[Federal Register Volume 83, Number 16 (Wednesday, January 24, 2018)]
[Notices]
[Pages 3299-3301]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01351]


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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: Countervailing Duty Order

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing the countervailing duty order on certain tool 
chests and cabinets (tool chests) from the People's Republic of China 
(China).

DATES: Applicable January 24, 2018.

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

    In accordance with section 705(d) of the Tariff Act of 1930, as 
amended (the Act), on November 29, 2017, Commerce published its 
affirmative final determination that countervailable subsidies are 
being provided to producers and exporters of tool chests from China.\1\
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    \1\ See Certain Tool Chests and Cabinets from the People's 
Republic of China: Final Affirmative Countervailing Duty 
Determination, 82 FR 56582 (November 29, 2017) (Final Determination) 
and accompanying Issues and Decision Memorandum.
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    On January 16, 2018, the ITC notified Commerce of its affirmative 
determination that an industry in the United States is materially 
injured within the meaning of section 705(b)(1)(A)(i) of the Act, by 
reason of subsidized imports of subject merchandise from China.\2\
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    \2\ See ITC Letter concerning imports of tool chests and 
cabinets from China, dated January 16, 2018 (ITC Letter).
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Scope of the Order

    The scope of this order covers tool chests from China. For a 
complete description of the scope of the order, see Appendix to this 
notice.

Countervailing Duty Order

    On January 16, 2018, in accordance with sections 705(b)(1)(A)(i) 
and 705(d) of the Act, the ITC notified Commerce of its final 
determination in this investigation, in which it found that an industry 
in the United States is materially injured by reason of imports of tool 
chests from China.\3\ Therefore, in accordance with section 705(c)(2) 
of the Act, Commerce is issuing this countervailing duty order. Because 
the ITC determined that imports of tool chests from China are 
materially injuring a U.S. industry, unliquidated entries of such 
merchandise from China, entered or withdrawn from warehouse for 
consumption, are subject to the assessment of countervailing duties.
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    \3\ See ITC Letter.
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    Therefore, in accordance with section 706(a) of the Act, Commerce 
will direct U.S. Customs and Border Protection (CBP) to assess, upon 
further instruction by Commerce, countervailing duties for all relevant 
entries of tool chests from China. Countervailing duties will be 
assessed on unliquidated entries of tool chests from China entered, or 
withdrawn from warehouse, for consumption on or after September 15, 
2017, the date of publication of the Preliminary Determination \4\ but 
will not include entries occurring after the expiration of the 
provisional measures period and before publication of the ITC's final 
injury determination as further described below.
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    \4\ 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.
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Suspension of Liquidation

    In accordance with section 706 of the Act, Commerce will instruct 
CBP to reinstitute the suspension of liquidation of tool chests from 
China. We will also instruct CBP to require, pursuant to section 
706(a)(1) of the Act, countervailing duties for each entry of the 
subject merchandise in an amount based on the net countervailable 
subsidy rates for the subject merchandise. These instructions 
suspending liquidation will remain in effect until further notice. The 
all-others rate applies to all producers and exporters of subject 
merchandise not listed in the following table.
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    \5\ As indicated in the Final Determination, Jiangsu Tongrun 
Equipment Technology Co., Ltd.'s cross-owned affiliates include the 
following entities: 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)
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Jiangsu Tongrun Equipment Technology Co., Ltd \5\.......           15.09
Zhongshan Geelong Manufacturing Co., Ltd................           14.03
Allround Hardware Co., Ltd..............................           95.96
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

[[Page 3300]]

 
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
------------------------------------------------------------------------

Provisional Measures

    Section 703(d) of the Act states that instructions issued pursuant 
to an affirmative preliminary determination may not remain in effect 
for more than four months. In the underlying investigation, Commerce 
published the Preliminary Determination on September 15, 2017. As such, 
the four-month period beginning on the date of the publication of the 
Preliminary Determination ended on January 12, 2018. Furthermore, 
section 707(b) of the Act states that definitive duties are to begin on 
the date of publication of the ITC's final injury determination.
    Therefore, in accordance with section 703(d) of the Act and our 
practice, we instructed CBP to terminate the suspension of liquidation 
and to liquidate, without regard to countervailing duties, unliquidated 
entries of tool chests from China entered, or withdrawn from warehouse, 
for consumption, after January 12, 2018, the date the provisional 
measures expired, until and through the day preceding the date of 
publication of the ITC's final injury determination in the Federal 
Register. Suspension of liquidation will resume on the date of 
publication of the ITC's final determination in the Federal Register.

Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to tool chests from China pursuant to section 706(a) of the Act. 
Interested parties can find a list of countervailing duty orders 
currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: January 19, 2018.
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

Scope of the Order

    The scope of this order 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 order 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 order 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:

------------------------------------------------------------------------
                         Inches                           Maximum pounds
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                    Weight to width ratio tool chests
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21 > <= 25..............................................              90
25 > <= 28..............................................             115
28 > <= 30..............................................             120

[[Page 3301]]

 
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
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                   Weight to width ratio tool cabinets
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21 > <= 25..............................................             155
25 > <= 28..............................................             170
28 > <= 30..............................................             185
30 > <= 32..............................................             200
32 > <= 34..............................................             215
34 > <= 36..............................................             230
36 > <= 38..............................................             245
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 order 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 order 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 order 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 order 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 
order is dispositive.

[FR Doc. 2018-01351 Filed 1-23-18; 8:45 a.m.]
 BILLING CODE 3510-DS-P