Notice2023-11358
Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China: Final Affirmative Determination of Sales at Less-Than-Fair Value and Final Affirmative Determination of Critical Circumstances
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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
May 30, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) determines that certain freight rail couplers and parts thereof (freight rail couplers) from the People's Republic of China (China) are being, or are likely to be, sold in the United States at less-than-fair value (LTFV) during the period of investigation, January 1, 2022, through June 30, 2022.
Full Text
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<title>Federal Register, Volume 88 Issue 103 (Tuesday, May 30, 2023)</title>
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[Federal Register Volume 88, Number 103 (Tuesday, May 30, 2023)]
[Notices]
[Pages 34485-34487]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-11358]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-145]
Certain Freight Rail Couplers and Parts Thereof From the People's
Republic of China: Final Affirmative Determination of Sales at Less-
Than-Fair Value and Final Affirmative Determination of Critical
Circumstances
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) determines that
certain freight rail couplers and parts thereof (freight rail couplers)
from the People's Republic of China (China) are being, or are likely to
be, sold in the United States at less-than-fair value (LTFV) during the
period of investigation, January 1, 2022, through June 30, 2022.
DATES: Applicable May 30, 2023.
FOR FURTHER INFORMATION CONTACT: Drew Jackson or Zachary Shaykin, AD/
CVD Operations, Office IV, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-4406 or (202)
482-2638, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 13, 2023, Commerce published in the Federal Register the
Preliminary Determination in this investigation.\1\ Commerce invited
interested parties to comment on the Preliminary Determination.
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\1\ See Certain Freight Rail Couplers and Parts Thereof from the
People's Republic of China: Preliminary Affirmative Determination of
Sales at Less Than Fair Value and Preliminary Affirmative
Determination of Critical Circumstances, 88 FR 15372 (March 13,
2023) (Preliminary Determination), and accompanying Preliminary
Decision Memorandum.
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For a complete description of the events that followed the
Preliminary Determination, see the Issues and Decision Memorandum.\2\
The Issues and Decision Memorandum is a public document and is
available 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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\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Certain Freight Rail Couplers and Parts Thereof
from the People's Republic of China,'' dated concurrently with this
notice (Issues and Decision Memorandum).
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Period of Investigation
The period of investigation is January 1, 2022, through June 30,
2022.
Scope of the Investigation
The products covered by this investigation are freight rail coupler
systems and certain components thereof from China. For a complete
description of the scope of this investigation, see appendix I.
Scope Comments
During the course of this investigation and the concurrent LTFV and
countervailing duty investigations of freight rail couplers from and
Mexico, and China, 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.\3\ We received comments
from interested parties on the Preliminary Scope Memorandum, which we
address in the Final Scope Memorandum.\4\ 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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\3\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated March 28, 2023 (Preliminary Scope Memorandum).
\4\ 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 accordance with section 733(e) of the Tariff Act of 1930, as
amended (the Act) and 19 CFR 351.206(h), Commerce determines that
critical circumstances exist with respect to imports of freight rail
couplers from China for the China-wide entity. For a full description
of the methodology and results of Commerce's critical circumstances
analysis, see the Preliminary Decision Memorandum and the Issues and
Decision Memorandum.
China-Wide Entity and Use of Adverse Facts Available (AFA)
For the purposes of this final determination, consistent with the
Preliminary Determination,\5\ we relied solely on the application of
AFA for the China-wide entity, pursuant to sections 776(a) and (b) of
the Act. Further, because no companies are eligible for a rate separate
from the China-wide entity, we continue to find that all exporters of
Chinese freight rail couplers are part of the China-wide entity. There
is no new information on the record that would cause us to revisit our
decision in the Preliminary Determination. Thus, we made no changes to
our analysis or to the China-wide entity's dumping margin for the final
determination. A detailed discussion of our application of AFA is
provided in the Preliminary Determination.\6\
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\5\ See Preliminary Determination PDM at 6-9.
\6\ Id.
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Combination Rates
Because no Chinese exporters qualified for a separate rate,
producer/exporter combination rates were not calculated for this final
determination.
Final Determination
Commerce determines that the following estimated weighted-average
dumping margin exists for the POI:
[[Page 34486]]
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Estimated
weighted-
Estimated average dumping
weighted- margin adjusted
Exporter/producer average dumping for export
margin subsidy
(percent) offset(s)
(percent) \7\
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China-Wide Entity..................... 169.90 139.49
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Disclosure
Because Commerce continues to find that all Chinese exporters of
freight rail couplers are part of the China-wide entity and continues
to rely solely on the application of AFA for the China-wide entity,
there are no calculations to disclose for this final determination.
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\7\ For the export subsidy offset calculation, see Commerce's
Memorandum, ``Freight Rail Couplers from the People's Republic of
China: Export Subsidy Offset Calculation for the Final
Determination,'' dated concurrently with this notice.
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Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 735(c)(1)(B) of the Act, Commerce will instruct U.S. Customs
and Border Protection (CBP) to continue to suspend liquidation of
subject merchandise as described in the ``Scope of the Investigation''
section entered, or withdrawn from warehouse, for consumption, on or
after March 13, 2023, which is the date of publication of the
affirmative Preliminary Determination in the Federal Register, at the
cash deposit rate indicated above.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), we will instruct CBP to require a cash deposit for such
entries of merchandise equal to the amount by which the normal value
exceeds the U.S. price as follows: (1) for all Chinese exporters of
subject merchandise, the cash deposit rate will be equal to the
estimated dumping margin established for the China-wide entity; and (2)
for all third country exporters of subject merchandise, the cash
deposit rate is also the cash deposit rate applicable to the China-wide
entity. These suspension of liquidation instructions will remain in
effect until further notice.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we intend to issue an antidumping
duty order and continue to require a cash deposit of estimated
antidumping duties for such entries of subject merchandise in the
amounts indicated above, in accordance with section 736(a) of the Act.
If the ITC determines that material injury, or threat of material
injury, does not exist, this proceeding will be terminated, and all
estimated duties deposited as a result of the suspension of liquidation
will be refunded or canceled.
ITC Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of our final affirmative determination of sales at LTFV. Because
the final determination in this proceeding is affirmative, in
accordance with section 735(b) of the Act, the ITC will make its final
determination as to whether the domestic industry in the United States
is materially injured, or threatened with material injury, by reason of
imports of freight rail couplers from China no later than 45 days after
our final determination.
If the ITC determines that material injury or threat of material
injury does not exist, the proceeding will be terminated and all cash
deposits will be refunded or canceled, as Commerce determines to be
appropriate. If the ITC determines that such injury does exist,
Commerce intends to issue an antidumping duty order directing CBP to
assess, upon further instruction by Commerce, antidumping duties on all
imports of the subject merchandise that are entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation, as discussed above in the ``Continuation of
Suspension of Liquidation'' section.
Notification Regarding Administrative Protective Order
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 administrative protective order (APO) of their
responsibility concerning the disposition of proprietary information
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely
written notification of the return/destruction of APO materials or
conversion to judicial protective order is hereby requested. Failure to
comply with the regulations and terms of an APO is a violation which is
subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
735(d) and 777(i) of the Act, and 19 CFR 351.210(c).
Dated: May 22, 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 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
[[Page 34487]]
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 Final Issues and Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Affirmative Determination of Critical Circumstances
VII. Changes since the Preliminary Determination
VIII. Adjustments to Cash Deposit Rates for Export Subsidies
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Discussion of the Issues
Comment 1: Critical Circumstances
Comment 2: Termination of the Investigation
XI. Recommendation
[FR Doc. 2023-11358 Filed 5-26-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on May 30, 2023.
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