[Federal Register Volume 84, Number 210 (Wednesday, October 30, 2019)]
[Notices]
[Pages 58137-58139]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23611]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-096]


Aluminum Wire and Cable 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 aluminum wire and cable from the People's Republic of China (China).

DATES: Applicable October 30, 2019.

FOR FURTHER INFORMATION CONTACT: Caitlin Monks or Nancy Decker, AD/CVD 
Operations, Office VII, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: 202-482-2670 or 202-482-0196, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The petitioners in this investigation are Encore Wire Corporation 
(Encore) and Southwire Company, LLC (Southwire) (the petitioners). In 
addition to the Government of China (GOC), the mandatory respondents in 
this investigation are Shanghai Silin Special Equipment Co., Ltd. 
(Silin), Changfeng Wire & Cable Co., Ltd. (Changfeng), and Shanghai 
Yang Pu Qu Gong (Qu Gong). Qu Gong did not respond to our requests for 
information.
    On April 8, 2019, Commerce published in the Federal Register the 
Preliminary Determination of this investigation.\1\ On September 11, 
2019, Commerce issued its Post-Preliminary Analysis.\2\
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    \1\ See Aluminum Wire and Cable from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination, 
and Alignment of Final Determination with Final Antidumping Duty 
Determination, 84 FR 13886 (April 8, 2019) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ See Memorandum, ``Post-Preliminary Analysis of 
Countervailing Duty Investigation: Aluminum Wire and Cable from the 
People's Republic of China,'' dated September 11, 2019.
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    A summary of events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of comments 
from interested parties for this final determination, is provided in 
the Issues and Decision Memorandum.\3\ 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. 
The signed and electronic versions of the Issues and Decision 
Memorandum are identical in content.
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Aluminum Wire and Cable from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are aluminum wire and 
cable. For a complete description of the scope of this investigation, 
see Appendix I.

Period of Investigation

    The period of investigation is January 1, 2017 through December 31, 
2017.

Use of Adverse Facts Available

    In making this final determination, Commerce is relying on facts 
otherwise available, including adverse facts available (AFA), pursuant 
to section 776(a) of the Tariff Act of 1930, as amended (the Act). For 
a full discussion of our application of AFA, see the Preliminary 
Determination and the Issues and Decision Memorandum.\4\
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    \4\ See Preliminary Determination PDM at ``Use of Facts 
Otherwise Available and Adverse Inferences;'' see also Issues and 
Decision Memorandum at ``Use of Facts Otherwise Available and 
Adverse Inferences.''
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Analysis of Comments Received

    In the Issues and Decision Memorandum, we address all issues raised 
in parties' case and rebuttal briefs. A list of the issues that parties 
raised, and to which we responded, is attached to this notice as 
Appendix II.

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, minor corrections presented at verification, and our 
verification findings, we made changes to Changfeng's subsidy rate 
calculation, and we have now assigned Silin a rate based entirely on 
AFA. For a discussion of these changes, see the Issues and Decision 
Memorandum.

Final Determination

    In accordance with section 705(c)(1)(B)(i)(I) of the Tariff Act of 
1930, as amended (the Act), we calculated an individual estimated 
subsidy rate for Changfeng and assigned to Qu Gong and Silin rates 
based entirely on AFA pursuant to section 776 of the Act.
    Section 705(c)(5)(A) of the Act provides that in the final 
determination, Commerce shall determine an estimated all-others rate 
for companies not individually examined. 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 under section 
776 of the Act. Changfeng is the only respondent for which we 
calculated an estimated weighted-average subsidy rate that is not zero, 
de minimis, or based entirely on facts otherwise available. Therefore,

[[Page 58138]]

for purposes of determining the all-others rate, and pursuant to 
section 705(c)(5)(A) of the Act, we are using the subsidy rate 
calculated for Changfeng.
    Commerce determines the total estimated net countervailable subsidy 
rates to be the following:

------------------------------------------------------------------------
                                                               Subsidy
                     Producer/exporter                           rate
                                                              (percent)
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Shanghai Silin Special Equipment Co., Ltd.\5\                     165.63
Changfeng Wire & Cable Co., Ltd............................        33.44
Shanghai Yang Pu Qu Gong...................................       165.63
All-Others.................................................        33.44
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Disclosure
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    \5\ As discussed in the Preliminary Determination PDM, Commerce 
has assigned Silin's rate to the entity named as cross-owned in its 
affiliation questionnaire response: Jiangxi Silin International 
Cable Co., Ltd.
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    We intend to disclose to interested parties under Administrative 
Protective Order (APO), the calculations performed in connection with 
this final determination within five days of any public announcement 
or, if there is no public announcement, within five days of the date of 
publication of the notice of final determination in the Federal 
Register, in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of all entries of 
merchandise under consideration from China that were entered or 
withdrawn from warehouse, for consumption, on or after April 8, 2019, 
i.e., the date of publication of the Preliminary Determination in the 
Federal Register. In accordance with section 703(d) of the Act, we 
issued instructions to CBP to discontinue the suspension of liquidation 
for countervailing duty purposes for subject merchandise entered, or 
withdrawn from warehouse, on or after August 6, 2019, but to continue 
the suspension of liquidation of all entries from April 8, 2019 through 
August 5, 2019.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, reinstate the suspension of liquidation under section 706(a) of 
the Act, and will require a cash deposit of estimated countervailing 
duties for entries of subject merchandise in the amounts indicated 
above. 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 as a result of the suspension of the 
suspension of liquidation will be refunded.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. Because Commerce's 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 of aluminum wire 
and cable from China no later than 45 days after our 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 countervailing duty 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, as discussed above in 
the ``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to the parties subject to an APO 
of their responsibility concerning the disposition of proprietary 
information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return or destruction 
of APO materials or, alternatively, conversion to judicial protective 
order, is hereby requested. Failure to comply with the regulations and 
terms of an APO is a violation that is subject to sanction.

Notification to Interested Parties

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

    Dated: October 18, 2019.
Carole Showers,
Executive Director, Office Policy, Policy & Negotiations, Enforcement 
and Compliance.

Appendix I

Scope of the Investigation

    The scope of the investigation covers aluminum wire and cable, 
which is defined as an assembly of one or more electrical conductors 
made from 8000 Series Aluminum Alloys (defined in accordance with 
ASTM B800), Aluminum Alloy 1350 (defined in accordance with ASTM 
B230/B230M or B609/B609M), and/or Aluminum Alloy 6201 (defined in 
accordance with ASTM B398/B398M), provided that: (1) At least one of 
the electrical conductors is insulated; (2) each insulated 
electrical conductor has a voltage rating greater than 80 volts and 
not exceeding 1,000 volts; and (3) at least one electrical conductor 
is stranded and has a size not less than 16.5 thousand circular mil 
(kcmil) and not greater than 1,000 kcmil. The assembly may: (1) 
Include a grounding or neutral conductor; (2) be clad with aluminum, 
steel, or other base metal; or (3) include a steel support center 
wire, one or more connectors, a tape shield, a jacket or other 
covering, and/or filler materials.
    Most aluminum wire and cable products conform to National 
Electrical Code (NEC) types THHN, THWN, THWN-2, XHHW-2, USE, USE-2, 
RHH, RHW, or RHW-2, and also conform to Underwriters Laboratories 
(UL) standards UL-44, UL-83, UL-758, UL-854, UL-1063, UL-1277, UL-
1569, UL-1581, or UL-4703, but such conformity is not required for 
the merchandise to be included within the scope.
    The scope of the investigation specifically excludes aluminum 
wire and cable products in lengths less than six feet, whether or 
not included in equipment already assembled at the time of 
importation.
    The merchandise covered by the investigation is currently 
classifiable under subheading 8544.49.9000 of the Harmonized Tariff 
Schedule of the United States (HTSUS). Products subject to the scope 
may also enter under HTSUS subheading 8544.42.9090. The 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. Scope Comments
IV. Scope of the Investigation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Subsidies Valuation
VII. Analysis of Programs
VIII. Analysis of Comments
    General Issues
    Comment 1: Export Buyer's Credits
    Comment 2: Other Subsidies
    Comment 3: Benchmark for Aluminum Rod
    Comment 4: Double Remedies for Aluminum Rod
    Comment 5: Loan Calculations
    Issues Related to Silin and its Suppliers/Producers
    Comment 6: Whether to Apply AFA to Silin
    Comment 7: Whether to Apply Partial AFA to Qingdao Cable
    Comment 8: Xinqi Cable's Electricity Benefit Calculation
    Issues Related to Changfeng

[[Page 58139]]

    Comment 9: Whether to Apply AFA to Changfeng
    Comment 10: Whether to Apply Partial AFA to Changfeng's Policy 
Loans
IX. Recommendation

[FR Doc. 2019-23611 Filed 10-29-19; 8:45 am]
 BILLING CODE 3510-DS-P