Notice2024-28238
Certain Brake Drums From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination and Alignment of Final Determination With Final Antidumping Duty Determination
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
December 3, 2024
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain brake drums (brake drums) from the People's Republic of China (China). The period of investigation is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
Full Text
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<title>Federal Register, Volume 89 Issue 232 (Tuesday, December 3, 2024)</title>
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[Federal Register Volume 89, Number 232 (Tuesday, December 3, 2024)]
[Notices]
[Pages 95744-95747]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28238]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-175]
Certain Brake Drums From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and Alignment
of Final Determination With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of certain brake drums (brake drums) from the
People's Republic of China (China). The period of investigation is
January 1, 2023, through December 31, 2023. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable February 3, 2024.
FOR FURTHER INFORMATION CONTACT: Nathan James or Olivia Woolverton, AD/
CVD Operations, Office V, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-5305 or (202)
482-7452, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this countervailing duty (CVD)
investigation on July 17, 2024.\1\ On July 22, 2024, Commerce tolled
certain deadlines in this administrative proceeding by seven
[[Page 95745]]
days.\2\ On September 6, 2024, Commerce postponed the preliminary
determination until November 25, 2024.\3\
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\1\ See Certain Brake Drums from the People's Republic of China
and the Republic of T[uuml]rkiye: Initiation of Countervailing Duty
Investigations, 89 FR 58106 (July 17, 2024) (Initiation Notice).
\2\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
\3\ See Certain Brake Drums from the People's Republic of China
and the Republic of T[uuml]rkiye: Postponement of Preliminary
Determinations in the Countervailing Duty Investigations, 89 FR
72827 (September 6, 2024).
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For a complete description of events that followed the initiation
of this investigation, see the Preliminary Decision Memorandum.\4\ A
list of topics discussed in the Preliminary Decision Memorandum is
included as Appendix II to this notice. The Preliminary Decision
Memorandum is a public document and is on file 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 Preliminary 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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\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Certain Brake Drums from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are brake drums from
China. For a complete description of the scope of this investigation,
see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\6\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the antidumping
(AD) and CVD investigations in the preliminary determination of the
companion AD investigations. We will incorporate the scope decisions
from the AD investigations into the scope of the final CVD
determination for this investigation after considering any relevant
comments submitted in scope case and rebuttal briefs.\7\
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\6\ See Initiation Notice, 89 FR at 58109.
\7\ The deadline for interested parties to submit scope case and
rebuttal briefs will be established in the preliminary scope
decision memorandum.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found to be
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\8\ For a full description of the methodology underlying our
preliminary determination, see the Preliminary Decision Memorandum.
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\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Commerce notes that, in making these findings, it relied, in part,
on facts available, and, because it finds that certain companies that
failed to timely respond to Commerce's quantity and value (Q&V)
questionnaire, as well as the Government of China, did not act to the
best of their abilities to respond to Commerce's requests for
information, it drew an adverse inference where appropriate in
selecting from among the facts otherwise available.\9\ For further
information, see the ``Use of Facts Otherwise Available and Adverse
Inferences'' section in the Preliminary Decision Memorandum.
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\9\ See sections 776(a) and (b) of the Act.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final CVD determination in this
investigation with the final determination in the concurrent AD
investigation of brake drums from China, based on a request made by the
petitioner.\10\ Consequently, the final CVD determination will be
issued on the same date as the final AD determination, which is
currently scheduled to be issued no later than April 8, 2025, unless
postponed.\11\
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\10\ See Petitioner's Letter, ``Request to Align Final
Antidumping and Countervailing Duty Determination,'' dated November
7, 2024.
\11\ See Certain Brake Drums from the Republic of T[uuml]rkiye
and the People's Republic of China: Postponement of Preliminary
Determinations in the Less-Than-Fair-Value Investigations, 89 FR
91675 (November 20, 2024).
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
rates that are zero, de minimis, or based entirely under section 776 of
the Act.
In this investigation, Commerce preliminarily calculated total net
subsidy rates for CAIEC Trailer Master Co., Ltd. (CAIEC Trailer) and
Shandong ConMet Mechanical, Ltd. (Shandong ConMet) that are not zero,
de minimis, or based entirely on the facts otherwise available. Because
Commerce calculated individual estimated countervailable subsidy rates
for CAIEC Trailer and Shandong ConMet that are not zero, de minimis, or
based entirely on the facts otherwise available, we have preliminarily
calculated the all-others rate using a weighted-average of the
individual estimated subsidy rates calculated for the examined
respondents using each company's publicly-ranged sales values.\12\
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\12\ See Memorandum, ``Calculation of Subsidy Rate for All
Others,'' dated concurrently with this notice.
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Rate for Non-Responsive Companies
Thirteen potential exporters and/or producers of brake drums from
China did not timely respond to Commerce's Q&V questionnaire.\13\ We
find that, by not timely responding to the Q&V questionnaire, these
companies withheld requested information and significantly impeded this
proceeding. Thus, in reaching our preliminary determination, pursuant
to sections 776(a)(2)(A) and (C) of the Act, we are basing the subsidy
rate for the non-responsive companies on facts otherwise available.
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\13\ These companies are: (1) Guangzhou Joyhand Import & Export
Co.; (2) Hebei Iruijin Auto Parts Co., Ltd.; (3) Henan Broad Top
Metal Work, Llc.; (4) Henan Valiant Braking System Co.; (5) HTS
(Tianjin) Supply Chain Co., Ltd.; (6) Panasia CVS (HK), Ltd.; (7)
Raw King Brake Parts Co., Ltd.; (8) Tianjin Textile Group Import and
Export Inc.; (9) Xiamen Tinmy Industrial Co., Ltd.; (10) Xingtai
Xunchiyoute Auto Parts Co.; (11) Yancheng Terbon Auto Parts Co.;
(12) Yantai Hongtian Autoparts Co., Ltd.; and (13) Zhejiang Firsd
Group Co., Ltd.
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We further preliminarily determine that an adverse inference is
warranted, pursuant to section 776(b) of the Act. By failing to submit
responses to Commerce's Q&V questionnaire, the non-responsive companies
did not cooperate to the best of their abilities in this investigation.
Accordingly, we preliminarily find that an adverse inference is
warranted to ensure that the non-responsive companies will not obtain a
more favorable result than had they fully complied with our request for
information. For more information on
[[Page 95746]]
the application of adverse facts available to the non-responsive
companies, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in the Preliminary Determination Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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\14\ Commerce found CAIEC Trailer Master Co., Ltd. and Trailer
Master CVS Inc to be cross-owned entities.
\15\ Commerce found Shandong ConMet Mechanical, Ltd. and Weifang
ConMet Mechanical Products Co., Ltd. to be cross-owned entities.
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Subsidy rate
Company (percent ad
valorem)
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CAIEC Trailer Master Co., Ltd./Trailer Master CVS Inc 41.51
\14\...................................................
Shandong ConMet Mechanical, Ltd./Weifang ConMet 6.76
Mechanical Products Co., Ltd.\15\......................
Guangzhou Joyhand Import & Export Co.................... * 303.07
Hebei Iruijin Auto Parts Co., Ltd....................... * 303.07
Henan Broad Top Metal Work, Llc......................... * 303.07
Henan Valiant Braking System Co......................... * 303.07
HTS (Tianjin) Supply Chain Co., Ltd..................... * 303.07
Panasia CVS (HK), Ltd................................... * 303.07
Raw King Brake Parts Co., Ltd........................... * 303.07
Tianjin Textile Group Import and Export Inc............. * 303.07
Xiamen Tinmy Industrial Co., Ltd........................ * 303.07
Xingtai Xunchiyoute Auto Parts Co....................... * 303.07
Yancheng Terbon Auto Parts Co........................... * 303.07
Yantai Hongtian Autoparts Co., Ltd...................... * 303.07
Zhejiang Firsd Group Co., Ltd........................... * 303.07
All Others.............................................. 16.17
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its 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).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
issues raised in the case briefs or other written comments.
Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation entered, or withdrawn from warehouse,
for consumption on or after the date of publication of this notice in
the Federal Register. Further, pursuant to 19 CFR 351.205(d), Commerce
will instruct CBP to require a cash deposit equal to the rates
indicated above.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
All interested parties will have the opportunity to submit scope
case and rebuttal briefs on the preliminary decision regarding the
scope of the AD and CVD investigations. The deadlines to submit scope
case and rebuttal briefs will be provided in the preliminary scope
decision memorandum. For all scope case and rebuttal briefs, parties
must file identical documents simultaneously on the records of the
ongoing AD and CVD brake drums investigations. No new factual
information or business proprietary information may be included in
either scope case or rebuttal briefs.
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than seven days after the date on which the last verification
report is issued in this investigation. Rebuttal briefs, limited to
issues raised in the case briefs, may be filed not later than five days
after the date for filing case briefs.\16\ Interested parties who
submit case briefs or rebuttal briefs in this proceeding must submit:
(1) a table of contents listing each issue; and (2) a table of
authorities.\17\
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\16\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\17\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their briefs that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\18\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the executive summaries as the basis of the
comment summaries included in the issues and decision memorandum that
will accompany the final determination in this investigation. We
request that interested parties include footnotes for relevant
citations in the executive summary of each issue. Note that Commerce
has amended certain of its requirements pertaining to the service of
documents in 19 CFR 351.303(f).\19\
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\18\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\19\ See APO and Service Final Rule, 88 FR at 67069.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce via ACCESS
within 30 days after the date of publication of this notice. Requests
should contain the party's name, address, and telephone number, the
number of participants and whether any participant is a foreign
national, and a list of the issues to be discussed. Oral presentations
at the hearing will be limited to issues raised in the briefs. If a
request for a hearing is made, parties will be notified of the time and
date for the hearing.\20\ Parties should confirm by telephone the date,
time, and location of the hearing two days before the scheduled date.
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\20\ See 19 CFR 351.310(d).
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U.S. International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the U.S. International Trade Commission (ITC) of its determination. If
the final determination is affirmative, the ITC will determine before
the later of 120 days after the date of this preliminary
[[Page 95747]]
determination or 45 days after the final determination whether imports
of brake drums from China are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 703(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).
Dated: November 25, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The products covered by this investigation are certain brake
drums made of gray cast iron, whether finished or unfinished, with
an actual or nominal inside diameter of 14.75 inches or more but not
over 16.6 inches, weighing more than 50 pounds. Unfinished brake
drums are those which have undergone some turning or machining but
are not ready for installation. Subject brake drums are included
within the scope whether imported individually or with non-subject
merchandise (for example, a hub), whether assembled or unassembled,
or if joined with non-subject merchandise. When a subject drum is
imported together with non-subject merchandise, such as, but not
limited to, a drum-hub assembly, only the subject drum is covered by
the scope.
Subject merchandise also includes finished and unfinished brake
drums that are further processed in a third country or in the United
States, including, but not limited to, assembly or any other
processing that would not otherwise remove the merchandise from the
scope of the investigation if performed in the country of
manufacture of the subject brake drums. The inclusion, attachment,
joining, or assembly of non-subject merchandise with subject drums
either in the country of manufacture of the subject drum or in a
third country does not remove the subject drum from the scope.
Specifically excluded is merchandise covered by the scope of the
antidumping and countervailing duty orders on certain chassis and
subassemblies thereof from the People's Republic of China. See
Certain Chassis and Subassemblies Thereof from the People's Republic
of China: Antidumping Duty Order, 86 FR 36093 (July 8, 2021) and
Certain Chassis and Subassemblies Thereof from the People's Republic
of China: Countervailing Duty Order and Amended Final Affirmative
Countervailing Duty Determination, 86 FR 24844 (May 10, 2021).
The scope also excludes composite brake drums that contain more
than 40 percent steel by weight.
The merchandise covered by this investigation is classifiable
under Harmonized Tariff Schedule of the United States (HTSUS)
subheading 8708.30.5020. The merchandise covered by the
investigation may be classifiable under HTSUS subheading
8708.30.5090 when entered as part of an assembly. Subject
merchandise may also enter under HTSUS subheading 8716.90.5060.
Although the HTSUS subheadings are provided for convenience and
customs purposes, the written description of the merchandise covered
by this investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Analysis of China's Financial System
V. Diversification of China's Economy
VI. Use of Facts Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2024-28238 Filed 12-2-24; 8:45 am]
BILLING CODE 3510-DS-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.