Notice2023-14891
Certain Freight Rail Couplers and Parts Thereof From the People's Republic of China: Countervailing Duty Order
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
July 14, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
Based on affirmative final determinations by the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC), Commerce is issuing a countervailing duty (CVD) order on certain freight rail couplers and parts thereof (freight rail couplers) from the People's Republic of China (China).
Full Text
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<title>Federal Register, Volume 88 Issue 134 (Friday, July 14, 2023)</title>
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[Federal Register Volume 88, Number 134 (Friday, July 14, 2023)]
[Notices]
[Pages 45135-45138]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-14891]
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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: Countervailing Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the U.S.
Department of Commerce (Commerce) and the U.S. International Trade
Commission (ITC), Commerce is issuing a countervailing duty (CVD) order
on certain freight rail couplers and parts thereof (freight rail
couplers) from the People's Republic of China (China).
DATES: Applicable July 14, 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
In accordance with section 705(d) of the Tariff Act of 1930, as
amended (the Act), on May 19, 2023, Commerce published its affirmative
final determination in the CVD investigation of freight rail couplers
from China.\1\ On July 3, 2023, the ITC notified Commerce of its final
affirmative determination that an industry in the United States is
[[Page 45136]]
materially injured by reason of subsidized imports of freight rail
couplers from China, within the meaning of section 705(b)(1)(A)(i) of
the Act.\2\
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\1\ See 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, 88 FR 32184 (May 19, 2023) (Final
Determination).
\2\ See ITC's Letter, ``Notification of ITC Final
Determinations,'' dated July 3, 2023 (ITC Notification).
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Scope of the Order
The products covered by this order are freight rail couplers from
China. For a complete description of the scope of the order, see the
appendix to this notice.
Countervailing Duty Order
On July 3, 2023, in accordance with section 705(d) of the Act, the
ITC notified Commerce of its final determination that an industry in
the United States is materially injured within the meaning of section
705(b)(1)(A)(i) of the Act by reason of imports of freight rail
couplers from China.\3\ Therefore, Commerce is issuing this CVD order
in accordance with sections 705(c)(2) and 706 of the Act. Because the
ITC determined that imports of freight rail couplers from China are
materially injuring a U.S. industry, unliquidated entries of such
merchandise from China entered, or withdrawn from warehouse, for
consumption are subject to the assessment of countervailing duties.
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\3\ Id.
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Therefore, in accordance with section 706(a)(1) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
assess, upon further instruction by Commerce, countervailing duties on
all relevant entries of freight rail couplers from China.
Countervailing duties will be assessed on unliquidated entries of
freight rail couplers from China which are entered, or withdrawn from
warehouse, for consumption on or after March 3, 2023, the date of
publication of the Preliminary Determination,\4\ but will not be
assessed on entries occurring after the expiration of the provisional
measures period and before publication of the ITC's final affirmative
injury determination, as further described in the ``Provisional
Measures'' section below.
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\4\ 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).
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Suspension of Liquidation and Cash Deposits
In accordance with section 706 of the Act, Commerce will instruct
CBP to continue to suspend liquidation of all relevant entries of
freight rail couplers from China. These instructions suspending
liquidation will remain in effect until further notice.
Commerce also intends, pursuant to section 706(a)(1) of the Act, to
instruct CBP to require cash deposits equal to the amounts as indicated
below. Accordingly, effective on the date of publication of the ITC's
final affirmative injury determination in the Federal Register, CBP
will require, at the same time as importers would deposit estimated
normal customs duties on the subject merchandise, a cash deposit for
each entry of subject merchandise equal to the subsidy rates listed
below.\5\ The all-others rate applies to all producers or exporters not
specifically listed below, as appropriate.
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\5\ See section 706(a)(3) of the Act.
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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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Provisional Measures
Section 703(d) of the Act states that suspension of liquidation
instructions issued pursuant to an affirmative preliminary
determination may not remain in effect for more than four months.
Commerce published its Preliminary Determination on March 3, 2023.\6\
Therefore, the provisional measures period, beginning on the date of
publication of the Preliminary Determination, ended on June 30, 2023.
Pursuant to section 707(b) of the Act, the collection of cash deposits
at the rates listed above will begin on the date of publication of the
ITC's final affirmative injury determinations.
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\6\ See Preliminary Determination.
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Therefore, in accordance with section 703(d) of the Act, Commerce
will instruct CBP to terminate the suspension of liquidation and to
liquidate, without regard to countervailing duties, unliquidated
entries of freight rail couplers from China entered, or withdrawn from
warehouse, for consumption after June 30, 2023, the date on which the
provisional measures expired, through July 6, 2023, the day preceding
the date of publication of the ITC's final injury determination in the
Federal Register.\7\ Suspension of liquidation will resume on the date
of publication of the ITC's final affirmative injury determination in
the Federal Register.
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\7\ See Certain Freight Rail Couplers and Parts Thereof from
China, 88 FR 43398 (July 7, 2023).
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Critical Circumstances
With regard to the ITC's negative critical circumstances
determination on imports of freight rail couplers from China,\8\
Commerce intends to instruct CBP to lift suspension and to refund any
cash deposits made to secure the payment of estimated countervailing
duties with respect to entries of the subject merchandise entered, or
withdrawn from warehouse, for consumption on or after December 3, 2022
(i.e., 90 days prior to the date of the publication of the Preliminary
Determination), but before March 3, 2023 (i.e., the date of publication
of the Preliminary Determination).
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\8\ Id.
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Establishment of the Annual Inquiry Service List
On September 20, 2021, Commerce published the Final Rule in the
Federal
[[Page 45137]]
Register.\9\ On September 27, 2021, Commerce also published the
Procedural Guidance in the Federal Register.\10\ The Final Rule and
Procedural Guidance provide that Commerce will maintain an annual
inquiry service list for each order or suspended investigation, and any
interested party submitting a scope ruling application or request for
circumvention inquiry shall serve a copy of the application or request
on the persons on the annual inquiry service list for that order, as
well as any companion order covering the same merchandise from the same
country of origin.\11\
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\9\ See Regulations to Improve Administration and Enforcement of
Antidumping and Countervailing Duty Laws, 86 FR 52300 (September 20,
2021) (Final Rule).
\10\ See Scope Ruling Application; Annual Inquiry Service List;
and Informational Sessions, 86 FR 53205 (September 27, 2021)
(Procedural Guidance).
\11\ Id.
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In accordance with the Procedural Guidance, for orders published in
the Federal Register after November 4, 2021, Commerce will create an
annual inquiry service list segment in Commerce's online e-filing and
document management system, Antidumping and Countervailing Duty
Electronic Service System (ACCESS), available at <a href="https://access.trade.gov/">https://access.trade.gov/</a>, within five business days of publication of the
notice of the order. Each annual inquiry service list will be saved in
ACCESS, under each case number, and under a specific segment type
called ``AISL-Annual Inquiry Service List.'' \12\
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\12\ This segment will be combined with the ACCESS Segment
Specific Information (SSI) field, which will display the month in
which the notice of the order or suspended investigation was
published in the Federal Register, also known as the anniversary
month. For example, for an order under case number A-000-000 that
was published in the Federal Register in January, the relevant
segment and SSI combination will appear in ACCESS as ``AISL-January
Anniversary.'' Note that there will be only one annual inquiry
service list segment per case number, and the anniversary month will
be pre-populated in ACCESS.
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Interested parties who wish to be added to the annual inquiry
service list for an order must submit an entry of appearance to the
annual inquiry service list segment for the order in ACCESS within 30
days after the date of publication of the order. For ease of
administration, Commerce requests that law firms with more than one
attorney representing interested parties in an order designate a lead
attorney to be included on the annual inquiry service list. Commerce
will finalize the annual inquiry service list within five business days
thereafter. As mentioned in the Procedural Guidance, the new annual
inquiry service list will be in place until the following year, when
the Opportunity Notice for the anniversary month of the order is
published.
Commerce may update an annual inquiry service list at any time as
needed based on interested parties' amendments to their entries of
appearance to remove or otherwise modify their list of members and
representatives, or to update contact information. Any changes or
announcements pertaining to these procedures will be posted to the
ACCESS website at <a href="https://access.trade.gov">https://access.trade.gov</a>.
Special Instructions for Petitioners and Foreign Governments
In the Final Rule, Commerce stated that, ``after an initial request
and placement on the annual inquiry service list, both petitioners and
foreign governments will automatically be placed on the annual inquiry
service list in the years that follow.'' \13\ Accordingly, as stated
above, the petitioner and the Government of China should submit their
initial entry of appearance after publication of this notice in order
to appear in the first annual inquiry service list for this order.
Pursuant to 19 CFR 351.225(n)(3), the petitioner and the Government of
China will not need to resubmit their entries of appearance each year
to continue to be included on the annual inquiry service list. However,
the petitioner and the Government of China are responsible for making
amendments to their entries of appearance during the annual update to
the annual inquiry service list in accordance with the procedures
described above.
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\13\ See Final Rule, 86 FR at 52335.
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Notification to Interested Parties
This notice constitutes the CVD order with respect to freight rail
couplers from China pursuant to section 706(a) of the Act. Interested
parties can find a list of duty orders currently in effect at <a href="https://enforcement.trade.gov/stats/iastats1.html">https://enforcement.trade.gov/stats/iastats1.html</a>.
This CVD order is published in accordance with section 706(a) of
the Act and 19 CFR 351.211(b).
Dated: July 7, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Order
The merchandise covered by the order is 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
order 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 order 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 the order 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 to the order 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
[[Page 45138]]
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 order is dispositive.
[FR Doc. 2023-14891 Filed 7-13-23; 8:45 am]
BILLING CODE 3510-DS-P
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