Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China: Countervailing Duty Order, 45135-45138 [2023-14891]

Download as PDF Federal Register / Vol. 88, No. 134 / Friday, July 14, 2023 / Notices lotter on DSK11XQN23PROD with NOTICES1 entries associated with the U.S. sales covered by this review.9 If Stalkanat’s weighted-average dumping margin is not zero or de minimis (i.e., less than 0.5 percent) in the final results of this review, we will calculate importerspecific assessment rates based on the ratio of the total amount of dumping calculated for the importer’s examined sales to the total entered value of those same sales in accordance with 19 CFR 351.212(b)(1). Where an importer-specific ad valorem assessment rate is not zero or de minimis, we will instruct CBP to collect the appropriate duties at the time of liquidation. Where either Stalkanat’s ad valorem weighted-average dumping margin is zero or de minimis, or an importer-specific ad valorem assessment rate is zero or de minimis,10 we will instruct CBP to liquidate the appropriate entries without regard to antidumping duties. If Commerce calculates margins above de minimis in the final results of this review, we intend to instruct CBP to take into account the ‘‘provisional measures deposit cap,’’ in accordance with 19 CFR 351.212(d). In accordance with Commerce’s ‘‘automatic assessment’’ practice, for entries of subject merchandise during the POR, produced by Stalkanat, for which it did not know that the merchandise it sold was destined for the United States, we will instruct CBP to liquidate those entries at the all-others rate if there is no rate for the intermediate company(ies) involved in the transaction.11 Commerce intends 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). The final results of this review shall be the basis for the assessment of antidumping duties on entries of merchandise associated with the U.S. sales covered by the final results of this review and for future deposits of estimated duties, where applicable.12 9 See 19 CFR 351.212(b). 19 CFR 351.106(c)(2). 11 For a full discussion of this practice, see Antidumping and Countervailing Duty Proceedings: Assessment of Antidumping Duties, 68 FR 23954 (May 6, 2003). 12 See section 751(a)(2)(C) of the Act. Cash Deposit Requirements The following cash deposit requirements will be in effect for all shipments of subject merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of the notice of the final results of this administrative review in the Federal Register, as provided for by section 751(a)(2)(C) of the Act: (1) the cash deposit rate for Stalkanat will be equal to the weighted-average dumping margin established in the final results of this review, except if the rate is less than 0.50 percent, and, therefore, de minimis within the meaning of 19 CFR 351.106(c)(1), in which case the cash deposit rate will be zero; (2) for previously reviewed or investigated companies not participating in this review, the cash deposit rate will continue to be the company-specific rate published for the most recentlycompleted segment of this proceeding in which the company was reviewed; (3) if the exporter is not a firm covered in this review or a previous segment of this proceeding, but the producer is, then the cash deposit rate will be the rate established in the most recently completed segment for the producer of the subject merchandise; and (4) the cash deposit rate for all other producers or exporters will continue to be 19.30 percent, the all-others rate established in the less-than-fair-value investigation.13 These deposit requirements, when imposed, shall remain in effect until further notice. Notification to Importers This notice serves as a preliminary reminder to importers of their responsibility under 19 CFR 351.402(f) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in Commerce’s presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties. Notification to Interested Parties We are issuing and publishing these preliminary results of review in accordance with sections 751(a)(1) and 777(i)(l) of the Act and 19 CFR 351.221(b)(4). 10 See VerDate Sep<11>2014 17:54 Jul 13, 2023 Jkt 259001 Prestressed Concrete Steel Wire Strand from Ukraine: Final Affirmative Determination of Sales at Less Than Fair Value, and Final Negative Determination of Critical Circumstances, 86 FR 18498 (April 9, 2021). PO 00000 13 See Frm 00008 Fmt 4703 Sfmt 4703 45135 Dated: June 30, 2023. Lisa W. Wang, 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. Successor-in-Interest Analysis V. Bona Fide Sales Analysis VI. Discussion of the Methodology VII. Currency Conversion VIII. Recommendation [FR Doc. 2023–14984 Filed 7–13–23; 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: Countervailing Duty Order Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: Based on affirmative final determinations by the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC), Commerce is issuing a countervailing duty (CVD) order on certain freight rail couplers and parts thereof (freight rail couplers) from the People’s Republic of China (China). DATES: Applicable July 14, 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 In accordance with section 705(d) of the Tariff Act of 1930, as amended (the Act), on May 19, 2023, Commerce published its affirmative final determination in the CVD investigation of freight rail couplers from China.1 On July 3, 2023, the ITC notified Commerce of its final affirmative determination that an industry in the United States is 1 See 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, 88 FR 32184 (May 19, 2023) (Final Determination). E:\FR\FM\14JYN1.SGM 14JYN1 45136 Federal Register / Vol. 88, No. 134 / Friday, July 14, 2023 / Notices materially injured by reason of subsidized imports of freight rail couplers from China, within the meaning of section 705(b)(1)(A)(i) of the Act.2 Scope of the Order The products covered by this order are freight rail couplers from China. For a complete description of the scope of the order, see the appendix to this notice. Countervailing Duty Order On July 3, 2023, in accordance with section 705(d) of the Act, the ITC notified Commerce of its final determination that an industry in the United States is materially injured within the meaning of section 705(b)(1)(A)(i) of the Act by reason of imports of freight rail couplers from China.3 Therefore, Commerce is issuing this CVD order in accordance with sections 705(c)(2) and 706 of the Act. Because the ITC determined that imports of freight rail couplers from China are materially injuring a U.S. industry, unliquidated entries of such merchandise from China entered, or withdrawn from warehouse, for consumption are subject to the assessment of countervailing duties. Therefore, in accordance with section 706(a)(1) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to assess, upon further instruction by Commerce, countervailing duties on all relevant entries of freight rail couplers from China. Countervailing duties will be assessed on unliquidated entries of freight rail couplers from China which are entered, or withdrawn from warehouse, for consumption on or after March 3, 2023, the date of publication of the Preliminary Determination,4 but will not be assessed on entries occurring after the expiration of the provisional measures period and before publication of the ITC’s final affirmative injury determination, as further described in the ‘‘Provisional Measures’’ section below. Suspension of Liquidation and Cash Deposits In accordance with section 706 of the Act, Commerce will instruct CBP to continue to suspend liquidation of all relevant entries of freight rail couplers from China. These instructions suspending liquidation will remain in effect until further notice. Commerce also intends, pursuant to section 706(a)(1) of the Act, to instruct CBP to require cash deposits equal to the amounts as indicated below. Accordingly, effective on the date of publication of the ITC’s final affirmative injury determination in the Federal Register, CBP will require, at the same time as importers would deposit estimated normal customs duties on the subject merchandise, a cash deposit for each entry of subject merchandise equal to the subsidy rates listed below.5 The all-others rate applies to all producers or exporters not specifically listed below, as appropriate. 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 ............................................................................................................................................................................................. lotter on DSK11XQN23PROD with NOTICES1 Provisional Measures Section 703(d) of the Act states that suspension of liquidation instructions issued pursuant to an affirmative preliminary determination may not remain in effect for more than four months. Commerce published its Preliminary Determination on March 3, 2023.6 Therefore, the provisional measures period, beginning on the date of publication of the Preliminary Determination, ended on June 30, 2023. Pursuant to section 707(b) of the Act, the collection of cash deposits at the rates listed above will begin on the date of publication of the ITC’s final affirmative injury determinations. Therefore, in accordance with section 703(d) of the Act, Commerce will 2 See ITC’s Letter, ‘‘Notification of ITC Final Determinations,’’ dated July 3, 2023 (ITC Notification). 3 Id. VerDate Sep<11>2014 17:54 Jul 13, 2023 Jkt 259001 instruct CBP to terminate the suspension of liquidation and to liquidate, without regard to countervailing duties, unliquidated entries of freight rail couplers from China entered, or withdrawn from warehouse, for consumption after June 30, 2023, the date on which the provisional measures expired, through July 6, 2023, the day preceding the date of publication of the ITC’s final injury determination in the Federal Register.7 Suspension of liquidation will resume on the date of publication of the ITC’s final affirmative injury determination in the Federal Register. Critical Circumstances With regard to the ITC’s negative critical circumstances determination on 4 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). PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 265.99 265.99 265.99 265.99 265.99 265.99 265.99 265.99 265.99 265.99 imports of freight rail couplers from China,8 Commerce intends to instruct CBP to lift suspension and to refund any cash deposits made to secure the payment of estimated countervailing duties with respect to entries of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after December 3, 2022 (i.e., 90 days prior to the date of the publication of the Preliminary Determination), but before March 3, 2023 (i.e., the date of publication of the Preliminary Determination). Establishment of the Annual Inquiry Service List On September 20, 2021, Commerce published the Final Rule in the Federal 5 See section 706(a)(3) of the Act. Preliminary Determination. 7 See Certain Freight Rail Couplers and Parts Thereof from China, 88 FR 43398 (July 7, 2023). 8 Id. 6 See E:\FR\FM\14JYN1.SGM 14JYN1 Federal Register / Vol. 88, No. 134 / Friday, July 14, 2023 / Notices lotter on DSK11XQN23PROD with NOTICES1 Register.9 On September 27, 2021, Commerce also published the Procedural Guidance in the Federal Register.10 The Final Rule and Procedural Guidance provide that Commerce will maintain an annual inquiry service list for each order or suspended investigation, and any interested party submitting a scope ruling application or request for circumvention inquiry shall serve a copy of the application or request on the persons on the annual inquiry service list for that order, as well as any companion order covering the same merchandise from the same country of origin.11 In accordance with the Procedural Guidance, for orders published in the Federal Register after November 4, 2021, Commerce will create an annual inquiry service list segment in Commerce’s online e-filing and document management system, Antidumping and Countervailing Duty Electronic Service System (ACCESS), available at https://access.trade.gov/, within five business days of publication of the notice of the order. Each annual inquiry service list will be saved in ACCESS, under each case number, and under a specific segment type called ‘‘AISL-Annual Inquiry Service List.’’ 12 Interested parties who wish to be added to the annual inquiry service list for an order must submit an entry of appearance to the annual inquiry service list segment for the order in ACCESS within 30 days after the date of publication of the order. For ease of administration, Commerce requests that law firms with more than one attorney representing interested parties in an order designate a lead attorney to be included on the annual inquiry service list. Commerce will finalize the annual inquiry service list within five business days thereafter. As mentioned in the Procedural Guidance, the new annual inquiry service list will be in place until 9 See Regulations to Improve Administration and Enforcement of Antidumping and Countervailing Duty Laws, 86 FR 52300 (September 20, 2021) (Final Rule). 10 See Scope Ruling Application; Annual Inquiry Service List; and Informational Sessions, 86 FR 53205 (September 27, 2021) (Procedural Guidance). 11 Id. 12 This segment will be combined with the ACCESS Segment Specific Information (SSI) field, which will display the month in which the notice of the order or suspended investigation was published in the Federal Register, also known as the anniversary month. For example, for an order under case number A–000–000 that was published in the Federal Register in January, the relevant segment and SSI combination will appear in ACCESS as ‘‘AISL-January Anniversary.’’ Note that there will be only one annual inquiry service list segment per case number, and the anniversary month will be pre-populated in ACCESS. VerDate Sep<11>2014 17:54 Jul 13, 2023 Jkt 259001 the following year, when the Opportunity Notice for the anniversary month of the order is published. Commerce may update an annual inquiry service list at any time as needed based on interested parties’ amendments to their entries of appearance to remove or otherwise modify their list of members and representatives, or to update contact information. Any changes or announcements pertaining to these procedures will be posted to the ACCESS website at https:// access.trade.gov. Special Instructions for Petitioners and Foreign Governments In the Final Rule, Commerce stated that, ‘‘after an initial request and placement on the annual inquiry service list, both petitioners and foreign governments will automatically be placed on the annual inquiry service list in the years that follow.’’ 13 Accordingly, as stated above, the petitioner and the Government of China should submit their initial entry of appearance after publication of this notice in order to appear in the first annual inquiry service list for this order. Pursuant to 19 CFR 351.225(n)(3), the petitioner and the Government of China will not need to resubmit their entries of appearance each year to continue to be included on the annual inquiry service list. However, the petitioner and the Government of China are responsible for making amendments to their entries of appearance during the annual update to the annual inquiry service list in accordance with the procedures described above. Notification to Interested Parties This notice constitutes the CVD order with respect to freight rail couplers from China pursuant to section 706(a) of the Act. Interested parties can find a list of duty orders currently in effect at https:// enforcement.trade.gov/stats/ iastats1.html. This CVD order is published in accordance with section 706(a) of the Act and 19 CFR 351.211(b). Dated: July 7, 2023. Lisa W. Wang, Assistant Secretary for Enforcement and Compliance. Appendix Scope of the Order The merchandise covered by the order is 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 PO 00000 13 See Final Rule, 86 FR at 52335. Frm 00010 Fmt 4703 Sfmt 4703 45137 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 order 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 order when imported separately. Coupler locks, lock lift assemblies, knuckle pins, knuckle throwers, and rotors are covered merchandise when imported in an assembly but are not covered by the scope when imported separately. Subject freight railcar couplers and parts are included within the scope whether finished or unfinished, whether imported individually or with other subject or nonsubject parts, whether assembled or unassembled, whether mounted or unmounted, or if joined with nonsubject merchandise, such as other nonsubject parts or a completed railcar. Finishing includes, but is not limited to, arc washing, welding, grinding, shot blasting, heat treatment, machining, and assembly of various parts. When a subject coupler or subject parts are mounted on or to other nonsubject merchandise, such as a railcar, only the coupler or subject parts are covered by the scope. The finished products covered by the scope of the order 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 to the order 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 E:\FR\FM\14JYN1.SGM 14JYN1 45138 Federal Register / Vol. 88, No. 134 / Friday, July 14, 2023 / Notices 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 order is dispositive. [FR Doc. 2023–14891 Filed 7–13–23; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–145] Certain Freight Rail Couplers and Parts Thereof From the People’s Republic of China: Antidumping Duty Order Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: Based on affirmative final determinations by the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC), Commerce is issuing an antidumping duty order on certain freight rail couplers and parts thereof (freight rail couplers) from the People’s Republic of China (China). DATES: Applicable July 14, 2023. FOR FURTHER INFORMATION CONTACT: Drew Jackson or Zachary Shaykin, AD/ CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4406 or (202) 482–2638, respectively. AGENCY: SUPPLEMENTARY INFORMATION: lotter on DSK11XQN23PROD with NOTICES1 Background In accordance with sections 735(d) and 777(i) of the Tariff Act of 1930, as amended (the Act), On May 30, 2023, Commerce published in the Federal Register its affirmative final determination in the less-than-fair-value (LTFV) investigation of freight rail couplers from China.1 On July 3, 2023, the ITC notified Commerce of its final determination, pursuant to section 735(d) of the Act, that an industry in the United States is materially injured within the meaning of section 735(b)(1)(A)(i) of the Act by reason of LTFV imports freight rail couplers from China, and that critical circumstances do not exist with respect to dumped 1 See Certain Freight Rail Couplers and Parts Thereof from the People’s Republic of China: Final Affirmative Determination of Sales at Less-ThanFair Value and Final Affirmative Determination of Critical Circumstances, 88 FR 34485 (May 30, 2023) (Final Determination). VerDate Sep<11>2014 18:44 Jul 13, 2023 Jkt 259001 imports of freight rail couplers from China.2 Scope of the Order The products covered by this order are freight rail couplers from China. For a complete description of the scope of this order, see the appendix to this notice. Antidumping Duty Order On July 3, 2023, in accordance with section 735(d) of the Act, the ITC notified Commerce of its final determination that an industry in the United States is materially injured within the meaning of section 735(b)(1)(A)(1) of the Act by reason of imports of freight rail couplers from China.3 Therefore, Commerce is issuing this antidumping duty order in accordance with sections 735(c)(2) and 736 of the Act. Because the ITC determined that imports of freight rail couplers from China are materially injuring a U.S. industry, unliquidated entries of such merchandise from China, entered or withdrawn from warehouse for consumption, are subject to the assessment of antidumping duties. Therefore, in accordance with section 736(a)(1) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to assess, upon further instruction by Commerce, antidumping duties equal to the amount by which the normal value of the merchandise exceeds the export price (or constructed export price) of the merchandise, for all relevant entries of freight rail couplers from China. Antidumping duties will be assessed on unliquidated entries of freight rail couplers from China, or withdrawn from warehouse, for consumption, on or after March 13, 2023, the date of publication of the Preliminary Determination in the Federal Register.4 Continuation of Suspension of Liquidation In accordance with section 736 of the Act, Commerce will instruct CBP to continue to suspend liquidation on all relevant entries of freight rail couplers from China. These instructions suspending liquidation will remain in effect until further notice. Commerce will also instruct CBP to require cash deposits equal to the 2 See ITC’s Letter, Notification of ITC Final Determinations, dated July 3, 2023. 3 Id. 4 See Certain Freight Rail Couplers and Parts Thereof from the People’s Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Preliminary Affirmative Determination of Critical Circumstances, 88 FR 15372 (March 13, 2023) (Preliminary Determination). PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 estimated weighted-average dumping margins indicated in the tables below. Accordingly, effective on the date of publication in the Federal Register of the notice of the ITC’s final affirmative injury determination, CBP will require, at the same time as importers would normally deposit estimated duties on subject merchandise, a cash deposit equal to the rates listed below. Commerce determined that all exporters of Chinese freight rail couplers are part of the China-wide entity.5 Accordingly, the China-wide entity rate listed below applies to all exporters. Estimated Weighted-Average Dumping Margins The estimated weighted-average dumping margins are as follows: Exporter/producer China-Wide Entity Estimated weightedaverage dumping margin (percent) Estimated weightedaverage dumping margin adjusted for export subsidy offset(s) (percent) 6 169.90 139.49 Critical Circumstances With respect to the ITC’s negative critical circumstances determination on imports of freight rail couplers, Commerce intends to instruct CBP to lift suspension and to refund any cash deposits made to secure the payment of estimated antidumping duties with respect to entries of the subject merchandise from China entered, or withdrawn from warehouse, for consumption on or after December 13, 2022 (i.e., 90 days prior to the date of the publication of the Preliminary Determination), but before March 13, 2023 (i.e., the date of publication of the Preliminary Determination). Establishment of the Annual Inquiry Service Lists On September 20, 2021, Commerce published the final rule titled ‘‘Regulations to Improve Administration and Enforcement of Antidumping and Countervailing Duty Laws’’ in the 5 See Final Determination. estimated weighted-average dumping margin listed in the Preliminary Determination did not reflect an adjustment for export subsidies found in the companion countervailing duty investigation of freight rail couplers from China. Commerce will instruct CBP to refund the difference between the unadjusted estimated weighted-average dumping margin collected as cash deposits (i.e., 169.90 percent) after the publication of the Preliminary Determination and the estimated weighted-average dumping margin adjusted for export subsidy offset(s) (i.e., 139.49). 6 The E:\FR\FM\14JYN1.SGM 14JYN1

Agencies

[Federal Register Volume 88, Number 134 (Friday, July 14, 2023)]
[Notices]
[Pages 45135-45138]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14891]


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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: Countervailing Duty Order

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

SUMMARY: Based on affirmative final determinations by the U.S. 
Department of Commerce (Commerce) and the U.S. International Trade 
Commission (ITC), Commerce is issuing a countervailing duty (CVD) order 
on certain freight rail couplers and parts thereof (freight rail 
couplers) from the People's Republic of China (China).

DATES: Applicable July 14, 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

    In accordance with section 705(d) of the Tariff Act of 1930, as 
amended (the Act), on May 19, 2023, Commerce published its affirmative 
final determination in the CVD investigation of freight rail couplers 
from China.\1\ On July 3, 2023, the ITC notified Commerce of its final 
affirmative determination that an industry in the United States is

[[Page 45136]]

materially injured by reason of subsidized imports of freight rail 
couplers from China, within the meaning of section 705(b)(1)(A)(i) of 
the Act.\2\
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    \1\ See 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, 88 FR 32184 (May 19, 2023) (Final 
Determination).
    \2\ See ITC's Letter, ``Notification of ITC Final 
Determinations,'' dated July 3, 2023 (ITC Notification).
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Scope of the Order

    The products covered by this order are freight rail couplers from 
China. For a complete description of the scope of the order, see the 
appendix to this notice.

Countervailing Duty Order

    On July 3, 2023, in accordance with section 705(d) of the Act, the 
ITC notified Commerce of its final determination that an industry in 
the United States is materially injured within the meaning of section 
705(b)(1)(A)(i) of the Act by reason of imports of freight rail 
couplers from China.\3\ Therefore, Commerce is issuing this CVD order 
in accordance with sections 705(c)(2) and 706 of the Act. Because the 
ITC determined that imports of freight rail couplers from China are 
materially injuring a U.S. industry, unliquidated entries of such 
merchandise from China entered, or withdrawn from warehouse, for 
consumption are subject to the assessment of countervailing duties.
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    \3\ Id.
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    Therefore, in accordance with section 706(a)(1) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
assess, upon further instruction by Commerce, countervailing duties on 
all relevant entries of freight rail couplers from China. 
Countervailing duties will be assessed on unliquidated entries of 
freight rail couplers from China which are entered, or withdrawn from 
warehouse, for consumption on or after March 3, 2023, the date of 
publication of the Preliminary Determination,\4\ but will not be 
assessed on entries occurring after the expiration of the provisional 
measures period and before publication of the ITC's final affirmative 
injury determination, as further described in the ``Provisional 
Measures'' section below.
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    \4\ 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).
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Suspension of Liquidation and Cash Deposits

    In accordance with section 706 of the Act, Commerce will instruct 
CBP to continue to suspend liquidation of all relevant entries of 
freight rail couplers from China. These instructions suspending 
liquidation will remain in effect until further notice.
    Commerce also intends, pursuant to section 706(a)(1) of the Act, to 
instruct CBP to require cash deposits equal to the amounts as indicated 
below. Accordingly, effective on the date of publication of the ITC's 
final affirmative injury determination in the Federal Register, CBP 
will require, at the same time as importers would deposit estimated 
normal customs duties on the subject merchandise, a cash deposit for 
each entry of subject merchandise equal to the subsidy rates listed 
below.\5\ The all-others rate applies to all producers or exporters not 
specifically listed below, as appropriate.
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    \5\ See section 706(a)(3) of the Act.

------------------------------------------------------------------------
                                                           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
------------------------------------------------------------------------

Provisional Measures

    Section 703(d) of the Act states that suspension of liquidation 
instructions issued pursuant to an affirmative preliminary 
determination may not remain in effect for more than four months. 
Commerce published its Preliminary Determination on March 3, 2023.\6\ 
Therefore, the provisional measures period, beginning on the date of 
publication of the Preliminary Determination, ended on June 30, 2023. 
Pursuant to section 707(b) of the Act, the collection of cash deposits 
at the rates listed above will begin on the date of publication of the 
ITC's final affirmative injury determinations.
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    \6\ See Preliminary Determination.
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    Therefore, in accordance with section 703(d) of the Act, Commerce 
will instruct CBP to terminate the suspension of liquidation and to 
liquidate, without regard to countervailing duties, unliquidated 
entries of freight rail couplers from China entered, or withdrawn from 
warehouse, for consumption after June 30, 2023, the date on which the 
provisional measures expired, through July 6, 2023, the day preceding 
the date of publication of the ITC's final injury determination in the 
Federal Register.\7\ Suspension of liquidation will resume on the date 
of publication of the ITC's final affirmative injury determination in 
the Federal Register.
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    \7\ See Certain Freight Rail Couplers and Parts Thereof from 
China, 88 FR 43398 (July 7, 2023).
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Critical Circumstances

    With regard to the ITC's negative critical circumstances 
determination on imports of freight rail couplers from China,\8\ 
Commerce intends to instruct CBP to lift suspension and to refund any 
cash deposits made to secure the payment of estimated countervailing 
duties with respect to entries of the subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after December 3, 2022 
(i.e., 90 days prior to the date of the publication of the Preliminary 
Determination), but before March 3, 2023 (i.e., the date of publication 
of the Preliminary Determination).
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    \8\ Id.
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Establishment of the Annual Inquiry Service List

    On September 20, 2021, Commerce published the Final Rule in the 
Federal

[[Page 45137]]

Register.\9\ On September 27, 2021, Commerce also published the 
Procedural Guidance in the Federal Register.\10\ The Final Rule and 
Procedural Guidance provide that Commerce will maintain an annual 
inquiry service list for each order or suspended investigation, and any 
interested party submitting a scope ruling application or request for 
circumvention inquiry shall serve a copy of the application or request 
on the persons on the annual inquiry service list for that order, as 
well as any companion order covering the same merchandise from the same 
country of origin.\11\
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    \9\ See Regulations to Improve Administration and Enforcement of 
Antidumping and Countervailing Duty Laws, 86 FR 52300 (September 20, 
2021) (Final Rule).
    \10\ See Scope Ruling Application; Annual Inquiry Service List; 
and Informational Sessions, 86 FR 53205 (September 27, 2021) 
(Procedural Guidance).
    \11\ Id.
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    In accordance with the Procedural Guidance, for orders published in 
the Federal Register after November 4, 2021, Commerce will create an 
annual inquiry service list segment in Commerce's online e-filing and 
document management system, Antidumping and Countervailing Duty 
Electronic Service System (ACCESS), available at https://access.trade.gov/, within five business days of publication of the 
notice of the order. Each annual inquiry service list will be saved in 
ACCESS, under each case number, and under a specific segment type 
called ``AISL-Annual Inquiry Service List.'' \12\
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    \12\ This segment will be combined with the ACCESS Segment 
Specific Information (SSI) field, which will display the month in 
which the notice of the order or suspended investigation was 
published in the Federal Register, also known as the anniversary 
month. For example, for an order under case number A-000-000 that 
was published in the Federal Register in January, the relevant 
segment and SSI combination will appear in ACCESS as ``AISL-January 
Anniversary.'' Note that there will be only one annual inquiry 
service list segment per case number, and the anniversary month will 
be pre-populated in ACCESS.
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    Interested parties who wish to be added to the annual inquiry 
service list for an order must submit an entry of appearance to the 
annual inquiry service list segment for the order in ACCESS within 30 
days after the date of publication of the order. For ease of 
administration, Commerce requests that law firms with more than one 
attorney representing interested parties in an order designate a lead 
attorney to be included on the annual inquiry service list. Commerce 
will finalize the annual inquiry service list within five business days 
thereafter. As mentioned in the Procedural Guidance, the new annual 
inquiry service list will be in place until the following year, when 
the Opportunity Notice for the anniversary month of the order is 
published.
    Commerce may update an annual inquiry service list at any time as 
needed based on interested parties' amendments to their entries of 
appearance to remove or otherwise modify their list of members and 
representatives, or to update contact information. Any changes or 
announcements pertaining to these procedures will be posted to the 
ACCESS website at https://access.trade.gov.

Special Instructions for Petitioners and Foreign Governments

    In the Final Rule, Commerce stated that, ``after an initial request 
and placement on the annual inquiry service list, both petitioners and 
foreign governments will automatically be placed on the annual inquiry 
service list in the years that follow.'' \13\ Accordingly, as stated 
above, the petitioner and the Government of China should submit their 
initial entry of appearance after publication of this notice in order 
to appear in the first annual inquiry service list for this order. 
Pursuant to 19 CFR 351.225(n)(3), the petitioner and the Government of 
China will not need to resubmit their entries of appearance each year 
to continue to be included on the annual inquiry service list. However, 
the petitioner and the Government of China are responsible for making 
amendments to their entries of appearance during the annual update to 
the annual inquiry service list in accordance with the procedures 
described above.
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    \13\ See Final Rule, 86 FR at 52335.
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Notification to Interested Parties

    This notice constitutes the CVD order with respect to freight rail 
couplers from China pursuant to section 706(a) of the Act. Interested 
parties can find a list of duty orders currently in effect at https://enforcement.trade.gov/stats/iastats1.html.
    This CVD order is published in accordance with section 706(a) of 
the Act and 19 CFR 351.211(b).

    Dated: July 7, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The merchandise covered by the order is 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 
order 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 order when imported separately. Coupler 
locks, lock lift assemblies, knuckle pins, knuckle throwers, and 
rotors are covered merchandise when imported in an assembly but are 
not covered by the scope when imported separately.
    Subject freight railcar couplers and parts are included within 
the scope whether finished or unfinished, whether imported 
individually or with other subject or nonsubject parts, whether 
assembled or unassembled, whether mounted or unmounted, or if joined 
with nonsubject merchandise, such as other nonsubject parts or a 
completed railcar. Finishing includes, but is not limited to, arc 
washing, welding, grinding, shot blasting, heat treatment, 
machining, and assembly of various parts. When a subject coupler or 
subject parts are mounted on or to other nonsubject merchandise, 
such as a railcar, only the coupler or subject parts are covered by 
the scope.
    The finished products covered by the scope of the order 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 to the order 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

[[Page 45138]]

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 order is dispositive.

[FR Doc. 2023-14891 Filed 7-13-23; 8:45 am]
BILLING CODE 3510-DS-P
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