[Federal Register Volume 84, Number 196 (Wednesday, October 9, 2019)]
[Notices]
[Pages 54115-54116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22071]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-057]


Certain Tool Chests and Cabinets From the People's Republic of 
China: Preliminary Results of Countervailing Duty Administrative 
Review; 2017-2018

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that Zhongshan Geelong Manufacturing Co. Ltd. (Geelong), the sole 
producer subject to this administrative review of certain tool chests 
and cabinets (tool chests) from the People's Republic of China (China) 
received countervailable subsidies during the period of review (POR), 
September 15, 2017 through December 31, 2018. Interested parties are 
invited to comment on these preliminary results of review.

DATES: Applicable October 9, 2019.

FOR FURTHER INFORMATION CONTACT: Thomas Schauer, 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) 482-0410.

SUPPLEMENTARY INFORMATION: 

Background

    On January 24, 2018, Commerce published the countervailing duty 
(CVD) order on tool chests from China.\1\ On February 8, 2019, we 
published a notice of opportunity to request an administrative review 
of the Order for the POR.\2\ On February 28, 2019, we received timely 
requests from Geelong \3\ and Home Depot \4\ to conduct an 
administrative review of the Order with regard to Geelong.\5\ On April 
1, 2019, we published a notice of initiation for this administrative 
review.\6\
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    \1\ See Certain Tool Chests and Cabinets from the People's 
Republic of China: Countervailing Duty Order, 83 FR 3299 (January 
24, 2018) (Order).
    \2\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity to Request Administrative 
Review, 84 FR 2816, 2817 (February 8, 2019).
    \3\ See Geelong's Letter, ``Administrative Review of the 
Countervailing Duty Order on Certain Tool Chests and Cabinets from 
the People's Republic of China: Request for Review,'' dated February 
28, 2019.
    \4\ See Home Depot's Letter, ``Administrative Review of the 
Countervailing Duty Order on Certain Tool Chests and Cabinets from 
the People's Republic of China: Request for Review,'' dated February 
28, 2019.
    \5\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 84 FR 12200, 12206 (April 1, 2019) 
(Initiation Notice). The parties requested reviews of Geelong, 
Geelong Sales (MCO) Ltd. (MCO), and Geelong Sales Co. International 
(HK) Ltd. However, neither of the latter two companies produce 
subject merchandise and we preliminarily determine that neither of 
these two companies received any subsidies. See ``Decision 
Memorandum for the Preliminary Results of the Administrative Review 
of the Countervailing Duty Order on Certain Tool Chests and Cabinets 
from the People's Republic of China; 2017-2018,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum) at ``Attribution of Subsidies.'' MCO, an affiliate of 
Geelong located in Macau, exports the subject merchandise Geelong 
produces to the United States. See Letter, ``Administrative Review 
of the Countervailing Duty Order on Certain Tool Chests and Cabinets 
from the People's Republic of China: First Supplemental 
Questionnaire Response,'' dated May 10, 2019, at Exhibit SQl-1.
    \6\ See Initiation Notice, 84 FR at 12206.
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Scope of the Order

    The scope of the Order covers tool chests from China. A full 
description of the scope of the Order is contained in the Preliminary 
Decision Memorandum.\7\
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    \7\ See Preliminary Decision Memorandum.
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Methodology

    We are conducting this administrative review in accordance with 
section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). 
For each of the subsidy programs found countervailable, we determine 
that there is a subsidy, i.e., a financial contribution by an 
``authority'' that confers a benefit to the recipient, and that the 
subsidy is specific.\8\ For a full description of the methodology 
underlying our preliminary conclusions, including our reliance, in 
part, on adverse facts available pursuant to sections 776(a) and (b) of 
the Act, see the Preliminary Decision Memorandum. A list of topics 
included in the Preliminary Decision Memorandum is provided in the 
appendix to this notice.
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    \8\ 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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    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

[[Page 54116]]

complete version of the Preliminary Decision Memorandum can be accessed 
directly at https://enforcement.trade.gov/frn/index.html. The signed 
and the electronic versions of the Preliminary Decision Memorandum are 
identical in content.

Preliminary Results of Review

    We preliminarily find that the following net countervailable 
subsidy rates exist for the sole respondent, Geelong, for the period 
September 15, 2017 through December 31, 2018:

------------------------------------------------------------------------
                                         Subsidy rate-    Subsidy rate-
                                         2017 (percent    2018 (percent
                Company                   ad valorem)      ad valorem)
 
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Zhongshan Geelong Manufacturing Co.               1.27             1.15
 Ltd..................................
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Assessment Rates

    Upon issuance of the final results of this administrative review, 
Commerce shall determine, and U.S. Customs and Border Protection (CBP) 
shall assess, countervailing duties on all appropriate entries covered 
by this review. We intend to issue assessment instructions to CBP 15 
days after publication of the final results of this review.

Cash Deposit Requirements

    Pursuant to section 751(a)(2)(C) of the Act, we intend, upon 
publication of the final results, to instruct CBP to collect cash 
deposits of estimated CVDs, in the amounts indicated above for Geelong, 
on shipments of subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of the 
final results of this administrative review. These cash deposit 
requirements, when imposed, shall remain in effect until further 
notice.

Disclosure and Public Comment

    We intend to disclose the calculations performed for these 
preliminary results to the parties within five days after public 
announcement of the preliminary results in accordance with 19 CFR 
351.224(b). Pursuant to 19 CFR 351.309(c), 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 be filed not later than five days after the date for filing 
case briefs.\9\ Parties who submit case briefs or rebuttal briefs in 
this proceeding 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.\10\
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    \9\ See 19 CFR 351.309(d).
    \10\ See 19 CFR 351.309(c)(2) and (d)(2).
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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, filed electronically via ACCESS. An 
electronically filed document must be received successfully in its 
entirety by Commerce's electronic records system, ACCESS, by 5:00 p.m. 
Eastern Time within 30 days after the date of publication of this 
notice.\11\ Requests should contain: (1) The party's name, address and 
telephone number; (2) the number of participants; and (3) a list of 
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. Unless the 
deadline is extended, pursuant to section 751(a)(3)(A) of the Act, we 
intend to issue the final results of this administrative review, 
including the results of our analysis of the issues raised by the 
parties in their case briefs, no later than 120 days after the date of 
publication of this notice.
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    \11\ See 19 CFR 351.310(c).
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Notification to Interested Parties

    These preliminary results are issued and published in accordance 
with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 
351.221(b)(4).

    Dated: October 3, 2019.
Jeffrey I. Kessler,
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. Diversification of China's Economy
V. Subsidies Valuation
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VIII. Analysis of Programs
IX. Conclusion

[FR Doc. 2019-22071 Filed 10-8-19; 8:45 am]
 BILLING CODE 3510-DS-P