[Federal Register Volume 85, Number 18 (Tuesday, January 28, 2020)]
[Notices]
[Pages 4947-4949]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01433]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-900]


Diamond Sawblades and Parts Thereof From the People's Republic of 
China: Notice of Covered Merchandise Referral and Initiation of Scope 
Inquiry

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

SUMMARY: Pursuant to the Enforce and Protect Act of 2015 (EAPA), the 
Department of Commerce (Commerce) received a covered merchandise 
referral from U.S. Customs and Border Protection (CBP) in connection 
with a CBP EAPA investigation concerning the antidumping duty order on 
diamond sawblades and parts thereof (diamond sawblades) from the 
People's Republic of China (China). In accordance with EAPA, Commerce 
intends to determine whether the merchandise subject to the referral is 
covered by the scope of this order and promptly transmit its 
determination to CBP. Commerce is providing notice of the referral and 
inviting participation from interested parties.

DATES: Applicable January 28, 2020.

FOR FURTHER INFORMATION CONTACT: Yang Jin Chun, 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) 482-5760.

SUPPLEMENTARY INFORMATION: 

Background

    On February 24, 2016, the Trade Facilitation and Trade Enforcement 
Act of 2015 was signed into law, which contains Title IV--Prevention of 
Evasion of Antidumping and Countervailing Duty Orders (short title 
``Enforce and Protect Act of 2015'' or ``EAPA'') (Pub. L. 114-125, 130 
Stat. 122, 155, Feb. 24, 2016). Effective August 22, 2016, section 421 
of the EAPA added section 517 to the Tariff Act of 1930, as amended 
(the Act), which establishes a formal process for CBP to investigate 
allegations of the evasion of antidumping duty and/or countervailing 
duty orders. Section 517(b)(4)(A) of the Act provides that if, during 
the course of an EAPA investigation, CBP is unable to determine whether 
the merchandise at issue is covered merchandise within the meaning of 
section 517(a)(3) of the Act, it shall refer the matter to Commerce to 
make such a determination. Section 517(a)(3) of the Act defines covered 
merchandise as merchandise that is subject to an antidumping duty order 
issued under section 736 of the Act or a countervailing duty order 
issued under section 706 of the Act. Section 517(b)(4)(B) of the Act 
states that Commerce, after receiving a covered merchandise referral 
from CBP, shall determine whether the merchandise is covered 
merchandise and promptly transmit its determination to CBP. The Act 
does not establish a deadline within which Commerce must issue its 
determination.
    On September 26, 2019, Commerce received a covered merchandise 
referral from CBP regarding CBP EAPA Investigation No. 7250,\1\ which 
concerns the antidumping duty order on diamond sawblades from China. 
CBP explained that the petitioner's allegation involves diamond 
sawblades from China transshipped through Thailand and imported by Lyke 
Industrial Tool, LLC (Lyke). In response to the petitioner's 
allegation, CBP requested and obtained information from Lyke and Lyke's 
supplier of cores and segments, Like Tools Co. Ltd. (Like Thailand). 
CBP has requested that Commerce issue a determination as to whether the 
following categories of diamond sawblades are covered merchandise 
subject to the antidumping duty order:
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    \1\ See CBP's Letter, ``Covered Merchandise Referral Request for 
Merchandise under EAPA Investigation 7250, Imported by Lyke 
Industrial Tool, LLC, and Concerning the Investigation of Evasion of 
the Antidumping Duty Order on Diamond Sawblades and Parts Thereof 
from the People's Republic of China (A-570-900),'' dated September 
19, 2019. Commerce intends to make available this document and any 
supporting documents on Enforcement and Compliance's Antidumping 
Duty and Countervailing Duty Centralized Electronic Service System 
(ACCESS) within five days of publication of this notice.

Category 1: Core sourced from Thailand; segments from China; joined in 
Thailand.
Category 2: Core and segments both sourced from China; joined in 
Thailand.
Category 3: Core sourced from China; segments from Thailand; joined in 
Thailand.

    In addition, on September 6, 2019, Lyke requested a scope ruling 
with respect to certain diamond sawblades that Lyke imported from 
Thailand.\2\ Specifically, Lyke requested that Commerce determine 
whether diamond sawblades made by Like Thailand using Thai segments 
(regardless of the origin of the cores) are outside the scope of the 
antidumping duty order on diamond sawblades from China.\3\ On September 
19, 2019, the petitioner filed a response letter in opposition to 
Lyke's scope request.\4\ We extended the time period for issuing a 
scope ruling or initiating a formal scope inquiry to January 21, 
2020.\5\
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    \2\ See Lyke's Letter, ``Diamond Sawblades and Parts Thereof 
from The People's Republic of China: Scope Inquiry Request,'' dated 
September 6, 2019.
    \3\ See Diamond Sawblades and Parts Thereof from the People's 
Republic of China and the Republic of Korea: Antidumping Duty 
Orders, 74 FR 57145 (November 4, 2009).
    \4\ See Petitioner's Letter, ``Diamond Sawblades and Parts 
Thereof from the People's Republic of China: Response to Request for 
Scope Ruling,'' dated September 19, 2019. The petitioner is Diamond 
Sawblades Manufacturers' Coalition.
    \5\ See Commerce's Letters to All Interested Parties dated 
October 21, 2019, and December 5, 2019.
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Notification to Interested Parties

    Commerce is hereby notifying interested parties that it has 
received the covered merchandise referral referenced above and will 
begin a new segment of the proceeding by initiating a scope inquiry 
concerning the merchandise imported by Lyke that were supplied by Like 
Thailand, in accordance with 19 CFR 351.225(b). Based on our finding in 
that scope inquiry, we intend to notify CBP as to whether the 
merchandise subject to the referral is covered merchandise within the 
meaning of

[[Page 4948]]

section 517(a)(3) of the Act. Because the merchandise in Lyke's scope 
request overlaps with Category 3 above, information contained in Lyke's 
scope request will be incorporated into this new segment of the 
proceeding and considered in the context of the scope inquiry, which 
will cover all three categories of diamond sawblades described in the 
EAPA referral.
    Additionally, Commerce intends to provide interested parties with 
the opportunity to participate in this segment of the proceeding, 
including through the submission of comments, and, if appropriate, new 
factual information and verification. Specifically, Commerce will 
notify parties on the segment-specific service list for this segment of 
the proceeding of a schedule for comments. In addition, Commerce may 
request factual information from any party to assist in making its 
determination, including soliciting information directly from Lyke and 
Like Thailand to conduct our analysis, and may verify submissions of 
factual information, if Commerce determines that such verification is 
appropriate. Commerce intends to issue a final determination within 120 
days of the publication of this notice (this deadline may be extended 
if it is not practicable to complete the final determination within 120 
days) and will promptly transmit its final determination to CBP in 
accordance with section 517(b)(4)(B) of the Act.
    Commerce may consider conducting a separate anti-circumvention 
inquiry regarding the merchandise described in CBP's covered 
merchandise referral, if parties submit the necessary information 
addressing the criteria for an anti-circumvention inquiry in accordance 
with section 781 of the Act. Interested parties are requested to file 
such comments and information onto the record of this proceeding within 
30 days of the publication of this notice in the Federal Register.
    Interested parties that wish to participate in the scope inquiry 
being initiated now, and receive notice of the final determination, 
must submit their letters of appearance as discussed below. Further, 
any party desiring access to business proprietary information in this 
segment of the proceeding must file an application for access to 
business proprietary information under administrative protective order 
(APO), as discussed below.
    Finally, we note that scope inquiries initiated in response to a 
CBP covered merchandise referral are a new type of proceeding at 
Commerce.\6\ Commerce intends to develop its practice and procedures in 
this area as it gains more experience.
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    \6\ We initiated one such proceeding recently. See Certain 
Hardwood Plywood From the People's Republic of China: Notice of 
Covered Merchandise Referral and Initiation of Scope Inquiry, 85 FR 
3024 (January 17, 2020).
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Scope of the Order

    For a complete description of the scope of the orders, see the 
Appendix to this notice.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
ACCESS.\7\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due. Documents 
exempted from the electronic submission requirements must be filed 
manually (i.e., in paper form) with Enforcement and Compliance's APO/
Dockets Unit, Room 18022, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230, and stamped with the date 
of receipt by the applicable deadlines.
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    \7\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011), as amended in Enforcement 
and Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014), for details of Commerce's electronic filing 
requirements. Information on help using ACCESS can be found at 
https://access.trade.gov/help.aspx and a handbook can be found at 
https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
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Letters of Appearance and APO

    Interested parties that wish to participate in this segment of the 
proceeding and be added to the public service list for this segment of 
the proceeding must file a letter of appearance in accordance with 19 
CFR 351.103(d)(1), with one exception: The parties publicly identified 
by CBP in the covered merchandise referral (referenced above) are not 
required to submit a letter of appearance, and will be added to the 
public service list for this segment of the proceeding by Commerce.
    Within 24 hours of this notice being signed, Commerce placed a 
request for an APO segment on the record \8\ and established an APO 
segment for use in this proceeding. Commerce intends to place the 
business proprietary versions of the documents contained in the covered 
merchandise referral on the record of this proceeding in ACCESS within 
five days of publication of this notice.
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    \8\ See Memorandum, ``Diamond Sawblades and Parts Thereof from 
the People's Republic of China: APO Request,'' dated January 21, 
2020.
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    Interested parties must submit applications for disclosure under 
the APO in accordance with the procedures outlined in Commerce's 
regulations at 19 CFR 351.305. Those procedures apply to this segment 
of the proceeding, with one exception: APO applicants representing the 
parties that have been identified by CBP as an importer in the covered 
merchandise referral (referenced above) are exempt from the additional 
filing requirements for importers pursuant to 19 CFR 351.305(d).

    Dated: January 21, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The products covered by the order are all finished circular 
sawblades, whether slotted or not, with a working part that is 
comprised of a diamond segment or segments, and parts thereof, 
regardless of specification or size, except as specifically excluded 
below. Within the scope of the order are semi-finished diamond 
sawblades, including diamond sawblade cores and diamond sawblade 
segments. Diamond sawblade cores are circular steel plates, whether 
or not attached to non-steel plates, with slots. Diamond sawblade 
cores are manufactured principally, but not exclusively, from alloy 
steel. A diamond sawblade segment consists of a mixture of diamonds 
(whether natural or synthetic, and regardless of the quantity of 
diamonds) and metal powders (including, but not limited to, iron, 
cobalt, nickel, tungsten carbide) that are formed together into a 
solid shape (from generally, but not limited to, a heating and 
pressing process).
    Sawblades with diamonds directly attached to the core with a 
resin or electroplated bond, which thereby do not contain a diamond 
segment, are not included within the scope of the order. Diamond 
sawblades and/or sawblade cores with a thickness of less than 0.025 
inches, or with a thickness greater than 1.1 inches, are excluded 
from the scope of the order. Circular steel plates that have a 
cutting edge of non-diamond material, such as external teeth that 
protrude from the outer diameter of the plate, whether or not 
finished, are excluded from the scope of the order. Diamond sawblade 
cores with a Rockwell C hardness of less than 25 are excluded from 
the scope of the order. Diamond sawblades and/or diamond segment(s) 
with diamonds that predominantly have a mesh size number greater 
than 240 (such as 250 or 260) are excluded from the scope of the 
order.
    Merchandise subject to the order is typically imported under 
heading 8202.39.00.00 of the Harmonized Tariff Schedule of the 
United States (HTSUS). When packaged together as a set for retail 
sale with an item that is separately classified under headings 8202 
to 8205 of the HTSUS,

[[Page 4949]]

diamond sawblades or parts thereof may be imported under heading 
8206.00.00.00 of the HTSUS. On October 11, 2011, Commerce included 
the 6804.21.00.00 HTSUS classification number to the customs case 
reference file, pursuant to a request by U.S. Customs and Border 
Protection.\9\ Pursuant to requests by CBP, Commerce included to the 
customs case reference file the following HTSUS classification 
numbers: 8202.39.0040 and 8202.39.0070 on January 22, 2015, and 
6804.21.0010 and 6804.21.0080 on January 26, 2015.\10\
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    \9\ See Diamond Sawblades and Parts Thereof from the Republic of 
Korea: Preliminary Results of Antidumping Duty Administrative 
Review, 76 FR 76128 (December 6, 2011).
    \10\ See Diamond Sawblades and Parts Thereof from the People's 
Republic of China: Final Results of Antidumping Duty Administrative 
Review; 2016-2017, 83 FR 64331 (December 14, 2018) and accompanying 
Issues and Decision Memorandum at 3.
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    The tariff classification is provided for convenience and 
customs purposes; however, the written description of the scope of 
the order is dispositive.

[FR Doc. 2020-01433 Filed 1-27-20; 8:45 am]
BILLING CODE 3510-DS-P