Certain Mobile Access Equipment and Subassemblies Thereof From the People's Republic of China: Countervailing Duty Order and Amended Final Affirmative Countervailing Duty Determination
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Issuing agencies
Abstract
Based on affirmative final determinations by the Department of Commerce (Commerce) and International Trade Commission (ITC), Commerce is issuing a countervailing duty (CVD) order on certain mobile access equipment and subassemblies thereof (mobile access equipment) from the People's Republic of China (China). In addition, Commerce is amending its final determination with respect to mobile access equipment from China to correct several ministerial errors.
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<title>Federal Register, Volume 86 Issue 235 (Friday, December 10, 2021)</title>
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[Federal Register Volume 86, Number 235 (Friday, December 10, 2021)]
[Notices]
[Pages 70439-70442]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-26890]
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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: Countervailing Duty Order and Amended
Final Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of
Commerce (Commerce) and International Trade Commission (ITC), Commerce
is issuing a countervailing duty (CVD) order on certain mobile access
equipment and subassemblies thereof (mobile access equipment) from the
People's Republic of China (China). In addition, Commerce is amending
its final determination with respect to mobile access equipment from
China to correct several ministerial errors.
DATES: Applicable December 10, 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
In accordance with section 705(a), 705(d), and 777(i) of the Tariff
Act of 1930, as amended (the Act), on October 19, 2021, Commerce
published its affirmative final determination that countervailable
subsides are being provided to producers and exporters of mobile access
equipment from China.\1\ The Coalition of American Manufacturers of
Mobile Access Equipment (the petitioner) and Lingong Jinan Heavy
Machinery Co., Ltd. (LGMG) submitted timely allegations on the record
that Commerce made several ministerial errors in the Final
Determination.\2\ Section 705(e) of the
[[Page 70440]]
Act and 19 CFR 351.224(f) define ministerial errors as errors in
addition, subtraction, or other arithmetic function, clerical errors
resulting from inaccurate copying, duplication, or the like, and any
other type of unintentional error which Commerce considers ministerial.
We reviewed the allegations and determined that we made ministerial
errors in the Final Determination. See ``Amendment to the Final
Determination'' section below for further discussion.
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\1\ See Certain Mobile Access Equipment and Subassemblies
Thereof from the People's Republic of China: Final Affirmative
Countervailing Duty Determination, 86 FR 57809 (October 19, 2021)
(Final Determination).
\2\ See Petitioner's Letter, ``Certain Mobile Access Equipment
and Subassemblies Thereof from the People's Republic of China:
Ministerial Error Allegations,'' dated October 20, 2021 (Petitioner
Ministerial Error Allegations); see also LGMG's Letter, ``Certain
Mobile Access Equipment and Subassemblies Thereof from China; CVD
Investigation; LGMG Ministerial Error Comments,'' dated October 20,
2021 (collectively, LGMG Ministerial Error Allegations).
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On December 3, 2021, pursuant to sections 705(d) of the Act, the
ITC notified Commerce of its final affirmative determination that an
industry in the United States is threatened with material injury by
reason of subsidized imports of mobile access equipment from China,
within the meaning of sections 705(b)(1)(A)(i).\3\
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\3\ See ITC's Letter, ``Notification of ITC Final
Determination,'' dated December 3, 2021 (ITC Notification Letter).
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Scope of the Order
The products covered by this order are mobile access equipment from
China. For a full description of the scope of this order, see Appendix
I.
Amendment to the Final Determination
On October 20, 2021, the petitioner and LGMG submitted timely
ministerial error allegations regarding the Final Determination.\4\
Commerce reviewed the record, and on November 8, 2021, agreed that
several errors alleged by the petitioner constituted ministerial errors
within the meaning of section 705(e) of the Act and 19 CFR
351.224(f).\5\ Specifically, Commerce determined that it had:
Miscalculated the benchmark for ocean freight used in calculating the
subsidy rates for certain the provision of inputs for less-than-
adequate-remuneration (LTAR) programs; miscalculated the benchmark for
inland freight used for certain of LGMG's of inputs for LTAR programs;
and failed to apply the ``0.5 percent test'' for determining whether to
allocate or expense one of LGMG's subsidy programs.\6\ Pursuant to 19
CFR 351.224(e), Commerce is amending the Final Determination to reflect
the corrections of the ministerial errors described in the Ministerial
Error Memorandum.
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\4\ See Petitioner Ministerial Error Allegations; see also LGMG
Ministerial Error Allegations.
\5\ See Memorandum, ``Countervailing Duty Investigation Certain
Mobile Access Equipment and Subassemblies Thereof from the People's
Republic of China: Ministerial Error Allegations in the Final
Determination,'' dated November 8, 2021 (Ministerial Error
Memorandum).
\6\ Id. Commerce also determined that it erred in selecting the
discount rate used for allocating two other subsidies for LGMG in
the Final Determination.
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Based on these corrections, the subsidy rate for LGMG changed from
18.34 percent to 18.58 percent and the subsidy rate for Zhejiang Dingli
Machinery Co., Ltd. (Dingli) changed from 11.95 percent to 11.97
percent. Because the all-others rate is based upon a weighted average
of the subsidy rates calculated for Dingli and LGMG, the all-others
rate changed from 12.93 percent to 12.98 percent. In addition, the
adverse facts available subsidy rate for non-responsive companies,
which is partially calculated using subsidy rates determined for Dingli
and LGMG, changed from 448.70 percent to 448.80 percent.
CVD Order
As stated above, on December 3, 2021, in accordance with section
705(d) of the Act, the ITC notified Commerce of its final determination
that an industry in the United States producing mobile access equipment
is threatened with material injury, within the meaning of section
705(b)(1)(A)(ii) of the Act, by reason of subsidized imports of mobile
access equipment from China.\7\ Therefore, in accordance with section
705(c)(2) of the Act, we are publishing this CVD order.
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\7\ See ITC Notification Letter.
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According to section 706(b)(2) of the Act, countervailing duties
shall be assessed on subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the date of publication of the
ITC's notice of final determination if that determination is based upon
the threat of material injury. Section 706(b)(1) of the Act states,
``{i{time} f the Commission, in its final determination under section
705(b), finds material injury or threat of material injury which, but
for the suspension of liquidation under section 703(d)(2), would have
led to a finding of material injury, then entries of the merchandise
subject to the countervailing duty order, the liquidation of which has
been suspended under section 703(d)(2), shall be subject to the
imposition of countervailing duties under section 701(a).'' In
addition, section 706(b)(2) of the Act requires U.S. Customs and Border
Protection (CBP) to refund any cash deposits of estimated
countervailing duties posted before the date of publication of the
ITC's final affirmative determination, if the ITC's final determination
is based on threat other than the threat described in section 706(b)(1)
of the Act. Because the ITC's final determination in this case is based
on the threat of material injury and is not accompanied by a finding
that injury would have resulted but for the imposition of suspension of
liquidation of entries since the publication of Commerce's Preliminary
Determination in the Federal Register,\8\ section 706(b)(2) of the Act
applies.
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\8\ See Certain Mobile Access Equipment and Subassemblies
Thereof from the People's Republic of China: Preliminary Affirmative
Countervailing Duty Determination, 86 FR 41013 (July 30, 2021)
(Preliminary Determination).
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Suspension of Liquidation
As a result of the ITC's determination and in accordance with
section 706(a)(1) of the Act, Commerce will direct CBP to assess, upon
further instruction by Commerce, countervailing duties equal to the
amount of the net countervailable subsidy for all relevant entries of
mobile access equipment from China. In accordance with section 706 of
the Act, Commerce will direct CBP to continue suspension of
liquidation, effective on the date of publication of the ITC's notice
of final determination in the Federal Register, and to require a cash
deposit for each entry of subject merchandise in an amount equal to the
net countervailable subsidy rates listed below. The all-others rate
applies to all producers and exporters of subject merchandise not
specifically listed.
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Subsidy rate
Company (percent)
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Lingong Group Jinan Heavy Machinery Co., Ltd.\9\........ 18.58
Zhejiang Dingli Machinery Co., Ltd.\10\................. 11.97
Jinan Zhongtian International Trading \11\.............. 448.80
Zhongshan Shiliwang Machinery Co., LTD \12\............. 448.80
Yantai Empire Industry and Trade \13\................... 448.80
Shandong Lede Machinery \14\............................ 448.80
[[Page 70441]]
Shandong Huifeng Auto Fittings \15\..................... 448.80
Jinan Zhongtang Mechanical Equipment \16\............... 448.80
All Others.............................................. 12.98
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Termination of the Suspension of Liquidation
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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 will instruct CBP to terminate the suspension of
liquidation for entries of mobile access equipment from China, entered
or withdrawn from warehouse, for consumption prior to the publication
of the ITC's notice of final determination. Commerce will also instruct
CBP to refund any cash deposits made with respect to entries of mobile
access equipment entered, or withdrawn from warehouse, for consumption
on or after July 30, 2021 (i.e., the date of publication of the
Preliminary Determination), but before the date of publication of the
ITC's notice of final determination. This notice constitutes the
countervailing duty order with respect to mobile access equipment from
China, pursuant to section 706(a) of the Act.
Establishment of the Annual Inquiry Service List
On September 20, 2021, Commerce published the final rule titled
``Regulations to Improve Administration and Enforcement of Antidumping
and Countervailing Duty Laws'' in the Federal Register.\17\ On
September 27, 2021, Commerce also published the notice entitled ``Scope
Ruling Application; Annual Inquiry Service List; and Informational
Sessions'' in the Federal Register.\18\ The Final Rule and Procedural
Guidance provide that Commerce will maintain an annual inquiry service
list for each order or suspended investigation, and any interested
party submitting a scope ruling application or request for
circumvention inquiry shall serve a copy of the application or request
on the persons on the annual inquiry service list for that order, as
well as any companion order covering the same merchandise from the same
country of origin.\19\
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\17\ See Regulations to Improve Administration and Enforcement
of Antidumping and Countervailing Duty Laws, 86 FR 52300 (September
20, 2021) (Final Rule).
\18\ See Scope Ruling Application; Annual Inquiry Service List;
and Informational Sessions, 86 FR 53205 (September 27, 2021)
(Procedural Guidance).
\19\ Id.
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In accordance with the Procedural Guidance, for orders published in
the Federal Register after November 4, 2021, Commerce will create an
annual inquiry service list segment in Commerce's online e-filing and
document management system, Antidumping and Countervailing Duty
Electronic Service System (ACCESS), available at <a href="https://access.trade.gov">https://access.trade.gov</a>, within five business days of publication of the
order. Each annual inquiry service list will be saved in ACCESS, under
each case number, and under a specific segment type called ``AISL-
Annual Inquiry Service List.'' \20\
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\20\ This segment will be combined with the ACCESS Segment
Specific Information (SSI) field which will display the month in
which the notice of the order or suspended investigation was
published in the Federal Register, also known as the anniversary
month. For example, for an order under case number A-000-000 that
was published in the Federal Register in January, the relevant
segment and SSI combination will appear in ACCESS as ``AISL-January
Anniversary.'' Note that there will be only one annual inquiry
service list segment per case number, and the anniversary month will
be pre-populated in ACCESS.
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Interested parties who wish to be added to the annual inquiry
service list for an order must submit an entry of appearance to the
annual inquiry service list segment for the order in ACCESS within 30
days after the date of publication of the order. For ease of
administration, Commerce requests that law firms with more than one
attorney representing interested parties in an order designate a lead
attorney to be included on the annual inquiry service list. Commerce
will finalize the annual inquiry service list within five business days
thereafter. As mentioned in the Procedural Guidance, the new annual
inquiry service list will be in place until the following year, when
the Opportunity Notice for the anniversary month of the order is
published.
Commerce may update an annual inquiry service list at any time as
needed based on interested parties' amendments to their entries of
appearance to remove or otherwise modify their list of members and
representatives, or to update contact information. Any changes or
announcements pertaining to these procedures will be posted to the
ACCESS website at <a href="https://access.trade.gov">https://access.trade.gov</a>.
Special Instructions for Petitioners and Foreign Governments
In the Final Rule, Commerce stated that, ``after an initial request
and placement on the annual inquiry service list, both petitioners and
foreign governments will automatically be placed on the annual inquiry
service list in the years that follow.'' \21\ Accordingly, as stated
above, the petitioner and the Government of China should submit their
initial entry of appearance after publication of this notice in order
to appear in the first annual inquiry service list. Pursuant to 19 CFR
351.225(n)(3), the petitioner and the Government of China will not need
to resubmit their entries of appearance each year to continue to be
included on the annual inquiry service list. However, the petitioner
and the Government of China are responsible for making amendments to
their entries of appearance during the annual update to the annual
inquiry service list in accordance with the procedures described above.
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\21\ See Final Rule, 86 FR at 52335.
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Notification to Interested Parties
This notice constitutes the CVD order with respect to mobile access
equipment from China pursuant to section 706(a) of the Act. Interested
parties can find a list of CVD orders currently in effect at <a href="http://enforcement.trade.gov/stats/iastats1.html">http://enforcement.trade.gov/stats/iastats1.html</a>.
This amended final determination and order is issued and published
in accordance with sections 705(d) and 706(a) of the Act and 19 CFR
351.211(b) and 351.224(e).
Dated: December 7, 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 Order
The merchandise covered by this order consists of certain mobile
access equipment,
[[Page 70442]]
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 order 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 order.
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 order 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
order is dispositive.
[FR Doc. 2021-26890 Filed 12-9-21; 8:45 am]
BILLING CODE 3510-DS-P
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</html>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.