[Federal Register Volume 84, Number 148 (Thursday, August 1, 2019)]
[Notices]
[Pages 37622-37625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16326]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-111]


Vertical Metal File Cabinets From the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of vertical metal file cabinets (file cabinets) from the 
People's Republic of China (China). The period of investigation is 
January 1, 2018 through December 31, 2018. Interested parties are 
invited to comment on this preliminary determination.

DATES: Applicable August 1, 2019.

FOR FURTHER INFORMATION CONTACT: Thomas Dunne, AD/CVD Operations, 
Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2328.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on May 24, 
2019.\1\ For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\2\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. The Preliminary 
Decision Memorandum is a public document and 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 is available to all 
parties in the Central Records Unit, Room B8024 of the main Commerce 
building. In addition, a complete version of the Preliminary Decision 
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the Preliminary Decision 
Memorandum are identical in content.
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    \1\ See Vertical Metal File Cabinets from the People's Republic 
of China: Initiation of Countervailing Duty Investigation, 84 FR 
24089 (May 24, 2019) (Initiation Notice).
    \2\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Countervailing Duty Investigation of Vertical 
Metal File Cabinets from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are file cabinets from 
China. For a complete description of the

[[Page 37623]]

scope of this investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\4\ No interested party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice. Commerce is not preliminarily modifying the scope 
language as it appeared in the Initiation Notice. See the scope in 
Appendix I.
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Initiation Notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\5\
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    \5\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied on facts 
available and, because it finds that one or more respondents did not 
act to the best of their ability to respond to Commerce's requests for 
information, it drew an adverse inference where appropriate in 
selecting from among the facts otherwise available.\6\ For further 
information, see ``Use of Facts Otherwise Available and Adverse 
Inferences'' in the Preliminary Decision Memorandum.
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    \6\ See sections 776(a) and (b) of the Act.
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All-Others Rate

    In accordance with sections 703(d)(1)(A)(i) and 705(c)(5)(A) of the 
Act, Commerce shall determine an estimated all-others rate for 
companies not individually examined. Generally, under section 
705(c)(5)(A)(i) of the Act, this rate shall be an amount equal to the 
weighted average of the estimated subsidy rates established for those 
companies individually examined, excluding any zero and de minimis 
rates and any rates based entirely on adverse facts available (AFA) 
under section 776 of the Act. However, section 705(c)(5)(A)(ii) of the 
Act provides that, where all countervailable subsidy rates are zero, de 
minimis, or based entirely on facts available, Commerce may use ``any 
reasonable method'' for assigning an all-others rate, including 
``averaging the estimated weighted-average countervailable subsidy 
rates.'' In this investigation, all rates are based entirely on facts 
available, pursuant to section 776 of the Act. Accordingly, we find 
under ``any reasonable method'' to rely on a simple average of the 
total AFA rates computed for the non-responsive companies as the all-
others rate in this preliminary determination. For further information 
on the all-others rate, see the Preliminary Decision Memorandum.\7\
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    \7\ See Preliminary Decision Memorandum at ``Calculation of the 
All-Others Rate.''
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Estimated
                                                        countervailable
                       Company                           subsidy rates
                                                           (percent)
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Non-Responsive Companies \8\.........................             227.10
All Others \9\.......................................             227.10
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Suspension of Liquidation
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    \8\ See Appendix III to this notice.
    \9\ See Appendix IV to this notice.
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    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with the preliminary determination within five 
days of its public announcement, or, if there is no public 
announcement, within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b). However, because Commerce 
preliminarily applied total AFA rates in the calculation of the benefit 
for the non-responsive companies, and the applied AFA rates are based 
on rates calculated in prior proceedings, there are no calculations to 
disclose.

Public Comment

    Commerce will issue a memorandum establishing the deadline to file 
case briefs or other written comments for all issues following the 
publication of the preliminary determination. Rebuttal briefs, limited 
to issues raised in case briefs, may be submitted no later than five 
days after the deadline date for case briefs.\10\ Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal 
briefs in this investigation 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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    \10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
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.

Final Determination

    Section 705(a)(1) of the Act and 19 CFR 351.210(b)(1) provide that 
Commerce will issue the final determination within 75 days after the 
date of its preliminary determination. Accordingly, Commerce will make 
its final determination no later than 75 days after the signature date 
of this preliminary determination.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
countervailing duty determination. If the final determination is 
affirmative, the ITC will determine before the later of 120 days after 
the date of this preliminary determination or 45 days after the final 
determination whether imports of the subject merchandise are materially 
injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f)

[[Page 37624]]

and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: July 24, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers freestanding vertical 
metal file cabinets containing two or more extendable file storage 
elements and having an actual width of 25 inches or less.
    The subject vertical metal file cabinets have bodies made of 
carbon and/or alloy steel and or other metals, regardless of whether 
painted, powder coated, or galvanized or otherwise coated for 
corrosion protection or aesthetic appearance. The subject vertical 
metal file cabinets must have two or more extendable elements for 
file storage (e.g., file drawers) of a height that permits hanging 
files of either letter (8.5'' x 11'') or legal (8.5'' x 14'') sized 
documents.
    An ``extendable element'' is defined as a movable load-bearing 
storage component including, but not limited to, drawers and filing 
frames. Extendable elements typically have suspension systems, 
consisting of glide blocks or ball bearing glides, to facilitate 
opening and closing.
    The subject vertical metal file cabinets typically come in 
models with two, three, four, or five-file drawers. The inclusion of 
one or more additional non-file-sized extendable storage elements, 
not sized for storage files (e.g., box or pencil drawers), does not 
remove an otherwise in-scope product from the scope as long as the 
combined height of the non-file-sized extendable storage elements 
does not exceed six inches. The inclusion of an integrated storage 
area that is not extendable (e.g., a cubby) and has an actual height 
of six inches or less, also does not remove a subject vertical metal 
file cabinet from the scope. Accessories packaged with a subject 
vertical file cabinet, such as separate printer stands or shelf kits 
that sit on top of the in-scope vertical file cabinet are not 
considered integrated storage.
    ``Freestanding'' means the unit has a solid top and does not 
have an open top or a top with holes punched in it that would permit 
the unit to be attached to, hung from, or otherwise used to support 
a desktop or other work surface. The ability to anchor a vertical 
file cabinet to a wall for stability or to prevent it from tipping 
over does not exclude the unit from the scope.
    The addition of mobility elements such as casters, wheels, or a 
dolly does not remove the product from the scope. Packaging a 
subject vertical metal file cabinet with other accessories, 
including, but not limited to, locks, leveling glides, caster kits, 
drawer accessories (e.g., including but not limited to follower 
wires, follower blocks, file compressors, hanger rails, pencil 
trays, and hanging file folders), printer stand, shelf kit and 
magnetic hooks, also does not remove the product from the scope. 
Vertical metal file cabinets are also in scope whether they are 
imported assembled or unassembled with all essential parts and 
components included.
    Excluded from the scope are lateral metal file cabinets. Lateral 
metal file cabinets have a width that is greater than the body 
depth, and have a body with an actual width that is more than 25 
inches wide.
    Also excluded from the scope are pedestal file cabinets. 
Pedestal file cabinets are metal file cabinets with body depths that 
are greater than or equal to their width, are under 31 inches in 
actual height, and have the following characteristics: (1) An open 
top or other the means for the cabinet to be attached to or hung 
from a desktop or other work surface such as holes punched in the 
top (i.e., not freestanding); or (2) freestanding file cabinets that 
have all of the following: (a) At least a 90 percent drawer 
extension for all extendable file storage elements; (b) a central 
locking system; (c) a minimum weight density of 9.5 lbs./cubic foot; 
and (d) casters or leveling glides.
    ``Percentage drawer extension'' is defined as the drawer travel 
distance divided by the inside depth dimension of the drawer. Inside 
depth of drawer is measured from the inside of the drawer face to 
the inside face of the drawer back. Drawer extension is the distance 
the drawer travels from the closed position to the maximum travel 
position which is limited by the out stops. In situations where 
drawers do not include an outstop, the drawer is extended until the 
drawer back is 3 \l/2\ inches from the closed position of inside 
face of the drawer front. The ``weight density'' is calculated by 
dividing the cabinet's actual weight by its volume in cubic feet 
(the multiple of the product's actual width, depth, and height). A 
``central locking system'' locks all drawers in a unit.
    Also excluded from the scope are fire proof or fire-resistant 
file cabinets that meet Underwriters Laboratories (UL) fire 
protection standard 72, class 350, which covers the test procedures 
applicable to fire-resistant equipment intended to protect paper 
records.
    The merchandise subject to the investigation is classified under 
Harmonized Tariff Schedule of the United States (HTSUS) subheading 
9403.10.0020. The subject merchandise may also enter under HTSUS 
subheadings 9403.10.0040, 9403.20.0080, and 9403.20.0090. While 
HTSUS subheadings are provided for convenience and customs purposes, 
the written description of the scope of the investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Scope Comments
V. Respondent Selection
VI. Injury Test
VII. Application of the CVD Law to Imports From China
VIII. Diversification of China's Economy
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Analysis of Programs
XI. Calculation of the All-Others Rate
XII. ITC Notification
XIII. Disclosure and Public Comment
XIV. Verification
XV. Recommendation

Appendix III

List of Non-Responsive Companies Receiving AFA Rate

1. Best Beauty Furniture Co., Ltd.
2. Chung Wah Steel Furniture Factory
3. Concept Furniture (Anhui) Co., Ltd.
4. Dong Guan Shing Fai Furniture
5. Dongguan Zhisheng Furniture Co., Ltd.
6. Feel Life Co., Ltd.
7. Fujian lvyer Industrial Co., Ltd.
8. Fuzhou Nu Deco Crafts Co., Ltd.
9. Fuzhou Yibang Furniture Co., Ltd.
10. Gold Future Furnishing Co., Ltd.
11. Guangdong Hongye Furniture
12. Guangxi Gicon Office Furniture Co., Ltd.
13. Guangzhou City Yunrui Imp.
14. Hangzhou Zongda Co., Ltd.
15. Heze Huayi Chemical Co., Ltd.
16. Highbright Enterprise Ltd.
17. Homestar Corp.
18. Honghui Wooden Crafts Co., Ltd.
19. Huabao Steel Appliance Co., Ltd.
20. I.D. International Inc.
21. Jiangmen Kinwai International
22. Jiaxing Haihong Electromechanical Technology Co., Ltd.
23. Long Sheng Office Furniture
24. Louyong Hua Zhi Jie Office Furniture Co., Ltd.
25. Luoyang Hua Wei Office Furniture Co., Ltd.
26. Luoyang Huadu Imp. Exp. Co., Ltd.
27. Luoyang Mas Younger Office Furniture Co., Ltd.
28. Luoyang Shidiu Import & Export Co., Ltd.
29. Luoyang Zhenhai Furniture Co., Ltd.
30. Ningbo Sunburst International Trading Co., Ltd.
31. Ri Time Group Inc. (Szx)
32. Shenzhen Heng Li de Industry Co., Ltd.
33. Shenzhen Zhijuan (Zhiyuan) Technology Co., Ltd.
34. Shiny Way Furniture Co., Ltd.
35. South Metal Furniture Factory
36. Suzhou Jie Quan (Jinyuan) Trading Co., Ltd.
37. T. H. I. Group (Shanghai) Ltd.
38. Tianjin First Wood Co., Ltd.
39. UenJoy (Tianjin) Technology Co., Ltd.
40. Xiamen Extreme Creations
41. Xinhui Second Light Machinery Factory Co., Ltd.
42. Yahee Technologies
43. Zhe Jiang Jiayang Imp. & Exp. Co., Ltd.
44. Zhejiang Ue Furniture Co., Ltd.
45. Zhong Shan Yue Qin Imp. & Exp.
46. Zhongshan Fmarts Furniture Co., Ltd

Appendix IV

List of Companies Receiving All-Others Rate

    The companies receiving the all-others rate include:

1. Guangzhou Perfect Office Furniture
2. Guangzhou Textiles Holdings Limited
3. Huisen Furniture (Longnan) Co., Ltd.
4. Invention Global Ltd.
5. Jiangxi Yuanjin Science & Technology Group Co., Ltd.
6. Jpc Co., Ltd. (HK)

[[Page 37625]]

7. Leder Lighting Co., Ltd.
8. Luoyang Cuide Imp. & Exp.
9. Ningbo Haishu Spark Imp. & Exp. Co., Ltd.
10. Ningbo Haitian International Co.
11. Qingdao Liansheng
12. Shanxi Ktl Agricultural Technology Co., Ltd.
13. Shanxi Sijian Group Co., Ltd.
14. Shenzhen Zhilai Sci and Tech Co., Ltd.
15. Top Perfect Ltd.
16. Zhengzhou Puhui Trading Co., Ltd.

[FR Doc. 2019-16326 Filed 7-31-19; 8:45 am]
 BILLING CODE 3510-DS-P