Notice2022-23136
Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China and Mexico: Initiation of Less-Than-Fair-Value Investigations
Primary source
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
October 25, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 87 Issue 205 (Tuesday, October 25, 2022)</title>
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[Federal Register Volume 87, Number 205 (Tuesday, October 25, 2022)]
[Notices]
[Pages 64444-64450]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-23136]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-145, A-201-857]
Certain Freight Rail Couplers and Parts Thereof From the People's
Republic of China and Mexico: Initiation of Less-Than-Fair-Value
Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable October 18, 2022.
FOR FURTHER INFORMATION CONTACT: Zachary Shaykin (the People's Republic
of China (China)); and Jon Hall-Eastman or Samuel Brummitt (Mexico);
AD/CVD Operations, Offices IV and III, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
2638, (202) 482-1468, or (202) 482-7851, respectively.
SUPPLEMENTARY INFORMATION:
The Petitions
On September 28, 2022, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of certain
freight rail couplers and parts thereof (freight rail couplers) from
China and Mexico filed in proper form on behalf of the Coalition of
Freight Coupler Producers (the petitioner).\1\ The Petitions were
accompanied by a countervailing duty (CVD) petition concerning imports
of freight rail couplers from China.\2\
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\1\ See Petitioner's Letter, ``Certain Freight Rail Couplers and
Parts Thereof from the People's Republic of China and the United
Mexican States: Petitions for the Imposition of Antidumping and
Countervailing Duties,'' dated September 28, 2022 (Petitions). The
members of the Coalition of Freight Coupler Producers are McConway &
Torley LLC and the United Steel, Paper and Forestry, Rubber,
Manufacturing, Energy, Allied Industrial and Service Workers
International Union.
\2\ Id.
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Between September 30 and October 11, 2022, Commerce requested
[[Page 64445]]
supplemental information pertaining to certain aspects of the Petitions
in separate supplemental questionnaires.\3\ The petitioner filed timely
responses to these requests for additional information.\4\
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\3\ See Commerce's Letters, ``Petition for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Freight
Rail Couplers and Parts Thereof from the People's Republic of China
and Mexico: Supplemental Questions,'' dated September 30, 2022
(Commerce's First General Issues Supplemental); ``Petition for the
Imposition of Antidumping Duties on Imports of Certain Freight Rail
Couplers and Parts Thereof from the People's Republic of China:
Supplemental Questions,'' dated October 3, 2022; and ``Petition for
the Imposition of Antidumping Duties on Imports of Certain Freight
Rail Couplers and Parts Thereof from Mexico: Supplemental
Questions,'' dated October 3, 2022; see also Memoranda, ``Petitions
for the Imposition of Antidumping and Countervailing Duties on
Imports of Freight Rail Couplers and Parts Thereof from the People's
Republic of China and Antidumping Duties on Certain Freight Rail
Couplers and Parts Thereof from Mexico: Phone Call with Counsel to
the Petitioner,'' dated October 7, 2022 (Commerce's Second General
Issues Supplemental); ``Petition for the Imposition of Antidumping
Duties on Imports of Certain Freight Rail Couplers and Parts Thereof
from Mexico: Supplemental Questions,'' dated October 11, 2022; and
``Petition for the Imposition of Antidumping Duties on Imports of
Certain Freight Rail Couplers and Parts Thereof from the People's
Republic of China: Supplemental Questions,'' dated October 11, 2022.
\4\ See Petitioner's Letters, ``Certain Freight Rail Couplers
and Parts Thereof from the People's Republic of China and the United
Mexican States: Response to Supplemental Questions for Volume I
Common Issues and Injury Petition,'' dated October 4, 2022 (First
General Issues Supplement); ``Certain Freight Rail Couplers and
Parts Thereof from the People's Republic of China and the United
Mexican States: Response to the First Supplemental Questions for
Volume II China Antidumping Petition,'' dated October 7, 2022;
``Certain Freight Rail Couplers and Parts Thereof from the People's
Republic of China and the United Mexican States: Response to the
First Supplemental Questions for Volume IV Mexico Antidumping
Petition,'' dated October 7, 2022; ``Certain Freight Rail Couplers
and Parts Thereof from the People's Republic of China and the United
Mexican States: Response to Second Supplemental Questions for Volume
I Common Issues and Injury Petition,'' dated October 11, 2022
(Second General Issues Supplement); ``Certain Freight Rail Couplers
and Parts Thereof from the People's Republic of China and the United
Mexican States: Response to Second Supplemental Questions for Volume
IV Mexico Antidumping Duty Petition,'' dated October 13, 2022; and
``Certain Freight Rail Couplers and Parts Thereof from the People's
Republic of China and the United Mexican States: Response to Second
Supplemental Questions for Volume II China Antidumping Duty
Petition,'' dated October 13, 2022.
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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 and Mexico 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 freight
rail coupler industry in the United States. Consistent with section
732(b)(1) of the Act, the Petitions are accompanied by information
reasonably available to the petitioner supporting their allegations.
Commerce finds that the petitioner filed the Petitions on behalf of
the domestic industry, because the petitioner is an interested party,
as defined in section 771(9)(F) of the Act. Commerce also finds that
the petitioner demonstrated sufficient industry support for the
initiation of the requested AD investigations.\5\
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\5\ See infra, section on ``Determination of Industry Support
for the Petitions.''
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Periods of Investigation
Because the Petitions were filed on September 28, 2022, pursuant to
19 CFR 351.204(b)(1), the period of investigation (POI) for the Mexico
AD investigation is July 1, 2021, through June 30, 2022. Because China
is a non-market economy (NME) country, pursuant to section
351.204(b)(1), the POI for the China investigation is January 1, 2022,
through June 30, 2022.
Scope of the Investigations
The products covered by these investigations are freight rail
couplers from China and Mexico. For a full description of the scope of
these investigations, see the appendix to this notice.
Comments on the Scope of the Investigations
On September 30 and October 7, 2022, Commerce requested information
from the petitioner regarding the proposed scope to ensure that the
scope language in the Petitions is an accurate reflection of the
products for which the domestic industry is seeking relief.\6\ On
October 4 and 11, 2022, the petitioner revised the scope.\7\ The
description of merchandise covered by these investigations, as
described in the appendix to this notice, reflects these
clarifications.
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\6\ See Commerce's First General Issues Supplemental at 3-4; see
also Commerce's Second General Issues Supplemental at 1-2.
\7\ See First General Issues Supplement at 1-3 and Exhibit I-
Supp-1; see also Second General Issues Supplement at 2 and Exhibit
I-Supp2-4.
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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).\8\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determinations. If scope comments include factual information,\9\ all
such factual information should be limited to public information. 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 7, 2022. Any rebuttal comments, which may include
factual information, must be filed by 5:00 p.m. ET on November 17,
2022, which is ten calendar days from the initial comment deadline.
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\8\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\9\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
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Commerce requests that any factual information that parties
consider relevant to the scope of the investigations be submitted
during this period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigations may be relevant, the party may contact Commerce and
request permission to submit the additional information. All such
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) Antidumping Duty and Countervailing
Duty Centralized Electronic Service System (ACCESS), unless an
exception applies.\10\ An electronically filed document must be
received successfully in its entirety by the time and date it is due.
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\10\ 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 (FOP) or cost of production (COP) 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. Specifically, they may provide
[[Page 64446]]
comments as to which characteristics are appropriate to use as: (1)
general product characteristics; and (2) product comparison criteria.
We note that it is not always appropriate to use all product
characteristics as product comparison criteria. We base product
comparison criteria on meaningful commercial differences among
products. In other words, although there may be some physical product
characteristics utilized by manufacturers to describe freight rail
couplers, it may be that only a select few product characteristics take
into account commercially meaningful physical characteristics. In
addition, interested parties may comment on the order in which the
physical characteristics should be used in matching products.
Generally, Commerce attempts to list the most important physical
characteristics first and the least important characteristics last.
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 7,
2022. Any rebuttal comments must be filed by 5:00 p.m. ET on November
17, 2022. All comments and submissions to Commerce must be filed
electronically using ACCESS, as explained above, on the record of each
of the AD investigations.
Determination of Industry Support for the Petitions
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 U.S. 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,\11\ 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.\12\
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\11\ See section 771(10) of the Act.
\12\ 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 investigations.\13\ 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.\14\
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\13\ See Petitions at Volume I (17-21 and Exhibit I-19); see
also First General Issues Supplement at 8-9.
\14\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see AD Investigation Initiation Checklists, ``Certain Freight Rail
Couplers and Parts Thereof from the People's Republic of China,''
and ``Certain Freight Rail Couplers and Parts Thereof from Mexico,''
both dated concurrently with this notice (China AD Initiation
Checklist and Mexico AD Initiation Checklist, respectively), at
Attachment II (Analysis of Industry Support for the Antidumping and
Countervailing Duty Petitions Covering Certain Freight Rail Couplers
and Parts Thereof from the People's Republic of China and Mexico).
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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 Petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own production of freight rail couplers in 2021 and compared this to
the estimated total 2021 production of the domestic like product for
the entire U.S. industry.\15\ We relied on data provided by the
petitioner for purposes of measuring industry support.\16\
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\15\ See Petitions at Volume I (4-5 and Exhibits I-5 and I-18);
see also First General Issues Supplement at 4-6 and Exhibits I-Supp-
2 and I-Supp-3.
\16\ Id. For further discussion, see Attachment II of the China
and Mexico AD Initiation Checklists.
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Our review of the data provided in the Petitions, First General
Issues Supplement, Second General Issues Supplement, and other
information readily available to Commerce indicates that the petitioner
has established industry support for the Petitions.\17\ First, the
Petitions 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).\18\ 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
Petitions account for at least 25 percent of the total production of
the domestic like product.\19\ Finally, the domestic producers (or
workers) have met the statutory criteria for industry support under
section 732(c)(4)(A)(ii) of the Act because the domestic producers (or
workers) who support the Petitions 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
Petitions.\20\ Accordingly, Commerce determines that the Petitions were
filed on behalf of the domestic industry within the meaning of section
732(b)(1) of the Act.\21\
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\17\ See Petitions at Volume I (3-5 and Exhibits I-1 through I-
3, I-5, and I-18); see also First General Issues Supplemental
Response at 4-8 and Exhibits I-Supp-2 through I-Supp-4. For further
discussion, see Attachment II of the China and Mexico AD Initiation
Checklists.
\18\ See Attachment II of the China and Mexico AD Initiation
Checklists; see also section 732(c)(4)(D) of the Act.
\19\ See Attachment II of the China and Mexico AD Initiation
Checklists.
\20\ Id.
\21\ Id.
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[[Page 64447]]
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.\22\
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\22\ See Petitions at Volume I (34 and Exhibit I-34).
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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 margins.\23\ 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.\24\
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\23\ See Petitions at Volume I (16-17, 24-57, and Exhibits I-3,
I-4, I-15 through I-18, and I-21 through I-63); see also First
General Issues Supplement at 9-12 and Exhibits I-Supp-5 through I-
Supp-7.
\24\ See China and Mexico AD Initiation Checklists at Attachment
III (Analysis of Allegations and Evidence of Material Injury and
Causation for the Antidumping and Countervailing Duty Petitions
Covering Certain Freight Rail Couplers and Parts Thereof from the
People's Republic of China and Mexico).
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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 AD investigations of
imports of freight rail couplers from China and Mexico. 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 and
Mexico AD Initiation Checklists.
U.S. Price
For China and Mexico, the petitioner based export price (EP), on
pricing information for sales of, or sales offers for, freight rail
couplers produced in and exported from each country. The petitioner
made certain adjustments to U.S. price to calculate a net ex-factory
U.S. price, where appropriate.\25\
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\25\ See China and Mexico AD Initiation Checklists.
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Normal Value \26\
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\26\ In accordance with section 773(b)(2) of the Act, for the
Mexico investigation, Commerce will request information necessary to
calculate the constructed value (CV) and COP to determine whether
there are reasonable grounds to believe or suspect that sales of the
foreign like product have been made at prices that represent less
than the COP of the product.
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For Mexico, the petitioner stated that it was unable to obtain home
market or third country prices for freight rail couplers to use as a
basis for NV.\27\ Therefore, for Mexico, the petitioner calculated NV
based on CV.\28\ For further discussion of CV, see the section ``Normal
Value Based on Constructed Value.''
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\27\ See Mexico AD Initiation Checklist.
\28\ Id.
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Commerce considers China to be an NME country.\29\ 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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\29\ 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 claims that the Republic of Turkey (Turkey) is an
appropriate surrogate country for China because Turkey 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.\30\ The petitioner provided publicly available information
from Turkey to value all FOPs.\31\ Based on the information provided by
the petitioner, we determine that it is appropriate to use Turkey as a
surrogate country for initiation purposes.
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\30\ See Petitions at Volume II (8-9).
\31\ Id.
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Interested parties will have the opportunity to submit comments
regarding surrogate country selection 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 the
Chinese manufacturer's FOPs.\32\ Additionally, the petitioner
calculated factory overhead, selling, general and administrative (SG&A)
expenses, and profit based on the experience of a Turkish producer of
comparable merchandise (i.e., iron-casted products used in automotive,
agricultural, construction, mining, and machine building
applications).\33\
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\32\ Id. at 10 and Exhibit II-13.
\33\ Id. at 17 and Exhibit II-27.
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Normal Value Based on Constructed Value
As noted above, for Mexico, the petitioner stated it was unable to
obtain home market or third-country prices for freight rail couplers to
use as a basis for NV. Therefore, the petitioner calculated NV based on
CV.\34\
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\34\ See Mexico AD Initiation Checklist.
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Pursuant to section 773(e) of the Act, the petitioner calculated CV
as the sum of the cost of manufacturing (COM), SG&A expenses, financial
expenses, and profit.\35\ In calculating the COM, the petitioner relied
on the production experience and input consumption rates of a U.S.
freight rail couplers producer, valued using publicly available
information applicable to Mexico.\36\ In calculating SG&A expenses,
financial expenses, and profit ratios (where applicable), the
petitioner relied on the fiscal year 2021 financial statements of a
producer of comparable merchandise (i.e., iron-casted parts used in the
automotive industry) in Mexico.\37\
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\35\ Id.
\36\ Id.
\37\ Id.
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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 and Mexico are
being, or are likely to be, sold in the United States at LTFV. Based on
comparisons of EP to NV in accordance with sections 772 and 773 of the
Act, the estimated dumping margins for freight rail couplers for each
of the countries covered by this initiation are as follows: (1) China--
67.45 and 169.90 percent ad valorem; \38\ and (2) Mexico--160.05 and
187.08 percent ad valorem.\39\
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\38\ See China AD Initiation Checklist for details of the
calculations.
\39\ See Mexico AD Initiation Checklist for details of the
calculations.
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[[Page 64448]]
Initiation of LTFV Investigations
Based upon the examination of the Petitions and supplemental
responses, we find that they meet the requirements of section 732 of
the Act. Therefore, we are initiating AD investigations to determine
whether imports of freight rail couplers from China and Mexico 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
determinations no later than 140 days after the date of this
initiation.
Respondent Selection
China
In the Petitions, the petitioner named twelve companies in China as
producers and/or exporters of freight rail couplers.\40\ 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
twelve producers and/or exporters identified in the Petition, Commerce
intends to issue Q&V questionnaires to each potential respondent for
which the petitioner has provided a complete address.
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\40\ See Petitions at Volume I (12 and Exhibit I-13).
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In addition, Commerce will post the Q&V questionnaire along with
filing instructions on E&C's website at <a href="https://access.trade.gov/Resources/questionnaires/questionnaires-ad.html">https://access.trade.gov/Resources/questionnaires/questionnaires-ad.html</a>. Producers/exporters of
freight rail couplers from China that do not receive Q&V questionnaires
by mail 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 1, 2022, 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="https://www.trade.gov/administrative-protective-orders">https://www.trade.gov/administrative-protective-orders</a>.
Mexico
In the Petitions, the petitioner identified one company as a
producer/exporter of freight rail couplers in Mexico, ASF-K de Mexico,
S.de R.L. de C.V. Sahagun (Amsted), and provided independent third-
party information as support.\41\ We currently know of no additional
producers/exporters of subject merchandise from Mexico. Accordingly,
Commerce intends to examine all known producers/exporters in this
investigation (i.e., Amsted).
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\41\ See Petitions at Volume I (Exhibits I-3 and I-14) and
Volume IV (Exhibit IV-3); see also Second General Issues Supplement
at 3 and Exhibit I-Supp2-5.
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We invite interested parties to comment on this issue. Such
comments may include factual information within the meaning of 19 CFR
351.102(b)(21). Parties wishing to comment must do so within three days
of the publication of this notice in the Federal Register. Comments
must be filed electronically using ACCESS. An electronically-filed
document must be received successfully in its entirety via ACCESS by
5:00 p.m. ET on the specified deadline. Because we intend to examine
all known producers in Mexico, if no comments are received or if
comments received further support the existence of this sole producer/
exporter in Mexico, we do not intend to conduct respondent selection
and will proceed to issuing the initial AD questionnaire to Amsted.
However, if comments are received which create a need for a respondent
selection process, we intend to finalize our 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.\42\
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 Commerce's website at <a href="https://access.trade.gov/Resources/nme/nme-sep-rate.html">https://access.trade.gov/Resources/nme/nme-sep-rate.html</a>. The separate rate application will be
due 30 days after publication of this initiation notice.\43\ Exporters
and producers 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 companies from China submit a response both to 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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\42\ See E&C's Policy Bulletin No. 05.1, regarding, ``Separate-
Rates Practice and Application of Combination Rates in Antidumping
Investigation involving NME Countries,'' (April 5, 2005) (Policy
Bulletin 05.1), available at <a href="https://enforcement.trade.gov/policy/bull05-1.pdf">https://enforcement.trade.gov/policy/bull05-1.pdf</a>.
\43\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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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. Policy
Bulletin 05.1 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 Investigation 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.\44\
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\44\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
[[Page 64449]]
351.202(f), copies of the public version of the Petitions have been
provided to the governments of China and Mexico via ACCESS.
Furthermore, to the extent practicable, Commerce will attempt to
provide a copy of the public version of the Petitions to each exporter
named in the Petitions, as provided under 19 CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petitions were filed, whether there is a reasonable
indication that imports of freight rail couplers from China and/or
Mexico are materially injuring, or threatening material injury to, a
U.S. industry.\45\ A negative ITC determination for any country will
result in the investigation being terminated with respect to that
country.\46\ Otherwise, these investigations will proceed according to
statutory and regulatory time limits.
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\45\ See section 733(a) of the Act.
\46\ 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 \47\ 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.\48\ 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 these investigations.
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\47\ See 19 CFR 351.301(b).
\48\ See 19 CFR 351.301(b)(2).
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Particular Market Situation Allegation
Section 773(e) of the Act addresses the concept of particular
market situation (PMS) for purposes of CV, stating that ``if a
particular market situation exists such that the cost of materials and
fabrication or other processing of any kind does not accurately reflect
the COP in the ordinary course of trade, the administering authority
may use another calculation methodology under this subtitle or any
other calculation methodology.'' When an interested party submits a PMS
allegation pursuant to section 773(e) of the Act, Commerce will respond
to such a submission consistent with 19 CFR 351.301(c)(2)(v). If
Commerce finds that a PMS exists under section 773(e) of the Act, then
it will modify its dumping calculations appropriately.
Neither section 773(e) of the Act, nor 19 CFR 351.301(c)(2)(v), set
a deadline for the submission of PMS allegations and supporting factual
information. However, in order to administer section 773(e) of the Act,
Commerce must receive PMS allegations and supporting factual
information with enough time to consider the submission. Thus, should
an interested party wish to submit a PMS allegation and supporting new
factual information pursuant to section 773(e) of the Act, it must do
so no later than 20 days after submission of a respondent's initial
section D questionnaire response.
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.\49\ 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, we will inform parties in a letter or memorandum of the
deadline (including a specified time) by which extension requests must
be filed to be considered timely. An extension request must be made in
a separate, standalone 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 these investigations.\50\
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\49\ See 19 CFR 351.302.
\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="https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm">https://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="https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf">https://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 these investigations should ensure that they meet the requirements
of 19 CFR 351.103(d) (e.g., by filing the required letter of
appearance).\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 18, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigations
The scope of these investigations covers certain freight railcar
couplers (also known as ``fits'' or ``assemblies'') and parts
thereof. Freight railcar couplers are composed of two main parts,
namely knuckles and coupler
[[Page 64450]]
bodies but may also include other items (e.g., coupler locks, lock
lift assemblies, knuckle pins, knuckle throwers, and rotors). The
parts of couplers that are covered by the investigations include:
(1) E coupler bodies, (2) E/F coupler bodies, (3) F coupler bodies,
(4) E knuckles, and (5) F knuckles, as set forth by the Association
of American Railroads (AAR). The freight rail coupler parts (i.e.,
knuckles and coupler bodies) are included within the scope of the
investigations when imported separately. Coupler locks, lock lift
assemblies, knuckle pins, knuckle throwers, and rotors are covered
merchandise when imported in an assembly but are not covered by the
scope when imported separately.
Subject freight railcar couplers and parts are included within
the scope whether finished or unfinished, whether imported
individually or with other subject or nonsubject parts, whether
assembled or unassembled, whether mounted or unmounted, or if joined
with nonsubject merchandise, such as other nonsubject parts or a
completed railcar. Finishing includes, but is not limited to, arc
washing, welding, grinding, shot blasting, heat treatment,
machining, and assembly of various parts. When a subject coupler or
subject parts are mounted on or to other nonsubject merchandise,
such as a railcar, only the coupler or subject parts are covered by
the scope.
The finished products covered by the scope of these
investigations 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'' and/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 couplers and parts thereof,
whether fully assembled, unfinished or finished, or attached to a
railcar, is the country where the subject coupler parts were cast or
forged. Subject merchandise includes coupler parts as defined above
that have been further processed or further assembled, including
those coupler parts attached to a railcar 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 parts. The inclusion,
attachment, joining, or assembly of nonsubject parts with subject
parts or couplers either in the country of manufacture of the in-
scope product or in a third country does not remove the subject
parts or couplers from the scope.
The couplers that are the subject of these investigations 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 railcars 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.
Subject merchandise may also be imported under HTSUS statistical
reporting number 7325.99.5000. These HTSUS subheadings are provided
for convenience and customs purposes only; the written description
of the scope of these investigations is dispositive.
[FR Doc. 2022-23136 Filed 10-24-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on October 25, 2022.
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.