Certain Brake Drums From the People's Republic of China and the Republic of Türkiye: Initiation of Countervailing Duty Investigations, 58106-58110 [2024-15713]

Download as PDF 58106 Federal Register / Vol. 89, No. 137 / Wednesday, July 17, 2024 / Notices CFR 221(b)(4)(ii), interested parties will have an opportunity to comment on the preliminary results. Unless extended, Commerce will issue the final results of these CCRs in accordance with the time limits in 19 CFR 351.216(e). Notification to Interested Parties This initiation notice is published in accordance with sections 751(b)(1) and 777(i)(1) of the Act and 19 CFR 351.216(b), and 19 CFR 351.221(c)(3). Dated: July 10, 2024. Scot Fullerton, Acting Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations. [FR Doc. 2024–15683 Filed 7–16–24; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–175, C–489–854] Certain Brake Drums From the People’s Republic of China and the Republic of Türkiye: Initiation of Countervailing Duty Investigations Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable July 10, 2024. FOR FURTHER INFORMATION CONTACT: Nathan James (the People’s Republic of China (China)), and Kyle Clahane (Republic of Türkiye (Türkiye)), AD/ CVD Operations, Offices V and III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–5305, and (202) 482–5449, respectively. SUPPLEMENTARY INFORMATION: ddrumheller on DSK120RN23PROD with NOTICES1 AGENCY: The Petitions On June 20, 2024, the U.S. Department of Commerce (Commerce) received countervailing duty (CVD) petitions concerning imports of certain brake drums (brake drums), from China and Türkiye filed in proper form on behalf of Webb Wheel Products, Inc. (the petitioner), a U.S. producer of brake drums.1 The CVD petitions were accompanied by antidumping duty (AD) petitions concerning imports of brake drums from China and Türkiye.2 Between June 24 and July 5, 2024, Commerce requested supplemental 1 See Petitioner’s Letters, ‘‘Antidumping and Countervailing Duty Petitions on Behalf of Webb Wheel Products Inc.,’’ dated June 20, 2024 (Petitions). 2 See, generally, Petitions. VerDate Sep<11>2014 19:21 Jul 16, 2024 Jkt 262001 information pertaining to certain aspects of the Petitions.3 Between June 28 and July 8, 2024, the petitioner filed timely responses to these requests for additional information.4 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioner alleges that the Government of China (GOC) and the Government of Türkiye (GOT) (collectively, Governments) are providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of brake drums from China and Türkiye, and that such imports are materially injuring, or threatening material injury to, the domestic industry producing brake drums in the United States. Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating CVD investigations, the Petitions were accompanied by information reasonably available to the petitioner supporting its allegations. Commerce finds that the petitioner filed the Petitions on behalf of the domestic industry because the petitioner is an interested party as defined in section 771(9)(C) of the Act. Commerce also finds that the petitioner demonstrated sufficient industry support with respect to the initiation of the requested CVD investigations.5 Periods of Investigation Because the Petitions were filed on June 20, 2024, the periods of investigation for the China and Türkiye CVD investigations are January 1, 2023, through December 31, 2023.6 3 See Commerce’s Letters, ‘‘Supplemental Questionnaire,’’ dated June 24, 2024 (General Issues Questionnaire); ‘‘Petition for the Imposition of Countervailing Duties on Imports of Certain Brake Drums from the Republic of Türkiye: Supplemental Questions,’’ dated June 24, 2024; ‘‘Petition for the Imposition of Countervailing Duties on Imports of Certain Brake Drums from China: Supplemental Questions,’’ dated June 25, 2024; and ‘‘Supplemental Questions,’’ dated July 5, 2024; see also Memoranda, ‘‘Phone Call with Counsel to the Petitioner,’’ dated July 2, 2024 (July 2, 2024, Memorandum). 4 See Petitioner’s Letters, ‘‘Supplemental Questionnaire Response, Volume I,’’ dated June 28, 2024 (General Issues Supplement); ‘‘Certain Brake Drums from Türkiye: Supplemental Questionnaire Response, Volume V,’’ dated July 1, 2024; ‘‘Certain Brake Drums from the People’s Republic of China: Supplemental Questionnaire Response,’’ dated July 2, 2024; ‘‘Supplemental Questionnaire Response, Volume I,’’ dated July 5, 2024 (Second General Issues Supplement); and ‘‘Supplemental Questionnaire Response, Volume I,’’ dated July 8, 2024 (Industry Support Supplement). 5 See section on ‘‘Determination of Industry Support for the Petitions,’’ infra. 6 See 19 CFR 351.204(b)(2). PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 Scope of the Investigations The products covered by these investigations are brake drums from China and Türkiye. For a full description of the scope of these investigations, see the appendix to this notice. Comments on the Scope of the Investigations Between June 24 and July 2, 2024, Commerce requested information and clarification from the petitioner regarding the proposed scope to ensure that the scope language in the Petitions is an accurate reflection of the products for which the domestic industry is seeking relief.7 Between June 28 and July 5, 2024, the petitioner provided clarifications and revised the scope.8 The description of merchandise covered by these investigations, as shown in the appendix to this notice, reflects these clarifications. As discussed in the Preamble to Commerce’s regulations, we are setting aside a period for interested parties to raise issues regarding product coverage (i.e., scope).9 Commerce will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determinations. If scope comments include factual information, all such factual information should be limited to public information.10 To facilitate preparation of its questionnaires, Commerce requests that scope comments be submitted by 5:00 p.m. Eastern Time (ET) on July 30, 2024, which is 20 calendar days from the signature date of this notice.11 Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on August 9, 2024, which is 10 calendar days from the initial comment deadline. Commerce requests that any factual information that parties consider relevant to the scope of the investigations be submitted during that time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigations may be relevant, the party must contact Commerce and request permission to 7 See General Issues Questionnaire; see also July 2 Memorandum. 8 See First General Issues Supplement at 1–2 and Exhibit I–S1–3; and Second General Issues Supplement at 1–2. 9 See Antidumping Duties; Countervailing Duties; Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 10 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 11 See 19 CFR 351.303(b)(1). E:\FR\FM\17JYN1.SGM 17JYN1 Federal Register / Vol. 89, No. 137 / Wednesday, July 17, 2024 / Notices submit the additional information. All scope comments must be filed simultaneously on the records of the concurrent AD and CVD investigations. Filing Requirements All submissions to Commerce must be filed electronically via Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS), unless an exception applies.12 An electronically filed document must be received successfully in its entirety by the time and date it is due. Consultations Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce notified the Governments of the receipt of the Petitions and provided an opportunity for consultations with respect to the Petitions.13 Commerce held consultations with the GOT on July 9, 2024.14 The GOC filed consultation remarks in lieu of consultations on July 8, 2024.15 ddrumheller on DSK120RN23PROD with NOTICES1 Determination of Industry Support for the Petitions Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) at least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total 12 See Antidumping and Countervailing Duty Proceedings: Electronic Filing Procedures; Administrative Protective Order Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and Compliance; Change of Electronic Filing System Name, 79 FR 69046 (November 20, 2014), for details of Commerce’s electronic filing requirements, effective August 5, 2011. Information on using ACCESS can be found at https://access.trade.gov/ help.aspx and a handbook can be found at https:// access.trade.gov/help/Handbook_on_Electronic_ Filing_Procedures.pdf. 13 See Commerce’s Letters, ‘‘Petition for the Imposition of Countervailing Duties on Imports of Certain Brake Drums from China: Invitation for Consultations,’’ dated June 25, 2024; and ‘‘Countervailing Duty Petition on Certain Brake Drums from the Republic of Türkiye,’’ dated June 20, 2024. 14 See Memorandum, ‘‘Consultation with Officials from Government of Türkiye,’’ dated July 9, 2024. 15 See GOC’s Letter, ‘‘Comments on Countervailing Duty Petition on Certain Brake Drums from the People’s Republic of China (C–570– 175),’’ dated July 8, 2024. VerDate Sep<11>2014 19:21 Jul 16, 2024 Jkt 262001 production of the domestic like product, Commerce shall: (i) poll the industry or rely on other information in order to determine if there is support for the petition, as required by subparagraph (A); or (ii) determine industry support using a statistically valid sampling method to poll the ‘‘industry.’’ Section 771(4)(A) of the Act defines the ‘‘industry’’ as the producers as a whole of a domestic like product. Thus, to determine whether a petition has the requisite industry support, the statute directs Commerce to look to producers and workers who produce the domestic like product. The U.S. International Trade Commission (ITC), which is responsible for determining whether ‘‘the domestic industry’’ has been injured, must also determine what constitutes a domestic like product in order to define the industry. While both Commerce and the ITC apply the same statutory definition regarding the domestic like product,16 they do so for different purposes and pursuant to a separate and distinct authority. In addition, Commerce’s determination is subject to limitations of time and information. Although this may result in different definitions of the like product, such differences do not render the decision of either agency contrary to law.17 Section 771(10) of the Act defines the domestic like product as ‘‘a product which is like, or in the absence of like, most similar in characteristics and uses with, the article subject to an investigation under this title.’’ Thus, the reference point from which the domestic like product analysis begins is ‘‘the article subject to an investigation’’ (i.e., the class or kind of merchandise to be investigated, which normally will be the scope as defined in the petition). With regard to the domestic like product, the petitioner does not offer a definition of the domestic like product distinct from the scope of the investigations.18 Based on our analysis of the information submitted on the record, we have determined that brake drums, as defined in the scope, constitute a single domestic like product, and we have analyzed industry section 771(10) of the Act. USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. Supp. 639, 644 (CIT 1988), aff’d Algoma Steel Corp., Ltd. v. United States, 865 F.2d 240 (Fed. Cir. 1989)). 18 See Petitions at Volume I (pages I–9 through I– 13 and Exhibits I–2 through I–4 and I–7); see also First General Issues Supplement at 4–7 and Exhibits I–SI–5 through I–S1–7); and Industry Support Supplement at 1. PO 00000 16 See 17 See Frm 00006 Fmt 4703 Sfmt 4703 58107 support in terms of that domestic like product.19 In determining whether the petitioner has standing under section 702(c)(4)(A) of the Act, we considered the industry support data contained in the Petitions with reference to the domestic like product as defined in the ‘‘Scope of the Investigations,’’ in the appendix to this notice. The petitioner estimated the 2023 production of the domestic like product for the only other known producer of brake drums in the United States.20 The petitioner compared its production to the estimated total 2023 production of the domestic like product for the entire domestic industry.21 We relied on data provided by the petitioner for purposes of measuring industry support.22 Our review of the data provided in the Petitions, the First General Issues Supplement, the Industry Support Supplement, and other information readily available to Commerce indicates that the petitioner has established industry support for the Petitions.23 First, the Petitions established support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like product and, as such, Commerce is not required to take further action to evaluate industry support (e.g., polling).24 Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the Petitions account for at least 25 percent of the total production of the domestic like 19 For a discussion of the domestic like product analysis as applied to these cases and information regarding industry support, see Checklists, ‘‘Countervailing Duty Investigation Initiation Checklists: Certain Brake Drums from the People’s Republic of China and the Republic of Türkiye,’’ dated concurrently with, and hereby adopted by, this notice (Country-Specific CVD Initiation Checklists), at Attachment II, Analysis of Industry Support for the Antidumping and Countervailing Duty Petitions Covering Certain Brake Drums from the People’s Republic of China and the Republic of Türkiye (Attachment II). These checklists are on file electronically via ACCESS. 20 See Petitions at Volume I (pages I–2 and I–3 and Exhibits I–1 and I–7); see also First General Issues Supplement at 2–3 and Exhibits I–S1–1 and I–S1–2. 21 See Petitions at Volume I (pages I–2 and I–3 and Exhibit I–1); see also First General Issues Supplement at 3 and Exhibit I–S1–2. 22 See Petition at Volume I (pages I–2 and I–3 and Exhibits I–1 and I–7); see also First General Issues Supplement at 2–4 and Exhibits I–S1–1, I–S1–2, and I–S4; and Industry Support Supplement at 1– 3. For further discussion, see Attachment II of the Country-Specific CVD Initiation Checklists. 23 See Attachment II of the Country-Specific CVD Initiation Checklists. 24 Id.; see also section 702(c)(4)(D) of the Act. E:\FR\FM\17JYN1.SGM 17JYN1 58108 Federal Register / Vol. 89, No. 137 / Wednesday, July 17, 2024 / Notices product.25 Finally, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) who support the Petitions account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the Petitions.26 Accordingly, Commerce determines that the Petitions were filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act.27 Injury Test Because China and Türkiye are ‘‘Subsidies Agreement Countries’’ within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to these investigations. Accordingly, the ITC must determine whether imports of the subject merchandise from China and/or Türkiye materially injure, or threaten material injury to, a U.S. industry. Allegations and Evidence of Material Injury and Causation ddrumheller on DSK120RN23PROD with NOTICES1 The petitioner alleges that imports of the subject merchandise are benefiting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product. In addition, the petitioner alleges that subject imports from China and Türkiye individually exceed the negligibility threshold provided for under section 771(24)(A) of the Act.28 The petitioner contends that the industry’s injured condition is illustrated by the significant and increasing volume of subject imports; decreased market share; underselling and price depression and/or suppression; lost sales and revenues; decline in capacity utilization, production, and U.S. sales quantity; decline in production-related workers; and decline in operating margins.29 We assessed the allegations and supporting evidence regarding material injury, threat of material injury, causation, cumulation, as well as negligibility, and we have determined that these allegations are properly supported by 25 See Attachment II of the Country-Specific CVD Initiation Checklists. 26 Id. 27 Id. 28 See Petitions at Volume I (pages I–13 and I–14 and Exhibit I–8). 29 Id. at I–13 through I–36 and Exhibits I–7 through I–25; see also First General Issues Supplement at 7 and Exhibits I–S1–8 and I–S1–9. VerDate Sep<11>2014 19:21 Jul 16, 2024 Jkt 262001 adequate evidence and meet the statutory requirements for initiation.30 Initiation of CVD Investigations Based upon our examination of the Petitions and supplemental responses, we find that they meet the requirements of section 702 of the Act. Therefore, we are initiating CVD investigations to determine whether imports of brake drums from China and Türkiye benefit from countervailable subsidies conferred by the GOC and the GOT, respectively. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determinations no later than 65 days after the date of these initiations. China Based on our review of the Petitions, we find that there is sufficient information to initiate a CVD investigation on 17 of the 18 programs alleged by the petitioner. For a full discussion of the basis of our initiation decision for each program, see the China CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. Türkiye Based on our review of the Petitions, we find that there is sufficient information to initiate a CVD investigation on 44 of the 47 of the programs alleged by the petitioner. For a full discussion of the basis of our initiation decision for each program, see the Türkiye CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. Respondent Selection In the Petitions, the petitioner identified 54 companies in China, and 19 companies in Türkiye, as producers or exporters of brake drums.31 Commerce intends to follow its standard practice in CVD investigations and calculate company-specific subsidy rates in these investigations. In the event that Commerce determines that the number of companies is large and it cannot individually examine each company based on Commerce’s resources, Commerce normally selects mandatory respondents in CVD investigations using 30 See Country-Specific CVD Initiation Checklists at Attachment III, Analysis of Allegations and Evidence of Material Injury and Causation for the Antidumping and Countervailing Duty Petitions Covering Certain Brake Drums from the People’s Republic of China and the Republic of Türkiye. 31 See Petitions at Volume I (Exhibit I–5). PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 U.S. Customs and Border Protection (CBP) entry data for U.S. imports under the appropriate Harmonized Tariff Schedule of the United States (HTSUS) subheading(s) listed in the ‘‘Scope of the Investigations’’ in the appendix. However, for these investigations, the main HTSUS subheading under which the subject merchandise would enter (8708.30.5020) is a basket category under which non-subject merchandise may also enter. Therefore, we cannot rely on CBP entry data in selecting respondents. Notwithstanding the decision to rely on Q&V questionnaires for respondent selection, due to the number of producers and/or exporters identified in the Petitions, Commerce has determined to limit the number of Q&V questionnaires that it will issue to producers and/or exporters based on CBP data for brake drums from China and Türkiye during the POI under the appropriate HTSUS subheading listed in the ‘‘Scope of the Investigations,’’ in the appendix. Accordingly, for China and Türkiye, Commerce will send Q&V questionnaires to the largest producers and/or exporters that are identified in the CBP entry data for which there is complete address information on the record. Commerce will also post the Q&V questionnaires along with filing instructions on Commerce’s website at https://www.trade.gov/ec-adcvd-caseannouncements. Exporters/producers of brake drums from China and Türkiye that do not receive Q&V questionnaires may still submit a response to the Q&V questionnaire and can obtain a copy of the Q&V questionnaire from Commerce’s website. Responses to the Q&V questionnaire must be submitted by the relevant producers/exporters no later than 5:00 p.m. on July 24, 2024, which is two weeks from the signature date of this notice. An electronically filed document must be received successfully, in its entirety, by ACCESS no later than 5:00 p.m. ET on the deadline noted above. Commerce intends to finalize its decision regarding respondent selection within 20 days of publication of this notice. Distribution of Copies of the Petitions In accordance with section 702(b)(4)(A) of the Act and 19 CFR 351.202(f), a copy of the public version of the Petitions has been provided to the GOC and GOT via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the Petitions to each exporter named in the Petitions, as provided under 19 CFR 351.203(c)(2). E:\FR\FM\17JYN1.SGM 17JYN1 Federal Register / Vol. 89, No. 137 / Wednesday, July 17, 2024 / Notices ITC Notification Commerce will notify the ITC of its initiation, as required by section 702(d) of the Act. Preliminary Determinations by the ITC The ITC will preliminarily determine, within 45 days after the date on which the Petitions were filed, whether there is a reasonable indication that imports of brake drums from China and/or Türkiye are materially injuring, or threatening material injury to, a U.S. industry.32 A negative ITC determination for any country will result in the investigation being terminated with respect to that country.33 Otherwise, these CVD investigations will proceed according to statutory and regulatory time limits. ddrumheller on DSK120RN23PROD with NOTICES1 Submission of Factual Information Factual information is defined in 19 CFR 351.102(b)(21) as: (i) evidence submitted in response to questionnaires; (ii) evidence submitted in support of allegations; (iii) publicly available information to value factors of production under 19 CFR 351.408(c) or to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence placed on the record by Commerce; and (v) evidence other than factual information described in (i)–(iv). Section 351.301(b) of Commerce’s regulations requires any party, when submitting factual information, to specify under which subsection of 19 CFR 351.102(b)(21) the information is being submitted 34 and, if the information is submitted to rebut, clarify, or correct factual information already on the record, to provide an explanation identifying the information already on the record that the factual information seeks to rebut, clarify, or correct.35 Time limits for the submission of factual information are addressed in 19 CFR 351.301, which provides specific time limits based on the type of factual information being submitted. Interested parties should review the regulations prior to submitting factual information in these investigations. Extensions of Time Limits Parties may request an extension of time limits before the expiration of a time limit established under 19 CFR 351.301, or as otherwise specified by Commerce. In general, an extension request will be considered untimely if it is filed after the expiration of the time 32 See section 703(a)(1) of the Act. 33 Id. 34 See 35 See 19 CFR 351.301(b). 19 CFR 351.301(b)(2). VerDate Sep<11>2014 19:21 Jul 16, 2024 Jkt 262001 limit established under 19 CFR 351.301, or as otherwise specified by Commerce.36 For submissions that are due from multiple parties simultaneously, an extension request will be considered untimely if it is filed after 10:00 a.m. ET on the due date. Under certain circumstances, Commerce may elect to specify a different time limit by which extension requests will be considered untimely for submissions which are due from multiple parties simultaneously. In such a case, we will inform parties in a letter or memorandum of the deadline (including a specified time) by which extension requests must be filed to be considered timely. An extension request must be made in a separate, standalone submission; under limited circumstances we will grant untimely filed requests for the extension of time limits, where we determine, based on 19 CFR 351.302, that extraordinary circumstances exist. Parties should review Commerce’s regulations concerning the extension of time limits and the Time Limits Final Rule prior to submitting factual information in these investigations.37 Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.38 Parties must use the certification formats provided in 19 CFR 351.303(g).39 Commerce intends to reject factual submissions if the submitting party does not comply with the applicable certification requirements. Notification to Interested Parties Interested parties must submit applications for disclosure under APO in accordance with 19 CFR 351.305. Parties wishing to participate in these investigations should ensure that they meet the requirements of 19 CFR 351.103(d) (e.g., by filing the required letters of appearance). Note that Commerce has amended certain of its 19 CFR 351.302. 19 CFR 351.301; see also Extension of Time Limits; Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final Rule), available at https:// www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/201322853.htm. 38 See section 782(b) of the Act. 39 See Certification of Factual Information to Import Administration During Antidumping and Countervailing Duty Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also frequently asked questions regarding the Final Rule, available at https://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. PO 00000 36 See 37 See Frm 00008 Fmt 4703 Sfmt 4703 58109 requirements pertaining to the service of documents in 19 CFR 351.303(f).40 This notice is issued and published pursuant to sections 702 and 777(i) of the Act, and 19 CFR 351.203(c). Dated: July 10, 2024. Abdelali Elouaradia, Deputy Assistant Secretary for Enforcement and Compliance. Appendix Scope of the Investigations The merchandise covered by these investigations is certain brake drums made of gray cast iron, whether finished or unfinished, with an actual or nominal inside diameter of 14.75 inches or more but not over 16.6 inches, weighing more than 50 pounds. Unfinished brake drums are those which have undergone some turning or machining but are not ready for installation. Subject brake drums are included within the scope whether imported individually or with nonsubject merchandise (for example, a hub), whether assembled or unassembled, or if joined with non-subject merchandise. When a subject drum is imported together with non-subject merchandise, such as, but not limited to, a drum-hub assembly, only the subject drum is covered by the scope. Subject merchandise also includes finished and unfinished brake drums that are further processed in a third country or in the United States, including, but not limited to, assembly or any other processing that would not otherwise remove the merchandise from the scope of these investigations if performed in the country of manufacture of the subject brake drums. The inclusion, attachment, joining, or assembly of non-subject merchandise with subject drums either in the country of manufacture of the subject drum or in a third country does not remove the subject drum from the scope. Specifically excluded is merchandise covered by the scope of the antidumping and countervailing duty orders on certain chassis and subassemblies thereof from the People’s Republic of China. See Certain Chassis and Subassemblies Thereof from the People’s Republic of China: Antidumping Duty Order, 86 FR 36093 (July 8, 2021) and Certain Chassis and Subassemblies Thereof From the People’s Republic of China: Countervailing Duty Order and Amended Final Affirmative Countervailing Duty Determination, 86 FR 24844 (May 10, 2021). The scope also excludes composite brake drums that contain more than 40 percent steel by weight. The merchandise covered by these investigations is classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheading 8708.30.5020. The merchandise covered by these investigations may be classifiable under HTSUS subheading 8708.30.5090 when entered as part of an assembly. Subject merchandise may also enter under HTSUS 40 See Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 67069 (September 29, 2023). E:\FR\FM\17JYN1.SGM 17JYN1 58110 Federal Register / Vol. 89, No. 137 / Wednesday, July 17, 2024 / Notices subheading 8716.90.5060. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise covered by these investigations is dispositive. [FR Doc. 2024–15713 Filed 7–16–24; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–106, C–570–107] Wooden Cabinets and Vanities and Components Thereof From the People’s Republic of China: Final Scope Determination, Certification Requirements, and Recission of Circumvention Inquiries on the Antidumping and Countervailing Duty Orders Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The U.S. Department of Commerce (Commerce) determines that certain imports of wooden cabinets and vanities and components thereof (wooden cabinets), completed in Malaysia or the Socialist Republic of Vietnam (Vietnam) using wooden cabinet components or constituent wooden parts manufactured in the People’s Republic of China (China), are covered by the scope of the antidumping duty (AD) and countervailing duty (CVD) orders on wooden cabinets from China. Further, Commerce is rescinding the circumvention inquiries that were initiated to determine whether imports of wooden cabinets from Malaysia or Vietnam are circumventing the AD and CVD orders on wooden cabinets from China. AGENCY: DATES: Applicable July 17, 2024. FOR FURTHER INFORMATION CONTACT: Michael Romani, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–0198. SUPPLEMENTARY INFORMATION: ddrumheller on DSK120RN23PROD with NOTICES1 Background On April 21, 2020, Commerce published the AD and CVD orders on imports of wooden cabinets from China.1 On May 24, 2022, Commerce 1 See Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Antidumping Duty Order, 85 FR 22126 (April 21, 2020) (Wooden Cabinets from China AD Order); and Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of VerDate Sep<11>2014 19:21 Jul 16, 2024 Jkt 262001 issued scope initiation memoranda explaining that we intended to determine whether imports of wooden cabinets completed in Malaysia and Vietnam using wooden component parts manufactured in China are covered by the AD and CVD orders on wooden cabinets from China.2 Further, on June 10, 2022, Commerce published in the Federal Register the notice of initiation of circumvention inquiries of the AD and CVD orders on wooden cabinets from China which were assembled in Malaysia or Vietnam using wooden cabinet component parts sourced from China.3 The American Kitchen Cabinet Alliance (the petitioner) withdrew its support for continuing the circumvention inquiry.4 For a complete description of the events that followed the initiation, see the Final Scope Memoranda.5 Scope of the Orders The merchandise covered by these Orders are wooden cabinets from China. A complete description of the scope of the Orders is provided in the Final Scope Memoranda.6 Merchandise Subject to the Scope and Circumvention Inquiries These scope and circumvention inquiries cover wooden cabinets exported to the United States that were completed in Malaysia or Vietnam under the following scenarios: Scenario 1: A Malaysian or Vietnamese company imports finished wooden cabinet doors, drawer fronts, and frames that are produced in China. The Malaysian or Vietnamese company produces wooden cabinet boxes and drawer boxes in Malaysia or Vietnam China: Countervailing Duty Order, 85 FR 22134 (April 21, 2020) (Wooden Cabinets from China CVD Order) (collectively, Orders). 2 See Memoranda, ‘‘Initiation of Scope Inquiry,’’ dated May 24, 2022 (Scope Initiation). 3 See Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China: Initiation of Circumvention Inquiries on the Antidumping and Countervailing Duty Orders, 87 FR 354999 (June 10, 2022) (Circumvention Initiation Notice), and accompanying Circumvention Initiation Memorandum. 4 See Memoranda, ‘‘Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China—Final Scope Ruling on Certain Wooden Cabinets that Are Further Processed in Malaysia,’’ dated concurrently with this notice (Malaysia Final Scope Memorandum), at Comment 12; and ‘‘Wooden Cabinets and Vanities and Components Thereof from the People’s Republic of China—Final Scope Ruling on Certain Wooden Cabinets that Are Further Processed in the Socialist Republic of Vietnam,’’ dated concurrently with this notice (Vietnam Final Scope Memorandum), at Comment 12 (collectively, Final Scope Rulings). 5 See Final Scope Rulings at section II, Background. 6 See Final Scope Rulings at section III, Scope of the Orders. PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 and combines the wooden cabinet subassemblies from China and Malaysia or Vietnam, resulting in merchandise that still meets the description of the scope of the Orders. Scenario 2: A Malaysian or Vietnamese company imports semifinished wooden cabinet doors, drawer fronts, and frames that are produced in China and performs further processing of these components from China in Malaysia or Vietnam such as trimming, cutting, notching, punching, drilling, painting, staining, or other finishing processes. The Malaysian or Vietnamese company produced wooden cabinet boxes and drawer boxes in Malaysia or Vietnam and combines the wooden cabinet doors, drawer fronts, and frames that are produced in China with the wooden cabinet boxes and drawer boxes produced in Malaysia or Vietnam, resulting in merchandise that still meets the description of the scope of the Orders. Scenario 3: A Malaysian or Vietnamese company imports semifinished wooden component parts of wooden cabinet doors, drawer fronts, and frames that are produced in China. The wooden component parts of the wooden cabinet doors, drawer fronts, and frames include rails, stiles, and panels. The Malaysian or Vietnamese company performs further processing of these parts from China in Malaysia or Vietnam such as trimming, cutting, notching, punching, drilling, painting, staining, or other finishing processes, including the assembly of the wooden component parts into completed subassembly doors, drawer fronts, and frames. The Malaysian or Vietnamese company produces wooden cabinet boxes and drawer boxes in Malaysia or Vietnam. Finally, the Malaysian or Vietnamese company combines the wooden cabinet doors, drawer fronts, and frames that are produced in China with the wooden cabinet boxes and drawer boxes produced in Malaysia or Vietnam, resulting in merchandise that still meets the description of the scope of the Orders. Scenario 4: A Malaysian or Vietnamese company imports a finished wooden cabinet wooden component part, toe kick, that is produced in China. The Malaysian or Vietnamese company produces all other wooden cabinet component parts necessary to assemble a complete wooden cabinet in Malaysia or Vietnam. The Malaysian or Vietnamese company combines the wooden component part, cabinet box toe kick, produced in China with the other wooden cabinet component parts of the cabinet box, as well as the frame, doors, and drawer subassemblies made E:\FR\FM\17JYN1.SGM 17JYN1

Agencies

[Federal Register Volume 89, Number 137 (Wednesday, July 17, 2024)]
[Notices]
[Pages 58106-58110]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15713]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-175, C-489-854]


Certain Brake Drums From the People's Republic of China and the 
Republic of T[uuml]rkiye: Initiation of Countervailing Duty 
Investigations

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


DATES: Applicable July 10, 2024.

FOR FURTHER INFORMATION CONTACT: Nathan James (the People's Republic of 
China (China)), and Kyle Clahane (Republic of T[uuml]rkiye 
(T[uuml]rkiye)), AD/CVD Operations, Offices V and III, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: 
(202) 482-5305, and (202) 482-5449, respectively.

SUPPLEMENTARY INFORMATION:

The Petitions

    On June 20, 2024, the U.S. Department of Commerce (Commerce) 
received countervailing duty (CVD) petitions concerning imports of 
certain brake drums (brake drums), from China and T[uuml]rkiye filed in 
proper form on behalf of Webb Wheel Products, Inc. (the petitioner), a 
U.S. producer of brake drums.\1\ The CVD petitions were accompanied by 
antidumping duty (AD) petitions concerning imports of brake drums from 
China and T[uuml]rkiye.\2\
---------------------------------------------------------------------------

    \1\ See Petitioner's Letters, ``Antidumping and Countervailing 
Duty Petitions on Behalf of Webb Wheel Products Inc.,'' dated June 
20, 2024 (Petitions).
    \2\ See, generally, Petitions.
---------------------------------------------------------------------------

    Between June 24 and July 5, 2024, Commerce requested supplemental 
information pertaining to certain aspects of the Petitions.\3\ Between 
June 28 and July 8, 2024, the petitioner filed timely responses to 
these requests for additional information.\4\
---------------------------------------------------------------------------

    \3\ See Commerce's Letters, ``Supplemental Questionnaire,'' 
dated June 24, 2024 (General Issues Questionnaire); ``Petition for 
the Imposition of Countervailing Duties on Imports of Certain Brake 
Drums from the Republic of T[uuml]rkiye: Supplemental Questions,'' 
dated June 24, 2024; ``Petition for the Imposition of Countervailing 
Duties on Imports of Certain Brake Drums from China: Supplemental 
Questions,'' dated June 25, 2024; and ``Supplemental Questions,'' 
dated July 5, 2024; see also Memoranda, ``Phone Call with Counsel to 
the Petitioner,'' dated July 2, 2024 (July 2, 2024, Memorandum).
    \4\ See Petitioner's Letters, ``Supplemental Questionnaire 
Response, Volume I,'' dated June 28, 2024 (General Issues 
Supplement); ``Certain Brake Drums from T[uuml]rkiye: Supplemental 
Questionnaire Response, Volume V,'' dated July 1, 2024; ``Certain 
Brake Drums from the People's Republic of China: Supplemental 
Questionnaire Response,'' dated July 2, 2024; ``Supplemental 
Questionnaire Response, Volume I,'' dated July 5, 2024 (Second 
General Issues Supplement); and ``Supplemental Questionnaire 
Response, Volume I,'' dated July 8, 2024 (Industry Support 
Supplement).
---------------------------------------------------------------------------

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Government of China 
(GOC) and the Government of T[uuml]rkiye (GOT) (collectively, 
Governments) are providing countervailable subsidies, within the 
meaning of sections 701 and 771(5) of the Act, to producers of brake 
drums from China and T[uuml]rkiye, and that such imports are materially 
injuring, or threatening material injury to, the domestic industry 
producing brake drums in the United States. Consistent with section 
702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs 
on which we are initiating CVD investigations, the Petitions were 
accompanied by information reasonably available to the petitioner 
supporting its allegations.
    Commerce finds that the petitioner filed the Petitions on behalf of 
the domestic industry because the petitioner is an interested party as 
defined in section 771(9)(C) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support with respect to the 
initiation of the requested CVD investigations.\5\
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    \5\ See section on ``Determination of Industry Support for the 
Petitions,'' infra.
---------------------------------------------------------------------------

Periods of Investigation

    Because the Petitions were filed on June 20, 2024, the periods of 
investigation for the China and T[uuml]rkiye CVD investigations are 
January 1, 2023, through December 31, 2023.\6\
---------------------------------------------------------------------------

    \6\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------

Scope of the Investigations

    The products covered by these investigations are brake drums from 
China and T[uuml]rkiye. For a full description of the scope of these 
investigations, see the appendix to this notice.

Comments on the Scope of the Investigations

    Between June 24 and July 2, 2024, Commerce requested information 
and clarification from the petitioner regarding the proposed scope to 
ensure that the scope language in the Petitions is an accurate 
reflection of the products for which the domestic industry is seeking 
relief.\7\ Between June 28 and July 5, 2024, the petitioner provided 
clarifications and revised the scope.\8\ The description of merchandise 
covered by these investigations, as shown in the appendix to this 
notice, reflects these clarifications.
---------------------------------------------------------------------------

    \7\ See General Issues Questionnaire; see also July 2 
Memorandum.
    \8\ See First General Issues Supplement at 1-2 and Exhibit I-S1-
3; and Second General Issues Supplement at 1-2.
---------------------------------------------------------------------------

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\9\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determinations. If scope comments include factual information, all such 
factual information should be limited to public information.\10\ To 
facilitate preparation of its questionnaires, Commerce requests that 
scope comments be submitted by 5:00 p.m. Eastern Time (ET) on July 30, 
2024, which is 20 calendar days from the signature date of this 
notice.\11\ Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on August 9, 2024, which is 
10 calendar days from the initial comment deadline.
---------------------------------------------------------------------------

    \9\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \11\ See 19 CFR 351.303(b)(1).
---------------------------------------------------------------------------

    Commerce requests that any factual information that parties 
consider relevant to the scope of the investigations be submitted 
during that time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigations may be relevant, the party must contact Commerce and 
request permission to

[[Page 58107]]

submit the additional information. All scope comments must be filed 
simultaneously on the records of the concurrent AD and CVD 
investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\12\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
---------------------------------------------------------------------------

    \12\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014), for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at https://access.trade.gov/help.aspx and a handbook 
can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
---------------------------------------------------------------------------

Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified the Governments of the receipt of the Petitions and provided 
an opportunity for consultations with respect to the Petitions.\13\ 
Commerce held consultations with the GOT on July 9, 2024.\14\ The GOC 
filed consultation remarks in lieu of consultations on July 8, 
2024.\15\
---------------------------------------------------------------------------

    \13\ See Commerce's Letters, ``Petition for the Imposition of 
Countervailing Duties on Imports of Certain Brake Drums from China: 
Invitation for Consultations,'' dated June 25, 2024; and 
``Countervailing Duty Petition on Certain Brake Drums from the 
Republic of T[uuml]rkiye,'' dated June 20, 2024.
    \14\ See Memorandum, ``Consultation with Officials from 
Government of T[uuml]rkiye,'' dated July 9, 2024.
    \15\ See GOC's Letter, ``Comments on Countervailing Duty 
Petition on Certain Brake Drums from the People's Republic of China 
(C-570-175),'' dated July 8, 2024.
---------------------------------------------------------------------------

Determination of Industry Support for the Petitions

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The U.S. International Trade Commission (ITC), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC apply the same statutory definition regarding the domestic like 
product,\16\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\17\
---------------------------------------------------------------------------

    \16\ See section 771(10) of the Act.
    \17\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd Algoma Steel Corp., Ltd. v. United 
States, 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigations.\18\ Based on our analysis of the information 
submitted on the record, we have determined that brake drums, as 
defined in the scope, constitute a single domestic like product, and we 
have analyzed industry support in terms of that domestic like 
product.\19\
---------------------------------------------------------------------------

    \18\ See Petitions at Volume I (pages I-9 through I-13 and 
Exhibits I-2 through I-4 and I-7); see also First General Issues 
Supplement at 4-7 and Exhibits I-SI-5 through I-S1-7); and Industry 
Support Supplement at 1.
    \19\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Checklists, ``Countervailing Duty Investigation Initiation 
Checklists: Certain Brake Drums from the People's Republic of China 
and the Republic of T[uuml]rkiye,'' dated concurrently with, and 
hereby adopted by, this notice (Country-Specific CVD Initiation 
Checklists), at Attachment II, Analysis of Industry Support for the 
Antidumping and Countervailing Duty Petitions Covering Certain Brake 
Drums from the People's Republic of China and the Republic of 
T[uuml]rkiye (Attachment II). These checklists are on file 
electronically via ACCESS.
---------------------------------------------------------------------------

    In determining whether the petitioner has standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the appendix to 
this notice. The petitioner estimated the 2023 production of the 
domestic like product for the only other known producer of brake drums 
in the United States.\20\ The petitioner compared its production to the 
estimated total 2023 production of the domestic like product for the 
entire domestic industry.\21\ We relied on data provided by the 
petitioner for purposes of measuring industry support.\22\
---------------------------------------------------------------------------

    \20\ See Petitions at Volume I (pages I-2 and I-3 and Exhibits 
I-1 and I-7); see also First General Issues Supplement at 2-3 and 
Exhibits I-S1-1 and I-S1-2.
    \21\ See Petitions at Volume I (pages I-2 and I-3 and Exhibit I-
1); see also First General Issues Supplement at 3 and Exhibit I-S1-
2.
    \22\ See Petition at Volume I (pages I-2 and I-3 and Exhibits I-
1 and I-7); see also First General Issues Supplement at 2-4 and 
Exhibits I-S1-1, I-S1-2, and I-S4; and Industry Support Supplement 
at 1-3. For further discussion, see Attachment II of the Country-
Specific CVD Initiation Checklists.
---------------------------------------------------------------------------

    Our review of the data provided in the Petitions, the First General 
Issues Supplement, the Industry Support Supplement, and other 
information readily available to Commerce indicates that the petitioner 
has established industry support for the Petitions.\23\ First, the 
Petitions established support from domestic producers (or workers) 
accounting for more than 50 percent of the total production of the 
domestic like product and, as such, Commerce is not required to take 
further action to evaluate industry support (e.g., polling).\24\ 
Second, the domestic producers (or workers) have met the statutory 
criteria for industry support under section 702(c)(4)(A)(i) of the Act 
because the domestic producers (or workers) who support the Petitions 
account for at least 25 percent of the total production of the domestic 
like

[[Page 58108]]

product.\25\ Finally, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 702(c)(4)(A)(ii) 
of the Act because the domestic producers (or workers) who support the 
Petitions account for more than 50 percent of the production of the 
domestic like product produced by that portion of the industry 
expressing support for, or opposition to, the Petitions.\26\ 
Accordingly, Commerce determines that the Petitions were filed on 
behalf of the domestic industry within the meaning of section 702(b)(1) 
of the Act.\27\
---------------------------------------------------------------------------

    \23\ See Attachment II of the Country-Specific CVD Initiation 
Checklists.
    \24\ Id.; see also section 702(c)(4)(D) of the Act.
    \25\ See Attachment II of the Country-Specific CVD Initiation 
Checklists.
    \26\ Id.
    \27\ Id.
---------------------------------------------------------------------------

Injury Test

    Because China and T[uuml]rkiye are ``Subsidies Agreement 
Countries'' within the meaning of section 701(b) of the Act, section 
701(a)(2) of the Act applies to these investigations. Accordingly, the 
ITC must determine whether imports of the subject merchandise from 
China and/or T[uuml]rkiye materially injure, or threaten material 
injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that imports of the subject merchandise are 
benefiting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioner 
alleges that subject imports from China and T[uuml]rkiye individually 
exceed the negligibility threshold provided for under section 
771(24)(A) of the Act.\28\
---------------------------------------------------------------------------

    \28\ See Petitions at Volume I (pages I-13 and I-14 and Exhibit 
I-8).
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by the significant and increasing volume of subject 
imports; decreased market share; underselling and price depression and/
or suppression; lost sales and revenues; decline in capacity 
utilization, production, and U.S. sales quantity; decline in 
production-related workers; and decline in operating margins.\29\ We 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, causation, cumulation, as well as 
negligibility, and we have determined that these allegations are 
properly supported by adequate evidence and meet the statutory 
requirements for initiation.\30\
---------------------------------------------------------------------------

    \29\ Id. at I-13 through I-36 and Exhibits I-7 through I-25; see 
also First General Issues Supplement at 7 and Exhibits I-S1-8 and I-
S1-9.
    \30\ See Country-Specific CVD Initiation Checklists at 
Attachment III, Analysis of Allegations and Evidence of Material 
Injury and Causation for the Antidumping and Countervailing Duty 
Petitions Covering Certain Brake Drums from the People's Republic of 
China and the Republic of T[uuml]rkiye.
---------------------------------------------------------------------------

Initiation of CVD Investigations

    Based upon our examination of the Petitions and supplemental 
responses, we find that they meet the requirements of section 702 of 
the Act. Therefore, we are initiating CVD investigations to determine 
whether imports of brake drums from China and T[uuml]rkiye benefit from 
countervailable subsidies conferred by the GOC and the GOT, 
respectively. In accordance with section 703(b)(1) of the Act and 19 
CFR 351.205(b)(1), unless postponed, we will make our preliminary 
determinations no later than 65 days after the date of these 
initiations.

China

    Based on our review of the Petitions, we find that there is 
sufficient information to initiate a CVD investigation on 17 of the 18 
programs alleged by the petitioner. For a full discussion of the basis 
of our initiation decision for each program, see the China CVD 
Initiation Checklist. A public version of the initiation checklist for 
this investigation is available on ACCESS.

T[uuml]rkiye

    Based on our review of the Petitions, we find that there is 
sufficient information to initiate a CVD investigation on 44 of the 47 
of the programs alleged by the petitioner. For a full discussion of the 
basis of our initiation decision for each program, see the T[uuml]rkiye 
CVD Initiation Checklist. A public version of the initiation checklist 
for this investigation is available on ACCESS.

Respondent Selection

    In the Petitions, the petitioner identified 54 companies in China, 
and 19 companies in T[uuml]rkiye, as producers or exporters of brake 
drums.\31\ Commerce intends to follow its standard practice in CVD 
investigations and calculate company-specific subsidy rates in these 
investigations.
---------------------------------------------------------------------------

    \31\ See Petitions at Volume I (Exhibit I-5).
---------------------------------------------------------------------------

    In the event that Commerce determines that the number of companies 
is large and it cannot individually examine each company based on 
Commerce's resources, Commerce normally selects mandatory respondents 
in CVD investigations using U.S. Customs and Border Protection (CBP) 
entry data for U.S. imports under the appropriate Harmonized Tariff 
Schedule of the United States (HTSUS) subheading(s) listed in the 
``Scope of the Investigations'' in the appendix. However, for these 
investigations, the main HTSUS subheading under which the subject 
merchandise would enter (8708.30.5020) is a basket category under which 
non-subject merchandise may also enter. Therefore, we cannot rely on 
CBP entry data in selecting respondents. Notwithstanding the decision 
to rely on Q&V questionnaires for respondent selection, due to the 
number of producers and/or exporters identified in the Petitions, 
Commerce has determined to limit the number of Q&V questionnaires that 
it will issue to producers and/or exporters based on CBP data for brake 
drums from China and T[uuml]rkiye during the POI under the appropriate 
HTSUS subheading listed in the ``Scope of the Investigations,'' in the 
appendix. Accordingly, for China and T[uuml]rkiye, Commerce will send 
Q&V questionnaires to the largest producers and/or exporters that are 
identified in the CBP entry data for which there is complete address 
information on the record.
    Commerce will also post the Q&V questionnaires along with filing 
instructions on Commerce's website at https://www.trade.gov/ec-adcvd-case-announcements. Exporters/producers of brake drums from China and 
T[uuml]rkiye that do not receive Q&V questionnaires may still submit a 
response to the Q&V questionnaire and can obtain a copy of the Q&V 
questionnaire from Commerce's website. Responses to the Q&V 
questionnaire must be submitted by the relevant producers/exporters no 
later than 5:00 p.m. on July 24, 2024, which is two weeks from the 
signature date of this notice. An electronically filed document must be 
received successfully, in its entirety, by ACCESS no later than 5:00 
p.m. ET on the deadline noted above. Commerce intends to finalize its 
decision regarding respondent selection within 20 days of publication 
of this notice.

Distribution of Copies of the Petitions

    In accordance with section 702(b)(4)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petitions has been 
provided to the GOC and GOT via ACCESS. To the extent practicable, we 
will attempt to provide a copy of the public version of the Petitions 
to each exporter named in the Petitions, as provided under 19 CFR 
351.203(c)(2).

[[Page 58109]]

ITC Notification

    Commerce will notify the ITC of its initiation, as required by 
section 702(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of brake drums from China and/or T[uuml]rkiye 
are materially injuring, or threatening material injury to, a U.S. 
industry.\32\ A negative ITC determination for any country will result 
in the investigation being terminated with respect to that country.\33\ 
Otherwise, these CVD investigations will proceed according to statutory 
and regulatory time limits.
---------------------------------------------------------------------------

    \32\ See section 703(a)(1) of the Act.
    \33\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors of production under 19 CFR 351.408(c) or 
to measure the adequacy of remuneration under 19 CFR 351.511(a)(2); 
(iv) evidence placed on the record by Commerce; and (v) evidence other 
than factual information described in (i)-(iv). Section 351.301(b) of 
Commerce's regulations requires any party, when submitting factual 
information, to specify under which subsection of 19 CFR 351.102(b)(21) 
the information is being submitted \34\ and, if the information is 
submitted to rebut, clarify, or correct factual information already on 
the record, to provide an explanation identifying the information 
already on the record that the factual information seeks to rebut, 
clarify, or correct.\35\ Time limits for the submission of factual 
information are addressed in 19 CFR 351.301, which provides specific 
time limits based on the type of factual information being submitted. 
Interested parties should review the regulations prior to submitting 
factual information in these investigations.
---------------------------------------------------------------------------

    \34\ See 19 CFR 351.301(b).
    \35\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301, or as otherwise specified by 
Commerce.\36\ For submissions that are due from multiple parties 
simultaneously, an extension request will be considered untimely if it 
is filed after 10:00 a.m. ET on the due date. Under certain 
circumstances, Commerce may elect to specify a different time limit by 
which extension requests will be considered untimely for submissions 
which are due from multiple parties simultaneously. In such a case, we 
will inform parties in a letter or memorandum of the deadline 
(including a specified time) by which extension requests must be filed 
to be considered timely. An extension request must be made in a 
separate, standalone submission; under limited circumstances we will 
grant untimely filed requests for the extension of time limits, where 
we determine, based on 19 CFR 351.302, that extraordinary circumstances 
exist. Parties should review Commerce's regulations concerning the 
extension of time limits and the Time Limits Final Rule prior to 
submitting factual information in these investigations.\37\
---------------------------------------------------------------------------

    \36\ See 19 CFR 351.302.
    \37\ See 19 CFR 351.301; see also Extension of Time Limits; 
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final 
Rule), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
---------------------------------------------------------------------------

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\38\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\39\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \38\ See section 782(b) of the Act.
    \39\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at 
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Parties wishing to participate 
in these investigations should ensure that they meet the requirements 
of 19 CFR 351.103(d) (e.g., by filing the required letters of 
appearance). Note that Commerce has amended certain of its requirements 
pertaining to the service of documents in 19 CFR 351.303(f).\40\
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    \40\ See Administrative Protective Order, Service, and Other 
Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 
67069 (September 29, 2023).
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    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act, and 19 CFR 351.203(c).

    Dated: July 10, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigations

    The merchandise covered by these investigations is certain brake 
drums made of gray cast iron, whether finished or unfinished, with 
an actual or nominal inside diameter of 14.75 inches or more but not 
over 16.6 inches, weighing more than 50 pounds. Unfinished brake 
drums are those which have undergone some turning or machining but 
are not ready for installation. Subject brake drums are included 
within the scope whether imported individually or with non-subject 
merchandise (for example, a hub), whether assembled or unassembled, 
or if joined with non-subject merchandise. When a subject drum is 
imported together with non-subject merchandise, such as, but not 
limited to, a drum-hub assembly, only the subject drum is covered by 
the scope.
    Subject merchandise also includes finished and unfinished brake 
drums that are further processed in a third country or in the United 
States, including, but not limited to, assembly or any other 
processing that would not otherwise remove the merchandise from the 
scope of these investigations if performed in the country of 
manufacture of the subject brake drums. The inclusion, attachment, 
joining, or assembly of non-subject merchandise with subject drums 
either in the country of manufacture of the subject drum or in a 
third country does not remove the subject drum from the scope. 
Specifically excluded is merchandise covered by the scope of the 
antidumping and countervailing duty orders on certain chassis and 
subassemblies thereof from the People's Republic of China. See 
Certain Chassis and Subassemblies Thereof from the People's Republic 
of China: Antidumping Duty Order, 86 FR 36093 (July 8, 2021) and 
Certain Chassis and Subassemblies Thereof From the People's Republic 
of China: Countervailing Duty Order and Amended Final Affirmative 
Countervailing Duty Determination, 86 FR 24844 (May 10, 2021).
    The scope also excludes composite brake drums that contain more 
than 40 percent steel by weight.
    The merchandise covered by these investigations is classifiable 
under Harmonized Tariff Schedule of the United States (HTSUS) 
subheading 8708.30.5020. The merchandise covered by these 
investigations may be classifiable under HTSUS subheading 
8708.30.5090 when entered as part of an assembly. Subject 
merchandise may also enter under HTSUS

[[Page 58110]]

subheading 8716.90.5060. Although the HTSUS subheadings are provided 
for convenience and customs purposes, the written description of the 
merchandise covered by these investigations is dispositive.

[FR Doc. 2024-15713 Filed 7-16-24; 8:45 am]
BILLING CODE 3510-DS-P

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