[Federal Register Volume 84, Number 60 (Thursday, March 28, 2019)]
[Notices]
[Pages 11835-11838]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-05925]


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INTERNATIONAL TRADE COMMISSION

[Investigation Nos. 701-TA-608 and 731-TA-1420 (Final)]


Steel Racks From China; Scheduling of the Final Phase of 
Countervailing Duty and Antidumping Duty Investigations

AGENCY: United States International Trade Commission.

ACTION: Notice.

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SUMMARY: The Commission hereby gives notice of the scheduling of the 
final phase of antidumping and countervailing duty investigation Nos. 
701-TA-608 and 731-TA-1420 (Final) pursuant to the Tariff Act of 1930 
(``the Act'') to determine whether an industry in the United States is 
materially injured or threatened with material injury, or the 
establishment of an industry in the United States is materially 
retarded, by reason of imports of steel racks from China, provided for 
in subheadings 7326.90.8688, 9403.20.0080, 9403.90.8041, 7308.90.3000, 
7308.90.6000, 7308.90.9590, and 9403.20.0090 of the Harmonized Tariff 
Schedule of the United States, preliminarily determined by the 
Department of Commerce (``Commerce'') to be subsidized and sold at 
less-than-fair-value.

DATES: March 4, 2019.

FOR FURTHER INFORMATION CONTACT: Stamen Borisson ((202) 205-3125), 
Office of Investigations, U.S. International Trade Commission, 500 E 
Street SW, Washington, DC 20436. Hearing-impaired persons can obtain 
information on this matter by contacting the Commission's TDD terminal 
on 202-205-1810. Persons with mobility impairments who will need 
special assistance in gaining access to the Commission should contact 
the Office of the Secretary at 202-205-2000.
    General information concerning the Commission may also be obtained 
by accessing its internet server (https://www.usitc.gov). The public 
record for these investigations may be viewed on the Commission's 
electronic docket (EDIS) at https://edis.usitc.gov.

SUPPLEMENTARY INFORMATION:
    Scope.--For purposes of these investigations, Commerce has defined 
the subject merchandise as ``steel racks and parts thereof, assembled, 
to any extent, or unassembled, including but not limited to, vertical 
components (e.g., uprights, posts, or columns), horizontal or diagonal 
components (e.g., arms or beams), braces, frames, locking devices 
(e.g., end plates and beam connectors), and accessories (including, but 
not limited to, rails, skid channels, skid rails, drum/coil beds, fork 
clearance bars, pallet supports, row spacers, and wall ties).
    Subject steel racks and parts thereof are made of steel, including, 
but not limited to, cold and/or hot-formed steel, regardless of the 
type of steel used to produce the components and may, or may not, 
include locking tabs, slots, or bolted, clamped, or welded connections. 
Subject steel racks have the following physical characteristics:
    (1) Each steel vertical and horizontal load bearing member (e.g., 
arms, beams, posts, and columns) is composed of steel that is at least 
0.044 inches thick;
    (2) Each steel vertical and horizontal load bearing member (e.g., 
arms, beams, posts, and columns) is composed of steel that has a yield 
strength equal to or greater than 36,000 pounds per square inch;
    (3) The width of each steel vertical load bearing member (e.g., 
posts and columns) exceeds two inches; and
    (4) The overall depth of each steel roll-formed horizontal load 
bearing member (e.g., beams) exceeds two inches.
    In the case of steel horizontal load bearing members other than 
roll-formed (e.g., structural beams, Z-beams, or cantilever arms), only 
the criteria in subparagraphs (1) and (2) apply to these horizontal 
load bearing members. The depth limitation in subparagraph (4) does not 
apply to steel horizontal load bearing members that are not roll-
formed.
    Steel rack components can be assembled into structures of various 
dimensions and configurations by welding, bolting, clipping, or with 
the use of devices such as clips, end plates, and beam connectors, 
including, but not limited to the following configurations: (1) Racks 
with upright frames perpendicular to the aisles that are independently 
adjustable, with positive-locking beams parallel to the aisle spanning 
the upright frames with braces; and (2) cantilever racks with vertical 
components parallel to the aisle and cantilever beams or arms connected 
to the vertical components perpendicular to the aisle. Steel racks may 
be referred to as pallet racks, storage racks, stacker racks, retail 
racks, pick modules, selective racks, or

[[Page 11836]]

cantilever racks and may incorporate moving components and be referred 
to as pallet-flow racks, carton-flow racks, push-back racks, movable-
shelf racks, drive-in racks, and drive-through racks. While steel racks 
may be made to ANSI MH16.l or ANSI MH16.3 standards, all steel racks 
and parts thereof meeting the description set out herein are covered by 
the scope of these investigations, whether or not produced according to 
a particular standard.
    The scope includes all steel racks and parts thereof meeting the 
description above, regardless of
    (1) other dimensions, weight, or load rating;
    (2) vertical components or frame type (including structural, roll-
form, or other);
    (3) horizontal support or beam/brace type (including but not 
limited to structural, roll-form, slotted, unslotted, Z-beam, C-beam, 
L-beam, step beam, and cantilever beam);
    (4) number of supports;
    (5) number of levels;
    (6) surface coating, if any (including but not limited to paint, 
epoxy, powder coating, zinc, or other metallic coatings);
    (7) rack shape (including but not limited to rectangular, square, 
corner, and cantilever);
    (8) the method by which the vertical and horizontal supports 
connect (including but not limited to locking tabs or slots, bolting, 
clamping, and welding); and
    (9) whether or not the steel rack has moving components (including 
but not limited to rails, wheels, rollers, tracks, channels, carts, and 
conveyors).
    Subject merchandise includes merchandise matching the above 
description that has been finished or packaged in a third country. 
Finishing includes, but is not limited to, coating, painting, or 
assembly, including attaching the merchandise to another product, or 
any other finishing or assembly operation that would not remove the 
merchandise from the scope of these investigations if performed in the 
country of manufacture of the steel racks and parts thereof. Packaging 
includes packaging the merchandise with or without another product or 
any other packaging operation that would not remove the merchandise 
from the scope of these investigations if performed in the country of 
manufacture of the steel racks and parts thereof.
    Steel racks and parts thereof are included in the scope of these 
investigations whether or not imported attached to, or included with, 
other parts or accessories such as wire decking, nuts, and bolts. If 
steel racks and parts thereof are imported attached to, or included 
with, such non-subject merchandise, only the steel racks and parts 
thereof are included in the scope.
    The scope of these investigations does not cover: (1) Decks, i.e., 
shelving that sits on or fits into the horizontal supports to provide 
the horizontal storage surface of the steel racks; (2) wire shelving 
units, i.e., units made from wire that incorporate both a wire deck and 
wire horizontal supports (taking the place of the horizontal beams and 
braces) into a single piece with tubular collars that slide over the 
posts and onto plastic sleeves snapped on the posts to create a 
finished unit; (3) pins, nuts, bolts, washers, and clips used as 
connecting devices; and (4) non-steel components.
    Specifically excluded from the scope of these investigations are 
any products covered by Commerce's existing antidumping and 
countervailing duty orders on boltless steel shelving units prepackaged 
for sale from the People's Republic of China. See Boltless Steel 
Shelving Units Prepackaged for Sale From the People's Republic of 
China: Antidumping Duty Order, 80 FR 63,741 (October 21, 2017); 
Boltless Steel Shelving Units Prepackaged for Sale From the People's 
Republic of China: Amended Final Affirmative Countervailing Duty 
Determination and Countervailing Duty Order, 80 FR 63,745 (October 21, 
2017).
    Also excluded from the scope of these investigations are bulk-
packed parts or components of boltless steel shelving units that were 
specifically excluded from the scope of the Boltless Steel Shelving 
Orders because such bulk-packed parts or components do not contain the 
steel vertical supports (i.e., uprights and posts) and steel horizontal 
supports (i.e., beams, braces) packaged together for assembly into a 
completed boltless steel shelving unit.
    Such excluded components of boltless steel shelving are defined as:
    (1) Boltless horizontal supports (beams, braces) that have each of 
the following characteristics: (a) A length of 95 inches or less, (b) 
made from steel that has a thickness of 0.068 inches or less, and (c) a 
weight capacity that does not exceed 2500 lbs per pair of beams for 
beams that are 78'' or shorter, a weight capacity that does not exceed 
2200 lbs per pair of beams for beams that are over 78'' long but not 
longer than 90'', and/or a weight capacity that does not exceed 1800 
lbs per pair of beams for beams that are longer than 90'';
    (2) shelf supports that mate with the aforementioned horizontal 
supports; and
    (3) boltless vertical supports (upright welded frames and posts) 
that have each of the following characteristics: (a) A length of 95 
inches or less, (b) with no face that exceeds 2.90 inches wide, and (c) 
made from steel that has a thickness of 0.065 inches or less.
    Excluded from the scope of these investigations are: (1) Wall-
mounted shelving and racks, defined as shelving and racks that suspend 
all of the load from the wall, and do not stand on, or transfer load 
to, the floor; (2) ceiling-mounted shelving and racks, defined as 
shelving and racks that suspend all of the load from the ceiling and do 
not stand on, or transfer load to, the floor; and (3) wall/ceiling 
mounted shelving and racks, defined as shelving and racks that suspend 
the load from the ceiling and the wall and do not stand on, or transfer 
load to, the floor. The addition of a wall or ceiling bracket or other 
device to attach otherwise subject merchandise to a wall or ceiling 
does not meet the terms of this exclusion.
    Also excluded from the scope of these investigations is scaffolding 
that complies with ANSI/ASSE
    A10.8-2011--Scaffolding Safety Requirements, CAN/CSA S269.2-M87 
(Reaffirmed 2003)--Access Scaffolding for Construction Purposes, and/or 
Occupational Safety and Health Administration regulations at 29 CFR 
part 1926 subpart L--Scaffolds.
    Also excluded from the scope of these investigations are tubular 
racks such as garment racks and drying racks, i.e., racks in which the 
load bearing vertical and horizontal steel members consist solely of: 
(1) Round tubes that are no more than two inches in diameter; (2) round 
rods that are no more than two inches in diameter; (3) other tubular 
shapes that have both an overall height of no more than two inches and 
an overall width of no more than two inches; and/or (4) wire.
    Also excluded from the scope of these investigations are portable 
tier racks. Portable tier racks must meet each of the following 
criteria to qualify for this exclusion:
    (1) They are freestanding, portable assemblies with a fully welded 
base and four freely inserted and easily removable corner posts;
    (2) They are assembled without the use of bolts, braces, anchors, 
brackets, clips, attachments, or connectors;
    (3) One assembly may be stacked on top of another without applying 
any additional load to the product being stored on each assembly, but 
individual portable tier racks are not securely attached to one another 
to provide interaction or interdependence; and

[[Page 11837]]

    (4) The assemblies have no mechanism (e.g., a welded foot plate 
with bolt holes) for anchoring the assembly to the ground.
    Also excluded from the scope of these investigations are 
accessories that are independently bolted to the floor and not attached 
to the rack system itself, i.e., column protectors, corner guards, 
bollards, and end row and end of aisle protectors.
    Merchandise covered by these investigations is currently classified 
in the Harmonized Tariff Schedule of the United States (HTSUS) under 
the following subheadings: 7326.90.8688, 9403.20.0080, and 
9403.90.8041. Subject merchandise may also enter under subheadings 
7308.90.3000, 7308.90.6000, 7308.90.9590, and 9403.20.0090. The HTSUS 
subheadings are provided for convenience and U.S. Customs purposes 
only. The written description of the scope is dispositive.''
    Background.--The final phase of these investigations is being 
scheduled pursuant to sections 705(b) and 731(b) of the Tariff Act of 
1930 (19 U.S.C. 1671d(b) and 1673d(b)), as a result of affirmative 
preliminary determinations by Commerce that certain benefits which 
constitute subsidies within the meaning of section 703 of the Act (19 
U.S.C. 1671b) are being provided to manufacturers, producers, or 
exporters in China of steel racks, and that such products are being 
sold in the United States at less than fair value within the meaning of 
section 733 of the Act (19 U.S.C. 1673b). The investigations were 
requested in petitions filed on June 20, 2018, by Bulldog Rack Company, 
Weirton, West Virginia; Hannibal Industries, Inc., Los Angeles, 
California; Husky Rack and Wire, Denver, North Carolina; Ridg-U-Rak, 
Inc., North East, Pennsylvania; SpaceRAK, A Division of Heartland Steel 
Products, Inc., Marysville, Michigan; Speedrack Products Group, Ltd., 
Sparta, Michigan; Steel King Industries, Inc., Stevens Point, 
Wisconsin; Tri-Boro Shelving & Partition Corp., Farmville, Virginia; 
and UNARCO Material Handling, Inc., Springfield, Tennessee.
    For further information concerning the conduct of this phase of the 
investigations, hearing procedures, and rules of general application, 
consult the Commission's Rules of Practice and Procedure, part 201, 
subparts A and B (19 CFR part 201), and part 207, subparts A and C (19 
CFR part 207).
    Participation in the investigations and public service list.--
Persons, including industrial users of the subject merchandise and, if 
the merchandise is sold at the retail level, representative consumer 
organizations, wishing to participate in the final phase of these 
investigations as parties must file an entry of appearance with the 
Secretary to the Commission, as provided in section 201.11 of the 
Commission's rules, no later than 21 days prior to the hearing date 
specified in this notice. A party that filed a notice of appearance 
during the preliminary phase of the investigations need not file an 
additional notice of appearance during this final phase. The Secretary 
will maintain a public service list containing the names and addresses 
of all persons, or their representatives, who are parties to the 
investigations.
    Limited disclosure of business proprietary information (BPI) under 
an administrative protective order (APO) and BPI service list.--
Pursuant to section 207.7(a) of the Commission's rules, the Secretary 
will make BPI gathered in the final phase of these investigations 
available to authorized applicants under the APO issued in the 
investigations, provided that the application is made no later than 21 
days prior to the hearing date specified in this notice. Authorized 
applicants must represent interested parties, as defined by 19 U.S.C. 
1677(9), who are parties to the investigations. A party granted access 
to BPI in the preliminary phase of the investigations need not reapply 
for such access. A separate service list will be maintained by the 
Secretary for those parties authorized to receive BPI under the APO.
    Staff report.--The prehearing staff report in the final phase of 
these investigations will be placed in the nonpublic record on July 1, 
2019, and a public version will be issued thereafter, pursuant to 
section 207.22 of the Commission's rules.
    Hearing.--The Commission will hold a hearing in connection with the 
final phase of these investigations beginning at 9:30 a.m. on Tuesday, 
July 16, 2019, at the U.S. International Trade Commission Building. 
Requests to appear at the hearing should be filed in writing with the 
Secretary to the Commission on or before July 10, 2019. A nonparty who 
has testimony that may aid the Commission's deliberations may request 
permission to present a short statement at the hearing. All parties and 
nonparties desiring to appear at the hearing and make oral 
presentations should participate in a prehearing conference to be held 
on July 12, 2019, at the U.S. International Trade Commission Building, 
if deemed necessary. Oral testimony and written materials to be 
submitted at the public hearing are governed by sections 201.6(b)(2), 
201.13(f), and 207.24 of the Commission's rules. Parties must submit 
any request to present a portion of their hearing testimony in camera 
no later than 7 business days prior to the date of the hearing.
    Written submissions.--Each party who is an interested party shall 
submit a prehearing brief to the Commission. Prehearing briefs must 
conform with the provisions of section 207.23 of the Commission's 
rules; the deadline for filing is July 9, 2019. Parties may also file 
written testimony in connection with their presentation at the hearing, 
as provided in section 207.24 of the Commission's rules, and 
posthearing briefs, which must conform with the provisions of section 
207.25 of the Commission's rules. The deadline for filing posthearing 
briefs is July 23, 2019. In addition, any person who has not entered an 
appearance as a party to the investigations may submit a written 
statement of information pertinent to the subject of the 
investigations, including statements of support or opposition to the 
petition, on or before July 23, 2019. On August 14, 2019, the 
Commission will make available to parties all information on which they 
have not had an opportunity to comment. Parties may submit final 
comments on this information on or before August 16, 2019, but such 
final comments must not contain new factual information and must 
otherwise comply with section 207.30 of the Commission's rules. All 
written submissions must conform with the provisions of section 201.8 
of the Commission's rules; any submissions that contain BPI must also 
conform with the requirements of sections 201.6, 207.3, and 207.7 of 
the Commission's rules. The Commission's Handbook on E-Filing, 
available on the Commission's website at https://edis.usitc.gov, 
elaborates upon the Commission's rules with respect to electronic 
filing.
    Additional written submissions to the Commission, including 
requests pursuant to section 201.12 of the Commission's rules, shall 
not be accepted unless good cause is shown for accepting such 
submissions, or unless the submission is pursuant to a specific request 
by a Commissioner or Commission staff.
    In accordance with sections 201.16(c) and 207.3 of the Commission's 
rules, each document filed by a party to the investigations must be 
served on all other parties to the investigations (as identified by 
either the public or BPI service list), and a certificate of service 
must be timely filed. The Secretary will not accept a document for 
filing without a certificate of service.


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    Authority: These investigations are being conducted under 
authority of title VII of the Tariff Act of 1930; this notice is 
published pursuant to section 207.21 of the Commission's rules.

    By order of the Commission.

    Issued: March 22, 2019.
Katherine Hiner,
Acting Secretary to the Commission.
[FR Doc. 2019-05925 Filed 3-27-19; 8:45 am]
BILLING CODE 7020-02-P