Notice2022-26788
Boltless Steel Shelving Units Prepacked for Sale From the People's Republic of China: Initiation of Circumvention Inquiry on the Antidumping Duty and Countervailing Duty Orders
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
December 9, 2022
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from Edsal Manufacturing Company, Inc. (Edsal), the U.S. Department of Commerce (Commerce) is initiating a circumvention inquiry to determine whether imports of boltless steel shelving units prepackaged for sale (boltless steel shelving), which are completed or assembled in Malaysia using certain components from the People's Republic of China (China), are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on boltless steel shelving from China.
Full Text
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<title>Federal Register, Volume 87 Issue 236 (Friday, December 9, 2022)</title>
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[Federal Register Volume 87, Number 236 (Friday, December 9, 2022)]
[Notices]
[Pages 75592-75594]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-26788]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-018, C-570-019]
Boltless Steel Shelving Units Prepacked for Sale From the
People's Republic of China: Initiation of Circumvention Inquiry on the
Antidumping Duty and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Edsal Manufacturing Company,
Inc. (Edsal), the U.S. Department of Commerce (Commerce) is initiating
a circumvention inquiry to determine whether imports of boltless steel
shelving units prepackaged for sale (boltless steel shelving), which
are completed or assembled in Malaysia using certain components from
the People's Republic of China (China), are circumventing the
antidumping duty (AD) and countervailing duty (CVD) orders on boltless
steel shelving from China.
DATES: Applicable December 9, 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 October 20, 2022, pursuant to section 781(b) of the Tariff Act
of 1930, as amended (the Act), and 19 CFR 351.226(c), Edsal filed a
circumvention inquiry request alleging that boltless
[[Page 75593]]
steel shelving completed or assembled in Malaysia using certain
components manufactured in China and imported to the United States are
circumventing the Orders \1\ and, accordingly, should be included
within the scope of the Orders.\2\ On November 21, 2022, we extended
the deadline to initiate this circumvention inquiry by 15 days, to
December 5, 2022, in accordance with 19 CFR 351.226(d)(1).\3\
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\1\ See Boltless Steel Shelving Units Prepackaged for Sale from
the People's Republic of China: Antidumping Duty Order, 80 FR 63741
(October 21, 2015); Boltless Steel Shelving Units Prepackaged for
Sale from the People's Republic of China: Amended Final Affirmative
Countervailing Duty Determination and Countervailing Duty Order, 80
FR 63745 (October 21, 2015) (collectively, Orders).
\2\ See Edsal's Letter, ``Boltless Steel Shelving Units
Prepackaged for Sale from China--Petitioner's Request for
Circumvention Ruling Pursuant to Section 781(b), as Amended,'' dated
October 20, 2022.
\3\ See Memorandum, ``Extension of Time to Determine Whether to
Initiate Circumvention Inquiry,'' dated November 21, 2022.
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Scope of the Orders
The merchandise covered by these Orders is boltless steel shelving
units prepackaged for sale. Merchandise covered by these Orders is
currently classified in the Harmonized Tariff Schedule of the United
States (HTSUS) under subheadings 9403.20.0018, 9403.20.0020,
9403.20.0025, and 9403.20.0026, but may also enter through HTSUS
9403.10.0040. Although these HTSUS subheadings are provided for
convenience and customs purposes, the written description of the scope
of the Orders is dispositive. For a complete description of the scope
of the Orders, see the Initiation Memorandum.\4\
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\4\ See Memorandum, ``Boltless Steel Shelving Units Prepackaged
for Sale from the People's Republic of China: Initiation of
Circumvention Inquiries,'' dated concurrently with, and hereby
adopted by, this notice (Initiation Memorandum).
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Merchandise Subject to the Circumvention Inquiry
This circumvention inquiry covers boltless steel shelving that has
been completed or assembled in Malaysia using, at a minimum, the key
components of boltless steel shelving, i.e., vertical posts and
horizontal beams, from China, that are then subsequently exported to
the United States.
Initiation of Circumvention Inquiry
Section 351.226(d) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
request for a circumvention inquiry allege ``that the elements
necessary for a circumvention determination under section 781 of the
Act exist'' and be ``accompanied by information reasonably available to
the interested party supporting these allegations.'' Edsal alleged
circumvention pursuant to section 781(b) of the Act (merchandise
completed or assembled in other foreign countries).
According to section 781(b)(1) of the Act, after taking into
account any advice provided by the U.S. International Trade Commission
(ITC) under section 781(e) of the Act, Commerce may find merchandise
imported into the United States to be covered by the scope of an order
if: (A) merchandise imported into the United States is of the same
class or kind as any merchandise produced in a foreign country that is
the subject of an AD order or finding or a CVD order; (B) before
importation into the United States, such imported merchandise is
completed or assembled in another foreign country from merchandise
which is subject to the order or finding or is produced in the foreign
country with respect to which such order or finding applies; (C) the
process of assembly or completion in the foreign country referred to in
subparagraph (B) is minor or insignificant; (D) the value of the
merchandise produced in the foreign country to which the AD (or CVD)
order applies is a significant portion of the total value of the
merchandise exported to the United States; and (E) the administering
authority determines that action is appropriate to prevent evasion of
such order or finding.
In determining whether the process of assembly or completion in a
third country is minor or insignificant under section 781(b)(1)(C) of
the Act, section 781(b)(2) of the Act directs Commerce to consider: (A)
the level of investment in the foreign country; (B) the level of
research and development in the foreign country; (C) the nature of the
production process in the foreign country; (D) the extent of production
facilities in the foreign country; and (E) whether the value of
processing performed in the foreign country represents a small
proportion of the value of the merchandise imported into the United
States.
In addition, section 781(b)(3) of the Act sets forth additional
factors to consider in determining whether to include merchandise
completed or assembled in a third country within the scope of an AD or
CVD order. Specifically, Commerce shall take into account such factors
as: (A) the pattern of trade, including sourcing patterns; (B) whether
the manufacturer or exporter of the merchandise that was shipped to the
third country for completion or assembly is affiliated with the person
in the third country who assembles or completes the merchandise that is
subsequently imported into the United States; and (C) whether imports
of the merchandise into the third country that was completed or
assembled have increased after the initiation of the investigation
which resulted in the issuance of the order or finding.
Based on our analysis of Edsal's circumvention request, we
determined that Edsal's request satisfied the criteria under 19 CFR
351.226(c), and thus, pursuant to 19 CFR 351.226(d)(1)(ii), we have
accepted the request and are initiating the requested circumvention
inquiry of the Orders. For a full discussion of the basis for our
decision to initiate the requested circumvention inquiry, see the
Initiation Memorandum.\5\ Moreover, as explained in the Initiation
Memorandum, based on the information provided by Edsal, we are
initiating a country-wide circumvention inquiry. Commerce has taken
this approach in prior circumvention inquiries where the facts
warranted initiation on a country-wide basis.\6\
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\5\ See Initiation Memorandum.
\6\ See, e.g., Certain Corrosion-Resistant Steel Products from
the Republic of Korea and Taiwan: Initiation of Anti-Circumvention
Inquiries on the Antidumping Duty and Countervailing Duty Orders, 83
FR 37785 (August 2, 2018); Carbon Steel Butt-Weld Pipe Fittings from
the People's Republic of China: Initiation of Anti-Circumvention
Inquiry on the Antidumping Duty Order, 82 FR 40556, 40560 (August
25, 2017) (stating at initiation that Commerce would evaluate the
extent to which a country-wide finding applicable to all exports
might be warranted); and Certain Corrosion-Resistant Steel Products
from the People's Republic of China: Initiation of Anti-
Circumvention Inquiries on the Antidumping Duty and Countervailing
Duty Orders, 81 FR 79454, 79458 (November 14, 2016) (stating at
initiation that Commerce would evaluate the extent to which a
country-wide finding applicable to all exports might be warranted).
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Consistent with the approach taken in prior circumvention inquiries
that Commerce initiated on a country-wide basis, we intend to solicit
information from certain companies in Malaysia concerning their
production of boltless steel shelving and their shipments thereof to
the United States. A company's failure to completely respond to
Commerce's requests for information may result in the application of
partial or total facts available, pursuant to section 776(a) of the
Act, which may include adverse inferences, pursuant to section 776(b)
of the Act.
For companion AD and CVD proceedings, ``the Secretary will initiate
[[Page 75594]]
and conduct a single inquiry with respect to the product at issue for
both orders only on the record of the antidumping proceeding.'' \7\
Further, once ``the Secretary issues a final circumvention
determination on the record of the antidumping duty proceeding, the
Secretary will include a copy of that determination on the record of
the countervailing duty proceeding.'' \8\ Accordingly, once Commerce
concludes this circumvention inquiry, Commerce intends to place its
final circumvention determination on the record of the companion CVD
proceeding.
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\7\ See 19 CFR 351.226(m)(2).
\8\ Id.
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Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs
and Border Protection (CBP) of its initiation of the requested
circumvention inquiries and direct CBP to continue the suspension of
liquidation of entries of products subject to the circumvention
inquiries that were already subject to the suspension of liquidation
and to apply the cash deposit rate that would be applicable if the
products were determined to be covered by the scope of the Orders.
Should Commerce issue preliminary or final circumvention
determinations, Commerce will follow the suspension of liquidation
rules under 19 CFR 351.226(l)(2)-(4).
Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(b) of the Act,
Commerce has determined that Edsal's request for a circumvention
inquiry satisfies the requirements of 19 CFR 351.226(c). Accordingly,
Commerce is notifying all interested parties of the initiation of a
circumvention inquiry to determine whether U.S. imports of boltless
steel shelving that have been completed or assembled in, and exported
from, Malaysia using certain components manufactured in China, are
circumventing the Orders. We included a description of the products
that are subject to the circumvention inquiry, and an explanation of
the reasons for Commerce's decision to initiate these inquiries, in the
accompanying Initiation Memorandum.\9\ In accordance with 19 CFR
351.226(e)(2), Commerce intends to issue its preliminary determination
in these circumvention proceedings no later than 150 days from the date
of publication of this notice in the Federal Register.
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\9\ See Initiation Memorandum.
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This notice is published in accordance with section 781(b) of the
Act and 19 CFR 351.226(d)(1)(ii).
Dated: December 5, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Circumvention Initiation Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiry
V. Statutory and Regulatory Framework for Circumvention Inquiries
VI. Statutory Analysis for the Circumvention Inquiry
VII. Country-Wide Circumvention Inquiry
VIII. Recommendation
[FR Doc. 2022-26788 Filed 12-8-22; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on December 9, 2022.
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