Notice2022-11480
Freight Rail Coupler Systems and Certain Components Thereof From the People's Republic of China: Final Affirmative Determination of Sales at Less-Than-Fair Value
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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 27, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that freight rail coupler systems and certain components thereof (freight rail couplers) from the People's Republic of China (China) are being, or are likely to be, sold in the United States at less-than-fair value (LTFV) during the period of investigation, January 1, 2021, through June 30, 2021.
Full Text
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<title>Federal Register, Volume 87 Issue 103 (Friday, May 27, 2022)</title>
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[Federal Register Volume 87, Number 103 (Friday, May 27, 2022)]
[Notices]
[Pages 32121-32123]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-11480]
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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: Final Affirmative Determination of
Sales at Less-Than-Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
freight rail coupler systems and certain components thereof (freight
rail couplers) from the People's Republic of China (China) are being,
or are likely to be, sold in the United States at less-than-fair value
(LTFV) during the period of investigation, January 1, 2021, through
June 30, 2021.
DATES: Applicable May 27, 2022.
FOR FURTHER INFORMATION CONTACT: Kabir Archuletta, 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) 482-2593.
SUPPLEMENTARY INFORMATION:
Background
On March 15, 2022, Commerce published in the Federal Register the
Preliminary Determination in this investigation.\1\ The deadline for
the final
[[Page 32122]]
determination in this investigation is May 23, 2022.
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\1\ See Freight Rail Coupler Systems and Certain Components
Thereof from the People's Republic of China: Preliminary Affirmative
Determination of Sales at Less-Than-Fair Value, 87 FR 14511 (March
15, 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 countervailing duty investigation, 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; see
also 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) (Initiation
Notice).
\3\ See Strato's Letter, ``Strato Scope Case Brief,'' dated
April 18, 2022; and Wabtec's Letter, ``Case Brief On Post-
Preliminary Scope Decision,'' dated April 18, 2022.
\4\ The petitioner is the Coalition of Freight Coupler
Producers. 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
Issues and Decision Memorandum accompanying this notice.
Period of Investigation
The period of investigation is January 1, 2021, through June 30,
2021.
Scope of the Investigation
The products covered by this investigation are freight rail coupler
systems and certain components thereof from China. For a complete
description of the scope of this investigation, see the appendix to
this notice.
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 Preliminary Determination.\7\ For a
summary of the product coverage comments and rebuttal comments, and an
analysis of all comments received, see the final scope memorandum
issued concurrently with this final determination.\8\ 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 14513.
\6\ See Initiation Notice, 86 FR 58869.
\7\ See Preliminary Determination, 87 FR 14513-14.
\8\ See Memorandum, ``Final Scope Memorandum,'' dated
concurrently with, and hereby adopted by, this notice.
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China-Wide Entity and Use of Adverse Facts Available (AFA)
For the purposes of this final determination, consistent with the
Preliminary Determination,\9\ we relied solely on the application of
AFA for the China-wide entity, pursuant to sections 776(a) and (b) of
the Tariff Act of 1930, as amended (the Act). Further, because no
companies are eligible for a rate separate from the China-wide entity,
we continue to find that all exporters of Chinese freight rail couplers
are part of the China-wide entity. No interested party submitted
comments on the Preliminary Determination. Thus, we made no changes to
our analysis or to the China-wide entity's dumping margin for the final
determination. A detailed discussion of our application of AFA is
provided in the Preliminary Determination.\10\
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\9\ See Preliminary Determination PDM at 6-9.
\10\ Id.
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Combination Rates
Because no Chinese exporters qualified for a separate rate,
producer/exporter combination rates were not calculated for this final
determination.
Final Determination
The final estimated weighted-average dumping margins are as
follows:
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Estimated weighted-
Estimated weighted- average dumping
Exporter/producer average dumping margin adjusted for
margin (percent) export subsidy
offset(s) (percent)
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China-Wide Entity........... 147.11 116.70
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Disclosure
Because Commerce continues to find that all Chinese exporters of
freight rail couplers are part of the China-wide entity and continues
to rely solely on the application of AFA for the China-wide entity,
there are no calculations to disclose for this final determination.
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 735(c)(1)(B) of the Act, Commerce will instruct U.S. Customs
and Border Protection (CBP) to continue to suspend liquidation of
subject merchandise as described in the ``Scope of the Investigation''
section entered, or withdrawn from warehouse, for consumption, on or
after March 15, 2022, which is the date of publication of the
Preliminary Determination in the Federal Register, at the cash deposit
rate indicated above.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), we will instruct CBP to require a cash deposit for such
entries of merchandise equal to the amount by which the normal value
exceeds the U.S. price as follows: (1) For all Chinese exporters of
subject merchandise, the cash deposit rate will be equal to the
estimated dumping margin established for the China-wide entity; and (2)
for all third country exporters of subject merchandise, the cash
deposit rate is also the cash deposit rate applicable to the China-wide
entity. 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 an antidumping
duty order and continue to require a cash deposit of estimated
antidumping duties
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for such entries of subject merchandise in the amounts indicated above,
in accordance with section 736(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 735(d) of the Act, we will notify the
ITC of our final affirmative determination of sales at LTFV. Because
the final determination in this proceeding is affirmative, in
accordance with section 735(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, the 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 an antidumping duty order directing CBP to
assess, upon further instruction by Commerce, antidumping 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 disposition 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 in pursuant to sections
735(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: May 23, 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. 2022-11480 Filed 5-26-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on May 27, 2022.
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