Notice2021-16332
Certain Mobile Access Equipment and Subassemblies Thereof From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination
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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 30, 2021
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain mobile access equipment and subassemblies thereof (mobile access equipment) from the People's Republic of China (China). The period of investigation is January 1, 2020, through December 31, 2020. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 86 Issue 144 (Friday, July 30, 2021)</title>
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[Federal Register Volume 86, Number 144 (Friday, July 30, 2021)]
[Notices]
[Pages 41013-41015]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-16332]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-140]
Certain Mobile Access Equipment and Subassemblies Thereof From
the People's Republic of China: Preliminary Affirmative Countervailing
Duty Determination
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 mobile access equipment and subassemblies thereof
(mobile access equipment) from the People's Republic of China (China).
The period of investigation is January 1, 2020, through December 31,
2020. Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable July 30, 2021.
FOR FURTHER INFORMATION CONTACT: Theodore Pearson or Michael Romani,
AD/CVD Operations, Office I, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-2631 or (202)
482-0198, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Trade Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on March 25,
2021.\1\ On May 4, 2021, Commerce postponed the preliminary
determination of this investigation, and the revised deadline is now
July 26, 2021.\2\
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\1\ See Certain Mobile Access Equipment and Subassemblies
Thereof from the People's Republic of China: Initiation of
Countervailing Duty Investigation, 86 FR 15905 (March 25, 2021)
(Initiation Notice).
\2\ See Certain Mobile Access Equipment and Subassemblies
Thereof from the People's Republic of China: Postponement of
Preliminary Determination in the Countervailing Duty Investigation,
86 FR 23681 (May 4, 2021).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ 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 <a href="http://access.trade.gov">http://access.trade.gov</a>.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Countervailing Duty Investigation of Certain
Mobile Access Equipment and Subassemblies Thereof 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 certain mobile
access equipment 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,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ We received
comments regarding the scope, which we have addressed in the
Preliminary Scope Memorandum.\6\
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Certain Mobile Access Equipment and
Subassemblies Thereof from the People's Republic of China: Scope
Comments Decision Memorandum for the Preliminary Determination,''
dated concurrently with, and hereby adopted by, this notice
(Preliminary Scope 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
countervailable, Commerce preliminarily 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\
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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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Commerce notes that, in making these findings, it relied, in part,
on facts available and, because it finds that one or more respondents
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.\8\
For further information, see ``Use of Facts Otherwise Available and
Adverse Inferences'' in the Preliminary Decision Memorandum.
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\8\ See sections 776(a) and (b) of the Act.
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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. 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 Preliminary Decision
Memorandum, Commerce calculated individual estimated countervailable
subsidy rates for Lingong Group Jinan Heavy Machinery Co., Ltd. (LGMG)
and Zhejiang Dingli Machinery Co., Ltd. (Dingli) that were not zero, de
minimis, or based entirely under section 776 of the Act. For the
companies not individually examined,\9\ we are applying to the non-
selected companies the average of the net subsidy rates calculated for
LGMG and Dingli, which we calculated using the publicly ranged sales
data submitted by LGMG and Dingli.\10\ This methodology to establish
the all-others subsidy rate is consistent with our practice and section
705(c)(5)(A) of the Act.
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\9\ Excluding companies determined to be non-responsive. See
Preliminary Determination Memorandum at section ``Application of
AFA: Non-Responsive Companies'' for details.
\10\ With two respondents under examination, Commerce normally
calculates (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale quantities for the merchandise under consideration. Commerce
then compares (B) and (C) to (A) and selects the rate closest to (A)
as the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010).
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent)
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Lingong Group Jinan Heavy Machinery Co., Ltd\11\........ 4.09
Zhejiang Dingli Machinery Co., Ltd\12\.................. 23.43
Jinan Zhongtian International Trading \13\.............. 435.06
Zhongshan Shiliwang Machinery Co., LTD \14\............. 435.06
Yantai Empire Industry and Trade \15\................... 435.06
Shandong Lede Machinery \16\............................ 435.06
Shandong Huifeng Auto Fittings \17\..................... 435.06
Jinan Zhongtang Mechanical Equipment \18\............... 435.06
Lingong Group Jinan Heavy Machinery (Mobile Elevating 435.06
Work Platforms) \19\...................................
All Others.............................................. 20.47
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Suspension of Liquidation
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\11\ Cross-owned affiliate is Linyi Lingong Machinery Group Co.,
Ltd.
\12\ Cross-owned affiliates are Zhejiang Green Power Machinery
Co., Ltd. and Shengda Fenghe Automotive Equipment Co., Ltd.
\13\ See Preliminary Decision Memorandum at section
``Application of AFA: Non-Responsive Companies.''
\14\ Id.
\15\ Id.
\16\ Id.
\17\ Id.
\18\ Id.
\19\ Id.
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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 section 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.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Normally, Commerce verifies information using standard procedures,
including an on-site examination of original accounting, financial, and
sales documentation. However, due to current travel restrictions in
response to the global COVID-19 pandemic, Commerce may be unable to
conduct on-site verification in this investigation. While we consider
the possibility of conducting an on-site verification for some of the
information submitted by the respondents, we may also need to verify
the information relied upon in making the final determination through
alternative means in lieu of an on-site verification. Commerce intends
to notify parties of its verification procedures.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Commerce will
notify interested parties of the deadline for the submission of case
briefs. Rebuttal briefs, limited to issues raised in case briefs, may
be submitted no later than seven days after the deadline date for case
briefs.\20\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in this investigation are
encouraged to submit with each argument: (1) A statement of the issue;
(2) a brief summary of the argument; and (3) a table of authorities.
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\20\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements); Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020)
(Temporary Rule); and 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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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 within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date and time of
the hearing two days before the scheduled date.
Parties are reminded that briefs and hearing requests are to be
filed electronically using ACCESS and that electronically filed
documents must be received successfully in their entirety by 5 p.m.
Eastern Time on the due date. Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\21\
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\21\ See Temporary Rule.
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International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (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.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: July 26, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation consists of
certain mobile access equipment, which consists primarily of boom
lifts, scissor lifts, and material telehandlers, and subassemblies
thereof. Mobile access equipment combines a mobile (self-propelled
or towed) chassis, with a lifting device (e.g., scissor arms, boom
assemblies) for mechanically lifting persons, tools and/or materials
capable of reaching a working height of ten feet or more, and a
coupler that provides an attachment point for the lifting device, in
addition to other components. The scope of this investigation covers
mobile access equipment and subassemblies thereof whether finished
or
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unfinished, whether assembled or unassembled, and whether the
equipment contains any additional features that provide for
functions beyond the primary lifting function.
Subject merchandise includes, but is not limited to, the
following subassemblies:
<bullet> Scissor arm assemblies, or scissor arm sections, for
connection to chassis and platform assemblies. These assemblies
include: (1) Pin assemblies that connect sections to form scissor
arm assemblies, and (2) actuators that power the arm assemblies to
extend and retract. These assemblies may or may not also include
blocks that allow sliding of end sections in relation to frame and
platform, hydraulic hoses, electrical cables, and/or other
components;
<bullet> boom assemblies, or boom sections, for connection to
the boom turntable, or to the chassis assembly, or to a platform
assembly or to a lifting device. Boom assemblies include telescoping
sections where the smallest section (or tube) can be nested in the
next larger section (or tube) and can slide out for extension and/or
articulated sections joined by pins. These assemblies may or may not
include pins, hydraulic cylinders, hydraulic hoses, electrical
cables, and/or other components;
<bullet> chassis assemblies, for connection to scissor arm
assemblies, or to boom assemblies, or to boom turntable assemblies.
Chassis assemblies include: (1) Chassis frames, and (2) frame
sections. Chassis assemblies may or may not include axles, wheel end
components, steering cylinders, engine assembly, transmission, drive
shafts, tires and wheels, crawler tracks and wheels, fuel tank,
hydraulic oil tanks, battery assemblies, and/or other components;
<bullet> boom turntable assemblies, for connection to chassis
assemblies, or to boom assemblies. Boom turntable assemblies include
turntable frames. Boom turntable assemblies may or may not include
engine assembly, slewing rings, fuel tank, hydraulic oil tank,
battery assemblies, counterweights, hoods (enclosures), and/or other
components.
Importation of any of these subassemblies, whether assembled or
unassembled, constitutes unfinished mobile access equipment for
purposes of this investigation.
Processing of finished and unfinished mobile access equipment
and subassemblies such as trimming, cutting, grinding, notching,
punching, slitting, drilling, welding, joining, bolting, bending,
beveling, riveting, minor fabrication, galvanizing, painting,
coating, finishing, assembly, or any other processing either in the
country of manufacture of the in-scope product or in a third country
does not remove the product from the scope. Inclusion of other
components not identified as comprising the finished or unfinished
mobile access equipment does not remove the product from the scope.
The scope excludes forklifts, vertical mast lifts, mobile self-
propelled cranes and motor vehicles that incorporate a scissor arm
assembly or boom assembly. Forklifts are material handling vehicles
with a working attachment, usually a fork, lifted along a vertical
guide rail with the operator seated or standing on the chassis
behind the vertical mast. Vertical mast lifts are person and
material lifting vehicles with a working attachment, usually a
platform, lifted along a vertical guide rail with an operator
standing on the platform. Mobile self-propelled cranes are material
handling vehicles with a boom attachment for lifting loads of tools
or materials that are suspended on ropes, cables, and/or chains, and
which contain winches mounted on or near the base of the boom with
ropes, cables, and/or chains managed along the boom structure. The
scope also excludes motor vehicles (defined as a vehicle driven or
drawn by mechanical power and manufactured primarily for use on
public streets, roads, and highways, but does not include a vehicle
operated only on a rail line pursuant to 49 U.S.C. 30102(a)(7)) that
incorporate a scissor arm assembly or boom assembly. The scope
further excludes vehicles driven or drawn by mechanical power
operated only on a rail line that incorporate a scissor arm assembly
or boom assembly. The scope also excludes: (1) Rail line vehicles,
defined as vehicles with hi-rail gear or track wheels, and a fixed
(non-telescopic) main boom, which perform operations on rail lines,
such as laying rails, setting ties, or other rail maintenance jobs;
and (2) certain rail line vehicle subassemblies, defined as chassis
subassemblies and boom turntable subassemblies for rail line
vehicles with a fixed (non-telescopic) main boom.
Certain mobile access equipment subject to this investigation is
typically classifiable under subheadings 8427.10.8020, 8427.10.8030,
8427.10.8070, 8427.10.8095, 8427.20.8020, 8427.20.8090, 8427.90.0020
and 8427.90.0090 of the Harmonized Tariff Schedule of the United
States (HTSUS). Parts of certain mobile access equipment are
typically classifiable under subheading 8431.20.0000 of the HTSUS.
While the HTSUS subheadings are provided for convenience and customs
purposes only, the written description of the merchandise under
investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Injury Test
V. Scope Comments
VI. Scope of the Investigation
VII. Diversification of China's Economy
VIII. Use of Facts Otherwise Available and Application of Adverse
Inferences
IX. Subsidies Valuation
X. Interest Rate Benchmarks, Discount Rates, Input, Electricity, and
Land Benchmarks
XI. Analysis of Programs
XII. Recommendation
[FR Doc. 2021-16332 Filed 7-29-21; 8:45 am]
BILLING CODE 3510-DS-P
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