Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, In Part, 32184-32187 [2023-10779]
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ddrumheller on DSK120RN23PROD with NOTICES1
32184
Federal Register / Vol. 88, No. 97 / Friday, May 19, 2023 / Notices
directly or indirectly, participate in any
way in any transaction involving any
commodity, software or technology
(hereinafter collectively referred to as
‘‘item’’) exported or to be exported from
the United States that is subject to the
EAR, or in any other activity subject to
the EAR including, but not limited to:
A. Applying for, obtaining, or using
any license (except directly related to
safety of flight), license exception, or
export control document;
B. Carrying on negotiations
concerning, or ordering, buying,
receiving, using, selling, delivering,
storing, disposing of, forwarding,
transporting, financing, or otherwise
servicing in any way, any transaction
involving any item exported or to be
exported from the United States that is
subject to the EAR except directly
related to safety of flight and authorized
by BIS pursuant to section 764.3(a)(2) of
the Regulations, or engaging in any
other activity subject to the EAR except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations; or
C. Benefitting in any way from any
transaction involving any item exported
or to be exported from the United States
that is subject to the EAR, or from any
other activity subject to the EAR except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations.
Fourth, that no person may, directly
or indirectly, do any of the following:
A. Export, reexport, or transfer (incountry) to or on behalf of Smartavia
any item subject to the EAR except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations;
B. Take any action that facilitates the
acquisition or attempted acquisition by
Smartavia of the ownership, possession,
or control of any item subject to the EAR
that has been or will be exported from
the United States, including financing
or other support activities related to a
transaction whereby Smartavia acquires
or attempts to acquire such ownership,
possession or control except directly
related to safety of flight and authorized
by BIS pursuant to section 764.3(a)(2) of
the Regulations;
C. Take any action to acquire from or
to facilitate the acquisition or attempted
acquisition from Smartavia of any item
subject to the EAR that has been
exported from the United States except
directly related to safety of flight and
authorized by BIS pursuant to section
764.3(a)(2) of the Regulations;
D. Obtain from Smartavia in the
United States any item subject to the
EAR with knowledge or reason to know
that the item will be, or is intended to
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be, exported from the United States
except directly related to safety of flight
and authorized by BIS pursuant to
section 764.3(a)(2) of the Regulations; or
E. Engage in any transaction to service
any item subject to the EAR that has
been or will be exported from the
United States and which is owned,
possessed or controlled by Smartavia, or
service any item, of whatever origin,
that is owned, possessed or controlled
by Smartavia if such service involves
the use of any item subject to the EAR
that has been or will be exported from
the United States except directly related
to safety of flight and authorized by BIS
pursuant to section 764.3(a)(2) of the
Regulations. For purposes of this
paragraph, servicing means installation,
maintenance, repair, modification, or
testing.
Fifth, that, after notice and
opportunity for comment as provided in
section 766.23 of the EAR, any other
person, firm, corporation, or business
organization related to Oleg Sergeyevich
Patsulya, Vasilii Sergeyevich Besedin,
MIC P&I, LLC, Intermodal Maldives, or
JSC Smartavia Airlines by affiliation,
ownership, control, or position of
responsibility in the conduct of trade or
related services may also be made
subject to the provisions of this Order.
In accordance with the provisions of
section 766.24(e) of the EAR, Oleg
Sergeyevich Patsulya, Vasilii
Sergeyevich Besedin, MIC P&I, LLC,
Intermodal Maldives, and JSC Smartavia
Airlines may, at any time, appeal this
Order by filing a full written statement
in support of the appeal with the Office
of the Administrative Law Judge, U.S.
Coast Guard ALJ Docketing Center, 40
South Gay Street, Baltimore, Maryland
21202–4022.
In accordance with the provisions of
section 766.24(d) of the EAR, BIS may
seek renewal of this Order by filing a
written request not later than 20 days
before the expiration date. Respondents
Oleg Sergeyevich Patsulya, Vasilii
Sergeyevich Besedin, MIC P&I, LLC,
Intermodal Maldives, and JSC Smartavia
Airlines may oppose a request to renew
this Order by filing a written submission
with the Assistant Secretary for Export
Enforcement, which must be received
not later than seven days before the
expiration date of the Order.
A copy of this Order shall be served
on each denied person and shall be
published in the Federal Register.
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This Order is effective immediately
and shall remain in effect for 180 days.
Matthew S. Axelrod,
Assistant Secretary of Commerce for Export
Enforcement.
[FR Doc. 2023–10750 Filed 5–18–23; 8:45 am]
BILLING CODE 3510–DT–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–146]
Certain Freight Rail Couplers and Parts
Thereof From the People’s Republic of
China: Final Affirmative Countervailing
Duty Determination and Final
Affirmative Critical Circumstances
Determination, In Part
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of
Commerce (Commerce) 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 May 19, 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
On March 3, 2023, Commerce
published the Preliminary
Determination of this investigation in
the Federal Register.1 We invited
interested parties to comment on the
Preliminary Determination. In March
2023, we received comments from
Strato Inc. (Strato) and Wabtec
Corporation (Wabtec), U.S. importers of
freight rail couplers from China.2 On
1 See 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, 88 FR 13425 (March
3, 2023) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum
(PDM).
2 See Strato’s Letter, ‘‘Strato Administrative Case
Brief,’’ date March 23, 2023; and Wabtec’s Letter,
‘‘Case Brief for Final Negative Countervailing Duty
Determination and Final Negative Critical
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April 6, 2023, we received rebuttal
comments from the Coalition of Freight
Coupler Producers (the petitioner).3 For
a complete description of the events that
followed the Preliminary Determination,
see the Issues and Decision
Memorandum.4 The Issues and Decision
Memorandum is a public document and
is on file electronically via Enforcement
and Compliance’s Antidumping and
Countervailing Duty Centralized
Electronic Service System (ACCESS).
ACCESS is available to registered users
at https://access.trade.gov. In addition, a
complete version of the Issues and
Decision Memorandum can be accessed
directly at https://access.trade.gov/
public/FRNoticesListLayout.aspx.
Period of Investigation
The period of investigation is January
1, 2021, through December 31, 2021.
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
During the course of this investigation
and the concurrent less-than-fair value
investigations of freight rail couplers
from China and Mexico, Commerce
received scope comments from
interested parties. Commerce issued a
Preliminary Scope Memorandum to
address these comments and set aside a
period of time for parties to address
scope issues in scope case and rebuttal
briefs.5 We received comments from
interested parties on the Preliminary
Scope Memorandum, which we address
in the Final Scope Memorandum.6 As a
result of these comments, we made
certain changes to the scope of these
investigations from that published in
the Preliminary Determination. See
Appendix I.
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Final Affirmative Determination of
Critical Circumstances, In Part
In the Preliminary Determination,
Commerce preliminarily determined,
pursuant to section 703(e)(c)(1) of the
Tariff Act of 1930, as amended (the Act),
Circumstances Determination,’’ dated March 23,
2023.
3 See Petitioner’s Letter, ‘‘Petitioner’s Rebuttal
Brief,’’ dated April 6, 2023.
4 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final 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 (Issues and Decision
Memorandum).
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that critical circumstances exist for
Chongqing Tongyao Transportation
Equipment Co. (Chongqing Tongyao),
Qingdao Sanheshan Precision Casting
Co., Ltd. (Qingdao Sanheshan), the nonresponsive companies,7 and all other
producers and/or exporters.8 For this
final determination, we continue to find
that critical circumstances exist for
Chongqing Tongyao, Qingdao
Sanheshan, and the non-responsive
companies, in accordance with section
705(a)(2) of the Act. However, for all
other producers and/or exporters, we
now find that we are unable to make a
determination of whether there were
massive imports of the subject
merchandise over a relatively short
period. Therefore, we do not find that
critical circumstances exist with respect
to all other producers and/or exporters.
For the analysis of critical
circumstances for the final
determination, see Issues and Decision
Memorandum at Comment 1.
Analysis of Comments Received
The issues raised in comments that
were submitted by parties in this
investigation are addressed in the Issues
and Decision Memorandum. A list of
the issues addressed in the Issues and
Decision Memorandum is attached to
this notice at Appendix II.
Changes Since the Preliminary
Determination
Based on our analysis of the
comments received from interested
parties, we made certain changes to our
preliminary critical circumstances
determination, as noted above. For a
discussion of these changes, see the
Issues and Decision Memorandum.
However, as no interested party
submitted comments on the subsidy
rates selected in the Preliminary
Determination, we made no changes to
the subsidy rates assigned to Chongqing
Tongyao, Qingdao Sanheshan, and the
non-responsive companies.
Analysis of Subsidy Programs—
Adverse Facts Available (AFA)
For the purposes of this final
determination, Commerce relied solely
5 See Memorandum, ‘‘Preliminary Scope Decision
Memorandum,’’ dated March 28, 2023 (Preliminary
Scope Memorandum).
6 See Memorandum, ‘‘Final Scope Decision
Memorandum,’’ dated concurrently with this notice
(Final Scope Memorandum).
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
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on facts available pursuant to section
776 of the Act, because neither the
Government of China nor the mandatory
respondents, Chongqing Tongyao and
Qingdao Sanheshan, participated in this
investigation. Furthermore, as stated in
our Preliminary Determination, the nonresponsive companies also withheld
necessary information that Commerce
requested from them, failed to provide
information within the deadlines
established, and significantly impeded
this proceeding by failing to respond to
Commerce’s quantity and value
questionnaire.9 Therefore, because the
mandatory respondents, the nonresponsive companies, and the
Government of China did not cooperate
to the best of their abilities in
responding to our requests for
information in this investigation, we
drew adverse inferences in selecting
from among the facts otherwise
available, in accordance with sections
776(a)–(b) of the Act. We received no
comments from interested parties
regarding our application of AFA to
determine the countervailability of, and
rates for, the subsidy programs at issue
in this investigation. Consistent with the
Preliminary Determination, we continue
to apply AFA to determine the
appropriate subsidy rates for this
investigation. A detailed discussion of
our application of AFA is provided in
the Preliminary Determination.10
All-Others Rate
As discussed in the Preliminary
Determination, Commerce based the
selection of the all-others rate on the
countervailable subsidy rate established
for the mandatory respondents, in
accordance with 703(d) of the Act.11
Consistent with section 705(c)(5)(A)(ii)
of the Act, we made no changes to the
selection of the all-others rate for the
final determination.
Final Determination
Commerce determines that the
following estimated countervailable
subsidy rates exist:
Lianshan Casting Co., Ltd.; (6) Shaanxi Haiduo
Railway Technology Development Co., Ltd.; and (7)
Shanghai Voith Xiagujin Chuang Coupler
Technology Co., Ltd.
8 See Preliminary Determination, 88 FR at 13426.
9 See Preliminary Determination PDM at 7.
10 See Preliminary Determination PDM at 4–14.
11 See Preliminary Determination, 88 FR at 13426.
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Federal Register / Vol. 88, No. 97 / Friday, May 19, 2023 / Notices
Subsidy Rate
(percent
ad valorem)
Company
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 .................................................................................................................................
Shaanxi Haiduo Railway Technology Development Co., Ltd .............................................................................................................
Shanghai Voith Xiagujin Chuang Coupler Technology Co., Ltd .........................................................................................................
All Others .............................................................................................................................................................................................
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Continuation of Suspension of
Liquidation
In accordance with section
705(c)(4)(A) of the Act, Commerce
intends to instruct U.S. Customs and
Border Protection (CBP) to continue to
suspend liquidation of entries of subject
merchandise, as described in Appendix
I of this notice, for Chongqing Tongyao,
Qingdao Sanheshan, and the nonresponsive companies, entered, or
withdrawn from warehouse, for
consumption on or after December 3,
2022, which is 90 days prior to the date
of publication of the Preliminary
Determination in the Federal Register.
However, for all other producers and/or
exporters, Commerce intends to instruct
CBP to continue to suspend liquidation
of entries of subject merchandise, as
described in Appendix I of this notice,
entered, or withdrawn from warehouse,
for consumption on or after March 3,
2023, which is the date of publication
of the Preliminary Determination in the
Federal Register, at the all-others rate
indicated above. These suspension of
liquidation instructions will remain in
effect until further notice.
Because we now find that critical
circumstances do not exist for all other
producers and/or exporters, we will
direct CBP to terminate the retroactive
suspension of liquidation ordered at the
Preliminary Determination and release
any cash deposits that were required
prior to March 3, 2022, the date of
publication of the Preliminary
Determination in the Federal Register,
consistent with section 705(c)(3) of the
Act.
If the U.S. International Trade
Commission (ITC) issues a final
affirmative injury determination, we
intend to issue a countervailing duty
order and continue to require a case
deposit of estimated countervailing
duties for such entries of subject
merchandise in the amounts indicated
above, in accordance with 706(a) of the
Act. If the ITC issues a final affirmative
injury determination but a final negative
determination of critical circumstances,
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265.99
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we will instruct CBP to liquidate entries
prior to the date of publication of the
Preliminary Determination without
regard to duties, and all estimated
duties deposited or securities posted as
a result of the suspension of liquidation
will be refunded or canceled. If the ITC
determines that material injury, or
threat of material injury, does not exist,
this proceeding will be terminated, and
all estimated duties deposited as a result
of the suspension of liquidation will be
refunded or canceled.
notice will serve as the only reminder
to parties subject to an APO of their
responsibility concerning the
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3). Timely
written notification of the return/
destruction of APO materials or
conversion to judicial protective order is
hereby requested. Failure to comply
with the regulations and terms of an
APO is a violation which is subject to
sanction.
ITC Notification
In accordance with section 705(d) of
the Act, we intend to notify the ITC of
our final affirmative determination that
countervailable subsidies are being
provided to producers and exporters of
freight rail couplers from China.
Because the final determination in this
proceeding is affirmative, in accordance
with section 705(b) of the Act, the ITC
will make its final determination as to
whether the domestic industry in the
United States is materially injured, or
threatened with material injury, by
reason of imports of freight rail couplers
from China no later than 45 days after
our final determination.
If the ITC determines that material
injury or threat of material injury does
not exist, this proceeding will be
terminated and all cash deposits will be
refunded or canceled, as Commerce
determines to be appropriate. If the ITC
determines that such injury does exist,
Commerce intends to issue a
countervailing duty order directing CBP
to assess, upon further instruction by
Commerce, countervailing duties on all
imports of the subject merchandise that
are entered, or withdrawn from
warehouse, for consumption on or after
the effective date of the suspension of
liquidation, as discussed above in the
‘‘Continuation of Suspension of
Liquidation’’ section.
Notification to Interested Parties
This determination is issued and
published pursuant to sections 705(d)
and 777(i) of the Act, and 19 CFR
351.205(c).
Notification Regarding Administrative
Protective Order (APO)
In the event that the ITC issues a final
negative injury determination, this
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Dated: May 15, 2023.
Lisa W. Wang,
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 nonsubject
merchandise, such as other nonsubject parts
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or a completed railcar. Finishing includes,
but is not limited to, arc washing, welding,
grinding, shot blasting, heat treatment,
machining, and assembly of various parts.
When a subject coupler or subject parts are
mounted on or to other nonsubject
merchandise, such as a railcar, only the
coupler or subject parts are covered by the
scope.
The finished products covered by the
scope of this investigation meet or exceed the
AAR specifications of M–211, ‘‘Foundry and
Product Approval Requirements for the
Manufacture of Couplers, Coupler Yokes,
Knuckles, Follower Blocks, and Coupler
Parts’’ and/or AAR M–215 ‘‘Coupling
Systems,’’ or other equivalent domestic or
international standards (including any
revisions to the standard(s)).
The country of origin for subject couplers
and parts thereof, whether fully assembled,
unfinished or finished, or attached to a
railcar, is the country where the subject
coupler parts were cast or forged. Subject
merchandise includes coupler parts as
defined above that have been further
processed or further assembled, including
those coupler parts attached to a railcar in
third countries. Further processing includes,
but is not limited to, arc washing, welding,
grinding, shot blasting, heat treatment,
painting, coating, priming, machining, and
assembly of various parts. The inclusion,
attachment, joining, or assembly of
nonsubject parts with subject parts or
couplers either in the country of manufacture
of the in-scope product or in a third country
does not remove the subject parts or couplers
from the scope.
The couplers that are the subject of this
investigation are currently classifiable in the
Harmonized Tariff Schedule of the United
States (HTSUS) statistical reporting number
8607.30.1000. Unfinished subject
merchandise may also enter under HTSUS
statistical reporting number 7326.90.8688.
Subject merchandise attached to finished
railcars may also enter under HTSUS
statistical reporting numbers 8606.10.0000,
8606.30.0000, 8606.91.0000, 8606.92.0000,
8606.99.0130, 8606.99.0160, or under
subheading 9803.00.50. Subject merchandise
may also be imported under HTSUS
statistical reporting number 7325.99.5000.
These HTSUS subheadings are provided for
convenience and customs purposes only; the
written description of the scope of this
investigation is dispositive.
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Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. Final Critical Circumstances
Determination
IV. Analysis of Comments
Comment 1: Whether Commerce Should
Reverse its Preliminary Affirmative
Critical Circumstances Determinations
Comment 2: Whether Commerce Should
Terminate the Investigation
V. Recommendation
[FR Doc. 2023–10779 Filed 5–18–23; 8:45 am]
BILLING CODE 3510–DS–P
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DEPARTMENT OF COMMERCE
International Trade Administration
[A–533–843, A–570–901]
Certain Lined Paper Products From
India and the People’s Republic of
China: Final Results of Expedited Third
Sunset Reviews of the Antidumping
Duty Orders
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: As a result of these expedited
sunset reviews, the U.S. Department of
Commerce (Commerce) finds that
revocation of the antidumping duty
(AD) orders on certain lined paper
products from India and the People’s
Republic of China (China) would be
likely to lead to continuation or
recurrence of dumping at the levels
indicated in the ‘‘Final Results of
Review’’ section of this notice.
DATES: Applicable May 19, 2023.
FOR FURTHER INFORMATION CONTACT:
Samuel Brummitt, AD/CVD Operations,
Office III, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–7851.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On February 1, 2023, Commerce
published the notice of initiation of the
sunset reviews of the Orders on certain
lined paper products from China and
India,1 pursuant to section 751(c) of the
Tariff Act of 1930, as amended (the
Act).2 On February 15, 2023, Commerce
received a notice of intent to participate
from the domestic interested party for
both of the Orders in accordance with
19 CFR 351.218(d)(1)(i).3 The domestic
interested party claimed domestic
1 See Notice of Amended Final Determination of
Sales at Less Than Fair Value: Certain Lined Paper
Products from the People’s Republic of China;
Notice of Antidumping Duty Orders: Certain Lined
Paper Products from India, Indonesia and the
People’s Republic of China; and Notice of
Countervailing Duty Orders: Certain Lined Paper
Products from India and Indonesia, 71 FR 56949
(September 28, 2006) (Orders).
2 See Initiation of Five-Year (Sunset) Reviews, 88
FR 6700 (February 1, 2023).
3 The domestic interested party is the Association
of American School Paper Suppliers (AASPS).
AASPS consists of the following members: ACCO
Brands USA LLC, Norcom Inc., and Top Flight Inc.
The members of AASPS are domestic producers of
lined paper products. See Domestic Interested
Party’s Letters, ‘‘Certain Lined Paper Products from
The People’s Republic of China: Notice of Intent to
Participate in Sunset Review,’’ dated February 15,
2023 (NOI China); and ‘‘Certain Lined Paper
Products from India: Notice of Intent to Participate
in Sunset Review,’’ dated February 15, 2023 (NOI
India).
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32187
interested party status under section
771(9)(C) of the Act, as each member of
the association is a manufacturer of the
domestic like product in the United
States.4 On March 2, 2023, the domestic
interested party filed timely substantive
responses within the 30-day deadline
specified in 19 CFR 351.218(d)(3)(i).5
Commerce did not receive a substantive
response from any other interested
parties with respect to the Orders
covered by these sunset reviews, nor
was a hearing requested. On March 23,
2023, Commerce notified the U.S.
International Trade Commission that it
did not receive an adequate substantive
response from respondent interested
parties.6 As a result, pursuant to section
751(c)(3)(B) of the Act and 19 CFR
351.218(e)(1)(ii)(C)(2), Commerce is
conducting expedited (120-day) sunset
reviews of these Orders.
Scope of the Orders
The product covered by these Orders
is certain lined paper products from
China and India. For a full description
of the scope, see the Issues and Decision
Memorandum.7
Analysis of Comments Received
All issues raised in these sunset
reviews are addressed in the Issues and
Decision Memorandum, including the
likelihood of continuation or recurrence
of dumping and the magnitude of the
margins of dumping likely to prevail if
these Orders were revoked. A list of
topics discussed in the Issues and
Decision Memorandum is included as
an appendix to this notice. The Issues
and Decision Memorandum is a public
document and is on file electronically
via Enforcement and Compliance’s
Antidumping and Countervailing Duty
Centralized Electronic Service System
(ACCESS). ACCESS is available to
registered users at https://
access.trade.gov. A complete version of
the Issues and Decision Memorandum
can be accessed directly at https://
access.trade.gov/public/FRNotices/
ListLayout.aspx. A list of the issues
4 See
NOI China at 2; see also NOI India at 2.
Domestic Interested Party’s Letters, ‘‘Certain
Lined Paper Products from China: Substantive
Response to Notice of Initiation,’’ dated March 2,
2023 (Substantive Response China); and ‘‘Certain
Lined Paper Products from India: Substantive
Response to Notice of Initiation,’’ dated March 2,
2023 (Substantive Response India).
6 See Commerce’s Letter, ‘‘Sunset Reviews
Initiated on February 1, 2023,’’ dated March 23,
2023.
7 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Results of the Third
Expedited Sunset Reviews: Certain Lined Paper
Products from India and the People’s Republic of
China,’’ dated concurrently with, and hereby
adopted by, this notice (Issues and Decision
Memorandum).
5 See
E:\FR\FM\19MYN1.SGM
19MYN1
]]>Agencies
[Federal Register Volume 88, Number 97 (Friday, May 19, 2023)]
[Notices]
[Pages 32184-32187]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-10779]
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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: Final Affirmative Countervailing Duty Determination
and Final Affirmative Critical Circumstances Determination, In Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) 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 May 19, 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
On March 3, 2023, Commerce published the Preliminary Determination
of this investigation in the Federal Register.\1\ We invited interested
parties to comment on the Preliminary Determination. In March 2023, we
received comments from Strato Inc. (Strato) and Wabtec Corporation
(Wabtec), U.S. importers of freight rail couplers from China.\2\ On
[[Page 32185]]
April 6, 2023, we received rebuttal comments from the Coalition of
Freight Coupler Producers (the petitioner).\3\ For a complete
description of the events that followed the Preliminary Determination,
see the Issues and Decision Memorandum.\4\ The Issues and Decision
Memorandum is a public document and is on file electronically via
Enforcement and Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (ACCESS). ACCESS is available to
registered users at https://access.trade.gov. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
at https://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: Preliminary Affirmative Countervailing
Duty Determination and Preliminary Affirmative Critical
Circumstances Determination, 88 FR 13425 (March 3, 2023)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
\2\ See Strato's Letter, ``Strato Administrative Case Brief,''
date March 23, 2023; and Wabtec's Letter, ``Case Brief for Final
Negative Countervailing Duty Determination and Final Negative
Critical Circumstances Determination,'' dated March 23, 2023.
\3\ See Petitioner's Letter, ``Petitioner's Rebuttal Brief,''
dated April 6, 2023.
\4\ See Memorandum, ``Issues and Decision Memorandum for the
Final 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 (Issues and Decision Memorandum).
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Period of Investigation
The period of investigation is January 1, 2021, through December
31, 2021.
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
During the course of this investigation and the concurrent less-
than-fair value investigations of freight rail couplers from China and
Mexico, Commerce received scope comments from interested parties.
Commerce issued a Preliminary Scope Memorandum to address these
comments and set aside a period of time for parties to address scope
issues in scope case and rebuttal briefs.\5\ We received comments from
interested parties on the Preliminary Scope Memorandum, which we
address in the Final Scope Memorandum.\6\ As a result of these
comments, we made certain changes to the scope of these investigations
from that published in the Preliminary Determination. See Appendix I.
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\5\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated March 28, 2023 (Preliminary Scope Memorandum).
\6\ See Memorandum, ``Final Scope Decision Memorandum,'' dated
concurrently with this notice (Final Scope Memorandum).
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Final Affirmative Determination of Critical Circumstances, In Part
In the Preliminary Determination, Commerce preliminarily
determined, pursuant to section 703(e)(c)(1) of the Tariff Act of 1930,
as amended (the Act), that critical circumstances exist for Chongqing
Tongyao Transportation Equipment Co. (Chongqing Tongyao), Qingdao
Sanheshan Precision Casting Co., Ltd. (Qingdao Sanheshan), the non-
responsive companies,\7\ and all other producers and/or exporters.\8\
For this final determination, we continue to find that critical
circumstances exist for Chongqing Tongyao, Qingdao Sanheshan, and the
non-responsive companies, in accordance with section 705(a)(2) of the
Act. However, for all other producers and/or exporters, we now find
that we are unable to make a determination of whether there were
massive imports of the subject merchandise over a relatively short
period. Therefore, we do not find that critical circumstances exist
with respect to all other producers and/or exporters. For the analysis
of critical circumstances for the final determination, see Issues and
Decision Memorandum at Comment 1.
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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.
\8\ See Preliminary Determination, 88 FR at 13426.
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Analysis of Comments Received
The issues raised in comments that were submitted by parties in
this investigation are addressed in the Issues and Decision Memorandum.
A list of the issues addressed in the Issues and Decision Memorandum is
attached to this notice at Appendix II.
Changes Since the Preliminary Determination
Based on our analysis of the comments received from interested
parties, we made certain changes to our preliminary critical
circumstances determination, as noted above. For a discussion of these
changes, see the Issues and Decision Memorandum. However, as no
interested party submitted comments on the subsidy rates selected in
the Preliminary Determination, we made no changes to the subsidy rates
assigned to Chongqing Tongyao, Qingdao Sanheshan, and the non-
responsive companies.
Analysis of Subsidy Programs--Adverse Facts Available (AFA)
For the purposes of this final determination, Commerce relied
solely on facts available pursuant to section 776 of the Act, because
neither the Government of China nor the mandatory respondents,
Chongqing Tongyao and Qingdao Sanheshan, participated in this
investigation. Furthermore, as stated in our Preliminary Determination,
the non-responsive companies also withheld necessary information that
Commerce requested from them, failed to provide information within the
deadlines established, and significantly impeded this proceeding by
failing to respond to Commerce's quantity and value questionnaire.\9\
Therefore, because the mandatory respondents, the non-responsive
companies, and the Government of China did not cooperate to the best of
their abilities in responding to our requests for information in this
investigation, we drew adverse inferences in selecting from among the
facts otherwise available, in accordance with sections 776(a)-(b) of
the Act. We received no comments from interested parties regarding our
application of AFA to determine the countervailability of, and rates
for, the subsidy programs at issue in this investigation. Consistent
with the Preliminary Determination, we continue to apply AFA to
determine the appropriate subsidy rates for this investigation. A
detailed discussion of our application of AFA is provided in the
Preliminary Determination.\10\
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\9\ See Preliminary Determination PDM at 7.
\10\ See Preliminary Determination PDM at 4-14.
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All-Others Rate
As discussed in the Preliminary Determination, Commerce based the
selection of the all-others rate on the countervailable subsidy rate
established for the mandatory respondents, in accordance with 703(d) of
the Act.\11\ Consistent with section 705(c)(5)(A)(ii) of the Act, we
made no changes to the selection of the all-others rate for the final
determination.
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\11\ See Preliminary Determination, 88 FR at 13426.
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Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
[[Page 32186]]
------------------------------------------------------------------------
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
Shaanxi Haiduo Railway Technology Development Co., Ltd.. 265.99
Shanghai Voith Xiagujin Chuang Coupler Technology Co., 265.99
Ltd....................................................
All Others.............................................. 265.99
------------------------------------------------------------------------
Continuation of Suspension of Liquidation
In accordance with section 705(c)(4)(A) of the Act, Commerce
intends to instruct U.S. Customs and Border Protection (CBP) to
continue to suspend liquidation of entries of subject merchandise, as
described in Appendix I of this notice, for Chongqing Tongyao, Qingdao
Sanheshan, and the non-responsive companies, entered, or withdrawn from
warehouse, for consumption on or after December 3, 2022, which is 90
days prior to the date of publication of the Preliminary Determination
in the Federal Register. However, for all other producers and/or
exporters, Commerce intends to instruct CBP to continue to suspend
liquidation of entries of subject merchandise, as described in Appendix
I of this notice, entered, or withdrawn from warehouse, for consumption
on or after March 3, 2023, which is the date of publication of the
Preliminary Determination in the Federal Register, at the all-others
rate indicated above. These suspension of liquidation instructions will
remain in effect until further notice.
Because we now find that critical circumstances do not exist for
all other producers and/or exporters, we will direct CBP to terminate
the retroactive suspension of liquidation ordered at the Preliminary
Determination and release any cash deposits that were required prior to
March 3, 2022, the date of publication of the Preliminary Determination
in the Federal Register, consistent with section 705(c)(3) of the Act.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we intend to issue a countervailing
duty order and continue to require a case deposit of estimated
countervailing duties for such entries of subject merchandise in the
amounts indicated above, in accordance with 706(a) of the Act. If the
ITC issues a final affirmative injury determination but a final
negative determination of critical circumstances, we will instruct CBP
to liquidate entries prior to the date of publication of the
Preliminary Determination without regard to duties, and all estimated
duties deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled. If the ITC determines that
material injury, or threat of material injury, does not exist, this
proceeding will be terminated, and all estimated duties deposited as a
result of the suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we intend to notify
the ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of freight rail
couplers from China. Because the final determination in this proceeding
is affirmative, in accordance with section 705(b) of the Act, the ITC
will make its final determination as to whether the domestic industry
in the United States is materially injured, or threatened with material
injury, by reason of imports of freight rail couplers from China no
later than 45 days after our final determination.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated and all cash
deposits will be refunded or canceled, as Commerce determines to be
appropriate. If the ITC determines that such injury does exist,
Commerce intends to issue a countervailing duty order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise that are entered, or withdrawn
from warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Order (APO)
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: May 15, 2023.
Lisa W. Wang,
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 nonsubject merchandise, such as other nonsubject parts
[[Page 32187]]
or a completed railcar. Finishing includes, but is not limited to,
arc washing, welding, grinding, shot blasting, heat treatment,
machining, and assembly of various parts. When a subject coupler or
subject parts are mounted on or to other nonsubject merchandise,
such as a railcar, only the coupler or subject parts are covered by
the scope.
The finished products covered by the scope of this investigation
meet or exceed the AAR specifications of M-211, ``Foundry and
Product Approval Requirements for the Manufacture of Couplers,
Coupler Yokes, Knuckles, Follower Blocks, and Coupler Parts'' and/or
AAR M-215 ``Coupling Systems,'' or other equivalent domestic or
international standards (including any revisions to the
standard(s)).
The country of origin for subject couplers and parts thereof,
whether fully assembled, unfinished or finished, or attached to a
railcar, is the country where the subject coupler parts were cast or
forged. Subject merchandise includes coupler parts as defined above
that have been further processed or further assembled, including
those coupler parts attached to a railcar in third countries.
Further processing includes, but is not limited to, arc washing,
welding, grinding, shot blasting, heat treatment, painting, coating,
priming, machining, and assembly of various parts. The inclusion,
attachment, joining, or assembly of nonsubject parts with subject
parts or couplers either in the country of manufacture of the in-
scope product or in a third country does not remove the subject
parts or couplers from the scope.
The couplers that are the subject of this investigation are
currently classifiable in the Harmonized Tariff Schedule of the
United States (HTSUS) statistical reporting number 8607.30.1000.
Unfinished subject merchandise may also enter under HTSUS
statistical reporting number 7326.90.8688. Subject merchandise
attached to finished railcars may also enter under HTSUS statistical
reporting numbers 8606.10.0000, 8606.30.0000, 8606.91.0000,
8606.92.0000, 8606.99.0130, 8606.99.0160, or under subheading
9803.00.50. Subject merchandise may also be imported under HTSUS
statistical reporting number 7325.99.5000. These HTSUS subheadings
are provided for convenience and customs purposes only; the written
description of the scope of this investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Final Critical Circumstances Determination
IV. Analysis of Comments
Comment 1: Whether Commerce Should Reverse its Preliminary
Affirmative Critical Circumstances Determinations
Comment 2: Whether Commerce Should Terminate the Investigation
V. Recommendation
[FR Doc. 2023-10779 Filed 5-18-23; 8:45 am]
BILLING CODE 3510-DS-P
