Certain Steel Wheels (12-16.5 Inches Diameter) From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review, Rescission in Part, and Intent To Rescind in Part; 2019
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Issuing agencies
Abstract
The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain steel wheels (12-16.5 inches diameter) (certain steel wheels) from the People's Republic of China (China) during the February 25, 2019, through December 31, 2019, period of review (POR). Interested parties are invited to comment on these preliminary results.
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<title>Federal Register, Volume 86 Issue 129 (Friday, July 9, 2021)</title>
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[Federal Register Volume 86, Number 129 (Friday, July 9, 2021)]
[Notices]
[Pages 36250-36252]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-14638]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-091]
Certain Steel Wheels (12-16.5 Inches Diameter) From the People's
Republic of China: Preliminary Results of Countervailing Duty
Administrative Review, Rescission in Part, and Intent To Rescind in
Part; 2019
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of certain steel wheels (12-16.5 inches diameter) (certain
steel wheels) from the People's Republic of China (China) during the
February 25, 2019, through December 31, 2019, period of review (POR).
Interested parties are invited to comment on these preliminary results.
DATES: Applicable July 9, 2021.
FOR FURTHER INFORMATION CONTACT: Kyle Clahane, 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) 482-5449.
SUPPLEMENTARY INFORMATION:
Background
On September 1, 2020, Commerce published a notice of opportunity to
request administrative review of the countervailing duty (CVD) Order
\1\ covering the period February 25, 2019, through December 31,
2019.\2\ Several interested parties requested that Commerce conduct an
administrative review of the Order and, on February 6, 2021, Commerce
published in the Federal Register a notice of initiation of an
administrative review Order in relation to five parties.\3\ On January
14, 2020, Commerce selected Xingmin Intelligent Transportation Systems
(Group) and Zhejiang Jingu Company Limited (Zhejiang Jingu) as the
mandatory respondents in this administrative review.\4\
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\1\ See Certain Steel Trailer Wheels 12 to 16.5 Inches from the
People's Republic of China: Antidumping Duty and Countervailing Duty
Orders, 84 FR 45952 (September 3, 2019) (Order).
\2\ See Antidumping or Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity to Request Administrative
Review, 85 FR 54349 (September 1, 2020).
\3\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 85 FR 68840 (October 30, 2020) (Initiation
Notice).
\4\ See Memorandum, ``Respondent Selection,'' dated January 14,
2021.
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Subsequent to Commerce's selection of mandatory respondents, the
sole requests of the mandatory respondents were withdrawn.\5\ On
February 12, 2021, Commerce selected Xiamen Topu Imports & Export Co.,
Ltd (Xiamen Topu) as a replacement mandatory respondent, and on April
22, 2021, we selected Shanghai Yata Industry Company Limited (Shanghai
Yata) as an additional mandatory respondent in this administrative
review.\6\ On May 6, 2021, Zhejiang Jingu and Shanghai Yata withdrew
from participation in this administrative review.\7\ On May 27,
[[Page 36251]]
2021, Commerce extended the deadline for the preliminary results of
this review by 30 days.\8\ Accordingly, the deadline for the
preliminary results of this review was extended to July 2, 2021.
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\5\ See Trailstar's Letter, ``Withdrawal of Request for
Administrative Review of the Countervailing Duty Order on Certain
Steel Wheels 12 to 16.5 Inches in Diameter from the People Republic
of China,'' dated January 28, 2021.
\6\ See Memorandum, ``Respondent Selection: Selection of
Replacement Mandatory Respondent,'' dated February 12, 2021; see
also Memorandum, ``Respondent Selection: Selection of Replacement
Mandatory Respondent,'' dated April 22, 2021.
\7\ See Zhejiang Jingu's Letter, ``Notice Regarding
Participation in Administrative Review,'' dated May 6, 2021. In the
investigation, Commerce found that Shanghai Yata was affiliated
through cross-ownership with Zhejiang Jingu. Commerce also
determined that four other Chinese companies were cross-owned with
Zhejiang Jingu: Shangdong Jingu Auto Parts Co., Ltd.; An'Gang Jingu
(Hangzhou) Metal Materials Co., Ltd.; Zhejiang Wheel World Co.,
Ltd.; and Hangzhou Jingu New Energy Development Co. Ltd. See Certain
Steel Wheels 12 to 16.5 Inches in Diameter from the People's
Republic of China: Final Affirmative Countervailing Duty
Determination, and Final Affirmative Determination of Critical
Circumstances, 84 FR 32723 (July 9, 2019), and accompanying Issues
and Decisions Memorandum.
\8\ See Memorandum, ``Extension of Deadline for the Preliminary
Results of Countervailing Duty Administrative Review; 2019,'' dated
May 27, 2021.
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For events that occurred since the Initiation Notice, see the
Preliminary Decision Memorandum.\9\ A list of topics discussed in the
Preliminary Decision Memorandum is included in the appendix 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 <a href="https://access.trade.gov">https://access.trade.gov</a>. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at <a href="http://enforcement.trade.gov/frn/">http://enforcement.trade.gov/frn/</a>.
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\9\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of the Administrative Review of the Countervailing Duty
Order on Certain Steel Wheels (12-16.5 inches diameter) 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 Order
The products covered by the Order are certain on-the-road steel
wheels, discs, and rims for tubeless tires with a nominal wheel
diameter of 12 inches to 16.5 inches, regardless of width. For a
complete description of the scope of the Order, see the Preliminary
Decision Memorandum.
Methodology
Commerce is conducting this administrative review in accordance
with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the
Act). In reaching these preliminary results, Commerce relied on facts
otherwise available, with the application of adverse inferences.\10\
For further information, see ``Use of Facts Otherwise Available and
Application of Adverse Inferences'' in the accompanying Preliminary
Decision Memorandum.
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\10\ See section 776 of the Act.
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Partial Rescission of Administrative Review
Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an
administrative review, in whole or in part, if the parties that
requested a review withdraw the request within 90 days of the date of
publication of the notice of initiation. We received a timely
withdrawal of the requests for review, for which no other parties
requested a review, for Xingmin Intelligent Transportation Systems
(Group) (Xingmin Intelligent).\11\ Therefore, in accordance with 19 CFR
351.213(d)(1), Commerce is rescinding this review of the Order with
respect to this company.
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\11\ See TTT's Letter, ``Withdrawal of Request for
Administrative Review of the Countervailing Duty Order on Certain
Steel Wheels 12 to 16.5 Inches in Diameter from the People Republic
of China,'' dated January 15, 2021.
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Intent To Rescind Administrative Review, in Part
It is Commerce's practice to rescind an administrative review of a
countervailing duty order, pursuant to 19 CFR 351.213(d)(3), when there
are no reviewable entries of subject merchandise during the POR for
which liquidation is suspended.\12\ Normally, upon completion of an
administrative review, the suspended entries are liquidated at the
countervailing duty assessment rate calculated for the review
period.\13\ Therefore, for an administrative review of a company to be
conducted, there must be a reviewable, suspended entry that Commerce
can instruct CBP to liquidate at the calculated countervailing duty
assessment rate calculated for the review period.\14\
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\12\ See, e.g., Lightweight Thermal Paper from the People's
Republic of China: Notice of Rescission of Countervailing Duty
Administrative Review; 2015, 82 FR 14349 (March 20, 2017); see also
Circular Welded Carbon Quality Steel Pipe from the People's Republic
of China: Rescission of Countervailing Duty Administrative Review;
2017, 84 FR 14650 (April 11, 2019).
\13\ See 19 CFR 351.212(b)(2).
\14\ See 19 CFR 351.213(d)(3).
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According to the CBP import data, one of the five companies subject
to this review, Hangzhou Antego Industry Co. Ltd, which was not chosen
as a mandatory respondent and for which its request for review was not
withdrawn, did not have reviewable entries of subject merchandise
during the POR for which liquidation is suspended. Accordingly, in the
absence of reviewable, suspended entries of subject merchandise during
the POR by Hangzhou Antego Industry Co. Ltd, we intend to rescind this
administrative review, with respect to Hangzhou Antego Industry Co.
Ltd, in accordance with 19 CFR 351.213(d)(3).
Use of Facts Otherwise Available and Application of Adverse Inferences
Subsequent to the initiation of this administrative review,
Commerce issued initial questionnaires to the Government of China (GOC)
dated January 21, 2021, February 16, 2021 and April 22, 2021, with a
request for the GOC to forward the questionnaires to the
respondents.\15\ The GOC, Shanghai Yata, and Xiamen Topu failed to
respond to the questionnaire by the specified deadlines. Therefore,
because necessary information is not available on the record and
because Shanghai Yata, Xiamen Topu, and the GOC failed to respond to
Commerce's request for information, we preliminarily find that the use
of facts available is warranted, pursuant to sections 776(a)(1) and
776(a)(2)(A), (B) and (C) of the Tariff Act of 1930, as amended (the
Act). Moreover, because Shanghai Yata, Xiamen Topu, and the GOC did not
cooperate to the best of their ability, pursuant to 776(b) of the Act,
we preliminarily find that use of adverse facts available (AFA) is
warranted to ensure that Shanghai Yata and Xiamen Topu do not obtain a
more favorable result by failing to cooperate than if they had fully
complied with our requests for information.
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\15\ See Commerce's Letter, ``Countervailing Duty
Questionnaire,'' dated January 21, 2021 (Initial Questionnaire); see
also Commerce's Letter, ``Selection of Replacement Mandatory
Respondent,'' dated February 16, 2021; and Commerce's Letter,
``Selection of Additional Replacement Respondent,'' dated April 22,
2021. In its letter to the GOC, Commerce established the deadlines
of March 2, 2021 for the Section III response identifying affiliated
companies, and of March 25, 2021 for the remainder of Section III
and the GOC's responses to the remainder of the Initial
Questionnaire.
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In the investigation, we determined that Shanghai Yata was cross-
owned with Zhejiang Jingu during the periods of time relevant to the
investigation.\16\ Since the record of this administrative review
contains no factual information that would lead Commerce to reconsider
this cross-ownership determination, we preliminarily determine that
Shanghai Yata remained cross-owned with Zhejiang Jingu during the POR.
Accordingly, Zhejiang Jingu and its cross-owned companies, including
Shanghai Yata are subject to the AFA
[[Page 36252]]
rate. For further information, see ``Use of Facts Otherwise Available
and Adverse Inferences'' in the Preliminary Decision Memorandum.\17\
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\16\ See Certain Steel Wheels 12 to 16.5 Inches in Diameter from
the People's Republic of China: Final Affirmative Countervailing
Duty Determination, and Final Affirmative Determination of Critical
Circumstances, 84 FR 32723 (July 9, 2019), and accompanying Issues
and Decisions Memorandum (IDM). During the CVD investigation of
certain steel wheels from China, Commerce determined that Zhejiang
Jingu and Shanghai Yata were cross-owned companies. While the
company that requested a review of Zhejiang Jingu withdrew its
request for Zhejiang Jingu, Shanghai Yata remained in the
administrative review because the company that filed a request for
review of Shanghai Yata did not withdraw its request for review.
Thus, because Shanghai Yata was still subject to the administrative
review, we issued an initial questionnaire to Shanghai Yata. All
cross-owned companies of Shanghai Yata were required to file a
response to the questionnaire, including Zhejiang Jingu, if the
companies remain cross-owned during the POR.
\17\ See Preliminary Decision Memorandum at 5.
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Preliminary Results of Review
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Net
subsidy
Company rate ad
valoreum
(percent)
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Zhejiang Jingu Company Limited and Shanghai Yata Industry 388.31
Company Limited \18\.......................................
Xiamen Topu Imports & Export Co., Ltd....................... 388.31
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Disclosure
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\18\ In the investigation, we found that Zhejiang Jingu was
cross-owned with An Gang Jingu (Hangzhou) Metal Materials Co., Ltd.;
Hangzhou Jingu New Energy Development Co. Ltd.; Shangdong Jingu Auto
Parts Co., Ltd.; Zhejiang Jingu Automobile Components; Zhejiang
Wheel World Co., Ltd.; and Shanghai Yata Industry Company Limited.
There is no information on the record of this administrative review
that would lead Commerce to reconsider that determination,
therefore, we preliminarily continue to find these companies cross-
owned.
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Normally, Commerce discloses to interested parties the calculations
performed in connection with the preliminary results of a review within
ten days of its public announcement, or if there is no public
announcement, within five days of the date of publication of the notice
of preliminary results in the Federal Register, in accordance with 19
CFR 351.224(b). However, because Commerce preliminarily applied AFA to
the three companies that remain in the administrative review, in
accordance with section 776 of the Act, and because our calculation of
the AFA subsidy rate is outlined in the Preliminary Decision
Memorandum,\19\ there are no further calculations to disclose.
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\19\ Id.
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Public Comment
Interested parties may submit case briefs no later than 30 days
after the date of publication of these preliminary results of
review.\20\ Rebuttals to case briefs may be filed no later than seven
days after the case briefs are filed, and all rebuttal comments must be
limited to comments raised in the case briefs.\21\ Note that Commerce
has temporarily modified certain of its requirements for serving
documents containing business proprietary information until further
notice.\22\
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\20\ See 19 CFR 351.309(c).
\21\ See 19 CFR 351.309(d).
\22\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18,
2020); and Temporary Rule Modifying AD/CVD Service Requirements Due
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10,
2020).
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Assessment Rates
In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily
assigned subsidy rates in the amounts shown above for the companies
shown above. Upon completion of the administrative review, consistent
with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2) Commerce
shall determine, and CBP shall assess, countervailing duties on all
appropriate entries covered by this review. For the companies for which
this review is rescinded, Commerce will instruct CBP to assess
countervailing duties on all appropriate entries at a rate equal to the
cash deposit of estimated countervailing duties required at the time of
entry, or withdrawal from warehouse, for consumption, during the period
February 25, 2019 through December 31, 2019, in accordance with 19 CFR
351.212(c)(l)(i).
Commerce intends to issue assessment instructions to CBP no earlier
than 35 days after the date of publication of the final results of this
review in the Federal Register. If a timely summons is filed at the
U.S. Court of International Trade, the assessment instructions will
direct CBP not to liquidate relevant entries until the time for parties
to file a request for a statutory injunction has expired (i.e., within
90 days of publication).
Cash Deposit Requirements
In accordance with section 751(a)(1) of the Act, Commerce intends,
upon publication of the final results, to instruct CBP to collect cash
deposits of estimated countervailing duties in the amounts shown for
each of the respective companies listed above on shipments of subject
merchandise entered, or withdrawn from warehouse, for consumption on or
after the date of publication of the final results of this
administrative review. For all non-reviewed firms, we will instruct CBP
to continue to collect cash deposits at the most recent company-
specific or all-others rate applicable to the company. These cash
deposit requirements, when imposed, shall remain in effect until
further notice.
Notification to Interested Parties
These preliminary results are issued and published pursuant to
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).
Dated: July 1, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Intent To Rescind Administrative Review, In Part
IV. Partial Rescission of Administrative Review
V. Scope of the Order
VI. Use of Facts Otherwise Available and Application of Adverse
Inferences
a. Legal Standard
b. Application of AFA to the GOC and Non-Responsive Mandatory
Respondents Shanghai Yata Xiamen Topu, and Zhejiang Jingu
c. Selection of the AFA Rates
VII. Conclusion
[FR Doc. 2021-14638 Filed 7-8-21; 8:45 am]
BILLING CODE 3510-DS-P
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