Refillable Stainless Steel Kegs From the People's Republic of China: Notice of Court Decision Not in Harmony With the Final Determination of Antidumping Investigation; Notice of Amended Final Determination; and Notice of Amended Antidumping Duty Order
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Abstract
On November 25, 2024, the U.S. Court of International Trade (CIT) issued its final judgment in New American Keg v. United States, Court No. 20-00008, sustaining the U.S. Department of Commerce's (Commerce) third remand redetermination pertaining to the less-than- fair-value (LTFV) investigation of refillable stainless steel kegs (kegs) from the People's Republic of China (China) covering the period of investigation (POI) January 1, 2018, through June 30, 2018. 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 and the resulting antidumping duty (AD) order with respect to the dumping margin for certain respondents eligible for a separate rate, i.e., Ningbo Master International Trade Co., Ltd. (Ningbo Master), Guangzhou Jingye Machinery Co., Ltd. (Guangzhou Jingye), and Guangzhou Ulix Industrial & Trading Co., Ltd. (Guangzhou Ulix). The merchandise exported by these three exporters is included in the amended AD order.
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<title>Federal Register, Volume 89 Issue 237 (Tuesday, December 10, 2024)</title>
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[Federal Register Volume 89, Number 237 (Tuesday, December 10, 2024)]
[Notices]
[Pages 99226-99227]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28946]
[[Page 99226]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-093]
Refillable Stainless Steel Kegs From the People's Republic of
China: Notice of Court Decision Not in Harmony With the Final
Determination of Antidumping Investigation; Notice of Amended Final
Determination; and Notice of Amended Antidumping Duty Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: On November 25, 2024, the U.S. Court of International Trade
(CIT) issued its final judgment in New American Keg v. United States,
Court No. 20-00008, sustaining the U.S. Department of Commerce's
(Commerce) third remand redetermination pertaining to the less-than-
fair-value (LTFV) investigation of refillable stainless steel kegs
(kegs) from the People's Republic of China (China) covering the period
of investigation (POI) January 1, 2018, through June 30, 2018. 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 and the resulting
antidumping duty (AD) order with respect to the dumping margin for
certain respondents eligible for a separate rate, i.e., Ningbo Master
International Trade Co., Ltd. (Ningbo Master), Guangzhou Jingye
Machinery Co., Ltd. (Guangzhou Jingye), and Guangzhou Ulix Industrial &
Trading Co., Ltd. (Guangzhou Ulix). The merchandise exported by these
three exporters is included in the amended AD order.
DATES: Applicable December 5, 2024.
FOR FURTHER INFORMATION CONTACT: Dmitry Vladimirov, AD/CVD Operations,
Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-0665.
SUPPLEMENTARY INFORMATION:
Background
On October 24, 2019, Commerce published its Final Determination in
the LTFV investigation of kegs from China.\1\ On December 16, 2019,
Commerce subsequently published the AD order on kegs from China.\2\ New
American Keg, d/b/a American Keg Company appealed Commerce's Final
Determination.
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\1\ See Refillable Stainless Steel Kegs from the People's
Republic of China: Final Affirmative Determination of Sales at Less
Than Fair Value and Final Affirmative Determination of Critical
Circumstances, in Part, 84 FR 57010 (October 24, 2019) (Final
Determination).
\2\ See Refillable Stainless Steel Kegs from the Federal
Republic of Germany and the People's Republic of China: Antidumping
Duty Orders, 84 FR 68405 (December 16, 2019) (Order).
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On March 23, 2021, the CIT remanded the Final Determination to
Commerce, ordering Commerce to reconsider or further explain: (1) its
selection of the Malaysian surrogate labor data over the Brazilian
surrogate labor data to value factors of production (FOPs) for labor;
and (2) whether Guangzhou Ulix is eligible for a separate rate.\3\ In
the First Redetermination, Commerce determined that ``Malaysian data
does not constitute the best available information for valuing Ningbo
Master's labor FOPs because it is linked to forced labor.'' \4\
Commerce further determined that ``based on the information on the
record, {it{time} selected the Mexican labor {surrogate value
(SV){time} from {Conference Board's International Labor Comparisons
(ILC){time} as the best information available to value Ningbo Master's
labor FOPs'' and ``inflated the Mexican labor SV from ILC to the {POI
using Brazilian inflator{time} and recalculated Ningbo Master's
margin.'' \5\ In the First Redetermination, Commerce also examined
certain evidence requested by the CIT and determined that Guangzhou
Ulix remained eligible for a separate rate.\6\
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\3\ See New American Keg v. United States, Court No. 20-00008,
Slip Op. 21-30 (CIT March 23, 2021).
\4\ See Final Results of Redetermination Pursuant to Court
Remand, New American Keg v. United States, Court No. 20-00008, Slip
Op. 21-30 (CIT March 23, 2021), dated July 7, 2021 (First
Redetermination).
\5\ Id.
\6\ Id.
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On September 13, 2022, the CIT remanded the First Redetermination
and ordered Commerce to reconsider or further explain: (1) the use of
the Mexican surrogate labor data inflated with Brazilian consumer price
index (CPI) when the Brazilian surrogate labor data are available on
the record; and (2) the evidence in the administrative record that
supports granting Guangzhou Ulix a separate rate.\7\ In the Second
Redetermination, after filing the First Redetermination and requesting
a voluntary remand, Commerce acknowledge that it was improper to
inflate the Mexican labor wage rate from the ILC using Brazilian
CPI.\8\ Notwithstanding, Commerce continued to determine that the
Mexican labor wage data are superior to the Brazilian labor wage data
and, in order to achieve an accurate calculation, Commerce re-opened
the record and placed on the record data from the International Labour
Organization (ILO).\9\ Consequently, in the Second Redetermination,
Commerce used the Mexican wage rate from the ILO data for 2018
(contemporaneous with the POI) and recalculated Ningbo Master's margin
accordingly.\10\ In the Second Redetermination, Commerce also
determined that Guangzhou Ulix has met its burden for a separate rate
status.\11\
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\7\ See New American Keg v. United States, Court No. 20-00008,
Slip Op. 22-106 (CIT September 13, 2022).
\8\ See Final Results of Redetermination Pursuant to Court
Remand, New American Keg v. United States, Court No. 20-00008, Slip
Op. 22-106 (CIT September 13, 2022), dated November 10, 2022 (Second
Redetermination).
\9\ Id.
\10\ Id.
\11\ Id.
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On January 31, 2024, the CIT remanded the Second Redetermination,
holding that Commerce abused its discretion in reopening the record to
use Mexican ILO wage data, because Commerce made no showing that the
Brazilian wage information on the record was inaccurate or otherwise
unsuitable for the calculation of Ningbo Master's margin.\12\ In its
third final remand redetermination, Commerce used the Brazilian labor
SV from 2016, inflated to the POI, and recalculated Ningbo Master's
margin.\13\ On November 25, 2024, the CIT sustained Commerce's third
final remand redetermination.\14\
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\12\ See New American Keg v. United States, Court No. 20-00008,
Slip Op. 24-11 (CIT January 31, 2024).
\13\ See Final Results of Redetermination Pursuant to Court
Remand, New American Keg v. United States, Court No. 20-00008, Slip
Op. 24-11 (CIT January 31, 2024), dated March 25, 2024.
\14\ See New American Keg v. United States, Court No. 20-00008,
Slip Op. 24-129 (CIT November 25, 2024).
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Timken Notice
In its decision in Timken,\15\ as clarified by Diamond
Sawblades,\16\ 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 November 25, 2024, judgment constitutes a final decision of
the CIT
[[Page 99227]]
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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\15\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir.
1990) (Timken).
\16\ 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 following exporter-producer
combinations:
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Cash deposit
Weighted rate (adjusted
average for subsidy
Exporter Producer dumping margin offsets)
(percent ad (percent ad
valorem) valorem)
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Ningbo Master International Trade Co., Ltd.... Ningbo Major Draft Beer 4.23 \17\ 3.96
Equipment Co., Ltd.
Guangzhou Jingye Machinery Co., Ltd........... Guangzhou Jingye Machinery Co., 4.23 3.96
Ltd.
Guangzhou Ulix Industrial & Trading Co., Ltd.. Guangzhou Jingye Machinery Co., 4.23 3.96
Ltd.
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Amended Antidumping Duty Order
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\17\ See Refillable Stainless Steel Kegs from the People's
Republic of China: Final Affirmative Countervailing Duty
Determination and Final Affirmative Determination of Critical
Circumstances, in Part, 84 FR 57005 (October 24, 2019), and
accompanying Issues and Decision Memorandum at 5 for the export
subsidy rate.
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Pursuant to section 735(a)(4) of the Act, Commerce ``shall
disregard any weighted average dumping margin that is de minimis as
defined in section 733(b)(3) of the Act'' \18\ and pursuant to section
735(c)(2) of the Act, Commerce shall ``issue an antidumping duty order
under section 736'' of the Act when the final determination is
affirmative. In the Final Determination, the exporter-producer
combination identified above for respondent Ningbo Master received a
zero percent margin. As a result of this amended final determination,
in which Commerce calculated an estimated weighted-average dumping
margin above de minimis for the exporter-producer combination
identified above for Ningbo Master, Commerce is hereby including
entries of subject merchandise that were produced by Ningbo Major Draft
Beer Equipment Co., Ltd., and exported by Ningbo Master International
Trade Co., Ltd., within the Order. However, Commerce recently revoked
the Order effective December 16, 2024.\19\
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\18\ Section 733(b)(3) of the Act defines a de minimis dumping
margin as ``less than 2 percent ad valorem or the equivalent
specific rate for the subject merchandise.''
\19\ See Refillable Stainless-Steel Kegs from Mexico and the
People's Republic of China: Final Results of Sunset Reviews and
Revocation of Orders, 89 FR 92095, 92096 (November 21, 2024) (Order
Revocation).
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Cash Deposit Requirements
Commerce will issue revised cash deposit instructions to U.S.
Customs and Border Protection (CBP) for Ningbo Master.
Because Guangzhou Jingye and Guangzhou Ulix have a superseding cash
deposit rate, i.e., there have been final results published in a
subsequent administrative review,\20\ Commerce will not issue revised
cash deposit instructions for those companies. This notice will not
affect the current cash deposit rate for these companies. However, as
stated in the Order Revocation, in accordance with section 751(c)(3)(A)
of the Act and 19 CFR 351.222(i)(2)(i), Commerce intends to instruct
CBP to terminate the suspension of liquidation of the merchandise
subject to the Order entered, or withdrawn from the warehouse, on or
after December 16, 2024.\21\
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\20\ See Refillable Stainless Steel Kegs from the People's
Republic of China: Final Results of the Antidumping Duty
Administrative Review; 2021-2022, 89 FR 25564 (April 11, 2024)
(Commerce denied separate rate eligibility for Guangzhou Jingye and
Guangzhou Ulix and treated them as part of the China-wide entity.).
\21\ See Order Revocation, 89 FR 92095-96.
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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: December 4, 2024.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2024-28946 Filed 12-9-24; 8:45 am]
BILLING CODE 3510-DS-P
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