[Federal Register Volume 86, Number 1 (Monday, January 4, 2021)]
[Notices]
[Pages 56-58]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29101]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-136]


Certain Chassis and Subassemblies Thereof From the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of certain chassis and subassemblies thereof (chassis) from 
the People's Republic of China (China). The period of investigation is 
January 1, 2019 through December 31, 2019. Interested parties are 
invited to comment on this preliminary determination.

DATES: Applicable January 4, 2021.

FOR FURTHER INFORMATION CONTACT: William Langley or Nicholas 
Czajkowski, 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) 482-3681 
or (202) 482-1395, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Trade Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on August 26, 
2020.\1\ On October 1, 2020, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
December 28, 2020.\2\
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    \1\ See Certain Chassis and Subassemblies Thereof from the 
People's Republic of China: Initiation of Countervailing Duty 
Investigation, 85 FR 52549 (August 26, 2020) (Initiation Notice).
    \2\ See Certain Chassis and Subassemblies Thereof from the 
People's Republic of China: Postponement of Preliminary 
Determination in the Countervailing Duty Investigation, 85 FR 63251 
(October 7, 2020).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. 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. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Certain 
Chassis and Subassemblies Thereof from the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are certain chassis and 
subassemblies thereof from China. For a complete description of the 
scope of this investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. Because this investigation is not currently 
aligned with the companion AD investigation, Commerce intends to issue 
its preliminary decision regarding comments concerning the scope of the 
AD and CVD investigations no later than 30 days after the publication 
of this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily 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.\6\
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    \6\ 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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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, 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, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\7\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that, in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. The rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
rates that are zero, de minimis, or rates based entirely under section 
776 of the Act.
    In this investigation, Commerce preliminarily calculated a rate for 
Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan CIMC Vehicle Co., 
Ltd. (collectively, CIMC), the only mandatory respondent. The only rate 
that is not zero, de minimis, or based entirely on facts otherwise 
available is the rate calculated for CIMC. Consequently, the rate 
calculated for CIMC is also assigned as the rate for all other 
producers and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

[[Page 57]]



------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan               38.52
 CIMC Vehicle Co., Ltd \8\..............................
All Others..............................................           38.52
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Suspension of Liquidation
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    \8\ Commerce preliminarily finds the following companies to be 
cross-owned with Qingdao CIMC Special Vehicles Co., Ltd. and 
Dongguan CIMC Vehicle Co., Ltd.: CIMC Vehicles (Group) Co., Ltd.; 
Shenzhen CIMC Vehicle Co., Ltd.; Zhumadian CIMC Huajun Casting Co., 
Ltd.; China International Marine Containers (Group) Co., Ltd.; 
Liangshan CIMC Dongyue Vehicles Co., Ltd.; Shandong Wanshida Special 
Vehicle Manufacturing Co., Ltd.; Yangzhou CIMC Tonghua Special 
Vehicles Co., Ltd.; Zhumadian CIMC Huajun Vehicle Co., Ltd.; Gansu 
CIMC Huajun Vehicles Co., Ltd.; CIMC Vehicles (Liaoning) Co., Ltd.; 
and Zhumadian CIMC Wanjia Axle Co., Ltd.
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    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary 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).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination. 
Normally, Commerce verifies information using standard procedures, 
including an on-site examination of original accounting, financial, and 
sales documentation. However, due to current travel restrictions in 
response to the global COVID-19 pandemic, Commerce is unable to conduct 
on-site verification in this investigation. Accordingly, we intend to 
verify the information relied upon in making the final determination 
through alternative means in lieu of an on-site verification.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Commerce will 
notify interested parties of the deadline for the submission of case 
briefs. Rebuttal briefs, limited to issues raised in case briefs, may 
be submitted no later than seven days after the deadline date for case 
briefs.\9\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in this investigation 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.
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    \9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements); Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020); and 
Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-
19; Extension of Effective Period, 85 FR 41363 (July 10, 2020) 
(Temporary Rule).
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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, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date and time of 
the hearing two days before the scheduled date.
    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date. Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\10\
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    \10\ See Temporary Rule.
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: December 28, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation are chassis and 
subassemblies thereof, whether finished or unfinished, whether 
assembled or unassembled, whether coated or uncoated, regardless of 
the number of axles, for carriage of containers, or other payloads 
(including self-supporting payloads) for road, marine roll-on/roll-
off (RORO) and/or rail transport. Chassis are typically, but are not 
limited to, rectangular framed trailers with a suspension and axle 
system, wheels and tires, brakes, a lighting and electrical system, 
a coupling for towing behind a truck tractor, and a locking system 
or systems to secure the shipping container or containers to the 
chassis using twistlocks, slide pins or similar attachment devices 
to engage the corner fittings on the container or other payload.
    Subject merchandise includes, but is not limited to, the 
following subassemblies:
     Chassis frames, or sections of chassis frames, 
including kingpins or kingpin assemblies, bolsters consisting of 
transverse beams with locking or support mechanisms, goosenecks, 
drop assemblies, extension mechanisms and/or rear impact guards;
     Running gear assemblies or axle assemblies for 
connection to the chassis frame, whether fixed in nature or capable 
of sliding fore and aft or lifting up and lowering down, which may 
or may not include suspension(s) (mechanical or pneumatic), wheel 
end components, slack adjusters, axles, brake chambers, locking 
pins, and tires and wheels;
     Landing gear (legs) or landing gear assemblies, for 
connection to the chassis frame, capable of supporting the chassis 
when it is not engaged to a tractor; and
     Assemblies and/or components that connect to the 
chassis frame or a section of the chassis frame, such as, but not 
limited to, pintle hooks or B-trains (which include a fifth wheel), 
which are capable of connecting a chassis to a converter dolly or 
another chassis.
    Importation of any of these subassemblies, whether assembled or 
unassembled,

[[Page 58]]

constitutes an unfinished chassis for purposes of this 
investigation.
    Subject merchandise also includes chassis, whether finished or 
unfinished, entered with or for further assembly with components 
such as, but not limited to: Hub and drum assemblies, brake 
assemblies (either drum or disc), axles, brake chambers, suspensions 
and suspension components, wheel end components, landing gear legs, 
spoke or disc wheels, tires, brake control systems, electrical 
harnesses and lighting systems.
    Processing of finished and unfinished chassis and components 
such as trimming, cutting, grinding, notching, punching, drilling, 
painting, coating, staining, finishing, assembly, or any other 
processing either in the country of manufacture of the in-scope 
product or in a third country does not remove the product from the 
scope. Inclusion of other components not identified as comprising 
the finished or unfinished chassis does not remove the product from 
the scope.
    This scope excludes dry van trailers, refrigerated van trailers 
and flatbed trailers. Dry van trailers are trailers with a wholly 
enclosed cargo space comprised of fixed sides, nose, floor and roof, 
with articulated panels (doors) across the rear and occasionally at 
selected places on the sides, with the cargo space being permanently 
incorporated in the trailer itself. Refrigerated van trailers are 
trailers with a wholly enclosed cargo space comprised of fixed 
sides, nose, floor and roof, with articulated panels (doors) across 
the rear and occasionally at selected places on the sides, with the 
cargo space being permanently incorporated in the trailer and being 
insulated, possessing specific thermal properties intended for use 
with self-contained refrigeration systems. Flatbed (or platform) 
trailers consist of load-carrying main frames and a solid, flat or 
stepped loading deck or floor permanently incorporated with and 
supported by frame rails and cross members.
    The finished and unfinished chassis subject to this 
investigation are typically classified in the Harmonized Tariff 
Schedule of the United States (HTSUS) at subheadings: 8716.39.0090 
and 8716.90.5060. Imports of finished and unfinished chassis may 
also enter under HTSUS subheading 8716.90.5010. While the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise under investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. New Subsidy Allegations
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Benchmarks and Discount Rates
IX. Analysis of Programs
X. Recommendation

[FR Doc. 2020-29101 Filed 12-31-20; 8:45 am]
BILLING CODE 3510-DS-P