Certain Metal Lockers and Parts Thereof From the People's Republic of China: Notice of Court Decision Not in Harmony With the Final Determination of Antidumping Duty Investigation; Notice of Amended Final Determination
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Abstract
On September 28, 2023, the U.S. Court of International Trade (CIT) issued its final judgment in List Industries, Inc. v. United States, Court No. 21-00521, Slip Op. 23-143 (CIT September 28, 2023), sustaining the U.S. Department of Commerce's (Commerce) first final results of redetermination pertaining to the antidumping duty (AD) investigation of certain metal lockers and parts thereof from the People's Republic of China (China) covering the period of investigation January 1, 2020, through June 30, 2020. Commerce is notifying the public that the CIT's final judgment is not in harmony with Commerce's final determination in that investigation, and that Commerce is amending the final determination with respect to the weighted-average dumping margins assigned to the mandatory respondent, Zhejiang Xingyi Metal Products Co., Ltd./Xingyi Metalworking Technology (Zhejiang) Co., Ltd. (collectively, Zhejiang Xingyi/Xingyi Metalworking) and certain non-selected separate rate respondents.
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<title>Federal Register, Volume 88 Issue 196 (Thursday, October 12, 2023)</title>
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[Federal Register Volume 88, Number 196 (Thursday, October 12, 2023)]
[Notices]
[Pages 70644-70646]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-22453]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-133]
Certain Metal Lockers and Parts Thereof From the People's
Republic of China: Notice of Court Decision Not in Harmony With the
Final Determination of Antidumping Duty Investigation; Notice of
Amended Final Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: On September 28, 2023, the U.S. Court of International Trade
(CIT) issued its final judgment in List Industries, Inc. v. United
States, Court No. 21-00521, Slip Op. 23-143 (CIT September 28, 2023),
sustaining the U.S. Department of Commerce's (Commerce) first final
results of redetermination pertaining to the antidumping duty (AD)
investigation of certain metal lockers and parts thereof from the
People's Republic of China (China) covering the period of investigation
January 1, 2020, through June 30, 2020. Commerce is notifying the
public that the CIT's final judgment is not in harmony with Commerce's
final determination in that investigation, and that Commerce is
amending the final determination with respect to the weighted-average
dumping margins assigned to the mandatory respondent, Zhejiang Xingyi
Metal Products Co., Ltd./Xingyi Metalworking Technology (Zhejiang) Co.,
Ltd. (collectively, Zhejiang Xingyi/Xingyi Metalworking) and certain
non-selected separate rate respondents.
DATES: Applicable October 8, 2023.
FOR FURTHER INFORMATION CONTACT: Laurel LaCivita, 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) 482-4243.
SUPPLEMENTARY INFORMATION:
Background
On July 7, 2021, Commerce published its Final Determination in the
AD investigation of certain metal lockers and parts thereof from
China.\1\ Commerce calculated an estimated weighted-average dumping
margin and cash deposit rate (adjusted for subsidy offsets) of 0.00
percent for Hangzhou Xline Machinery & Equipment Co., Ltd. (Hangzhou
Xline).\2\ Commerce determined a weighted-average dumping margin of
21.25 percent and a cash deposit rate (adjusted for subsidy offsets) of
10.71 percent for Zhejiang Xingyi/Xingyi Metalworking, which it applied
to all the separate companies identified below.\3\ Commerce applied the
highest calculated petition margin of 322.25 percent reported in the
Initiation Notice, as adverse facts available (AFA), as the AD margin
applicable to the China-wide entity.\4\ Commerce
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subsequently published the AD order with respect to certain metal
lockers and parts thereof from China.\5\
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\1\ See Certain Metal Lockers and Parts Thereof from the
People's Republic of China: Final Affirmative Determination of Sales
at Less Than Fair Value, 86 FR 35737 (July 7, 2021) (Final
Determination).
\2\ Id., 86 FR at 35737-38.
\3\ Id.
\4\ Id.; see also Certain Metal Lockers and Parts Thereof from
the People's Republic of China: Initiation of Less-Than-Fair-Value
Investigation, 85 FR 47343, 47346 (August 5, 2020) (Initiation
Notice).
\5\ See Certain Metal Lockers and Parts Thereof from the
People's Republic of China: Antidumping and Countervailing Duty
Orders, 86 FR 46826 (August 20, 2021).
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List Industries, Inc. (the petitioner) appealed Commerce's Final
Determination. On May 20, 2023, the CIT remanded the Final
Determination to Commerce either to reconsider or further explain: (1)
the disparate treatment of shipping in the calculation of Ayes
Celikhasir VE CT's (Ayes) financial ratios, where shipping expenses
were excluded from the selling, general, and administrative (SG&A)
expense ratio, but shipping revenues were included as an offset to
SG&A, in view of Commerce's stated practice of seeking ``consistency in
the treatment of both the revenue and expense side of line items on
Ayes' financial statements''; (2) the inclusion of incentive income as
an offset to SG&A for the Final Determination (but not the Preliminary
Determination <SUP>6</SUP>) without identifying the corresponding
expense category or explaining the reason for the change; (3) the
inclusion of rental income as an offset to SG&A in the Final
Determination (but not the Preliminary Determination) without
explaining the reason for the change; and (4) the treatment of interest
income in the calculation of the financial ratios, with a precise
description of its calculations, including a demonstration that any
interest income excluded from the SG&A ratio is also excluded from
profit.\7\
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\6\ See Certain Metal Lockers and Parts Thereof from the
People's Republic of China: Preliminary Affirmative Determination of
Sales at Less Than Fair Value, Postponement of Final Determination
and Extension of Provisional Measures, 86 FR 9051 (February 11,
2021) (Preliminary Determination), and accompanying Preliminary
Decision Memorandum.
\7\ See List Industries, Inc. v. United States, Court No. 21-
00521, Slip Op. 23-83 (CIT May 30, 2023) (Remand Order).
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In its final results of redetermination, issued in August 2023,
Commerce provided further explanation for its treatment of shipping
revenue, incentive income, interest income, and rental income in the
determination of the SG&A expense ratio using Ayes' audited financial
statements.\8\ In addition, we excluded shipping revenue from the
determination of the SG&A ratio, and reduced profit by interest
income.\9\ Consequently, we recalculated the weighted-average dumping
margins for both mandatory respondents in the investigation, which
resulted in a change from 21.25 percent to 21.38 percent for Zhejiang
Xingyi/Xingyi Metalworking, and no change to the 0.00 percent margin
calculated for Hangzhou Xline.\10\ Moreover, as Zhejiang Xingyi/Xingyi
Metalworking is the only individually-examined respondent with an
above-de minimis margin in the investigation, and the weighted-average
dumping margin calculated for Zhejiang Xingyi/Xingyi Metalworking is,
thus, the sole basis for the non-selected separate rate margin, we
revised the exporter/producer combination rates for the respondents
that are eligible for a separate rate in this investigation to reflect
the revision to Zhejiang Xingyi/Xingyi Metalworking's weighted-average
dumping margin.\11\
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\8\ See Final Results of Redetermination Pursuant to Court
Remand, List Industries, Inc. v. United States, Court No. 21-00521,
Slip Op. 23-83 (CIT May 30, 2023), dated August 23, 2023, available
at <a href="https://access.trade.gov/resources/remands/23-83.pdf">https://access.trade.gov/resources/remands/23-83.pdf</a>.
\9\ Id.
\10\ Id.
\11\ Id.
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On September 28, 2023, the CIT sustained Commerce's final results
of redetermination.\12\
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\12\ See List Industries, Inc. v. United States, Court No. 21-
00521, Slip Op. 23-143 (CIT September 28, 2023).
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Timken Notice
In its decision in Timken,\13\ as clarified by Diamond
Sawblades,\14\ the U.S. Court of Appeals for the Federal Circuit held
that, pursuant to section 516A(c) and (e) of the Tariff Act of 1930, as
amended (the Act), Commerce must publish a notice of court decision
that is not ``in harmony'' with a Commerce determination and must
suspend liquidation of entries pending a ``conclusive'' court decision.
The CIT's September 28, 2023, judgment constitutes a final decision of
the CIT that is not in harmony with Commerce's Final Determination.
Thus, this notice is published in fulfillment of the publication
requirements of Timken.
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\13\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir.
1990) (Timken).
\14\ See Diamond Sawblades Manufacturers Coalition v. United
States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
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Amended Final Determination
Because there is now a final court judgment, Commerce is amending
its Final Determination with respect to the companies below, as
follows:
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Estimated Cash deposit rate
weighted- average (adjusted for
Exporter Producer dumping margin subsidy offsets)
(percent) (percent)
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Zhejiang Xingyi Metal Products Co., Ltd./ Zhejiang Xingyi Metal 21.38 10.84
Xingyi Metalworking Technology (Zhejiang) Products Co., Ltd./Xingyi
Co., Ltd. Metalworking Technology
(Zhejiang) Co., Ltd.
Geelong Sales (Macao Commercial Offshore) Zhongshan Geelong 21.38 10.84
Limited (a.k.a. Geelong Sales (MCO) Manufacturing Co. Ltd.
Limited, Geelong Sales (Macao Commercial)
Limited, and Geelong Sales (MC) Limited).
Hangzhou Evernew Machinery & Equipment Zhejiang Yinghong Metalworks 21.38 10.84
Company Limited. Co., Ltd.
Hangzhou Zhuoxu Trading Co., Ltd........... Shanghai ASI Building 21.38 10.84
Materials Co., Ltd.
Hangzhou Zhuoxu Trading Co., Ltd........... Luoyang Mingxiu Office 21.38 10.84
Furniture Co., Ltd.
Hangzhou Zhuoxu Trading Co., Ltd........... Luoyang Wandefu Import and 21.38 10.84
Export Trading Co. Ltd.
Hangzhou Zhuoxu Trading Co., Ltd........... Zhejiang Xingyi Metal 21.38 10.84
Products Co., Ltd.
Jiaxing Haihong Mechanical and Electrical Zhejiang Steelrix Office 21.38 10.84
Technology Co. Ltd. Furniture Co., Ltd.
Kunshan Dongchu Precision Machinery Co., Kunshan Dongchu Precision 21.38 10.84
Ltd. Machinery Co., Ltd.
Luoyang Hynow Import and Export Co., Ltd... Luoyang Jiudu Golden Cabinet 21.38 10.84
Co., Ltd.
Luoyang Shidiu Import and Export Co., Ltd.. Luoyang Yuabo Office 21.38 10.84
Machinery Co., Ltd.
Luoyang Steelart Office Furniture Co., Ltd. Luoyang Yongwei Office 21.38 10.84
Furniture Co., Ltd.
Luoyang Steelart Office Furniture Co., Ltd. Luoyang Zhuofan Steel Product 21.38 10.84
Factory.
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Luoyang Steelart Office Furniture Co., Ltd. Luoyang Flyer Office 21.38 10.84
Furniture Co., Ltd.
Pinghu Chenda Storage Office Co., Ltd...... Pinghu Chenda Storage Office 21.38 10.84
Co., Ltd.
Tianjin Jia Mei Metal Furniture Ltd........ Tianjin Jia Mei Metal 21.38 10.84
Furniture Ltd.
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Cash Deposit Requirements
Commerce will issue revised cash deposit instructions to U.S.
Customs and Border Protection.
Notification to Interested Parties
This notice is issued and published in accordance with sections
516A(c) and (e) and 777(i)(1) of the Act.
Dated: October 4, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-22453 Filed 10-11-23; 8:45 am]
BILLING CODE 3510-DS-P
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