Notice2022-04692
Freight Rail Coupler Systems and Certain Components Thereof: Preliminary Affirmative Countervailing Duty Determination
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Published
March 7, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of freight rail coupler systems and certain components thereof (freight rail couplers) from the People's Republic of China (China) during the period of investigation January 1, 2020, through December 31, 2020. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 87 Issue 44 (Monday, March 7, 2022)</title>
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[Federal Register Volume 87, Number 44 (Monday, March 7, 2022)]
[Notices]
[Pages 12662-12664]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-04692]
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DEPARTMENT OF COMMERCE
International Trade Administration
Freight Rail Coupler Systems and Certain Components Thereof:
Preliminary Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of freight rail coupler systems and certain components
thereof (freight rail couplers) from the People's Republic of China
(China) during the period of investigation January 1, 2020, through
December 31, 2020. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable March 7, 2022.
FOR FURTHER INFORMATION CONTACT: Whitley Herndon or Robert Scully, AD/
CVD Operations, Office V, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-6274, or (202)
482-0572, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on October 25,
2021.\1\ On December 9, 2021, Commerce postponed the preliminary
determination to February 28, 2022.\2\ For a complete description of
the events that followed the initiation of this investigation, see the
Preliminary Decision Memorandum.\3\ A list of topics discussed in the
Preliminary Decision Memorandum is included as Appendix II to this
notice. The Preliminary Decision Memorandum is a public document and is
on file electronically via Enforcement and Compliance's Antidumping and
Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at <a href="http://access.trade.gov">http://access.trade.gov</a>. In
addition, a complete version of the Preliminary Decision Memorandum can
be accessed directly at <a href="http://enforcement.trade.gov/frn/">http://enforcement.trade.gov/frn/</a>.
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\1\ See Freight Rail Coupler Systems and Certain Components
Thereof from the People's Republic of China: Initiation of
Countervailing Duty Investigation, 86 FR 58878 (October 25, 2021)
(Initiation Notice).
\2\ See Freight Rail Coupler Systems and Certain Components
Thereof from the People's Republic of China: Postponement of
Preliminary Determination in the Countervailing Duty Investigation,
86 FR 70113 (December 9, 2021).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Countervailing Duty Investigation of Freight
Rail Coupler Systems and Certain Components Thereof from the
People's Republic of China,'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is freight rail couplers
from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ We received several
comments concerning the scope of the antidumping duty (AD) and
countervailing duty (CVD) investigations of freight rail couplers as it
appeared in the Initiation Notice. On February 11, 2022, we requested
additional scope comments from interested parties regarding merchandise
under consideration attached to rail cars.\6\ On February 22, 2022, we
received comments from several interested parties; with rebuttal
comments due March 1, 2022. Because these comments were submitted in
close proximity to the preliminary determinations, we intend to issue
our preliminary decision regarding the scope of the AD and CVD
investigations after the preliminary determination of the companion AD
investigation, the deadline for which is March 8, 2022.\7\ We will
incorporate the scope decisions from the AD investigation into the
scope of the final CVD determination for this investigation after
considering any relevant comments submitted in scope case and rebuttal
briefs.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 86 FR 58879.
\6\ See Memorandum, ``Countervailing Duty Investigation of
Freight Rail Coupler Systems and Certain Components Thereof from the
People's Republic of China: Request for Additional Scope Comments,''
dated February 11, 2022.
\7\ See Freight Rail Coupler Systems and Certain Components
Thereof from the People's Republic of China: Initiation of Less-
Than-Fair-Value Investigation, 86 FR 58864 (October 25, 2021).
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\8\
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\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied on facts
available and, because Commerce finds that necessary information was
missing from the record and because respondents did not act to the best
of their ability to respond to Commerce's requests for information,
Commerce drew an adverse inference in selecting from among the facts
otherwise available.\9\ For further information, see ``Use of Facts
Otherwise Available and Adverse Inferences'' in the Preliminary
Decision Memorandum.
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\9\ See sections 776(a) and (b) of the Act.
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[[Page 12663]]
All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual
estimated countervailable subsidy rates established for all exporters
and producers individually examined are zero, de minimis or determined
based entirely on facts otherwise available, Commerce may use ``any
reasonable method'' to establish the estimated subsidy rate for all-
other producers or exporters. In this investigation, Commerce
preliminarily determined the individually estimated subsidy rate for
the individually examined respondent based entirely on facts available
under section 776 of the Act. Consequently, pursuant to sections 703(d)
and 705(c)(5)(A)(ii) of the Act, we established the all-others rate by
applying the countervailable subsidy rate assigned to the mandatory
respondent.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (ad valorem)
(percent)
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Chongqing Tongyao Transportation Equipment Co........... 265.99
CRRC Corporation Limited................................ 265.99
CRRC Qiqihar Co., Ltd................................... 265.99
China Railway Materials Group Co., Ltd.................. 265.99
Shaanxi Haiduo Railway Technology Development Co., Ltd.. 265.99
All Others.............................................. 265.99
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Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation entered, or withdrawn from warehouse,
for consumption on or after the date of publication of this notice in
the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce
will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Normally, Commerce discloses its calculations and analysis
performed in connection with the preliminary determination to
interested parties within five days of its public announcement, or if
there is no public announcement, within five days of the date of
publication of this notice, in accordance with 19 CFR 351.224(b).
However, because Commerce preliminarily applied total AFA rates to the
individually examined company, Chongqing Tongyao, and to the companies
that did not respond to Commerce's quantity and value questionnaire,
and the applied AFA rates are based on rates calculated in prior
proceedings, there are no calculations to disclose.
Verification
Because the examined respondent in this investigation did not
provide information requested by Commerce and Commerce preliminarily
determines that the examined respondent to have been uncooperative, we
will not conduct verification.
Public Comment
All interested parties will have the opportunity to submit case and
rebuttal briefs on the preliminary scope determination. The deadline to
submit case briefs on the preliminary scope determination will be seven
days after the signature date of the preliminary scope decision
memorandum. Scope rebuttal briefs (which are limited to issues raised
in the scope briefs) may be submitted no later than seven days after
the deadline for the scope briefs. For all scope briefs and rebuttals
thereto, parties must file identical documents simultaneously on the
records of the ongoing AD and CVD freight rail coupler investigations.
No new factual information or business proprietary information may be
included in either scope briefs or rebuttal scope briefs.
Case briefs or other written comments on non-scope matters may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than 20 days after the date of publication of the preliminary
determination. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than seven days after the deadline
date for case briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this investigation
are encouraged to submit with each argument: (1) A statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities. Commerce has modified certain of its requirements for
serving documents containing business proprietary information until
further notice.\11\
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\10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\11\ 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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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a date and time to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. If the
final determination is affirmative, then the ITC will determine before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination whether imports of freight
rail couplers from China are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: February 28, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix I
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
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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.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Analysis of Programs
VII. Recommendation
[FR Doc. 2022-04692 Filed 3-4-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on March 7, 2022.
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