[Federal Register Volume 80, Number 165 (Wednesday, August 26, 2015)]
[Notices]
[Pages 51779-51782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20794]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-018]


Boltless Steel Shelving Units Prepackaged for Sale From the 
People's Republic of China: Final Determination of Sales at Less Than 
Fair Value

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

SUMMARY: The Department of Commerce (``Department'') determines that 
boltless steel shelving units prepackaged for sale from the People's 
Republic of China (``PRC'') are being, or are likely to be, sold in the 
United States at less than fair value (``LTFV''), as provided in 
section 735 of the Tariff Act of 1930, as amended (``the Act''). The 
final weighted-average dumping margins for the investigation on 
boltless steel shelving units from the PRC are listed in the ``Final 
Determination Margins'' section, infra.

DATES: Effective Date: August 26, 2015.

FOR FURTHER INFORMATION CONTACT: Kabir Archuletta or Irene Gorelik, 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-
2593 or (202) 482-6905, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On April 1, 2015, the Department published its Preliminary 
Determination.\1\ On April 17, 2015, we published an Amended 
Preliminary Determination and postponement of the final 
determination.\2\ We invited interested parties to comment on our 
Preliminary Determination of sales at LTFV and Amended Preliminary 
Determination. For a list of the parties that filed case and rebuttal 
briefs, see the Issues and Decision Memorandum.\3\
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    \1\ See Boltless Steel Shelving Units Prepackaged for Sale from 
the People's Republic of China: Preliminary Determination of Sales 
at Less Than Fair Value, 80 FR 17409 (April 1, 2015) (Preliminary 
Determination).
    \2\ See Boltless Steel Shelving Units Prepackaged for Sale From 
the People's Republic of China: Amended Preliminary Determination of 
Sales at Less Than Fair Value and Postponement of Final 
Determination, 80 FR 21207 (April 17, 2015) (Amended Preliminary 
Determination).
    \3\ See Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance, ``Issues and Decision Memorandum for the Final 
Determination of the Antidumping Duty Investigation of Boltless 
Steel Shelving Units Prepackaged for Sale from the People's Republic 
of China,'' dated concurrently with this notice (``Issues and 
Decision Memorandum'').

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[[Page 51780]]

Period of Investigation

    The period of investigation (``POI'') is January 1, 2014, through 
June 30, 2014. This period corresponds to the two most recent fiscal 
quarters prior to the month of the filing of the petition, which was 
August 2014.\4\
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    \4\ See 19 CFR 351.204(b)(1).
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Scope of the Investigation

    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.
    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. Several 
interested parties commented on the scope of this investigation, which 
we have summarized in the accompanying Issues and Decision Memorandum. 
For a complete description of the scope of the investigation, see 
Appendix I to this notice.

Verification

    As provided in section 782(i) of the Act, between May 4 and May 15, 
2014, the Department conducted verification of the information 
submitted by Nanjing Topsun Racking Manufacturing Co., Ltd. 
(``Topsun'') and Zhongda United Holding Group Co., Ltd. (``Zhongda 
United'') \5\ for use in the final determination. We issued our 
verification reports on June 4, 2014, and June 5, 2015.\6\ The 
Department used standard verification procedures, including examination 
of relevant accounting and production records and original source 
documents provided by respondents.\7\
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    \5\ Zhongda United, Zhongda IE and Jiaxing Zhongda Metalwork 
Co., Ltd. (collectively, ``Zhongda'') submitted questionnaire 
responses on behalf of both companies based on the contention that 
the entities are affiliated. See Memorandum to the File from through 
Catherine Bertrand, Program Manager, Office V, from Kabir 
Archuletta, Senior International Trade Analyst, Office V 
``Antidumping Duty Investigation of Boltless Steel Shelving Units 
Prepackaged for Sale from the People's Republic of China: 
Preliminary Determination of Affiliation/Single Entity Treatment for 
Zhongda United Holding Group Co., Ltd., Jiaxing Zhongda Import & 
Export Co., Ltd., and Jiaxing Zhongda Metalwork Co., Ltd.'' (March 
24, 2015) (``Zhongda Affiliation Memo'').
    \6\ See the Department's two memoranda regarding: ``Verification 
of the Sales and Factors Response of Topsun Racking Manufacturing 
Co., Ltd. (``Topsun'') in the Antidumping Duty Less Than Fair Value 
Investigation of Boltless Steel Shelving Units Prepackaged for Sale 
from the People's Republic of China,'' dated June 4, 2015; and 
``Verification of the Sales and Factors Responses of Zhongda United 
Holding Group Co., Ltd., in the Investigation of Boltless Steel 
Shelving Units Prepackaged for Sale from the People's Republic of 
China,'' dated June 5, 2015. See also the Department Memorandum, 
``Revised Verification of the Sales and Factors Response of Topsun 
Racking Manufacturing Co., Ltd. (``Topsun'') in the Antidumping Duty 
Less Than Fair Value Investigation of Boltless Steel Shelving Units 
Prepackaged for Sale from the People's Republic of China.'' (August 
3, 2015) (``Topsun Revised Verification Report''); see also, 
Department's Letter to Topsun, ``Boltless Steel Shelving Units 
Prepackaged for Sale from the People's Republic of China: Public 
Treatment of Information Previously Bracketed as Proprietary.'' 
(July 27, 2015); Department's Letter to Topsun, ``Boltless Steel 
Shelving Units Prepackaged for Sale from the People's Republic of 
China: Public Treatment of Information Previously Bracketed as 
Proprietary.'' (July 30, 2015).
    \6\ See Letter from Topsun, ``Case Brief of Petitioner's 
Bracketing Concerns.'' (June 17, 2015).
    \7\ Id.
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Analysis of Comments Received

    We addressed all issues raised by parties in case and rebuttal 
briefs in the Issues and Decision Memorandum.\8\ Appendix II to this 
notice includes a list of the issues which the parties raised and to 
which the Department responded in the Issues and Decision Memorandum. 
The Issues and 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 http://access.trade.gov. The 
Issues and Decision Memorandum 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 Issues and Decision 
Memorandum is available at http://enforcement.trade.gov/frn/index.html. 
The signed and electronic versions of the Issues and Decision 
Memorandum are identical in content.
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    \8\ See Issues and Decision Memorandum.
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Changes Since the Amended Preliminary Determination

    Based on the Department's analysis of the comments received and our 
findings at verification, we made certain changes to Zhongda United's 
and Topsun's margin calculations. For a discussion of these changes, 
see the Issues and Decision Memorandum.
    Furthermore, we find that Topsun failed to cooperate by not acting 
to the best of its ability in this proceeding and, pursuant to section 
776(b) of the Act and 19 CFR 351.308(a), we have based Topsun's dumping 
margin on total adverse facts available (``AFA''). For further 
discussion, see the Issues and Decision Memorandum.

Combination Rates

    In the Initiation Notice,\9\ the Department stated that it would 
calculate combination rates for the respondents that are eligible for a 
separate rate in this investigation. Policy Bulletin 05.1 describes 
this practice.\10\
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    \9\ See Boltless Steel Shelving Units Prepackaged for Sale from 
the People's Republic of China: Initiation of Antidumping Duty 
Investigation, 79 FR 56562, 56566 (September 22, 2014) (``Initiation 
Notice'').
    \10\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (``Policy Bulletin 05.1''), available 
on the Department's Web site at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Separate Rate

    Under section 735(c)(5)(A) of the Act, the all-others rate is 
normally an amount equal to the weighted average of the estimated 
weighted average dumping margins established for exporters and 
producers individually investigated, excluding any zero and de minimis 
margins, and any margins determined entirely on the basis of facts 
available. Accordingly, when only one weighted-average dumping margin 
for an individually investigated respondent is above de minimis and not 
based entirely on facts available, the separate rate will be equal to 
that single, above de minimis rate.
    In this final determination, the Department has calculated a rate 
for Zhongda that is not zero, de minimis, or based entirely on facts 
available. With respect to the other mandatory respondent, we have 
determined to apply a rate that is based entirely on facts available, 
thus it is excluded from separate rate consideration. Therefore, the 
Department has assigned to the companies that have not been 
individually examined but have demonstrated their eligibility for a

[[Page 51781]]

separate rate a margin of 17.55 percent, which is the rate calculated 
for Zhongda.

PRC-Wide Rate

    For the final determination, we have determined to use, as the AFA 
rate applied to the PRC-wide entity, 112.68 percent, the highest 
CONNUM-specific dumping margin calculated in the Preliminary 
Determination. Consistent with our practice, the Department selected 
Topsun's highest CONNUM-specific margin, as AFA, because this rate is 
higher than the other rates in this investigation and therefore, 
sufficiently adverse to serve the purposes of facts available.\11\ 
Furthermore, there is no need to corroborate the selected margin 
because it is based on information submitted by Topsun in the course of 
this investigation, i.e., it is not secondary information.\12\
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    \11\ See Issues and Decision Memorandum for a detailed 
discussion.
    \12\ See 19 CFR 351.308(c) and (d) and section 776(c) of the 
Act.
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Final Determination

    The Department determines that the estimated final weighted-average 
dumping margins are as follows:

------------------------------------------------------------------------
                                                             Weighted-
            Exporter                     Producer         average margin
                                                             (percent)
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Zhongda United Holding Group     Jiaxing Zhongda                   17.55
 Co., Ltd.                        Metalwork Co., Ltd.
Jiaxing Zhongda Import & Export  Jiaxing Zhongda                   17.55
 Co., Ltd.                        Metalwork Co., Ltd.
Ningbo ETDZ Huixing Trade Co.,   Haifa (Ningbo) Office             17.55
 Ltd.                             Equipment Co., Ltd.
Ningbo ETDZ Huixing Trade Co.,   Ningbo Decko Metal                17.55
 Ltd.                             Products Trade Co.,
                                  Ltd.
Ningbo ETDZ Huixing Trade Co.,   Lianfa Metal Product              17.55
 Ltd.                             Co., Ltd.
Meridian International Co., Ltd  Zhejiang Limai Metal              17.55
                                  Products Co., Ltd.
Zhejiang Limai Metal Products    Zhejiang Limai Metal              17.55
 Co., Ltd.                        Products Co., Ltd.
HoiFat (NingBo) Office           HoiFat (NingBo) Office            17.55
 Facilities Co., Ltd.             Facilities Co., Ltd.
PRC-Wide Entity (including       .......................          112.68
 Nanjing Topsun Racking
 Manufacturing Co., Ltd.).
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Disclosure

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

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, the Department 
will instruct U.S. Customs and Border Protection (``CBP'') to continue 
to suspend liquidation of all appropriate entries of boltless steel 
shelving units prepackaged for sale from the PRC as described in the 
``Scope of the Investigation'' section, which were entered, or 
withdrawn from warehouse, for consumption on or after April 1, 2015, 
the date of publication in the Federal Register of the affirmative 
Preliminary Determination. Further, pursuant to 19 CFR 351.205(d), the 
Department will instruct CBP to require a cash deposit \13\ equal to 
the weighted-average amount by which the normal value exceeds U.S. 
price, adjusted where appropriate for export subsidies and estimated 
domestic subsidy pass-through, as follows: (1) For the exporter/
producer combination listed in the table above, the cash deposit rate 
will be equal to the dumping margin which the Department determined in 
this final determination; (2) for all combinations of PRC exporters/
producers of merchandise under consideration which have not received 
their own separate rate above, the cash deposit rate will be equal to 
the dumping margin established for the PRC-wide entity; and (3) for all 
non-PRC exporters of merchandise under consideration which have not 
received their own separate rate above, the cash deposit rate will be 
equal to the cash deposit rate applicable to the PRC exporter/producer 
combination that supplied that non-PRC exporter.
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    \13\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
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    As we stated in the Preliminary Determination, consistent with our 
practice, where the product under investigation is also subject to a 
concurrent countervailing duty investigation, we instruct CBP to 
require a cash deposit equal to the amount by which the normal value 
exceeds the export price or constructed export price, less the amount 
of the countervailing duty determined to constitute an export 
subsidy.\14\ In this LTFV investigation, export subsidies constitute 
16.06 percent \15\ of the final calculated countervailing duty rate in 
the concurrent countervailing duty investigation, and, thus, we will 
offset the calculated rates for Zhongda, the companies receiving a 
separate rate, and the PRC-wide rate of 112.68 percent by the 
countervailing duty rate attributable to export subsidies (i.e., 16.06 
percent) to calculate the cash deposit rate for this LTFV 
investigation. Furthermore, as previously stated, the Department did 
not adjust the preliminary determination AD margins for estimated 
domestic subsidy pass-through because respondents provided no 
information to support an adjustment pursuant to section 777A(f) of the 
Act.\16\
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    \14\ See Preliminary Determination, 80 FR at 17411.
    \15\ The following subsidy programs in the final determination 
of the concurrent countervailing duty investigation are export 
subsidies: Export Seller's Credits and Export Buyer's Credits from 
the Export-Import Bank of China (14.79 percent), GOC and Sub-Central 
Government Subsidies for the Development of Famous Brands and World 
Top Brands (0.58 percent), International Market Exploration (SME) 
Fund (0.58 percent), Export Assistance/Outward Expansion Grants in 
Guangdong Province (0.08 percent), Export Credit Insurance (0.01 
percent), Export Subsidy for High-Tech Merchandise (0.02 percent). 
See Countervailing Duty Investigation of Boltless Steel Shelving 
Units Prepackaged for Sale From the People's Republic of China: 
Final Affirmative Countervailing Duty Determination (``CVD Final'') 
and accompanying Issues and Decision Memorandum. The final 
determination in this companion CVD proceeding is being concurrently 
released on the same day as this final determination.
    \16\ See Preliminary Determination, 80 FR at 17411.
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International Trade Commission Notification

    In accordance with section 735(d) of the Act, we notified the 
International Trade Commission (``ITC'') of the final affirmative 
determination of sales at LTFV. As the Department's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will determine, within 45 days, whether the domestic industry in

[[Page 51782]]

the United States is materially injured, or threatened with material 
injury, by reason of imports of boltless steel shelving units 
prepackaged for sale from the PRC, or sales (or the likelihood of 
sales) for importation, of boltless steel shelving units prepackaged 
for sale from the PRC. If the ITC determines that such injury does not 
exist, this proceeding will be terminated and all securities posted 
will be refunded or canceled. If the ITC determines that such injury 
does exist, the Department will issue an antidumping duty order 
directing CBP to assess, upon further instruction by the Department, 
antidumping duties on all imports of the subject merchandise entered, 
or withdrawn from warehouse, for consumption on or after the effective 
date of the suspension of liquidation.

Return or Destruction of Proprietary Information

    This notice also serves as a reminder to the parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305. Timely written notification of 
return or 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 sanctionable violation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act.

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

Appendix I--Scope of the Investigation

    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.
    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; 
\17\
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    \17\ 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.

Appendix II--Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Changes Since the Preliminary Determination
V. Use of Adverse Facts Available
VI. Discussion of the Issues

General Issues

Comment 1: Surrogate Country
Comment 2: Whether Whirlpool's Products Are Within the Scope
    A. Whirlpool's Incomplete Units
    B. Whirlpool's Pre-Wrapped Bundles
Comment 3: Whether Costco's Products Are Within the Scope

Surrogate Value Issues

Comment 4: Freight Weight Basis
Comment 5: Steel Strip Surrogate Value
Comment 6: Wire Deck Surrogate Value
Comment 7: Carton Surrogate Value
Comment 8: Surrogate Financial Ratios
    A. Other Income/Expense
    B. Commission/Advertisement

Company-Specific Issues

Topsun

Comment 9: Standards for Department Determinations
    A. Consistent Disposition of New Factual Information Submissions
    B. Rejection of New Information
Comment 10: Whether Topsun's Due Process Was Violated
Comment 11: Whether To Assign an Adverse Inference to Topsun's Cost 
of Goods Sold
Comment 12: Differential Pricing
Comment 13: Treatment of Topsun's Wire Decks

Zhongda

Comment 14: Byproduct Offset
Comment 15: Value-Added Tax (``VAT'') Adjustment
Comment 16: Whether AD/CVD Remedies Are Duplicative

JS Products

Comment 17: Separate Rate

[FR Doc. 2015-20794 Filed 8-25-15; 8:45 am]
 BILLING CODE 3510-DS-P