Notice2023-20483
Certain Freight Rail Couplers and Parts Thereof From Mexico: Final Affirmative Determination of Sales at Less Than Fair Value and Final Negative Determination of Critical Circumstances
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
September 21, 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 Mexico are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is July 1, 2021, through June 30, 2022.
Full Text
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<title>Federal Register, Volume 88 Issue 182 (Thursday, September 21, 2023)</title>
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[Federal Register Volume 88, Number 182 (Thursday, September 21, 2023)]
[Notices]
[Pages 65153-65155]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-20483]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-201-857]
Certain Freight Rail Couplers and Parts Thereof From Mexico:
Final Affirmative Determination of Sales at Less Than Fair Value and
Final Negative 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 Mexico are being, or are likely to be, sold in the United States
at less than fair value (LTFV). The period of investigation (POI) is
July 1, 2021, through June 30, 2022.
DATES: Applicable September 21, 2023.
FOR FURTHER INFORMATION CONTACT: Jonathan Hall-Eastman, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-1468.
[[Page 65154]]
SUPPLEMENTARY INFORMATION:
Background
On May 3, 2023, Commerce published in the Federal Register its
Preliminary Determination of the LTFV investigation of freight rail
couplers from Mexico, in which it also postponed the final
determination until September 15, 2023.\1\ Commerce invited interested
parties to comment on the Preliminary Determination.\2\
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\1\ See Certain Freight Rail Couplers and Parts Thereof from
Mexico: Preliminary Affirmative Determination of Sales at Less Than
Fair Value Preliminary Negative Determination of Critical
Circumstances, Postponement of Final Determination, and Extension of
Provisional Measures, 88 FR 27864 (May 3, 2023) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum
(PDM).
\2\ Id.
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For a complete description of the events that followed the
Preliminary Determination, see the Issues and Decision Memorandum.\3\
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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\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less Than Fair Value
Investigation of Certain Freight Rail couplers from Mexico,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are freight rail
couplers from Mexico. For a full 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 the
People's Republic of 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-specific case and rebuttal briefs.\4\ We
received comments from interested parties on the Preliminary Scope
Memorandum, which we address in the Final Scope Memorandum.\5\ We did
not make any changes to the scope of the investigation from the scope
published in the Preliminary Determination, as noted in appendix I.
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\4\ See Memorandum, ``Preliminary Scope Decision Memorandum,''
dated March 28, 2023.
\5\ See Memorandum, ``Final Scope Decision Memorandum,'' dated
May 15, 2023.
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Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), in June and July 2023, we conducted verification of the
sales and cost information submitted by ASF-K de Mexico S. de R.L. de
C.V. (ASF-K) and Amsted Rail Company, Inc. (Amsted Rail) for use in our
final determination. We used standard verification procedures,
including an examination of relevant sales and accounting records, and
original source documents provided by ASF-K and Amsted Rail.\6\
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\6\ See Memoranda, ``Verification of the Sales Responses of ASF-
K de Mexico S. de R.L. de C.V. in the Antidumping Duty Investigation
of Certain Freight Rail Couplers and Parts Thereof from Mexico,''
dated July 12, 2023; and ``Verification of the Cost Response of
Amsted Rail Company, Inc. & ASF-K de Mexico S. de R.L. de C.V. in
the Antidumping Duty Investigation of Certain Freight Rail Couplers
from Mexico,'' dated August 5, 2023.
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are discussed in the Issues and Decision Memorandum.
A list of the issues raised in the Issues and Decision Memorandum is
attached to this notice as appendix II.
Changes Since the Preliminary Determination
We have made certain changes to the margin calculations for ASF-K
since the Preliminary Determination. See the Issues and Decision
Memorandum for a discussion of these changes.
All-Others Rate
Section 735(c)(5)(A) of the Act provides that the estimated
weighted-average dumping margin for all other producers and exporters
not individually investigated shall be equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated excluding rates that
are zero, de minimis, or determined entirely under section 776 of the
Act.
In this case, Commerce calculated an individual estimated weighted-
average dumping margin for ASF-K that is not zero, de minimis, or
determined entirely under section 776 of the Act. Consequently, the
rate calculated for ASF-K is also assigned as the rate for all other
producers and exporters.
Final Negative Determination of Critical Circumstances
In accordance with section 735(a)(3) of the Act and 19 CFR
351.206(h), Commerce finds that critical circumstances do not exist for
ASF-K. For a full description of the methodology and results of
Commerce's critical circumstances analysis, see the ``Final Negative
Determination of Critical Circumstances'' section of the Issues and
Decision Memorandum.
Final Determination
Commerce determines that the following estimated weighted-average
dumping margins exist for the POI:
------------------------------------------------------------------------
Estimated
weighted-
Producer/exporter average
dumping margin
(percent)
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ASF-K de Mexico S. de R.L. de C.V....................... 48.10
All Others.............................................. 48.10
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Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this final determination within five
days of the date of any 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).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, Commerce will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all entries of freight rail couplers from
Mexico, as described in appendix I to this notice, which were entered,
or withdrawn from warehouse for consumption on or after May 3, 2023,
the date of publication of Preliminary Determination of this
investigation in the Federal Register.
Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR
351.210(d), upon publication of this notice, Commerce will instruct CBP
to require a cash deposit equal to the estimated weighted-average
dumping margin or the estimated all-others rate, as follows: (1) the
cash deposit rate for the respondent listed above will be equal to the
company-specific estimated weighted-average dumping margin determined
in this final determination; (2) if the exporter is not a respondent
identified above but the producer is, then the cash deposit rate will
be equal to the company-specific estimated weighted-
[[Page 65155]]
average dumping margin established for that producer of the subject
merchandise; and (3) the cash deposit rate for all other producers and
exporters will be equal to the all-others estimated weighted-average
dumping margin. These suspension of liquidation instructions will
remain in effect until further notice.
U.S. International Trade Commission Notification
In accordance with section 735(d) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV. Because Commerce's final determination
is affirmative, in accordance with section 735(b)(2) 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 or sales (or the likelihood of
sales) for importation of freight rail couplers from Mexico no later
than 45 days after this final determination. If the ITC determines that
such injury does not exist, this proceeding will be terminated, and all
cash deposits posted will be refunded and suspension of liquidation
will be lifted. If the ITC determines that such injury does exist,
Commerce will issue an antidumping duty order directing CBP to assess,
upon further instruction by Commerce, antidumping duties on all imports
of the subject merchandise 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.
Administrative Protective Order
This notice will serve as a final reminder to the 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 return or destruction of APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).
Dated: September 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 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. Scope of the Investigation
IV. Final Negative Determination of Critical Circumstances
V. Changes Since the Post-Preliminary Determination
VI. Discussion of the Issues
Comment 1: Whether ASF-K Has a Viable Mexican Home Market
Comment 2: Whether ASF-K's IMMEX Sales Are U.S. Sales
Comment 3: Whether Commerce Should Disqualify Counsel to
Petitioner and Dismiss the Petition Due to a Conflict of Interest
Comment 4: Whether Commerce Should Revoke the Initiation of an
MNC Provision Investigation
Comment 5: Whether Commerce Should Disallow ASF-K's Reported
Surcharges
Comment 6: Whether ASF-K's Technical Support Expenses Are
Indirect Selling Expenses
Comment 7: Whether ASF-K's Technical Support Expenses Should Be
Allocated to the U.S. Market
Comment 8: Whether To Incorporate Information From Verifications
Into the Final Calculations
VII. Recommendation
[FR Doc. 2023-20483 Filed 9-20-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on September 21, 2023.
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