by the 
appropriate rate(s). As discussed in the Preliminary Decision 
Memorandum, we made no adjustment for domestic subsidy pass-through. As 
further explained in the Preliminary Decision Memorandum, we made an 
adjustment for export subsidies found in the companion CVD 
investigation.\15\ The adjusted rate may be found in the ``Preliminary 
Determination'' section's chart of estimated weighted-average dumping 
margins above.
---------------------------------------------------------------------------

    \15\ See Preliminary Decision Memorandum at 17.
---------------------------------------------------------------------------

    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margin calculated in this preliminary determination unadjusted for 
export subsidies at the time the CVD provisional measures expire. These 
suspension of liquidation instructions will remain in effect until 
further notice.

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a preliminary determination within five 
days of its public announcement or, if there is no public announcement, 
within five days of the date of publication of this notice in 
accordance with 19 CFR 351.224(b). However, because Commerce 
preliminarily determined that the mandatory respondents are considered 
to be part of the China-wide entity and assigned the China-wide entity 
a rate that is based solely on the petition, there are no calculations 
to disclose.

Verification

    Because the mandatory respondents in this investigation did not 
provide information requested by Commerce by the established deadline 
and Commerce preliminarily determines in accordance with section 776(b) 
of the Act that each of the mandatory respondents has been 
uncooperative, verification will not be conducted.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than 30 
days after the of publication of the preliminary determination. 
Rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than seven days after the deadline date for case 
briefs.\16\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in this investigation are 
encouraged to submit with each argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of authorities. 
Note that Commerce has modified certain of its requirements for serving 
documents containing business proprietary information until further 
notice.\17\
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    \16\ See 19 CFR 351.309; 19 CFR 351.303 (for general filing 
requirements); see also Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19; Extension of Effective Period, 85 FR 
41363 (July 10, 2020) (Temporary Rule).
    \17\ See Temporary Rule.
---------------------------------------------------------------------------

    As noted above, the deadline has passed for filing case briefs on 
scope issues. Therefore, the case briefs that are due after the 
preliminary determination may not include any scope issues.
    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm the date and time of the hearing two 
days before the scheduled date.

Final Determination

    Section 735(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that 
Commerce will issue the final determination within 75 days after the 
date of its preliminary determination. Accordingly, Commerce will make 
its final determination no later than 75 days after the signature date 
of this preliminary determination.

International Trade Commission Notification

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

Notification to Interested Parties

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

    Dated: February 25, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is chassis and 
subassemblies thereof, whether finished or unfinished, whether 
assembled or unassembled, whether coated or uncoated, regardless of 
the number of axles, for carriage of containers, or other payloads 
(including self-supporting payloads) for road, marine roll-on/roll-
off (RORO) and/or rail transport. Chassis are typically, but are not 
limited to, rectangular framed trailers with a suspension and axle 
system, wheels and tires, brakes, a lighting and electrical system, 
a coupling for towing behind a truck tractor, and a locking system 
or systems to secure the shipping container or containers to the 
chassis using twistlocks, slide pins or similar attachment devices 
to engage the corner fittings on the container or other payload.
    Subject merchandise includes, but is not limited to, the 
following subassemblies:
     Chassis frames, or sections of chassis frames, 
including kingpin assemblies, bolsters consisting of transverse 
beams with locking or support mechanisms, goosenecks, drop 
assemblies, extension mechanisms and/or rear impact guards;
     Running gear assemblies or axle assemblies for 
connection to the chassis frame, whether fixed in nature or capable 
of sliding fore and aft or lifting up and lowering down, which may 
or may not include suspension(s) (mechanical or pneumatic), wheel 
end components, slack adjusters, axles, brake chambers, locking 
pins, and tires and wheels;
     Landing gear assemblies, for connection to the chassis 
frame, capable of supporting the chassis when it is not engaged to a 
tractor; and
     Assemblies that connect to the chassis frame or a 
section of the chassis frame, such as, but not limited to, pintle 
hooks or B-trains (which include a fifth wheel), which are capable 
of connecting a chassis to a converter dolly or another chassis.
    Importation of any of these subassemblies, whether assembled or 
unassembled, constitutes an unfinished chassis for purposes of this 
investigation.

[[Page 12619]]

    Subject merchandise also includes chassis, whether finished or 
unfinished, entered with or for further assembly with components 
such as, but not limited to: Hub and drum assemblies, brake 
assemblies (either drum or disc), axles, brake chambers, suspensions 
and suspension components, wheel end components, landing gear legs, 
spoke or disc wheels, tires, brake control systems, electrical 
harnesses and lighting systems.
    Processing of finished and unfinished chassis and components 
such as trimming, cutting, grinding, notching, punching, drilling, 
painting, coating, staining, finishing, assembly, or any other 
processing either in the country of manufacture of the in-scope 
product or in a third country does not remove the product from the 
scope. Inclusion of other components not identified as comprising 
the finished or unfinished chassis does not remove the product from 
the scope.
    Individual components entered and sold by themselves are not 
subject to the investigation, but components entered with or for 
further assembly with a finished or unfinished chassis are subject 
merchandise. A finished chassis is ultimately comprised of several 
different types of subassemblies. Within each subassembly there are 
numerous components that comprise a given subassembly.
    This scope excludes dry van trailers, refrigerated van trailers 
and flatbed trailers. Dry van trailers are trailers with a wholly 
enclosed cargo space comprised of fixed sides, nose, floor and roof, 
with articulated panels (doors) across the rear and occasionally at 
selected places on the sides, with the cargo space being permanently 
incorporated in the trailer itself. Refrigerated van trailers are 
trailers with a wholly enclosed cargo space comprised of fixed 
sides, nose, floor and roof, with articulated panels (doors) across 
the rear and occasionally at selected places on the sides, with the 
cargo space being permanently incorporated in the trailer and being 
insulated, possessing specific thermal properties intended for use 
with self-contained refrigeration systems. Flatbed (or platform) 
trailers consist of load-carrying main frames and a solid, flat or 
stepped loading deck or floor permanently incorporated with and 
supported by frame rails and cross members.
    The finished and unfinished chassis subject to this 
investigation are typically classified in the Harmonized Tariff 
Schedule of the United States (HTSUS) at subheadings: 8716.39.0090 
and 8716.90.5060. Imports of finished and unfinished chassis may 
also enter under HTSUS subheading 8716.90.5010. While the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise under investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Respondent Selection
VI. Discussion of the Methodology
VII. Adjustment Under Section 777A(f) of the Act
VIII. Adjustment to Cash Deposit Rate for Export Subsidies
IX. ITC Notification
X. Recommendation

[FR Doc. 2021-04409 Filed 3-3-21; 8:45 am]
BILLING CODE 3510-DS-P