Notice2021-22705
Certain Mobile Access Equipment and Subassemblies 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
October 19, 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 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.
Full Text
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<title>Federal Register, Volume 86 Issue 199 (Tuesday, October 19, 2021)</title>
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[Federal Register Volume 86, Number 199 (Tuesday, October 19, 2021)]
[Notices]
[Pages 57809-57812]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-22705]
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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: 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 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.
DATES: Applicable October 19, 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
The petitioner in this investigation is the Coalition of American
Manufacturers of Mobile Access Equipment. In addition to the Government
of China, the selected mandatory respondents are Zhejiang Dingli
Machinery Co., Ltd. (Dingli) and Lingong Group Jinan Heavy Machinery
Co., Ltd. (LGMG).
On July 30, 2021, Commerce published the Preliminary Determination
in the Federal Register.\1\ A summary of the events that occurred since
Commerce published the Preliminary Determination may be found in the
Issues and Decision Memorandum.\2\ 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="http://access.trade.gov">http://access.trade.gov</a>. A list of topics discussed in the Issues and
Decision Memorandum is included at Appendix II. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\1\ See Certain Mobile Access Equipment and Subassemblies
Thereof from the People's Republic of China: Preliminary Affirmative
Countervailing Duty Determination, 85 FR 80771 (December 14, 2020)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum.
\2\ See Memorandum, ``Certain Mobile Access Equipment and
Subassemblies Thereof from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are mobile access
equipment from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
On July 26, 2021, we issued the Preliminary Scope Decision
Memorandum.\3\ We received comments from interested parties on the
Preliminary Scope Decision Memorandum, which we addressed in the Final
Scope Decision Memorandum.\4\ Commerce is modifying the scope language
as it appeared in the Preliminary Determination. See Appendix I for the
final scope of this investigation.
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\3\ 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 July 26, 2021 (Preliminary Scope Decision Memorandum).
\4\ See Memorandum, ``Antidumping Duty and Countervailing Duty
Investigations of Certain Mobile Access Equipment and Subassemblies
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 issue
raised by parties, and to which we responded in the Issue and Decision
Memorandum, is attached to this notice at Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (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,
[[Page 57810]]
and that the subsidy is specific.\5\ For a full description of the
methodology underlying our final determination, see the Issues and
Decision Memorandum.
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\5\ 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 is relying, in part,
on facts otherwise available, including adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of AFA, see the Preliminary Determination and the
section ``Use of Facts Otherwise Available and Adverse Inference'' in
the accompanying Issues and Decision Memorandum.\6\
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\6\ See Preliminary Decision Memorandum at ``Use of Facts
Otherwise Available and Adverse Inferences;'' see also Issues and
Decision Memorandum at ``Use of Facts Otherwise Available and
Adverse Inference.''
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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.\7\
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\7\ See Commerce's Letters, ``Certain Mobile Access Equipment
and Subassemblies Thereof from the People's Republic of China:
Zhejiang Dingli Machinery Co., Ltd. Verification Questionnaire,''
and ``Certain Mobile Access Equipment and Subassemblies Thereof from
the People's Republic of China: Lingong Group Jinan Heavy Machinery
Co., Ltd. Verification Questionnaire,'' both dated August 17, 2021.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, as well as additional information collected in questionnaires
issued subsequent to the Preliminary Determination, we made certain
changes to Dingli's and LGMG's subsidy rate calculations, the rate for
non-cooperating respondents, and the all-others rate. For a discussion
of these changes, see the Issues and Decision Memorandum.
All-Others Rate
We continue to calculate the all-others rate using a weighted
average of the individual estimated subsidy rates calculated for the
examined respondents (Dingli and LGMG) using each company's publicly-
ranged data for the value of their exports to the United States of
subject merchandise.\8\
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\8\ See Preliminary Determination, 85 FR at 41013; see also
Memorandum, ``Countervailing Duty Investigation of Certain Mobile
Access Equipment and Subassemblies Thereof from the People's
Republic of China; Revised All-Others Calculation for the Final
Determination,'' dated concurrently with this memorandum.
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Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
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Subsidy
Company rate
(percent)
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Lingong Group Jinan Heavy Machinery Co., Ltd \9\........... 18.34
Zhejiang Dingli Machinery Co., Ltd \10\.................... 11.95
Jinan Zhongtian International Trading \11\................. 448.70
Zhongshan Shiliwang Machinery Co., LTD \12\................ 448.70
Yantai Empire Industry and Trade \13\...................... 448.70
Shandong Lede Machinery \14\............................... 448.70
Shandong Huifeng Auto Fittings \15\........................ 448.70
Jinan Zhongtang Mechanical Equipment \16\.................. 448.70
All Others................................................. 12.93
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Disclosure
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\9\ Cross-owned affiliate is Linyi Lingong Machinery Group Co.,
Ltd.
\10\ Cross-owned affiliates are Zhejiang Green Power Machinery
Co., Ltd. and Shengda Fenghe Automotive Equipment Co., Ltd.
\11\ See Preliminary Decision Memorandum at section
``Application of AFA: Non-Responsive Companies.''
\12\ Id.
\13\ Id.
\14\ Id.
\15\ Id.
\16\ Id.
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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 from China that were entered, or withdrawn from
warehouse, for consumption, effective July 30, 2021, which is the date
of publication of the Preliminary Determination in the Federal
Register.
In accordance with section 705(c)(1)(C) of the Act, we will direct
CBP to continue to suspend liquidation of all imports of the subject
merchandise from China that are entered, or withdrawn from warehouse,
for consumption on or after the date of publication of this notice in
the Federal Register. The suspension of liquidation instructions will
remain in effect until further notice. We are also directing CBP to
collect countervailing duty deposits at the rates described above.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, and
continue to 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.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of mobile
access equipment 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 mobile access
equipment from China no later than 45 days after our final
determination. In addition, we are making available to the ITC all non-
privileged and nonproprietary information related to this
investigation. 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. We will
allow the ITC access to all privileged and business proprietary
information in our files, provided the ITC confirms that it will not
disclose such information, either publicly or under an administrative
protective order (APO), without the written consent of the Assistant
Secretary for Enforcement and Compliance.
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Notification Regarding APOs
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 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: October 12, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the 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 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/or (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. Subsidies Valuation
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Analysis of Programs
VI. Analysis of Comments
General Issues
Comment 1: Countervailability of the Provision of Certain Inputs
and Services for Less Than Adequate Remuneration (LTAR)
Comment 2: Countervailability of the Provision of Electricity
for LTAR
Comment 3: Countervailability of Other Subsidies
Comment 4: Currency Undervaluation
Comment 5: Export Buyer's Credit
Comment 6: Whether to Average Dingli's Steel Benchmark Sources
with UN Comtrade Data
Comment 7: Benchmarks for the Provision of Hot-Rolled Steel
Sheet and Plate for LTAR
Comment 8: Benchmarks for the Provision of Ocean Shipping
Services for LTAR and Ocean Freight in Input LTARs
Comment 9: Certain UN Comtrade Benchmarks
Dingli Issues
Comment 10: Whether Commerce Erred in Calculating Dingli's Use
of the Provision of Cold-Rolled Steel for LTAR
Comment 11: Whether Commerce Should Use Dingli's Consolidated
Sales as the Denominator
LGMG Issues
Comment 12: Whether Commerce Should Countervail LGMG's Off-the-
Road (OTR) Tires
Comment 13: Whether Commerce Should Countervail Lithium-Ion
Batteries for LTAR
Comment 14: Whether Commerce Should Reconsider the Benchmark for
Diesel
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Engines and Which Diesel Engines Are Countervailable
Comment 15: Whether Commerce Should Revise LGMG's Reported Total
Sales Value
Comment 16: Whether Commerce Should Include an Additional
``Other Subsidy Program'' in LGMG's Overall Subsidy Rate
VII. Recommendation
[FR Doc. 2021-22705 Filed 10-18-21; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on October 19, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.