[Federal Register Volume 82, Number 178 (Friday, September 15, 2017)]
[Notices]
[Pages 43331-43335]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19633]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-057]


Certain Tool Chests and Cabinets From the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination

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

[[Page 43332]]

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of certain tool chests and cabinets (tool 
chests) from the People's Republic of China (PRC). The period of 
investigation is January 1, 2016, through December 31, 2016.

DATES: Applicable September 15, 2017.

FOR FURTHER INFORMATION CONTACT: Hermes Pinilla or Thomas Schauer, 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) 482-3477 or (202) 
482-0410, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). The Department 
published the notice of initiation of this investigation on May 9, 
2017.\1\ On June 12, 2017, the Department postponed the preliminary 
determination of this investigation and the revised deadline is now 
September 8, 2017.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ 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 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 Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Certain Tool Chests and Cabinets From the People's 
Republic of China: Initiation of Countervailing Duty Investigation, 
82 FR 21516 (May 9, 2017) (Initiation Notice).
    \2\ See Certain Tool Chests and Cabinets From the People's 
Republic of China: Postponement of Preliminary Determination of 
Countervailing Duty Investigation, 82 FR 31045 (July 5, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination: Countervailing Duty Investigation of 
Certain Tool Chests and Cabinets From the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are tool chests from the 
PRC. For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\4\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\6\ The 
Department is preliminarily modifying the scope language as it appeared 
in the Initiation Notice. See revised scope in Appendix I.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 82 FR at 21517.
    \6\ See Memorandum, ``Certain Tool Chests and Cabinets From the 
People's Republic of China: Scope Comments Decision Memorandum for 
the Preliminary Determination,'' dated concurrently with this notice 
(Preliminary Scope Decision Memorandum).
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Methodology

    The Department is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, the Department preliminarily determines 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.\7\
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    \7\ 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.
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    The Department notes that, in making these findings, it relied, in 
part, on facts available and, because it finds that one or more 
respondents did not act to the best of their ability to respond to the 
Department's requests for information, it 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 Preliminary Decision 
Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, the Department 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 zero and de minimis rates and any rates based entirely 
under section 776 of the Act.
    In this investigation, the Department calculated individual 
estimated countervailable subsidy rates for Jiangsu Tongrun Equipment 
Technology Co., Ltd. (Tongrun) and Zhongshan Geelong Manufacturing Co., 
Ltd. (Geelong) that are not zero, de minimis, or based entirely on 
facts otherwise available. The Department calculated the all-others' 
rate using a weighted average of the individual estimated subsidy rates 
calculated for the examined respondents using each company's publicly-
ranged values for the merchandise under consideration.\9\
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    \9\ With two respondents under examination, the Department 
normally calculates (A) a weighted-average of the estimated subsidy 
rates calculated for the examined respondents; (B) a simple average 
of the estimated subsidy rates calculated for the examined 
respondents; and (C) a weighted-average of the estimated subsidy 
rates calculated for the examined respondents using each company's 
publicly-ranged U.S. sale quantities for the merchandise under 
consideration. The Department then compares (B) and (C) to (A) and 
selects the rate closest to (A) as the most appropriate rate for all 
other producers and exporters. See, e.g., Ball Bearings and Parts 
Thereof From France, Germany, Italy, Japan, and the United Kingdom: 
Final Results of Antidumping Duty Administrative Reviews, Final 
Results of Changed-Circumstances Review, and Revocation of an Order 
in Part, 75 FR 53661, 53663 (September 1, 2010). As complete 
publicly ranged sales data was available, the Department based the 
all-others rate on the publicly ranged sales data of the mandatory 
respondents. For a complete analysis of the data, please see the 
All-Others' Rate Calculation Memorandum.
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Preliminary Determination

    The Department preliminarily determines that the following 
estimated countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                          Subsidy rate
                        Company                             (percent)
------------------------------------------------------------------------
Jiangsu Tongrun Equipment Technology Co., Ltd.........             17.32
Zhongshan Geelong Manufacturing Co., Ltd..............             32.07

[[Page 43333]]

 
Allround Hardware Co., Ltd............................            112.99
Beijing Kang Jie Kong International Cargo Agent Co.,              112.99
 Ltd..................................................
Changshu Zhongcheng Tool Box Co., Ltd.................             27.13
Changzhou City Hongfei Metalwork Corporation..........            112.99
Changzhou Machan Steel Furniture Co., Ltd.............             27.13
China National Electronics Import and Export Ningbo Co            112.99
Foshan Lishida Metal Products Co., Ltd................            112.99
Gem-Year Industrial Co., Ltd..........................            112.99
Guangdong Hisense Home Appliances Co., Ltd............             27.13
Guerjie Enterprise Co., Ltd...........................            112.99
Haiyan Dingfeng Fasteners Ltd.........................            112.99
Hangzhou Xiaoshan Import and Export Trading Co., Ltd..            112.99
Hyxion Metal Industry.................................             27.13
Jiaxing Pinyou Import & Export Co., Ltd...............            112.99
Jin Rong Hua Le Metal Manufactures Co., Ltd...........             27.13
Jinhua JG Tools Manufacturing Co......................             27.13
Jinhua Yahu Tools Co., Ltd............................             27.13
Keesung Manufacturing Co., Ltd........................             27.13
Kingstar Tools Co., Ltd...............................            112.99
Liyang Flying Industry Co., Ltd.......................            112.99
Meridian International Co., Ltd.......................             27.13
Ningbo Better Design Industry Co., Ltd................            112.99
Ningbo Hualei Tool Co., Ltd...........................            112.99
Ningbo Jiufeng Electronic Tool........................            112.99
Ningbo Safewell International Holding Corp............             27.13
Ningbo Xiunan International Co., Ltd..................            112.99
Pinghu Chenda Storage Office Equipment Co., Ltd.......             27.13
Pooke Technology Co., Ltd.............................             27.13
Shanghai All[hyphen]Fast International Trade Co., Ltd.             27.13
Shanghai All[hyphen]Hop Industry Co., Ltd.............             27.13
Shanghai Delta International Trading..................            112.99
Shanghai Fairlong International Trading Co., Ltd......            112.99
Shanghai ITPC Hardware Co., Ltd.......................             27.13
Shanghai Legsteel Metal Products Co., Ltd.............            112.99
Shanghai Tung Hsing Technology Inc....................            112.99
Shining Golden Yida Welding & Cutting Machinery                   112.99
 Manufacture Ltd......................................
Suzhou Aomeijia Metallic Products Co., Ltd............            112.99
Suzhou Goldenline Machinery Co., Ltd..................            112.99
Suzhou Xindadi Hardware Co., Ltd......................             27.13
Taixing Hutchin Mfg. Co., Ltd.........................             27.13
Tong Ming Enterprise (Jiaxing) Co., Ltd...............            112.99
Trantex Product (Zhong Shan) Co., Ltd.................             27.13
Wuyi Yunlin Steel Products Co., Ltd...................            112.99
Yangzhou Huayu Pipe Fitting Co., Ltd..................            112.99
Yangzhou Triple Harvest Power Tools Limited...........             27.13
Zhangjiagang Houfeng Machinery Co., Ltd...............            112.99
Zhejiang KC Mechanical & Electrical...................            112.99
Zhejiang Zhenglian Corp...............................            112.99
Zhuhai Shichang Metals Ltd............................            112.99
All-Others............................................             27.13
------------------------------------------------------------------------

Suspension of Liquidation10
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    \10\ As discussed in the Preliminary Decision Memorandum, the 
Department has found the following companies to be cross-owned with 
Jiangsu Tongrun Equipment Technology Co., Ltd.: Changshu Jack 
Factory, Changshu Tongrun Taron Import and Export Co., Ltd., (also 
known as Changshu Tongrun Equipment Co., Ltd.), Changshu Tongrun 
Mechanical & Electrical Equipment Manufacture Co., Ltd., Changshu 
Taron Machinery Equipment Manufacturing Co., Ltd., and Changshu 
General Electrical Factory Co., Ltd.
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    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, the 
Department 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 section 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), 
the Department will instruct CBP to require a cash deposit equal to the 
rates indicated above.

Disclosure

    The Department intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, the Department intends 
to verify the information relied upon in making its final 
determination.

Public Comment

    Case briefs or other written comments 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 case 
briefs, may be submitted no later than five days after

[[Page 43334]]

the deadline date for case briefs.\11\ Pursuant to 19 CFR 351.309(c)(2) 
and (d)(2), parties who submit case briefs or rebuttal briefs in this 
investigation are encouraged to submit with each argument: (1) A 
statement of the issue; (2) a brief summary of the argument; and (3) a 
table of authorities.
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    \11\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    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 within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, the 
Department intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, the Department will 
notify the International Trade Commission (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.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

     Dated: September 8, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers certain metal tool chests 
and tool cabinets, with drawers, (tool chests and cabinets), from 
the People's Republic of China (the PRC) and the Socialist Republic 
of Vietnam (Vietnam). The scope covers all metal tool chests and 
cabinets, including top chests, intermediate chests, tool cabinets 
and side cabinets, storage units, mobile work benches, and work 
stations and that have the following physical characteristics:
    (1) A body made of carbon, alloy, or stainless steel and/or 
other metals;
    (2) two or more drawers for storage in each individual unit;
    (3) a width (side to side) exceeding 15 inches for side cabinets 
and exceeding 21 inches for all other individual units but not 
exceeding 60 inches;
    (4) a body depth (front to back) exceeding 10 inches but not 
exceeding 24 inches; and
    (5) prepackaged for retail sale.
    For purposes of this scope, the width parameter applies to each 
individual unit, i.e., each individual top chest, intermediate top 
chest, tool cabinet, side cabinet, storage unit, mobile work bench, 
and work station.
    Prepackaged for retail sale means the units may, for example, be 
packaged in a cardboard box, other type of container or packaging, 
and may bear a Universal Product Code, along with photographs, 
pictures, images, features, artwork, and/or product specifications. 
Subject tool chests and cabinets are covered whether imported in 
assembled or unassembled form. Subject merchandise includes tool 
chests and cabinets produced in the PRC or Vietnam but assembled, 
prepackaged for retail sale, or subject to other minor processing in 
a third country prior to importation into the United States. 
Similarly, it would include tool chests and cabinets produced in the 
PRC or Vietnam that are later found to be assembled, prepackaged for 
retail sale, or subject to other minor processing after importation 
into the United States.
    Subject tool chests and cabinets may also have doors and shelves 
in addition to drawers, may have handles (typically mounted on the 
sides), and may have a work surface on the top. Subject tool chests 
and cabinets may be uncoated (e.g., stainless steel), painted, 
powder coated, galvanized, or otherwise coated for corrosion 
protection or aesthetic appearance.
    Subject tool chests and cabinets may be packaged as individual 
units or in sets. When packaged in sets, they typically include a 
cabinet with one or more chests that stack on top of the cabinet. 
Tool cabinets act as a base tool storage unit and typically have 
rollers, casters, or wheels to permit them to be moved more easily 
when loaded with tools. Work stations and mobile work benches are 
tool cabinets with a work surface on the top that may be made of 
rubber, plastic, metal, wood, or other materials.
    Top chests are designed to be used with a tool cabinet to form a 
tool storage unit. The top chests may be mounted on top of the base 
tool cabinet or onto an intermediate chest. They are often packaged 
as a set with tool cabinets or intermediate chests, but may also be 
packaged separately. They may be packaged with mounting hardware 
(e.g., bolts) and instructions for assembling them onto the base 
tool cabinet or onto an intermediate tool chest which rests on the 
base tool cabinet. Smaller top chests typically have handles on the 
sides, while the larger top chests typically lack handles. 
Intermediate tool chests are designed to fit on top of the floor 
standing tool cabinet and to be used underneath the top tool chest. 
Although they may be packaged or used separately from the tool 
cabinet, intermediate chests are designed to be used in conjunction 
with tool cabinets. The intermediate chests typically do not have 
handles. The intermediate and top chests may have the capability of 
being bolted together.
    Side cabinets are designed to be bolted or otherwise attached to 
the side of the base storage cabinet to expand the storage capacity 
of the base tool cabinet.
    Subject tool chests and cabinets also may be packaged with a 
tool set included. Packaging a subject tool chest and cabinet with a 
tool set does not remove an otherwise covered subject tool chest and 
cabinet from the scope. When this occurs, the tools are not part of 
the subject merchandise.
    All tool chests and cabinets that meet the above definition are 
included in the scope unless otherwise specifically excluded.
    Excluded from the scope of the investigation are tool boxes, 
chests, and cabinets with bodies made of plastic, carbon fiber, 
wood, or other non-metallic substances.
    Also excluded from the scope of the investigation are industrial 
grade steel tool chests and cabinets. The excluded industrial grade 
steel tool chests and cabinets are those:
    (1) Having a body that is over 60 inches in width; or
    (2) having each of the following physical characteristics:
    (a) A body made of steel that is 0.047 inches or more in 
thickness;
    (b) a body depth (front to back) exceeding 21 inches; and
    (c) a unit weight that exceeds the maximum unit weight shown 
below for each width range:

------------------------------------------------------------------------
                                                                Maximum
                            Inches                               pounds
------------------------------------------------------------------------
                    Weight to width ratio tool chests
------------------------------------------------------------------------
21 > <= 25...................................................         90
25 > <= 28...................................................        115
28 > <= 30...................................................        120
30 > <= 32...................................................        130
32 > <= 34...................................................        140
34 > <= 36...................................................        150
36 > <= 38...................................................        160
38 > <= 40...................................................        170
40 > <= 42...................................................        180
42 > <= 44...................................................        190
44 > <= 46...................................................        200
46 > <= 48...................................................        210
48 > <= 50...................................................        220
50 > <= 52...................................................        230
52 > <= 54...................................................        240
54 > <= 56...................................................        250
56 > <= 58...................................................        260
58 > <= 60...................................................        270
------------------------------------------------------------------------
                   Weight to width ratio tool cabinets
------------------------------------------------------------------------
21 > <= 25...................................................        155
25 > <= 28...................................................        170
28 > <= 30...................................................        185
30 > <= 32...................................................        200
32 > <= 34...................................................        215
34 > <= 36...................................................        230
36 > <= 38...................................................        245

[[Page 43335]]

 
38 > <= 40...................................................        260
40 > <= 42...................................................        280
42 > <= 44...................................................        290
44 > <= 46...................................................        300
46 > <= 48...................................................        310
48 > <= 50...................................................        320
50 > <= 52...................................................        330
52 > <= 54...................................................        340
54 > <= 56...................................................        350
56 > <= 58...................................................        360
58 > <= 60...................................................        370
------------------------------------------------------------------------

    Also excluded from the scope of the investigation are service 
carts. The excluded service carts have all of the following 
characteristics:
    (1) Casters, wheels, or other similar devices which allow the 
service cart to be rolled from place to place;
    (2) A flat top or flat lid on top of the unit that opens;
    (3) a space or gap between the casters, wheels, or other similar 
devices, and the bottom of the enclosed storage space (e.g., 
drawers) of at least 10 inches; and
    (4) a total unit height, including casters, of less than 48 
inches.
    Also excluded from the scope of the investigation are non-mobile 
work benches. The excluded non-mobile work benches have all of the 
following characteristics:
    (1) a solid top working surface;
    (2) no drawers, one drawer, or two drawers in a side-by-side 
configuration; and
    (3) the unit is supported by legs and has no solid front, side, 
or back panels enclosing the body of the unit.
    Also excluded from the scope of the investigation are metal 
filing cabinets that are configured to hold hanging file folders and 
are classified in the Harmonized Tariff Schedule of the United 
States (HTSUS) at subheading 9403.10.0020.
    Merchandise subject to the investigation is classified under 
HTSUS categories 9403.20.0021, 9403.20.0026, 9403.20.0030 and 
7326.90.8688, but may also be classified under HTSUS category 
7326.90.3500. While HTSUS subheadings are provided for convenience 
and Customs purposes, the written description of the scope of this 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Application of the CVD Law to Imports From the PRC
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Calculation of the All-Others Rate
XII. ITC Notification
XIII. Conclusion

[FR Doc. 2017-19633 Filed 9-14-17; 8:45 am]
 BILLING CODE 3510-DS-P