[Federal Register Volume 86, Number 53 (Monday, March 22, 2021)]
[Notices]
[Pages 15186-15188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05815]
[[Page 15186]]
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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: 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 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.
DATES: Applicable March 22, 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) 482-3861
or (202) 482-1395, respectively.
SUPPLEMENTARY INFORMATION:
Background
The petitioner in this investigation is the Coalition of American
Chassis Manufacturers. In addition to the Government of China (GOC),
the selected mandatory respondents are Qingdao CIMC Special Vehicles
Co., Ltd. (QCVC) and Dongguan CIMC Vehicle Co., Ltd. (DCVC)
(collectively, with other cross-owned companies, CIMC).
On January 4, 2021 Commerce published in the Federal Register the
Preliminary Determination of this investigation.\1\ A summary of the
events that occurred since Commerce published the Preliminary
Determination, as well as a full discussion of the issues raised by
parties for this final determination, may be found in the Issues and
Decision Memorandum.\2\ 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 http://access.trade.gov. In addition, a complete version of the Issues and
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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\1\ See Certain Chassis and Subassemblies Thereof from the
People's Republic of China: Preliminary Affirmative Countervailing
Duty Determination, 86 FR 56 (January 4, 2021) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in 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 (Issues and 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
During the course of this and the concurrent antidumping duty (AD)
investigation, Commerce received scope comments from interested
parties. Commerce issued a Preliminary Scope Decision Memorandum to
address these comments.\3\ Subsequently, we received comments from
interested parties on the Preliminary Scope Decision Memorandum, which
we address in the Final Scope Decision Memorandum, dated
contemporaneously with, and hereby adopted by, this final
determination.\4\ Commerce is modifying the scope language as it
appeared in the Preliminary Determination. See Appendix I for the final
scope of this investigation.
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\3\ See Memorandum, ``Certain Chassis and Subassemblies Thereof
from the People's Republic of China: Scope Comments Preliminary
Decision Memorandum,'' dated February 9, 2021 (Preliminary Scope
Decision Memorandum).
\4\ See Memorandum, ``Antidumping Duty and Countervailing Duty
Investigations of Certain Chassis and Subassemblies Thereof from the
People's Republic of China: Scope Comments Decision Memorandum for
the Final Determinations,'' dated March 15, 2021 (Final Scope
Decision Memorandum).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed in the Issues and Decision Memorandum. A list of the issues
raised by parties raised is attached to this notice at Appendix II.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (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.\5\ For a full description of the methodology underlying our
final determination, see the Issues and Decision Memorandum.
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\5\ 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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In making this final determination, Commerce is relying, in part,
on facts otherwise available, including adverse facts available (AFA),
pursuant to sections 776(a) and (b) of the Act. For a full discussion
of our application of AFA, see the Preliminary Determination and the
section ``Use of Facts Otherwise Available and Adverse Inference'' in
the accompanying Issues and Decision Memorandum.\6\
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\6\ See Preliminary Decision Memorandum at ``Use of Facts
Otherwise Available and Adverse Inferences''; see also Issues and
Decision Memorandum at ``Use of Facts Otherwise Available and
Adverse Inference.''
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, as well as additional information collected in questionnaires
issued subsequent to the Preliminary Determination, we made certain
changes to CIMC's subsidy rate calculations. For a discussion of these
changes, see the Issues and Decision Memorandum.
Verification
Commerce was unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. However, we took additional steps in lieu of an on-site
verification to verify the information relied upon in making this final
determination, in accordance with section 782(i) of the Act.\7\
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\7\ See Commerce's Letter, ``Countervailing Duty Investigation
of Certain Chassis and Subassemblies Thereof: CIMC Vehicles (Group)
Co., Ltd. Verification Questionnaire,'' dated February 3, 2021.
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All-Others Rate
As discussed in the Preliminary Determination, Commerce selected
the all-others rate using the countervailable subsidy rate calculated
for the mandatory respondent in accordance with section 705(c)(5)(A) of
the Act.\8\ Section 705(c)(5)(A) of the Act provides that 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.
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\8\ See Preliminary Determination.
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In this investigation, Commerce calculated a rate for CIMC that is
not
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zero, de minimis, or based entirely on facts otherwise available.
Consequently, the rate calculated for CIMC is also assigned as the rate
for all other producers and exporters.
Final Determination
Commerce determines that the following estimated countervailable
subsidy rates exist:
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\9\ Commerce 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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Subsidy
Company rate
(percent)
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Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan CIMC 39.14
Vehicles Co., Ltd.\9\......................................
All Others.................................................. 39.14
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Disclosure
Commerce intends to disclose to interested parties its calculations
and analysis performed in this final determination within five days of
its public announcement, or if there is no public announcement, within
five days of the date of publication of this notice in accordance with
19 CFR 351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of
subject merchandise from China that were entered, or withdrawn from
warehouse, for consumption, effective January 4, 2020, which is the
date of publication of the Preliminary Determination in the Federal
Register.
In accordance with section 705(c)(1)(C) of the Act, we are
directing CBP to continue to suspend liquidation of all imports of the
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 countervailing duty deposits at the rates
described above.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, and
continue to require a cash deposit of estimated countervailing duties
for such entries of subject merchandise in the amounts indicated above,
in accordance with section 706(a) of the Act. 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.
ITC Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of its final affirmative determination that countervailable
subsidies are being provided to producers and exporters of chassis 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 of corrosion inhibitors from China no
later than 45 days after our final determination. In addition, we are
making available to the ITC all non-privileged and nonproprietary
information related to this investigation. If the ITC determines that
material injury or threat of material injury does not exist, this
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 that are 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. We will allow the ITC access to all privileged
and business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
Notification Regarding APO
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to the APO of their responsibility concerning the destruction
of proprietary information disclosed under APO in accordance with 19
CFR 351.305(a)(3). Timely written notification of the return/
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 violation which is subject to sanction.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 771(i) of the Act, and 19 CFR 351.210(c).
Dated: March 15, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is 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 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 assemblies, for connection to the chassis
frame, capable of supporting the chassis when it is not engaged to a
tractor; and
Assemblies 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, constitutes an unfinished chassis for purposes of this
investigation.
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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.
Individual components entered and sold by themselves are not
subject to the investigation, but components entered with or for
further assembly with a finished or unfinished chassis are subject
merchandise. A finished chassis is ultimately comprised of several
different types of subassemblies. Within each subassembly there are
numerous components that comprise a given subassembly.
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 Final Decision Memorandum
I. Summary
II. Background
III. Subsidies Valuation
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Whether CIMC and Its Cross-Owned Affiliates are
State-Owned
Comment 2: Whether the Provision of International Ocean Shipping
Services for LTAR is Countervailable
Comment 3: Whether Shipping Services Provided by Non-Chinese
Firms and For Merchandise Not Subject to the Investigation are
Countervailable
Comment 4: Whether the Application of Adverse Facts Available to
the Export Buyer's Credit Program is Warranted
Comment 5: Whether the Application of Adverse Facts Available is
Warranted in Finding the Provision of Electricity for LTAR
Countervailable
Comment 6: Whether Electricity Surcharges are Countervailable
Comment 7: Whether Commerce Should use Alternative Benchmark
Rates for Land-Use Rights
Comment 8: Whether Intercompany Loans are Countervailable
Comment 9: Whether Commercial Loans are Countervailable
Comment 10: Whether Subsidies to Huajun Casting's Production are
Attributable to Chassis Production
Comment 11: Whether Commerce Should Have Initiated an
Investigation into Currency Undervaluation
Comment 12: Whether CIMC Failed Verification with Respect to
Reported Input Purchases
VII. Recommendation
[FR Doc. 2021-05815 Filed 3-19-21; 8:45 am]
BILLING CODE 3510-DS-P