[Federal Register Volume 86, Number 93 (Monday, May 17, 2021)]
[Notices]
[Pages 26694-26696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10346]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-135]


Certain Chassis and Subassemblies Thereof From the People's 
Republic of China: Final Affirmative Determination of Sales at Less 
Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) determines that certain 
chassis and subassemblies thereof (chassis) from the People's Republic 
of China (China) are being, or are likely to be, sold in the United 
States at less than fair value (LTFV). The period of investigation 
(POI) is January 1, 2020, through June 30, 2020.

DATES: Applicable May 17, 2021.

FOR FURTHER INFORMATION CONTACT: Hermes Pinilla or Mary Kolberg, 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) 482-3477 or (202) 482-1785, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 4, 2021, Commerce published its Preliminary Determination 
in the antidumping duty investigation of chassis from China.\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\
---------------------------------------------------------------------------

    \1\ See Certain Chassis and Subassemblies Thereof from the 
People's Republic of China: Preliminary Affirmative Determination of 
Sales at Less Than Fair Value, 86 FR 12616 (March 4, 2021) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum (PDM).
    \2\ See Memorandum, ``Certain Chassis and Subassemblies Thereof 
from the People's Republic of China: Decision Memorandum for the 
Final Affirmative Determination of Sales at Less-Than-Fair-Value,'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and Decision Memorandum).
---------------------------------------------------------------------------

Period of Investigation

    The POI is January 1, 2020, through June 30, 2020.

Scope of the Investigation

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

Scope Comments

    In accordance with the preamble to Commerce's regulations,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\4\ Certain interested 
parties commented on the scope of the investigations as they appeared 
in the Initiation Notice and we addressed these comments in the 
Preliminary Scope Decision Memorandum,\5\ modifying the scope of this 
and the companion countervailing duty (CVD) investigation. 
Specifically, we removed individual components from the definition of 
in-scope subassemblies and added language to clarify that the 
individual components that enter separately are not covered by the 
scope of these investigations. We established a period for parties to 
address issues in scope case and rebuttal briefs.\6\ We received scope 
comments and addressed them in the Final Scope Decision Memorandum.\7\
---------------------------------------------------------------------------

    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Certain Chassis and Subassemblies Thereof from the 
People's Republic of China: Initiation of Less-Than-Fair-Value 
Investigation, 85 FR 52552 (August 26, 2020) (Initiation Notice).
    \5\ 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).
    \6\ See Preliminary Scope Decision Memorandum.
    \7\ See Memorandum, ``Antidumping 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).
---------------------------------------------------------------------------

Analysis of Comments Received

    All issues raised in the case briefs and rebuttal briefs submitted 
by interested parties in this proceeding are discussed in the Issues 
and Decision Memorandum. A list of the issues raised by parties and 
responded to by Commerce is attached to this notice as Appendix II. The 
Issues and Decision Memorandum is a public document and is available 
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. In 
addition, a complete version of the Issues and Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn./.

Changes Since the Preliminary Determination

    Pursuant to section 772(c)(1)(C) of the Act, Commerce normally 
adjusts the dumping margin for countervailable export subsidies. In the 
Preliminary Determination, we determined a countervailable export 
subsidy rate of 5.77 percent ad valorem based on the export buyer's 
credit. However, for the final determination of the concurrent CVD 
investigation, Commerce adjusted its calculation of the export subsidy 
rate because we determined that CIMC benefitted from several subsidy 
programs contingent on exports totaling 11.00 percent ad valorem for 
the China-wide entity. Accordingly, Commerce adjusted the calculated 
estimated weighted-average dumping margin for this investigation by the 
offset.\8\
---------------------------------------------------------------------------

    \8\ The export subsidy rate determined in the final 
determination of the companion CVD investigation is 11.00 percent. 
See Chassis and Subassemblies Thereof from the People's Republic of 
China: Final Affirmative Countervailing Duty Determination, 86 FR 
15186 (March 22, 2021) (Chassis CVD Final Determination), and 
accompanying Issues and Decision Memorandum (IDM) at 8.

---------------------------------------------------------------------------

[[Page 26695]]

China-Wide Entity and Use of Adverse Facts Available

    We continue to find that the use of facts available is warranted in 
determining the rate of the China-wide entity pursuant to sections 
776(a)(1) and (a)(2)(A)-(C) of the Act. Further, use of adverse facts 
available (AFA) is warranted because the China-wide entity did not 
cooperate to the best of its ability to comply with our request for 
information and, accordingly, we applied adverse inferences in 
selecting from the facts available, pursuant to section 776(b) of the 
Act and 19 CFR 351.308(a).
    The China-wide entity includes mandatory respondents Dongguan CIMC 
Vehicle Co., Ltd. and Qingdao CIMC Special Vehicles Co., Ltd. 
(collectively, CIMC) and Guangdong Fuwa Heavy Industries Co., Ltd. 
(Fuwa), as well as the companies that received, but did not complete, 
Commerce's quantity and value questionnaire. Because CIMC submitted its 
supplemental questionnaire responses in an untimely manner, necessary 
information regarding our separate rate inquiries is not available on 
the record. Further, Fuwa did not provide information on all 
shareholders and ultimate shareholders. Therefore, we continue to find 
that CIMC and Fuwa have not demonstrated eligibility for a separate 
rate. Because none of the companies responded to the best of their 
ability to Commerce's questionnaires, we assigned the highest margin 
alleged in the petition, 188.05 percent, to the China-wide entity.

Combination Rates

    Because no companies qualified for a separate rate, producer/
exporter combination rates were not calculated.

Final Determination

    Commerce determines that the estimated weighted-average dumping 
margin is as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                           Estimated weighted-
                                                                 Estimated weighted-     average dumping margin
                      Producer/exporter                        average dumping margin      adjusted for export
                                                                      (percent)             subsidy offset(s)
                                                                                                (percent)
----------------------------------------------------------------------------------------------------------------
China-Wide Entity...........................................                   188.05                    177.05
----------------------------------------------------------------------------------------------------------------

Disclosure

    The dumping margin calculations in the Preliminary Determination 
were based on AFA.\9\ As noted above, there are no changes to the 
calculations for the Final Determination. Thus, no additional 
disclosure is necessary for this final determination.
---------------------------------------------------------------------------

    \9\ See Preliminary Determination.
---------------------------------------------------------------------------

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 735(c)(1)(B) of the Act, Commerce will instruct U.S. Customs 
and Border Protection (CBP) to continue 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 March 4, 2021, which is the date of 
publication of the Preliminary Determination in the Federal Register.
    Pursuant to section 735(c)(1)(B)(ii) of the Act, upon the 
publication of this notice, Commerce will instruct CBP to require a 
cash deposit equal to the weighted-average amount by which the normal 
value exceeds U.S. price as follows: (1) For all combinations of 
Chinese producers/exporters of subject merchandise that have not 
established eligibility for their own separate rates, the cash deposit 
rate will be equal to the estimated weighted-average dumping margin 
established for the China-wide entity; and (2) for all third-country 
exporters of subject merchandise not listed in the table above, the 
cash deposit rate is the cash deposit rate applicable to the Chinese 
producer/exporter combination (or China-wide entity) that supplied that 
third-country exporter. These suspension of liquidation instructions 
will remain in effect until further notice.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion CVD 
proceeding when CVD provisional measures are in effect. Accordingly, 
where Commerce makes an affirmative determination for domestic subsidy 
pass-through or export subsidies, Commerce offsets the calculated 
estimated weighted-average dumping margin by the appropriate rate(s). 
In this case, there was no demonstration on the record that an 
adjustment for domestic subsidies was warranted in the Preliminary 
Determination, which remains unchanged for the final determination.\10\ 
However, with respect to export subsidies for all respondents, Commerce 
issued the final determination of the concurrent CVD investigation of 
chassis from China, in which it found export-contingent subsidies of 
11.00 percent for CIMC.\11\ Therefore, we have deducted export 
subsidies from the final margin and adjusted the cash deposit rate in 
the chart above. However, suspension of liquidation for provisional 
measures in the companion CVD case has been discontinued; therefore, we 
are not instructing CBP to collect cash deposits based upon the 
adjusted estimated weighted-average dumping margin for those subsidies 
at this time.
---------------------------------------------------------------------------

    \10\ See section VII. Adjustment under Section 777A(f) of the 
Act in the Preliminary Determination PDM.
    \11\ See Chassis CVD Final Determination IDM at 8.
---------------------------------------------------------------------------

International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
ITC of our final affirmative determination of sales at LTFV. Commerce 
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, without the written consent of the Assistant 
Secretary for Enforcement and Compliance. Because Commerce's final 
determination is affirmative, in accordance with section 735(b)(2) 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 or sales (or the 
likelihood of sales) for importation of chassis from China no later 
than 45 days after this final determination. If the ITC determines that 
such injury does exist, Commerce

[[Page 26696]]

will issue an AD order directing CBP to assess, upon further 
instructions by Commerce, antidumping 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 of this notice.

Notification Regarding Administrative Protective Order (APO)

    This notice will serve as a final reminder to parties subject to an 
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 sanctionable violation.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: May 11, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation consists of 
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.
    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. Period of Investigation
IV. Scope of Investigation
V. Adjustment under Section 777A(f) of the Act
VI. Adjustment to Cash Deposit Rate for Export Subsidies
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Discussion of the Issues
    Comment 1: Whether Total AFA is Warranted for CIMC
    Comment 2: Whether CIMC is Eligible for a Separate Rate
IX. Recommendation

[FR Doc. 2021-10346 Filed 5-14-21; 8:45 am]
BILLING CODE 3510-DS-P