Certain Low Speed Personal Transportation Vehicles From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Determination of Critical Circumstances, in Part, and Alignment of Final Determination With Final Antidumping Duty Determination, 96942-96945 [2024-28697]

Download as PDF 96942 Federal Register / Vol. 89, No. 235 / Friday, December 6, 2024 / Notices period to a period not greater than six months. Accordingly, Commerce will make its final determination no later than 135 days after the date of publication of this preliminary determination. DEPARTMENT OF COMMERCE International Trade Administration [C–570–177] U.S. International Trade Commission (ITC) Notification In accordance with section 733(f) of the Act, Commerce will notify the ITC of its preliminary determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether these imports are materially injuring, or threaten material injury to, the U.S. industry. Notification to Interested Parties This determination is issued and published in accordance with sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c). Dated: November 29, 2024. Steven Presing, Acting Deputy Assistant Secretary for Policy and Negotiations. Appendix I Scope of the Investigation The scope of this investigation covers chrome cast iron grinding media in spherical (ball) or ovoid shape, with an alloy composition of seven percent or more (≥7 percent of total mass) chromium (Cr) content and produced through the casting method, with a nominal diameter of up to 127 millimeters (mm) and tolerance of plus or minus 10 mm. The products covered by the scope are currently classified under Harmonized Tariff Schedule of the United States (HTSUS) subheading 7325.91.0000. This HTSUS subheading is provided for convenience and U.S. Customs purposes only. The written description of the scope is dispositive. Appendix II lotter on DSK11XQN23PROD with NOTICES1 List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Period of Investigation IV. Affiliation and Single Entity Treatment V. Discussion of the Methodology VI. Currency Conversion VII. Recommendation [FR Doc. 2024–28694 Filed 12–5–24; 8:45 am] BILLING CODE 3510–DS–P VerDate Sep<11>2014 18:02 Dec 05, 2024 Jkt 265001 Certain Low Speed Personal Transportation Vehicles From the People’s Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Determination of Critical Circumstances, in Part, and Alignment of Final Determination With Final Antidumping Duty Determination Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain low speed personal transportation vehicles (LSPTVs) from the People’s Republic of China (China). The period of investigation (POI) is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination. DATES: Applicable December 6, 2024. FOR FURTHER INFORMATION CONTACT: Dan Alexander, AD/CVD Operations, Office VII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4313. SUPPLEMENTARY INFORMATION: AGENCY: Background This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this countervailing duty (CVD) investigation on July 16, 2024.1 On July 25, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven days.2 On September 10, 2024, Commerce postponed the preliminary determination until November 25, 2024.3 For a complete description of events that followed the initiation of this investigation, see the Preliminary 1 See Certain Low Speed Personal Transportation Vehicles from the People’s Republic of China: Initiation of Countervailing Duty Investigation, 89 FR 73371 (July 16, 2024) (Initiation Notice). 2 See Memorandum, ‘‘Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,’’ dated July 25, 2024. 3 See Certain Low Speed Personal Transportation Vehicles from the People’s Republic of China: Postponement of Preliminary Determination in the Countervailing Duty Investigation, 89 FR 73371 (September 10, 2024). PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 Decision Memorandum.4 A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https:// access.trade.gov. In addition, a complete version of the Preliminary Decision Memorandum can be accessed directly at https://access.trade.gov/public/ FRNoticesListLayout.aspx. Scope of the Investigation The products covered by this investigation are LSPTVs from China. For a complete description of the scope of this investigation, see Appendix I. Scope Comments In accordance with the Preamble to Commerce’s regulations,5 in the Initiation Notice Commerce set aside a period of time for parties to raise issues regarding product coverage (i.e., scope).6 Certain interested parties commented on the scope of the less-than-fair-value (LTFV) and CVD investigations as it appeared in the Initiation Notice. Commerce preliminary determined to modify the scope of this investigation to include one additional Harmonized Tariff Schedule of the United States Subheading (i.e. 8703.10.5060). See the scope in Appendix I to this notice. Additionally, Commerce is proposing certain modifications to the language of the scope of these LTFV and CVD investigations and invite interested parties to submit comments. For further discussion, see the Preliminary Scope Modification Memorandum.7 Methodology Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found to be countervailable, Commerce preliminarily determines 4 See Memorandum, ‘‘Decision Memorandum for the Preliminary Affirmative Determination of the Countervailing Duty Investigation of Certain Low Speed Personal Transportation Vehicles from the People’s Republic of China,’’ dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). 5 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble). 6 See Initiation Notice, 89 FR at 49834. 7 See Memorandum, ‘‘Less-Than-Fair-Value and Countervailing Duty Investigations of Certain Low Speed Personal Transportation Vehicles from the People’s Republic of China: Preliminary Scope Modification Memorandum,’’ dated concurrently with this notice (Preliminary Scope Modification Memorandum). E:\FR\FM\06DEN1.SGM 06DEN1 96943 Federal Register / Vol. 89, No. 235 / Friday, December 6, 2024 / Notices that there is a subsidy, i.e., a financial contribution by an ‘‘authority’’ that gives rise to a benefit to the recipient, and that the subsidy is specific.8 For a full description of the methodology underlying our preliminary determination, see the Preliminary Decision Memorandum. Commerce notes that, in making these findings, it relied, in part, on facts available, and, because it finds that certain respondents and the Government of China did not act to the best of their ability to respond to Commerce’s requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available.9 For further information, see the ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ section in the Preliminary Decision Memorandum. Preliminary Affirmative Determination of Critical Circumstances, in Part In accordance with section 703(e)(1) of the Act, we preliminarily find that critical circumstances exist with respect to imports of subject merchandise from Guangdong Lvtong New Energy Electric Vehicle Technology Co., Ltd. (Lvtong), and the companies who did not respond to our quantity and value (Q&V) questionnaire (i.e., the non-responsive companies).10 We also preliminarily find that critical circumstances do not exist with respect to imports of subject merchandise from Xiamen Dalle New Energy Automobile Co., Ltd (Xiamen Dalle) and all other producers and/or exporters. For a full discussion of our preliminary critical circumstances determination, see the ‘‘Preliminary Critical Circumstances’’ section of the Preliminary Decision Memorandum. Alignment In accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final CVD determination in this investigation with the final determination in the concurrent LTFV investigation of LSPTVs from China, based on a request made by the petitioner.11 Consequently, the final CVD determination will be issued on the same date as the final LTFV determination, which is currently scheduled to be issued no later than April 8, 2025, unless postponed.12 All-Others Rate Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. This rate shall be an amount equal to the weighted average of the estimated subsidy rates established for those companies individually examined, excluding any rates that are zero, de minimis, or based entirely under section 776 of the Act. In this investigation, Commerce preliminarily calculated total net subsidy rates for Xiamen Dalle and Lvtong that are not zero, de minimis, or based entirely on the facts otherwise available. Because Commerce calculated individual estimated countervailable subsidy rates for Xiamen Dalle and Lvtong that are not zero, de minimis, or based entirely on the facts otherwise available, we have preliminarily calculated the all-others rate using a simple-average of the individual subsidy rates calculated for the examined respondents (i.e., 22.04 percent).13 Rate for Non-Responsive Companies Two potential exporters and/or producers of LSPTVs from China did not respond to Commerce’s Q&V questionnaire.14 We find that, by not responding to the Q&V questionnaire, these companies withheld requested information and significantly impeded this proceeding. Thus, in reaching our preliminary determination, pursuant to sections 776(a)(2)(A) and (C) of the Act, we are basing the subsidy rate for the non-responsive companies on facts otherwise available. We further preliminarily determine that an adverse inference is warranted, pursuant to section 776(b) of the Act. By failing to submit responses to Commerce’s Q&V questionnaire, the non-responsive companies did not cooperate to the best of their ability in this investigation. Accordingly, we preliminarily find that an adverse inference is warranted to ensure that the non-responsive companies will not obtain a more favorable result than had they fully complied with our request for information. For more information on the application of adverse facts available to the non-responsive companies, see ‘‘Use of Facts Otherwise Available and Adverse Inferences’’ in the Preliminary Determination Memorandum. Preliminary Determination Commerce preliminarily determines that the following estimated countervailable subsidy rates exist: Subsidy rate (percent ad valorem) Company Guangdong Lvtong New Energy Electric Vehicle Technology Co., Ltd ............................................................................. Hebei Machinery Import and Export Co., LTD .................................................................................................................... Shandong Odes Industry Co. Ltd ........................................................................................................................................ Xiamen Dalle New Energy Automobile Co., Ltd ................................................................................................................. All Others ............................................................................................................................................................................. 22.84 * 515.37 * 515.37 21.23 22.04 * Rate based on facts available with adverse inferences. Disclosure lotter on DSK11XQN23PROD with NOTICES1 Commerce intends to disclose to interested parties its calculations and analysis performed in connection with this preliminary determination within 8 See sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity. 9 See sections 776(a) and (b) of the Act. 10 The companies that failed to respond to Commerce’s Q&V questionnaire are: (1) Shandong Odes Industry Co. Ltd.; and (2) Hebei Machinery Import and Export Co., Ltd. VerDate Sep<11>2014 18:02 Dec 05, 2024 Jkt 265001 five days of its public announcement or, if there is no public announcement, within five days of the date of publication of this notice in the Federal Register, accordance with 19 CFR 351.224(b). Consistent with 19 CFR 351.224(e), Commerce will analyze and, if appropriate, correct any timely 11 See Petitioner’s Letter, ‘‘Request to Align Countervailing Duty Investigation Final Determination with Antidumping Duty Investigation Final Determination,’’ dated November 12, 2024. 12 See Low Speed Personal Transportation Vehicles from the People’s Republic of China: Postponement of Preliminary Determination in the Less-Than-Fair Value Investigation, 89 FR 89591 (November 13, 2024) (LTFV Postponement). 13 See Memorandum, ‘‘Calculation of Subsidy Rate for All Others,’’ dated concurrently with this notice. 14 As noted above, these companies are: (1) Shandong Odes Industry Co. Ltd.; and (2) Hebei Machinery Import and Export Co., Ltd. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 E:\FR\FM\06DEN1.SGM 06DEN1 96944 Federal Register / Vol. 89, No. 235 / Friday, December 6, 2024 / Notices allegations of significant ministerial errors by amending the preliminary determination. However, consistent with 19 CFR 351.224(d), Commerce will not consider incomplete allegations that do not address the significance standard under 19 CFR 351.224(g) following the preliminary determination. Instead, Commerce will address such allegations in the final determination together with issues raised in the case briefs or other written comments. lotter on DSK11XQN23PROD with NOTICES1 Suspension of Liquidation With the exception of Lvtong and the non-responsive companies, in accordance with section 703(d)(1)(B) and (d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise, as described in the scope of the investigation, entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. Section 703(e)(2) of the Act provides that, given an affirmative determination of critical circumstances, any suspension of liquidation shall apply to unliquidated entries of merchandise entered, or withdrawn from warehouse, for consumption on or after the later of: (a) the date which is 90 days before the date on which the suspension of liquidation was first ordered; or (b) the date on which notice of initiation of the investigation was published. Commerce preliminarily finds that critical circumstances exist for imports of subject merchandise produced and/or exported by Lvtong and the nonresponsive companies (i.e., Shandong Odes Industry Co. Ltd. and Hebei Machinery Import and Export Co., Ltd.). In accordance with section 703(e)(2)(A) of the Act, the suspension of liquidation shall apply to unliquidated entries of merchandise from the exporters/ producers identified in this paragraph that were entered, or withdrawn from warehouse, for consumption on or after the date which is 90 days before the publication of this notice. Verification As provided in section 782(i)(1) of the Act, Commerce intends to verify the information relied upon in making its final determination. Public Comment As discussed above, Commerce is proposing certain modifications to the language of the scope of these LTFV and VerDate Sep<11>2014 18:02 Dec 05, 2024 Jkt 265001 CVD investigations and invites interested parties to submit comments. Commerce intends to issue our preliminary decision regarding the proposed scope modifications no later than January 23, 2025, the date of the preliminary determination in the companion LTFV investigation.15 All interested parties will have the opportunity to submit scope case and rebuttal briefs, and we will establish a briefing schedule to allow interested parties to comment on our preliminary scope decision at that time. For all scope case and rebuttal briefs, parties must file identical documents simultaneously on the records of the ongoing LTFV and CVD investigations of LSPTVs from China. No new factual information or business proprietary information may be included in either scope case or rebuttal briefs. Case briefs or other written comments regarding non-scope issues may be submitted to the Assistant Secretary for Enforcement and Compliance no later than seven days after the date on which the last verification report is issued in this investigation. Rebuttal briefs, limited to issues raised in the case briefs, may be filed not later than five days after the date for filing case briefs.16 Interested parties who submit case or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.17 As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior proceedings we have encouraged interested parties to provide an executive summary of their brief that should be limited to five pages total, including footnotes. In this investigation, we instead request that interested parties provide at the beginning of their briefs a public executive summary for each issue raised in their briefs.18 Further, we request that interested parties limit their public executive summary of each issue to no more than 450 words, not including citations. We intend to use the public executive summaries as the basis of the comment summaries included in the issues and decision memorandum that will accompany the final determination in this investigation. We request that 15 See LTFV Postponement. 19 CFR 351.309(d); see also Administrative Protective Order, Service, and Other Procedures in Antidumping and Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 2023) (APO and Service Final Rule). 17 See 19 CFR 351.309(c)(2) and (d)(2). 18 We use the term ‘‘issue’’ here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum. 16 See PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 interested parties include footnotes for relevant citations in the executive summary of each issue. Note that Commerce has amended certain of its requirements pertaining to the service of documents in 19 CFR 351.303(f).19 Pursuant to 19 CFR 351.310(c), interested parties who wish to request a hearing, limited to issues raised in the case and rebuttal briefs, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce via ACCESS within 30 days after the date of publication of this notice. Requests should contain (1) the party’s name, address, and telephone number; (2) the number of participants and whether any participant is a foreign national; and (3) a list of the issues to be discussed. Oral presentations at the hearing will be limited to issues raised in the briefs. If a request for a hearing is made, parties will be notified of the time and date for the hearing.20 Parties should confirm by telephone the date, time, and location of the hearing two days before the scheduled date. All submissions, including case and rebuttal briefs, as well as hearing requests, should be filed using ACCESS. An electronically-filed document must be received successfully in its entirety by ACCESS by 5:00 p.m. Eastern Time on the established deadline. U.S. International Trade Commission (ITC) Notification In accordance with section 703(f) of the Act, Commerce will notify the ITC of its determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of LSPTVs from China are materially injuring, or threaten material injury to, the U.S. industry. Notification to Interested Parties This determination is issued and published in accordance with sections 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c). Dated: November 25, 2024. Abdelali Elouaradia, Deputy Assistant Secretary for Enforcement and Compliance. Appendix I Scope of the Investigation The merchandise covered by this investigation consists of certain low speed personal transportation vehicles (LSPTV) and 19 See APO and Service Final Rule, 88 FR at 67069. 20 See 19 CFR 351.310(d). E:\FR\FM\06DEN1.SGM 06DEN1 lotter on DSK11XQN23PROD with NOTICES1 Federal Register / Vol. 89, No. 235 / Friday, December 6, 2024 / Notices subassemblies thereof, whether finished or unfinished and whether assembled or unassembled, with or without tires, wheels, seats, steering columns and steering wheels, canopies, roofs, or batteries. LSPTVs meeting this description are generally open-air vehicles with a minimum of four wheels, a steering wheel, a traditional side-by-side or in-line row seating arrangement (i.e., nonstraddle), foot operated accelerator and brake pedals, and a gross vehicle weight of no greater than 5,500 pounds. The main power source for subject LSPTVs is either an electric motor and battery (including but not limited to lithium-ion batteries, lithium phosphate batteries, lead acid batteries, and absorbed glass mat batteries) or a gaspowered internal combustion engine. Subject LSPTVs may be described as golf carts, golf cars, low speed vehicles, personal transportation vehicles, or light utility vehicles. LSPTVs subject to this investigation typically have a maximum top nameplate speed of no greater than 25 miles per hour as required by federal, state, and local laws and regulations. Subject LSPTVs with a maximum top nameplate speed greater than 20 miles per hour normally must comply with the U.S. Department of Transportation’s Federal Motor Vehicle Safety Standards for Low-Speed Vehicles set forth in 49 CFR 571.500. LSPTVs that otherwise meet the physical description of this scope but are not certified under 49 CFR 571.500 and are not certified under other sections of subpart B of the Federal Motor Vehicle Safety Standards (49 CFR part 571), are not excluded from this investigation. LSPTVs that are certified under both 49 CFR 571.500 and other sections of subpart B of the Federal Motor Vehicle Safety Standards remain subject to the scope of this investigation. Subject LSPTVs that have a maximum top nameplate speed of less than 25 miles per hour may be certified to the SAE International (SAE) standards SAE J2258 and SAE J2358. LSPTVs that have a maximum top nameplate speed of less than 20 miles per hour may also be certified to the Outdoor Power Equipment Institute (OPEI) standards OPEI Z130.1 and OPEI Z135. An unfinished and/or unassembled LSPTV subject to this investigation covers at a minimum a subassembly, also known as a ‘‘rolling chassis,’’ which is typically comprised of, but not limited to, a frame or body with front and/or rear suspension components (such as arms, springs, axles, spindles, and shafts) installed and powertrain components (including either an electric motor or a gas-powered internal combustion engine) installed or ready for installation. When imported together with a rolling chassis subject to this investigation, other LSPTV components, such as batteries, bumpers, wheel and tire assemblies, cowlings, fenders, grills, kick plates, steering column and steering wheel assemblies, dash assembly, seat assemblies, pedal assemblies, brake assemblies, canopy or roof assemblies, temporary rain enclosures, windshields, mirrors, headlights, taillights, lighting systems, or storage—whether assembled or unassembled, whether as part of a kit or not, and whether or not accompanied by VerDate Sep<11>2014 18:02 Dec 05, 2024 Jkt 265001 additional components—constitute part of an unfinished and/or unassembled LSPTV that is subject to this investigation. The inclusion of other products, components, or assemblies not described here does not remove the product from the scope. Subject LSPTVs and subassemblies are covered by the scope of this investigation whether or not they are accompanied by other parts. This investigation covers all LSPTVs and subassemblies meeting the physical description of the scope, regardless of overall length, width, or height. Individual components that do not comprise a subject LSPTV or subassembly that are entered and sold by themselves are not subject to the investigation, but components entered with a LSPTV or subassembly, whether finished or unfinished and whether assembled or unassembled, are subject merchandise. LSPTVs and subassemblies subject to this investigation include those that are produced in the subject country whether assembled with other components in the subject country or in a third country. Processing or completion of finished and unfinished LSPTVs and subassemblies either in the subject country or in a third country does not remove the product from the scope. Specifically excluded from the scope of this investigation are all-terrain vehicles (which typically have straddle seating and are steered by handlebars), multipurpose offhighway utility vehicles (which typically have a maximum top nameplate speed of greater than 25 miles per hour), and recreational off-highway vehicles (which typically have a maximum top nameplate speed of greater than 30 miles per hour). Also excluded from the scope are go-karts, electric scooters, golf trolleys, and mobility aids (which include power wheelchairs and scooters which are used for the express purpose of enabling mobility for a person). The LSPTVs subject to the investigation are typically classified in the Harmonized Tariff Schedule of the United States (HTSUS) at subheading 8703.10.5030. LSPTVs subject to the investigation may also enter under HTSUS subheading 8703.10.5060 and 8703.90.0100. The LSPTV subassemblies that are subject to the investigation typically enter under HTSUS subheadings 8706.00.1540 and 8707.10.0040. The HTSUS subheadings are provided for convenience and customs purposes only, and the written description of the merchandise subject to the investigation is dispositive. Appendix II List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Alignment IV. Injury Test V. Preliminary Affirmative Determination of Critical Circumstances VI. Analysis of China’s Financial System VII. Diversification of China’s Economy VIII. Use of Facts Available and Adverse Inferences IX. Subsidies Valuation X. Benchmarks and Interest Rates XI. Analysis of Programs PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 96945 XII. Recommendation [FR Doc. 2024–28697 Filed 12–5–24; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–089] Steel Racks and Parts Thereof From the People’s Republic of China: Final Results of the Expedited Sunset Review of the Countervailing Duty Order Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The U.S. Department of Commerce (Commerce) finds that revocation of the countervailing duty (CVD) order on steel racks and parts thereof (steel racks) from the People’s Republic of China (China) would be likely to lead to continuation or recurrence of countervailable subsidies at the levels indicated in the ‘‘Final Results of the Sunset Review’’ section of this notice. DATES: Applicable December 6, 2024. FOR FURTHER INFORMATION CONTACT: Stephanie Trejo, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4390. SUPPLEMENTARY INFORMATION: AGENCY: Background On September 16, 2019, Commerce published the Order on steels racks from China.1 On August 1, 2024, Commerce published the notice of initiation of the first sunset review of the Order, pursuant to section 751(c) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.218(c).2 On August 16, 2024, Commerce received a notice of intent to participate in this review from the Coalition for Fair Rack Imports (CFRI), the domestic interested party, within the 15-day deadline specified in 19 CFR 351.218(d)(1)(i).3 CFRI claimed interested party status within the meaning of section 771(9)(E) of the Act 1 See Certain Steel Racks and Parts Thereof From the People’s Republic of China: Amended Final Affirmative Antidumping Duty Determination and Antidumping Duty Order; and Countervailing Duty Order, 84 FR 48584 (September 16, 2019) (Order). 2 See Initiation of Five-Year (Sunset) Reviews, 89 FR 62717 (August 1, 2024). 3 See CFRI’s Letter, ‘‘Notice of Intent to Participate in the First Five-Year Review of the Countervailing Duty Order on Certain Steel Racks and Parts Thereof from the People’s Republic of China,’’ dated August 16, 2024. E:\FR\FM\06DEN1.SGM 06DEN1

Agencies

[Federal Register Volume 89, Number 235 (Friday, December 6, 2024)]
[Notices]
[Pages 96942-96945]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28697]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-177]


Certain Low Speed Personal Transportation Vehicles From the 
People's Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, Preliminary Affirmative Determination of Critical 
Circumstances, in Part, and Alignment of Final Determination With Final 
Antidumping Duty Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain low speed personal transportation 
vehicles (LSPTVs) from the People's Republic of China (China). The 
period of investigation (POI) is January 1, 2023, through December 31, 
2023. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable December 6, 2024.

FOR FURTHER INFORMATION CONTACT: Dan Alexander, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4313.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this countervailing duty (CVD) 
investigation on July 16, 2024.\1\ On July 25, 2024, Commerce tolled 
certain deadlines in this administrative proceeding by seven days.\2\ 
On September 10, 2024, Commerce postponed the preliminary determination 
until November 25, 2024.\3\
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    \1\ See Certain Low Speed Personal Transportation Vehicles from 
the People's Republic of China: Initiation of Countervailing Duty 
Investigation, 89 FR 73371 (July 16, 2024) (Initiation Notice).
    \2\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 25, 2024.
    \3\ See Certain Low Speed Personal Transportation Vehicles from 
the People's Republic of China: Postponement of Preliminary 
Determination in the Countervailing Duty Investigation, 89 FR 73371 
(September 10, 2024).
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    For a complete description of events that followed the initiation 
of this investigation, see the Preliminary Decision Memorandum.\4\ A 
list of topics discussed in the Preliminary Decision Memorandum is 
included as Appendix II to this notice. The Preliminary Decision 
Memorandum is a public document and is on file electronically via 
Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination of the Countervailing Duty Investigation 
of Certain Low Speed Personal Transportation Vehicles from the 
People's Republic of China,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

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

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\5\ in 
the Initiation Notice Commerce set aside a period of time for parties 
to raise issues regarding product coverage (i.e., scope).\6\ Certain 
interested parties commented on the scope of the less-than-fair-value 
(LTFV) and CVD investigations as it appeared in the Initiation Notice. 
Commerce preliminary determined to modify the scope of this 
investigation to include one additional Harmonized Tariff Schedule of 
the United States Subheading (i.e. 8703.10.5060). See the scope in 
Appendix I to this notice. Additionally, Commerce is proposing certain 
modifications to the language of the scope of these LTFV and CVD 
investigations and invite interested parties to submit comments. For 
further discussion, see the Preliminary Scope Modification 
Memorandum.\7\
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \6\ See Initiation Notice, 89 FR at 49834.
    \7\ See Memorandum, ``Less-Than-Fair-Value and Countervailing 
Duty Investigations of Certain Low Speed Personal Transportation 
Vehicles from the People's Republic of China: Preliminary Scope 
Modification Memorandum,'' dated concurrently with this notice 
(Preliminary Scope Modification Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found to be 
countervailable, Commerce preliminarily determines

[[Page 96943]]

that there is a subsidy, i.e., a financial contribution by an 
``authority'' that gives rise to a benefit to the recipient, and that 
the subsidy is specific.\8\ For a full description of the methodology 
underlying our preliminary determination, see the Preliminary Decision 
Memorandum.
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    \8\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available, and, because it finds that certain respondents and 
the Government of China did not act to the best of their ability to 
respond to Commerce's requests for information, it drew an adverse 
inference where appropriate in selecting from among the facts otherwise 
available.\9\ For further information, see the ``Use of Facts Otherwise 
Available and Adverse Inferences'' section in the Preliminary Decision 
Memorandum.
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    \9\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    In accordance with section 703(e)(1) of the Act, we preliminarily 
find that critical circumstances exist with respect to imports of 
subject merchandise from Guangdong Lvtong New Energy Electric Vehicle 
Technology Co., Ltd. (Lvtong), and the companies who did not respond to 
our quantity and value (Q&V) questionnaire (i.e., the non-responsive 
companies).\10\ We also preliminarily find that critical circumstances 
do not exist with respect to imports of subject merchandise from Xiamen 
Dalle New Energy Automobile Co., Ltd (Xiamen Dalle) and all other 
producers and/or exporters. For a full discussion of our preliminary 
critical circumstances determination, see the ``Preliminary Critical 
Circumstances'' section of the Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \10\ The companies that failed to respond to Commerce's Q&V 
questionnaire are: (1) Shandong Odes Industry Co. Ltd.; and (2) 
Hebei Machinery Import and Export Co., Ltd.
---------------------------------------------------------------------------

Alignment

    In accordance with section 705(a)(1) of the Act and 19 CFR 
351.210(b)(4), Commerce is aligning the final CVD determination in this 
investigation with the final determination in the concurrent LTFV 
investigation of LSPTVs from China, based on a request made by the 
petitioner.\11\ Consequently, the final CVD determination will be 
issued on the same date as the final LTFV determination, which is 
currently scheduled to be issued no later than April 8, 2025, unless 
postponed.\12\
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    \11\ See Petitioner's Letter, ``Request to Align Countervailing 
Duty Investigation Final Determination with Antidumping Duty 
Investigation Final Determination,'' dated November 12, 2024.
    \12\ See Low Speed Personal Transportation Vehicles from the 
People's Republic of China: Postponement of Preliminary 
Determination in the Less-Than-Fair Value Investigation, 89 FR 89591 
(November 13, 2024) (LTFV Postponement).
---------------------------------------------------------------------------

All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
rates that are zero, de minimis, or based entirely under section 776 of 
the Act.
    In this investigation, Commerce preliminarily calculated total net 
subsidy rates for Xiamen Dalle and Lvtong that are not zero, de 
minimis, or based entirely on the facts otherwise available. Because 
Commerce calculated individual estimated countervailable subsidy rates 
for Xiamen Dalle and Lvtong that are not zero, de minimis, or based 
entirely on the facts otherwise available, we have preliminarily 
calculated the all-others rate using a simple-average of the individual 
subsidy rates calculated for the examined respondents (i.e., 22.04 
percent).\13\
---------------------------------------------------------------------------

    \13\ See Memorandum, ``Calculation of Subsidy Rate for All 
Others,'' dated concurrently with this notice.
---------------------------------------------------------------------------

Rate for Non-Responsive Companies

    Two potential exporters and/or producers of LSPTVs from China did 
not respond to Commerce's Q&V questionnaire.\14\ We find that, by not 
responding to the Q&V questionnaire, these companies withheld requested 
information and significantly impeded this proceeding. Thus, in 
reaching our preliminary determination, pursuant to sections 
776(a)(2)(A) and (C) of the Act, we are basing the subsidy rate for the 
non-responsive companies on facts otherwise available.
---------------------------------------------------------------------------

    \14\ As noted above, these companies are: (1) Shandong Odes 
Industry Co. Ltd.; and (2) Hebei Machinery Import and Export Co., 
Ltd.
---------------------------------------------------------------------------

    We further preliminarily determine that an adverse inference is 
warranted, pursuant to section 776(b) of the Act. By failing to submit 
responses to Commerce's Q&V questionnaire, the non-responsive companies 
did not cooperate to the best of their ability in this investigation. 
Accordingly, we preliminarily find that an adverse inference is 
warranted to ensure that the non-responsive companies will not obtain a 
more favorable result than had they fully complied with our request for 
information. For more information on the application of adverse facts 
available to the non-responsive companies, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Determination 
Memorandum.

Preliminary Determination

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

------------------------------------------------------------------------
                                                  Subsidy rate (percent
                    Company                            ad valorem)
------------------------------------------------------------------------
Guangdong Lvtong New Energy Electric Vehicle                       22.84
 Technology Co., Ltd...........................
Hebei Machinery Import and Export Co., LTD.....                 * 515.37
Shandong Odes Industry Co. Ltd.................                 * 515.37
Xiamen Dalle New Energy Automobile Co., Ltd....                    21.23
All Others.....................................                    22.04
------------------------------------------------------------------------
* Rate based on facts available with adverse inferences.

Disclosure

    Commerce intends to disclose to interested parties its calculations 
and analysis performed in connection with this preliminary 
determination within five days of its public announcement or, if there 
is no public announcement, within five days of the date of publication 
of this notice in the Federal Register, accordance with 19 CFR 
351.224(b).
    Consistent with 19 CFR 351.224(e), Commerce will analyze and, if 
appropriate, correct any timely

[[Page 96944]]

allegations of significant ministerial errors by amending the 
preliminary determination. However, consistent with 19 CFR 351.224(d), 
Commerce will not consider incomplete allegations that do not address 
the significance standard under 19 CFR 351.224(g) following the 
preliminary determination. Instead, Commerce will address such 
allegations in the final determination together with issues raised in 
the case briefs or other written comments.

Suspension of Liquidation

    With the exception of Lvtong and the non-responsive companies, in 
accordance with section 703(d)(1)(B) and (d)(2) of the Act, Commerce 
will direct U.S. Customs and Border Protection (CBP) to suspend 
liquidation of entries of subject merchandise, as described in the 
scope of the investigation, entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of this notice in the 
Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce will 
instruct CBP to require a cash deposit equal to the rates indicated 
above.
    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of: (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered; or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise produced and/or exported by Lvtong and the non-responsive 
companies (i.e., Shandong Odes Industry Co. Ltd. and Hebei Machinery 
Import and Export Co., Ltd.). In accordance with section 703(e)(2)(A) 
of the Act, the suspension of liquidation shall apply to unliquidated 
entries of merchandise from the exporters/producers identified in this 
paragraph that were entered, or withdrawn from warehouse, for 
consumption on or after the date which is 90 days before the 
publication of this notice.

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    As discussed above, Commerce is proposing certain modifications to 
the language of the scope of these LTFV and CVD investigations and 
invites interested parties to submit comments. Commerce intends to 
issue our preliminary decision regarding the proposed scope 
modifications no later than January 23, 2025, the date of the 
preliminary determination in the companion LTFV investigation.\15\ All 
interested parties will have the opportunity to submit scope case and 
rebuttal briefs, and we will establish a briefing schedule to allow 
interested parties to comment on our preliminary scope decision at that 
time. For all scope case and rebuttal briefs, parties must file 
identical documents simultaneously on the records of the ongoing LTFV 
and CVD investigations of LSPTVs from China. No new factual information 
or business proprietary information may be included in either scope 
case or rebuttal briefs.
---------------------------------------------------------------------------

    \15\ See LTFV Postponement.
---------------------------------------------------------------------------

    Case briefs or other written comments regarding non-scope issues 
may be submitted to the Assistant Secretary for Enforcement and 
Compliance no later than seven days after the date on which the last 
verification report is issued in this investigation. Rebuttal briefs, 
limited to issues raised in the case briefs, may be filed not later 
than five days after the date for filing case briefs.\16\ Interested 
parties who submit case or rebuttal briefs in this proceeding must 
submit: (1) a table of contents listing each issue; and (2) a table of 
authorities.\17\
---------------------------------------------------------------------------

    \16\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \17\ See 19 CFR 351.309(c)(2) and (d)(2).
---------------------------------------------------------------------------

    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this investigation, we instead request 
that interested parties provide at the beginning of their briefs a 
public executive summary for each issue raised in their briefs.\18\ 
Further, we request that interested parties limit their public 
executive summary of each issue to no more than 450 words, not 
including citations. We intend to use the public executive summaries as 
the basis of the comment summaries included in the issues and decision 
memorandum that will accompany the final determination in this 
investigation. We request that interested parties include footnotes for 
relevant citations in the executive summary of each issue. Note that 
Commerce has amended certain of its requirements pertaining to the 
service of documents in 19 CFR 351.303(f).\19\
---------------------------------------------------------------------------

    \18\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \19\ See APO and Service Final Rule, 88 FR at 67069.
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce via ACCESS 
within 30 days after the date of publication of this notice. Requests 
should contain (1) the party's name, address, and telephone number; (2) 
the number of participants and whether any participant is a foreign 
national; and (3) a list of the issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, parties will be notified of 
the time and date for the hearing.\20\ Parties should confirm by 
telephone the date, time, and location of the hearing two days before 
the scheduled date.
---------------------------------------------------------------------------

    \20\ See 19 CFR 351.310(d).
---------------------------------------------------------------------------

    All submissions, including case and rebuttal briefs, as well as 
hearing requests, should be filed using ACCESS. An electronically-filed 
document must be received successfully in its entirety by ACCESS by 
5:00 p.m. Eastern Time on the established deadline.

U.S. International Trade Commission (ITC) Notification

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

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).

    Dated: November 25, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation consists of 
certain low speed personal transportation vehicles (LSPTV) and

[[Page 96945]]

subassemblies thereof, whether finished or unfinished and whether 
assembled or unassembled, with or without tires, wheels, seats, 
steering columns and steering wheels, canopies, roofs, or batteries. 
LSPTVs meeting this description are generally open-air vehicles with 
a minimum of four wheels, a steering wheel, a traditional side-by-
side or in-line row seating arrangement (i.e., non-straddle), foot 
operated accelerator and brake pedals, and a gross vehicle weight of 
no greater than 5,500 pounds. The main power source for subject 
LSPTVs is either an electric motor and battery (including but not 
limited to lithium-ion batteries, lithium phosphate batteries, lead 
acid batteries, and absorbed glass mat batteries) or a gas-powered 
internal combustion engine. Subject LSPTVs may be described as golf 
carts, golf cars, low speed vehicles, personal transportation 
vehicles, or light utility vehicles.
    LSPTVs subject to this investigation typically have a maximum 
top nameplate speed of no greater than 25 miles per hour as required 
by federal, state, and local laws and regulations. Subject LSPTVs 
with a maximum top nameplate speed greater than 20 miles per hour 
normally must comply with the U.S. Department of Transportation's 
Federal Motor Vehicle Safety Standards for Low-Speed Vehicles set 
forth in 49 CFR 571.500. LSPTVs that otherwise meet the physical 
description of this scope but are not certified under 49 CFR 571.500 
and are not certified under other sections of subpart B of the 
Federal Motor Vehicle Safety Standards (49 CFR part 571), are not 
excluded from this investigation. LSPTVs that are certified under 
both 49 CFR 571.500 and other sections of subpart B of the Federal 
Motor Vehicle Safety Standards remain subject to the scope of this 
investigation. Subject LSPTVs that have a maximum top nameplate 
speed of less than 25 miles per hour may be certified to the SAE 
International (SAE) standards SAE J2258 and SAE J2358. LSPTVs that 
have a maximum top nameplate speed of less than 20 miles per hour 
may also be certified to the Outdoor Power Equipment Institute 
(OPEI) standards OPEI Z130.1 and OPEI Z135.
    An unfinished and/or unassembled LSPTV subject to this 
investigation covers at a minimum a subassembly, also known as a 
``rolling chassis,'' which is typically comprised of, but not 
limited to, a frame or body with front and/or rear suspension 
components (such as arms, springs, axles, spindles, and shafts) 
installed and powertrain components (including either an electric 
motor or a gas-powered internal combustion engine) installed or 
ready for installation.
    When imported together with a rolling chassis subject to this 
investigation, other LSPTV components, such as batteries, bumpers, 
wheel and tire assemblies, cowlings, fenders, grills, kick plates, 
steering column and steering wheel assemblies, dash assembly, seat 
assemblies, pedal assemblies, brake assemblies, canopy or roof 
assemblies, temporary rain enclosures, windshields, mirrors, 
headlights, taillights, lighting systems, or storage--whether 
assembled or unassembled, whether as part of a kit or not, and 
whether or not accompanied by additional components--constitute part 
of an unfinished and/or unassembled LSPTV that is subject to this 
investigation. The inclusion of other products, components, or 
assemblies not described here does not remove the product from the 
scope.
    Subject LSPTVs and subassemblies are covered by the scope of 
this investigation whether or not they are accompanied by other 
parts. This investigation covers all LSPTVs and subassemblies 
meeting the physical description of the scope, regardless of overall 
length, width, or height. Individual components that do not comprise 
a subject LSPTV or subassembly that are entered and sold by 
themselves are not subject to the investigation, but components 
entered with a LSPTV or subassembly, whether finished or unfinished 
and whether assembled or unassembled, are subject merchandise.
    LSPTVs and subassemblies subject to this investigation include 
those that are produced in the subject country whether assembled 
with other components in the subject country or in a third country. 
Processing or completion of finished and unfinished LSPTVs and 
subassemblies either in the subject country or in a third country 
does not remove the product from the scope.
    Specifically excluded from the scope of this investigation are 
all-terrain vehicles (which typically have straddle seating and are 
steered by handlebars), multipurpose off-highway utility vehicles 
(which typically have a maximum top nameplate speed of greater than 
25 miles per hour), and recreational off-highway vehicles (which 
typically have a maximum top nameplate speed of greater than 30 
miles per hour). Also excluded from the scope are go-karts, electric 
scooters, golf trolleys, and mobility aids (which include power 
wheelchairs and scooters which are used for the express purpose of 
enabling mobility for a person).
    The LSPTVs subject to the investigation are typically classified 
in the Harmonized Tariff Schedule of the United States (HTSUS) at 
subheading 8703.10.5030. LSPTVs subject to the investigation may 
also enter under HTSUS subheading 8703.10.5060 and 8703.90.0100. The 
LSPTV subassemblies that are subject to the investigation typically 
enter under HTSUS subheadings 8706.00.1540 and 8707.10.0040. The 
HTSUS subheadings are provided for convenience and customs purposes 
only, and the written description of the merchandise subject to the 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Alignment
IV. Injury Test
V. Preliminary Affirmative Determination of Critical Circumstances
VI. Analysis of China's Financial System
VII. Diversification of China's Economy
VIII. Use of Facts Available and Adverse Inferences
IX. Subsidies Valuation
X. Benchmarks and Interest Rates
XI. Analysis of Programs
XII. Recommendation

[FR Doc. 2024-28697 Filed 12-5-24; 8:45 am]
BILLING CODE 3510-DS-P

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