[Federal Register Volume 83, Number 69 (Tuesday, April 10, 2018)]
[Notices]
[Pages 15365-15368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07315]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-056]


Certain Tool Chests and Cabinets From the People's Republic of 
China: Final Affirmative Determination of Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that imports 
of certain tool chests and cabinets (tool chests) from the People's 
Republic of China (China) are being, or are likely to be, sold in the 
United States at less than fair value (LTFV). The final dumping margins 
of sales at LTFV are listed in the ``Final Determination'' section of 
this notice.

DATES: Applicable April 10, 2018.

FOR FURTHER INFORMATION CONTACT: Yang Jin Chun or Andre Gziryan, 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 and (202) 482-2201, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce published the Preliminary Determination in the LTFV 
investigation of tool chests from China on November 16, 2017.\1\ For a 
complete description of the events that followed the Preliminary 
Determination, see the Issues and Decision Memorandum dated 
concurrently with, and hereby adopted by, this notice.\2\
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    \1\ See Certain Tool Chests and Cabinets from the People's 
Republic of China: Preliminary Affirmative Determination of Sales at 
Less Than Fair Value, Postponement of Final Determination, and 
Extension of Provisional Measures, 82 FR 53456 (November 16, 2017) 
(Preliminary Determination) and accompanying Preliminary Decision 
Memorandum.
    \2\ See the Memorandum, ``Certain Tool Chests and Cabinets from 
the People's Republic of China: Issues and Decision Memorandum for 
the Final Affirmative Determination of Sales at Less Than Fair 
Value,'' dated concurrently with and hereby adopted by this notice 
(Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is October 1, 2016, through March 31, 
2017.

Scope of the Investigation

    The products covered by this investigation are tool chests from 
China. For a full description of the scope of this investigation, see 
the ``Scope of the Investigation'' in Appendix I of this notice.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by parties in this investigation are addressed in the Issues 
and Decision Memorandum. A list of issues raised is attached to this 
notice at Appendix II. The Issues and Decision Memorandum is a public 
document and is made available to the public 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 to all parties in Commerce's 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 on the internet at http://enforcement.trade.gov/frn/.

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), we verified the U.S. sales and factors of production 
information submitted by the Tongrun Single Entity \3\ in December 2017 
and January 2018.\4\ We used standard verification procedures, 
including an examination of relevant accounting and production records, 
and original source documents provided by the Tongrun Single Entity. 
Because Geelong Sales (Macao Commercial Offshore) Limited (Geelong), 
the other mandatory respondent in this investigation, informed Commerce 
that it would not participate in the

[[Page 15366]]

verification, Commerce did not conduct a verification of Geelong's 
responses.
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    \3\ The Tongrun Single Entity is comprised of Jiangsu Tongrun 
Equipment Technology Co., Ltd., Changshu Taron Machinery Equipment 
Manufacturing Co., Ltd., Changshu Tongrun Mechanical & Electrical 
Equipment Manufacture Co., Ltd., and Shanghai Tongrun Import and 
Export Co., Ltd. See Preliminary Results, 82 FR at 53457, n.10, and 
accompanying Preliminary Decision Memorandum at 5-7.
    \4\ See the Reports, ``Less-Than-Fair-Value Investigation of 
Certain Tool Chests and Cabinets from the People's Republic of 
China: Verification of the Export Price Sales and Factors of 
Production Response of the Tongrun Single Entity,'' and ``Less-Than-
Fair-Value Investigation of Certain Tool Chests and Cabinets from 
the People's Republic of China: Verification of the Constructed 
Export Price Sales Response of the Tongrun Single Entity,'' dated 
January 18, 2018.
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China-Wide Entity and Use of Adverse Facts Available

    Geelong has prevented Commerce from conducting verification of its 
questionnaire responses, including its claim that it is a wholly 
foreign-owned company. Therefore, we find that Geelong has failed to 
demonstrate its eligibility for a separate rate and is considered part 
of the China-wide entity. We continue to find that the use of facts 
available is warranted in determining the rate of the China-wide entity 
pursuant to section 776(a)(1) and (a)(2)(A)-(C) of the Act.\5\ Further, 
use of facts available is also warranted pursuant to sections 
776(a)(2)(C)-(D) of the Act because, by refusing to allow us to conduct 
verifications, Geelong, which is part of the China-wide entity, 
significantly impeded the proceeding, as Geelong's questionnaire 
responses and data could not be verified.
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    \5\ See Preliminary Determination and accompanying Preliminary 
Decision Memorandum at 18-21.
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    Further, we found that the China-wide entity, which includes 
Geelong and other uncooperative respondents, did not cooperate to the 
best of its ability to comply with our requests for information and, 
accordingly, we determined it appropriate to apply adverse inferences 
in selecting from the facts available, pursuant to section 776(b) of 
the Act and 19 CFR 351.308(a).

Changes From the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to our dumping margin calculation 
for the Tongrun Single Entity.\6\ We also found that Geelong is part of 
the China-wide entity and, consistent with our Preliminary 
Determination, determined to base the China-wide entity's dumping 
margin on total adverse facts available. We relied on the highest 
control-number-specific dumping margin calculated for Geelong in the 
Preliminary Determination to determine the rate for the China-wide 
entity of 244.29 percent.\7\
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    \6\ See Issues and Decision Memorandum for a discussion of these 
changes.
    \7\ Id. at Comment 1 for a full discussion of this issue.
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Combination Rates

    Consistent with Preliminary Determination \8\ and Policy Bulletin 
05.1,\9\ Commerce calculated combination rates for the respondents that 
are eligible for a separate rate in this investigation.
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    \8\ See Preliminary Determinations, 82 FR at 53457-58.
    \9\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' dated April 5, 2005 (Policy Bulletin 05.1), available 
on Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Final Determination

    Commerce determines that the following weighted-average dumping 
margins exist:

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                                                                                     Estimated
                                                                                     weighted-     adjusted cash
                  Exporter                                 Producer                   average      deposit rate
                                                                                  dumping margin     (percent)
                                                                                     (percent)
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The Tongrun Single Entity..................  Changshu City Jiangrun Metal                  97.11           93.94
                                              Product Co., Ltd.
The Tongrun Single Entity..................  The Tongrun Single Entity..........           97.11           93.94
Changzhou Machan Steel Furniture Co., Ltd..  Changzhou Machan Steel Furniture              97.11           93.94
                                              Co., Ltd.
Guangdong Hisense Home Appliances Co., Ltd.  Guangdong Hisense Home Appliances             97.11           93.94
                                              Co., Ltd.
Hyxion Metal Industry......................  Hyxion Metal Industry..............           97.11           93.94
Jin Rong Hua Le Metal Manufactures Co., Ltd  Jin Rong Hua Le Metal Manufactures            97.11           93.94
                                              Co., Ltd.
Ningbo Safewell International Holding Corp.  Zhejiang Xiunan Leisure Products              97.11           93.94
                                              Co., Ltd.
Pinghu Chenda Storage Office Equipment Co.,  Pinghu Chenda Storage Office                  97.11           93.94
 Ltd.                                         Equipment Co., Ltd.
Pooke Technology Co., Ltd..................  Pooke Technology Co., Ltd..........           97.11           93.94
Shanghai All-Fast International Trade Co.,   Kunshan Trusteel Industry Co. Ltd..           97.11           93.94
 Ltd.
Shanghai All-Fast International Trade Co.,   Shanghai All-Hop Industry Co., Ltd.           97.11           93.94
 Ltd.
Shanghai All-Fast International Trade Co.,   Shanghai Hom-Steel Industry Co.,              97.11           93.94
 Ltd.                                         Ltd.
Shanghai All-Hop Industry Co., Ltd.........  Shanghai All-Hop Industry Co., Ltd.           97.11           93.94
Trantex Product (Zhong Shan) Co., Ltd......  Trantex Product (Zhong Shan) Co.,             97.11           93.94
                                              Ltd.
China-Wide Entity..........................  ...................................          244.29          241.12
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Disclosure

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

Continuation of Suspension of Liquidation

    In accordance with sections 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of tool chests from China, as 
described in Appendix I of this notice, which were entered, or 
withdrawn from warehouse, for consumption on or after November 16, 
2017, the date of publication of the Preliminary Determination of this 
investigation in the Federal Register.
    Pursuant to 19 CFR 351.210(d), upon the publication of this notice, 
Commerce will instruct CBP to require a cash deposit \10\ equal to the 
weighted-average amount by which the normal value exceeds U.S. price as 
follows: (1) The cash deposit rate for the exporter/producer 
combinations listed in the table above will be the rate identified in 
the table; (2) for all combinations of Chinese exporters/producers of 
merchandise under consideration that have not received their own 
separate rate above, the cash-deposit rate will be the cash deposit 
rate established for the China-wide entity; and (3) for all non-Chinese 
exporters of merchandise under consideration which have not received 
their own separate rate above, the cash-deposit rate will be the cash 
deposit rate applicable to the Chinese exporter/producer combination 
that supplied that non-Chinese exporter. These suspension of 
liquidation instructions will remain in effect until further notice.
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    \10\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).

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[[Page 15367]]

    Commerce published the countervailing duty order in the concurrent 
countervailing duty investigation of tool chests from China.\11\ 
Therefore, we have adjusted the cash deposit rates by deducting 
applicable estimated domestic subsidy pass-through rates from the final 
margins. For the Tongrun Single Entity, the non-selected respondents 
eligible for a separate rate, and the China-wide entity, the applicable 
estimated domestic subsidy pass-through constitutes 3.17 percent.\12\ 
In the final determination of the concurrent countervailing duty 
investigation, we made no findings that any of the programs are export-
contingent.\13\ Therefore, we did not deduct export subsidies from the 
final margins. Accordingly, the cash deposit rates are 93.94 percent 
for the Tongrun Single Entity and the non-selected respondents eligible 
for a separate rate, and 241.12 percent for the China-wide entity.
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    \11\ See Certain Tool Chests and Cabinets from the People's 
Republic of China: Countervailing Duty Order, 83 FR 3299 (January 
24, 2018). See also Certain Tool Chests and Cabinets from the 
People's Republic of China: Final Affirmative Countervailing Duty 
Determination, 82 FR 56582 (November 29, 2017) (Tool Chests China 
CVD Final) and accompanying Issues and Decision Memorandum.
    \12\ See Tool Chests China CVD Final and accompanying Issues and 
Decision Memorandum at 9-10. See also the Memorandum, ``Certain Tool 
Chests and Cabinets from the People's Republic of China: Final 
Double Remedy Memorandum,'' dated concurrently with this notice at 
Attachment 1 for our calculations of the estimated domestic subsidy 
pass-through rates.
    \13\ See Tool Chests China CVD Final and accompanying Issues and 
Decision Memorandum. See also, e.g., Circular Welded Carbon-Quality 
Steel Pipe from Pakistan: Affirmative Preliminary Determination of 
Sales at Less Than Fair Value and Postponement of Final 
Determination and Extension of Provisional Measures, 81 FR 36867 
(June 8, 2016), and accompanying Preliminary Decision Memorandum at 
13, unchanged in Circular Welded Carbon-Quality Steel Pipe from 
Pakistan: Final Affirmative Determination of Sales at Less Than Fair 
Value, 81 FR 75028 (October 28, 2016).
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International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of our final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of subject 
merchandise from China no later than 45 days after our final 
determination. If the ITC determines that such injury does not exist, 
this proceeding will be terminated and all securities posted will be 
refunded or canceled. If the ITC determines that such injury does 
exist, Commerce will issue an antidumping duty order directing CBP to 
assess, upon further instruction by Commerce, antidumping duties 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.

Notification Regarding Administrative Protective Order

    This notice will serve as a reminder to the parties subject to 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of 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 sanctionable violation.
    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: April 3, 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 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 (China). 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 China 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 China 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

[[Page 15368]]

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:
[GRAPHIC] [TIFF OMITTED] TN10AP18.003

    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 a 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 this 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 this investigation is classified under 
HTSUS categories 9403.20.0021, 9403.20.0026, 9403.20.0030, 
9403.20.0080, 9403.20.0090, and 7326.90.8688, but may also be 
classified under HTSUS category 7326.90.3500.\14\ While HTSUS 
subheadings are provided for convenience and Customs purposes, the 
written description of the scope of this investigation is 
dispositive.
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    \14\ On February 8, 2018, Commerce included HTSUS subheadings 
9403.20.0080 and 9403.20.0090 to the case reference files, pursuant 
to requests by CBP. See the Memorandum, ``Requests from Customs and 
Border Protection to Update the ACE Case Reference File,'' dated 
February 8, 2018.
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Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Surrogate Country
V. Separate Rates
VI. China-Wide Rate
VII. Adjustments to Cash Deposit Rates
VIII. Changes Since the Preliminary Determination
IX. Discussion of the Issues
    a. Denial of Separate Rate Eligibility and the Application of an 
AFA Rate
    b. The Tongrun Single Entity
X. Recommendation

[FR Doc. 2018-07315 Filed 4-9-18; 8:45 am]
 BILLING CODE 3510-DS-P