Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China: Initiation of Countervailing Duty Investigation, 64440-64444 [2022-23135]
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Federal Register / Vol. 87, No. 205 / Tuesday, October 25, 2022 / Notices
10. Colorful Bright Trade Co., Ltd.
11. Dalian Beauty Seafood Company Ltd.
12. Dalian Changfeng Food Co., Ltd.
13. Dalian Guofu Aquatic Products and Food
Co., Ltd.
14. Dalian Haiqing Food Co., Ltd.
15. Dalian Hengtai Foods Co., Ltd.
16. Dalian Home Sea International Trading
Co., Ltd.
17. Dalian Philica International Trade Co.,
Ltd.
18. Dalian Philica Supply Chain Management
Co., Ltd.
19. Dalian Rich Enterprise Group Co., Ltd.
20. Dalian Shanhai Seafood Co., Ltd.
21. Dalian Sunrise Foodstuffs Co., Ltd.
22. Dalian Taiyang Aquatic Products Co., Ltd.
23. Dandong Taihong Foodstuff Co., Ltd.
24. Dongwei Aquatic Products (Zhangzhou)
Co., Ltd.
25. Ferrero Food
26. Fujian Chaohui Group
27. Fujian Chaowei International Trading
28. Fujian Dongshan County Shunfa Aquatic
Product Co., Ltd.
29. Fujian Dongwei Food Co., Ltd.
30. Fujian Dongya Aquatic Products Co., Ltd.
31. Fujian Fuding Seagull Fishing Food Co.,
Ltd.
32. Fujian Haihun Aquatic Product Company
33. Fujian Hainason Trading Co., Ltd.
34. Fujian Hongao Trade Development Co.
35. Fujian R & J Group Ltd.
36. Fujian Rongjiang Import and Export Co.,
Ltd.
37. Fujian Zhaoan Haili Aquatic Co., Ltd.
38. Fuqing Chaohui Aquatic Food Co., Ltd.
39. Fuqing Dongwei Aquatic Products
Industry Co., Ltd.
40. Fuqing Longhua Aquatic Food Co., Ltd.
41. Fuqing Minhua Trade Co., Ltd.
42. Fuqing Yihua Aquatic Food Co., Ltd.
43. Gallant Ocean Group
44. Guangdong Foodstuffs Import & Export
(Group) Corporation
45. Guangdong Gourmet Aquatic Products
Co., Ltd.
46. Guangdong Jinhang Foods Co., Ltd.
47. Guangdong Rainbow Aquatic
Development
48. Guangdong Shunxin Marine Fishery
Group Co., Ltd.
49. Guangdong Taizhou Import & Export
Trade Co., Ltd.
50. Guangdong Universal Aquatic Food Co.
Ltd.
51. Guangdong Wanshida Holding Corp.
52. Guangdong Wanya Foods Fty. Co., Ltd.
53. HaiLi Aquatic Product Co., Ltd.
54. Hainan Brich Aquatic Products Co., Ltd.
55. Hainan Golden Spring Foods Co., Ltd.
56. Hainan Qinfu Foods Co., Ltd.
57. Hainan Xintaisheng Industry Co., Ltd.
58. Huazhou Xinhai Aquatic Products Co.
Ltd.
59. Kuehne Nagel Ltd. Xiamen Branch
60. Leizhou Bei Bu Wan Sea Products Co.,
Ltd.
61. Longhai Gelin Foods Co., Ltd.
62. Maoming Xinzhou Seafood Co., Ltd.
63. New Continent Foods Co., Ltd.
64. Ningbo Prolar Global Co., Ltd.
65. North Seafood Group Co.
66. Pacific Andes Food Ltd.
67. Penglai Huiyang Foodstuff Co., Ltd.
68. Penglai Yuming Foodstuff Co., Ltd.
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69. Qingdao Fusheng Foodstuffs Co., Ltd.
70. Qingdao Yihexing Foods Co., Ltd.
71. Qingdao Yize Food Co., Ltd.
72. Qingdao Zhongfu International
73. Qinhuangdao Gangwan Aquatic Products
Co., Ltd.
74. Raoping YuXiang Aquaculture Co., Ltd.
75. Rizhao Meijia Aquatic Foodstuff Co., Ltd.
76. Rizhao Meijia Keyuan Foods Co. Ltd.
77. Rizhao Rongjin Aquatic
78. Rizhao Rongxing Co. Ltd.
79. Rizhao Smart Foods Company Limited
80. Rongcheng Sanyue Foodstuff Co., Ltd.
81. Rongcheng Yinhai Aquatic Product Co.,
Ltd.
82. Rushan Chunjiangyuan Foodstuffs Co.,
Ltd.
83. Rushan Hengbo Aquatic Products Co.,
Ltd.
84. Savvy Seafood Inc.
85. Sea Trade International Inc.
86. Shanghai Finigate Integrated
87. Shanghai Zhoulian Foods Co., Ltd.
88. Shantou Freezing Aquatic Product
Foodstuffs Co.
89. Shantou Haili Aquatic Product Co. Ltd.
90. Shantou Haimao Foodstuff Factory Co.,
Ltd.
91. Shantou Jiazhou Food Industrial Co., Ltd.
92. Shantou Jinping Oceanstar Business Co.,
Ltd.
93. Shantou Jintai Aquatic Product Industrial
Co., Ltd.
94. Shantou Longsheng Aquatic Product
Foodstuff Co., Ltd.
95. Shantou Ocean Best Seafood Corporation
96. Shantou Red Garden Food Processing Co.,
Ltd./Shantou Red Garden Foodstuff Co.,
Ltd.
97. Shantou Ruiyuan Industry Co., Ltd.
98. Shantou Wanya Foods Fty. Co., Ltd.
99. Shantou Yuexing Enterprise Company
100. Shengyuan Aquatic Food Co., Ltd.
101. Suizhong Tieshan Food Co., Ltd.
102. Thai Royal Frozen Food Zhanjiang Co.,
Ltd.
103. Tongwei Hainan Aquatic Products Co.,
Ltd.
104. Time Seafood (Dalian) Company
Limited
105. Xiamen East Ocean Foods Co., Ltd.
106. Xiamen Granda Import and Export Co.,
Ltd.
107. Yangjiang Dawu Aquatic Products Co.,
Ltd.
108. Yangjiang Guolian Seafood Co., Ltd.
109. Yangjiang Haina Datong Trading Co.
110. Yantai Longda Foodstuffs Co., Ltd.
111. Yantai Tedfoods Co., Ltd.
112. Yantai Wei-Cheng Food Co., Ltd.
113. Yixing Magnolia Garment Co., Ltd.
114. Zhangzhou Donghao Seafoods Co., Ltd.
115. Zhangzhou Fuzhiyuan Food Co., Ltd.
116. Zhangzhou Tai Yi Import & Export
Trading Co., Ltd.
117. Zhangzhou Xinhui Foods Co., Ltd.
118. Zhangzhou Xinwanya Aquatic Product
Co., Ltd.
119. Zhangzhou Yanfeng Aquatic Product &
Foodstuff Co., Ltd.
120. Zhanjiang Evergreen Aquatic Product
Science and Technology Co., Ltd.
121. Zhanjiang Fuchang Aquatic Products
Co., Ltd.
122. Zhanjiang Fuchang Aquatic Products
Freezing Plant
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123. Zhanjiang Go-Harvest Aquatic Products
Co., Ltd.
124. Zhanjiang Guolian Aquatic Products
Co., Ltd.
125. Zhanjiang Longwei Aquatic Products
Industry Co., Ltd.
126. Zhanjiang Universal Seafood Corp.
127. Zhaoan Yangli Aquatic Co., Ltd.
128. Zhejiang Evernew Seafood Co.
129. Zhejiang Xinwang Foodstuffs Co., Ltd.
130. Zhenye Aquatic (Huilong) Ltd.
131. Zhoushan Genho Food Co., Ltd.
132. Zhoushan Green Food Co., Ltd.
133. Zhoushan Haizhou Aquatic Products
134. Zhuanghe Yongchun Marine Products
Appendix II
Companies Preliminarily Found to Have No
Shipments
1. Zhangzhou Hongwei Foods Co., Ltd.
2. Zhanjiang Regal Integrated Marine
Resources Co., Ltd.
Appendix III
List of Topics Discussed in the Preliminary
Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Discussion of the Methodology
V. Recommendation
[FR Doc. 2022–23217 Filed 10–24–22; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–146]
Certain Freight Rail Couplers and Parts
Thereof From the People’s Republic of
China: Initiation of Countervailing Duty
Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
AGENCY:
DATES:
Applicable October 18, 2022.
FOR FURTHER INFORMATION CONTACT:
Terre Keaton Stefanova, AD/CVD
Operations, Office II, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–1280.
SUPPLEMENTARY INFORMATION:
The Petition
On September 28, 2022, the U.S.
Department of Commerce (Commerce)
received a countervailing duty (CVD)
petition concerning imports of certain
freight rail couplers and parts thereof
(freight rail couplers) from the People’s
Republic of China (China) filed in
proper form on behalf of the Coalition
of Freight Coupler Producers (the
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petitioner).1 The Petition was
accompanied by antidumping duty (AD)
petitions concerning imports of freight
rail couplers from China and Mexico.2
Between September 30 and October 7,
2022, Commerce requested
supplemental information pertaining to
certain aspects of the Petition in
separate supplemental questionnaires.3
On October 4, 6, and 11, 2022, the
petitioner filed timely responses to
these requests for additional
information.4
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(the Act), the petitioner alleges that the
Government of China (GOC) is
providing countervailable subsidies,
within the meaning of sections 701 and
771(5) of the Act, to producers of freight
rail couplers in China and that such
imports are materially injuring, or
threatening material injury to, the
domestic industry producing in the
United States. Consistent with section
702(b)(1) of the Act and 19 CFR
351.202(b), for those alleged programs
on which we are initiating a CVD
investigation, the Petition is supported
by information reasonably available to
the petitioner.
Commerce finds that the petitioner
filed the Petition on behalf of the
domestic industry because the
petitioner is an interested party as
1 See Petitioner’s Letter, ‘‘Certain Freight Rail
Couplers and Parts Thereof from the People’s
Republic of China and the United Mexican States:
Petitions for the Imposition of Antidumping and
Countervailing Duties,’’ dated September 28, 2022
(Petition). The members of the Coalition of Freight
Coupler Producers are McConway & Torley LLC
and the United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and
Service Workers International Union.
2 Id.
3 See Commerce’s Letters, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties on Imports of Certain Freight Rail Couplers
and Parts Thereof from the People’s Republic of
China and Mexico: Supplemental Questions,’’ dated
September 30, 2022 (Commerce’s First General
Issues Supplemental); and ‘‘Petition for the
Imposition of Countervailing Duties on Imports of
Certain Freight Rail Couplers and Parts Thereof
from the People’s Republic of China: Supplemental
Questions,’’ dated October 3, 2022; see also
Memorandum, ‘‘Phone Call with Counsel to the
Petitioner,’’ dated October 7, 2022 (Commerce’s
Second General Issues Supplemental).
4 See Petitioner’s Letters, ‘‘Certain Freight Rail
Couplers and Parts Thereof from the People’s
Republic of China and the United Mexican States:
Response to Supplemental Questions for Volume I
Common Issues and Injury Petition,’’ dated October
4, 2022 (First General Issues Supplement); ‘‘Certain
Freight Rail Couplers and Parts Thereof from the
People’s Republic of China: Petitioner’s
Supplemental Questionnaire Response,’’ dated
October 6, 2022; and ‘‘Certain Freight Rail Couplers
and Parts Thereof from the People’s Republic of
China and the United Mexican States: Response to
Second Supplemental Questions for Volume I
Common Issues and Injury Petition,’’ dated October
11, 2022 (Second General Issues Supplement).
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defined in section 771(9)(F) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
support with respect to the initiation of
the requested CVD investigation.5
Period of Investigation
Because the Petition was filed on
September 28, 2022, the period of
investigation is January 1, 2021, through
December 31, 2021.6
Scope of the Investigation
The products covered by this
investigation are certain freight rail
couplers and parts thereof from China.
For a full description of the scope of this
investigation, see the appendix to this
notice.
Comments on Scope of the Investigation
On September 30 and October 7,
2022, Commerce requested information
from the petitioner regarding the
proposed scope to ensure that the scope
language in the Petition is an accurate
reflection of the products for which the
domestic industry is seeking relief.7 On
October 4 and 11, 2022, the petitioner
revised the scope.8 The description of
merchandise covered by this
investigation, as described in the
appendix to this notice, reflects these
clarifications.
As discussed in the Preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(i.e., scope).9 Commerce will consider
all comments received from interested
parties and, if necessary, will consult
with interested parties prior to the
issuance of the preliminary
determinations. If scope comments
include factual information,10 all such
factual information should be limited to
public information. To facilitate
preparation of its questionnaires,
Commerce requests that all interested
parties submit such comments by 5:00
p.m. Eastern Time (ET) on November 7,
2022. Any rebuttal comments, which
may include factual information, must
be filed by 5:00 p.m. ET on November
5 See section on ‘‘Determination of Industry
Support for the Petition,’’ infra.
6 See 19 CFR 351.204(b)(2).
7 See Commerce’s First General Issues
Supplemental at 3–4; see also Commerce’s Second
General Issues Supplemental at 1–2.
8 See First General Issues Supplement at 1–3 and
Exhibit I–Supp–I; see also Second General Issues
Supplement at 2 and Exhibit I–Supp2–4.
9 See Antidumping Duties; Countervailing Duties,
Final Rule, 62 FR 27296, 27323 (May 19, 1997)
(Preamble).
10 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
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17, 2022, which is ten calendar days
from the initial comment deadline.
Commerce requests that any factual
information that parties consider
relevant to the scope of the investigation
be submitted during this period.
However, if a party subsequently finds
that additional factual information
pertaining to the scope of the
investigation may be relevant, the party
may contact Commerce and request
permission to submit the additional
information. All such submissions must
be filed on the records of the concurrent
AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be
filed electronically via Enforcement and
Compliance’s (E&C) Antidumping Duty
and Countervailing Duty Centralized
Electronic Service System (ACCESS),
unless an exception applies.11 An
electronically filed document must be
received successfully in its entirety by
the time and date it is due.
Consultations
Pursuant to sections 702(b)(4)(A)(i)
and (ii) of the Act, Commerce notified
the GOC of the receipt of the Petition
and provided it the opportunity for
consultations with respect to the
Petition.12 The GOC requested
consultations,13 which were held via
video conference on October 17, 2022.14
Determination of Industry Support for
the Petition
Section 702(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 702(c)(4)(A)
of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) at least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
11 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014), for details
of Commerce’s electronic filing requirements,
effective August 5, 2011. Information on using
ACCESS can be found at https://access.trade.gov/
help.aspx and a handbook can be found at https://
access.trade.gov/help/Handbook_on_Electronic_
Filing_Procedures.pdf.
12 See Commerce’s Letter, Consultations with the
GOC, dated October 6, 2022.
13 See GOC’s Letter, ‘‘Request for Consultation to
Discuss the Countervailing Duty Investigation
Petition,’’ dated October 11, 2022.
14 See Memorandum, ‘‘Consultations with
Officials from the Government of the People’s
Republic of China (China),’’ dated October 17, 2022.
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petition. Moreover, section 702(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
Commerce shall: (i) poll the industry or
rely on other information in order to
determine if there is support for the
petition, as required by subparagraph
(A); or (ii) determine industry support
using a statistically valid sampling
method to poll the ‘‘industry.’’
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs Commerce to look to producers
and workers who produce the domestic
like product. The U.S. International
Trade Commission (ITC), which is
responsible for determining whether
‘‘the domestic industry’’ has been
injured, must also determine what
constitutes a domestic like product in
order to define the industry. While both
Commerce and the ITC must apply the
same statutory definition regarding the
domestic like product,15 they do so for
different purposes and pursuant to a
separate and distinct authority. In
addition, Commerce’s determination is
subject to limitations of time and
information. Although this may result in
different definitions of the like product,
such differences do not render the
decision of either agency contrary to
law.16
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, the petitioner does not offer a
definition of the domestic like product
distinct from the scope of the
investigation.17 Based on our analysis of
the information submitted on the
record, we have determined that freight
rail couplers, as defined in the scope,
constitute a single domestic like
product, and we have analyzed industry
15 See
section 771(10) of the Act.
USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd.
v. United States, 688 F. Supp. 639, 644 (CIT 1988),
aff’d 865 F.2d 240 (Fed. Cir. 1989)).
17 See Petition at Volume I (17–21 and Exhibit I–
19); see also First General Issues Supplement at 8–
9.
16 See
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support in terms of that domestic like
product.18
In determining whether the petitioner
has standing under section 702(c)(4)(A)
of the Act, we considered the industry
support data contained in the Petition
with reference to the domestic like
product as defined in the ‘‘Scope of the
Investigation,’’ in the appendix to this
notice. To establish industry support,
the petitioner provided its own
production and compared this to the
estimated total 2021 production of the
domestic like product for the entire U.S.
industry.19 We relied on data provided
by the petitioner for purposes of
measuring industry support.20
Our review of the data provided in the
Petition, the First General Issues
Supplement, the Second General Issues
Supplement, and other information
readily available to Commerce indicates
that the petitioner has established
industry support for the Petition.21 First,
the Petition established support from
domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).22 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product.23 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 702(c)(4)(A)(ii) of the Act
because the domestic producers (or
18 For a discussion of the domestic like product
analysis as applied to this case and information
regarding industry support, see CVD Investigation
Initiation Checklist, ‘‘Certain Freight Rail Couplers
and Parts Thereof from the People’s Republic of
China,’’ dated concurrently with this notice (China
CVD Initiation Checklist), at Attachment II
(Analysis of Industry Support for the Antidumping
and Countervailing Duty Petitions Covering Certain
Freight Rail Couplers and Parts Thereof from the
People’s Republic of China and Mexico).
19 See Petition at Volume I (4–5 and Exhibits I–
5 and I–18); see also First General Issues
Supplement at 4–8 and Exhibits I–Supp–2 and I–
Supp–3.
20 See Petition at Volume I (4–5 and Exhibits I–
5 and I–18); see also First General Issues
Supplement at 4–8 and Exhibits I–Supp–2 and I–
Supp–3.
21 See Petition at Volume I (3–5 and Exhibits I–
1 through I–3, I–5, and I–18); see also First General
Issues Supplement at 4–8 and Exhibits I–Supp–2
through I–Supp–4. For further discussion, see
Attachment II of the China CVD Initiation Checklist.
22 See China CVD Initiation Checklist at
Attachment II; see also section 702(c)(4)(D) of the
Act.
23 See China CVD Initiation Checklist at
Attachment II.
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workers) who support the Petition
account for more than 50 percent of the
production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petition.24 Accordingly, Commerce
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 702(b)(1) of the
Act.25
Injury Test
Because China is a ‘‘Subsidies
Agreement Country’’ within the
meaning of section 701(b) of the Act,
section 701(a)(2) of the Act applies to
this investigation. Accordingly, the ITC
must determine whether imports of the
subject merchandise from China
materially injure, or threaten material
injury to, a U.S. industry.
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that imports of
the subject merchandise are benefiting
from countervailable subsidies and that
such imports are causing, or threaten to
cause, material injury to the U.S.
industry producing the domestic like
product. In addition, the petitioner
alleges that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.26
The petitioner contends that the
industry’s injured condition is
illustrated by a significant volume of
subject imports; reduced market share;
underselling and price depression and/
or suppression; lost sales and revenues;
declines in production, U.S. shipments,
and capacity utilization; decline in
employment; and decline in financial
performance.27 We assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, causation, as well as
negligibility, and we have determined
that these allegations are properly
supported by adequate evidence, and
meet the statutory requirements for
initiation.28
Initiation of CVD Investigation
Based upon our examination of the
Petition and supplemental responses,
24 Id.
25 Id.
26 See
Petition at Volume I (34 and Exhibit I–34).
Petition at Volume I (16–17, 24–57, and
Exhibits I–3, I–4, I–15 through I–18, and I–21
through I–63); see also First General Issues
Supplement at 9–12 and Exhibits I–Supp–5 through
I–Supp–7.
28 See China CVD Initiation Checklist at
Attachment III (Analysis of Allegations and
Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions
Covering Certain Freight Rail Couplers and Parts
thereof from the People’s Republic of China and
Mexico).
27 See
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we find that the Petition meets the
requirements of section 702 of the Act.
Therefore, we are initiating a CVD
investigation to determine whether
imports of freight rail couplers from
China benefit from countervailable
subsidies conferred by the GOC. Based
on our review of the Petition, we find
that there is sufficient information to
initiate a CVD investigation on all 33 of
the alleged programs. Additionally, we
find that there is sufficient information
to initiate on the allegation pertaining to
the uncreditworthiness of CRRC
Corporation Limited (CRRC) and will
conduct the appropriate investigation,
should CRRC be selected as a mandatory
respondent. For a full discussion of the
basis for our decision to initiate on each
program, see the China CVD Initiation
Checklist. The initiation checklist for
this investigation is available on
ACCESS. In accordance with section
703(b)(1) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will
make our preliminary determination no
later than 65 days after the date of this
initiation.
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Respondent Selection
The petitioner named twelve
companies in China as producers and/
or exporters of freight rail couplers.29
Commerce intends to follow its standard
practice in CVD investigations and
calculate company-specific subsidy
rates in this investigation. In the event
that Commerce determines that the
number of companies is large and it
cannot individually examine each
company based upon Commerce’s
resources, where appropriate,
Commerce intends to select mandatory
respondents based on quantity and
value (Q&V) questionnaires issued to
the potential respondents. Commerce
normally selects mandatory respondents
in CVD investigations using U.S.
Customs and Border Protection (CBP)
entry data for U.S. imports under the
appropriate Harmonized Tariff Schedule
of the United States (HTSUS)
subheadings listed in the scope of the
investigation. However, for this
investigation, one of the HTSUS
subheadings under which the subject
merchandise would enter (i.e.,
8607.30.1000) is a basket category under
which non-subject merchandise may
enter. Therefore, we cannot rely on CBP
entry data in selecting respondents.
Because there are twelve producers and/
or exporters identified in the Petition,
Commerce intends instead to issue Q&V
questionnaires to each potential
respondent for which the petitioner has
provided a complete address.
In addition, Commerce will post the
Q&V questionnaire along with filing
instructions on E&C’s website at https://
access.trade.gov/resources/
questionnaires/questionnaires-ad.html.
Producers/exporters of freight rail
couplers from China that do not receive
Q&V questionnaires by mail may still
submit a response to the Q&V
questionnaire and can obtain the Q&V
questionnaire from E&C’s website. In the
event Commerce decides to limit the
number of respondents individually
investigated, Commerce intends to base
respondent selection on the responses to
the Q&V questionnaire that it receives.
Responses to the Q&V questionnaire
must be submitted by the relevant
Chinese producers/exporters no later
than 5:00 p.m. ET on November 1, 2022,
which is two weeks from the signature
date of this notice. All Q&V responses
must be filed electronically via
ACCESS. An electronically filed
document must be received
successfully, in its entirety, by ACCESS
no later than 5:00 p.m. ET on the
deadline noted above.
Interested parties must submit
applications for disclosure under
administrative protective order (APO) in
accordance with 19 CFR 351.305(b).
Instructions for filing such applications
may be found on E&C’s website at
https://www.trade.gov/administrativeprotective-orders. Commerce intends to
finalize its decisions regarding
respondent selection within 20 days of
publication of this notice.
Distribution of Copies of the Petition
In accordance with section
702(b)(4)(A) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to the
GOC via ACCESS. Furthermore, to the
extent practicable, Commerce will
attempt to provide a copy of the public
version of the Petition to each exporter
named in the Petition, as provided
under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its
initiation, as required by section 702(d)
of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petition was filed, whether there is
a reasonable indication that imports of
freight rail couplers from China are
materially injuring, or threatening
material injury to, a U.S. industry.30 A
negative ITC determination will result
in the investigation being terminated.31
Otherwise, this investigation will
proceed according to statutory and
regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by Commerce; and (v)
evidence other than factual information
described in (i) through (iv). Section
351.301(b) of Commerce’s regulations
requires any party, when submitting
factual information, to specify under
which subsection of 19 CFR
351.102(b)(21) the information is being
submitted 32 and, if the information is
submitted to rebut, clarify, or correct
factual information already on the
record, to provide an explanation
identifying the information already on
the record that the factual information
seeks to rebut, clarify, or correct.33 Time
limits for the submission of factual
information are addressed in 19 CFR
351.301, which provides specific time
limits based on the type of factual
information being submitted. Interested
parties should review the regulations
prior to submitting factual information
in this investigation.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301, or as otherwise specified by
Commerce. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR
351.301.34 For submissions that are due
from multiple parties simultaneously,
an extension request will be considered
untimely if it is filed after 10:00 a.m. ET
on the due date. Under certain
circumstances, Commerce may elect to
specify a different time limit by which
extension requests will be considered
untimely for submissions which are due
from multiple parties simultaneously. In
such a case, Commerce will inform
parties in a letter or memorandum of the
deadline (including a specified time) by
which extension requests must be filed
to be considered timely. An extension
31 Id.
32 See
19 CFR 351.301(b).
19 CFR 351.301(b)(2).
34 See 19 CFR 351.302.
33 See
29 See
Petition at Volume I (13 and Exhibit I–10).
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16:52 Oct 24, 2022
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30 See
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E:\FR\FM\25OCN1.SGM
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Federal Register / Vol. 87, No. 205 / Tuesday, October 25, 2022 / Notices
request must be made in a separate,
stand-alone submission; under limited
circumstances we will grant untimelyfiled requests for the extension of time
limits. Parties should review
Commerce’s regulations concerning the
extension of time limits and the Time
Limits Final Rule prior to submitting
extension requests or factual
information in this investigation.35
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.36
Parties must use the certification
formats provided in 19 CFR
351.303(g).37 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305.
Parties wishing to participate in this
investigation should ensure that they
meet the requirements of document
submission procedures (e.g., the filing of
letters of appearance as discussed at 19
CFR 351.103(d)) (e.g., by filing the
required letter of appearance).38 Note
that Commerce has temporarily
modified certain of its requirements for
serving documents containing business
proprietary information, until further
notice.39
This notice is issued and published
pursuant to sections 702 and 777(i) of
the Act, and 19 CFR 351.203(c).
Dated: October 18, 2022.
Lisa W. Wang,
Assistant Secretary, for Enforcement and
Compliance.
Appendix
khammond on DSKJM1Z7X2PROD with NOTICES
Scope of the Investigation
The scope of this investigation covers
certain freight railcar couplers (also known as
35 See 19 CFR 351; see also Extension of Time
Limits; Final Rule, 78 FR 57790 (September 20,
2013) (Time Limits Final Rule), available at https://
www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/201322853.htm.
36 See section 782(b) of the Act.
37 See Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule); see also frequently asked
questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
38 See Antidumping and Countervailing Duty
Proceedings: Documents Submission Procedures;
APO Procedures, 73 FR 3634 (January 22, 2008).
39 See Temporary Rule Modifying AD/CVD
Service Requirements Due to COVID–19; Extension
of Effective Period, 85 FR 41363 (July 10, 2020).
VerDate Sep<11>2014
16:52 Oct 24, 2022
Jkt 259001
‘‘fits’’ or ‘‘assemblies’’) and parts thereof.
Freight railcar couplers are composed of two
main parts, namely knuckles and coupler
bodies but may also include other items (e.g.,
coupler locks, lock lift assemblies, knuckle
pins, knuckle throwers, and rotors). The parts
of couplers that are covered by the
investigation include: (1) E coupler bodies,
(2) E/F coupler bodies, (3) F coupler bodies,
(4) E knuckles, and (5) F knuckles, as set
forth by the Association of American
Railroads (AAR). The freight rail coupler
parts (i.e., knuckles and coupler bodies) are
included within the scope of this
investigation when imported separately.
Coupler locks, lock lift assemblies, knuckle
pins, knuckle throwers, and rotors are
covered merchandise when imported in an
assembly but are not covered by the scope
when imported separately.
Subject freight railcar couplers and parts
are included within the scope whether
finished or unfinished, whether imported
individually or with other subject or
nonsubject parts, whether assembled or
unassembled, whether mounted or
unmounted, or if joined with nonsubject
merchandise, such as other nonsubject parts
or a completed railcar. Finishing includes,
but is not limited to, arc washing, welding,
grinding, shot blasting, heat treatment,
machining, and assembly of various parts.
When a subject coupler or subject parts are
mounted on or to other nonsubject
merchandise, such as a railcar, only the
coupler or subject parts are covered by the
scope.
The finished products covered by the
scope of this investigation meet or exceed the
AAR specifications of M–211, ‘‘Foundry and
Product Approval Requirements for the
Manufacture of Couplers, Coupler Yokes,
Knuckles, Follower Blocks, and Coupler
Parts’’ and/or AAR M–215 ‘‘Coupling
Systems,’’ or other equivalent domestic or
international standards (including any
revisions to the standard(s)).
The country of origin for subject couplers
and parts thereof, whether fully assembled,
unfinished or finished, or attached to a
railcar, is the country where the subject
coupler parts were cast or forged. Subject
merchandise includes coupler parts as
defined above that have been further
processed or further assembled, including
those coupler parts attached to a railcar in
third countries. Further processing includes,
but is not limited to, arc washing, welding,
grinding, shot blasting, heat treatment,
painting, coating, priming, machining, and
assembly of various parts. The inclusion,
attachment, joining, or assembly of
nonsubject parts with subject parts or
couplers either in the country of manufacture
of the in-scope product or in a third country
does not remove the subject parts or couplers
from the scope.
The couplers that are the subject of this
investigation are currently classifiable in the
Harmonized Tariff Schedule of the United
States (HTSUS) statistical reporting number
8607.30.1000. Unfinished subject
merchandise may also enter under HTSUS
statistical reporting number 7326.90.8688.
Subject merchandise attached to finished
railcars may also enter under HTSUS
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
statistical reporting numbers 8606.10.0000,
8606.30.0000, 8606.91.0000, 8606.92.0000,
8606.99.0130, 8606.99.0160, or under
subheading 9803.00.5000 if imported as an
Instrument of International Traffic. Subject
merchandise may also be imported under
HTSUS statistical reporting number
7325.99.5000. These HTSUS subheadings are
provided for convenience and customs
purposes only; the written description of the
scope of this investigation is dispositive.
[FR Doc. 2022–23135 Filed 10–24–22; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–145, A–201–857]
Certain Freight Rail Couplers and Parts
Thereof From the People’s Republic of
China and Mexico: Initiation of LessThan-Fair-Value Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable October 18, 2022.
FOR FURTHER INFORMATION CONTACT:
Zachary Shaykin (the People’s Republic
of China (China)); and Jon Hall-Eastman
or Samuel Brummitt (Mexico); AD/CVD
Operations, Offices IV and III,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–2638,
(202) 482–1468, or (202) 482–7851,
respectively.
AGENCY:
SUPPLEMENTARY INFORMATION:
The Petitions
On September 28, 2022, the U.S.
Department of Commerce (Commerce)
received antidumping duty (AD)
petitions concerning imports of certain
freight rail couplers and parts thereof
(freight rail couplers) from China and
Mexico filed in proper form on behalf of
the Coalition of Freight Coupler
Producers (the petitioner).1 The
Petitions were accompanied by a
countervailing duty (CVD) petition
concerning imports of freight rail
couplers from China.2
Between September 30 and October
11, 2022, Commerce requested
1 See Petitioner’s Letter, ‘‘Certain Freight Rail
Couplers and Parts Thereof from the People’s
Republic of China and the United Mexican States:
Petitions for the Imposition of Antidumping and
Countervailing Duties,’’ dated September 28, 2022
(Petitions). The members of the Coalition of Freight
Coupler Producers are McConway & Torley LLC
and the United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and
Service Workers International Union.
2 Id.
E:\FR\FM\25OCN1.SGM
25OCN1
Agencies
[Federal Register Volume 87, Number 205 (Tuesday, October 25, 2022)]
[Notices]
[Pages 64440-64444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23135]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-146]
Certain Freight Rail Couplers and Parts Thereof From the People's
Republic of China: Initiation of Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable October 18, 2022.
FOR FURTHER INFORMATION CONTACT: Terre Keaton Stefanova, AD/CVD
Operations, Office II, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1280.
SUPPLEMENTARY INFORMATION:
The Petition
On September 28, 2022, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition concerning imports of
certain freight rail couplers and parts thereof (freight rail couplers)
from the People's Republic of China (China) filed in proper form on
behalf of the Coalition of Freight Coupler Producers (the
[[Page 64441]]
petitioner).\1\ The Petition was accompanied by antidumping duty (AD)
petitions concerning imports of freight rail couplers from China and
Mexico.\2\
---------------------------------------------------------------------------
\1\ See Petitioner's Letter, ``Certain Freight Rail Couplers and
Parts Thereof from the People's Republic of China and the United
Mexican States: Petitions for the Imposition of Antidumping and
Countervailing Duties,'' dated September 28, 2022 (Petition). The
members of the Coalition of Freight Coupler Producers are McConway &
Torley LLC and the United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers
International Union.
\2\ Id.
---------------------------------------------------------------------------
Between September 30 and October 7, 2022, Commerce requested
supplemental information pertaining to certain aspects of the Petition
in separate supplemental questionnaires.\3\ On October 4, 6, and 11,
2022, the petitioner filed timely responses to these requests for
additional information.\4\
---------------------------------------------------------------------------
\3\ See Commerce's Letters, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Freight
Rail Couplers and Parts Thereof from the People's Republic of China
and Mexico: Supplemental Questions,'' dated September 30, 2022
(Commerce's First General Issues Supplemental); and ``Petition for
the Imposition of Countervailing Duties on Imports of Certain
Freight Rail Couplers and Parts Thereof from the People's Republic
of China: Supplemental Questions,'' dated October 3, 2022; see also
Memorandum, ``Phone Call with Counsel to the Petitioner,'' dated
October 7, 2022 (Commerce's Second General Issues Supplemental).
\4\ See Petitioner's Letters, ``Certain Freight Rail Couplers
and Parts Thereof from the People's Republic of China and the United
Mexican States: Response to Supplemental Questions for Volume I
Common Issues and Injury Petition,'' dated October 4, 2022 (First
General Issues Supplement); ``Certain Freight Rail Couplers and
Parts Thereof from the People's Republic of China: Petitioner's
Supplemental Questionnaire Response,'' dated October 6, 2022; and
``Certain Freight Rail Couplers and Parts Thereof from the People's
Republic of China and the United Mexican States: Response to Second
Supplemental Questions for Volume I Common Issues and Injury
Petition,'' dated October 11, 2022 (Second General Issues
Supplement).
---------------------------------------------------------------------------
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of China
(GOC) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of freight rail
couplers in China and that such imports are materially injuring, or
threatening material injury to, the domestic industry producing in the
United States. Consistent with section 702(b)(1) of the Act and 19 CFR
351.202(b), for those alleged programs on which we are initiating a CVD
investigation, the Petition is supported by information reasonably
available to the petitioner.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry because the petitioner is an interested party as
defined in section 771(9)(F) of the Act. Commerce also finds that the
petitioner demonstrated sufficient industry support with respect to the
initiation of the requested CVD investigation.\5\
---------------------------------------------------------------------------
\5\ See section on ``Determination of Industry Support for the
Petition,'' infra.
---------------------------------------------------------------------------
Period of Investigation
Because the Petition was filed on September 28, 2022, the period of
investigation is January 1, 2021, through December 31, 2021.\6\
---------------------------------------------------------------------------
\6\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are certain freight rail
couplers and parts thereof from China. For a full description of the
scope of this investigation, see the appendix to this notice.
Comments on Scope of the Investigation
On September 30 and October 7, 2022, Commerce requested information
from the petitioner regarding the proposed scope to ensure that the
scope language in the Petition is an accurate reflection of the
products for which the domestic industry is seeking relief.\7\ On
October 4 and 11, 2022, the petitioner revised the scope.\8\ The
description of merchandise covered by this investigation, as described
in the appendix to this notice, reflects these clarifications.
---------------------------------------------------------------------------
\7\ See Commerce's First General Issues Supplemental at 3-4; see
also Commerce's Second General Issues Supplemental at 1-2.
\8\ See First General Issues Supplement at 1-3 and Exhibit I-
Supp-I; see also Second General Issues Supplement at 2 and Exhibit
I-Supp2-4.
---------------------------------------------------------------------------
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\9\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determinations. If scope comments include factual information,\10\ all
such factual information should be limited to public information. To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit such comments by 5:00 p.m. Eastern Time
(ET) on November 7, 2022. Any rebuttal comments, which may include
factual information, must be filed by 5:00 p.m. ET on November 17,
2022, which is ten calendar days from the initial comment deadline.
---------------------------------------------------------------------------
\9\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
---------------------------------------------------------------------------
Commerce requests that any factual information that parties
consider relevant to the scope of the investigation be submitted during
this period. However, if a party subsequently finds that additional
factual information pertaining to the scope of the investigation may be
relevant, the party may contact Commerce and request permission to
submit the additional information. All such submissions must be filed
on the records of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's (E&C) Antidumping Duty and Countervailing
Duty Centralized Electronic Service System (ACCESS), unless an
exception applies.\11\ An electronically filed document must be
received successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------
\11\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014), for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at https://access.trade.gov/help.aspx and a handbook
can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
---------------------------------------------------------------------------
Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified the GOC of the receipt of the Petition and provided it the
opportunity for consultations with respect to the Petition.\12\ The GOC
requested consultations,\13\ which were held via video conference on
October 17, 2022.\14\
---------------------------------------------------------------------------
\12\ See Commerce's Letter, Consultations with the GOC, dated
October 6, 2022.
\13\ See GOC's Letter, ``Request for Consultation to Discuss the
Countervailing Duty Investigation Petition,'' dated October 11,
2022.
\14\ See Memorandum, ``Consultations with Officials from the
Government of the People's Republic of China (China),'' dated
October 17, 2022.
---------------------------------------------------------------------------
Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the
[[Page 64442]]
petition. Moreover, section 702(c)(4)(D) of the Act provides that, if
the petition does not establish support of domestic producers or
workers accounting for more than 50 percent of the total production of
the domestic like product, Commerce shall: (i) poll the industry or
rely on other information in order to determine if there is support for
the petition, as required by subparagraph (A); or (ii) determine
industry support using a statistically valid sampling method to poll
the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\15\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\16\
---------------------------------------------------------------------------
\15\ See section 771(10) of the Act.
\16\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\17\ Based on our analysis of the information
submitted on the record, we have determined that freight rail couplers,
as defined in the scope, constitute a single domestic like product, and
we have analyzed industry support in terms of that domestic like
product.\18\
---------------------------------------------------------------------------
\17\ See Petition at Volume I (17-21 and Exhibit I-19); see also
First General Issues Supplement at 8-9.
\18\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
CVD Investigation Initiation Checklist, ``Certain Freight Rail
Couplers and Parts Thereof from the People's Republic of China,''
dated concurrently with this notice (China CVD Initiation
Checklist), at Attachment II (Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions Covering Certain
Freight Rail Couplers and Parts Thereof from the People's Republic
of China and Mexico).
---------------------------------------------------------------------------
In determining whether the petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own production and compared this to the estimated total 2021 production
of the domestic like product for the entire U.S. industry.\19\ We
relied on data provided by the petitioner for purposes of measuring
industry support.\20\
---------------------------------------------------------------------------
\19\ See Petition at Volume I (4-5 and Exhibits I-5 and I-18);
see also First General Issues Supplement at 4-8 and Exhibits I-Supp-
2 and I-Supp-3.
\20\ See Petition at Volume I (4-5 and Exhibits I-5 and I-18);
see also First General Issues Supplement at 4-8 and Exhibits I-Supp-
2 and I-Supp-3.
---------------------------------------------------------------------------
Our review of the data provided in the Petition, the First General
Issues Supplement, the Second General Issues Supplement, and other
information readily available to Commerce indicates that the petitioner
has established industry support for the Petition.\21\ First, the
Petition established support from domestic producers (or workers)
accounting for more than 50 percent of the total production of the
domestic like product and, as such, Commerce is not required to take
further action in order to evaluate industry support (e.g.,
polling).\22\ Second, the domestic producers (or workers) have met the
statutory criteria for industry support under section 702(c)(4)(A)(i)
of the Act because the domestic producers (or workers) who support the
Petition account for at least 25 percent of the total production of the
domestic like product.\23\ Finally, the domestic producers (or workers)
have met the statutory criteria for industry support under section
702(c)(4)(A)(ii) of the Act because the domestic producers (or workers)
who support the Petition account for more than 50 percent of the
production of the domestic like product produced by that portion of the
industry expressing support for, or opposition to, the Petition.\24\
Accordingly, Commerce determines that the Petition was filed on behalf
of the domestic industry within the meaning of section 702(b)(1) of the
Act.\25\
---------------------------------------------------------------------------
\21\ See Petition at Volume I (3-5 and Exhibits I-1 through I-3,
I-5, and I-18); see also First General Issues Supplement at 4-8 and
Exhibits I-Supp-2 through I-Supp-4. For further discussion, see
Attachment II of the China CVD Initiation Checklist.
\22\ See China CVD Initiation Checklist at Attachment II; see
also section 702(c)(4)(D) of the Act.
\23\ See China CVD Initiation Checklist at Attachment II.
\24\ Id.
\25\ Id.
---------------------------------------------------------------------------
Injury Test
Because China is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from China materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefiting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, the petitioner
alleges that subject imports exceed the negligibility threshold
provided for under section 771(24)(A) of the Act.\26\
---------------------------------------------------------------------------
\26\ See Petition at Volume I (34 and Exhibit I-34).
---------------------------------------------------------------------------
The petitioner contends that the industry's injured condition is
illustrated by a significant volume of subject imports; reduced market
share; underselling and price depression and/or suppression; lost sales
and revenues; declines in production, U.S. shipments, and capacity
utilization; decline in employment; and decline in financial
performance.\27\ We assessed the allegations and supporting evidence
regarding material injury, threat of material injury, causation, as
well as negligibility, and we have determined that these allegations
are properly supported by adequate evidence, and meet the statutory
requirements for initiation.\28\
---------------------------------------------------------------------------
\27\ See Petition at Volume I (16-17, 24-57, and Exhibits I-3,
I-4, I-15 through I-18, and I-21 through I-63); see also First
General Issues Supplement at 9-12 and Exhibits I-Supp-5 through I-
Supp-7.
\28\ See China CVD Initiation Checklist at Attachment III
(Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Certain Freight Rail Couplers and Parts thereof from the
People's Republic of China and Mexico).
---------------------------------------------------------------------------
Initiation of CVD Investigation
Based upon our examination of the Petition and supplemental
responses,
[[Page 64443]]
we find that the Petition meets the requirements of section 702 of the
Act. Therefore, we are initiating a CVD investigation to determine
whether imports of freight rail couplers from China benefit from
countervailable subsidies conferred by the GOC. Based on our review of
the Petition, we find that there is sufficient information to initiate
a CVD investigation on all 33 of the alleged programs. Additionally, we
find that there is sufficient information to initiate on the allegation
pertaining to the uncreditworthiness of CRRC Corporation Limited (CRRC)
and will conduct the appropriate investigation, should CRRC be selected
as a mandatory respondent. For a full discussion of the basis for our
decision to initiate on each program, see the China CVD Initiation
Checklist. The initiation checklist for this investigation is available
on ACCESS. In accordance with section 703(b)(1) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determination no later than 65 days after the date of this initiation.
Respondent Selection
The petitioner named twelve companies in China as producers and/or
exporters of freight rail couplers.\29\ Commerce intends to follow its
standard practice in CVD investigations and calculate company-specific
subsidy rates in this investigation. In the event that Commerce
determines that the number of companies is large and it cannot
individually examine each company based upon Commerce's resources,
where appropriate, Commerce intends to select mandatory respondents
based on quantity and value (Q&V) questionnaires issued to the
potential respondents. Commerce normally selects mandatory respondents
in CVD investigations using U.S. Customs and Border Protection (CBP)
entry data for U.S. imports under the appropriate Harmonized Tariff
Schedule of the United States (HTSUS) subheadings listed in the scope
of the investigation. However, for this investigation, one of the HTSUS
subheadings under which the subject merchandise would enter (i.e.,
8607.30.1000) is a basket category under which non-subject merchandise
may enter. Therefore, we cannot rely on CBP entry data in selecting
respondents. Because there are twelve producers and/or exporters
identified in the Petition, Commerce intends instead to issue Q&V
questionnaires to each potential respondent for which the petitioner
has provided a complete address.
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\29\ See Petition at Volume I (13 and Exhibit I-10).
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In addition, Commerce will post the Q&V questionnaire along with
filing instructions on E&C's website at https://access.trade.gov/resources/questionnaires/questionnaires-ad.html. Producers/exporters of
freight rail couplers from China that do not receive Q&V questionnaires
by mail may still submit a response to the Q&V questionnaire and can
obtain the Q&V questionnaire from E&C's website. In the event Commerce
decides to limit the number of respondents individually investigated,
Commerce intends to base respondent selection on the responses to the
Q&V questionnaire that it receives.
Responses to the Q&V questionnaire must be submitted by the
relevant Chinese producers/exporters no later than 5:00 p.m. ET on
November 1, 2022, which is two weeks from the signature date of this
notice. All Q&V responses must be filed electronically via ACCESS. An
electronically filed document must be received successfully, in its
entirety, by ACCESS no later than 5:00 p.m. ET on the deadline noted
above.
Interested parties must submit applications for disclosure under
administrative protective order (APO) in accordance with 19 CFR
351.305(b). Instructions for filing such applications may be found on
E&C's website at https://www.trade.gov/administrative-protective-orders. Commerce intends to finalize its decisions regarding respondent
selection within 20 days of publication of this notice.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the GOC via ACCESS. Furthermore, to the extent practicable,
Commerce will attempt to provide a copy of the public version of the
Petition to each exporter named in the Petition, as provided under 19
CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of freight rail couplers from China are
materially injuring, or threatening material injury to, a U.S.
industry.\30\ A negative ITC determination will result in the
investigation being terminated.\31\ Otherwise, this investigation will
proceed according to statutory and regulatory time limits.
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\30\ See section 703(a)(1) of the Act.
\31\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i) through (iv). Section 351.301(b) of
Commerce's regulations requires any party, when submitting factual
information, to specify under which subsection of 19 CFR 351.102(b)(21)
the information is being submitted \32\ and, if the information is
submitted to rebut, clarify, or correct factual information already on
the record, to provide an explanation identifying the information
already on the record that the factual information seeks to rebut,
clarify, or correct.\33\ Time limits for the submission of factual
information are addressed in 19 CFR 351.301, which provides specific
time limits based on the type of factual information being submitted.
Interested parties should review the regulations prior to submitting
factual information in this investigation.
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\32\ See 19 CFR 351.301(b).
\33\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301.\34\ For submissions that are
due from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, Commerce may elect to specify a different
time limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, Commerce will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension
[[Page 64444]]
request must be made in a separate, stand-alone submission; under
limited circumstances we will grant untimely-filed requests for the
extension of time limits. Parties should review Commerce's regulations
concerning the extension of time limits and the Time Limits Final Rule
prior to submitting extension requests or factual information in this
investigation.\35\
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\34\ See 19 CFR 351.302.
\35\ See 19 CFR 351; see also Extension of Time Limits; Final
Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final Rule),
available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\36\
Parties must use the certification formats provided in 19 CFR
351.303(g).\37\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\36\ See section 782(b) of the Act.
\37\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Parties wishing to participate
in this investigation should ensure that they meet the requirements of
document submission procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR 351.103(d)) (e.g., by filing the
required letter of appearance).\38\ Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\39\
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\38\ See Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January
22, 2008).
\39\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
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This notice is issued and published pursuant to sections 702 and
777(i) of the Act, and 19 CFR 351.203(c).
Dated: October 18, 2022.
Lisa W. Wang,
Assistant Secretary, for Enforcement and Compliance.
Appendix
Scope of the Investigation
The scope of this investigation covers certain freight railcar
couplers (also known as ``fits'' or ``assemblies'') and parts
thereof. Freight railcar couplers are composed of two main parts,
namely knuckles and coupler bodies but may also include other items
(e.g., coupler locks, lock lift assemblies, knuckle pins, knuckle
throwers, and rotors). The parts of couplers that are covered by the
investigation include: (1) E coupler bodies, (2) E/F coupler bodies,
(3) F coupler bodies, (4) E knuckles, and (5) F knuckles, as set
forth by the Association of American Railroads (AAR). The freight
rail coupler parts (i.e., knuckles and coupler bodies) are included
within the scope of this investigation when imported separately.
Coupler locks, lock lift assemblies, knuckle pins, knuckle throwers,
and rotors are covered merchandise when imported in an assembly but
are not covered by the scope when imported separately.
Subject freight railcar couplers and parts are included within
the scope whether finished or unfinished, whether imported
individually or with other subject or nonsubject parts, whether
assembled or unassembled, whether mounted or unmounted, or if joined
with nonsubject merchandise, such as other nonsubject parts or a
completed railcar. Finishing includes, but is not limited to, arc
washing, welding, grinding, shot blasting, heat treatment,
machining, and assembly of various parts. When a subject coupler or
subject parts are mounted on or to other nonsubject merchandise,
such as a railcar, only the coupler or subject parts are covered by
the scope.
The finished products covered by the scope of this investigation
meet or exceed the AAR specifications of M-211, ``Foundry and
Product Approval Requirements for the Manufacture of Couplers,
Coupler Yokes, Knuckles, Follower Blocks, and Coupler Parts'' and/or
AAR M-215 ``Coupling Systems,'' or other equivalent domestic or
international standards (including any revisions to the
standard(s)).
The country of origin for subject couplers and parts thereof,
whether fully assembled, unfinished or finished, or attached to a
railcar, is the country where the subject coupler parts were cast or
forged. Subject merchandise includes coupler parts as defined above
that have been further processed or further assembled, including
those coupler parts attached to a railcar in third countries.
Further processing includes, but is not limited to, arc washing,
welding, grinding, shot blasting, heat treatment, painting, coating,
priming, machining, and assembly of various parts. The inclusion,
attachment, joining, or assembly of nonsubject parts with subject
parts or couplers either in the country of manufacture of the in-
scope product or in a third country does not remove the subject
parts or couplers from the scope.
The couplers that are the subject of this investigation are
currently classifiable in the Harmonized Tariff Schedule of the
United States (HTSUS) statistical reporting number 8607.30.1000.
Unfinished subject merchandise may also enter under HTSUS
statistical reporting number 7326.90.8688. Subject merchandise
attached to finished railcars may also enter under HTSUS statistical
reporting numbers 8606.10.0000, 8606.30.0000, 8606.91.0000,
8606.92.0000, 8606.99.0130, 8606.99.0160, or under subheading
9803.00.5000 if imported as an Instrument of International Traffic.
Subject merchandise may also be imported under HTSUS statistical
reporting number 7325.99.5000. These HTSUS subheadings are provided
for convenience and customs purposes only; the written description
of the scope of this investigation is dispositive.
[FR Doc. 2022-23135 Filed 10-24-22; 8:45 am]
BILLING CODE 3510-DS-P