[Federal Register Volume 83, Number 221 (Thursday, November 15, 2018)]
[Notices]
[Pages 57425-57427]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24939]


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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: Preliminary Affirmative Determination of Circumvention

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that Diamond Tools Technology (Thailand) Co., Ltd. (Diamond Tools) is 
circumventing the antidumping duty order on diamond sawblades and parts 
thereof (diamond sawblades) from the People's Republic of China 
(China).

DATES: Applicable November 15, 2018.

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

    On December 7, 2017, in response to a request from Diamond 
Sawblades Manufacturers' Coalition (the petitioner), Commerce published 
the initiation of the anti-circumvention inquiry to determine whether 
certain imports of diamond sawblades comprised of cores and segments 
produced in China and joined into diamond sawblades in, and exported 
from, Thailand by Diamond Tools are circumventing the antidumping duty 
order on diamond sawblades from China.\1\
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    \1\ See Diamond Sawblades and Parts Thereof from the People's 
Republic of China: Initiation of Anti-Circumvention Inquiry, 82 FR 
57709 (December 7, 2017) (Initiation Notice).
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Scope of the Order

    The merchandise subject to the order is diamond sawblades. The 
diamond sawblades subject to the order are currently classifiable under 
subheadings 8202 to 8206 of the Harmonized Tariff Schedule of the 
United States (HTSUS), and may also enter under subheading 6804.21.00. 
The HTSUS subheadings are provided for convenience and customs 
purposes. A full description of the scope of the order is contained in 
the Preliminary Decision Memorandum.\2\ The written description is 
dispositive.
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    \2\ See the Memorandum, ``Diamond Sawblades and Parts Thereof 
from the People's Republic of China: Decision Memorandum for 
Preliminary Affirmative Determination of Circumvention,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum) at 2-3.
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Scope of the Anti-Circumvention Inquiry

    We initiated this anti-circumvention inquiry to cover diamond 
sawblades produced in Thailand by Diamond Tools with cores and segments 
produced in China and subsequently exported from Thailand to the United 
States.\3\ During the conduct of this anti-circumvention inquiry, 
Diamond Tools reported that, in addition to diamond sawblades produced 
in Thailand with cores and segments produced in China, it also produced 
diamond sawblades with either Chinese cores and Thai segments or Thai 
cores and Chinese segments.\4\ Based on the additional information we 
received from Diamond Tools, and as further discussed in the 
Preliminary Analysis Memorandum,\5\ we are also examining whether 
diamond sawblades produced in Thailand by Diamond Tools with either 
cores or segments produced in China are circumventing the order.
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    \3\ See Initiation Notice, 82 FR at 57710 (``This anti-
circumvention inquiry covers diamond sawblades exported from 
Thailand to the United States that are produced by Diamond Tools 
from cores and segments of {China{time}  origin.'').
    \4\ See, e.g., Diamond Tools' original response dated January 
18, 2018, at 4.
    \5\ See the Memorandum, ``Diamond Sawblades and Parts Thereof 
from the People's Republic of China: Preliminary Analysis Memorandum 
for Diamond Tools Technology (Thailand) Co., Ltd.'' dated 
concurrently with this memorandum (Preliminary Analysis Memorandum) 
for more information containing Diamond Tools' business proprietary 
information.
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Methodology

    Commerce is conducting this anti-circumvention inquiry in 
accordance with section 781(b) of the Tariff Act of 1930, as amended 
(the Act), and 19 CFR 351.225(h). Because China is a non-market economy 
country within the meaning of section 771(18) of the Act, Commerce 
relied on surrogate values to value the purchases of Chinese cores and 
Chinese segments, as discussed in section 773(c) of the Act. For a full 
description of the methodology underlying our conclusions, see the 
Preliminary Decision Memorandum. The Preliminary Decision Memorandum 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 
to all parties in the Central Records Unit, Room B8024 of the main 
Department of Commerce building. In addition, a

[[Page 57426]]

complete version of the Preliminary Decision Memorandum can be accessed 
directly at http://enforcement.trade.gov/frn/.

Preliminary Determination

    As detailed in the Preliminary Decision Memorandum, Commerce 
preliminarily determines that diamond sawblades produced by Diamond 
Tools in Thailand using cores and/or segments from China and exported 
from Thailand to the United States are circumventing the antidumping 
duty order on diamond sawblades from China. We therefore preliminarily 
determine that it is appropriate to include this merchandise within the 
antidumping duty order on diamond sawblades from China and to instruct 
U.S. Customs and Border Protection (CBP) to suspend entries of 
merchandise produced using Chinese cores and/or Chinese segments by 
Diamond Tools in Thailand and exported to the United States.

Suspension of Liquidation

    As stated above, Commerce has made a preliminary affirmative 
finding of circumvention of the antidumping duty order on diamond 
sawblades from China for diamond sawblades assembled or completed using 
Chinese cores and/or Chinese segments as inputs by Diamond Tools in 
Thailand and exported to the United States. This preliminary 
circumvention finding applies to diamond sawblades assembled or 
completed using Chinese cores and/or Chinese segments as inputs by 
Diamond Tools in Thailand. In accordance with section 19 CFR 
351.225(l)(2), Commerce will direct CBP to suspend liquidation and to 
require a cash deposit of estimated duties on unliquidated entries of 
diamond sawblades produced (i.e., assembled or completed) using Chinese 
cores and/or Chinese segments by Diamond Tools in Thailand that were 
entered, or withdrawn from warehouse, for consumption on or after 
December 1, 2017, the date of initiation of this anti-circumvention 
inquiry. The suspension of liquidation instructions will remain in 
effect until further notice. For the reasons stated in the Preliminary 
Analysis Memorandum, which contains Diamond Tools' business proprietary 
information,\6\ Commerce will instruct CBP to require antidumping duty 
cash deposits equal to the rate established for the China-wide entity, 
i.e., 82.05 percent,\7\ for entries of such merchandise produced by 
Diamond Tools.
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    \6\ See Preliminary Analysis Memorandum at 4 for Diamond Tools' 
accounting and production system in its normal course of business.
    \7\ See, e.g., Diamond Sawblades and Parts Thereof from the 
People's Republic of China: Final Results of Antidumping Duty 
Administrative Review; 2015-2016, 83 FR 17527, 17528 (April 20, 
2018).
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    Diamond sawblades assembled or completed in Thailand using both 
non-Chinese origin cores and non-Chinese origin segments are not 
subject to this anti-circumvention inquiry. However, for the reasons 
stated in the Preliminary Analysis Memorandum, Commerce finds that 
Diamond Tools is not currently able to identify diamond sawblades 
produced with non-Chinese origin cores and non-Chinese origin 
segments.\8\ Therefore, Commerce will not implement a certification 
process at this preliminary stage, and we will require cash deposits on 
all entries of diamond sawblades produced by Diamond Tools in Thailand. 
We invite parties to comment on this issue in their case briefs.
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    \8\ See Preliminary Analysis Memorandum at 4 for Diamond Tools' 
accounting and production system in its normal course of business. 
Some, but not all, of the reasons stated contain business 
proprietary information.
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Public Comment

    Commerce intends to disclose the analysis used in these preliminary 
findings within five days of publication of this notice. Interested 
parties are invited to comment on the preliminary determination of this 
anti-circumvention inquiry. Pursuant to 19 CFR 351.309(b)(2), 
interested parties may submit case briefs not later than 30 days after 
the date of publication of this notice. Rebuttal briefs, limited to 
issues raised in the case briefs, may not be filed later than five days 
after the time limit for filing case briefs.\9\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case or rebuttal briefs in 
this anti-circumvention inquiry 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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    \9\ See 19 CFR 351.309(d)(1)-(2).
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    Any interested party who wishes to request a hearing, or to 
participate if one is requested, must submit a written request to the 
Assistant Secretary for Enforcement and Compliance within 30 days after 
the day of publication of this notice pursuant to 19 CFR 351.310(c). A 
request should contain: (1) The party's name, address, and telephone 
number; (2) the number of participants; (3) whether any participant is 
a foreign national; and (4) a list of issues to be discussed. If a 
request for a hearing is made, then Commerce 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. Issues raised in the hearing will 
be limited to those raised in case and rebuttal briefs.

International Trade Commission Notification

    Consistent with section 781(e) of the Act, Commerce will notify the 
International Trade Commission (ITC) of this preliminary determination 
to include the merchandise subject to this anti-circumvention inquiry 
within the antidumping duty order on diamond sawblades from China. 
Pursuant to section 781(e) of the Act, the ITC may request 
consultations concerning Commerce's proposed inclusion of the subject 
merchandise. If, after consultations, the ITC believes that a 
significant injury issue is presented by the proposed inclusion, it 
will have 60 days from the date of notification by Commerce to provide 
written advice.

Final Determination

    According to section 781(f) of the Act, Commerce shall, to the 
maximum extent practicable, make its anti-circumvention determination 
within 300 days from the date of the initiation of the inquiry.\10\ Due 
to the complicated nature of this anti-circumvention inquiry, we 
previously extended the deadline for the final determination of this 
anti-circumvention inquiry by 150 days. Therefore, Commerce intends to 
issue the final determination in this anti-circumvention inquiry by 
February 27, 2019.\11\
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    \10\ See also 19 CFR 351.225(f)(iii)(5) (explaining that 
Commerce will issue a final anticircumvention ruling ``normally 
within 300 days from the date of the initiation of the . . . 
inquiry'').
    \11\ See the Memorandum, ``Diamond Sawblades and Parts Thereof 
from the People's Republic of China: Extension of Deadline for Final 
Determination of Anti-Circumvention Inquiry,'' dated September 27, 
2018.
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    This preliminary affirmative circumvention determination is 
published in accordance with section 781(b) of the Act and 19 CFR 
351.225(f).

    Dated: November 8, 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

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Scope of the Anti-Circumvention Inquiry

[[Page 57427]]

V. The Period of Inquiry
VI. Surrogate Country and Valuation Methodology for Inputs from 
China
VII. Statutory Framework
VIII. Statutory Analysis
IX. Other Statutory Criteria
X. Summary of Statutory Analysis
XI. Recommendation

[FR Doc. 2018-24939 Filed 11-14-18; 8:45 am]
 BILLING CODE 3510-DS-P