Notice2022-10933
Freight Rail Coupler Systems and Certain Components Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination
Primary source
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Published
May 20, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) 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.
Full Text
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<title>Federal Register, Volume 87 Issue 98 (Friday, May 20, 2022)</title>
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[Federal Register Volume 87, Number 98 (Friday, May 20, 2022)]
[Notices]
[Pages 30869-30871]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-10933]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-144]
Freight Rail Coupler Systems and Certain Components Thereof From
the People's Republic of China: Final Affirmative Countervailing Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
U.S. Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) 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.
DATES: Applicable May 20, 2022.
FOR FURTHER INFORMATION CONTACT: Whitley Herndon, 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.
SUPPLEMENTARY INFORMATION:
Background
The petitioner in this investigation is the Coalition of Freight
Coupler Producers. In addition to the Government of China, the
mandatory respondent in this investigation is Chongqing Tongyao
Transportation Equipment Co. (Chongqing Tongyao).
On March 7, 2022, Commerce published in the Federal Register the
Preliminary Determination of this investigation.\1\ The deadline for
the final determination of this investigation is May 16, 2022.
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\1\ See Freight Rail Coupler Systems and Certain Components
Thereof: Preliminary Affirmative Countervailing Duty Determination,
87 FR 12662 (March 7, 2022) (Preliminary Determination), and
accompanying Preliminary Decision Memorandum (PDM).
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On April 11, 2022, we issued a post-preliminary decision memorandum
addressing a scope issue raised in the context of this and the
companion less-than-fair-value (LTFV) investigations, in which we
preliminarily found that it was unnecessary to alter the scope stated
in the Initiation Notice.\2\ We received case briefs addressing this
preliminary scope decision from two importers of subject merchandise,
Strato Inc. (Strato) and Wabtec Corporation (Wabtec), on April 18,
2022,\3\ and rebuttal comments from the petitioner on April 22,
2022.\4\
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\2\ See Memorandum, ``Antidumping and Countervailing Duty
Investigations of Freight Rail Coupler Systems and Certain
Components Thereof from the People's Republic of China: Post-
Preliminary Scope Decision Memorandum,'' dated April 11, 2022 (Post-
Preliminary Scope Decision Memorandum); see also 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).
\3\ See Strato's Letter, ``Strato Scope Case Brief''; and
Wabtec's Letter, ``Case Brief On Post-Preliminary Scope Decision,''
both dated April 18, 2022.
\4\ See Petitioner's Letter, ``Rebuttal Brief,'' dated April 25,
2022.
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We received no comments or case briefs addressing any of the other
findings in the Preliminary Determination; therefore, there is no
unpublished Issues and Decision Memorandum accompanying this notice.
Period of Investigation
The period of investigation is January 1, 2020, through December
31, 2020.
Scope of the Investigation
The products covered by this investigation are freight rail coupler
systems and certain components from China. For a complete description
of the scope of this investigation, see the appendix.
Scope Comments
In Commerce's Preliminary Determination,\5\ we set aside a period
of time for parties to raise issues regarding product coverage (i.e.,
scope) in scope case briefs or other written comments on scope issues.
As noted above, the petitioner and two interested parties, Strato and
Wabtec, commented on the scope of the investigation as it appeared in
the Initiation Notice,\6\ and Post-Preliminary Scope Decision
Memorandum. For a summary of the product coverage comments and
[[Page 30870]]
rebuttal comments, and an analysis of all comments received, see the
final scope memorandum, which will be issued prior to, or in
conjunction with, the final determination in the companion LTFV
investigation from China.\7\ For the reasons discussed in the final
scope memorandum, Commerce is not modifying the scope language as it
appeared in the Initiation Notice. See the final ``Scope of the
Investigation'' in the appendix to this notice.
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\5\ See Preliminary Determination, 87 FR at 12663.
\6\ See Initiation Notice.
\7\ The deadline for Commerce's final determination in the
companion LTFV investigation of freight rail coupler systems and
certain components from China is May 23, 2022.
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Analysis of Subsidy Programs--Adverse Facts Available (AFA)
For purposes of this final determination, we relied solely on facts
available pursuant to section 776 of the Tariff Act of 1930, as amended
(the Act), because neither the Government of China nor the selected
mandatory respondent, Chongqing Tongyao, participated in this
investigation. Furthermore, as stated in our Preliminary Determination,
CRRC Corporation Limited, CRRC Qiqihar Co., Ltd., China Railway
Materials Group Co., Ltd., Shaanxi Haiduo Railway Technology
Development Co., Ltd., China Railway Materials Group Co., Ltd., and
Shaanxi Haiduo Railway Technology Development Co., Ltd. (collectively,
non-participating companies) also withheld necessary information that
was requested of them by Commerce, failed to provide information within
the deadlines established, and significantly impeded this proceeding by
failing to respond to Commerce's quantity and value questionnaires.
Therefore, because the mandatory respondent, the non-participating
companies, and the Government of China did not cooperate to the best of
their abilities in responding to our requests for information in this
investigation, we drew adverse inferences in selecting from among the
facts otherwise available, in accordance with sections 776(a)-(b) of
the Act. Consistent with the Preliminary Determination,\8\ we continue
to apply AFA to determine the appropriate subsidy rates for this
investigation. No interested party submitted comments on the subsidy
rates selected in the Preliminary Determination. Thus, we made no
changes to the subsidy rates for the final determination. A detailed
discussion of our application of AFA is provided in the Preliminary
Determination.\9\
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\8\ See Preliminary Determination PDM at 5-16.
\9\ Id.
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All-Others Rate
As discussed in the Preliminary Determination, Commerce based the
selection of the all-others rate on the countervailable subsidy rate
established for the mandatory respondent, in accordance with section
703(d) of the Act.\10\ Consistent with section 705(c)(5)(A)(ii) of the
Act, we made no changes to the selection of the all-others rate for
this final determination.
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\10\ See Preliminary Determination, 87 FR at 12663.
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Final Determination
Commerce 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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Disclosure
The subsidy rate calculations in the Preliminary Determination were
based on AFA.\11\ As noted above, there are no changes to the
calculations for this final determination. Thus, no additional
disclosure is necessary.
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\11\ Id., 87 FR at 12662-63.
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Continuation of Suspension of Liquidation
In accordance with section 705(c)(4)(A) of the Act, Commerce
intends to instruct U.S. U.S. Customs and Border Protection (CBP) to
continue to suspend the liquidation of all appropriate entries of
subject merchandise, as described in the appendix of this notice,
entered, or withdrawn from warehouse, for consumption on or after March
7, 2022, which is the date of publication of the affirmative
Preliminary Determination in the Federal Register, at the cash deposit
rates indicated above. These suspension of liquidation instructions
will remain in effect until further notice.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we intend to issue a countervailing
duty order, 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 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 intend to notify
the ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of freight rail
couplers 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 freight rail couplers from China no
later than 45 days after our final determination.
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 or canceled, as Commerce determines to be
appropriate. If the ITC determines that such injury does exist,
Commerce intends to 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.
Notification Regarding Administrative Protective Order (APO)
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).
[[Page 30871]]
Dated: May 16, 2022.
Lisa W. Wang,
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. 2022-10933 Filed 5-19-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on May 20, 2022.
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