[Federal Register Volume 85, Number 40 (Friday, February 28, 2020)]
[Notices]
[Pages 11951-11953]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04118]
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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 February 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 December 17, 2019, Commerce received a covered merchandise
referral from CBP regarding CBP EAPA Investigation No. 7354,\1\ which
concerns the antidumping duty order on diamond sawblades from China.\2\
CBP explained that the petitioner's allegation involves diamond
sawblades from China transshipped through Canada in one of the two
channels of transshipment below:
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\1\ See CBP's Letter, ``Covered Merchandise Referral Request for
EAPA Investigation 7354, Imported by Gogo International, Inc., 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 December 17, 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.
\2\ 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) (order).
Channel 1: Produced and exported by Protech Diamond Tools Inc.
(Protech) and imported by Gogo International, Inc. (Gogo).
Channel 2: Produced by Protech and exported by Gogo.
CBP requested and obtained information from Gogo. CBP has requested
that Commerce issue a determination as to whether the following
categories of diamond
[[Page 11952]]
sawblades exported through either one of the two channels are covered
merchandise subject to the antidumping duty order:
Category 1: Core and segments both sourced from China; joined in
Canada.
Category 2: Core sourced from China and segments not sourced from
China; joined in Canada.
Category 3: Segments sourced from China and core not sourced from
China; joined in Canada.
On February 20, 2020, Commerce published the affirmative final
determination of the anti-circumvention inquiry on the antidumping duty
order on diamond sawblades from China.\3\ In the Final Determination,
Commerce found that diamond sawblades produced in Canada by Protech
with cores and segments produced in China and subsequently exported
from Canada by Protech to the United States were circumventing the
antidumping duty order.\4\ The Final Determination covers Category 1
exported through Channel 1.
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\3\ See Diamond Sawblades and Parts Thereof from the People's
Republic of China: Final Determination of Anti-Circumvention
Inquiry, 85 FR 9737 (February 20, 2020) (Final Determination).
\4\ Id., 85 FR at 9738-39. As explained in the Final
Determination, because Protech failed to cooperate with Commerce's
request for information in that anti-circumvention inquiry, Commerce
found that Protech is not currently able to identify diamond
sawblades produced with non-Chinese origin cores and/or non-Chinese
origin segments. Accordingly, Commerce did not implement a
certification process for Protech and is requiring cash deposits on
all entries of diamond sawblades produced and exported by Protech in
Canada. Id., 85 FR at 9739.
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Notification to Interested Parties
In accordance with 19 CFR 351.225(b), 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
covered under all categories and exported through either one of the two
channels, with the exception of Category 1 exported through Channel 1,
which is covered by the Final Determination. Based on our finding in
the scope inquiry, we intend to notify CBP as to whether the
merchandise subject to the referral is covered merchandise within the
meaning of section 517(a)(3) of the Act. We will inform CBP of our
Final Determination which covers merchandise under Category 1 exported
through Channel 1.
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 Protech
and Gogo 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, with the exception of the merchandise already
determined to have been circumventing the order in the Final
Determination, 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.\5\ Commerce intends to develop its practice and procedures in
this area as it gains more experience.
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\5\ 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); Diamond Sawblades and
Parts Thereof from the People's Republic of China: Notice of Covered
Merchandise Referral and Initiation of Scope Inquiry, 85 FR 4947
(January 28, 2020).
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Scope of the Order
For a complete description of the scope of the order, see the
Appendix to this notice.
Filing Requirements
All submissions to Commerce must be filed electronically using
ACCESS.\6\ 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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\6\ 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 \7\ 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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\7\ See Memorandum, ``Diamond Sawblades and Parts Thereof from
the People's Republic of China: APO Request,'' dated concurrently
with this notice.
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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
[[Page 11953]]
identified by CBP as an importer in the covered merchandise referral
(referenced above) are exempt from the additional filing requirements
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for importers pursuant to 19 CFR 351.305(d).
Dated: February 24, 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, 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.\8\ 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.\9\
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\8\ See Diamond Sawblades and Parts Thereof from the Republic of
Korea: Preliminary Results of Antidumping Duty Administrative
Review, 76 FR 76128 (December 6, 2011).
\9\ 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. 2020-04118 Filed 2-27-20; 8:45 am]
BILLING CODE 3510-DS-P