[Federal Register Volume 84, Number 136 (Tuesday, July 16, 2019)]
[Notices]
[Pages 33920-33921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15084]
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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: Final Determination of Anti-Circumvention Inquiry
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) 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 July 16, 2019.
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 November 15, 2018, Commerce published the preliminary
affirmative determination of circumvention of the antidumping duty
order on diamond sawblades from China.\1\ Commerce exercised its
discretion to toll all deadlines affected by the partial federal
government closure from December 22, 2018 through the resumption of
operations on January 29, 2019.\2\ On April 4, 2019 \3\ and May 31,
2019,\4\ respectively, we extended the deadline of the final
determination. The revised deadline for the final determination is July
10, 2019.
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\1\ See Diamond Sawblades and Parts Thereof from the People's
Republic of China: Preliminary Affirmative Determination of
Circumvention, 83 FR 57425 (November 15, 2018) (Preliminary
Determination).
\2\ See Memorandum to the Record from 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, ``Deadlines
Affected by the Partial Shutdown of the Federal Government,'' dated
January 28, 2019. All deadlines in this segment of the proceeding
have been extended by 40 days.
\3\ See Memorandum, ``Diamond Sawblades and Parts Thereof from
the People's Republic of China: Extension of Deadline for Final
Determination of Anti-Circumvention Inquiry,'' dated April 4, 2019.
\4\ See Memorandum, ``Diamond Sawblades and Parts Thereof from
the People's Republic of China: Extension of Deadline for Final
Determination of Anti-Circumvention Inquiry,'' dated May 31, 2019.
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We received case and rebuttal briefs with respect to the
Preliminary Determination. We conducted 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).
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 Issues and Decision Memorandum.\5\ The written description is
dispositive.
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\5\ See Memorandum, ``Diamond Sawblades and Parts Thereof from
the People's Republic of China: Issues and Decision Memorandum for
the Final Determination of the Anti-Circumvention Inquiry,'' dated
concurrently with, and hereby adopted by, this notice (Issues and
Decision Memorandum) at 2-3.
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Scope of the Anti-Circumvention Inquiry
The products covered by this anti-circumvention inquiry are diamond
sawblades made with Chinese cores and/or Chinese segments joined in
Thailand by Diamond Tools and then subsequently exported from Thailand
to the United States.\6\
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\6\ See Preliminary Determination, 83 FR at 57425.
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Methodology
Commerce is conducting this anti-circumvention inquiry in
accordance with section 781(b) of the Act and 19 CFR 351.225(h). For a
full description of the methodology underlying the Commerce's final
determination, see the Issues and Decision Memorandum. The Issues and
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 Commerce building. In addition, a complete
version of the Issues and Decision Memorandum can be accessed directly
at http://enforcement.trade.gov/frn/.
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this inquiry are addressed in the Issues and Decision Memorandum. A
list of the issues raised is attached to this notice as an Appendix.
Based on our analysis of the comments received, we made changes to the
Preliminary Determination.
Final Affirmative Determination
As detailed in the Issues and Decision Memorandum, we determine
that diamond sawblades made with Chinese cores and Chinese segments
joined in Thailand by Diamond Tools and then subsequently exported from
Thailand to the United States are circumventing the antidumping duty
order on diamond sawblades from China. Therefore, we determine that it
is appropriate to include this merchandise within the scope of the
antidumping duty order and to instruct U.S. Customs and Border
Protection (CBP) to continue to suspend any entries of diamond
sawblades produced in Thailand by Diamond Tools with Chinese cores and
Chinese segments and then subsequently exported from Thailand to the
United States.
Final Negative Determination
As detailed in the Issues and Decision Memorandum, we determine
that diamond sawblades made with Chinese cores and Thai segments or
Chinese segments and Thai cores that are joined in Thailand by Diamond
Tools and subsequently exported from Thailand to the United States are
not circumventing the antidumping duty order on diamond
[[Page 33921]]
sawblades from China. Therefore, we are not including this merchandise
within the scope of the antidumping duty order. However, as we explain
below, we will instruct CBP to continue to suspend any entries of
diamond sawblades produced in Thailand by Diamond Tools with either
Chinese cores or Chinese segments and then subsequently exported from
Thailand to the United States.
Continued Suspension of Liquidation
In accordance with 19 CFR 351.225(l)(3), based on this final
determination in this anti-circumvention inquiry, 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 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. As
we explained in the Preliminary Determination,\7\ 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,\8\ for
entries of such merchandise produced by Diamond Tools.
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\7\ Id. at 57426.
\8\ See, e.g., Diamond Sawblades and Parts Thereof from the
People's Republic of China: Final Results of Antidumping Duty
Administrative Review; 2016-2017, 83 FR 64331, 64332 (December 14,
2018).
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As we explained above, diamond sawblades assembled or completed in
Thailand using either Chinese cores and Thai segments or Thai cores and
Chinese segments are not circumventing the antidumping duty order.
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. Because Diamond Tools is not currently
able to identify diamond sawblades produced with non-Chinese origin
cores and/or non-Chinese origin segments,\9\ in the Preliminary
Determination, Commerce decided not to implement a certification
process at the preliminary stage and required cash deposits on all
entries of diamond sawblades produced by Diamond Tools in Thailand.\10\
We invited parties to comment on this issue in their case briefs but no
parties submitted comments on this issue. Therefore, for the final
determination, we will not implement a certification process for
diamond sawblades already suspended, and will require cash deposits on
all entries of diamond sawblades produced by Diamond Tools in Thailand,
consistent with the Preliminary Determination. However, Diamond Tools
may request reconsideration of our denial of the certification process
in a future segment of the proceeding, i.e., a changed circumstances
review or administrative review.\11\
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\9\ See Preliminary Determination, 83 FR at 57426.
\10\ Id.
\11\ See Carbon Steel Butt-Weld Pipe Fittings from the People's
Republic of China: Final Affirmative Determination of Circumvention
of the Antidumping Duty Order, 84 FR 29164 (June 21, 2019), and
accompanying Issues and Decision Memorandum at 22.
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Administrative Protective Order
This notice will serve as the only reminder to parties subject to
administrative protective order (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 return/destruction or APO materials or conversion to
judicial protective order is hereby requested. Failure to comply with
the regulations and the terms of an APO is a sanctionable violation.
Notification to Interested Parties
This determination is issued and published in accordance with
section 781(b) of the Act and 19 CFR 351.225(f).
Dated: July 10, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Discussion of the Issues
Comment 1: Mathematical Error
Comment 2: Profit
Comment 3: Qualitative Analysis of the Production Process
Comment 4: The Significance of Laser Welding in the Final
Determination
Comment 5: Weighing Five Statutory Criteria in Section 781(b)(2)
of the Act
Comment 6: Production of Cores and Segments in China and
Thailand
V. Recommendation
[FR Doc. 2019-15084 Filed 7-15-19; 8:45 am]
BILLING CODE 3510-DS-P