Notice2023-04438
Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Preliminary Affirmative Critical Circumstances Determination
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Published
March 3, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain freight rail couplers and parts thereof (freight rail couplers) From the People's Republic of China (China) during the period of investigation January 1, 2021, through December 31, 2021.
Full Text
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<title>Federal Register, Volume 88 Issue 42 (Friday, March 3, 2023)</title>
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[Federal Register Volume 88, Number 42 (Friday, March 3, 2023)]
[Notices]
[Pages 13425-13428]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-04438]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-146]
Certain Freight Rail Couplers and Parts Thereof From the People's
Republic of China: Preliminary Affirmative Countervailing Duty
Determination and Preliminary Affirmative Critical Circumstances
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain freight rail couplers and parts
thereof (freight rail couplers) From the People's Republic of China
(China) during the period of investigation January 1, 2021, through
December 31, 2021.
DATES: Applicable March 3, 2023.
FOR FURTHER INFORMATION CONTACT: Terre Keaton Stefanova or Paul Gill,
AD/CVD Operations, Office IX, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-1280 or (202)
482-5673, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). On October 18,
2022,
[[Page 13426]]
Commerce published the notice of initiation of this investigation.\1\
On December 2, 2022, Commerce postponed the preliminary determination
of this investigation until February 27, 2023.\2\ For a complete
description of the events that followed the initiation of this
investigation, see the Preliminary Decision Memorandum.\3\ A list of
topics discussed in the Preliminary Decision Memorandum is included as
Appendix II to this notice. The Preliminary Decision Memorandum is a
public document and is on file electronically via Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (ACCESS). ACCESS is available to registered users at
<a href="http://access.trade.gov">http://access.trade.gov</a>. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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\1\ See Certain Freight Rail Couplers and Parts Thereof from the
People's Republic of China: Initiation of Countervailing Duty
Investigation, 87 FR 64440 (October 25, 2022) (Initiation Notice).
\2\ See Certain Freight Rail Couplers and Parts Thereof from the
People's Republic of China: Postponement of Preliminary
Determination, 87 FR 74128 (December 2, 2022).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Countervailing Duty Investigation of Certain
Freight Rail Couplers and Parts Thereof from the People's Republic
of China,'' dated concurrently with, and hereby adopted by, this
notice (Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are freight rail
couplers from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ We received
comments from several parties concerning the scope of the antidumping
duty (AD) and countervailing duty (CVD) investigations of freight rail
couplers as it appeared in the Initiation Notice, which are listed in
the Preliminary Decision Memorandum.\6\ We are currently evaluating the
scope comments filed by the interested parties and intend to issue our
preliminary decision regarding the scope of the AD and CVD
investigations shortly. We will incorporate the scope decisions from
the AD investigations into the scope of the final CVD determination for
this investigation, after considering any relevant comments submitted
in scope case and rebuttal briefs.
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\4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997).
\5\ See Initiation Notice, 87 FR 64441.
\6\ See Preliminary Decision Memorandum at 1-22.
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Preliminary Affirmative Determination of Critical Circumstances
In accordance with section 703(e)(1) of the Act, we preliminarily
find that critical circumstances exist with respect to imports of
subject merchandise from Chongqing Tongyao, Qingdao Sanheshan, the non-
responsive companies,\7\ and all other producers and/or exporters. For
a full discussion of our preliminary critical circumstances
determination, see the ``Critical Circumstances'' section of the
Preliminary Decision Memorandum.
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\7\ The non-responsive companies are: (1) Chongqing Changzheng
Heavy Industry Co., Ltd.; (2) CRRC Qiqihar Co., Ltd.; (3) NanJing
Zhongsheng Rolling Stock Components Co. Ltd.; (4) Ningbo Minghui
Metal Technology Co., Ltd.; (5) Qingdao Lianshan Casting Co., Ltd.;
(6) Shaanxi Haiduo Railway Technology Development Co., Ltd.; and (7)
Shanghai Voith Xiagujin Chuang Coupler Technology Co., Ltd.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\8\
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\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied on facts
available and, because Commerce finds that necessary information was
missing from the record and because respondents did not act to the best
of their ability to respond to Commerce's requests for information,
Commerce drew an adverse inference in selecting from among the facts
otherwise available.\9\ For further information, see the ``Use of Facts
Otherwise Available and Adverse Inferences'' section in the Preliminary
Decision Memorandum.
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\9\ See sections 776(a) and (b) of the Act.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
Pursuant to section 705(c)(5)(A)(ii) of the Act, if the individual
estimated countervailable subsidy rates established for all exporters
and producers individually examined are zero, de minimis, or determined
based entirely on facts otherwise available, Commerce may use ``any
reasonable method'' to establish the estimated subsidy rate for all
other producers or exporters. In this investigation, Commerce
preliminarily determined the individually estimated subsidy rate for
each of the individually examined respondents based entirely on facts
available under section 776 of the Act. This is the only rate available
in this proceeding for deriving the all-others rate. Consequently,
pursuant to sections 703(d) and 705(c)(5)(A)(ii) of the Act, Commerce
established the all-others rate by applying the countervailable subsidy
rate assigned to the mandatory respondents.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Chongqing Changzheng Heavy Industry Co., Ltd............ 265.99
Chongqing Tongyao Transportation Equipment Co........... 265.99
CRRC Qiqihar Co., Ltd................................... 265.99
NanJing Zhongsheng Rolling Stock Components Co. Ltd..... 265.99
Ningbo Minghui Metal Technology Co., Ltd................ 265.99
Qingdao Lianshan Casting Co., Ltd....................... 265.99
Qingdao Sanheshan Precision Casting Co., Ltd............ 265.99
[[Page 13427]]
Shaanxi Haiduo Railway Technology Development Co., Ltd.. 265.99
Shanghai Voith Xiagujin Chuang Coupler Technology Co., 265.99
Ltd....................................................
All Others.............................................. 265.99
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Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, because we find
that critical circumstances exist for Chongqing Tongyao, Qingdao
Sanheshan, the non-responsive companies, and all other producers and/or
exporters, Commerce will direct U.S. Customs and Border Protection
(CBP) to suspend liquidation of entries of subject merchandise as
described in the scope of the investigation entered, or withdrawn from
warehouse, for consumption on or after the date 90 days prior to the
date of publication of this notice in the Federal Register. Further,
pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a
cash deposit equal to the rates indicated above.
Disclosure
Normally, Commerce discloses its calculations and analysis
performed in connection with the preliminary determination to
interested parties within five days of its public announcement, or if
there is no public announcement, within five days of the date of
publication of this notice, in accordance with 19 CFR 351.224(b).
However, because Commerce preliminarily applied total AFA in the
calculation of the benefit for Chongqing Tongyao, Qingdao Sanheshan,
and the non-responsive companies, and the applied AFA rates are based
on rates calculated in prior proceedings, there are no calculations to
disclose.
Verification
Because the examined respondents in this investigation did not
provide information Commerce requested and Commerce preliminarily
determines that each of the examined respondents have been
uncooperative, it will not conduct verification.
Public Comment
All interested parties will have the opportunity to submit scope
case and rebuttal briefs on the preliminary decision regarding the
scope of the AD and CVD investigations. The deadlines to submit scope
case and rebuttal briefs will be provided in the preliminary scope
decision memorandum. For all scope case and rebuttal briefs, parties
must file identical documents simultaneously on the records of the
ongoing AD and CVD freight rail couplers investigations. No new factual
information or business proprietary information may be included in
either scope case or rebuttal briefs.
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than 20 days after the date of publication of the preliminary
determination. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than seven days after the deadline
date for case briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this investigation
are encouraged to submit with each argument: (1) a statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities. Commerce has modified certain of its requirements for
serving documents containing business proprietary information until
further notice.\11\
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\10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
\11\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, and a list of the issues to be discussed. Oral
presentations at the hearing will be limited to issues raised in the
briefs. If a request for a hearing is made, parties will be notified of
the time and date for the hearing.\12\
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\12\ See 19 CFR 351.310(d).
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International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final determination is affirmative, the ITC will determine before
the later of 120 days after the date of this preliminary determination
or 45 days after the final determination whether imports of freight
rail couplers from China are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: February 27, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation 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 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
investigation 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 investigation 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 non-subject parts, whether
assembled or unassembled, whether mounted or unmounted, or if joined
with non-subject merchandise, such as other non-subject 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 non-subject merchandise,
such as a railcar, only the coupler or subject parts 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
[[Page 13428]]
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 non-subject 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 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 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 the investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Injury Test
V. Diversification of China's Economy
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Critical Circumstances
IX. Recommendation
[FR Doc. 2023-04438 Filed 3-2-23; 8:45 am]
BILLING CODE 3510-DS-P
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