Notice2021-14316
Certain Metal Lockers and Parts Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 7, 2021
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of certain metal lockers and parts thereof (metal lockers) from the People's Republic China (China).
Full Text
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<title>Federal Register, Volume 86 Issue 127 (Wednesday, July 7, 2021)</title>
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[Federal Register Volume 86, Number 127 (Wednesday, July 7, 2021)]
[Notices]
[Pages 35741-35745]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-14316]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-134]
Certain Metal Lockers and Parts Thereof From the People's
Republic of China: Final Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of certain metal lockers and parts thereof (metal lockers) from the
People's Republic China (China).
DATES: Applicable July 7, 2021.
FOR FURTHER INFORMATION CONTACT: Alex Cipolla or Charles Doss, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4956 or (202) 482-4474,
respectively.
SUPPLEMENTARY INFORMATION:
Background
The petitioners in this investigation are List Industries, Inc.,
Lyon LLC, Penco Products, Inc., and Tennsco LLC.\1\ In addition to the
Government of China, the selected mandatory respondent in this
investigation is Zhejiang Xingyi Metal Products Co., Ltd. (Zhejiang
Xingyi).
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\1\ On October 15, 2020, the petitioners notified Commerce that
Lyon LLC was withdrawing as a petitioner in this investigation. On
November 6, 2020, DeBourgh Manufacturing Co. was listed with List
Industries, Inc., Penco Products, Inc., and Tennsco LLC as the
petitioners in this investigation.
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On December 14, 2020, Commerce published the Preliminary
Determination in the Federal Register.\2\ In the Preliminary
Determination, in accordance with section 705(a)(1) of the Tariff Act
of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce
aligned the final CVD determination in this investigation with the
final antidumping duty (AD) determination in the companion AD
investigation of metal lockers from China. On March 4, 2021, Commerce
published its
[[Page 35742]]
amendment of the scope of the Preliminary Determination.\3\
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\2\ See Certain Metal Lockers and Parts Thereof from the
People's Republic of China: Preliminary Affirmative Countervailing
Duty Determination and Alignment of Final Determination with Final
Antidumping Duty Determination, 85 FR 80771 (December 14, 2020)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
\3\ See Certain Metal Lockers and Parts Thereof from the
People's Republic of China: Amended Preliminary Affirmative
Countervailing Duty Determination, 86 FR 12611 (March 4, 2021).
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A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, may be found in the
Issues and Decision Memorandum which is hereby adopted by this
notice.\4\ The Issues and Decision Memorandum is a public document and
is on file electronically via Enforcement and Compliance's Antidumping
and Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>. In
addition, a complete version of the Issues and Decision Memorandum can
be accessed directly at <a href="http://enforcement.trade.gov/frn/">http://enforcement.trade.gov/frn/</a>.
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\4\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Certain Metal Lockers and Parts Thereof from the
People's Republic of China,'' dated concurrently with, and hereby
adopted by, this notice (Issues and Decision Memorandum).
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Period of Investigation
The period of investigation is January 1, 2019, through December
31, 2019.
Scope of the Investigation
The products covered by this investigation are metal lockers from
China. For a full description of the scope of this investigation, see
Appendix I.
Scope Comments
On February 2, 2021, we issued the Preliminary Scope Decision
Memorandum.\5\ We received comments from interested parties in regards
to the Preliminary Scope Decision Memorandum, which we addressed in the
Final Scope Decision Memorandum.\6\ Commerce has made no changes to the
scope of this investigation since the Preliminary Determination.
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\5\ See Memorandum, ``Antidumping Duty and Countervailing Duty
Investigations of Certain Metal Lockers and Parts Thereof from the
People's Republic of China: Preliminary Scope Decision Memorandum,''
dated February 2, 2021 (Preliminary Scope Decision Memorandum).
\6\ See Memorandum, ``Antidumping Duty and Countervailing Duty
Investigations of Certain Metal Lockers and Parts Thereof from the
People's Republic of China: Final Scope Decision Memorandum,'' dated
concurrently with, and hereby adopted by, this notice (Final Scope
Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
raised by parties, and to which we responded in the Issues and Decision
Memorandum, is attached to this notice at Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found countervailable,
Commerce determines 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.\7\ For a full description
of the methodology underlying our final determination, see the Issues
and Decision Memorandum.
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\7\ 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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In making this final determination, Commerce relied, in part, on
facts available pursuant to section 776(a) of the Act. Additionally, as
discussed in the Issues and Decision Memorandum, because one or more
respondents did not act to the best of their ability in responding to
our requests for information, we drew adverse inferences, where
appropriate, in selecting from among the facts otherwise available,
pursuant to section 776(b) of the Act. This includes eight companies
that did not respond to Commerce's quantity and value questionnaire; as
described in the Preliminary Determination,\8\ we have applied an
adverse inference in selection of facts available for determining the
subsidy rates for these companies, pursuant to section 776(d) of the
Act. For further information, see the section ``Use of Facts Otherwise
Available and Adverse Inferences'' in the accompanying Issues and
Decision Memorandum.
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\8\ See Preliminary Determination PDM at 11-19, section
``Application of AFA: Non-Responsive Companies.''
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Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of an on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Act.\9\
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\9\ See Commerce's Letter, In Lieu of Verification
Questionnaire, dated March 5, 2021.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, we made certain changes to Zhejiang Xingi's subsidy rate
calculations, the adverse facts available rate assigned to firms that
did not respond to Commerce's quantity and value questionnaire, and the
all-others rate. For a discussion of these changes, see the Issues and
Decision Memorandum.
All-Others Rate
In accordance with section 705(c)(1)(B)(i)(I) of the Act, Commerce
calculated a countervailable subsidy rate for the individually
investigated exporter/producer of the subject merchandise. Section
705(c)(5)(A) of the Act provides that, in the final determination,
Commerce shall determine an estimated all-others rate for companies not
individually examined. The 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 rates based entirely under section 776 of the Act.
In this investigation, as discussed in the Issues and Decision
Memorandum, Commerce calculated an individual estimated countervailable
subsidy rate for Zhejiang Xingyi, the only individually examined
exporter/producer in this investigation, that was not zero, de minimis,
or based entirely under section 776 of the Act. As a result, the
estimated weighted-average rate calculated for Zhejiang Xingyi is the
rate assigned to all other producers and exporters, pursuant to section
705(c)(5)(A)(i) of the Act.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
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Subsidy rate
Company (percent)
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Zhejiang Xingyi Metal Products Co., Ltd................. 24.66
[[Page 35743]]
All Others.............................................. 24.66
Changshu Taron Machinery Equipment Manufacturing Co., 131.51
Ltd....................................................
Guangdong Yuhua Building Materials Co., Ltd............. 131.51
Jiangsu Tongrun Tool Cabinet Co., Ltd................... 131.51
Luoyang Mas Younger Office Furniture Co./Louyang Mas 131.51
Younger Export and Import Co...........................
Luoyang Shidiu Import and Export Co., Ltd............... 131.51
Suzhou Yuanda Commercial Products Co. Ltd............... 131.51
Winnsen Industry Co., Ltd............................... 131.51
Xiamen Headleader Technology............................ 131.51
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Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis performed in this final determination within five days of
any public announcement or, if there is no public announcement, within
five days of the date of the publication of this notice in accordance
with 19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of
subject merchandise as described in the ``Scope of the Investigation''
section entered, or withdrawn from warehouse, for consumption,
effective December 14, 2020, which is the date of publication of the
Preliminary Determination in the Federal Register. In accordance with
section 703(d) of the Act, effective April 13, 2021, we instructed CBP
to discontinue the suspension of liquidation of all entries at that
time, but to continue the suspension of liquidation of all entries
between December 14, 2020, and April 12, 2021.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation and require a cash deposit of estimated
countervailing duties for such entries of subject merchandise in the
amounts indicated above, in accordance with section 706(a) of the Act.
If the ITC determines that material injury, or threat of material
injury, does not exist, this proceeding will be terminated, and all
estimated duties deposited or securities posted as a result of the
suspension of liquidation will be refunded or canceled.
International Trade Commission Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our affirmative determination that countervailable subsidies are
being provided to producers and exporters of metal lockers from China.
Because the final determination in this proceeding is affirmative, in
accordance with section 705(b) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports of metal lockers from China no later than 45 days after our
final determination. If the ITC determines that material injury or
threat of material injury does not exist, this proceeding will be
terminated, and all cash deposits will be refunded. If the ITC
determines that such injury does exist, Commerce will issue a
countervailing duty order directing CBP to assess, upon further
instruction by Commerce, countervailing duties on all imports of the
subject merchandise that are entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation, as discussed above in the ``Continuation of Suspension of
Liquidation'' section.
Notification Regarding Administrative Protective Orders
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an administrative protective order (APO) of their
responsibility concerning the destruction of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
written notification of the return/destruction of APO materials or
conversion to judicial protective order is hereby requested. Failure to
comply with the regulations and terms of an APO is a violation which is
subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: June 28, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation covers certain metal lockers,
with or without doors, and parts thereof (metal lockers). The
subject metal lockers are secure metal storage devices less than 27
inches wide and less than 27 inches deep, whether floor standing,
installed onto a base or wall-mounted. In a multiple locker assembly
(whether a welded locker unit, otherwise assembled locker unit or
knocked down unit or kit), the width measurement shall be based on
the width of an individual locker not the overall unit dimensions.
All measurements in this scope are based on actual measurements
taken on the outside dimensions of the single-locker unit. The
height is the vertical measurement from the bottom to the top of the
unit. The width is the horizontal (side to side) measurement of the
front of the unit, and the front of the unit is the face with the
door or doors or the opening for internal access of the unit if
configured without a door. The depth is the measurement from the
front to the back of the unit. The subject certain metal lockers
typically include the bodies (back, side, shelf, top and bottom
panels), door frames with or without doors which can be integrated
into the sides or made separately, and doors.
The subject metal lockers typically are made of flat-rolled
metal, metal mesh and/or expanded metal, which includes but is not
limited to alloy or non-alloy steel (whether or not galvanized or
otherwise metallically coated for corrosion resistance), stainless
steel, or aluminum, but the doors may also include transparent
polycarbonate, Plexiglas or similar transparent material or any
combination thereof. Metal mesh refers to both wire mesh and
expanded metal mesh. Wire mesh is a wire product in which the
horizontal and transverse wires are welded at the cross-section in a
grid pattern. Expanded metal mesh is made by slitting and stretching
metal sheets to make a screen of diamond or other shaped openings.
Where the product has doors, the doors are typically configured
with or for a handle or other device or other means that permit the
use of a mechanical or electronic lock or locking mechanism,
including, but not limited to: A combination lock, a padlock, a key
lock (including cylinder locks) lever or knob lock, electronic key
pad, or other
[[Page 35744]]
electronic or wireless lock. The handle and locking mechanism, if
included, need not be integrated into one another. The subject
locker may or may not also enter with the lock or locking device
included or installed. The doors or body panels may also include
vents (including wire mesh or expanded metal mesh vents) or
perforations. The bodies, body components and doors are typically
powder coated, otherwise painted or epoxy coated or may be
unpainted. The subject merchandise includes metal lockers imported
either as welded or otherwise assembled units (ready for
installation or use) or as knocked down units or kits (requiring
assembly prior to installation or use).
The subject lockers may be shipped as individual or multiple
locker units preassembled, welded, or combined into banks or tiers
for ease of installation or as sets of component parts, bulk packed
(i.e., all backs in one package, crate, rack, carton or container
and sides in another package, crate, rack, carton or container) or
any combination thereof. The knocked down lockers are shipped
unassembled requiring a supplier, contractor or end-user to assemble
the individual lockers and locker banks prior to installation.
The scope also includes all parts and components of lockers made
from flat-rolled metal or expanded metal (e.g., doors, frames,
shelves, tops, bottoms, backs, side panels, etc.) as well as
accessories that are attached to the lockers when installed
(including, but not limited to, slope tops, bases, expansion filler
panels, dividers, recess trim, decorative end panels, and end caps)
that may be imported together with lockers or other locker
components or on their own. The particular accessories listed for
illustrative purposes are defined as follows:
a. Slope tops: Slope tops are slanted metal panels or units that
fit on the tops of the lockers and that slope from back to front to
prevent the accumulation of dust and debris on top of the locker and
to discourage the use of the tops of lockers as storage areas. Slope
tops come in various configurations including, but not limited to,
unit slope tops (in place of flat tops), slope hoods made of a back,
top and end pieces which fit over multiple units and convert flat
tops to a sloping tops, and slope top kits that convert flat tops to
sloping tops and include tops, backs and ends.
b. Bases: Locker bases are panels made from flat-rolled metal
that either conceal the legs of the locker unit, or for lockers
without legs, provide a toe space in the front of the locker and
conceal the flanges for floor anchoring.
c. Expansion filler panel: Expansion filler panels or fillers
are metal panels that attach to locker units to cover columns, pipes
or other obstacles in a row of lockers or fill in gaps between the
locker and the wall. Fillers may also include metal panels that are
used on the sides or the top of the lockers to fill gaps.
d. Dividers: Dividers are metal panels that divide the space
within a locker unit into different storage areas.
e. Recess trim: Recess trim is a narrow metal trim that bridges
the gap between lockers and walls or soffits when lockers are
recessed into a wall.
f. Decorative end panels: End panels fit onto the exposed ends
of locker units to cover holes, bolts, nuts, screws and other
fasteners. They typically are painted to match the lockers.
g. End caps: End caps fit onto the exposed ends of locker units
to cover holes, bolts, nuts, screws and other fasteners.
The scope also includes all hardware for assembly and
installation of the lockers and locker banks that are imported with
or shipped, invoiced, or sold with the imported locker or locker
system except the lock.
Excluded from the scope are wire mesh lockers. Wire mesh lockers
are those with each of the following characteristics:
(1) At least three sides, including the door, made from wire
mesh;
(2) the width and depth each exceed 25 inches; and
(3) the height exceeds 90 inches.
Also excluded are lockers with bodies made entirely of plastic,
wood, or any nonmetallic material.
Also excluded are exchange lockers with multiple individual
locking doors mounted on one master locking door to access multiple
units. Excluded exchange lockers have multiple individual storage
spaces, typically arranged in tiers, with access doors for each of
the multiple individual storage space mounted on a single frame that
can be swung open to allow access to all of the individual storage
spaces at once. For example, uniform or garment exchange lockers are
designed for the distinct function of securely and hygienically
exchanging clean and soiled uniforms. Thus, excluded exchange
lockers are a multi-access point locker whereas covered lockers are
a single access point locker for personal storage. The excluded
exchange lockers include assembled exchange lockers and those that
enter in `knock down' form in which all of the parts and components
to assemble a completed exchange locker unit are packaged together.
Parts for exchange lockers that are imported separately from the
exchange lockers in `knock down' form are not excluded.
Also excluded are metal lockers that are imported with an
installed electronic, internet-enabled locking device that permits
communication or connection between the locker's locking device and
other internet connected devices.
Also excluded are locks and hardware and accessories for
assembly and installation of the lockers, locker banks and storage
systems that are separately imported in bulk and are not
incorporated into a locker, locker system or knocked down kit at the
time of importation. Such excluded hardware and accessories include
but are not limited to locks and bulk imported rivets, nuts, bolts,
hinges, door handles, door/frame latching components, and coat
hooks. Accessories of sheet metal, including but not limited to end
panels, bases, dividers and sloping tops, are not excluded
accessories.
Mobile tool chest attachments that meet the physical description
above are covered by the scope of this investigation, unless such
attachments are covered by the scope of the orders on certain tool
chests and cabinets from China. If the orders on certain tool chests
and cabinets from China are revoked, the mobile tool chest
attachments from China will be covered by the scope of this
investigation.
The scope also excludes metal safes with each of the following
characteristics: (1) Pry resistant, concealed hinges; (2) body walls
and doors of steel that are at least 17 gauge (0.05625 inch or
1.42874 mm thick); and (3) an integrated locking mechanism that
includes at least two round steel bolts 0.75 inch (19 mm) or larger
in diameter; or three bolts 0.70 inch (17.78 mm) or more in
diameter; or four or more bolts at least 0.60 inch (15.24 mm) or
more in diameter, that project from the door into the body or frame
of the safe when in the locked position.
The scope also excludes gun safes meeting each of the following
requirements:
(1) Shall be able to fully contain firearms and provide for
their secure storage.
(2) Shall have a locking system consisting of at minimum a
mechanical or electronic combination lock. The mechanical or
electronic combination lock utilized by the safe shall have at least
10,000 possible combinations consisting of a minimum three numbers,
letters, or symbols. The lock shall be protected by a casehardened
(Rc 60+) drill-resistant steel plate, or drill-resistant material of
equivalent strength.
(3) Boltwork shall consist of a minimum of three steel locking
bolts of at least \1/2\ inch thickness that intrude from the door of
the safe into the body of the safe or from the body of the safe into
the door of the safe, which are operated by a separate handle and
secured by the lock.
(4) The exterior walls shall be constructed of a minimum 12-
gauge thick steel for a single-walled safe, or the sum of the steel
walls shall add up to at least 0.100 inches for safes with walls
made from two pieces of flat-rolled steel.
(5) Doors shall be constructed of a minimum one layer of 7-gauge
steel plate reinforced construction or at least two layers of a
minimum 12-gauge steel compound construction.
(6) Door hinges shall be protected to prevent the removal of the
door. Protective features include, but are not limited to: Hinges
not exposed to the outside, interlocking door designs, dead bars,
jeweler's lugs and active or inactive locking bolts.
The scope also excludes metal storage devices that (1) have two
or more exterior exposed drawers regardless of the height of the
unit, or (2) are no more than 30 inches tall and have at least one
exterior exposed drawer.
Also excluded from the scope are free standing metal cabinets
less than 30 inches tall with a single opening, single door and an
installed tabletop.
The scope also excludes metal storage devices less than 27
inches wide and deep that (1) have two doors hinged on the right and
left side of the door frame respectively covering a single opening
and that open from the middle toward the outer frame; or (2) are
free standing or wall-mounted, single-opening units 20 inches or
less high with a single door.
The subject certain metal lockers are classified under
Harmonized Tariff Schedule
[[Page 35745]]
of the United States (HTSUS) subheading 9403.20.0078. Parts of
subject certain metal lockers are classified under HTS subheading
9403.90.8041. In addition, subject certain metal lockers may also
enter under HTS subheading 9403.20.0050. While HTSUS subheadings are
provided for convenience and Customs purposes, the written
description of the scope of this investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Analysis of Programs
VII. Analysis of Comments
Comment 1: Export Buyer's Credit Program
Comment 2: Whether Commerce Should Use Non-Alloy Hot-Rolled
Steel and Galvanized Steel Benchmarks
Comment 3: Whether Zhejiang Xingyi Verified the Accuracy of Its
Reported Purchases of Galvanized Steel and Stainless Steel Coil
Comment 4: Electricity for Less Than Adequate Remuneration
(LTAR) Program
Comment 5: Whether Commerce Should Continue To Apply AFA to the
Provision of Steel Inputs for LTAR
Comment 6: Most Favored Nation Duty Rates
VIII. Recommendation
[FR Doc. 2021-14316 Filed 7-6-21; 8:45 am]
BILLING CODE 3510-DS-P
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