Notice2024-28239
Certain Brake Drums From the Republic of Türkiye: 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 Republic of T[uuml]rkiye (T[uuml]rkiye). 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 95740-95743]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28239]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-489-854]
Certain Brake Drums From the Republic of T[uuml]rkiye:
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
Republic of T[uuml]rkiye (T[uuml]rkiye). The period of investigation is
January 1, 2023, through December 31, 2023. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable December 3, 2024.
FOR FURTHER INFORMATION CONTACT: Charles Doss or Samuel Brummitt, 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) 482-4474 or (202)
482-7851, 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 95741]]
days.\2\ On September 6, 2024, Commerce postponed the preliminary
determination of this investigation 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 the 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
Determination of the Countervailing Duty Investigation of Certain
Brake Drums from the Republic of T[uuml]rkiye,'' 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
T[uuml]rkiye. 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 determinations 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 58106.
\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
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
preliminarily 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 its findings, it relied, in part, on
facts available and, because it finds that one or more entities did not
act to the best of their ability 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
As noted in the Preliminary Decision Memorandum, 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 T[uuml]rkiye 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 Determinations,'' 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. Section
705(c)(5)(A)(i) of the Act states that for companies not individually
investigated, Commerce will determine an ``all-others'' rate equal to
the weighted average countervailable subsidy rates established for
exporters and producers individually investigated, excluding any zero
and de minimis countervailable subsidy rates, and any rates determined
entirely under section 776 of the Act. If the rates established for all
exporters and producers individually investigated are zero, de minimis,
or determined entirely under facts available, Commerce may use any
reasonable method to establish an all-others rate.\12\
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\12\ See sections 705(c)(5)(A)(i) and (ii) of the Act.
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In this investigation, Commerce preliminarily calculated an
individual countervailable subsidy rate for EKU Fren ve Dok. San. A.S.
(EKU) that is de minimis. Further, Commerce has preliminarily
determined Akkus Dokum San.Ve Tic.Ltd.Sti's, Buyuk Eker Bijon Sanayi Ve
Ticaret's, and Genk Otomotiv San.Dis Tic.Ltd.Sti.'s rates entirely
under facts available with an adverse inference pursuant to section 776
of the Act. Therefore, in accordance with section 705(c)(5)(A)(ii) of
the Act, we are preliminarily applying a simple average of the subsidy
rates calculated for Akkus Dokum San.Ve Tic.Ltd.Sti, Buyuk Eker Bijon
Sanayi Ve Ticaret, Genk Otomotiv San.Dis Tic.Ltd.Sti., and EKU as the
all-others rate.\13\
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\13\ See, e.g., Non-Oriented Electrical Steel from Taiwan: Final
Affirmative Countervailing Duty Determination, 79 FR 71602 (October
14, 2014), and accompanying Issues and Decision Memorandum at
Comment 11.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Company Subsidy rate (percent ad valorem)
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EKU Fren ve Dok. San. A.S............ 0.89 (de minimis).
Akkus Dokum San.Ve Tic.Ltd.Sti....... 131.39*.
Buyuk Eker Bijon Sanayi Ve Ticaret... 131.39*.
[[Page 95742]]
Genk Otomotiv San.Dis Tic.Ltd.Sti.... 131.39*.
All Others........................... 98.77.
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* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date 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
With the exception of entries from EKU, in accordance with sections
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 Appendix I entered, or withdrawn
from warehouse, for consumption on or after the date of the 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. Because we preliminarily determine that
the CVD rate in this investigation for EKU is de minimis, we will not
direct CBP to suspend liquidation of entries of the subject merchandise
from T[uuml]rikye produced and exported by EKU.
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.\14\ 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.\15\
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\14\ 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).
\15\ 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 brief 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.\16\
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).\17\
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\16\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\17\ See APO and Service Final Rule.
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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 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, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date. All
submissions, including case and rebuttal briefs, as well as hearing
requests, should be filed using ACCESS. An electronically-filed
document must be received successfully in its entirety by ACCESS by
5:00 p.m. Eastern Time on the established deadline.
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 determination
or 45 days after the final determination whether imports of brake drums
from T[uuml]rkiye are materially injuring, or threaten material injury
to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) 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 merchandise covered by this investigation is certain brake
drums made of
[[Page 95743]]
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 this 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 this
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. Diversification of T[uuml]rkiye's Economy
IV. Injury Test
V. Subsidies Valuation
VI. Benchmarks Interest Rates and Discount Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Calculation of the All-Others Rate
X. Recommendation
[FR Doc. 2024-28239 Filed 12-2-24; 8:45 am]
BILLING CODE 3510-DS-P
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