[Federal Register Volume 81, Number 209 (Friday, October 28, 2016)]
[Notices]
[Pages 75037-75039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26105]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-031]


Countervailing Duty Investigation of Certain Iron Mechanical 
Transfer Drive Components From the People's Republic of China: Final 
Affirmative Determination

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

SUMMARY: The Department of Commerce (the ``Department'') determines 
that countervailable subsidies are being provided to producers and 
exporters of certain iron mechanical transfer drive components 
(``IMTDCs'') from the People's Republic of China (the ``PRC''). For 
information on the estimated subsidy rates, see the ``Final 
Determination and Suspension of Liquidation'' section of this notice.

DATES: Effective October 28, 2016.

FOR FURTHER INFORMATION CONTACT: Robert Galantucci, AD/CVD Operations, 
Office IV, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone (202) 482-
2923.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the Preliminary Determination on April 11, 
2016.\1\ A summary of the events that occurred since the Department 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the Issues and Decision Memorandum \2\ issued concurrently 
with this notice. 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, 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 Issues and Decision Memorandum 
can be accessed directly at http://enforcement.trade.gov/frn/. The 
signed Issues and Decision Memorandum and the electronic version are 
identical in content.
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    \1\ See Countervailing Duty Investigation of Certain Iron 
Mechanical Transfer Drive Components From the People's Republic of 
China: Preliminary Affirmative Determination and Alignment of Final 
Determination With Final Antidumping Duty Determination, 81 FR 21316 
(April 11, 2016) (``Preliminary Determination'') and accompanying 
Issues and Decision Memorandum (``Preliminary Decision 
Memorandum'').
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Certain Iron Mechanical Transfer Drive Components from the People's 
Republic of China,'' dated concurrently with this determination and 
hereby adopted by this notice (``Issues and Decision Memorandum'').
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Period of Investigation

    The period of investigation for which we are measuring subsidies is 
January 1, 2014 through December 31, 2014.

Scope Comments

    The Department set aside a period of time for parties to address 
scope issues.\3\ For a summary of the product coverage comments 
submitted to the record of this final determination, and the 
Department's discussion and analysis of all comments timely received, 
see the Final Scope Decision Memorandum.\4\ The Final Scope Decision 
Memorandum is incorporated by, and hereby adopted by, this notice.
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    \3\ See Memorandum, ``Certain Iron Mechanical Transfer Drive 
Components from Canada and the People's Republic of China: Deadline 
for Scope Comments,'' July 19, 2016.
    \4\ See Memorandum, ``Antidumping Duty Investigations of Certain 
Iron Mechanical Transfer Drive Components from Canada and the 
People's Republic of China and Countervailing Duty Investigation of 
Certain Iron Mechanical Transfer Drive Components from the People's 
Republic of China: Scope Decision Memorandum for the Final 
Determinations,'' (``Final Scope Decision Memorandum'') dated 
concurrently with this final determination; see also Memorandum, 
``Certain Iron Mechanical Transfer Drive Components from Canada and 
the People's Republic of China: Scope Comments Decision Memorandum 
for the Preliminary Determinations,'' dated May 31, 2016.
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Scope of the Investigation

    The products covered by this investigation are IMTDCs from the PRC. 
For a complete description of the scope of this investigation, see the 
``Scope of the Investigation,'' in Appendix II of this notice.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs submitted by the parties, are discussed in 
the Issues and Decision Memorandum. A list of the issues that parties 
raised, and to which we responded in the Issues and Decision 
Memorandum, is attached to this notice at Appendix I.

Use of Adverse Facts Available (``AFA'')

    In making its findings, the Department relied, in part, on facts 
available. For mandatory respondent NOK (Wuxi) Vibration Control China 
Co. Ltd. (``NOK Wuxi''), we are basing the countervailing duty 
(``CVD'') rate on facts otherwise available, pursuant to sections 
776(a)(2)(C) and (D) of the Tariff Act of 1930, as amended (the 
``Act''). Further, because NOK Wuxi did not cooperate to the best of 
its ability in this investigation, we determine that an adverse 
inference is warranted, pursuant to section 776(b) of the Act. The 
Department has applied a total AFA rate to NOK Wuxi. Similarly, the 
Department has applied a total AFA rate to 30 companies that failed to 
respond to the Department's quantity and value questionnaire.\5\
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    \5\ See Preliminary Determination at 81 FR 21317-21318.
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    Additionally, in several instances the Department has applied 
partial AFA to calculate subsidy rates for the other mandatory 
respondent Powermach Import & Export Co., Ltd. (Sichuan) (``Powermach 
I&E''). For further information, see the section titled ``Use of Facts 
Otherwise Available and Adverse Inferences,'' in the Issues and 
Decision Memorandum.

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties,

[[Page 75038]]

and minor corrections presented at verification, we made certain 
changes to Powermach I&E's subsidy rate calculations since the 
Preliminary Determination. For a discussion of these changes, see the 
Issues and Decision Memorandum and the Final Analysis Memorandum.\6\
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    \6\ See Issues and Decision Memorandum; see also Memorandum, 
``Countervailing Duty Investigation of Certain Iron Mechanical 
Transfer Drive Components from the People's Republic of China: 
Powermach Final Analysis Memorandum,'' dated October 21, 2016 
(``Final Analysis Memorandum'').
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Final Determination and Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established rates for Powermach I&E (the only individually investigated 
exporter/producer of the subject merchandise that participated in this 
investigation), and for NOK Wuxi (which was assigned a rate based on 
AFA).
    In accordance with sections 705(c)(1)(B)(i)(I) and 705(c)(5)(A)(i) 
of the Act, for companies not individually investigated, we apply an 
``all-others'' rate. The all-others rate is normally calculated by 
weight averaging the subsidy rates of the individual companies selected 
for individual examination with those companies' export sales of the 
subject merchandise to the United States, excluding any zero and de 
minimis rates calculated for the exporters and producers individually 
investigated, and any rates determined entirely under section 776 of 
the Act. Consistent with section 705(c)(5)(A)(i) of the Act, we 
therefore have excluded the AFA rate assigned to NOK Wuxi from our 
calculation of the all-others rate.
    Because the only individually calculated rate that is not zero, de 
minimis, or based on facts otherwise available is the rate calculated 
for Powermach I&E, in accordance with section 705(c)(5)(A)(i) of the 
Act, the rate calculated for Powermach I&E is assigned as the all-
others rate. The estimated countervailable subsidy rates are summarized 
in the table below.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Powermach Import & Export Co., Ltd. (Sichuan), Sichuan             33.26
 Dawn Precision Technology Co., Ltd., Sichuan Dawn
 Foundry Co. Ltd., and Powermach Machinery Co., Ltd.....
NOK (Wuxi) Vibration Control China Co., Ltd., and Wuxi            163.46
 NOK--Freudenberg Oil Seal Co., Ltd.*...................
Changzhou Baoxin Metallurgy Equipment Manufacturing Co.           163.46
 Ltd.*..................................................
Changzhou Changjiang Gear Co., Ltd.*....................          163.46
Changzhou Gangyou Lifting Equipment Co., Ltd.*..........          163.46
Changzhou Juling Foundry Co., Ltd.*.....................          163.46
Changzhou Liangjiu Mechanical Manufacturing Co Ltd.*....          163.46
Changzhou New Century Sprocket Group Company *..........          163.46
Changzhou Xiangjin Precision Machinery Co., Ltd.*.......          163.46
FIT Bearings *..........................................          163.46
Fuzhou Minyue Mechanical & Electrical Co., Ltd.*........          163.46
Hangzhou Chinabase Machinery Co., Ltd.*.................          163.46
Hangzhou Ever Power Transmission Group *................          163.46
Hangzhou Vision Chain Transmission Co., Ltd.*...........          163.46
Hangzhou Xingda Machinery Co., Ltd.*....................          163.46
Henan Xinda International Trading Co., Ltd.*............          163.46
Henan Zhiyuan Machinery Sprocket Co. Ltd.*..............          163.46
Jiangsu Songlin Automobile Parts Co., Ltd *.............          163.46
Martin Sprocket & Gear (Changzhou) Co., Ltd.*...........          163.46
Ningbo Blue Machines Co., Ltd.*.........................          163.46
Ningbo Fulong Synchronous Belt Co., Ltd.*...............          163.46
Ningbo Royu Machinery Co., Ltd.*........................          163.46
Praxair Surface Technologies *..........................          163.46
Qingdao Dazheng Jin Hao International Trade Co., Ltd.*..          163.46
Quanzhou Licheng Xintang Automobile Parts Co., Ltd.               163.46
 (``XTP Auto Parts'') *.................................
Shangyu Shengtai Machinery Co., Ltd.*...................          163.46
Shenzhen Derui Sourcing Co., Ltd.*......................          163.46
Shengzhou Shuangdong Machinery Co., Ltd.*...............          163.46
Shengzhou Xinglong Machinery *..........................          163.46
Sichuan Reach Jiayuan Machinery Co. Ltd.*...............          163.46
Tran-Auto Industries Co. Ltd.*..........................          163.46
Ubet Machinery *........................................          163.46
All-Others..............................................           33.26
------------------------------------------------------------------------
* Non-cooperative company to which an AFA rate is being applied. See
  Issues and Decision Memorandum and Preliminary Decision Memorandum for
  additional information.

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (``CBP'') to suspend liquidation of all entries 
of merchandise under consideration from the PRC that were entered or 
withdrawn from warehouse, for consumption, on or after April 11, 2016, 
the date of publication of the Preliminary Determination in the Federal 
Register.
    In accordance with section 703(d) of the Act, we later issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after August 9, 2016, but to continue the suspension 
of liquidation of all entries between April 11, 2016 and August 8, 
2016.
    If the U.S. International Trade Commission (the ``ITC'') issues a 
final affirmative injury determination, we will issue a CVD order and 
will reinstate the suspension of liquidation under section 706(a) of 
the Act and will require a cash deposit of estimated CVDs for such 
entries of subject

[[Page 75039]]

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 the ITC issues a final negative injury determination, 
this notice serves 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 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 violation subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: October 21, 2016.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Application of the Countervailing Duty Law to Imports From the 
PRC
VI. Subsidies Valuation Information
VII. Benchmarks and Discount Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Analysis of Programs
X. Analysis of Comments
    Comment 1: Whether to Apply AFA With Respect to NOK Wuxi
    Comment 2: Whether to Apply AFA With Respect to the Powermach 
Companies
    Comment 3: Whether to Apply AFA or FA to Purchases of Pig Iron 
and Ferrous Scrap
    Comment 4: Whether to Apply AFA With Respect to the Program 
titled ``VAT and Import Tariff Exemptions for Imported Equipment''
    Comment 5: Whether To Revise the Total AFA Rate Calculated in 
the Preliminary Determination
    Comment 6: Whether To Recalculate the Neutral Facts Available 
Rate Applied to Cenfit
    Comment 7: Whether To Revise the Benchmark for Pig Iron and 
Ferrous Scrap
    Comment 8: Whether To Exclude VAT From the LTAR Benchmark Prices
    Comment 9: Whether To Revise the Calculation of Benefits From 
the Land for LTAR Program
    Comment 10: Whether To Revise the Inland Freight Costs Included 
in Input Benchmarks
    Comment 11: Whether To Correct Ministerial Errors
    Comment 12: Whether Producers of Pig Iron and Ferrous Scrap Are 
``Authorities''
    Comment 13: Whether Inputs for LTAR Are Specific
    Comment 14: Whether to Use a Tier One Benchmark for LTAR 
Programs
    Comment 15: Whether the Provision of Electricity for LTAR is 
Countervailable
    Comment 16: Whether the GOC Provided Policy Loans During the POI
    Comment 17: Whether the Department Properly Investigated 
Uninitiated Programs
    Comment 18: Whether the Department Should Find That the Program 
Titled ``Income Tax Credits for Domestically-Owned Companies 
Purchasing Domestically Produced Equipment'' Has Been Terminated
    Comment 19: Whether Baldor Electric Company (Canada) Should 
Receive the All-Others Rate
XI. Recommendation

[FR Doc. 2016-26105 Filed 10-27-16; 8:45 am]
 BILLING CODE 3510-DS-P