Certain Brake Drums From the People's Republic of China and the Republic of Türkiye: Initiation of Less-Than-Fair-Value Investigations, 58116-58122 [2024-15714]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 89, Number 137 (Wednesday, July 17, 2024)]
[Notices]
[Pages 58116-58122]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15714]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-174, A-489-853]


Certain Brake Drums From the People's Republic of China and the 
Republic of T[uuml]rkiye: Initiation of Less-Than-Fair-Value 
Investigations

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

DATES: Applicable July 10, 2024.

FOR FURTHER INFORMATION CONTACT: Samuel Frost (the People's Republic of 
China (China)) at (202) 482-8180 and Eric Hawkins (the Republic of 
T[uuml]rkiye (T[uuml]rkiye)) at (202) 482-1988, AD/CVD Operations, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230.

SUPPLEMENTARY INFORMATION:

The Petitions

    On June 20, 2024, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) 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 Petitions were accompanied by 
countervailing duty (CVD) petitions concerning imports of brake drums 
from China and T[uuml]rkiye.\2\
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    \1\ See Petitioner's Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties,'' dated June 20, 2024 (the 
Petitions).
    \2\ Id.
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    Between June 24 and July 5, 2024, Commerce requested supplemental 
information pertaining to certain aspects of the Petitions in 
supplemental questionnaires.\3\ The petitioner responded to Commerce's 
supplemental questionnaires between June 28 and July 8, 2024.\4\
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    \3\ See Commerce's Letters, ``Supplemental Questions,'' dated 
June 24, 2024 (General Issues Questionnaire), Country-Specific 
Supplemental Questionnaires: China Supplemental and T[uuml]rkiye 
Supplemental, dated June 24, 2024, and ``Supplemental Questions,'' 
dated July 5, 2024; see also Memoranda, ``Phone Call with Counsel to 
the Petitioner,'' dated July 2, 2024 (July 2 Memorandum).
    \4\ See Petitioner's Letters, ``Supplemental Questionnaire 
Response, Volume I,'' dated June 28, 2024 (First General Issues 
Supplement); Country-Specific AD Supplemental Responses, dated Jun 
28, 2024; ``Supplemental Questionnaire Response, Volume I,'' dated 
July 5, 2024 (Second General Issues Supplement); ``Supplemental 
Questionnaire Response,'' dated July 5, 2024; and ``Supplemental 
Questionnaire Response, Volume I,'' dated July 8, 2024 (Third 
General Issues Supplement).
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of brake drums 
from China and T[uuml]rkiye are being, or are likely to be, sold in the 
United States at less than fair value (LTFV) within the meaning of 
section 731 of the Act, and that imports of such products are 
materially injuring, or threatening material injury to, the brake drums 
industry in the United States. Consistent with section 732(b)(1) of the 
Act, 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.

[[Page 58117]]

Commerce also finds that the petitioner demonstrated sufficient 
industry support for the initiation of the requested LTFV 
investigations.\5\
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    \5\ See section on ``Determination of Industry Support for the 
Petitions,'' infra.
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Periods of Investigation

    Because the Petitions were filed on June 20, 2024, pursuant to 19 
CFR 351.204(b)(1), the period of investigation (POI) for the LTFV 
investigation from T[uuml]rkiye is April 1, 2023, through March 31, 
2024. Because China is a non-market economy (NME) country, pursuant to 
19 CFR 351.204(b)(1), the POI for the LTFV investigation from China is 
October 1, 2023, through March 31, 2024.

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.\6\ Between June 28 and July 5, 2024, the petitioner provided 
clarifications and revised the scope.\7\ The description of merchandise 
covered by these investigations, as described in the appendix to this 
notice, reflects these clarifications.
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    \6\ See First General Issues Questionnaire; see also July 2 
Memorandum.
    \7\ See First General Issues Supplement at 1-2 and Exhibit I-S1-
3; see also Second General Issues Supplement at 1-2.
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    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\8\ Commerce will consider all scope 
comments received from interested parties and, if necessary, will 
consult with interested parties prior to the issuance of the 
preliminary determinations. If scope comments include factual 
information,\9\ all such factual information should be limited to 
public information. To facilitate preparation of its questionnaires, 
Commerce requests that 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.\10\ Any rebuttal comments, which may 
include factual information, and should also be limited to public 
information, must be filed by 5:00 p.m. ET on August 9, 2024, which is 
10 calendar days from the initial comment deadline.
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    \8\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble); see also 19 CFR 
351.312.
    \9\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \10\ See 19 CFR 351.303(b)(1).
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    Commerce requests that any factual information that parties 
consider relevant to the scope of these investigations be submitted 
during that 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 submit the additional information. All scope 
comments must be filed simultaneously on the records of the concurrent 
LTFV 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.\11\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due.
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    \11\ 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.
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Comments on Product Characteristics

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of brake drums to be 
reported in response to Commerce's AD questionnaires. This information 
will be used to identify the key physical characteristics of the 
subject merchandise in order to report the relevant factors of 
production (FOP) or cost of production (COP) accurately, as well as to 
develop appropriate product comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) general product 
characteristics; and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe brake drums, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, Commerce attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on July 30, 
2024, which is 20 calendar days from the signature date of this 
notice.\12\ Any rebuttal comments must be filed by 5:00 p.m. ET on 
August 9, 2024, which is 10 calendar days from the initial comment 
deadline. All comments and submissions to Commerce must be filed 
electronically using ACCESS, as explained above, on the record of each 
of the LTFV investigations.
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    \12\ See 19 CFR 351.303(b)(1).
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Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a

[[Page 58118]]

whole of a domestic like product. Thus, to determine whether a petition 
has the requisite industry support, the statute directs Commerce to 
look to producers and workers who produce the domestic like product. 
The U.S. International Trade Commission (ITC), which is responsible for 
determining whether ``the domestic industry'' has been injured, must 
also determine what constitutes a domestic like product in order to 
define the industry. While both Commerce and the ITC must apply the 
same statutory definition regarding the domestic like product,\13\ 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.\14\
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    \13\ See section 771(10) of the Act.
    \14\ 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)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petitions).
    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.\15\ 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.\16\
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    \15\ 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 Third 
General Issues Supplement at 1-3.
    \16\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see 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 AD 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.
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    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
production of the domestic like product in 2023.\17\ The petitioner 
estimated the 2023 production of the domestic like product for the only 
other known producer of brake drums in the United States.\18\ The 
petitioner compared its production to the estimated total 2023 
production of the domestic like product for the entire domestic 
industry.\19\ We relied on data provided by the petitioner for purposes 
of measuring industry support.\20\
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    \17\ See Petitions at Volume I (pages I-2 and I-3 and Exhibit I-
1); see also First General Issues Supplement at 2-3 and Exhibit I-
S1-2.
    \18\ 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.
    \19\ 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.
    \20\ 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 Third General Issues 
Supplement at 1-3. For further discussion, see Attachment II of the 
Country-Specific AD Initiation Checklists.
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    Our review of the data provided in the Petitions, the First General 
Issues Supplement, the Third General Issues Supplement, and other 
information readily available to Commerce indicates that the petitioner 
has established industry support for the Petitions.\21\ First, the 
Petitions established support from domestic producers (or workers) 
accounting for more than 50 percent of the total production of the 
domestic like product and, as such, Commerce is not required to take 
further action in order to evaluate industry support (e.g., 
polling).\22\ Second, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 732(c)(4)(A)(i) 
of the Act because the domestic producers (or workers) who support the 
Petitions account for at least 25 percent of the total production of 
the domestic like product.\23\ Finally, the domestic producers (or 
workers) have met the statutory criteria for industry support under 
section 732(c)(4)(A)(ii) of the Act because the domestic producers (or 
workers) who support the Petitions account for more than 50 percent of 
the production of the domestic like product produced by that portion of 
the industry expressing support for, or opposition to, the 
Petitions.\24\ Accordingly, Commerce determines that the Petitions were 
filed on behalf of the domestic industry within the meaning of section 
732(b)(1) of the Act.\25\
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    \21\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
    \22\ Id.; see also section 732(c)(4)(D) of the Act.
    \23\ See Attachment II of the Country-Specific AD Initiation 
Checklists.
    \24\ Id.
    \25\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at LTFV. In addition, the petitioner argues that 
subject imports from China and T[uuml]rkiye individually exceed the 
negligibility threshold provided for under section 771(24)(A) of the 
Act.\26\
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    \26\ See Petitions at Volume I (pages I-13 and I-14 and Exhibit 
I-8).
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    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.\27\ We 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, causation, as well as negligibility, 
and we have determined that these allegations are properly supported by 
adequate evidence, and meet the statutory requirements for 
initiation.\28\
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    \27\ 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.
    \28\ See Country-Specific AD Initiation Checklists at Attachment 
III, Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Certain Brake Drums from the People's Republic of China and 
the Republic of T[uuml]rkiye.
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Allegations of Sales at LTFV

    The following is a description of the allegations of sales at LTFV 
upon which Commerce based its decision to initiate an LTFV 
investigation of imports of brake drums from China and T[uuml]rkiye. 
The sources of data for the deductions and adjustments relating to U.S. 
price and normal value (NV) are discussed in greater detail in the 
Country-Specific AD Initiation Checklists.

U.S. Price

    For China and T[uuml]rkiye, the petitioner based export price (EP) 
on pricing information for brake drums produced

[[Page 58119]]

in and exported from the respective countries and sold, or offered for 
sale, in the United States.\29\ For each country, the petitioner made 
certain adjustments to U.S. price to calculate a net ex-factory U.S. 
price, where applicable.\30\
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    \29\ See Country-Specific AD Initiation Checklists.
    \30\ Id.
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Normal Value 31
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    \31\ In accordance with section 773(b)(2) of the Act, for the 
T[uuml]rkiye investigation, Commerce will request information 
necessary to calculate the constructed value (CV) and COP to 
determine whether there are reasonable grounds to believe or suspect 
that sales of the foreign like product have been made at prices that 
represent less than the COP of the product.
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    For T[uuml]rkiye, the petitioner based NV on a home market price 
obtained for brake drums produced in and sold, or offered for sale, in 
T[uuml]rkiye during the applicable time period.\32\ The petitioner made 
certain adjustments to the home market price to calculate a net ex-
factory home market price, where applicable.\33\
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    \32\ See T[uuml]rkiye AD Initiation Checklist.
    \33\ Id.
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    Commerce considers China to be an NME country.\34\ In accordance 
with section 771(18)(C)(i) of the Act, any determination that a foreign 
country is an NME country shall remain in effect until revoked by 
Commerce. Therefore, we continue to treat China as an NME country for 
purposes of the initiation of the China LTFV investigation. 
Accordingly, we base NV on FOPs valued in a surrogate market economy 
country in accordance with section 773(c) of the Act.
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    \34\ See, e.g., 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), and accompanying Preliminary Decision Memorandum 
at 5, unchanged in Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China: Final Affirmative Determination 
of Sales at Less-Than-Fair Value and Final Affirmative Determination 
of Critical Circumstances, 88 FR 34485 (May 30, 2023).
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    The petitioner claims that Malaysia is an appropriate surrogate 
country for China because it is a market economy that is at a level of 
economic development comparable to that of China and is a significant 
producer of comparable merchandise.\35\ The petitioner provided 
publicly available information from Malaysia to value all FOPs except 
labor.\36\ Consistent with Commerce's recent practice in cases 
involving Malaysia as a surrogate country,\37\ to value labor, the 
petitioner provided labor statistics from another surrogate country, 
Romania.\38\ Based on the information provided by the petitioner, we 
believe it is appropriate to use Malaysia as a surrogate country for 
China to value all FOPs except labor and to value labor using labor 
statistics from Romania for initiation purposes.
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    \35\ See China AD Initiation Checklist.
    \36\ Id.
    \37\ See, e.g., Certain Collated Steel Staples from the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review; and Final Determination of No Shipments; 2021-2022, 88 FR 
85242 (December 7, 2023), and accompanying Issues and Decision 
Memorandum (IDM) at Comment 2; and Light-Walled Rectangular Pipe and 
Tube from the People's Republic of China: Final Results of 
Antidumping Duty Administrative Review, 88 FR 15671 (March 14, 
2023), and accompanying IDM at Comment 2.
    \38\ See China AD Initiation Checklist.
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    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    Because information regarding the volume of inputs consumed by 
Chinese producers/exporters was not reasonably available, the 
petitioner used its own product-specific consumption rates as a 
surrogate to value Chinese manufacturers' FOPs.\39\ Additionally, the 
petitioner calculated factory overhead, selling, general, and 
administrative expenses, and profit based on the experience of a 
Malaysian producer of comparable merchandise.\40\
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    \39\ Id.
    \40\ Id.
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Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of brake drums from China and T[uuml]rkiye are 
being, or are likely to be, sold in the United States at LTFV. Based on 
comparisons of EP to NV in accordance with sections 772 and 773 of the 
Act, the estimated dumping margins for the countries covered by this 
initiation are as follows: (1) China--160.79 percent ad valorem and (2) 
T[uuml]rkiye--149.29 percent ad valorem.\41\
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    \41\ See Country-Specific AD Initiation Checklists.
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Initiation of LTFV Investigations

    Based upon the examination of the Petitions and supplemental 
questionnaire responses, we find that they meet the requirements of 
section 732 of the Act. Therefore, we are initiating LTFV 
investigations to determine whether imports of brake drums from China 
and T[uuml]rkiye are being, or are likely to be, sold in the United 
States at LTFV. In accordance with section 733(b)(1)(A) of the Act and 
19 CFR 351.205(b)(1), unless postponed, we will make our preliminary 
determinations no later than 140 days after the date of these 
initiations.

Respondent Selection

T[uuml]rkiye

    In the Petition, the petitioner named 19 companies in T[uuml]rkiye 
as producers and/or exporters of brake drums.\42\ In the event Commerce 
determines that the number of companies is large, and it cannot 
individually examine each company based upon Commerce's resources, 
where appropriate, Commerce intends to select mandatory respondents 
based on quantity and value (Q&V) questionnaires issued to potential 
respondents. Following standard practice in AD investigations involving 
market economy countries, Commerce would normally select respondents 
based on U.S. Customs and Border Protection (CBP) entry data for 
imports under the appropriate Harmonized Tariff Schedule of the United 
States (HTSUS) subheadings listed in the scope of the investigations. 
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 T[uuml]rkiye during 
the POI under the appropriate HTSUS subheading listed in the ``Scope of 
the Investigations,'' in the appendix. Accordingly, for 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.\43\
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    \42\ See Petitions at Volume I (page I-7 and Exhibit I-5).
    \43\ See Memorandum, ``Release of U.S. Customs and Border 
Protection Entry Data,'' dated July 8, 2024.
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    Commerce will 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 
T[uuml]rkiye that do not receive Q&V questionnaires by mail may still 
submit a response to the Q&V questionnaire and can obtain a copy of the 
Q&V questionnaire from Commerce's website noted above.

[[Page 58120]]

Responses to the Q&V questionnaire must be submitted by the relevant 
exporters/producers no later than 5:00 p.m. ET on July 24, 2024, which 
is two weeks from the signature date of this notice. All Q&V responses 
must be filed electronically via ACCESS. An electronically filed 
document must be received successfully, in its entirety, by ACCESS no 
later than 5:00 p.m. ET on the deadline noted above.
    Interested parties must submit applications for disclosure under 
administrative protective order (APO) in accordance with 19 CFR 
351.305(b). Instructions for filings such applications may be found on 
Commerce's website at https://www.trade.gov/administrative-protective-orders.

China

    In the Petitions, the petitioner named 54 companies in China as 
producers and/or exporters of brake drums.\44\ Our standard practice 
for respondent selection in AD investigations involving NME countries 
is to select respondents based on Q&V questionnaires in cases where 
Commerce has determined that the number of companies is large, and it 
cannot individually examine each company based upon its resources. 
Therefore, considering the number of producers and/or exporters 
identified in the Petitions, Commerce will solicit Q&V information that 
can serve as a basis for selecting exporters for individual examination 
in the event that Commerce determines that the number is large and 
decides to limit the number of respondents individually examined 
pursuant to section 777A(c)(2) of the Act. Because there are 54 Chinese 
producers and/or exporters identified in the Petitions, Commerce has 
determined that it will issue 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.\45\
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    \44\ See Petitions at Volume I (page I-7 and Exhibit I-5).
    \45\ See Memorandum, ``Release of U.S. Customs and Border 
Protection Entry Data,'' dated July 8, 2024.
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    Commerce will post the Q&V questionnaires along with filing 
instructions on Commerce's website at https://www.trade.gov/ec-adcvd-case-announcements. Producers/exporters of brake drums from China 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 noted above. Responses to the Q&V questionnaire must 
be submitted by the relevant Chinese producers/exporters no later than 
5:00 p.m. ET on July 24, 2024, which is two weeks from the signature 
date of this notice. All Q&V questionnaire responses must be filed 
electronically via ACCESS. An electronically filed document must be 
received successfully, in its entirety, by ACCESS no later than 5:00 
p.m. ET on the deadline noted above.
    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). As stated above, instructions 
for filing such applications may be found on Commerce's website at 
https://www.trade.gov/administrative-protective-orders.

Separate Rates

    In order to obtain separate rate status in an NME investigation, 
exporters and producers must submit a separate rate application. The 
specific requirements for submitting a separate rate application in an 
NME investigation are outlined in detail in the application itself, 
which is available on Commerce's website at https://access.trade.gov/Resources/nme/nme-sep-rate.html. The separate rate application will be 
due 30 days after publication of this initiation notice. Exporters and 
producers must file a timely separate rate application if they want to 
be considered for individual examination. Exporters and producers who 
submit a separate rate application and have been selected as mandatory 
respondents will be eligible for consideration for separate rate status 
only if they respond to all parts of Commerce's AD questionnaire as 
mandatory respondents. Commerce requires that companies from China 
submit a response both to the Q&V questionnaire and to the separate 
rate application by the respective deadlines to receive consideration 
for separate rate status. Companies not filing a timely Q&V 
questionnaire response will not receive separate rate consideration.

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that {Commerce{time}  will now 
assign in its NME investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the {weighted 
average{time}  of the individually calculated rates. This practice 
is referred to as the application of ``combination rates'' because 
such rates apply to specific combinations of exporters and one or 
more producers. The cash-deposit rate assigned to an exporter will 
apply only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\46\
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    \46\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigation involving NME Countries,'' (April 
5, 2005), at 6 (emphasis added), available on Commerce's website at 
https://access.trade.gov/Resources/policy/bull05-1.pdf.
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Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the Governments of China and T[uuml]rkiye 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).

ITC Notification

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

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of brake drums from China and/or T[uuml]rkiye 
are materially injuring, or threatening material injury to, a U.S. 
industry.\47\ A negative ITC determination for any country will result 
in the investigation being terminated with respect to that country.\48\ 
Otherwise, these LTFV investigations will proceed according to 
statutory and regulatory time limits.
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    \47\ See section 733(a) of the Act.
    \48\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the

[[Page 58121]]

information is being submitted \49\ 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.\50\ 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 this investigation.
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    \49\ See 19 CFR 351.301(b).
    \50\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation

    Section 773(e) of the Act addresses the concept of particular 
market situation (PMS) for purposes of CV, stating that ``if a 
particular market situation exists such that the cost of materials and 
fabrication or other processing of any kind does not accurately reflect 
the cost of production in the ordinary course of trade, the 
administering authority may use another calculation methodology under 
this subtitle or any other calculation methodology.'' When an 
interested party submits a PMS allegation pursuant to section 773(e) of 
the Act (i.e., a cost-based PMS allegation), the submission must be 
filed in accordance with the requirements of 19 CFR 351.416(b), and 
Commerce will respond to such a submission consistent with 19 CFR 
351.301(c)(2)(v). If Commerce finds that a cost-based PMS exists under 
section 773(e) of the Act, then it will modify its dumping calculations 
appropriately.
    Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), 
sets a deadline for the submission of cost-based PMS allegations and 
supporting factual information. However, in order to administer section 
773(e) of the Act, Commerce must receive PMS allegations and supporting 
factual information with enough time to consider the submission. Thus, 
should an interested party wish to submit a cost-based PMS allegation 
and supporting new factual information pursuant to section 773(e) of 
the Act, it must do so no later than 20 days after submission of a 
respondent's initial section D questionnaire response.
    We note that a PMS allegation filed pursuant to sections 
773(a)(1)(B)(ii)(III) or 773(a)(1)(C)(iii) of the Act (i.e., a sales-
based PMS allegation) must be filed within 10 days of submission of a 
respondent's initial section B questionnaire response, in accordance 
with 19 CFR 351.301(c)(2)(i) and 19 CFR 351.404(c)(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.\51\ 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.\52\
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    \51\ 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.
    \52\ See 19 CFR 351.302; see also, e.g., Time Limits Final Rule.
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Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\53\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\54\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \53\ See section 782(b) of the Act.
    \54\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Additional 
information regarding the Final Rule is available at https://access.trade.gov/Resources/filing/.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. Parties wishing to participate 
in this investigation should ensure that they meet the requirements of 
19 CFR 351.103(d) (e.g., by filing the required letter of appearance). 
Note that Commerce has amended certain of its requirements pertaining 
to the service of documents in 19 CFR 351.303(f).\55\
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    \55\ 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 732(c)(2) 
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).

[[Page 58122]]

    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 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. 2024-15714 Filed 7-16-24; 8:45 am]
BILLING CODE 3510-DS-P