[Federal Register Volume 84, Number 207 (Friday, October 25, 2019)]
[Notices]
[Pages 57394-57397]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23338]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-111]


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

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

SUMMARY: The Department of Commerce (Commerce) 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).

DATES: Applicable October 25, 2019.

FOR FURTHER INFORMATION CONTACT: Kathryn Wallace, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-6251.

SUPPLEMENTARY INFORMATION: 

[[Page 57395]]

Background

    On August 1, 2019, Commerce published the Preliminary Determination 
of this investigation in the Federal Register.\1\ A complete summary of 
the events that occurred since Commerce published the Preliminary 
Determination, as well as a full discussion of the issues raised for 
this final determination, may be found in the Issues and Decision 
Memorandum.\2\
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    \1\ See Vertical Metal File Cabinets from the People's Republic 
of China: Preliminary Affirmative Countervailing Duty Determination, 
84 FR 37622 (August 1, 2019) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final 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 (Issues 
and Decision Memorandum).
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    The Issues and 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 is available 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/. The signed Issues and Decision Memorandum 
and the electronic version are identical in content.
    As stated in the Preliminary Determination, the deadline for the 
final determination of this investigation is 75 days after the 
signature of the Preliminary Determination, or October 7, 2019.

Period of Investigation

    The period of investigation (POI) is January 1, 2018 through 
December 31, 2018.

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 of this notice.

Analysis of Subsidy Programs and Comments Received

    Hirsch Industries, LLC, the petitioner was the only interested 
party to submit a case brief.\3\ The issues raised in the petitioner's 
case brief are discussed in the Issues and Decision Memorandum.
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    \3\ See Petitioner's Letter, ``Vertical Metal File Cabinets from 
the People's Republic of China: Petitioner's Case Brief,'' dated 
September 20, 2019.
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Use of Adverse Facts Available

    Commerce relied on ``facts otherwise available,'' including adverse 
facts available (AFA), for certain findings in the Preliminary 
Determination. For this final determination, we continue to find that 
adverse inferences are warranted in selecting from facts otherwise 
available with respect to the certain producers and/or exporters that 
received quantity and value questionnaires from Commerce, but did not 
respond, pursuant to section 776(a)-(b) of the Act.\4\ Accordingly, we 
continue to find that these non-responsive companies are benefitting 
from countervailable subsidies from all programs identified in the 
Initiation Checklist (and Preliminary Determination).\5\
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    \4\ See Memorandum, ``Countervailing Duty Investigation of File 
Cabinets from the People's Republic of China: Delivery of Quantity 
and Value Questionnaire to Exporters/Producers,'' dated July 5, 
2019.
    \5\ 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) and accompanying Initiation 
Checklist; and Preliminary Decision Memorandum at 13-37.
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    In addition, for this final determination, with respect to the GOC, 
we find it appropriate to rely on adverse inferences in selecting from 
among the facts otherwise available, pursuant to section 776(a)-(b) of 
the Act. We continue to rely on the sole information on the record, the 
Petition, to find that each of the programs identified in the 
Initiation Checklist (and Preliminary Determination) provides a 
financial contribution and is specific pursuant to sections 771(5)(B) 
and (D) and 771(5A) of the Act, respectively.\6\
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    \6\ See Initiation Checklist. For an analysis of this 
information, see Preliminary Decision Memorandum at 13-41.
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    For a full discussion of our application of AFA, see the Issues and 
Decision Memorandum.

Changes Since the Preliminary Determination

    Based on the GOC's failure to respond to the questionnaire issued 
to it following the Preliminary Determination and our analysis of the 
comments received, we made certain changes to our specificity and 
financial contribution findings set forth in the Preliminary 
Determination. In addition, Commerce has revised the subsidy rate 
applied to the Provision of Zinc for Less Than Adequate Remuneration 
(LTAR) program in this final determination. For a discussion of these 
changes, see the Issues and Decision Memorandum.

All-Others Rate

    In accordance with section 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 
facts available under section 776 of the Act. However, section 
705(c)(5)(A)(ii) of the Act provides that, where all countervailable 
subsidy rates established for the mandatory respondents 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 average countervailable subsidy rates 
determined for the exporters and producers individually investigated.'' 
In this investigation, all rates are based entirely on facts available, 
pursuant to section 776 of the Act. We are relying on a simple average 
of the total AFA rates assigned to the non-responsive companies as the 
all-others rate in this final determination, particularly because there 
is no other information on the record from which to determine the all-
others rate.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found countervailable, 
Commerce 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.\7\ In making these 
findings, Commerce relied on facts otherwise available and, as 
discussed above and in the Issues and Decision Memorandum, 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, Commerce 
drew an adverse inference where appropriate in selecting from among the 
facts otherwise available.\8\ For a full description of the methodology 
underlying our final

[[Page 57396]]

determination, see the Issues and Decision Memorandum.
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    \7\ 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.
    \8\ See section 776(a)-(b) of the Act.
    \9\ See Appendix III: List of Companies Receiving AFA Rate.
    \10\ See Appendix IV: List of Companies Receiving All-Others 
Rate.
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Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we 
established estimated countervailable subsidy rates, as follows:

 
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                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Non-Responsive Companies \9\................................      271.79
All Others \10\.............................................      271.79
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Disclosure

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

Continuation of Suspension of Liquidation

    In accordance with sections 703(d) of the Act, Commerce instructed 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
appropriate entries of file cabinets from China, as described in 
Appendix I of this notice, which were entered or withdrawn from 
warehouse, for consumption, on or after August 1, 2019, the date of 
publication of the Preliminary Determination in the Federal Register, 
for all producers and exporters of merchandise under consideration. In 
accordance with section 705(c)(1)(B)(ii) of the Act, we are directing 
CBP to continue to suspend liquidation of all imports of subject 
merchandise from China that are entered, or withdrawn from warehouse, 
for consumption on or after the date of publication of this notice in 
the Federal Register. The suspension of liquidation instructions will 
remain in effect until further notice. We are also directing CBP to 
collect cash deposits of estimated countervailing duties at the rates 
identified above.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated, and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of file 
cabinets from China. Because the final determination in this proceeding 
is affirmative, in accordance with section 705(b) of the Act, the ITC 
will make its final determination as to whether the domestic industry 
in the United States is materially injured, or threatened with material 
injury, by reason of imports, or sales (or the likelihood of sales) for 
importation of file cabinets from China before the later of 120 days 
after the date of this preliminary determination or 45 days after the 
final determination. If the ITC determines that material injury or 
threat of material injury does not exist, the proceeding will be 
terminated, and all cash deposits will be refunded. If the ITC 
determines that such injury does exist, Commerce will issue a CVD order 
directing CBP to assess, upon further instruction by Commerce, 
countervailing duties on all imports of the subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after the 
effective date of the suspension of liquidation.

Administrative Protective Orders

    This notice serves as the only reminder to parties subject to the 
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 notification of the 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: October 7, 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

[[Page 57397]]

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 Issues and Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope of Investigation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Discussion of the Issues
VII. 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)
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. 2019-23338 Filed 10-24-19; 8:45 am]
 BILLING CODE 3510-DS-P