[Federal Register Volume 86, Number 127 (Wednesday, July 7, 2021)]
[Notices]
[Pages 35741-35745]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14316]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-134]


Certain Metal Lockers and Parts 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 metal lockers and parts thereof (metal lockers) from the 
People's Republic China (China).

DATES: Applicable July 7, 2021.

FOR FURTHER INFORMATION CONTACT: Alex Cipolla or Charles Doss, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4956 or (202) 482-4474, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The petitioners in this investigation are List Industries, Inc., 
Lyon LLC, Penco Products, Inc., and Tennsco LLC.\1\ In addition to the 
Government of China, the selected mandatory respondent in this 
investigation is Zhejiang Xingyi Metal Products Co., Ltd. (Zhejiang 
Xingyi).
---------------------------------------------------------------------------

    \1\ On October 15, 2020, the petitioners notified Commerce that 
Lyon LLC was withdrawing as a petitioner in this investigation. On 
November 6, 2020, DeBourgh Manufacturing Co. was listed with List 
Industries, Inc., Penco Products, Inc., and Tennsco LLC as the 
petitioners in this investigation.
---------------------------------------------------------------------------

    On December 14, 2020, Commerce published the Preliminary 
Determination in the Federal Register.\2\ In the Preliminary 
Determination, in accordance with section 705(a)(1) of the Tariff Act 
of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce 
aligned the final CVD determination in this investigation with the 
final antidumping duty (AD) determination in the companion AD 
investigation of metal lockers from China. On March 4, 2021, Commerce 
published its

[[Page 35742]]

amendment of the scope of the Preliminary Determination.\3\
---------------------------------------------------------------------------

    \2\ See Certain Metal Lockers and Parts Thereof from the 
People's Republic of China: Preliminary Affirmative Countervailing 
Duty Determination and Alignment of Final Determination with Final 
Antidumping Duty Determination, 85 FR 80771 (December 14, 2020) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum (PDM).
    \3\ See Certain Metal Lockers and Parts Thereof from the 
People's Republic of China: Amended Preliminary Affirmative 
Countervailing Duty Determination, 86 FR 12611 (March 4, 2021).
---------------------------------------------------------------------------

    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 which is hereby adopted by this 
notice.\4\ 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 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/.
---------------------------------------------------------------------------

    \4\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Certain Metal Lockers and Parts Thereof from the 
People's Republic of China,'' dated concurrently with, and hereby 
adopted by, this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------

Period of Investigation

    The period of investigation is January 1, 2019, through December 
31, 2019.

Scope of the Investigation

    The products covered by this investigation are metal lockers from 
China. For a full description of the scope of this investigation, see 
Appendix I.

Scope Comments

    On February 2, 2021, we issued the Preliminary Scope Decision 
Memorandum.\5\ We received comments from interested parties in regards 
to the Preliminary Scope Decision Memorandum, which we addressed in the 
Final Scope Decision Memorandum.\6\ Commerce has made no changes to the 
scope of this investigation since the Preliminary Determination.
---------------------------------------------------------------------------

    \5\ See Memorandum, ``Antidumping Duty and Countervailing Duty 
Investigations of Certain Metal Lockers and Parts Thereof from the 
People's Republic of China: Preliminary Scope Decision Memorandum,'' 
dated February 2, 2021 (Preliminary Scope Decision Memorandum).
    \6\ See Memorandum, ``Antidumping Duty and Countervailing Duty 
Investigations of Certain Metal Lockers and Parts Thereof from the 
People's Republic of China: Final Scope Decision Memorandum,'' dated 
concurrently with, and hereby adopted by, this notice (Final Scope 
Decision Memorandum).
---------------------------------------------------------------------------

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, and to which we responded in the Issues and Decision 
Memorandum, is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of 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.\7\ For a full description 
of the methodology underlying our final determination, see the Issues 
and Decision Memorandum.
---------------------------------------------------------------------------

    \7\ 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.
---------------------------------------------------------------------------

    In making this final determination, Commerce relied, in part, on 
facts available pursuant to section 776(a) of the Act. Additionally, as 
discussed in the Issues and Decision Memorandum, because one or more 
respondents did not act to the best of their ability in responding to 
our requests for information, we drew adverse inferences, where 
appropriate, in selecting from among the facts otherwise available, 
pursuant to section 776(b) of the Act. This includes eight companies 
that did not respond to Commerce's quantity and value questionnaire; as 
described in the Preliminary Determination,\8\ we have applied an 
adverse inference in selection of facts available for determining the 
subsidy rates for these companies, pursuant to section 776(d) of the 
Act. For further information, see the section ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the accompanying Issues and 
Decision Memorandum.
---------------------------------------------------------------------------

    \8\ See Preliminary Determination PDM at 11-19, section 
``Application of AFA: Non-Responsive Companies.''
---------------------------------------------------------------------------

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.\9\
---------------------------------------------------------------------------

    \9\ See Commerce's Letter, In Lieu of Verification 
Questionnaire, dated March 5, 2021.
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to Zhejiang Xingi's subsidy rate 
calculations, the adverse facts available rate assigned to firms that 
did not respond to Commerce's quantity and value questionnaire, and the 
all-others rate. For a discussion of these changes, see the Issues and 
Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, Commerce 
calculated a countervailable subsidy rate for the individually 
investigated exporter/producer of the subject merchandise. Section 
705(c)(5)(A) of the Act provides that, in the final 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, as discussed in the Issues and Decision 
Memorandum, Commerce calculated an individual estimated countervailable 
subsidy rate for Zhejiang Xingyi, the only individually examined 
exporter/producer in this investigation, that was not zero, de minimis, 
or based entirely under section 776 of the Act. As a result, the 
estimated weighted-average rate calculated for Zhejiang Xingyi is the 
rate assigned to all other producers and exporters, pursuant to section 
705(c)(5)(A)(i) of the Act.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Zhejiang Xingyi Metal Products Co., Ltd.................           24.66

[[Page 35743]]

 
All Others..............................................           24.66
Changshu Taron Machinery Equipment Manufacturing Co.,             131.51
 Ltd....................................................
Guangdong Yuhua Building Materials Co., Ltd.............          131.51
Jiangsu Tongrun Tool Cabinet Co., Ltd...................          131.51
Luoyang Mas Younger Office Furniture Co./Louyang Mas              131.51
 Younger Export and Import Co...........................
Luoyang Shidiu Import and Export Co., Ltd...............          131.51
Suzhou Yuanda Commercial Products Co. Ltd...............          131.51
Winnsen Industry Co., Ltd...............................          131.51
Xiamen Headleader Technology............................          131.51
------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose to interested parties the calculations 
and analysis performed in this final determination within five days of 
any public announcement or, if there is no public announcement, within 
five days of the date of the 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 as described in the ``Scope of the Investigation'' 
section entered, or withdrawn from warehouse, for consumption, 
effective December 14, 2020, which is the date of publication of the 
Preliminary Determination in the Federal Register. In accordance with 
section 703(d) of the Act, effective April 13, 2021, we instructed CBP 
to discontinue the suspension of liquidation of all entries at that 
time, but to continue the suspension of liquidation of all entries 
between December 14, 2020, and April 12, 2021.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, reinstate 
the suspension of liquidation and 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.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our affirmative determination that countervailable subsidies are 
being provided to producers and exporters of metal lockers 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 metal lockers from China no later than 45 days after our 
final determination. 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.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an administrative protective order (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 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: June 28, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers certain metal lockers, 
with or without doors, and parts thereof (metal lockers). The 
subject metal lockers are secure metal storage devices less than 27 
inches wide and less than 27 inches deep, whether floor standing, 
installed onto a base or wall-mounted. In a multiple locker assembly 
(whether a welded locker unit, otherwise assembled locker unit or 
knocked down unit or kit), the width measurement shall be based on 
the width of an individual locker not the overall unit dimensions. 
All measurements in this scope are based on actual measurements 
taken on the outside dimensions of the single-locker unit. The 
height is the vertical measurement from the bottom to the top of the 
unit. The width is the horizontal (side to side) measurement of the 
front of the unit, and the front of the unit is the face with the 
door or doors or the opening for internal access of the unit if 
configured without a door. The depth is the measurement from the 
front to the back of the unit. The subject certain metal lockers 
typically include the bodies (back, side, shelf, top and bottom 
panels), door frames with or without doors which can be integrated 
into the sides or made separately, and doors.
    The subject metal lockers typically are made of flat-rolled 
metal, metal mesh and/or expanded metal, which includes but is not 
limited to alloy or non-alloy steel (whether or not galvanized or 
otherwise metallically coated for corrosion resistance), stainless 
steel, or aluminum, but the doors may also include transparent 
polycarbonate, Plexiglas or similar transparent material or any 
combination thereof. Metal mesh refers to both wire mesh and 
expanded metal mesh. Wire mesh is a wire product in which the 
horizontal and transverse wires are welded at the cross-section in a 
grid pattern. Expanded metal mesh is made by slitting and stretching 
metal sheets to make a screen of diamond or other shaped openings.
    Where the product has doors, the doors are typically configured 
with or for a handle or other device or other means that permit the 
use of a mechanical or electronic lock or locking mechanism, 
including, but not limited to: A combination lock, a padlock, a key 
lock (including cylinder locks) lever or knob lock, electronic key 
pad, or other

[[Page 35744]]

electronic or wireless lock. The handle and locking mechanism, if 
included, need not be integrated into one another. The subject 
locker may or may not also enter with the lock or locking device 
included or installed. The doors or body panels may also include 
vents (including wire mesh or expanded metal mesh vents) or 
perforations. The bodies, body components and doors are typically 
powder coated, otherwise painted or epoxy coated or may be 
unpainted. The subject merchandise includes metal lockers imported 
either as welded or otherwise assembled units (ready for 
installation or use) or as knocked down units or kits (requiring 
assembly prior to installation or use).
    The subject lockers may be shipped as individual or multiple 
locker units preassembled, welded, or combined into banks or tiers 
for ease of installation or as sets of component parts, bulk packed 
(i.e., all backs in one package, crate, rack, carton or container 
and sides in another package, crate, rack, carton or container) or 
any combination thereof. The knocked down lockers are shipped 
unassembled requiring a supplier, contractor or end-user to assemble 
the individual lockers and locker banks prior to installation.
    The scope also includes all parts and components of lockers made 
from flat-rolled metal or expanded metal (e.g., doors, frames, 
shelves, tops, bottoms, backs, side panels, etc.) as well as 
accessories that are attached to the lockers when installed 
(including, but not limited to, slope tops, bases, expansion filler 
panels, dividers, recess trim, decorative end panels, and end caps) 
that may be imported together with lockers or other locker 
components or on their own. The particular accessories listed for 
illustrative purposes are defined as follows:
    a. Slope tops: Slope tops are slanted metal panels or units that 
fit on the tops of the lockers and that slope from back to front to 
prevent the accumulation of dust and debris on top of the locker and 
to discourage the use of the tops of lockers as storage areas. Slope 
tops come in various configurations including, but not limited to, 
unit slope tops (in place of flat tops), slope hoods made of a back, 
top and end pieces which fit over multiple units and convert flat 
tops to a sloping tops, and slope top kits that convert flat tops to 
sloping tops and include tops, backs and ends.
    b. Bases: Locker bases are panels made from flat-rolled metal 
that either conceal the legs of the locker unit, or for lockers 
without legs, provide a toe space in the front of the locker and 
conceal the flanges for floor anchoring.
    c. Expansion filler panel: Expansion filler panels or fillers 
are metal panels that attach to locker units to cover columns, pipes 
or other obstacles in a row of lockers or fill in gaps between the 
locker and the wall. Fillers may also include metal panels that are 
used on the sides or the top of the lockers to fill gaps.
    d. Dividers: Dividers are metal panels that divide the space 
within a locker unit into different storage areas.
    e. Recess trim: Recess trim is a narrow metal trim that bridges 
the gap between lockers and walls or soffits when lockers are 
recessed into a wall.
    f. Decorative end panels: End panels fit onto the exposed ends 
of locker units to cover holes, bolts, nuts, screws and other 
fasteners. They typically are painted to match the lockers.
    g. End caps: End caps fit onto the exposed ends of locker units 
to cover holes, bolts, nuts, screws and other fasteners.
    The scope also includes all hardware for assembly and 
installation of the lockers and locker banks that are imported with 
or shipped, invoiced, or sold with the imported locker or locker 
system except the lock.
    Excluded from the scope are wire mesh lockers. Wire mesh lockers 
are those with each of the following characteristics:
    (1) At least three sides, including the door, made from wire 
mesh;
    (2) the width and depth each exceed 25 inches; and
    (3) the height exceeds 90 inches.
    Also excluded are lockers with bodies made entirely of plastic, 
wood, or any nonmetallic material.
    Also excluded are exchange lockers with multiple individual 
locking doors mounted on one master locking door to access multiple 
units. Excluded exchange lockers have multiple individual storage 
spaces, typically arranged in tiers, with access doors for each of 
the multiple individual storage space mounted on a single frame that 
can be swung open to allow access to all of the individual storage 
spaces at once. For example, uniform or garment exchange lockers are 
designed for the distinct function of securely and hygienically 
exchanging clean and soiled uniforms. Thus, excluded exchange 
lockers are a multi-access point locker whereas covered lockers are 
a single access point locker for personal storage. The excluded 
exchange lockers include assembled exchange lockers and those that 
enter in `knock down' form in which all of the parts and components 
to assemble a completed exchange locker unit are packaged together. 
Parts for exchange lockers that are imported separately from the 
exchange lockers in `knock down' form are not excluded.
    Also excluded are metal lockers that are imported with an 
installed electronic, internet-enabled locking device that permits 
communication or connection between the locker's locking device and 
other internet connected devices.
    Also excluded are locks and hardware and accessories for 
assembly and installation of the lockers, locker banks and storage 
systems that are separately imported in bulk and are not 
incorporated into a locker, locker system or knocked down kit at the 
time of importation. Such excluded hardware and accessories include 
but are not limited to locks and bulk imported rivets, nuts, bolts, 
hinges, door handles, door/frame latching components, and coat 
hooks. Accessories of sheet metal, including but not limited to end 
panels, bases, dividers and sloping tops, are not excluded 
accessories.
    Mobile tool chest attachments that meet the physical description 
above are covered by the scope of this investigation, unless such 
attachments are covered by the scope of the orders on certain tool 
chests and cabinets from China. If the orders on certain tool chests 
and cabinets from China are revoked, the mobile tool chest 
attachments from China will be covered by the scope of this 
investigation.
    The scope also excludes metal safes with each of the following 
characteristics: (1) Pry resistant, concealed hinges; (2) body walls 
and doors of steel that are at least 17 gauge (0.05625 inch or 
1.42874 mm thick); and (3) an integrated locking mechanism that 
includes at least two round steel bolts 0.75 inch (19 mm) or larger 
in diameter; or three bolts 0.70 inch (17.78 mm) or more in 
diameter; or four or more bolts at least 0.60 inch (15.24 mm) or 
more in diameter, that project from the door into the body or frame 
of the safe when in the locked position.
    The scope also excludes gun safes meeting each of the following 
requirements:
    (1) Shall be able to fully contain firearms and provide for 
their secure storage.
    (2) Shall have a locking system consisting of at minimum a 
mechanical or electronic combination lock. The mechanical or 
electronic combination lock utilized by the safe shall have at least 
10,000 possible combinations consisting of a minimum three numbers, 
letters, or symbols. The lock shall be protected by a casehardened 
(Rc 60+) drill-resistant steel plate, or drill-resistant material of 
equivalent strength.
    (3) Boltwork shall consist of a minimum of three steel locking 
bolts of at least \1/2\ inch thickness that intrude from the door of 
the safe into the body of the safe or from the body of the safe into 
the door of the safe, which are operated by a separate handle and 
secured by the lock.
    (4) The exterior walls shall be constructed of a minimum 12-
gauge thick steel for a single-walled safe, or the sum of the steel 
walls shall add up to at least 0.100 inches for safes with walls 
made from two pieces of flat-rolled steel.
    (5) Doors shall be constructed of a minimum one layer of 7-gauge 
steel plate reinforced construction or at least two layers of a 
minimum 12-gauge steel compound construction.
    (6) Door hinges shall be protected to prevent the removal of the 
door. Protective features include, but are not limited to: Hinges 
not exposed to the outside, interlocking door designs, dead bars, 
jeweler's lugs and active or inactive locking bolts.
    The scope also excludes metal storage devices that (1) have two 
or more exterior exposed drawers regardless of the height of the 
unit, or (2) are no more than 30 inches tall and have at least one 
exterior exposed drawer.
    Also excluded from the scope are free standing metal cabinets 
less than 30 inches tall with a single opening, single door and an 
installed tabletop.
    The scope also excludes metal storage devices less than 27 
inches wide and deep that (1) have two doors hinged on the right and 
left side of the door frame respectively covering a single opening 
and that open from the middle toward the outer frame; or (2) are 
free standing or wall-mounted, single-opening units 20 inches or 
less high with a single door.
    The subject certain metal lockers are classified under 
Harmonized Tariff Schedule

[[Page 35745]]

of the United States (HTSUS) subheading 9403.20.0078. Parts of 
subject certain metal lockers are classified under HTS subheading 
9403.90.8041. In addition, subject certain metal lockers may also 
enter under HTS subheading 9403.20.0050. While HTSUS subheadings are 
provided for convenience and Customs purposes, the written 
description of the scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation
V. Use of Facts Otherwise Available and Adverse Inferences
VI. Analysis of Programs
VII. Analysis of Comments
    Comment 1: Export Buyer's Credit Program
    Comment 2: Whether Commerce Should Use Non-Alloy Hot-Rolled 
Steel and Galvanized Steel Benchmarks
    Comment 3: Whether Zhejiang Xingyi Verified the Accuracy of Its 
Reported Purchases of Galvanized Steel and Stainless Steel Coil
    Comment 4: Electricity for Less Than Adequate Remuneration 
(LTAR) Program
    Comment 5: Whether Commerce Should Continue To Apply AFA to the 
Provision of Steel Inputs for LTAR
    Comment 6: Most Favored Nation Duty Rates
VIII. Recommendation

[FR Doc. 2021-14316 Filed 7-6-21; 8:45 am]
 BILLING CODE 3510-DS-P