[Federal Register Volume 84, Number 148 (Thursday, August 1, 2019)]
[Notices]
[Pages 37618-37620]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16327]
[[Page 37618]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-110]
Vertical Metal File Cabinets From the People's Republic of China:
Preliminary 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) preliminarily determines
that vertical metal file cabinets (file cabinets) 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 period of
investigation (POI) is October 1, 2018 through March 31, 2019.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable August 1, 2019.
FOR FURTHER INFORMATION CONTACT: Leo Ayala or Kathryn Wallace, 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) 482-3945 or (202) 482-6251,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(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 included 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 https://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 Preliminary Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/. The signed
and the 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 Less-Than-Fair-Value Investigation, 84 FR
24093 (May 24, 2019) (Initiation Notice).
\2\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of Vertical
Metal File Cabinet 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 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 731 of the Act. Pursuant to section 776(a) and (b) of the Act,
we have preliminarily relied upon facts otherwise available, with
adverse inferences, for the China-wide entity because it did not
respond to our requests for information. Commerce has preliminarily
relied upon facts otherwise available, with adverse inferences, for the
China-wide entity because it did not respond to our request for
information. No companies have demonstrated their eligibility for a
separate rate; thus, all companies are preliminarily found to be part
of the China-wide entity. Furthermore, we find that the China-wide
entity's lack of participation, including the failure of certain parts
of the China-wide entity to respond to Commerce's questionnaires,
constitute circumstances under which it is reasonable to conclude that
the China-wide entity as a whole failed to cooperate to the best of its
ability to comply with Commerce's requests for information. For a full
description of the methodology underlying Commerce's preliminary
determination, see the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\5\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\6\ In this case, because we did not
receive any separate rate applications, and thus, no companies
qualified for a separate rate, producer/exporter combination rates were
not calculated.
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\5\ See Initiation Notice, 84 FR 24096.
\6\ 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,'' (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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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist during the period October 1,
2018 through March 31, 2019:
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Estimated weighted-
Estimated weighted- average dumping margin
Producer/exporter average dumping margin adjusted for export
(percent) subsidy offset(s)
(percent)
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China-Wide Entity............................................. 198.5 160.77
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
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,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
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Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted-average amount by which normal value
exceeds U.S. price, as indicated in the chart above as follows: (1) For
the producer/exporter combinations listed in the table above, the cash
deposit rate is equal to the estimated weighted-average dumping margin
listed for that combination in the table; (2) for all combinations of
China producers/exporters of merchandise under consideration that have
not established eligibility for their own separate rates, the cash
deposit rate will be equal to the estimated weighted-average dumping
margin established for the China-wide entity; and (3) for all third-
county exporters of merchandise under consideration not listed in the
table above, the cash deposit rate is the cash deposit rate applicable
to the China producer/exporter combination (or the China-wide entity)
that supplied that third-country exporter.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). As discussed in the
Preliminary Decision Memorandum, we have made no adjustment for
domestic subsidy pass-through. As further explained in the Preliminary
Decision Memorandum, we have made an adjustment for export subsidies
found in the companion CVD investigation.\7\ The adjusted rate may be
found in the Preliminary Determination Section's chart of estimated
weighted-average dumping margins above.
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\7\ See unpublished Federal Register notice, ``Vertical Metal
File Cabinets from the People's Republic of China: Preliminary
Affirmative Countervailing Duty Determination,'' signed July 24,
2019, and accompanying Issues and Decision Memorandum.
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Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for
export subsidies at the time the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Normally, Commerce discloses to interested parties the calculations
performed in connection with a 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 to the China-wide entity in this
investigation in accordance with section 776 of the Act, and the
applied AFA rate is based solely on the petition, there are no
calculations to disclose.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than 50
days after the date of publication of the preliminary determination,
unless the Secretary alters the time limit. Rebuttal briefs, limited to
issues raised in case briefs, may be submitted no later than five days
after the deadline date for case briefs.\8\ 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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\8\ 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 735(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 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. 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 in accordance with
sections 733(f) and 777(i)(1) 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
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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\1/2\ 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. Discussion of the Methodology
VI. Adjustment Under Section 777(A)(F) of the Act
VII. Adjustments to Cash Deposit Rates for Export Subsidies
VIII. ITC Notification
IX. Disclosure and Public Comment
X. Verification
XI. Conclusion
[FR Doc. 2019-16327 Filed 7-31-19; 8:45 am]
BILLING CODE 3510-DS-P