Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Preliminary Affirmative Critical Circumstances Determination, 13425-13428 [2023-04438]

Download as PDF Federal Register / Vol. 88, No. 42 / Friday, March 3, 2023 / Notices ddrumheller on DSK120RN23PROD with NOTICES1 interested parties of the deadline for the submission of case briefs. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than five days after the deadline date for case briefs unless otherwise modified by Commerce.17 Note that Commerce has temporarily modified certain of its requirements for serving documents containing business proprietary information until further notice.18 Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this review are encouraged to submit with each argument: (1) A statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities. Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, filed electronically using ACCESS. An electronically-filed request must be received successfully, and in its entirety, by ACCESS by 5:00 p.m. Eastern Time, within 30 days after the date of publication of this notice. Hearing requests should contain the party’s name, address, and telephone number, the number of participants, whether any participant is a foreign national, and a list of the issues to be discussed. If a request for a hearing is made, parties will be notified of the date and time for the hearing to be determined. Unless extended, we intend to issue the final results of this administrative review, which will include the results of our analysis of the issues raised in the case briefs, within 120 days of publication of these preliminary results in the Federal Register, pursuant to section 751(a)(3)(A) of the Act and 19 CFR 351.213(h). Cash Deposit Requirements Pursuant to section 751(a)(2)(C) of the Act, Commerce intends, upon publication of the final results, to instruct CBP to collect cash deposits of estimated countervailing duties in the amounts shown for each of the respondents listed above on shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this 17 See 19 CFR 351.309(d)(1). Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 29615 (May 18, 2020); and Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 41363 (July 10, 2020). administrative review. If the rate calculated in the final results is zero or de minimis, no cash deposit will be required on shipments of the subject merchandise entered or withdrawn from warehouse, for consumption on or after the date of publication of the final results of this review. For all non-reviewed firms, CBP will continue to collect cash deposits of estimated countervailing duties at the all-others rate or the most recent company-specific rate applicable to the company, as appropriate. These cash deposit requirements, when imposed, shall remain in effect until further notice. Assessment Rates In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily assigned subsidy rates in the amounts shown above for the producers/ exporters shown above. Upon completion of the administrative review, consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), Commerce shall determine, and CBP shall assess, countervailing duties on all appropriate entries covered by this review. For the companies for which this review is rescinded, we will instruct CBP to assess countervailing duties on all appropriate entries at a rate equal to the cash deposit of estimated countervailing duties required at the time of entry, or withdrawal from warehouse, for consumption, during the period January 1, 2021, through December 31, 2021, in accordance with 19 CFR 351.212(c)(l)(i). For the companies remaining in the review, we intend to issue assessment instructions to CBP no earlier than 35 days after the date of publication of the final results of this review in the Federal Register. If a timely summons is filed at the U.S. Court of International Trade, the assessment instructions will direct CBP not to liquidate relevant entries until the time for parties to file a request for a statutory injunction has expired (i.e., within 90 days of publication). Notification to Interested Parties These preliminary results and notice are issued and published in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213 and 351.221(b)(4). 18 See VerDate Sep<11>2014 19:33 Mar 02, 2023 Jkt 259001 PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 13425 Dated: February 27, 2023. Abdelali Elouaradia, Deputy Assistant Secretary for Enforcement and Compliance. Appendix List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope of the Order IV. Non-Selected Companies Under Review V. Partial Rescission of Administrative Review VI. Intent to Rescind Administrative Review, In Part VII. Diversification of China’s Economy VIII. Use of Faces Otherwise Available and Application of Adverse Inferences IX. Subsidies Valuation X. Interest Rate, Discount Rate, Input, Electricity, and Land Benchmarks XI. Analysis of Programs XII. Recommendation [FR Doc. 2023–04436 Filed 3–2–23; 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: Preliminary Affirmative Countervailing Duty Determination and Preliminary Affirmative Critical Circumstances Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain freight rail couplers and parts thereof (freight rail couplers) From the People’s Republic of China (China) during the period of investigation January 1, 2021, through December 31, 2021. DATES: Applicable March 3, 2023. FOR FURTHER INFORMATION CONTACT: Terre Keaton Stefanova or Paul Gill, AD/CVD Operations, Office IX, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1280 or (202) 482–5673, respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). On October 18, 2022, E:\FR\FM\03MRN1.SGM 03MRN1 13426 Federal Register / Vol. 88, No. 42 / Friday, March 3, 2023 / Notices Commerce published the notice of initiation of this investigation.1 On December 2, 2022, Commerce postponed the preliminary determination of this investigation until February 27, 2023.2 For a complete description of the events that followed the initiation of this investigation, see the Preliminary Decision Memorandum.3 A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://access.trade.gov/public/ FRNoticesListLayout.aspx. Scope of the Investigation The products covered by this investigation are freight rail couplers from China. For a complete description of the scope of this investigation, see Appendix I. Scope Comments In accordance with the preamble to Commerce’s regulations,4 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).5 We received comments from several parties concerning the scope of the antidumping duty (AD) and countervailing duty (CVD) investigations of freight rail couplers as it appeared in the Initiation Notice, which are listed in the Preliminary Decision Memorandum.6 We are currently evaluating the scope comments filed by the interested parties and intend to issue our preliminary decision regarding the scope of the AD and CVD investigations shortly. We will incorporate the scope decisions from the AD investigations into the scope of the final CVD determination for this investigation, after considering any relevant comments submitted in scope case and rebuttal briefs. Preliminary Affirmative Determination of Critical Circumstances In accordance with section 703(e)(1) of the Act, we preliminarily find that critical circumstances exist with respect to imports of subject merchandise from Chongqing Tongyao, Qingdao Sanheshan, the non-responsive companies,7 and all other producers and/or exporters. For a full discussion of our preliminary critical circumstances determination, see the ‘‘Critical Circumstances’’ section of the Preliminary Decision Memorandum. Methodology Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient, and that the subsidy is specific.8 Commerce notes that, in making these findings, it relied on facts available and, because Commerce finds that necessary information was missing from the record and because respondents did not act to the best of their ability to respond to Commerce’s requests for information, Commerce drew an adverse inference in selecting from among the facts otherwise available.9 For further information, see the ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ section in the Preliminary Decision Memorandum. All-Others Rate Sections 703(d) and 705(c)(5)(A) of the Act provide that in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any zero and de minimis rates and any rates based entirely under section 776 of the Act. Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual estimated countervailable subsidy rates established for all exporters and producers individually examined are zero, de minimis, or determined based entirely on facts otherwise available, Commerce may use ‘‘any reasonable method’’ to establish the estimated subsidy rate for all other producers or exporters. In this investigation, Commerce preliminarily determined the individually estimated subsidy rate for each of the individually examined respondents based entirely on facts available under section 776 of the Act. This is the only rate available in this proceeding for deriving the all-others rate. Consequently, pursuant to sections 703(d) and 705(c)(5)(A)(ii) of the Act, Commerce established the all-others rate by applying the countervailable subsidy rate assigned to the mandatory respondents. Preliminary Determination Commerce preliminarily determines that the following estimated countervailable subsidy rates exist: Subsidy rate (percent ad valorem) Company ddrumheller on DSK120RN23PROD with NOTICES1 Chongqing Changzheng Heavy Industry Co., Ltd ............................................................................................................................... Chongqing Tongyao Transportation Equipment Co ............................................................................................................................ CRRC Qiqihar Co., Ltd ........................................................................................................................................................................ NanJing Zhongsheng Rolling Stock Components Co. Ltd .................................................................................................................. Ningbo Minghui Metal Technology Co., Ltd ........................................................................................................................................ Qingdao Lianshan Casting Co., Ltd .................................................................................................................................................... Qingdao Sanheshan Precision Casting Co., Ltd ................................................................................................................................. 1 See Certain Freight Rail Couplers and Parts Thereof from the People’s Republic of China: Initiation of Countervailing Duty Investigation, 87 FR 64440 (October 25, 2022) (Initiation Notice). 2 See Certain Freight Rail Couplers and Parts Thereof from the People’s Republic of China: Postponement of Preliminary Determination, 87 FR 74128 (December 2, 2022). 3 See Memorandum, ‘‘Decision Memorandum for the Preliminary Determination in the Countervailing Duty Investigation of Certain Freight VerDate Sep<11>2014 19:33 Mar 02, 2023 Jkt 259001 Rail Couplers and Parts Thereof from the People’s Republic of China,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). 4 See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19, 1997). 5 See Initiation Notice, 87 FR 64441. 6 See Preliminary Decision Memorandum at 1–22. 7 The non-responsive companies are: (1) Chongqing Changzheng Heavy Industry Co., Ltd.; (2) CRRC Qiqihar Co., Ltd.; (3) NanJing Zhongsheng PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 265.99 265.99 265.99 265.99 265.99 265.99 265.99 Rolling Stock Components Co. Ltd.; (4) Ningbo Minghui Metal Technology Co., Ltd.; (5) Qingdao Lianshan Casting Co., Ltd.; (6) Shaanxi Haiduo Railway Technology Development Co., Ltd.; and (7) Shanghai Voith Xiagujin Chuang Coupler Technology Co., Ltd. 8 See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity. 9 See sections 776(a) and (b) of the Act. E:\FR\FM\03MRN1.SGM 03MRN1 Federal Register / Vol. 88, No. 42 / Friday, March 3, 2023 / Notices Subsidy rate (percent ad valorem) Company Shaanxi Haiduo Railway Technology Development Co., Ltd ............................................................................................................. Shanghai Voith Xiagujin Chuang Coupler Technology Co., Ltd ......................................................................................................... All Others ............................................................................................................................................................................................. Suspension of Liquidation In accordance with section 703(e)(2)(A) of the Act, because we find that critical circumstances exist for Chongqing Tongyao, Qingdao Sanheshan, the non-responsive companies, and all other producers and/ or exporters, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise as described in the scope of the investigation entered, or withdrawn from warehouse, for consumption on or after the date 90 days prior to the date of publication of this notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. Disclosure Normally, Commerce discloses its calculations and analysis performed in connection with the preliminary determination to interested parties within five days of its public announcement, or if there is no public announcement, within five days of the date of publication of this notice, in accordance with 19 CFR 351.224(b). However, because Commerce preliminarily applied total AFA in the calculation of the benefit for Chongqing Tongyao, Qingdao Sanheshan, and the non-responsive companies, and the applied AFA rates are based on rates calculated in prior proceedings, there are no calculations to disclose. ddrumheller on DSK120RN23PROD with NOTICES1 Verification Because the examined respondents in this investigation did not provide information Commerce requested and Commerce preliminarily determines that each of the examined respondents have been uncooperative, it will not conduct verification. Public Comment All interested parties will have the opportunity to submit scope case and rebuttal briefs on the preliminary decision regarding the scope of the AD and CVD investigations. The deadlines to submit scope case and rebuttal briefs will be provided in the preliminary scope decision memorandum. For all scope case and rebuttal briefs, parties must file identical documents VerDate Sep<11>2014 19:33 Mar 02, 2023 Jkt 259001 simultaneously on the records of the ongoing AD and CVD freight rail couplers investigations. No new factual information or business proprietary information may be included in either scope case or rebuttal briefs. Case briefs or other written comments on non-scope issues may be submitted to the Assistant Secretary for Enforcement and Compliance no later than 20 days after the date of publication of the preliminary determination. Rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than seven days after the deadline date for case briefs.10 Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal briefs in this investigation are encouraged to submit with each argument: (1) a statement of the issue; (2) a brief summary of the argument; and (3) a table of authorities. Commerce has modified certain of its requirements for serving documents containing business proprietary information until further notice.11 Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce within 30 days after the date of publication of this notice. Requests should contain the party’s name, address, and telephone number, the number of participants, and a list of the issues to be discussed. Oral presentations at the hearing will be limited to issues raised in the briefs. If a request for a hearing is made, parties will be notified of the time and date for the hearing.12 International Trade Commission Notification In accordance with section 703(f) of the Act, Commerce will notify the U.S. International Trade Commission (ITC) of its determination. If the final determination is affirmative, the ITC will determine before the later of 120 10 See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements). 11 See Temporary Rule Modifying AD/CVD Service Requirements Due to COVID–19; Extension of Effective Period, 85 FR 41363 (July 10, 2020). 12 See 19 CFR 351.310(d). PO 00000 Frm 00006 Fmt 4703 13427 Sfmt 4703 265.99 265.99 265.99 days after the date of this preliminary determination or 45 days after the final determination whether imports of freight rail couplers from China are materially injuring, or threaten material injury to, the U.S. industry. Notification to Interested Parties This determination is issued and published pursuant to sections 703(f) and 777(i) of the Act, and 19 CFR 351.205(c). Dated: February 27, 2023. Abdelali Elouaradia, Deputy Assistant Secretary for Enforcement and Compliance. Appendix I 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 the 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 non-subject merchandise, such as other non-subject 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 non-subject 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 E:\FR\FM\03MRN1.SGM 03MRN1 13428 Federal Register / Vol. 88, No. 42 / Friday, March 3, 2023 / Notices 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 the investigation is dispositive. Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope of the Investigation IV. Injury Test V. Diversification of China’s Economy VI. Use of Facts Otherwise Available and Adverse Inferences VII. Analysis of Programs VIII. Critical Circumstances IX. Recommendation [FR Doc. 2023–04438 Filed 3–2–23; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE ddrumheller on DSK120RN23PROD with NOTICES1 International Trade Administration Meeting of the United States Travel and Tourism Advisory Board International Trade Administration, Department of Commerce. AGENCY: ACTION: Notice of an open meeting. VerDate Sep<11>2014 19:33 Mar 02, 2023 Jkt 259001 The United States Travel and Tourism Advisory Board (Board or TTAB) will hold a meeting on Monday, March 20, 2023. The Board advises the Secretary of Commerce on matters relating to the U.S. travel and tourism industry. This will be the first meeting of the 2023–2024 term of the TTAB. The main purpose of this introductory meeting is for Board members to discuss the effects of the COVID–19 pandemic on the travel and tourism industry. The final agenda will be posted on the Department of Commerce website for the Board at https://www.trade.gov/ttabmeetings at least two days prior to the meeting. DATES: Monday, March 20, 2023, 11:00 a.m.–12:30 p.m. EDT. The deadline for members of the public to register for the meeting or to submit written comments for dissemination prior to the meeting is 5:00 p.m. EDT on Wednesday, March 15, 2023. ADDRESSES: The meeting will be held virtually. The access information will be provided by email to registrants. Requests to register (including to speak or for auxiliary aids) and any written comments should be submitted by email to TTAB@trade.gov. FOR FURTHER INFORMATION CONTACT: Jennifer Aguinaga, the United States Travel and Tourism Advisory Board, National Travel and Tourism Office, U.S. Department of Commerce; telephone: 202–482–2404; email: TTAB@trade.gov. SUPPLEMENTARY INFORMATION: Public Participation: The meeting will be open to the public and will be accessible to people with disabilities. Any member of the public requesting to join the meeting is asked to register in advance by the deadline identified under the DATES caption. Requests for auxiliary aids must be submitted by the registration deadline. Last minute requests will be accepted but may not be possible to fill. There will be fifteen (15) minutes allotted for oral comments from members of the public joining the meeting. To accommodate as many speakers as possible, the time for public comments may be limited to three (3) minutes per person. Members of the public wishing to reserve speaking time during the meeting must submit a request at the time of registration, as well as the name and address of the proposed speaker. If the number of registrants requesting to make statements is greater than can be reasonably accommodated during the meeting, the International Trade Administration may conduct a lottery to determine the speakers. Speakers are requested to submit a written copy of SUMMARY: PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 their prepared remarks by 5:00 p.m. EDT on Wednesday, March 15, 2023, for inclusion in the meeting records and for circulation to the members of the Board. In addition, any member of the public may submit pertinent written comments concerning the Board’s affairs at any time before or after the meeting. Comments may be submitted to Jennifer Aguinaga at the contact information indicated above. To be considered during the meeting, comments must be received no later than 5:00 p.m. EDT on Wednesday, March 15, 2023, to ensure transmission to the Board prior to the meeting. Comments received after that date and time will be transmitted to the Board but may not be considered during the meeting. Copies of Board meeting minutes will be available within 90 days of the meeting. This Notice is published pursuant to the Federal Advisory Committee Act, as amended (FACA), 5 U.S.C., App., 9(c). It has been determined that the Committee is necessary and in the public interest. The Committee was established pursuant to Commerce’s authority under 15 U.S.C. 1512, established under the FACA, as amended, 5 U.S.C. App., and with the concurrence of the General Services Administration. Jennifer Aguinaga, Designated Federal Officer, United States Travel and Tourism Advisory Board. [FR Doc. 2023–04377 Filed 3–2–23; 8:45 am] BILLING CODE 3510–DR–P DEPARTMENT OF COMMERCE International Trade Administration [A–580–902] Utility Scale Wind Towers From the Republic of Korea: Final Results of Antidumping Duty Administrative Review; 2020–2021 Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The U.S. Department of Commerce (Commerce) determines that utility scale wind towers (wind towers) from the Republic of Korea (Korea) were sold in the United States at less than normal value during the period of review (POR) February 14, 2020, through July 31, 2021. DATES: Applicable March 3, 2023. FOR FURTHER INFORMATION CONTACT: Adam Simons or Macey Mayes, AD/ CVD Operations, Office IX, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue AGENCY: E:\FR\FM\03MRN1.SGM 03MRN1

Agencies

[Federal Register Volume 88, Number 42 (Friday, March 3, 2023)]
[Notices]
[Pages 13425-13428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-04438]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-146]


Certain Freight Rail Couplers and Parts Thereof From the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination and Preliminary Affirmative Critical Circumstances 
Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain freight rail couplers and parts 
thereof (freight rail couplers) From the People's Republic of China 
(China) during the period of investigation January 1, 2021, through 
December 31, 2021.

DATES: Applicable March 3, 2023.

FOR FURTHER INFORMATION CONTACT: Terre Keaton Stefanova or Paul Gill, 
AD/CVD Operations, Office IX, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-1280 or (202) 
482-5673, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). On October 18, 
2022,

[[Page 13426]]

Commerce published the notice of initiation of this investigation.\1\ 
On December 2, 2022, Commerce postponed the preliminary determination 
of this investigation until February 27, 2023.\2\ For a complete 
description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. The Preliminary Decision Memorandum is a 
public document and is on file electronically via Enforcement and 
Compliance's Antidumping and Countervailing Duty Centralized Electronic 
Service System (ACCESS). ACCESS is available to registered users at 
https://access.trade.gov. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \1\ See Certain Freight Rail Couplers and Parts Thereof from the 
People's Republic of China: Initiation of Countervailing Duty 
Investigation, 87 FR 64440 (October 25, 2022) (Initiation Notice).
    \2\ See Certain Freight Rail Couplers and Parts Thereof from the 
People's Republic of China: Postponement of Preliminary 
Determination, 87 FR 74128 (December 2, 2022).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Countervailing Duty Investigation of Certain 
Freight Rail Couplers and Parts Thereof from the People's Republic 
of China,'' dated concurrently with, and hereby adopted by, this 
notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are freight rail 
couplers from China. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ We received 
comments from several parties concerning the scope of the antidumping 
duty (AD) and countervailing duty (CVD) investigations of freight rail 
couplers as it appeared in the Initiation Notice, which are listed in 
the Preliminary Decision Memorandum.\6\ We are currently evaluating the 
scope comments filed by the interested parties and intend to issue our 
preliminary decision regarding the scope of the AD and CVD 
investigations shortly. We will incorporate the scope decisions from 
the AD investigations into the scope of the final CVD determination for 
this investigation, after considering any relevant comments submitted 
in scope case and rebuttal briefs.
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    \4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \5\ See Initiation Notice, 87 FR 64441.
    \6\ See Preliminary Decision Memorandum at 1-22.
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Preliminary Affirmative Determination of Critical Circumstances

    In accordance with section 703(e)(1) of the Act, we preliminarily 
find that critical circumstances exist with respect to imports of 
subject merchandise from Chongqing Tongyao, Qingdao Sanheshan, the non-
responsive companies,\7\ and all other producers and/or exporters. For 
a full discussion of our preliminary critical circumstances 
determination, see the ``Critical Circumstances'' section of the 
Preliminary Decision Memorandum.
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    \7\ The non-responsive companies are: (1) Chongqing Changzheng 
Heavy Industry Co., Ltd.; (2) CRRC Qiqihar Co., Ltd.; (3) NanJing 
Zhongsheng Rolling Stock Components Co. Ltd.; (4) Ningbo Minghui 
Metal Technology Co., Ltd.; (5) Qingdao Lianshan Casting Co., Ltd.; 
(6) Shaanxi Haiduo Railway Technology Development Co., Ltd.; and (7) 
Shanghai Voith Xiagujin Chuang Coupler Technology Co., Ltd.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\8\
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    \8\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied on facts 
available and, because Commerce finds that necessary information was 
missing from the record and because respondents did not act to the best 
of their ability to respond to Commerce's requests for information, 
Commerce drew an adverse inference in selecting from among the facts 
otherwise available.\9\ For further information, see the ``Use of Facts 
Otherwise Available and Adverse Inferences'' section in the Preliminary 
Decision Memorandum.
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    \9\ See sections 776(a) and (b) of the Act.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual 
estimated countervailable subsidy rates established for all exporters 
and producers individually examined are zero, de minimis, or determined 
based entirely on facts otherwise available, Commerce may use ``any 
reasonable method'' to establish the estimated subsidy rate for all 
other producers or exporters. In this investigation, Commerce 
preliminarily determined the individually estimated subsidy rate for 
each of the individually examined respondents based entirely on facts 
available under section 776 of the Act. This is the only rate available 
in this proceeding for deriving the all-others rate. Consequently, 
pursuant to sections 703(d) and 705(c)(5)(A)(ii) of the Act, Commerce 
established the all-others rate by applying the countervailable subsidy 
rate assigned to the mandatory respondents.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
------------------------------------------------------------------------
Chongqing Changzheng Heavy Industry Co., Ltd............          265.99
Chongqing Tongyao Transportation Equipment Co...........          265.99
CRRC Qiqihar Co., Ltd...................................          265.99
NanJing Zhongsheng Rolling Stock Components Co. Ltd.....          265.99
Ningbo Minghui Metal Technology Co., Ltd................          265.99
Qingdao Lianshan Casting Co., Ltd.......................          265.99
Qingdao Sanheshan Precision Casting Co., Ltd............          265.99

[[Page 13427]]

 
Shaanxi Haiduo Railway Technology Development Co., Ltd..          265.99
Shanghai Voith Xiagujin Chuang Coupler Technology Co.,            265.99
 Ltd....................................................
All Others..............................................          265.99
------------------------------------------------------------------------

Suspension of Liquidation

    In accordance with section 703(e)(2)(A) of the Act, because we find 
that critical circumstances exist for Chongqing Tongyao, Qingdao 
Sanheshan, the non-responsive companies, and all other producers and/or 
exporters, Commerce will direct U.S. Customs and Border Protection 
(CBP) to suspend liquidation of entries of subject merchandise as 
described in the scope of the investigation entered, or withdrawn from 
warehouse, for consumption on or after the date 90 days prior to the 
date of publication of this notice in the Federal Register. Further, 
pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a 
cash deposit equal to the rates indicated above.

Disclosure

    Normally, Commerce discloses its calculations and analysis 
performed in connection with the preliminary determination to 
interested parties within five days of its public announcement, or if 
there is no public announcement, within five days of the date of 
publication of this notice, in accordance with 19 CFR 351.224(b). 
However, because Commerce preliminarily applied total AFA in the 
calculation of the benefit for Chongqing Tongyao, Qingdao Sanheshan, 
and the non-responsive companies, and the applied AFA rates are based 
on rates calculated in prior proceedings, there are no calculations to 
disclose.

Verification

    Because the examined respondents in this investigation did not 
provide information Commerce requested and Commerce preliminarily 
determines that each of the examined respondents have been 
uncooperative, it will not conduct verification.

Public Comment

    All interested parties will have the opportunity to submit scope 
case and rebuttal briefs on the preliminary decision regarding the 
scope of the AD and CVD investigations. The deadlines to submit scope 
case and rebuttal briefs will be provided in the preliminary scope 
decision memorandum. For all scope case and rebuttal briefs, parties 
must file identical documents simultaneously on the records of the 
ongoing AD and CVD freight rail couplers investigations. No new factual 
information or business proprietary information may be included in 
either scope case or rebuttal briefs.
    Case briefs or other written comments on non-scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance no 
later than 20 days after the date of publication of the preliminary 
determination. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than seven days after the deadline 
date for case briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) a statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities. Commerce has modified certain of its requirements for 
serving documents containing business proprietary information until 
further notice.\11\
---------------------------------------------------------------------------

    \10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
    \11\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, and a list of the issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, parties will be notified of 
the time and date for the hearing.\12\
---------------------------------------------------------------------------

    \12\ See 19 CFR 351.310(d).
---------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its determination. If 
the final determination is affirmative, the ITC will determine before 
the later of 120 days after the date of this preliminary determination 
or 45 days after the final determination whether imports of freight 
rail couplers from China are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).

    Dated: February 27, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

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 the 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 non-subject parts, whether 
assembled or unassembled, whether mounted or unmounted, or if joined 
with non-subject merchandise, such as other non-subject 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 non-subject 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

[[Page 13428]]

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 non-subject 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 the investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Injury Test
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Critical Circumstances
IX. Recommendation

[FR Doc. 2023-04438 Filed 3-2-23; 8:45 am]
BILLING CODE 3510-DS-P
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