Notice2021-23231
Freight Rail Coupler Systems and Certain Components Thereof From the People's Republic of China: Initiation of Less-Than-Fair-Value Investigation
Primary source
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Published
October 25, 2021
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 86 Issue 203 (Monday, October 25, 2021)</title>
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[Federal Register Volume 86, Number 203 (Monday, October 25, 2021)]
[Notices]
[Pages 58864-58869]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-23231]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-143]
Freight Rail Coupler Systems and Certain Components Thereof From
the People's Republic of China: Initiation of Less-Than-Fair-Value
Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce
DATES: Applicable October 19, 2021.
FOR FURTHER INFORMATION CONTACT: Mark Harrison, AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230; telephone: (202) 482-0357.
SUPPLEMENTARY INFORMATION:
The Petition
On September 29, 2021, the U.S. Department of Commerce (Commerce)
received an antidumping duty (AD) petition concerning imports of
freight rail coupler systems and certain components thereof (freight
rail couplers) from the People's Republic of China (China) filed in
proper form on behalf of the Coalition of Freight Coupler Producers
(the petitioner).\1\ On October 6, 2021, the petitioner filed an
amendment to the Petition, clarifying the identity of the members of
the Coalition of Freight Coupler Producers, the members of which are,
or represent, domestic producers of freight rail couplers.\2\ The
Petition was accompanied by a countervailing duty (CVD) petition
concerning imports of freight rail couplers from China.\3\
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\1\ See Petitioner's Letter, ``Certain Freight Rail Coupler
Systems and Components Thereof from the People's Republic of China:
Petitions for the Imposition of Antidumping and Countervailing
Duties,'' dated September 29, 2021 (the Petition).
\2\ See Petitioner's Letters, ``Amended Entry of Appearance: A-
570-143,'' dated October 6, 2021 (Amended EOA) and ``Freight Rail
Coupler Systems and Certain Components Thereof from the People's
Republic of China: Response to First Supplemental Questions for on
Volume I General Issues and Injury Petition,'' dated October 6, 2021
(First General Issues Supplement). The petitioner notes that, per
the Amended EOA, the members of the Coalition of Freight Coupler
Producers are: McConway & Torley, LLC and the United Steel, Paper &
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and
Service Worker International Union, AFL-CIO, CLC (the USW). The
petitioner further notes that Amsted Rail Company, Inc. (Amsted) is
no longer a member of the petitioning coalition and that the USW
represents the workers at Amsted's Granite, IL facility. See First
General Issues Supplement at 8.
\3\ See the Petition.
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On October 1, 4, 8, and 15, 2021, Commerce requested supplemental
information pertaining to certain aspects of the Petition in both
general and AD-specific separate supplemental questionnaires and phone
calls with the petitioner.\4\ On October 6, 12, and 18,
[[Page 58865]]
2021, the petitioner filed timely responses to these requests for
additional information.\5\
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\4\ See Commerce's Letters, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Freight
Rail Coupler Systems and Components Thereof from the People's
Republic of China: Supplemental Questions,'' dated October 4, 2021
(General Issues Supplemental); ``Petition for the Imposition of
Antidumping Duties on Imports of Certain Freight Rail Coupler
Systems and Components Thereof from the People's Republic of China:
Supplemental Questions,'' dated October 4, 2021; Memorandum,
``Petitions for the Imposition of Antidumping and Countervailing
Duties on Imports of Certain Freight Rail Coupler Systems and
Components Thereof from the People's Republic of China: Phone Call
with Counsel to the Petitioner,'' dated October 4, 2021 (October 4,
2021, Phone Call Memorandum); Memorandum, ``Petitions for the
Imposition of Antidumping and Countervailing Duties on Imports of
Certain Freight Rail Coupler Systems and Components Thereof from the
People's Republic of China: Phone Call with Counsel to the
Petitioner,'' dated October 8, 2021 (October 8, 2021, Phone Call
Memorandum); and Memorandum, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Freight
Rail Coupler Systems and Components Thereof from the People's
Republic of China: Phone Call with Counsel to the Petitioner,''
dated October 15, 2021 (October 15, 2021, Phone Call Memorandum).
\5\ See Petitioner's Letters, ``Freight Rail Coupler Systems and
Components Thereof from the People's Republic of China: Responses to
Supplemental Questions for on Volume I General Issues and Injury
Petition,'' dated October 6, 2021 (First General Issues Supplement);
``Certain Freight Rail Coupler Systems and Components Thereof from
the People's Republic of China: Response to Supplemental Questions
for Volume II China Antidumping Duty Petition,'' dated October 6,
2021; ``Freight Rail Car Coupler Systems and Certain Components
Thereof from the People's Republic of China: Response to Second
Supplemental Questions on Volume I General Issues and Injury
Petition,'' dated October 12, 2021 (Second General Issues
Supplement); and ``Freight Rail Car Coupler Systems and Certain
Components Thereof from the People's Republic of China: Response to
Third Supplemental Questions on Volume I General Issues and Injury
Petition,'' dated October 18, 2021 (Scope Clarification).
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of freight rail
couplers from China are being, or are likely to be, sold in the United
States at less than fair value (LTFV) within the meaning of section 731
of the Act and that imports of such products are materially injuring,
or threatening material injury to, the domestic freight rail couplers
industry in the United States. Consistent with section 732(b)(1) of the
Act, the Petition is accompanied by information reasonably available to
the petitioner supporting the allegation.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry because the petitioner is an interested party, as
defined in section 771(9)(E) of the Act. Commerce also finds that the
petitioner demonstrated sufficient industry support for the initiation
of the requested AD investigation.\6\
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\6\ See ``Determination of Industry Support for the Petition''
section, infra.
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Period of Investigation
Because China is a non-market economy (NME) country, pursuant to 19
CFR 351.204(b)(1), the period of investigation (POI) is January 1,
2021, through June 30, 2021.
Scope of the Investigation
The product covered by this investigation is freight rail couplers
from China. For a full description of the scope of this investigation,
see the appendix to this notice.
Comments on the Scope of the Investigation
On October 4, 8, and 15, 2021, Commerce requested further
information from the petitioner regarding the proposed scope to ensure
that the scope language in the Petition is an accurate reflection of
the products for which the domestic industry is seeking relief.\7\ On
October 6, 12, and 18, 2021, the petitioner revised the scope.\8\ The
description of the merchandise covered by this investigation, as
described in the appendix to this notice, reflects these
clarifications. In its October 18, 2021, submission, the petitioner
provided additional explanation of the language in the scope of the
investigation pertaining to the inclusion of freight rail couplers
imported as part of a rail car (``{w{time} hen mounted on or to other
non-subject merchandise, such as a rail car, only the complete coupler
system is covered by the scope''), including freight rail couplers
attached to rail cars in, and imported from, third countries
(``{s{time} ubject merchandise includes coupler components as defined
above that have been further processed or further assembled, including
those coupler components attached to a rail car in third
countries.'').\9\ While Commerce has adopted this provision for
purposes of initiation, we invite parties to this proceeding to comment
on this provision along with their scope comments (as detailed below).
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\7\ See General Issues Supplemental; see also October 4, 2021,
Phone Call Memorandum; October 8, 2021, Phone Call Memorandum; and
October 15, 2021, Phone Call Memorandum.
\8\ See First General Issues Supplement at 1-7 and Exhibit I-
Supp-1; see also Second General Issues Supplement at 1-4 and Exhibit
I-2Supp-1; see also Scope Clarification at 1-9 and Exhibit I-3Supp-
1.
\9\ See Scope Clarification.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\10\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information, all such
factual information should be limited to public information.\11\ To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit such comments by 5:00 p.m. Eastern Time
(ET) on November 8, 2021, which is 20 calendar days from the signature
date of this notice. Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on November 18, 2021, which
is 10 calendar days from the initial comment deadline.\12\
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\10\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\11\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\12\ See 19 CFR 351.303(b).
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Commerce requests that any factual information that parties
consider relevant to the scope of the investigation be submitted during
this period. However, if a party subsequently finds that additional
factual information pertaining to the scope of the investigation may be
relevant, the party may contact Commerce and request permission to
submit the additional information. All scope submissions must be filed
on the records of the concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's (E&C's) Antidumping Duty and
Countervailing Duty Centralized Electronic Service System (ACCESS),
unless an exception applies.\13\ An electronically filed document must
be received successfully in its entirety by the time and date it is
due.
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\13\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on help using
ACCESS can be found at <a href="https://access.trade.gov/help.aspx">https://access.trade.gov/help.aspx</a> and a
handbook can be found at <a href="https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf">https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf</a>.
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Comments on Product Characteristics
Commerce is providing interested parties an opportunity to comment
on the appropriate physical characteristics of freight rail couplers to
be reported in response to Commerce's AD questionnaires. This
information will be used to identify the key physical characteristics
of the subject merchandise in order to report the relevant factors of
production (FOPs) accurately, as well as to develop appropriate
product-comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. In order to consider the suggestions of
interested parties in developing and issuing the AD questionnaires, all
product characteristics comments must be filed by 5:00 p.m. ET on
November 8, 2021, which is 20 calendar days from the signature date of
this notice. Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on November 18, 2021, which
is 10 calendar days after the
[[Page 58866]]
initial comment deadline. All comments and submissions to Commerce must
be filed electronically using ACCESS, as explained above, on the record
of the AD investigation.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\14\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\15\
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\14\ See section 771(10) of the Act.
\15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F. 2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\16\ Based on our analysis of the information
submitted on the record, we have determined that freight rail couplers,
as defined in the scope, constitute a single domestic like product, and
we have analyzed industry support in terms of that domestic like
product.\17\
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\16\ See Petition at Volume I at 16-21 and Exhibits I-4, I-7,
and I-15; see also First General Issues Supplement at 10-11; and
Second General Issues Supplement at 6-7.
\17\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Checklist, ``Antidumping Duty Investigation Initiation Checklist:
Certain Freight Rail Coupler Systems and Components Thereof from the
People's Republic of China,'' dated concurrently with this Federal
Register notice (China AD Initiation Checklist) at Attachment II,
Analysis of Industry Support for the Antidumping and Countervailing
Duty Petitions Covering Certain Freight Rail Coupler Systems and
Components Thereof from the People's Republic of China (Attachment
II).
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own production of freight rail couplers in 2020.\18\ The petitioner
estimated production for the only other known producer of freight rail
couplers in the United States.\19\ The petitioner compared its
production to the estimated total 2020 production of the domestic like
product for the entire domestic industry.\20\ We relied on data
provided by the petitioner for purposes of measuring industry
support.\21\
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\18\ See Petition at Volume I at 3-4; see also First General
Issues Supplement at 8-10 and Exhibit I-Supp-2; and Second General
Issues Supplement at 4-5.
\19\ See Petition at Volume I at 3-4 and Exhibit I-5; see also
First General Issues Supplement at 9-10 and Exhibit I-Supp-2; and
Second General Issues Supplement at 5 and Exhibit I-2Supp-2.
\20\ See Petition at Volume I at 3-4 and Exhibit I-5; see also
First General Issues Supplement at 8-10 and Exhibit I-Supp-2; and
Second General Issues Supplement at 5.
\21\ See Petition at Volume I at 2-4 and Exhibits I-3 through I-
5; see also First General Issues Supplement at 7-10 and Exhibits I-
Supp-2 and I-Supp-3; and Second General Issues Supplement at 4-5 and
Exhibit I-2Supp-2.
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On October 7, 2021, we received comments on industry support from
Wabtec Corporation (Wabtec), a U.S. importer of freight rail
couplers.\22\ On October 12, 2021, the petitioner responded to the
comments from Wabtec.\23\ On October 12, 2021, we received additional
comments from Wabtec.\24\ On October 13, 2021, we received comments on
industry support from Strato, Inc. (Strato), a U.S. importer of freight
rail couplers.\25\ On October 14, 2021, the petitioner responded to the
comments from Strato and Wabtec.\26\
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\22\ See Wabtec's Letter, ``Certain Freight Rail Coupler Systems
and Components Thereof from the People's Republic of China: Request
for Department to Deny the Petitions for Imposition of Duties Filed
by the Coalition of Freight Coupler Producers as Legally Infirm,''
dated October 7, 2021.
\23\ See Petitioner's Letter, ``Freight Rail Coupler Systems and
Certain Components Thereof from the People's Republic of China:
Response to Wabtec,'' dated October 12, 2021 (Petitioner Letter I).
\24\ See Wabtec's Letter, ``Certain Freight Rail Coupler Systems
and Components Thereof from the People's Republic of China: Reply in
Support of Request for Department to Deny the Petitions for
Imposition of Duties Filed by the Coalition of Freight Coupler
Producers,'' dated October 12, 2021.
\25\ See Strato's Letter, ``Strato Support for Rejecting
Petition: Antidumping & Countervailing Duty Investigation of Freight
Rail Coupler Systems and Components Thereof from the People's
Republic of China,'' dated October 13, 2021.
\26\ See Petitioner's Letter, ``Freight Rail Car Coupler Systems
and Certain Components Thereof from the People's Republic of China:
Response to Strato and Wabtec,'' dated October 14, 2021 (Petitioner
Letter II).
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Our review of the data provided in the Petition, the First General
Issues Supplement, the Second General Issues Supplement, Petitioner
Letters I and II, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\27\ First, the Petition established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\28\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
732(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\29\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 732(c)(4)(A)(ii) of the Act
[[Page 58867]]
because the domestic producers (or workers) who support the Petition
account for more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the Petition.\30\ Accordingly, Commerce
determines that the Petition was filed on behalf of the domestic
industry within the meaning of section 732(b)(1) of the Act.\31\
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\27\ See China AD Initiation Checklist at Attachment II.
\28\ Id.; see also section 732(c)(4)(D) of the Act.
\29\ See China AD Initiation Checklist at Attachment II.
\30\ Id.
\31\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at LTFV. In addition, the petitioner alleges that
subject imports exceed the negligibility threshold provided for under
section 771(24)(A) of the Act.\32\
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\32\ See Petition at Volume I at 27 and Exhibit I-27.
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The petitioner contends that the industry's injured condition is
illustrated by a significant volume of subject imports; reduced market
share; underselling and price depression and/or suppression; lost sales
and revenues; declines in production, U.S. shipments, and capacity
utilization; decline in employment; decline in financial performance;
and the magnitude of the estimated dumping margin.\33\ We assessed the
allegations and supporting evidence regarding material injury, threat
of material injury, causation, as well as negligibility, and we have
determined that these allegations are properly supported by adequate
evidence and meet the statutory requirements for initiation.\34\
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\33\ Id. at 14-16, 22-44 and Exhibits I-3 through I-5, I-11, I-
13, I-14, and I-17 through I-47; see also First General Issues
Supplement at 11-13 and Exhibit I-Supp-3.
\34\ See China AD Initiation Checklist at Attachment III,
Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Certain Freight Rail Coupler Systems and Components Thereof
from the People's Republic of China.
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Allegations of Sales at LTFV
The following is a description of the allegations of sales at LTFV
upon which Commerce based its decision to initiate the AD investigation
of imports of freight rail couplers from China. The sources of data for
the deductions and adjustments relating to U.S. price and normal value
(NV) are discussed in greater detail in the China AD Initiation
Checklist.
U.S. Price
The petitioner based export price (EP) on information from a quoted
sales offer for freight rail couplers produced in and exported from
China by a Chinese producer.\35\ The petitioner made adjustments for
foreign inland freight and foreign brokerage and handling to calculate
an ex-factory U.S. price.\36\
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\35\ See the China AD Initiation Checklist.
\36\ Id.
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Normal Value
Commerce considers China to be an NME country.\37\ In accordance
with section 771(18)(C)(i) of the Act, any determination that a foreign
country is an NME country shall remain in effect until revoked by
Commerce. Therefore, we continue to treat China as an NME country for
purposes of the initiation of this investigation. Accordingly, NV in
China is appropriately based on FOPs valued in a surrogate market
economy country, in accordance with section 773(c) of the Act.
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\37\ See, e.g., Antidumping Duty Investigation of Certain
Aluminum Foil from the People's Republic of China: Affirmative
Preliminary Determination of Sales at Less-Than-Fair Value and
Postponement of Final Determination, 82 FR 50858, 50861 (November 2,
2017), and accompanying Preliminary Decision Memorandum at ``China's
Status as a Non-Market Economy,'' unchanged in Certain Aluminum Foil
from the People's Republic of China: Final Determination of Sales at
Less Than Fair Value, 83 FR 9282 (March 5, 2018).
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The petitioner states that Brazil is an appropriate surrogate
country because Brazil is a market economy country that is at a level
of economic development comparable to that of China and is a
significant producer of comparable merchandise.\38\ The petitioner
submitted publicly-available information from Brazil to value all
FOPs.\39\ Based on the information provided by the petitioner, we
determine that it is appropriate to use Brazil as a surrogate country
for China for initiation purposes.
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\38\ See Petition at Volume II at 8-9.
\39\ Id. at 10 and Exhibit II-15.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selections and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
Factors of Production
The petitioner used the product-specific consumption rates of a
U.S. producer of freight rail couplers as a surrogate to value Chinese
manufacturers' FOPs.\40\ Additionally, the petitioner calculated
factory overhead; selling, general and administrative expenses; and
profit based on the experience of a Brazilian producer of comparable
merchandise (i.e., steel components).\41\
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\40\ Id. at 1 and 10-12 and Exhibits II-11 and II-14.
\41\ Id. at 17-18 and Exhibit II-23 and II-24.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of freight rail couplers from China are being, or
are likely to be, sold in the United States at LTFV. Based on a
comparison of EP to NV, in accordance with sections 772 and 773 of the
Act, the estimated dumping margins for freight rail couplers from China
are 142.98 and 147.11 percent ad valorem.\42\
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\42\ See China AD Initiation Checklist.
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Initiation of LTFV Investigation
Based upon our examination of the Petition on freight rail couplers
from China and supplemental responses, we find that the Petition meets
the requirements of section 732 of the Act. Therefore, we are
initiating an AD investigation to determine whether imports of freight
rail couplers from China are being, or are likely to be, sold in the
United States at LTFV. In accordance with section 733(b)(1)(A) of the
Act and 19 CFR 351.205(b)(1), unless postponed, we will make our
preliminary determination no later than 140 days after the date of this
initiation.
Respondent Selection
In the Petition, the petitioner named eight companies in China as
producers and/or exporters of freight rail couplers.\43\
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\43\ See Petition at Volume I at 13 and Exhibit I-10.
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In accordance with our standard practice for respondent selection
in AD investigations involving NME countries, Commerce selects
respondents based on quantity and value (Q&V) questionnaires in cases
where it has determined that the number of companies is large and it
cannot individually examine each company based upon its resources.
Therefore, considering the number of producers and exporters identified
in the Petition, Commerce will solicit Q&V information that can serve
as a basis for selecting exporters for individual examination in the
event that Commerce decides to limit the number of respondents
individually examined pursuant to section 777A(c)(2) of the Act.
Because there are eight producers and/or exporters identified in the
Petition, Commerce has determined that it will
[[Page 58868]]
issue Q&V questionnaires to each potential respondent for which the
petitioner has provided a complete address.
In addition, Commerce will post the Q&V questionnaire along with
filing instructions on E&C's website at <a href="https://enforcement.trade.gov/questionnaires/questionnaires-ad.html">https://enforcement.trade.gov/questionnaires/questionnaires-ad.html</a>. Producers/exporters of freight
rail couplers from China that do not receive Q&V questionnaires may
still submit a response to the Q&V questionnaire and can obtain a copy
of the Q&V questionnaire from E&C's website. In accordance with the
standard practice for respondent selection in AD cases involving NME
countries, in the event Commerce decides to limit the number of
respondents individually investigated, Commerce intends to base
respondent selection on the responses to the Q&V questionnaire that it
receives.
Responses to the Q&V questionnaire must be submitted by the
relevant Chinese producers/exporters no later than 5:00 p.m. ET on
November 2, 2021, which is two weeks from the signature date of this
notice. All Q&V questionnaire responses must be filed electronically
via ACCESS. An electronically filed document must be received
successfully, in its entirety, by ACCESS no later than 5:00 p.m. ET on
the deadline noted above.
Interested parties must submit applications for disclosure under
Administrative Protective Order (APO) in accordance with 19 CFR
351.305(b). Instructions for filing such applications may be found on
E&C's website at <a href="http://enforcement.trade.gov/apo">http://enforcement.trade.gov/apo</a>. Commerce intends to
finalize its decisions regarding respondent selection within 20 days of
publication of this notice.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
exporters and producers must submit a separate-rate application.\44\
The specific requirements for submitting a separate-rate application in
a China investigation are outlined in detail in the application itself,
which is available on E&C's website at <a href="http://enforcement.trade.gov/nme/nme-sep-rate.html">http://enforcement.trade.gov/nme/nme-sep-rate.html</a>. The separate-rate application will be due 30
days after publication of this initiation notice. Producers/exporters
who submit a separate-rate application and have been selected as
mandatory respondents will be eligible for consideration for separate-
rate status only if they respond to all parts of Commerce's AD
questionnaire as mandatory respondents. Commerce requires that
respondents from China submit a response to both the Q&V questionnaire
and the separate-rate application by the respective deadlines in order
to receive consideration for separate-rate status. Companies not filing
a timely Q&V questionnaire response will not receive separate rate
consideration.
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\44\ See Policy Bulletin 05.1: ``Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving NME Countries,'' (April 5, 2005), available at <a href="http://enforcement.trade.gov/policy/bull05-1.pdf">http://enforcement.trade.gov/policy/bull05-1.pdf</a> (Policy Bulletin 05.1).
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Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that {Commerce{time}
will now assign in its NME Investigations will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the weighted-average of the individually calculated rates.
This practice is referred to as the application of ``combination
rates'' because such rates apply to specific combinations of
exporters and one or more producers. The cash-deposit rate assigned
to an exporter will apply only to merchandise both exported by the
firm in question and produced by a firm that supplied the exporter
during the period of investigation.\45\
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\45\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the AD Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the Government of China via ACCESS. Furthermore, to the
extent practicable, Commerce will attempt to provide a copy of the
public version of the Petition to each exporter named in the Petition,
as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of our initiation, as required by
section 732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of freight rail couplers from China are
materially injuring, or threatening material injury to, a U.S.
industry.\46\ A negative ITC determination will result in the
investigation being terminated.\47\ Otherwise, the investigation will
proceed according to statutory and regulatory time limits.
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\46\ See section 733(a) of the Act.
\47\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \48\ and, if the information is submitted to rebut,
clarify, or correct factual information already on the record, to
provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct.\49\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in this investigation.
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\48\ See 19 CFR 351.301(b).
\49\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301 or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301. For submissions that are due
from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, Commerce will inform parties in a letter or memorandum of the
deadline (including a specified time) by
[[Page 58869]]
which extension requests must be filed to be considered timely. An
extension request must be made in a separate, stand-alone submission;
under limited circumstances we will grant untimely-filed requests for
the extension of time limits. Parties should review Commerce's
regulations concerning the extension of time limits and the Time Limits
Final Rule, prior to submitting factual information in this
investigation.\50\
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\50\ See 19 CFR 351; see also Extension of Time Limits; Final
Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final Rule),
available at <a href="http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm">http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm</a>.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\51\
Parties must use the certification formats provided in 19 CFR
351.303(g).\52\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\51\ See section 782(b) of the Act.
\52\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to
frequently asked questions regarding the Final Rule are available at
<a href="http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf">http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf</a>.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. Parties wishing to participate
in this investigation should ensure that they meet the requirements of
these procedures (e.g., the filing of letters of appearance as
discussed at 19 CFR 351.103(d)).\53\ Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information until further notice.\54\
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\53\ See Antidumping and Countervailing Duty Proceedings:
Documents Submission Procedures; APO Procedures, 73 FR 3634 (January
22, 2008).
\54\ See 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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This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: October 19, 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--Scope of the Investigation
The scope of this investigation covers freight rail car coupler
systems and certain components thereof. Freight rail car coupler
systems are composed of, at minimum, four main components (knuckles,
coupler bodies, coupler yokes, and follower blocks, as specified
below) but may also include other items (e.g., coupler locks, lock
lift assemblies, knuckle pins, knuckle throwers, and rotors). The
components covered by the investigation include: (1) E coupler
bodies; (2) E/F coupler bodies; (3) F coupler bodies; (4) E yokes;
(5) F yokes; (6) E knuckles; (7) F knuckles; (8) E type follower
blocks; and (9) F type follower blocks, as set forth by the
Association of American Railroads (AAR). The freight rail coupler
components are included within the scope of the investigation when
imported individually, or in some combination thereof, such as in
the form of a coupler fit (a coupler body and knuckle assembled
together), independent from a coupler system.
Subject freight rail car coupler systems and components are
included within the scope whether finished or unfinished, whether
imported individually or with other subject or non-subject
components, whether assembled or unassembled, whether mounted or
unmounted, or if joined with non-subject merchandise, such as other
non-subject system parts or a completed rail car. Finishing
includes, but is not limited to, arc washing, welding, grinding,
shot blasting, heat treatment, machining, and assembly of various
components. When a subject coupler system or subject components are
mounted on or to other non-subject merchandise, such as a rail car,
only the coupler system or subject components are covered by the
scope.
The finished products covered by the scope of this investigation
meet or exceed the AAR specifications of M-211, ``Foundry and
Product Approval Requirements for the Manufacture of Couplers,
Coupler Yokes, Knuckles, Follower Blocks, and Coupler Parts'' or AAR
M-215 ``Coupling Systems,'' or other equivalent domestic or
international standards (including any revisions to the
standard(s)).
The country of origin for subject coupler systems and
components, whether fully assembled, unfinished or finished, or
attached to a rail car, is the country where the subject coupler
components were cast or forged. Subject merchandise includes coupler
components as defined above that have been further processed or
further assembled, including those coupler components attached to a
rail car in third countries. Further processing includes, but is not
limited to, arc washing, welding, grinding, shot blasting, heat
treatment, painting, coating, priming, machining, and assembly of
various components. The inclusion, attachment, joining, or assembly
of non-subject components with subject components or coupler systems
either in the country of manufacture of the in-scope product or in a
third country does not remove the subject components or coupler
systems from the scope.
The coupler systems that are the subject of this investigation
are currently classifiable in the Harmonized Tariff Schedule of the
United States (HTSUS) statistical reporting number 8607.30.1000.
Unfinished subject merchandise may also enter under HTSUS
statistical reporting number 7326.90.8688. Subject merchandise
attached to finished rail cars may also enter under HTSUS
statistical reporting numbers 8606.10.0000, 8606.30.0000,
8606.91.0000, 8606.92.0000, 8606.99.0130, 8606.99.0160, or under
subheading 9803.00.5000 if imported as an Instrument of
International Traffic. These HTSUS subheadings are provided for
convenience and customs purposes only; the written description of
the scope of the investigation is dispositive.
[FR Doc. 2021-23231 Filed 10-22-21; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on October 25, 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.