[Federal Register Volume 82, Number 228 (Wednesday, November 29, 2017)]
[Notices]
[Pages 56582-56586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25768]


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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: Final Affirmative Countervailing Duty 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 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. For information on the estimated 
subsidy rates, see the ``Final Determination'' section of this notice.

DATES: Applicable November 29, 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

[[Page 56583]]

Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone 
(202) 482-3477 or (202) 482-0410, respectively.

Background

    The Department published its affirmative Preliminary Determination 
on September 15, 2017.\1\ A summary of the events that occurred since 
the publication of 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\ 
The Issues and Decision Memorandum is a public document and is on file 
electronically via Enforcement and Compliance's Antidumping and 
Countervailing Duty (CVD) 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 Certain Tool Chests and Cabinets from the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination, 82 FR 43331 (September 15, 2017) (Preliminary 
Determination) and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final 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 (Issues 
and 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 the investigation, see 
Appendix I to this notice.

Scope Comments

    Since the Preliminary Determination, the Department received 
comments on the scope of this investigation from interested parties in 
this proceeding. See Issues and Decision Memorandum for further 
details. The scope in Appendix I reflects the final scope language.

Analysis of Subsidy Programs and Comments Received

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

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), in September 2017, the Department verified the subsidy 
information reported by the Government of China (GOC) and the 
respondents. We used standard verification procedures, including an 
examination of relevant accounting and production records, and original 
source documents provided by the GOC and the respondents.\3\
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    \3\ See Memorandum to the File, ``Verification of the 
Questionnaire Responses Submitted by Jiangsu Tongrun Equipment 
Technology Ltd.,'' dated October 10, 2017; Memorandum to the File, 
``Verification Report: Zhongshan Geelong Manufacturing Co. Ltd.,'' 
dated October 10, 2017; and Memorandum to the File, ``Verification 
Report: the Government of the People's Republic of China,'' dated 
October 10, 2017.
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Use of Adverse Facts Available

    In making this final determination, the Department relied, in part, 
on facts available. As discussed in the Issues and Decision Memorandum, 
because the GOC and companies that did not respond to our quantity-and-
value questionnaire did not act to the best of their abilities in 
responding to the Department's requests for information, we drew an 
adverse inference where appropriate in selecting from among the facts 
otherwise available, pursuant to section 776(a) and (b) of the Act.\4\ 
For further information, see the section ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the accompanying Issues and 
Decision Memorandum.
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    \4\ See Issues and Decision Memorandum at ``USE OF FACTS 
OTHERWISE AVAILABLE AND ADVERSE INFERENCES'' section.
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Changes Since the Preliminary Determination

    Based on our analysis of the information requested and received 
from the GOC and the company respondents since the Preliminary 
Determination, the results of verification, and the comments received 
from parties, we made certain changes to the subsidy rate calculations 
since the Preliminary Determination. For a discussion of these changes, 
see the Issues and Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
calculated a CVD rate for each individually-investigated producer/
exporter of the subject merchandise. Consistent with section 
705(c)(5)(A)(i) of the Act, we calculated an estimated ``all-others'' 
rate for exporters/producers not individually examined. Section 
705(c)(5)(A)(i) of the Act provides that the ``all-others'' rate shall 
be an amount equal to the weighted-average of the countervailable 
subsidy rates established for individually investigated exporters/
producers, excluding any rates that are zero or de minimis or any rates 
determined entirely under section 776 of the Act. Neither of the 
mandatory respondents' rates in this final determination was zero or de 
minimis or based entirely on facts otherwise available. Accordingly, in 
order to ensure that business proprietary information is not disclosed, 
we calculated the all-others rate using a weighted average of the 
individual countervailable subsidy rates calculated for the examined 
respondents using each company's publicly-ranged values for the 
merchandise under consideration.\5\
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    \5\ See Memorandum to the File, ``Calculation of the All-Others 
Rate,'' dated concurrently with this final determination.
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Final Determination

    We determine the total estimated countervailable subsidy rates to 
be: \6\
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    \6\ As discussed in the Issues and Decision Memorandum, the 
Department 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.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Jiangsu Tongrun Equipment Technology Co., Ltd...........           15.09
Zhongshan Geelong Manufacturing Co., Ltd................           14.03
Allround Hardware Co., Ltd..............................           95.96

[[Page 56584]]

 
Beijing Kang Jie Kong International Cargo Agent Co., Ltd           95.96
Changshu Zhongcheng Tool Box Co., Ltd...................           14.39
Changzhou City Hongfei Metalwork Corporation............           95.96
Changzhou Machan Steel Furniture Co., Ltd...............           14.39
China National Electronics Import and Export Ningbo Co..           95.96
Foshan Lishida Metal Products Co., Ltd..................           95.96
Gem-Year Industrial Co., Ltd............................           95.96
Guangdong Hisense Home Appliances Co., Ltd..............           14.39
Guerjie Enterprise Co., Ltd.............................           95.96
Haiyan Dingfeng Fasteners Ltd...........................           95.96
Hangzhou Xiaoshan Import and Export Trading Co., Ltd....           95.96
Hyxion Metal Industry...................................           14.39
Jiaxing Pinyou Import & Export Co., Ltd.................           95.96
Jin Rong Hua Le Metal Manufactures Co., Ltd.............           14.39
Jinhua JG Tools Manufacturing Co........................           14.39
Jinhua Yahu Tools Co., Ltd..............................           14.39
Keesung Manufacturing Co., Ltd..........................           14.39
Kingstar Tools Co., Ltd.................................           95.96
Liyang Flying Industry Co., Ltd.........................           95.96
Meridian International Co., Ltd.........................           14.39
Ningbo Better Design Industry Co., Ltd..................           95.96
Ningbo Hualei Tool Co., Ltd.............................           95.96
Ningbo Jiufeng Electronic Tools.........................           95.96
Ningbo Safewell International Holding Corp..............           14.39
Ningbo Xiunan International Co., Ltd....................           95.96
Pinghu Chenda Storage Office Equipment Co., Ltd.........           14.39
Pooke Technology Co., Ltd...............................           14.39
Shanghai All[hyphen]Fast International Trade Co., Ltd...           14.39
Shanghai All[hyphen]Hop Industry Co., Ltd...............           14.39
Shanghai Delta International Trading....................           95.96
Shanghai Fairlong International Trading Co., Ltd........           95.96
Shanghai ITPC Hardware Co., Ltd.........................           14.39
Shanghai Legsteel Metal Products Co., Ltd...............           95.96
Shanghai Tung Hsing Technology Inc......................           95.96
Shining Golden Yida Welding & Cutting Machinery                    95.96
 Manufacture Ltd........................................
Suzhou Aomeijia Metallic Products Co., Ltd..............           95.96
Suzhou Goldenline Machinery Co., Ltd....................           95.96
Suzhou Xindadi Hardware Co., Ltd........................           14.39
Taixing Hutchin Mfg. Co., Ltd...........................           14.39
Tong Ming Enterprise (Jiaxing) Co., Ltd.................           95.96
Trantex Product (Zhong Shan) Co., Ltd...................           14.39
Wuyi Yunlin Steel Products Co., Ltd.....................           95.96
Yangzhou Huayu Pipe Fitting Co., Ltd....................           95.96
Yangzhou Triple Harvest Power Tools Limited.............           14.39
Zhangjiagang Houfeng Machinery Co., Ltd.................           95.96
Zhejiang KC Mechanical & Electrical.....................           95.96
Zhejiang Zhenglian Corp.................................           95.96
Zhuhai Shichang Metals Ltd..............................           95.96
All-Others..............................................           14.39
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Disclosure

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

Continuation of Suspension of Liquidation

    In accordance with section 703(d) of the Act, we will instruct U.S. 
Customs and Border Protection (CBP) to continue to suspend liquidation 
of all appropriate entries of tool chests from the PRC, as described in 
Appendix I of this notice, which were entered, or withdrawn from 
warehouse, for consumption on or after September 15, 2017, the date of 
the publication of the Preliminary Determination in the Federal 
Register. Furthermore, we will instruct CBP to require a cash deposit 
for such entries of merchandise in the amounts indicated above, 
pursuant to section 705(c)(1)(B)(ii) of the Act.

U.S. International Trade Commission (ITC) Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final affirmative CVD determination. In addition, we are 
making available to the ITC all non-privileged and non-proprietary 
information relating 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.
    If the ITC determines that material injury, or threat of material 
injury, does not exist, this proceeding will be terminated and all cash 
deposits will be refunded. If the ITC determines that such injury does 
exist, we will issue a CVD order directing CBP to assess, upon further 
instruction by the Department, CVDs 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, as discussed 
above in the

[[Page 56585]]

``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders (APOs)

    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 that is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act.

    Dated: November 22, 2017.
Carole Showers,
Executive Director, Office of Policy performing the duties of the 
Deputy 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 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:

------------------------------------------------------------------------
     Weight to width ratio tool chests       Weight to width ratio tool
-------------------------------------------           cabinets
                                           -----------------------------
             Inches               Maximum                        Maximum
                                   pounds         Inches         pounds
------------------------------------------------------------------------
21> <=25.......................        90   21> <=25..........       155
25> <=28.......................       115   25> <=28..........       170
28> <=30.......................       120   28> <=30..........       185
30> <=32.......................       130   30> <=32..........       200
32> <=34.......................       140   32> <=34..........       215
34> <=36.......................       150   34> <=36..........       230
36> <=38.......................       160   36> <=38..........       245
38> <=40.......................       170   38> <=40..........       260
40> <=42.......................       180   40> <=42..........       280
42> <=44.......................       190   42> <=44..........       290
44> <=46.......................       200   44> <=46..........       300
46> <=48.......................       210   46> <=48..........       310
48> <=50.......................       220   48> <=50..........       320
50> <=52.......................       230   50> <=52..........       330
52> <=54.......................       240   52> <=54..........       340
54> <=56.......................       250   54> <=56..........       350
56> <=58.......................       260   56> <=58..........       360
58> <=60.......................       270   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) an open top for storage, 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 Issues and Decision Memorandum

I. Summary

[[Page 56586]]

II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Application of the Countervailing Duty Law to Imports from the 
PRC
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Analysis of Comments
    Comment 1: Whether to Countervail Steel Inputs Not Purchased in 
Coils
    Comment 2: Whether Certain Steel Producers Are Authorities
    Comment 3: Whether Steel Suppliers That Are Trading Companies 
Are Authorities
    Comment 4: Whether the Provision of Steel Coils is Specific
    Comment 5: Whether to Use Certain Sources as Benchmarks for 
Steel Inputs
    Comment 6: What to Use as Benchmark for Certain of Geelong's 
Steel Purchases
    Comment 7: Whether to Use a Certain Source as a Benchmark for 
Ocean Freight
    Comment 8: Whether to Countervail Export Buyer's Credits
    Comment 9: Whether to Apply Adverse Facts Available With Respect 
to the Government of China's Response Regarding Electricity
    Comment 10: Whether the Department's Selection of Electricity 
Rates Was Proper
    Comment 11: Whether to Countervail Certain Tongrun ``Other 
Subsidies''
XI. Recommendation

[FR Doc. 2017-25768 Filed 11-28-17; 8:45 am]
 BILLING CODE 3510-DS-P