[Federal Register Volume 82, Number 214 (Tuesday, November 7, 2017)]
[Notices]
[Pages 51605-51607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24183]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-900]


Diamond Sawblades and Parts Thereof From the People's Republic of 
China: Initiation and Preliminary Results of Antidumping Duty Changed 
Circumstances Review

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

SUMMARY: The Department of Commerce is simultaneously initiating and 
issuing the preliminary results of a changed circumstances review of 
the antidumping duty order on diamond sawblades and parts thereof from 
the People's Republic of China to determine whether Chengdu Huifeng New 
Material Technology Co., Ltd. is the successor-in-interest to Chengdu 
Huifeng Diamond Tools Co., Ltd. Based on the information on the record, 
we preliminarily determine that Chengdu Huifeng New Material Technology 
Co., Ltd. is the successor-in-interest to Chengdu Huifeng Diamond Tools 
Co., Ltd. for purposes of determining antidumping duty liability. We 
invite interested parties to comment on these preliminary results.

DATES: Applicable November 7, 2017.

FOR FURTHER INFORMATION CONTACT: Yang Jin Chun, 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) 482-5760.

SUPPLEMENTARY INFORMATION: 

Background

    The Department published the antidumping duty order on diamond 
sawblades and parts thereof from the People's Republic of China on 
November 4, 2009.\1\ In its September 20, 2017, request for a changed 
circumstances review, Chengdu Huifeng New Material Technology Co., 
Ltd., informed the Department that, effective August 16, 2016, Chengdu 
Huifeng Diamond Tools Co., Ltd. (1) changed its legal status from a 
limited liability company to a joint-stock limited company and (2) 
changed its name to Chengdu Huifeng New Material Technology Co., 
Ltd.\2\ Chengdu Huifeng Diamond Tools Co., Ltd., is a respondent in the 
ongoing administrative review of the same order covering the period 
November 1, 2015, through October 31, 2016.\3\ Pursuant to section 
751(b) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 
351.216(c) and 19 CFR 351.221(c)(3), Chengdu Huifeng New Material 
Technology Co., Ltd. requested that the Department initiate an 
expedited changed circumstances review and determine that Chengdu 
Huifeng New Material Technology Co., Ltd. is the successor-in-interest 
to Chengdu Huifeng Diamond Tools Co., Ltd.
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    \1\ See Diamond Sawblades and Parts Thereof from the People's 
Republic of China and the Republic of Korea: Antidumping Duty 
Orders, 74 FR 57145 (November 4, 2009).
    \2\ See Chengdu Huifeng New Material Technology Co., Ltd.'s 
request for a changed circumstances review dated September 20, 2017 
(CCR Request).
    \3\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 82 FR 4294 (January 13, 2017) (Initiation 
Notice).
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Scope of the Order

    The products covered by the order are all finished circular 
sawblades, whether slotted or not, with a working part that is 
comprised of a diamond segment or segments, and parts thereof, 
regardless of specification or size, except as specifically excluded 
below. Within the scope of the order are semifinished diamond 
sawblades, including diamond sawblade cores and diamond sawblade 
segments. Diamond sawblade cores are circular steel plates, whether or 
not attached to non-steel plates, with slots. Diamond sawblade cores 
are manufactured principally, but not exclusively, from alloy steel. A 
diamond sawblade segment consists of a mixture of diamonds (whether 
natural or

[[Page 51606]]

synthetic, and regardless of the quantity of diamonds) and metal 
powders (including, but not limited to, iron, cobalt, nickel, tungsten 
carbide) that are formed together into a solid shape (from generally, 
but not limited to, a heating and pressing process).
    Sawblades with diamonds directly attached to the core with a resin 
or electroplated bond, which thereby do not contain a diamond segment, 
are not included within the scope of the order. Diamond sawblades and/
or sawblade cores with a thickness of less than 0.025 inches, or with a 
thickness greater than 1.1 inches, are excluded from the scope of the 
order. Circular steel plates that have a cutting edge of non-diamond 
material, such as external teeth that protrude from the outer diameter 
of the plate, whether or not finished, are excluded from the scope of 
the order. Diamond sawblade cores with a Rockwell C hardness of less 
than 25 are excluded from the scope of the order. Diamond sawblades 
and/or diamond segment(s) with diamonds that predominantly have a mesh 
size number greater than 240 (such as 250 or 260) are excluded from the 
scope of the order. Merchandise subject to the order is typically 
imported under heading 8202.39.00.00 of the Harmonized Tariff Schedule 
of the United States (HTSUS). When packaged together as a set for 
retail sale with an item that is separately classified under headings 
8202 to 8205 of the HTSUS, diamond sawblades or parts thereof may be 
imported under heading 8206.00.00.00 of the HTSUS. On October 11, 2011, 
the Department included the 6804.21.00.00 HTSUS classification number 
to the customs case reference file, pursuant to a request by U.S. 
Customs and Border Protection (CBP).\4\ The tariff classification is 
provided for convenience and customs purposes; however, the written 
description of the scope of the order is dispositive.
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    \4\ See Diamond Sawblades and Parts Thereof from the Republic of 
Korea: Preliminary Results of Antidumping Duty Administrative 
Review, 76 FR 76128, 76130 (December 6, 2011).
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Initiation of Changed Circumstances Review

    Pursuant to section 751(b)(1) of the Act and 19 CFR 351.216(d), the 
Department will conduct a changed circumstances review upon receipt of 
a request from an interested party or receipt of information concerning 
an antidumping duty order which shows changed circumstances sufficient 
to warrant a review of the order. In the past, the Department has used 
changed circumstances reviews to address the applicability of cash 
deposit rates after there have been changes in the name or structure of 
a respondent, such as a merger or spinoff (``successor-in-interest,'' 
or ``successorship,'' determinations).\5\ Based on the request from 
Chengdu Huifeng New Material Technology Co., Ltd., and in accordance 
with section 751(b)(1) of Act and 19 CFR 351.216(b), we are initiating 
a changed circumstances review to determine whether Chengdu Huifeng New 
Material Technology Co., Ltd. is the successor-in-interest to Chengdu 
Huifeng Diamond Tools Co., Ltd. for purposes of antidumping duty 
liability.
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    \5\ See, e.g., Crystalline Silicon Photovoltaic Celols, Whether 
or Not Assembled Into Modules, from the People's Republic of China: 
Final Results of Changed Circumstances Review, 81 FR 91909 (December 
19, 2016).
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Preliminary Results of Changed Circumstances Review

    If we conclude that an expedited action is warranted, we may 
combine the notices of initiation and preliminary results of a changed 
circumstances review under 19 CFR 351.221(c)(3)(ii). The Department has 
combined the notice of initiation and preliminary results in successor-
in-interest cases when sufficient documentation has been provided 
supporting the request to make a preliminary determination.\6\ In this 
instance, we have on the record the information necessary to make a 
preliminary finding. Thus, we find that expedited action is warranted 
and have combined the notices of initiation and preliminary results 
pursuant to 19 CFR 351.221(c)(3)(ii).
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    \6\ See, e.g., Initiation and Preliminary Results of Antidumping 
Duty Changed Circumstances Review: Crystalline Silicon Photovoltaic 
Cells, Whether or Not Assembled Into Modules, from the People's 
Republic of China, 81 FR 76561 (November 3, 2016).
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    In making a successor-in-interest determination for purposes of 
antidumping duty liability, the Department examines several factors 
including, but not limited to, changes in management, production 
facilities, supplier relationships, and customer base.\7\ While no 
single factor or combination of these factors will necessarily provide 
a dispositive indication of a successor-in-interest relationship, the 
Department will generally consider the new company to be the successor 
to the previous company if the new company's operations are not 
materially dissimilar to those of its predecessor.\8\ Thus, if the 
evidence demonstrates that, with respect to the production and sales of 
the subject merchandise, the new company operates as essentially the 
same business entity as the former company, the Department will accord 
the new company the same antidumping treatment as its predecessor.\9\
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    \7\ See, e.g., Pressure Sensitive Plastic Tape from Italy: 
Preliminary Results of Antidumping Duty Changed Circumstances 
Review, 75 FR 8925 (February 26, 2010), unchanged in Pressure 
Sensitive Plastic Tape from Italy: Final Results of Antidumping Duty 
Changed Circumstances Review, 75 FR 27706 (May 18, 2010); and Brake 
Rotors from the People's Republic of China: Final Results of Changed 
Circumstances Antidumping Duty Administrative Review, 70 FR 69941 
(November 18, 2005) (Brake Rotors), citing Brass Sheet and Strip 
from Canada; Final Results of Antidumping Duty Administrative 
Review, 57 FR 20460 (May 13, 1992).
    \8\ See, e.g., Brake Rotors.
    \9\ Id. See also, e.g., Notice of Initiation and Preliminary 
Results of Antidumping Duty Changed Circumstances Review: Certain 
Frozen Warmwater Shrimp from India, 77 FR 64953 (October 24, 2012), 
unchanged in Final Results of Antidumping Duty Changed Circumstances 
Review: Certain Frozen Warmwater Shrimp from India, 77 FR 73619 
(December 11, 2012).
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    In its CCR Request and Supplemental Response,\10\ Chengdu Huifeng 
New Material Technology Co., Ltd. has provided evidence for us to 
preliminarily determine that it is the successor-in-interest to Chengdu 
Huifeng Diamond Tools Co., Ltd. Chengdu Huifeng New Material Technology 
Co., Ltd. states that its management, production facilities, and 
customer/supplier relationships have not changed as a result of changes 
to the legal status and name of the company.\11\ Chengdu Huifeng New 
Material Technology Co., Ltd., provided documents showing changes to 
the legal status and name of the company.\12\ Further, Chengdu Huifeng 
New Material Technology Co., Ltd., provided documents demonstrating 
that its production facilities and their location and domestic and 
overseas customers and suppliers were the same before and after the 
changes to the company's legal status and name.\13\ Chengdu Huifeng New 
Material Technology Co., Ltd. also provided a list of members of the 
management team and supporting documentation indicating that Chengdu 
Huifeng Diamond Tools Co., Ltd.'s managers hold the same positions in 
Chengdu Huifeng New Material Technology Co., Ltd., as well as 
documentation showing nominal changes to the members of the board of 
directors made as a result of internal

[[Page 51607]]

shifts among existing management and board members.\14\
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    \10\ See CCR Request and Chengdu Huifeng New Material Technology 
Co., Ltd.'s supplemental response dated October 10, 2017 
(Supplemental Response).
    \11\ Id.
    \12\ See, e.g., CCR Request at Exhibits 1, 2, 8, and 9.
    \13\ See CCR Request at Exhibits 1 through 6, and Supplemental 
Response at 1 and Exhibits S1-1, S1-2, S1-3, and S1-5.
    \14\ See CCR Request at Exhibit 3, 7, and 8, and Supplemental 
Response at Exhibit S1-4.
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    Based on record evidence, we preliminarily determine that Chengdu 
Huifeng New Material Technology Co., Ltd. is the successor-in-interest 
to Chengdu Huifeng Diamond Tools Co., Ltd. for purposes of antidumping 
duty liability because the changes to the legal status and name of the 
company resulted in no significant changes to management, production 
facilities, supplier relationships, or customers. As a result, we 
preliminarily determine that Chengdu Huifeng New Material Technology 
Co., Ltd. operates as essentially the same business entity as Chengdu 
Huifeng Diamond Tools Co., Ltd. Thus, we preliminarily determine that 
Chengdu Huifeng New Material Technology Co., Ltd. should receive the 
same antidumping duty cash deposit rate with respect to the subject 
merchandise as Chengdu Huifeng Diamond Tools Co., Ltd., its predecessor 
company.
    If these preliminary results are adopted in our final results of 
this changed circumstances review, effective on the publication date of 
our final results, we will instruct CBP to suspend liquidation of 
entries of subject merchandise exported by Chengdu Huifeng New Material 
Technology Co., Ltd. at Chengdu Huifeng Diamond Tools Co., Ltd.'s cash 
deposit rate.

Public Comment

    Interested parties may submit case briefs no later than 14 days 
after the publication of this notice.\15\ Rebuttal briefs, which must 
be limited to issues raised in case briefs, may be filed not later than 
five days after the deadline for filing case briefs.\16\ Parties who 
submit case briefs or rebuttal briefs in this changed circumstance 
review are requested to submit with each argument: (1) A statement of 
the issue; (2) a brief summary of the argument; and (3) a table of 
authorities. Interested parties that wish to request a hearing must 
submit a written request to the Assistant Secretary for Enforcement and 
Compliance, filed electronically via ACCESS, within 14 days of 
publication of this notice.\17\ The hearing request should contain: (1) 
The party's name, address, and telephone number; (2) the number of 
participants; and (3) a list of the issues to be discussed. Oral 
presentations at the hearing will be limited to issues raised in the 
briefs. If a request for a hearing is made, parties will be notified of 
the time and date for the hearing to be held at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230 in a room 
to be determined. Parties will be notified of the time and date of any 
hearing, if requested.\18\
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    \15\ See 19 CFR 351.309(c)(1)(ii). (``Any interested party may 
submit a `case brief ' within . . . 30 days after the date of 
publication of the preliminary results of {a changed 
circumstances{time}  review, unless the Secretary alters the time 
limit. . . .'') (Emphasis added).
    \16\ See 19 CFR 351.309(d).
    \17\ See 19 CFR 351.310(c) (``Any interested party may request 
that the Secretary hold a public hearing on arguments to be raised 
in case or rebuttal briefs within 30 days after the date of 
publication of the . . . preliminary results of review, unless the 
Secretary alters this time limit. . . .'') (Emphasis added). See 
also 19 CFR 351.303 for general filing requirements.
    \18\ See 19 CFR 351.310.
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    All submissions, with limited exceptions, must be filed 
electronically using Enforcement and Compliance's Antidumping and 
Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at http://access.trade.gov. An 
electronically-filed document must be received successfully in its 
entirety by no later than 5:00 p.m. Eastern Time on the date the 
document is due.

Notifications to Interested Parties

    Consistent with 19 CFR 351.216(e), we intend to issue the final 
results of this changed circumstances review no later than 270 days 
after the date on which this review was initiated, or within 45 days 
after the publication of the preliminary results if all parties in this 
review agree to our preliminary results. The final results will include 
the Department's analysis of issues raised in any written comments.
    We are issuing and publishing this initiation and preliminary 
results notice in accordance with sections 751(b)(1) and 777(i)(1) of 
the Act, 19 CFR 351.216(b) and (d), and 19 CFR 351.221(c)(3).

    Dated: November 1, 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.
[FR Doc. 2017-24183 Filed 11-6-17; 8:45 am]
 BILLING CODE 3510-DS-P