Notice2024-28697
Certain Low Speed Personal Transportation Vehicles From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination, Preliminary Affirmative Determination of Critical Circumstances, in Part, 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 6, 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 low speed personal transportation vehicles (LSPTVs) from the People's Republic of China (China). The period of investigation (POI) is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 235 (Friday, December 6, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 235 (Friday, December 6, 2024)]
[Notices]
[Pages 96942-96945]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28697]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-177]
Certain Low Speed Personal Transportation Vehicles From the
People's Republic of China: Preliminary Affirmative Countervailing Duty
Determination, Preliminary Affirmative Determination of Critical
Circumstances, in Part, 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 low speed personal transportation
vehicles (LSPTVs) from the People's Republic of China (China). The
period of investigation (POI) is January 1, 2023, through December 31,
2023. Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable December 6, 2024.
FOR FURTHER INFORMATION CONTACT: Dan Alexander, AD/CVD Operations,
Office VII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-4313.
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 16, 2024.\1\ On July 25, 2024, Commerce tolled
certain deadlines in this administrative proceeding by seven days.\2\
On September 10, 2024, Commerce postponed the preliminary determination
until November 25, 2024.\3\
---------------------------------------------------------------------------
\1\ See Certain Low Speed Personal Transportation Vehicles from
the People's Republic of China: Initiation of Countervailing Duty
Investigation, 89 FR 73371 (July 16, 2024) (Initiation Notice).
\2\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 25, 2024.
\3\ See Certain Low Speed Personal Transportation Vehicles from
the People's Republic of China: Postponement of Preliminary
Determination in the Countervailing Duty Investigation, 89 FR 73371
(September 10, 2024).
---------------------------------------------------------------------------
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>.
---------------------------------------------------------------------------
\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Certain Low Speed Personal Transportation Vehicles from the
People's Republic of China,'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are LSPTVs 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\ in
the Initiation Notice Commerce 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 less-than-fair-value
(LTFV) and CVD investigations as it appeared in the Initiation Notice.
Commerce preliminary determined to modify the scope of this
investigation to include one additional Harmonized Tariff Schedule of
the United States Subheading (i.e. 8703.10.5060). See the scope in
Appendix I to this notice. Additionally, Commerce is proposing certain
modifications to the language of the scope of these LTFV and CVD
investigations and invite interested parties to submit comments. For
further discussion, see the Preliminary Scope Modification
Memorandum.\7\
---------------------------------------------------------------------------
\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\6\ See Initiation Notice, 89 FR at 49834.
\7\ See Memorandum, ``Less-Than-Fair-Value and Countervailing
Duty Investigations of Certain Low Speed Personal Transportation
Vehicles from the People's Republic of China: Preliminary Scope
Modification Memorandum,'' dated concurrently with this notice
(Preliminary Scope Modification Memorandum).
---------------------------------------------------------------------------
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
[[Page 96943]]
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.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
Commerce notes that, in making these findings, it relied, in part,
on facts available, and, because it finds that certain respondents and
the Government of China 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.
---------------------------------------------------------------------------
\9\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------
Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 703(e)(1) of the Act, we preliminarily
find that critical circumstances exist with respect to imports of
subject merchandise from Guangdong Lvtong New Energy Electric Vehicle
Technology Co., Ltd. (Lvtong), and the companies who did not respond to
our quantity and value (Q&V) questionnaire (i.e., the non-responsive
companies).\10\ We also preliminarily find that critical circumstances
do not exist with respect to imports of subject merchandise from Xiamen
Dalle New Energy Automobile Co., Ltd (Xiamen Dalle) and all other
producers and/or exporters. For a full discussion of our preliminary
critical circumstances determination, see the ``Preliminary Critical
Circumstances'' section of the Preliminary Decision Memorandum.
---------------------------------------------------------------------------
\10\ The companies that failed to respond to Commerce's Q&V
questionnaire are: (1) Shandong Odes Industry Co. Ltd.; and (2)
Hebei Machinery Import and Export Co., Ltd.
---------------------------------------------------------------------------
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 LTFV
investigation of LSPTVs from China, based on a request made by the
petitioner.\11\ Consequently, the final CVD determination will be
issued on the same date as the final LTFV determination, which is
currently scheduled to be issued no later than April 8, 2025, unless
postponed.\12\
---------------------------------------------------------------------------
\11\ See Petitioner's Letter, ``Request to Align Countervailing
Duty Investigation Final Determination with Antidumping Duty
Investigation Final Determination,'' dated November 12, 2024.
\12\ See Low Speed Personal Transportation Vehicles from the
People's Republic of China: Postponement of Preliminary
Determination in the Less-Than-Fair Value Investigation, 89 FR 89591
(November 13, 2024) (LTFV Postponement).
---------------------------------------------------------------------------
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 Xiamen Dalle and Lvtong that are not zero, de
minimis, or based entirely on the facts otherwise available. Because
Commerce calculated individual estimated countervailable subsidy rates
for Xiamen Dalle and Lvtong that are not zero, de minimis, or based
entirely on the facts otherwise available, we have preliminarily
calculated the all-others rate using a simple-average of the individual
subsidy rates calculated for the examined respondents (i.e., 22.04
percent).\13\
---------------------------------------------------------------------------
\13\ See Memorandum, ``Calculation of Subsidy Rate for All
Others,'' dated concurrently with this notice.
---------------------------------------------------------------------------
Rate for Non-Responsive Companies
Two potential exporters and/or producers of LSPTVs from China did
not respond to Commerce's Q&V questionnaire.\14\ We find that, by not
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.
---------------------------------------------------------------------------
\14\ As noted above, these companies are: (1) Shandong Odes
Industry Co. Ltd.; and (2) Hebei Machinery Import and Export Co.,
Ltd.
---------------------------------------------------------------------------
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 ability 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 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:
------------------------------------------------------------------------
Subsidy rate (percent
Company ad valorem)
------------------------------------------------------------------------
Guangdong Lvtong New Energy Electric Vehicle 22.84
Technology Co., Ltd...........................
Hebei Machinery Import and Export Co., LTD..... * 515.37
Shandong Odes Industry Co. Ltd................. * 515.37
Xiamen Dalle New Energy Automobile Co., Ltd.... 21.23
All Others..................................... 22.04
------------------------------------------------------------------------
* Rate based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose to interested parties its calculations
and analysis 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 the Federal Register, accordance with 19 CFR
351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely
[[Page 96944]]
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 Lvtong and the non-responsive companies, 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.
Section 703(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of: (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered; or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of subject
merchandise produced and/or exported by Lvtong and the non-responsive
companies (i.e., Shandong Odes Industry Co. Ltd. and Hebei Machinery
Import and Export Co., Ltd.). In accordance with section 703(e)(2)(A)
of the Act, the suspension of liquidation shall apply to unliquidated
entries of merchandise from the exporters/producers identified in this
paragraph that were entered, or withdrawn from warehouse, for
consumption on or after the date which is 90 days before the
publication of this notice.
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
As discussed above, Commerce is proposing certain modifications to
the language of the scope of these LTFV and CVD investigations and
invites interested parties to submit comments. Commerce intends to
issue our preliminary decision regarding the proposed scope
modifications no later than January 23, 2025, the date of the
preliminary determination in the companion LTFV investigation.\15\ All
interested parties will have the opportunity to submit scope case and
rebuttal briefs, and we will establish a briefing schedule to allow
interested parties to comment on our preliminary scope decision at that
time. For all scope case and rebuttal briefs, parties must file
identical documents simultaneously on the records of the ongoing LTFV
and CVD investigations of LSPTVs from China. No new factual information
or business proprietary information may be included in either scope
case or rebuttal briefs.
---------------------------------------------------------------------------
\15\ See LTFV Postponement.
---------------------------------------------------------------------------
Case briefs or other written comments regarding 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 or rebuttal briefs in this proceeding must
submit: (1) a table of contents listing each issue; and (2) a table of
authorities.\17\
---------------------------------------------------------------------------
\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).
---------------------------------------------------------------------------
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.\18\
Further, we request that interested parties limit their public
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the public 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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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 (1) the party's name, address, and telephone number; (2)
the number of participants and whether any participant is a foreign
national; and (3) 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.
---------------------------------------------------------------------------
\20\ See 19 CFR 351.310(d).
---------------------------------------------------------------------------
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 (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the 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 LSPTVs 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 merchandise covered by this investigation consists of
certain low speed personal transportation vehicles (LSPTV) and
[[Page 96945]]
subassemblies thereof, whether finished or unfinished and whether
assembled or unassembled, with or without tires, wheels, seats,
steering columns and steering wheels, canopies, roofs, or batteries.
LSPTVs meeting this description are generally open-air vehicles with
a minimum of four wheels, a steering wheel, a traditional side-by-
side or in-line row seating arrangement (i.e., non-straddle), foot
operated accelerator and brake pedals, and a gross vehicle weight of
no greater than 5,500 pounds. The main power source for subject
LSPTVs is either an electric motor and battery (including but not
limited to lithium-ion batteries, lithium phosphate batteries, lead
acid batteries, and absorbed glass mat batteries) or a gas-powered
internal combustion engine. Subject LSPTVs may be described as golf
carts, golf cars, low speed vehicles, personal transportation
vehicles, or light utility vehicles.
LSPTVs subject to this investigation typically have a maximum
top nameplate speed of no greater than 25 miles per hour as required
by federal, state, and local laws and regulations. Subject LSPTVs
with a maximum top nameplate speed greater than 20 miles per hour
normally must comply with the U.S. Department of Transportation's
Federal Motor Vehicle Safety Standards for Low-Speed Vehicles set
forth in 49 CFR 571.500. LSPTVs that otherwise meet the physical
description of this scope but are not certified under 49 CFR 571.500
and are not certified under other sections of subpart B of the
Federal Motor Vehicle Safety Standards (49 CFR part 571), are not
excluded from this investigation. LSPTVs that are certified under
both 49 CFR 571.500 and other sections of subpart B of the Federal
Motor Vehicle Safety Standards remain subject to the scope of this
investigation. Subject LSPTVs that have a maximum top nameplate
speed of less than 25 miles per hour may be certified to the SAE
International (SAE) standards SAE J2258 and SAE J2358. LSPTVs that
have a maximum top nameplate speed of less than 20 miles per hour
may also be certified to the Outdoor Power Equipment Institute
(OPEI) standards OPEI Z130.1 and OPEI Z135.
An unfinished and/or unassembled LSPTV subject to this
investigation covers at a minimum a subassembly, also known as a
``rolling chassis,'' which is typically comprised of, but not
limited to, a frame or body with front and/or rear suspension
components (such as arms, springs, axles, spindles, and shafts)
installed and powertrain components (including either an electric
motor or a gas-powered internal combustion engine) installed or
ready for installation.
When imported together with a rolling chassis subject to this
investigation, other LSPTV components, such as batteries, bumpers,
wheel and tire assemblies, cowlings, fenders, grills, kick plates,
steering column and steering wheel assemblies, dash assembly, seat
assemblies, pedal assemblies, brake assemblies, canopy or roof
assemblies, temporary rain enclosures, windshields, mirrors,
headlights, taillights, lighting systems, or storage--whether
assembled or unassembled, whether as part of a kit or not, and
whether or not accompanied by additional components--constitute part
of an unfinished and/or unassembled LSPTV that is subject to this
investigation. The inclusion of other products, components, or
assemblies not described here does not remove the product from the
scope.
Subject LSPTVs and subassemblies are covered by the scope of
this investigation whether or not they are accompanied by other
parts. This investigation covers all LSPTVs and subassemblies
meeting the physical description of the scope, regardless of overall
length, width, or height. Individual components that do not comprise
a subject LSPTV or subassembly that are entered and sold by
themselves are not subject to the investigation, but components
entered with a LSPTV or subassembly, whether finished or unfinished
and whether assembled or unassembled, are subject merchandise.
LSPTVs and subassemblies subject to this investigation include
those that are produced in the subject country whether assembled
with other components in the subject country or in a third country.
Processing or completion of finished and unfinished LSPTVs and
subassemblies either in the subject country or in a third country
does not remove the product from the scope.
Specifically excluded from the scope of this investigation are
all-terrain vehicles (which typically have straddle seating and are
steered by handlebars), multipurpose off-highway utility vehicles
(which typically have a maximum top nameplate speed of greater than
25 miles per hour), and recreational off-highway vehicles (which
typically have a maximum top nameplate speed of greater than 30
miles per hour). Also excluded from the scope are go-karts, electric
scooters, golf trolleys, and mobility aids (which include power
wheelchairs and scooters which are used for the express purpose of
enabling mobility for a person).
The LSPTVs subject to the investigation are typically classified
in the Harmonized Tariff Schedule of the United States (HTSUS) at
subheading 8703.10.5030. LSPTVs subject to the investigation may
also enter under HTSUS subheading 8703.10.5060 and 8703.90.0100. The
LSPTV subassemblies that are subject to the investigation typically
enter under HTSUS subheadings 8706.00.1540 and 8707.10.0040. The
HTSUS subheadings are provided for convenience and customs purposes
only, and the written description of the merchandise subject to the
investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Alignment
IV. Injury Test
V. Preliminary Affirmative Determination of Critical Circumstances
VI. Analysis of China's Financial System
VII. Diversification of China's Economy
VIII. Use of Facts Available and Adverse Inferences
IX. Subsidies Valuation
X. Benchmarks and Interest Rates
XI. Analysis of Programs
XII. Recommendation
[FR Doc. 2024-28697 Filed 12-5-24; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on December 6, 2024.
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.