Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China and Mexico: Initiation of Less-Than-Fair-Value Investigations, 64444-64450 [2022-23136]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 87, Number 205 (Tuesday, October 25, 2022)]
[Notices]
[Pages 64444-64450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-23136]


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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 Less-Than-Fair-Value 
Investigations

AGENCY: 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.

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\
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    \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.
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    Between September 30 and October 11, 2022, Commerce requested

[[Page 64445]]

supplemental information pertaining to certain aspects of the Petitions 
in separate supplemental questionnaires.\3\ The petitioner filed timely 
responses to these requests for additional information.\4\
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    \3\ See Commerce's Letters, ``Petition 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); ``Petition for the 
Imposition of Antidumping Duties on Imports of Certain Freight Rail 
Couplers and Parts Thereof from the People's Republic of China: 
Supplemental Questions,'' dated October 3, 2022; and ``Petition for 
the Imposition of Antidumping Duties on Imports of Certain Freight 
Rail Couplers and Parts Thereof from Mexico: Supplemental 
Questions,'' dated October 3, 2022; see also Memoranda, ``Petitions 
for the Imposition of Antidumping and Countervailing Duties on 
Imports of Freight Rail Couplers and Parts Thereof from the People's 
Republic of China and Antidumping Duties on Certain Freight Rail 
Couplers and Parts Thereof from Mexico: Phone Call with Counsel to 
the Petitioner,'' dated October 7, 2022 (Commerce's Second General 
Issues Supplemental); ``Petition for the Imposition of Antidumping 
Duties on Imports of Certain Freight Rail Couplers and Parts Thereof 
from Mexico: Supplemental Questions,'' dated October 11, 2022; and 
``Petition for the Imposition of Antidumping Duties on Imports of 
Certain Freight Rail Couplers and Parts Thereof from the People's 
Republic of China: Supplemental Questions,'' dated October 11, 2022.
    \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 and the United 
Mexican States: Response to the First Supplemental Questions for 
Volume II China Antidumping Petition,'' dated October 7, 2022; 
``Certain Freight Rail Couplers and Parts Thereof from the People's 
Republic of China and the United Mexican States: Response to the 
First Supplemental Questions for Volume IV Mexico Antidumping 
Petition,'' dated October 7, 2022; ``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); ``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 
IV Mexico Antidumping Duty Petition,'' dated October 13, 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 II China Antidumping Duty 
Petition,'' dated October 13, 2022.
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of freight rail 
couplers from China and Mexico are being, or are likely to be, sold in 
the United States at less than fair value (LTFV) within the meaning of 
section 731 of the Act, and that imports of such products are 
materially injuring, or threatening material injury to, the freight 
rail coupler industry in the United States. Consistent with section 
732(b)(1) of the Act, the Petitions are accompanied by information 
reasonably available to the petitioner supporting their allegations.
    Commerce finds that the petitioner filed the Petitions 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 for the 
initiation of the requested AD investigations.\5\
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    \5\ See infra, section on ``Determination of Industry Support 
for the Petitions.''
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Periods of Investigation

    Because the Petitions were filed on September 28, 2022, pursuant to 
19 CFR 351.204(b)(1), the period of investigation (POI) for the Mexico 
AD investigation is July 1, 2021, through June 30, 2022. Because China 
is a non-market economy (NME) country, pursuant to section 
351.204(b)(1), the POI for the China investigation is January 1, 2022, 
through June 30, 2022.

Scope of the Investigations

    The products covered by these investigations are freight rail 
couplers from China and Mexico. For a full description of the scope of 
these investigations, see the appendix to this notice.

Comments on the Scope of the Investigations

    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 Petitions is an accurate reflection of the 
products for which the domestic industry is seeking relief.\6\ On 
October 4 and 11, 2022, the petitioner revised the scope.\7\ The 
description of merchandise covered by these investigations, as 
described in the appendix to this notice, reflects these 
clarifications.
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    \6\ See Commerce's First General Issues Supplemental at 3-4; see 
also Commerce's Second General Issues Supplemental at 1-2.
    \7\ See First General Issues Supplement at 1-3 and Exhibit I-
Supp-1; see also Second General Issues Supplement at 2 and Exhibit 
I-Supp2-4.
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    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).\8\ 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,\9\ 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.
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    \8\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \9\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
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    Commerce requests that any factual information that parties 
consider relevant to the scope of the investigations be submitted 
during this period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigations 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.\10\ An electronically filed document must be 
received successfully in its entirety by the time and date it is due.
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    \10\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014), for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
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Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of freight rail couplers to 
be reported in response to Commerce's AD questionnaires. This 
information will be used to identify the key physical characteristics 
of the subject merchandise in order to report the relevant factors of 
production (FOP) or cost of production (COP) accurately, as well as to 
develop appropriate product-comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide

[[Page 64446]]

comments as to which characteristics are appropriate to use as: (1) 
general product characteristics; and (2) product comparison criteria. 
We note that it is not always appropriate to use all product 
characteristics as product comparison criteria. We base product 
comparison criteria on meaningful commercial differences among 
products. In other words, although there may be some physical product 
characteristics utilized by manufacturers to describe freight rail 
couplers, it may be that only a select few product characteristics take 
into account commercially meaningful physical characteristics. In 
addition, interested parties may comment on the order in which the 
physical characteristics should be used in matching products. 
Generally, Commerce attempts to list the most important physical 
characteristics first and the least important characteristics last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on November 7, 
2022. Any rebuttal comments must be filed by 5:00 p.m. ET on November 
17, 2022. All comments and submissions to Commerce must be filed 
electronically using ACCESS, as explained above, on the record of each 
of the AD investigations.

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(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,\11\ 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.\12\
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    \11\ See section 771(10) of the Act.
    \12\ 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)).
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    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 investigations.\13\ 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.\14\
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    \13\ See Petitions at Volume I (17-21 and Exhibit I-19); see 
also First General Issues Supplement at 8-9.
    \14\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see AD Investigation Initiation Checklists, ``Certain Freight Rail 
Couplers and Parts Thereof from the People's Republic of China,'' 
and ``Certain Freight Rail Couplers and Parts Thereof from Mexico,'' 
both dated concurrently with this notice (China AD Initiation 
Checklist and Mexico AD Initiation Checklist, respectively), 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).
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    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
own production of freight rail couplers in 2021 and compared this to 
the estimated total 2021 production of the domestic like product for 
the entire U.S. industry.\15\ We relied on data provided by the 
petitioner for purposes of measuring industry support.\16\
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    \15\ See Petitions at Volume I (4-5 and Exhibits I-5 and I-18); 
see also First General Issues Supplement at 4-6 and Exhibits I-Supp-
2 and I-Supp-3.
    \16\ Id. For further discussion, see Attachment II of the China 
and Mexico AD Initiation Checklists.
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    Our review of the data provided in the Petitions, First General 
Issues Supplement, Second General Issues Supplement, and other 
information readily available to Commerce indicates that the petitioner 
has established industry support for the Petitions.\17\ First, the 
Petitions 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).\18\ Second, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 732(c)(4)(A)(i) 
of the Act because the domestic producers (or workers) who support the 
Petitions account for at least 25 percent of the total production of 
the domestic like product.\19\ Finally, the domestic producers (or 
workers) have met the statutory criteria for industry support under 
section 732(c)(4)(A)(ii) of the Act because the domestic producers (or 
workers) who support the Petitions 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 
Petitions.\20\ Accordingly, Commerce determines that the Petitions were 
filed on behalf of the domestic industry within the meaning of section 
732(b)(1) of the Act.\21\
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    \17\ See Petitions at Volume I (3-5 and Exhibits I-1 through I-
3, I-5, and I-18); see also First General Issues Supplemental 
Response at 4-8 and Exhibits I-Supp-2 through I-Supp-4. For further 
discussion, see Attachment II of the China and Mexico AD Initiation 
Checklists.
    \18\ See Attachment II of the China and Mexico AD Initiation 
Checklists; see also section 732(c)(4)(D) of the Act.
    \19\ See Attachment II of the China and Mexico AD Initiation 
Checklists.
    \20\ Id.
    \21\ Id.

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[[Page 64447]]

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner alleges that 
subject imports exceed the negligibility threshold provided for under 
section 771(24)(A) of the Act.\22\
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    \22\ See Petitions at Volume I (34 and Exhibit I-34).
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    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; decline in financial performance, 
and the magnitude of the estimated dumping margins.\23\ 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.\24\
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    \23\ See Petitions 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.
    \24\ See China and Mexico AD Initiation Checklists 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).
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Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate AD investigations of 
imports of freight rail couplers from China and Mexico. The sources of 
data for the deductions and adjustments relating to U.S. price and 
normal value (NV) are discussed in greater detail in the China and 
Mexico AD Initiation Checklists.

U.S. Price

    For China and Mexico, the petitioner based export price (EP), on 
pricing information for sales of, or sales offers for, freight rail 
couplers produced in and exported from each country. The petitioner 
made certain adjustments to U.S. price to calculate a net ex-factory 
U.S. price, where appropriate.\25\
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    \25\ See China and Mexico AD Initiation Checklists.
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Normal Value \26\
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    \26\ In accordance with section 773(b)(2) of the Act, for the 
Mexico investigation, Commerce will request information necessary to 
calculate the constructed value (CV) and COP to determine whether 
there are reasonable grounds to believe or suspect that sales of the 
foreign like product have been made at prices that represent less 
than the COP of the product.
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    For Mexico, the petitioner stated that it was unable to obtain home 
market or third country prices for freight rail couplers to use as a 
basis for NV.\27\ Therefore, for Mexico, the petitioner calculated NV 
based on CV.\28\ For further discussion of CV, see the section ``Normal 
Value Based on Constructed Value.''
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    \27\ See Mexico AD Initiation Checklist.
    \28\ Id.
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    Commerce considers China to be an NME country.\29\ In accordance 
with section 771(18)(C)(i) of the Act, any determination that a foreign 
country is an NME country shall remain in effect until revoked by 
Commerce. Therefore, we continue to treat China as an NME country for 
purposes of the initiation of this investigation. Accordingly, NV in 
China is appropriately based on FOPs valued in a surrogate market 
economy country, in accordance with section 773(c) of the Act.
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    \29\ See, e.g., Antidumping Duty Investigation of Certain 
Aluminum Foil from the People's Republic of China: Affirmative 
Preliminary Determination of Sales at Less-Than-Fair Value and 
Postponement of Final Determination, 82 FR 50858, 50861 (November 2, 
2017), and accompanying Preliminary Decision Memorandum, at 
``China's Status as a Non-Market Economy,'' unchanged in Certain 
Aluminum Foil from the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value, 83 FR 9282 (March 5, 
2018).
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    The petitioner claims that the Republic of Turkey (Turkey) is an 
appropriate surrogate country for China because Turkey is a market 
economy country that is at a level of economic development comparable 
to that of China and is a significant producer of comparable 
merchandise.\30\ The petitioner provided publicly available information 
from Turkey to value all FOPs.\31\ Based on the information provided by 
the petitioner, we determine that it is appropriate to use Turkey as a 
surrogate country for initiation purposes.
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    \30\ See Petitions at Volume II (8-9).
    \31\ Id.
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    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    The petitioner used the product-specific consumption rates of a 
U.S. producer of freight rail couplers as a surrogate to value the 
Chinese manufacturer's FOPs.\32\ Additionally, the petitioner 
calculated factory overhead, selling, general and administrative (SG&A) 
expenses, and profit based on the experience of a Turkish producer of 
comparable merchandise (i.e., iron-casted products used in automotive, 
agricultural, construction, mining, and machine building 
applications).\33\
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    \32\ Id. at 10 and Exhibit II-13.
    \33\ Id. at 17 and Exhibit II-27.
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Normal Value Based on Constructed Value

    As noted above, for Mexico, the petitioner stated it was unable to 
obtain home market or third-country prices for freight rail couplers to 
use as a basis for NV. Therefore, the petitioner calculated NV based on 
CV.\34\
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    \34\ See Mexico AD Initiation Checklist.
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    Pursuant to section 773(e) of the Act, the petitioner calculated CV 
as the sum of the cost of manufacturing (COM), SG&A expenses, financial 
expenses, and profit.\35\ In calculating the COM, the petitioner relied 
on the production experience and input consumption rates of a U.S. 
freight rail couplers producer, valued using publicly available 
information applicable to Mexico.\36\ In calculating SG&A expenses, 
financial expenses, and profit ratios (where applicable), the 
petitioner relied on the fiscal year 2021 financial statements of a 
producer of comparable merchandise (i.e., iron-casted parts used in the 
automotive industry) in Mexico.\37\
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    \35\ Id.
    \36\ Id.
    \37\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of freight rail couplers from China and Mexico are 
being, or are likely to be, sold in the United States at LTFV. Based on 
comparisons of EP to NV in accordance with sections 772 and 773 of the 
Act, the estimated dumping margins for freight rail couplers for each 
of the countries covered by this initiation are as follows: (1) China--
67.45 and 169.90 percent ad valorem; \38\ and (2) Mexico--160.05 and 
187.08 percent ad valorem.\39\
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    \38\ See China AD Initiation Checklist for details of the 
calculations.
    \39\ See Mexico AD Initiation Checklist for details of the 
calculations.

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[[Page 64448]]

Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 732 of 
the Act. Therefore, we are initiating AD investigations to determine 
whether imports of freight rail couplers from China and Mexico are 
being, or are likely to be, sold in the United States at LTFV. In 
accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determinations no later than 140 days after the date of this 
initiation.

Respondent Selection

China

    In the Petitions, the petitioner named twelve companies in China as 
producers and/or exporters of freight rail couplers.\40\ In accordance 
with our standard practice for respondent selection in AD 
investigations involving NME countries, Commerce selects respondents 
based on quantity and value (Q&V) questionnaires in cases where it has 
determined that the number of companies is large and it cannot 
individually examine each company based upon its resources. Therefore, 
considering the number of producers and exporters identified in the 
Petition, Commerce will solicit Q&V information that can serve as a 
basis for selecting exporters for individual examination in the event 
that Commerce decides to limit the number of respondents individually 
examined pursuant to section 777A(c)(2) of the Act. Because there are 
twelve producers and/or exporters identified in the Petition, Commerce 
intends to issue Q&V questionnaires to each potential respondent for 
which the petitioner has provided a complete address.
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    \40\ See Petitions at Volume I (12 and Exhibit I-13).
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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 a copy of the Q&V questionnaire from E&C's website. In 
accordance with the standard practice for respondent selection in AD 
cases involving NME countries, 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 questionnaire 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.

Mexico

    In the Petitions, the petitioner identified one company as a 
producer/exporter of freight rail couplers in Mexico, ASF-K de Mexico, 
S.de R.L. de C.V. Sahagun (Amsted), and provided independent third-
party information as support.\41\ We currently know of no additional 
producers/exporters of subject merchandise from Mexico. Accordingly, 
Commerce intends to examine all known producers/exporters in this 
investigation (i.e., Amsted).
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    \41\ See Petitions at Volume I (Exhibits I-3 and I-14) and 
Volume IV (Exhibit IV-3); see also Second General Issues Supplement 
at 3 and Exhibit I-Supp2-5.
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    We invite interested parties to comment on this issue. Such 
comments may include factual information within the meaning of 19 CFR 
351.102(b)(21). Parties wishing to comment must do so within three days 
of the publication of this notice in the Federal Register. Comments 
must be filed electronically using ACCESS. An electronically-filed 
document must be received successfully in its entirety via ACCESS by 
5:00 p.m. ET on the specified deadline. Because we intend to examine 
all known producers in Mexico, if no comments are received or if 
comments received further support the existence of this sole producer/
exporter in Mexico, we do not intend to conduct respondent selection 
and will proceed to issuing the initial AD questionnaire to Amsted. 
However, if comments are received which create a need for a respondent 
selection process, we intend to finalize our decisions regarding 
respondent selection within 20 days of publication of this notice.

Separate Rates

    In order to obtain separate rate status in an NME investigation, 
exporters and producers must submit a separate rate application.\42\ 
The specific requirements for submitting a separate rate application in 
a China investigation are outlined in detail in the application itself, 
which is available on Commerce's website at https://access.trade.gov/Resources/nme/nme-sep-rate.html. The separate rate application will be 
due 30 days after publication of this initiation notice.\43\ Exporters 
and producers who submit a separate rate application and have been 
selected as mandatory respondents will be eligible for consideration 
for separate rate status only if they respond to all parts of 
Commerce's AD questionnaire as mandatory respondents. Commerce requires 
that companies from China submit a response both to the Q&V 
questionnaire and the separate rate application by the respective 
deadlines in order to receive consideration for separate rate status. 
Companies not filing a timely Q&V questionnaire response will not 
receive separate rate consideration.
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    \42\ See E&C's Policy Bulletin No. 05.1, regarding, ``Separate-
Rates Practice and Application of Combination Rates in Antidumping 
Investigation involving NME Countries,'' (April 5, 2005) (Policy 
Bulletin 05.1), available at https://enforcement.trade.gov/policy/bull05-1.pdf.
    \43\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. Policy 
Bulletin 05.1 states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that {Commerce{time}  will now 
assign in its NME Investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is 
referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\44\
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    \44\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR

[[Page 64449]]

351.202(f), copies of the public version of the Petitions have been 
provided to the governments of China and Mexico via ACCESS. 
Furthermore, to the extent practicable, Commerce will attempt to 
provide a copy of the public version of the Petitions to each exporter 
named in the Petitions, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of its initiation, as required by 
section 732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of freight rail couplers from China and/or 
Mexico are materially injuring, or threatening material injury to, a 
U.S. industry.\45\ A negative ITC determination for any country will 
result in the investigation being terminated with respect to that 
country.\46\ Otherwise, these investigations will proceed according to 
statutory and regulatory time limits.
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    \45\ See section 733(a) of the Act.
    \46\ 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)-(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 \47\ 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.\48\ 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 these investigations.
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    \47\ See 19 CFR 351.301(b).
    \48\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 773(e) of the Act addresses the concept of particular 
market situation (PMS) for purposes of CV, stating that ``if a 
particular market situation exists such that the cost of materials and 
fabrication or other processing of any kind does not accurately reflect 
the COP in the ordinary course of trade, the administering authority 
may use another calculation methodology under this subtitle or any 
other calculation methodology.'' When an interested party submits a PMS 
allegation pursuant to section 773(e) of the Act, Commerce will respond 
to such a submission consistent with 19 CFR 351.301(c)(2)(v). If 
Commerce finds that a PMS exists under section 773(e) of the Act, then 
it will modify its dumping calculations appropriately.
    Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), set 
a deadline for the submission of PMS allegations and supporting factual 
information. However, in order to administer section 773(e) of the Act, 
Commerce must receive PMS allegations and supporting factual 
information with enough time to consider the submission. Thus, should 
an interested party wish to submit a PMS allegation and supporting new 
factual information pursuant to section 773(e) of the Act, it must do 
so no later than 20 days after submission of a respondent's initial 
section D questionnaire response.

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.\49\ For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, standalone 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 factual 
information in these investigations.\50\
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    \49\ See 19 CFR 351.302.
    \50\ 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.\51\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\52\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \51\ See section 782(b) of the Act.
    \52\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
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 these investigations should ensure that they meet the requirements 
of 19 CFR 351.103(d) (e.g., by filing the required letter of 
appearance).\53\ Note that Commerce has temporarily modified certain of 
its requirements for serving documents containing business proprietary 
information, until further notice.\54\
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    \53\ See Antidumping and Countervailing Duty Proceedings: 
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January 
22, 2008).
    \54\ 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 732(c)(2) 
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 Investigations

    The scope of these investigations 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

[[Page 64450]]

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 investigations 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 the 
investigations 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 these 
investigations 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 these investigations 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 these investigations is dispositive.
[FR Doc. 2022-23136 Filed 10-24-22; 8:45 am]
BILLING CODE 3510-DS-P