Notice2023-10779
Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Critical Circumstances Determination, In Part
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Published
May 19, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) 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 97 (Friday, May 19, 2023)</title>
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[Federal Register Volume 88, Number 97 (Friday, May 19, 2023)]
[Notices]
[Pages 32184-32187]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-10779]
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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: Final Affirmative Countervailing Duty Determination
and Final Affirmative Critical Circumstances Determination, In Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) 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 May 19, 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
On March 3, 2023, Commerce published the Preliminary Determination
of this investigation in the Federal Register.\1\ We invited interested
parties to comment on the Preliminary Determination. In March 2023, we
received comments from Strato Inc. (Strato) and Wabtec Corporation
(Wabtec), U.S. importers of freight rail couplers from China.\2\ On
[[Page 32185]]
April 6, 2023, we received rebuttal comments from the Coalition of
Freight Coupler Producers (the petitioner).\3\ For a complete
description of the events that followed the Preliminary Determination,
see the Issues and Decision Memorandum.\4\ The Issues and 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="https://access.trade.gov">https://access.trade.gov</a>. In addition, a complete
version of the Issues and 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: Preliminary Affirmative Countervailing
Duty Determination and Preliminary Affirmative Critical
Circumstances Determination, 88 FR 13425 (March 3, 2023)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
\2\ See Strato's Letter, ``Strato Administrative Case Brief,''
date March 23, 2023; and Wabtec's Letter, ``Case Brief for Final
Negative Countervailing Duty Determination and Final Negative
Critical Circumstances Determination,'' dated March 23, 2023.
\3\ See Petitioner's Letter, ``Petitioner's Rebuttal Brief,''
dated April 6, 2023.
\4\ See Memorandum, ``Issues and Decision Memorandum for the
Final 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 (Issues and Decision Memorandum).
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Period of Investigation
The period of investigation is January 1, 2021, through December
31, 2021.
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
During the course of this investigation and the concurrent less-
than-fair value investigations of freight rail couplers from China and
Mexico, Commerce received scope comments from interested parties.
Commerce issued a Preliminary Scope Memorandum to address these
comments and set aside a period of time for parties to address scope
issues in scope case and rebuttal briefs.\5\ We received comments from
interested parties on the Preliminary Scope Memorandum, which we
address in the Final Scope Memorandum.\6\ As a result of these
comments, we made certain changes to the scope of these investigations
from that published in the Preliminary Determination. See Appendix I.
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\5\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated March 28, 2023 (Preliminary Scope Memorandum).
\6\ See Memorandum, ``Final Scope Decision Memorandum,'' dated
concurrently with this notice (Final Scope Memorandum).
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Final Affirmative Determination of Critical Circumstances, In Part
In the Preliminary Determination, Commerce preliminarily
determined, pursuant to section 703(e)(c)(1) of the Tariff Act of 1930,
as amended (the Act), that critical circumstances exist for Chongqing
Tongyao Transportation Equipment Co. (Chongqing Tongyao), Qingdao
Sanheshan Precision Casting Co., Ltd. (Qingdao Sanheshan), the non-
responsive companies,\7\ and all other producers and/or exporters.\8\
For this final determination, we continue to find that critical
circumstances exist for Chongqing Tongyao, Qingdao Sanheshan, and the
non-responsive companies, in accordance with section 705(a)(2) of the
Act. However, for all other producers and/or exporters, we now find
that we are unable to make a determination of whether there were
massive imports of the subject merchandise over a relatively short
period. Therefore, we do not find that critical circumstances exist
with respect to all other producers and/or exporters. For the analysis
of critical circumstances for the final determination, see Issues and
Decision Memorandum at Comment 1.
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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.
\8\ See Preliminary Determination, 88 FR at 13426.
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Analysis of Comments Received
The issues raised in comments that were submitted by parties in
this investigation are addressed in the Issues and Decision Memorandum.
A list of the issues addressed in the Issues and Decision Memorandum is
attached to this notice at Appendix II.
Changes Since the Preliminary Determination
Based on our analysis of the comments received from interested
parties, we made certain changes to our preliminary critical
circumstances determination, as noted above. For a discussion of these
changes, see the Issues and Decision Memorandum. However, as no
interested party submitted comments on the subsidy rates selected in
the Preliminary Determination, we made no changes to the subsidy rates
assigned to Chongqing Tongyao, Qingdao Sanheshan, and the non-
responsive companies.
Analysis of Subsidy Programs--Adverse Facts Available (AFA)
For the purposes of this final determination, Commerce relied
solely on facts available pursuant to section 776 of the Act, because
neither the Government of China nor the mandatory respondents,
Chongqing Tongyao and Qingdao Sanheshan, participated in this
investigation. Furthermore, as stated in our Preliminary Determination,
the non-responsive companies also withheld necessary information that
Commerce requested from them, failed to provide information within the
deadlines established, and significantly impeded this proceeding by
failing to respond to Commerce's quantity and value questionnaire.\9\
Therefore, because the mandatory respondents, the non-responsive
companies, and the Government of China did not cooperate to the best of
their abilities in responding to our requests for information in this
investigation, we drew adverse inferences in selecting from among the
facts otherwise available, in accordance with sections 776(a)-(b) of
the Act. We received no comments from interested parties regarding our
application of AFA to determine the countervailability of, and rates
for, the subsidy programs at issue in this investigation. Consistent
with the Preliminary Determination, we continue to apply AFA to
determine the appropriate subsidy rates for this investigation. 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 7.
\10\ See Preliminary Determination PDM at 4-14.
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All-Others Rate
As discussed in the Preliminary Determination, Commerce based the
selection of the all-others rate on the countervailable subsidy rate
established for the mandatory respondents, in accordance with 703(d) of
the Act.\11\ Consistent with section 705(c)(5)(A)(ii) of the Act, we
made no changes to the selection of the all-others rate for the final
determination.
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\11\ See Preliminary Determination, 88 FR at 13426.
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Final Determination
Commerce 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
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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Continuation of Suspension of Liquidation
In accordance with section 705(c)(4)(A) of the Act, Commerce
intends to instruct U.S. Customs and Border Protection (CBP) to
continue to suspend liquidation of entries of subject merchandise, as
described in Appendix I of this notice, for Chongqing Tongyao, Qingdao
Sanheshan, and the non-responsive companies, entered, or withdrawn from
warehouse, for consumption on or after December 3, 2022, which is 90
days prior to the date of publication of the Preliminary Determination
in the Federal Register. However, for all other producers and/or
exporters, Commerce intends to instruct CBP to continue to suspend
liquidation of entries of subject merchandise, as described in Appendix
I of this notice, entered, or withdrawn from warehouse, for consumption
on or after March 3, 2023, which is the date of publication of the
Preliminary Determination in the Federal Register, at the all-others
rate indicated above. These suspension of liquidation instructions will
remain in effect until further notice.
Because we now find that critical circumstances do not exist for
all other producers and/or exporters, we will direct CBP to terminate
the retroactive suspension of liquidation ordered at the Preliminary
Determination and release any cash deposits that were required prior to
March 3, 2022, the date of publication of the Preliminary Determination
in the Federal Register, consistent with section 705(c)(3) of the Act.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we intend to issue a countervailing
duty order and continue to require a case deposit of estimated
countervailing duties for such entries of subject merchandise in the
amounts indicated above, in accordance with 706(a) of the Act. If the
ITC issues a final affirmative injury determination but a final
negative determination of critical circumstances, we will instruct CBP
to liquidate entries prior to the date of publication of the
Preliminary Determination without regard to duties, and all estimated
duties deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled. If the ITC determines that
material injury, or threat of material injury, does not exist, this
proceeding will be terminated, and all estimated duties deposited as a
result of the suspension of liquidation will be refunded or canceled.
ITC Notification
In accordance with section 705(d) of the Act, we intend to notify
the ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of freight rail
couplers from China. Because the final determination in this proceeding
is affirmative, in accordance with section 705(b) of the Act, the ITC
will make its final determination as to whether the domestic industry
in the United States is materially injured, or threatened with material
injury, by reason of imports of freight rail couplers from China no
later than 45 days after our final determination.
If the ITC determines that material injury or threat of material
injury does not exist, this proceeding will be terminated and all cash
deposits will be refunded or canceled, as Commerce determines to be
appropriate. If the ITC determines that such injury does exist,
Commerce intends to issue a countervailing duty order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise that are entered, or withdrawn
from warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Order (APO)
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: May 15, 2023.
Lisa W. Wang,
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 nonsubject parts, whether
assembled or unassembled, whether mounted or unmounted, or if joined
with nonsubject merchandise, such as other nonsubject parts
[[Page 32187]]
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 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'' 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 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
9803.00.50. 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 this investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Final Critical Circumstances Determination
IV. Analysis of Comments
Comment 1: Whether Commerce Should Reverse its Preliminary
Affirmative Critical Circumstances Determinations
Comment 2: Whether Commerce Should Terminate the Investigation
V. Recommendation
[FR Doc. 2023-10779 Filed 5-18-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on May 19, 2023.
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