Notice2023-15392
Countervailing Duty Investigation of Tin Mill Products From the People's Republic of China: Preliminary Determination of Critical Circumstances, in Part
Primary source
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Published
July 20, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that critical circumstances exist, in part, with respect to imports of tin mill products from one exporter/producer of tin mill products in the countervailing duty (CVD) investigation of tin mill products from the People's Republic of China (China).
Full Text
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<title>Federal Register, Volume 88 Issue 138 (Thursday, July 20, 2023)</title>
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[Federal Register Volume 88, Number 138 (Thursday, July 20, 2023)]
[Notices]
[Pages 46738-46740]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-15392]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-151]
Countervailing Duty Investigation of Tin Mill Products From the
People's Republic of China: Preliminary Determination of Critical
Circumstances, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that critical circumstances exist, in part, with respect to
imports of tin mill products from one exporter/producer of tin mill
products in the countervailing duty (CVD) investigation of tin mill
products from the People's Republic of China (China).
DATES: Applicable July 20, 2023.
FOR FURTHER INFORMATION CONTACT: Genevieve Coen at (202) 482-3251 or
Melissa Porpotage at (202) 482-1413; AD/CVD Operations, Office II,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230.
SUPPLEMENTARY INFORMATION:
Background
In response to a petition filed on January 18, 2023, Commerce
initiated a CVD investigation concerning tin mill products from
China.\1\ On June 16, 2023, Cleveland-Cliffs Inc. and the United Steel,
Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial
and Service Workers International Union (collectively, the petitioners)
filed a timely allegation, pursuant to section 703(e)(1) of the Tariff
Act of 1930, as amended, (the Act) and 19 CFR 351.206, that critical
circumstances exist with respect to tin mill products from China.\2\
Commerce published its preliminary CVD determination on June 26,
2023.\3\ In the Preliminary Determination, we examined two mandatory
respondents and assigned the all-others rate based upon the rate
assigned to the single participating mandatory respondent, Shougang
Jingtang United Iron & Steel Co., Ltd. (Jingtang Iron). We applied
adverse facts available (AFA) to the second mandatory respondent,
Baoshan Iron & Steel Co., Ltd. (Baoshan Iron).\4\
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\1\ See Tin Mill Products from the People's Republic of China:
Initiation of Countervailing Duty Investigation, 88 FR 9476
(February 14, 2023) (Initiation Notice).
\2\ See Petitioners' Letter, ``Petitioners' Allegation of
Critical Circumstances,'' dated June 16, 2023 (Critical
Circumstances Allegation).
\3\ See Tin Mill Products from the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination with Final Antidumping Duty
Determination, 88 FR 41373 (June 26, 2023) (Preliminary
Determination) and accompanying Preliminary Decision Memorandum
(PDM).
\4\ See Preliminary Determination PDM at 9-10.
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In accordance with section 703(e)(1) of the Act and 19 CFR
351.206(c)(1) and (2)(ii), because the petitioners submitted the
critical circumstances allegation more than 30 days before the
scheduled date of the final determination, Commerce will make a
preliminary finding as to whether there is a reasonable basis to
believe or suspect that critical circumstances exist and will issue a
preliminary critical circumstances determination within 30 days after
the allegation is filed.
Critical Circumstances Allegation
The petitioners allege that there was a massive increase of imports
of tin mill products from China and provided monthly import data
comparing a base period of November 2022 through January 2023 to a
comparison period of February through April 2023.\5\ This comparison
shows an increase of 23.6 percent in imports from China, which is
``massive'' under 19 CFR 351.206(h)(2). The petitioners also allege
that there is a reasonable basis to believe that there are subsidies in
this investigation which are inconsistent with the World Trade
Organization Agreement on Subsidies and Countervailing Measures (SCM
Agreement).\6\
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\5\ See Critical Circumstances Allegation at 4-6.
\6\ See section 771(8)(A) of the Act.
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Critical Circumstances Analysis
Section 703(e)(1) of the Act provides that Commerce will determine
that critical circumstances exist in CVD investigations if there is a
reasonable basis to believe or suspect that: (A) the alleged
countervailable subsidy is inconsistent with the SCM Agreement; and (B)
there have been massive imports of the subject merchandise over a
relatively short period.\7\ Pursuant to 19 CFR 351.206(h)(2), imports
must increase by at least 15 percent during the ``relatively short
period'' to be considered ``massive,'' and 19 CFR 351.206(i) defines a
``relatively short period'' as normally being the period beginning on
the date the proceeding
[[Page 46739]]
begins (i.e., the date the petition is filed) and ending at least three
months later.\8\ The regulations also provide, however, that if
Commerce finds that importers, or exporters or producers, had reason to
believe, at some time prior to the beginning of the proceeding, that a
proceeding was likely, Commerce may consider a period of not less than
three months from that earlier time.\9\
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\7\ Commerce limits its critical circumstances findings to those
subsidies contingent upon export performance or use of domestic over
imported goods (i.e., those prohibited under Article 3 of the SCM
Agreement). See, e.g., Final Affirmative Countervailing Duty
Determination and Final Negative Critical Circumstances
Determination: Carbon and Certain Alloy Steel Wire from Germany, 67
FR 55808, 55809-10 (August 30, 2002).
\8\ See 19 CFR 351.102 and 19 CFR 351.206.
\9\ See 19 CFR 351.206(i).
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Alleged Countervailable Subsidies Are Inconsistent With the SCM
Agreement
To determine whether an alleged countervailable subsidy is
inconsistent with the SCM Agreement, in accordance with section
703(e)(1)(A) of the Act, Commerce considered the evidence currently on
the record of this investigation. As determined in the Preliminary
Determination, we found the Export Buyer's Credit Program to be export-
contingent, and we applied AFA to find that the non-cooperating
mandatory respondent Baoshan Iron used the following programs which the
record indicates are export-contingent, rendering them inconsistent
with the SCM Agreement: Export Seller's Credit; Export Buyer's Credit;
Foreign Trade Development Fund Grants; Export Assistance Grants; and
Subsidies for the Development of Famous Brands and China World Top
Brands.\10\
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\10\ See Preliminary Determination PDM at 19 and Appendix I; see
also Petitioners' Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Tin Mill
Products from Canada, China, Germany, Netherlands, South Korea,
Taiwan, Turkey, and the United Kingdom,'' dated January 18, 2023, at
Volume X.
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Therefore, Commerce preliminarily determines, for purposes of this
critical circumstances determination, that there are subsidies in this
investigation that are inconsistent with the SCM Agreement.
Massive Imports
In determining whether there have been ``massive imports'' over a
``relatively short period,'' pursuant to section 703(e)(1)(B) of the
Act, Commerce normally compares the import volumes of the subject
merchandise for at least three months immediately preceding the filing
of the petition (i.e., the ``base period'') to a comparable period of
at least three months following the filing of the petition (i.e., the
``comparison period''). In this case, Commerce compared the import
volumes of subject merchandise, as provided by the cooperating
mandatory respondent, Jingtang Iron,\11\ for the four months
immediately preceding and four months following the filing of the
petition, ending with the month prior to the Preliminary Determination.
Imports normally will be considered massive when imports during the
comparison period have increased by 15 percent or more compared to
imports during the base period.\12\
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\11\ See Jingtang Iron's Letter, ``Shipment Data for Critical
Circumstances,'' dated July 7, 2023.
\12\ See 19 CFR 351.206(h)(2).
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Because the petition was filed on January 18, 2023, to determine
whether there was a massive surge in imports for the cooperating
mandatory respondent, Commerce compared the total volume of shipments
during the period October 2022 through January 2023 with the volume of
shipments during the following four-month period of February 2023
through May 2023. Based on this analysis, we preliminarily determine
that there was no massive surge in imports for the cooperating
mandatory respondent, Jingtang Iron.
For ``all others,'' we applied our normal practice and analyzed
monthly shipment data for the same time period, using import data from
Global Trade Atlas (GTA),\13\ adjusted to remove the cooperating
mandatory respondent's shipment data. Although the quantity of
shipments reported by Jingtang Iron for one month each in the base and
comparison periods was greater than the quantity of imports recorded in
the GTA statistics for the U.S. Harmonized Tariff Schedule categories
included in the petition for those months, we considered the data
generally probative and analyzed the overall shipment data by comparing
the base and comparison periods, respectively. Based on this analysis,
we find that there were no massive imports for ``all other'' producers
from China.
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\13\ Commerce gathered GTA data under the following harmonized
tariff schedule numbers: 7210.11.0000, 7210.12.0000, 7210.50.0020,
7210.50.0090, 7212.10.0000, 7212.50.0000, 7225.99.0090,
7226.99.0180.
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As explained in the Preliminary Determination, we preliminarily
applied total AFA to Baoshan Iron because it failed to cooperate in
this proceeding.\14\ For Baoshan Iron, we preliminarily determine, in
accordance with section 776(b) of the Act, that there was a massive
surge in imports between the base and comparison periods.
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\14\ See Preliminary Determination PDM at 9-16.
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Conclusion
Based on the criteria and findings discussed above, we
preliminarily determine that critical circumstances exist with respect
to imports of tin mill products from China produced or exported by
Baoshan Iron. We preliminarily determine that critical circumstances do
not exist with respect to imports of tin mill products from China with
respect to Jingtang Iron or all other producers.
Final Critical Circumstances Determinations
We will make a final critical circumstances determination
concerning critical circumstances in the final CVD determination, which
is currently scheduled for October 30, 2023.
Public Comment
A schedule for case briefs or other written comments will be
established at a later date. Rebuttal briefs, limited to issues raised
in case briefs, may be submitted no later than seven days after the
deadline date for case briefs.\15\ 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.\16\
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\15\ See 19 CFR 351.309(d)(1).
\16\ See 19 CFR 351.309(c)(2) and (d)(2).
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Electronically filed documents must be received successfully in
their entirety by 5:00 p.m. Eastern Time on the due dates
established.\17\
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\17\ See 19 CFR 351.303(b)(1).
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Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, for Baoshan
Iron, we intend to direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of any unliquidated entries of subject merchandise
from China entered, or withdrawn from warehouse for consumption, on or
after March 28, 2023, which is 90 days prior to the date of publication
of the Preliminary Determination in the Federal Register. For such
entries, CBP shall require a cash deposit equal to the estimated
preliminary subsidy rates established in the Preliminary Determination.
This suspension of liquidation will remain in effect until further
notice.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, we will notify the
ITC of this preliminary determination of critical circumstances.
This determination is issued and published pursuant to section
703(f) and 777(i) of the Act and 19 CFR 351.206.
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Dated: July 14, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-15392 Filed 7-19-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on July 20, 2023.
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