Certain Chassis and Subassemblies Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 15186-15188 [2021-05815]
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15186
Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–136]
Certain Chassis and Subassemblies
Thereof From the People’s Republic of
China: Final Affirmative Countervailing
Duty Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that
countervailable subsidies are being
provided to producers and exporters of
certain chassis and subassemblies
thereof (chassis) from the People’s
Republic of China (China). The period
of investigation is January 1, 2019,
through December 31, 2019.
DATES: Applicable March 22, 2021.
FOR FURTHER INFORMATION CONTACT:
William Langley or Nicholas
Czajkowski, 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) 482–3861 or
(202) 482–1395, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
jbell on DSKJLSW7X2PROD with NOTICES
Background
The petitioner in this investigation is
the Coalition of American Chassis
Manufacturers. In addition to the
Government of China (GOC), the
selected mandatory respondents are
Qingdao CIMC Special Vehicles Co.,
Ltd. (QCVC) and Dongguan CIMC
Vehicle Co., Ltd. (DCVC) (collectively,
with other cross-owned companies,
CIMC).
On January 4, 2021 Commerce
published in the Federal Register the
Preliminary Determination of this
investigation.1 A summary of the events
that occurred since Commerce
published the Preliminary
Determination, as well as a full
discussion of the issues raised by parties
for this final determination, may be
found in the Issues and Decision
Memorandum.2 The Issues and Decision
Memorandum is a public document and
1 See Certain Chassis and Subassemblies Thereof
from the People’s Republic of China: Preliminary
Affirmative Countervailing Duty Determination, 86
FR 56 (January 4, 2021) (Preliminary
Determination), and accompanying Preliminary
Decision Memorandum.
2 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Determination in the
Countervailing Duty Investigation of Certain
Chassis and Subassemblies Thereof from the
People’s Republic of China,’’ dated concurrently
with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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18:46 Mar 19, 2021
Jkt 253001
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 Issues and
Decision Memorandum can be accessed
directly at https://enforcement.trade.gov/
frn/.
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
During the course of this and the
concurrent antidumping duty (AD)
investigation, Commerce received scope
comments from interested parties.
Commerce issued a Preliminary Scope
Decision Memorandum to address these
comments.3 Subsequently, we received
comments from interested parties on the
Preliminary Scope Decision
Memorandum, which we address in the
Final Scope Decision Memorandum,
dated contemporaneously with, and
hereby adopted by, this final
determination.4 Commerce is modifying
the scope language as it appeared in the
Preliminary Determination. See
Appendix I for the final scope of this
investigation.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by parties in
this investigation are discussed in the
Issues and Decision Memorandum. A
list of the issues raised by parties raised
is attached to this notice at Appendix II.
Methodology
Commerce conducted this
investigation in accordance with section
701 of the Tariff Act of 1930, as
amended (the Act). For each of the
subsidy programs found
countervailable, Commerce determines
that there is a subsidy, i.e., a financial
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient,
3 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).
4 See Memorandum, ‘‘Antidumping Duty and
Countervailing Duty Investigations of Certain
Chassis and Subassemblies Thereof from the
People’s Republic of China: Scope Comments
Decision Memorandum for the Final
Determinations,’’ dated March 15, 2021 (Final
Scope Decision Memorandum).
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Fmt 4703
Sfmt 4703
and that the subsidy is specific.5 For a
full description of the methodology
underlying our final determination, see
the Issues and Decision Memorandum.
In making this final determination,
Commerce is relying, in part, on facts
otherwise available, including adverse
facts available (AFA), pursuant to
sections 776(a) and (b) of the Act. For
a full discussion of our application of
AFA, see the Preliminary Determination
and the section ‘‘Use of Facts Otherwise
Available and Adverse Inference’’ in the
accompanying Issues and Decision
Memorandum.6
Changes Since the Preliminary
Determination
Based on our review and analysis of
the comments received from parties, as
well as additional information collected
in questionnaires issued subsequent to
the Preliminary Determination, we
made certain changes to CIMC’s subsidy
rate calculations. For a discussion of
these changes, see the Issues and
Decision Memorandum.
Verification
Commerce was unable to conduct onsite verification of the information
relied upon in making its final
determination in this investigation.
However, we took additional steps in
lieu of an on-site verification to verify
the information relied upon in making
this final determination, in accordance
with section 782(i) of the Act.7
All-Others Rate
As discussed in the Preliminary
Determination, Commerce selected the
all-others rate using the countervailable
subsidy rate calculated for the
mandatory respondent in accordance
with section 705(c)(5)(A) of the Act.8
Section 705(c)(5)(A) of the Act provides
that this rate shall be an amount equal
to the weighted average of the estimated
subsidy rates established for those
companies individually examined,
excluding any zero and de minimis rates
and any rates based entirely under
section 776 of the Act.
In this investigation, Commerce
calculated a rate for CIMC that is not
5 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; section 771(5)(E)
of the Act regarding benefit; and section 771(5A) of
the Act regarding specificity.
6 See Preliminary Decision Memorandum at ‘‘Use
of Facts Otherwise Available and Adverse
Inferences’’; see also Issues and Decision
Memorandum at ‘‘Use of Facts Otherwise Available
and Adverse Inference.’’
7 See Commerce’s Letter, ‘‘Countervailing Duty
Investigation of Certain Chassis and Subassemblies
Thereof: CIMC Vehicles (Group) Co., Ltd.
Verification Questionnaire,’’ dated February 3,
2021.
8 See Preliminary Determination.
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Federal Register / Vol. 86, No. 53 / Monday, March 22, 2021 / Notices
zero, de minimis, or based entirely on
facts otherwise available. Consequently,
the rate calculated for CIMC is also
assigned as the rate for all other
producers and exporters.
Final Determination
Commerce determines that the
following estimated countervailable
subsidy rates exist:
Subsidy
rate
(percent)
Company
Qingdao CIMC Special Vehicles
Co., Ltd. and Dongguan CIMC
Vehicles Co., Ltd.9 ..................
All Others ....................................
39.14
39.14
Disclosure
Commerce intends to disclose to
interested parties its calculations and
analysis performed in this final
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).
Continuation of Suspension of
Liquidation
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As a result of our Preliminary
Determination and pursuant to section
703(d)(1)(B) and (d)(2) of the Act, we
instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation
of entries of subject merchandise from
China that were entered, or withdrawn
from warehouse, for consumption,
effective January 4, 2020, which is the
date of publication of the Preliminary
Determination in the Federal Register.
In accordance with section
705(c)(1)(C) of the Act, we are directing
CBP to continue to suspend liquidation
of all imports of the subject
merchandise from China that are
entered, or withdrawn from warehouse,
for consumption on or after the date of
publication of this notice in the Federal
Register. The suspension of liquidation
instructions will remain in effect until
further notice. We are also directing
CBP to collect countervailing duty
deposits at the rates described above.
9 Commerce finds the following companies to be
cross-owned with Qingdao CIMC Special Vehicles
Co., Ltd. and Dongguan CIMC Vehicle Co., Ltd.:
CIMC Vehicles (Group) Co., Ltd.; Shenzhen CIMC
Vehicle Co., Ltd.; Zhumadian CIMC Huajun Casting
Co., Ltd.; China International Marine Containers
(Group) Co., Ltd.; Liangshan CIMC Dongyue
Vehicles Co., Ltd.; Shandong Wanshida Special
Vehicle Manufacturing Co., Ltd.; Yangzhou CIMC
Tonghua Special Vehicles Co., Ltd.; Zhumadian
CIMC Huajun Vehicle Co., Ltd.; Gansu CIMC
Huajun Vehicles Co., Ltd.; CIMC Vehicles
(Liaoning) Co., Ltd.; and Zhumadian CIMC Wanjia
Axle Co., Ltd.
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18:46 Mar 19, 2021
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15187
If the U.S. International Trade
Commission (ITC) issues a final
affirmative injury determination, we
will issue a CVD order, and continue to
require a cash deposit of estimated
countervailing duties for such entries of
subject merchandise in the amounts
indicated above, in accordance with
section 706(a) of the Act. If the ITC
determines that material injury, or
threat of material injury, does not exist,
this proceeding will be terminated, and
all estimated duties deposited or
securities posted as a result of the
suspension of liquidation will be
refunded or canceled.
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return/
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
ITC Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of its
final affirmative determination that
countervailable subsidies are being
provided to producers and exporters of
chassis from China. Because the final
determination in this proceeding is
affirmative, in accordance with section
705(b) of the Act, the ITC will make its
final determination as to whether the
domestic industry in the United States
is materially injured, or threatened with
material injury, by reason of imports of
corrosion inhibitors from China no later
than 45 days after our final
determination. In addition, we are
making available to the ITC all nonprivileged and nonproprietary
information related to this investigation.
If the ITC determines that material
injury or threat of material injury does
not exist, this proceeding will be
terminated and all cash deposits will be
refunded. If the ITC determines that
such injury does exist, Commerce will
issue a countervailing duty order
directing CBP to assess, upon further
instruction by Commerce,
countervailing duties on all imports of
the subject merchandise that are
entered, or withdrawn from warehouse,
for consumption on or after the effective
date of the suspension of liquidation, as
discussed above in the ‘‘Continuation of
Suspension of Liquidation’’ section. We
will allow the ITC access to all
privileged and business proprietary
information in our files, provided the
ITC confirms that it will not disclose
such information, either publicly or
under an administrative protective order
(APO), without the written consent of
the Assistant Secretary for Enforcement
and Compliance.
Dated: March 15, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement
and Compliance.
Notification Regarding APO
In the event that the ITC issues a final
negative injury determination, this
notice will serve as the only reminder
to parties subject to the APO of their
responsibility concerning the
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Fmt 4703
Sfmt 4703
Notification to Interested Parties
This determination is issued and
published pursuant to sections 705(d)
and 771(i) of the Act, and 19 CFR
351.210(c).
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.
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Federal Register / Vol. 86, No. 53 / Monday, March 22, 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.
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Appendix II
List of Topics Discussed in the Final
Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Otherwise Available and
Adverse Inferences
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18:46 Mar 19, 2021
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V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether CIMC and Its CrossOwned Affiliates are State-Owned
Comment 2: Whether the Provision of
International Ocean Shipping Services
for LTAR is Countervailable
Comment 3: Whether Shipping Services
Provided by Non-Chinese Firms and For
Merchandise Not Subject to the
Investigation are Countervailable
Comment 4: Whether the Application of
Adverse Facts Available to the Export
Buyer’s Credit Program is Warranted
Comment 5: Whether the Application of
Adverse Facts Available is Warranted in
Finding the Provision of Electricity for
LTAR Countervailable
Comment 6: Whether Electricity
Surcharges are Countervailable
Comment 7: Whether Commerce Should
use Alternative Benchmark Rates for
Land-Use Rights
Comment 8: Whether Intercompany Loans
are Countervailable
Comment 9: Whether Commercial Loans
are Countervailable
Comment 10: Whether Subsidies to Huajun
Casting’s Production are Attributable to
Chassis Production
Comment 11: Whether Commerce Should
Have Initiated an Investigation into
Currency Undervaluation
Comment 12: Whether CIMC Failed
Verification with Respect to Reported
Input Purchases
VII. Recommendation
[FR Doc. 2021–05815 Filed 3–19–21; 8:45 am]
BILLING CODE 3510–DS–P
(202) 482–2437 and (202) 482–1168,
respectively.
SUPPLEMENTARY INFORMATION:
Background
On October 30, 2020, Commerce
published its Preliminary Determination
in the antidumping duty investigation of
non-refillable cylinders from China.1 A
summary of the events that occurred
since Commerce published the
Preliminary Determination, as well as a
full discussion of the issues raised by
parties for this final determination, may
be found in the Issues and Decision
Memorandum.2
Period of Investigation
The POI is July 1, 2019, through
December 31, 2019.
Scope of the Investigation
The products covered by this
investigation are certain non-refillable
steel cylinders from China. For a
complete description of the scope of this
investigation, see Appendix I.
Scope Comments
On October 23, 2020, we issued the
Preliminary Scope Decision
Memorandum.3 We received no scope
case briefs from interested parties.
Therefore, Commerce has made no
changes to the scope of this
investigation since the Preliminary
Determination.
DEPARTMENT OF COMMERCE
Analysis of Comments Received
International Trade Administration
All issues raised in the case briefs and
rebuttal briefs submitted by interested
parties in this proceeding are discussed
in the Issues and Decision
Memorandum. A list of the issues raised
by parties and responded to by
Commerce in the Issues and Decision
Memorandum is attached to this notice
as Appendix II. The Issues and Decision
Memorandum is a public document and
is available electronically via
Enforcement and Compliance’s
[A–570–126]
Non-Refillable Steel Cylinders from the
People’s Republic of China: Final
Affirmative Determination of Sales at
Less Than Fair Value
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that nonrefillable steel cylinders (non-refillable
cylinders) 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 July 1, 2019,
through December 31, 2019.
DATES: Applicable March 22, 2021.
FOR FURTHER INFORMATION CONTACT:
Katherine Sliney and Joy Zhang, AD/
CVD Operations, Office III, Enforcement
and Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
AGENCY:
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1 See Certain Non-Refillable Steel Cylinders from
the People’s Republic of China: Preliminary
Affirmative Determination of Sales at Less Than
Fair Value, Postponement of Final Determination
and Extension of Provisional Measures, 85 FR
68852 (October 30, 2020) (Preliminary
Determination), and accompanying Preliminary
Decision Memorandum (PDM).
2 See Memorandum, ‘‘Certain Non-Refillable Steel
Cylinders from the People’s Republic of China:
Decision Memorandum for the Final Affirmative
Determination of Sales at Less-Than-Fair-Value,’’
dated concurrently with, and hereby adopted by,
this notice (Issues and Decision Memorandum).
3 See Memorandum, ‘‘Antidumping Duty and
Countervailing Duty Investigations on Certain NonRefillable Steel Cylinders from the People’s
Republic of China: Preliminary Scope Decision
Memorandum,’’ dated October 23, 2020
(Preliminary Scope Decision Memorandum).
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Agencies
[Federal Register Volume 86, Number 53 (Monday, March 22, 2021)]
[Notices]
[Pages 15186-15188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05815]
[[Page 15186]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-136]
Certain Chassis and Subassemblies Thereof From the People's
Republic of China: Final Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of certain chassis and subassemblies thereof (chassis) from the
People's Republic of China (China). The period of investigation is
January 1, 2019, through December 31, 2019.
DATES: Applicable March 22, 2021.
FOR FURTHER INFORMATION CONTACT: William Langley or Nicholas
Czajkowski, 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) 482-3861
or (202) 482-1395, respectively.
SUPPLEMENTARY INFORMATION:
Background
The petitioner in this investigation is the Coalition of American
Chassis Manufacturers. In addition to the Government of China (GOC),
the selected mandatory respondents are Qingdao CIMC Special Vehicles
Co., Ltd. (QCVC) and Dongguan CIMC Vehicle Co., Ltd. (DCVC)
(collectively, with other cross-owned companies, CIMC).
On January 4, 2021 Commerce published in the Federal Register the
Preliminary Determination of this investigation.\1\ A summary of the
events that occurred since Commerce published the Preliminary
Determination, as well as a full discussion of the issues raised by
parties for this final determination, may be found in the Issues and
Decision Memorandum.\2\ The Issues and 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 Issues and
Decision Memorandum can be accessed directly at https://enforcement.trade.gov/frn/.
---------------------------------------------------------------------------
\1\ See Certain Chassis and Subassemblies Thereof from the
People's Republic of China: Preliminary Affirmative Countervailing
Duty Determination, 86 FR 56 (January 4, 2021) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Certain Chassis and Subassemblies Thereof from the People's Republic
of China,'' dated concurrently with, and hereby adopted by, this
notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------
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
During the course of this and the concurrent antidumping duty (AD)
investigation, Commerce received scope comments from interested
parties. Commerce issued a Preliminary Scope Decision Memorandum to
address these comments.\3\ Subsequently, we received comments from
interested parties on the Preliminary Scope Decision Memorandum, which
we address in the Final Scope Decision Memorandum, dated
contemporaneously with, and hereby adopted by, this final
determination.\4\ Commerce is modifying the scope language as it
appeared in the Preliminary Determination. See Appendix I for the final
scope of this investigation.
---------------------------------------------------------------------------
\3\ 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).
\4\ See Memorandum, ``Antidumping Duty and Countervailing Duty
Investigations of Certain Chassis and Subassemblies Thereof from the
People's Republic of China: Scope Comments Decision Memorandum for
the Final Determinations,'' dated March 15, 2021 (Final Scope
Decision Memorandum).
---------------------------------------------------------------------------
Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
raised by parties raised is attached to this notice at Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce determines that there
is a subsidy, i.e., a financial contribution by an ``authority'' that
gives rise to a benefit to the recipient, and that the subsidy is
specific.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
---------------------------------------------------------------------------
\5\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
---------------------------------------------------------------------------
In making this final determination, Commerce is relying, in part,
on facts otherwise available, including adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of AFA, see the Preliminary Determination and the
section ``Use of Facts Otherwise Available and Adverse Inference'' in
the accompanying Issues and Decision Memorandum.\6\
---------------------------------------------------------------------------
\6\ See Preliminary Decision Memorandum at ``Use of Facts
Otherwise Available and Adverse Inferences''; see also Issues and
Decision Memorandum at ``Use of Facts Otherwise Available and
Adverse Inference.''
---------------------------------------------------------------------------
Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, as well as additional information collected in questionnaires
issued subsequent to the Preliminary Determination, we made certain
changes to CIMC's subsidy rate calculations. For a discussion of these
changes, see the Issues and Decision Memorandum.
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of an on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Act.\7\
---------------------------------------------------------------------------
\7\ See Commerce's Letter, ``Countervailing Duty Investigation
of Certain Chassis and Subassemblies Thereof: CIMC Vehicles (Group)
Co., Ltd. Verification Questionnaire,'' dated February 3, 2021.
---------------------------------------------------------------------------
All-Others Rate
As discussed in the Preliminary Determination, Commerce selected
the all-others rate using the countervailable subsidy rate calculated
for the mandatory respondent in accordance with section 705(c)(5)(A) of
the Act.\8\ Section 705(c)(5)(A) of the Act provides that this rate
shall be an amount equal to the weighted average of the estimated
subsidy rates established for those companies individually examined,
excluding any zero and de minimis rates and any rates based entirely
under section 776 of the Act.
---------------------------------------------------------------------------
\8\ See Preliminary Determination.
---------------------------------------------------------------------------
In this investigation, Commerce calculated a rate for CIMC that is
not
[[Page 15187]]
zero, de minimis, or based entirely on facts otherwise available.
Consequently, the rate calculated for CIMC is also assigned as the rate
for all other producers and exporters.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
---------------------------------------------------------------------------
\9\ Commerce finds the following companies to be cross-owned
with Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan CIMC
Vehicle Co., Ltd.: CIMC Vehicles (Group) Co., Ltd.; Shenzhen CIMC
Vehicle Co., Ltd.; Zhumadian CIMC Huajun Casting Co., Ltd.; China
International Marine Containers (Group) Co., Ltd.; Liangshan CIMC
Dongyue Vehicles Co., Ltd.; Shandong Wanshida Special Vehicle
Manufacturing Co., Ltd.; Yangzhou CIMC Tonghua Special Vehicles Co.,
Ltd.; Zhumadian CIMC Huajun Vehicle Co., Ltd.; Gansu CIMC Huajun
Vehicles Co., Ltd.; CIMC Vehicles (Liaoning) Co., Ltd.; and
Zhumadian CIMC Wanjia Axle Co., Ltd.
------------------------------------------------------------------------
Subsidy
Company rate
(percent)
------------------------------------------------------------------------
Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan CIMC 39.14
Vehicles Co., Ltd.\9\......................................
All Others.................................................. 39.14
------------------------------------------------------------------------
Disclosure
Commerce intends to disclose to interested parties its calculations
and analysis performed in this final 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).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of
subject merchandise from China that were entered, or withdrawn from
warehouse, for consumption, effective January 4, 2020, which is the
date of publication of the Preliminary Determination in the Federal
Register.
In accordance with section 705(c)(1)(C) of the Act, we are
directing CBP to continue to suspend liquidation of all imports of the
subject merchandise from China that are entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. The suspension of liquidation
instructions will remain in effect until further notice. We are also
directing CBP to collect countervailing duty deposits at the rates
described above.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, and
continue to require a cash deposit of estimated countervailing duties
for such entries of subject merchandise in the amounts indicated above,
in accordance with section 706(a) of the Act. If the ITC determines
that material injury, or threat of material injury, does not exist,
this proceeding will be terminated, and all estimated duties deposited
or securities posted as a result of the suspension of liquidation will
be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of chassis from
China. Because the final determination in this proceeding is
affirmative, in accordance with section 705(b) of the Act, the ITC will
make its final determination as to whether the domestic industry in the
United States is materially injured, or threatened with material
injury, by reason of imports of corrosion inhibitors from China no
later than 45 days after our final determination. In addition, we are
making available to the ITC all non-privileged and nonproprietary
information related to this investigation. If the ITC determines that
material injury or threat of material injury does not exist, this
proceeding will be terminated and all cash deposits will be refunded.
If the ITC determines that such injury does exist, Commerce will issue
a countervailing duty order directing CBP to assess, upon further
instruction by Commerce, countervailing duties on all imports of the
subject merchandise that are entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section. We will allow the ITC access to all privileged
and business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Notification Regarding APO
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the destruction
of proprietary information disclosed under APO in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
destruction of APO materials or conversion to judicial protective order
is hereby requested. Failure to comply with the regulations and terms
of an APO is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 771(i) of the Act, and 19 CFR 351.210(c).
Dated: March 15, 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 15188]]
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 Final Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether CIMC and Its Cross-Owned Affiliates are
State-Owned
Comment 2: Whether the Provision of International Ocean Shipping
Services for LTAR is Countervailable
Comment 3: Whether Shipping Services Provided by Non-Chinese
Firms and For Merchandise Not Subject to the Investigation are
Countervailable
Comment 4: Whether the Application of Adverse Facts Available to
the Export Buyer's Credit Program is Warranted
Comment 5: Whether the Application of Adverse Facts Available is
Warranted in Finding the Provision of Electricity for LTAR
Countervailable
Comment 6: Whether Electricity Surcharges are Countervailable
Comment 7: Whether Commerce Should use Alternative Benchmark
Rates for Land-Use Rights
Comment 8: Whether Intercompany Loans are Countervailable
Comment 9: Whether Commercial Loans are Countervailable
Comment 10: Whether Subsidies to Huajun Casting's Production are
Attributable to Chassis Production
Comment 11: Whether Commerce Should Have Initiated an
Investigation into Currency Undervaluation
Comment 12: Whether CIMC Failed Verification with Respect to
Reported Input Purchases
VII. Recommendation
[FR Doc. 2021-05815 Filed 3-19-21; 8:45 am]
BILLING CODE 3510-DS-P