[Federal Register Volume 80, Number 165 (Wednesday, August 26, 2015)]
[Notices]
[Pages 51775-51777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20785]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-019]


Boltless Steel Shelving Units Prepackaged for Sale From the 
People's Republic of China: Final Affirmative Countervailing Duty 
Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (``Department'') published the 
Preliminary Determination of the countervailing duty (``CVD'') 
investigation of boltless steel shelving units prepackaged for sale 
(``boltless steel shelves'') from the People's Republic of China 
(``PRC'') on January 30, 2015.\1\ The Department determines that 
countervailable subsidies are being provided to producers and exporters 
of boltless steel shelves from the PRC. For information on the 
estimated subsidy rates, see the ``Final Determination'' section of 
this notice. The period of investigation is January 1, 2013 through 
December 31, 2013.
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    \1\ See Boltless Steel Shelving Units Prepackaged for Sale from 
the People's Republic of China: Preliminary Determination and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 80 FR 5089 (January 30, 2015) (``Preliminary 
Determination'').

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DATES: Effective Date: August 26, 2015.

FOR FURTHER INFORMATION CONTACT: Susan Pulongbarit (Topsun) or Paul 
Walker (ETDZ), AD/CVD Operations, Office V, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 14th 
Street and Constitution Avenue NW., Washington, DC 20230; telephone 
202.482.4031, or 202.482.0413, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On January 30, 2015, the Department published the Preliminary 
Determination.\2\ Between May 6 and June 6, 2015, we conducted 
verifications of the questionnaire responses of Nanjing ETDZ Huixing 
Trade Co., Ltd. (``ETDZ''), Nanjing Topsun Racking Manufacturing Co., 
Ltd. (``Topsun''), and a customer.\3\ On May 21, 2015, the Department 
issued the Post-preliminary Determination.\4\ Between June 24 and June 
29, 2015, interested parties submitted case and rebuttal briefs. A full 
discussion of the issues raised by parties for this final determination 
may be found in the I&D Memo, which is hereby adopted by this 
notice.\5\ The I&D Memo 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 http://access.trade.gov, and 
is available to all parties in the Central Records Unit, room B8024 of 
the main Department of Commerce building. In addition, a complete 
version of the I&D Memo can be accessed directly at http://enforcement.trade.gov/frn/index.html. The signed I&D Memo and the 
electronic versions are identical in content.
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    \2\ See Countervailing Duty Investigation of Boltless Steel 
Shelving Units Prepackaged for Sale from the People's Republic of 
China: Preliminary Determination and Alignment of Final 
Determination with Final Antidumping Duty Determination, 80 FR 5089 
(January 30, 2015) (``Preliminary Determination'') and accompanying 
Preliminary Decision Memorandum (``PDM'').
    \3\ See Memorandum to Scot T. Fullerton, Program Manager, from 
Susan S. Pulongbarit, Senior International Trade Analyst, 
``Countervailing Duty Investigation: Boltless Steel Shelving Units 
Prepackaged for Sale from the People's Republic of China: 
Verification Report: Nanjing Topsun Racking Manufacturing Co., Ltd. 
(``Topsun'') and Nanjing Great Wall Co., Ltd. (``Great Wall''),'' 
dated June 16, 2015; Memorandum to Scot T. Fullerton, Program 
Manager, from Paul Walker, Case Analyst, ``Countervailing Duty 
Investigation of Boltless Steel Shelving Units Prepackaged for Sale 
from the People's Republic of China: Verification Report for Ningbo 
ETDZ Huixing Trade Co., Ltd.,'' dated June 16, 2015; and Memorandum 
to Paul Walker, Acting Program Manager, from Susan Pulongbarit, Case 
Analyst, ``Countervailing Duty Investigation of Boltless Steel 
Shelving Units Prepackaged for Sale from the People's Republic of 
China: Verification Report,'' dated June 17, 2015.
    \4\ See Memorandum to Paul Piquado, Assistant Secretary, 
Enforcement and Compliance, from Christian Marsh, Deputy Assistant 
Secretary, for Antidumping and Countervailing Duty Operations, 
``Countervailing Duty Investigation of Boltless Steel Shelving Units 
Prepackaged for Sale from the People's Republic of China: Post-
Preliminary Determination Decision Memorandum,'' dated May 29, 2015 
(``Post-preliminary Determination'').
    \5\ See Memorandum to Ronald K. Lorentzen, Acting Assistant 
Secretary, Enforcement and Compliance, from Christian Marsh, Deputy 
Assistant Secretary, for Antidumping and Countervailing Duty 
Operations, ``Countervailing Duty Investigation of Boltless Steel 
Shelving Units Prepackaged for Sale from the People's Republic of 
China: Issues and Decision Memorandum for the Final Determination,'' 
dated concurrently with this notice (``I&D Memo'').
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Scope of the Investigation and Scope Comments

    The scope of this investigation covers boltless steel shelving 
units prepackaged for sale, with or without decks (``boltless steel 
shelving''). The term ``prepackaged for sale'' means that, at a 
minimum, the steel vertical supports (i.e., uprights and posts) and 
steel horizontal supports (i.e., beams, braces) necessary to assemble a 
completed shelving unit (with or without decks) are packaged together 
for ultimate purchase by the end-user. The scope also includes add-on 
kits. Add-on kits include, but are not limited to, kits that allow the 
end-user to add an extension shelving unit onto an existing boltless 
steel shelving unit such that the extension and the original unit will 
share common frame elements (e.g., two posts). The term ``boltless'' 
refers to steel shelving in which the vertical and horizontal supports 
forming the frame are assembled primarily without the use of nuts and 
bolts, or screws. The vertical and horizontal support members for 
boltless steel shelving are assembled by methods such as, but not 
limited to, fitting a rivet, punched or cut tab, or other similar 
connector on one support into a hole, slot or similar receptacle on 
another support. The supports lock together to form the frame for the 
shelving unit, and provide the structural integrity of the shelving 
unit separate from the inclusion of any decking. The incidental use of 
nuts and bolts, or screws to add accessories, wall anchors, tie-bars or 
shelf supports does not remove the product from scope. Boltless steel 
shelving units may also come packaged as partially assembled, such as 
when two upright supports are welded together with front-to-back 
supports, or are otherwise connected, to form an end unit for the 
frame. The boltless steel shelving covered by this investigation may be 
commonly described as rivet shelving, welded frame shelving, slot and 
tab shelving, and punched rivet (quasi-rivet) shelving as well as by 
other trade names. The term ``deck'' refers to the shelf that sits on 
or fits into the horizontal supports (beams or braces) to provide the 
horizontal storage surface of the shelving unit.

[[Page 51776]]

    The scope includes all boltless steel shelving meeting the 
description above, regardless of (1) vertical support or post type 
(including but not limited to open post, closed post and tubing); (2) 
horizontal support or beam/brace profile (including but not limited to 
Z-beam, C-beam, L-beam, step beam and cargo rack); (3) number of 
supports; (4) surface coating (including but not limited to paint, 
epoxy, powder coating, zinc and other metallic coating); (5) number of 
levels; (6) weight capacity; (7) shape (including but not limited to 
rectangular, square, and corner units); (8) decking material (including 
but not limited to wire decking, particle board, laminated board or no 
deck at all); or (9) the boltless method by which vertical and 
horizontal supports connect (including but not limited to keyhole and 
rivet, slot and tab, welded frame, punched rivet and clip).
    Specifically excluded from the scope are:
     Wall-mounted shelving, defined as shelving that is hung on 
the wall and does not stand on, or transfer load to, the floor; \6\
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    \6\ The addition of a wall bracket or other device to attach 
otherwise freestanding subject merchandise to a wall does not meet 
the terms of this exclusion.
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     wire shelving units, which consist of shelves made from 
wire that incorporates both a wire deck and wire horizontal supports 
(taking the place of the horizontal beams and braces) into a single 
piece with tubular collars that slide over the posts and onto plastic 
sleeves snapped on the posts to create the finished shelving unit;
     bulk-packed parts or components of boltless steel shelving 
units; and
     made-to-order shelving systems.
    Subject boltless steel shelving enters the United States through 
Harmonized Tariff Schedule of the United States (``HTSUS'') statistical 
subheadings 9403.20.0018, 9403.20.0020, 9403.20.0025, and 9403.20.0026, 
but may also enter through HTSUS 9403.10.0040. While HTSUS subheadings 
are provided for convenience and Customs purposes, the written 
description of the scope of this investigation is dispositive.
    The Department received comments regarding the scope of this 
investigation from numerous interested parties, which we have 
summarized and addressed in the accompanying I&D Memo.\7\
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    \7\ See I&D Memo at Comments XIII.
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the I&D Memo. A list of the issues that parties raised, 
and to which we responded in the I&D Memo, is attached to this notice 
as an Appendix.

Use of Adverse Facts Available

    For purposes of this final determination, we relied on facts 
available, and have drawn an adverse inference, in accordance with 
sections 776(a) and (b) of the Tariff Act of 1930, as amended (the 
``Act''), in determining the countervailability of the GOC's provision 
of electricity for less than adequate remuneration (``LTAR''), the 
GOC's provision of hot-rolled coiled steel for LTAR, and for certain 
companies which did not respond to the Department's quantity and value 
questionnaire. The Department also relied on facts available in 
determining the countervailability of the following programs: 
Exhibition Subsidy, Foreign Trade Bureau Award, Export Credit Insurance 
and Export Subsidy for High-tech Merchandise, and the Innovative Growth 
Subsidy. The Department notes that because one or more respondents did 
not act to the best of their ability to respond to the Department's 
requests for information, we drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\8\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the I&D Memo.
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    \8\ See sections 776(a) and (b) of the Act.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, and minor corrections presented at verification, we made 
certain changes to the subsidy rate calculations since the Preliminary 
Determination. For a discussion of these changes, see the I&D Memo.

Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated an estimated individual countervailable subsidy rate for 
each producer/exporter of the subject merchandise individually 
investigated.\9\ We determine the total estimated net countervailable 
subsidy rates to be:
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    \9\ Section 705(c)(5)(A)(i) of the Act states that, for 
companies not individually investigated, we 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. Notwithstanding the language of section 705(c)(5)(A)(i) 
of the Act, we have not calculated the ``all others'' rate by weight 
averaging the rates of ETDZ and Topsun because doing so risks 
disclosure of proprietary information. Therefore, we calculated a 
simple average of ETDZ's and Topsun's rates.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Ningbo ETDZ Huixing Trade Co., Ltd......................           12.40
Nanjing Topsun Racking Manufacturing Co., Ltd...........           15.05
All Others..............................................           13.73
Dalian Huameilong Metal Products Co., Ltd *.............           80.45
Dongguan Yuan Er Sheng Machinery Source Hardware Co.,              80.45
 Ltd *..................................................
Dong Rong Metal Products Co., Ltd *.....................           80.45
Global Storage Equipment Manufacturer Limited *.........           80.45
Intradin (Shanghai) Import & Export Co., Ltd *..........           80.45
Jinhua Development District Hongfa Tool, Ltd *..........           80.45
Kunshan Jisheng Metal & Plastic Co., Ltd *..............           80.45
Nanjing Huade Warehousing Equipment Manufacturing Co.              80.45
 Ltd *..................................................
Nanjing Whitney Metal Products Co., Ltd *...............           80.45
Nanjing Yodoly Logistics Equipments Manufacturing Co.,             80.45
 Ltd *..................................................
Ningbo Decko Metal Products Trade Co., Ltd *............           80.45
Ningbo Haifa Metal Works Co., Ltd *.....................           80.45
Ningbo HaiFa Office Equipment Co., Ltd *................           80.45
Ningbo TLT Metal Products Co., Ltd *....................           80.45
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* Non-cooperative company to which an adverse facts available rate is
  being applied. See ``Use of Facts Otherwise Available and Adverse
  Inferences'' section in the I&D Memo.

Disclosure

    We intend to disclose to parties the calculations performed in this 
proceeding within five days of the public announcement of this notice 
in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (``CBP'') to suspend liquidation of all entries of subject 
merchandise from the PRC that were entered, or withdrawn from 
warehouse, for consumption on or after January 30, 2015, the date of 
the publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, we issued 
instructions to CBP to

[[Page 51777]]

discontinue the suspension of liquidation for CVD purposes for subject 
merchandise entered, or withdrawn from warehouse, on or after May 30, 
2015, but to continue the suspension of liquidation of all entries from 
January 30, 2015, through May 29, 2015.
    If the International Trade Commission (``ITC'') issues a final 
affirmative injury determination, we will issue a CVD order and 
reinstate the suspension of liquidation under section 706(a) of the 
Act, and we will require a cash deposit of estimated CVDs for such 
entries of merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (``APO''), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: August 14, 2015.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the I&D Memo

Comment I: Whether State Ownership Makes an Entity a Government 
Authority
Comment II: Whether Chinese Communist Party (``CCP'') Affiliations/
Activities by Company Officials Make the Company a Government 
Authority
Comment III: Whether the GOC Responded to the Best of its Ability 
Regarding Ownership and CCP Affiliation for HRCS Suppliers and 
Provided Sufficient Evidence to Find that Some Producers Were not 
Government Authorities
Comment IV: Whether the Provision of HRCS Is Specific
Comment V: Use of a Tier-One Price for the Provision of HRCS
Comment VI: Cold-Rolled for LTAR
Comment VII: Whether to Adjust the HRCS Benchmark Values
Comment VIII: Whether the Provision of Electricity is 
Countervailable
Comment IX: Topsun's Denominator
Comment X: Export Seller's Credits and Export Buyer's Credits from 
China ExIm
Comment XI: Two Free Three Half Program
Comment XII: Other Programs
Comment XIII: Whether Whirlpool's Products are Within the Scope

[FR Doc. 2015-20785 Filed 8-25-15; 8:45 am]
 BILLING CODE 3510-DS-P