[Federal Register Volume 86, Number 129 (Friday, July 9, 2021)]
[Notices]
[Pages 36250-36252]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14638]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-091]


Certain Steel Wheels (12-16.5 Inches Diameter) From the People's 
Republic of China: Preliminary Results of Countervailing Duty 
Administrative Review, Rescission in Part, and Intent To Rescind in 
Part; 2019

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 steel wheels (12-16.5 inches diameter) (certain 
steel wheels) from the People's Republic of China (China) during the 
February 25, 2019, through December 31, 2019, period of review (POR). 
Interested parties are invited to comment on these preliminary results.

DATES: Applicable July 9, 2021.

FOR FURTHER INFORMATION CONTACT: Kyle Clahane, 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) 482-5449.

SUPPLEMENTARY INFORMATION:

Background

    On September 1, 2020, Commerce published a notice of opportunity to 
request administrative review of the countervailing duty (CVD) Order 
\1\ covering the period February 25, 2019, through December 31, 
2019.\2\ Several interested parties requested that Commerce conduct an 
administrative review of the Order and, on February 6, 2021, Commerce 
published in the Federal Register a notice of initiation of an 
administrative review Order in relation to five parties.\3\ On January 
14, 2020, Commerce selected Xingmin Intelligent Transportation Systems 
(Group) and Zhejiang Jingu Company Limited (Zhejiang Jingu) as the 
mandatory respondents in this administrative review.\4\
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    \1\ See Certain Steel Trailer Wheels 12 to 16.5 Inches from the 
People's Republic of China: Antidumping Duty and Countervailing Duty 
Orders, 84 FR 45952 (September 3, 2019) (Order).
    \2\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity to Request Administrative 
Review, 85 FR 54349 (September 1, 2020).
    \3\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 85 FR 68840 (October 30, 2020) (Initiation 
Notice).
    \4\ See Memorandum, ``Respondent Selection,'' dated January 14, 
2021.
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    Subsequent to Commerce's selection of mandatory respondents, the 
sole requests of the mandatory respondents were withdrawn.\5\ On 
February 12, 2021, Commerce selected Xiamen Topu Imports & Export Co., 
Ltd (Xiamen Topu) as a replacement mandatory respondent, and on April 
22, 2021, we selected Shanghai Yata Industry Company Limited (Shanghai 
Yata) as an additional mandatory respondent in this administrative 
review.\6\ On May 6, 2021, Zhejiang Jingu and Shanghai Yata withdrew 
from participation in this administrative review.\7\ On May 27,

[[Page 36251]]

2021, Commerce extended the deadline for the preliminary results of 
this review by 30 days.\8\ Accordingly, the deadline for the 
preliminary results of this review was extended to July 2, 2021.
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    \5\ See Trailstar's Letter, ``Withdrawal of Request for 
Administrative Review of the Countervailing Duty Order on Certain 
Steel Wheels 12 to 16.5 Inches in Diameter from the People Republic 
of China,'' dated January 28, 2021.
    \6\ See Memorandum, ``Respondent Selection: Selection of 
Replacement Mandatory Respondent,'' dated February 12, 2021; see 
also Memorandum, ``Respondent Selection: Selection of Replacement 
Mandatory Respondent,'' dated April 22, 2021.
    \7\ See Zhejiang Jingu's Letter, ``Notice Regarding 
Participation in Administrative Review,'' dated May 6, 2021. In the 
investigation, Commerce found that Shanghai Yata was affiliated 
through cross-ownership with Zhejiang Jingu. Commerce also 
determined that four other Chinese companies were cross-owned with 
Zhejiang Jingu: Shangdong Jingu Auto Parts Co., Ltd.; An'Gang Jingu 
(Hangzhou) Metal Materials Co., Ltd.; Zhejiang Wheel World Co., 
Ltd.; and Hangzhou Jingu New Energy Development Co. Ltd. See Certain 
Steel Wheels 12 to 16.5 Inches in Diameter from the People's 
Republic of China: Final Affirmative Countervailing Duty 
Determination, and Final Affirmative Determination of Critical 
Circumstances, 84 FR 32723 (July 9, 2019), and accompanying Issues 
and Decisions Memorandum.
    \8\ See Memorandum, ``Extension of Deadline for the Preliminary 
Results of Countervailing Duty Administrative Review; 2019,'' dated 
May 27, 2021.
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    For events that occurred since the Initiation Notice, see the 
Preliminary Decision Memorandum.\9\ A list of topics discussed in the 
Preliminary Decision Memorandum is included in the appendix 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 https://access.trade.gov. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/.
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    \9\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Administrative Review of the Countervailing Duty 
Order on Certain Steel Wheels (12-16.5 inches diameter) 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 Order

    The products covered by the Order are certain on-the-road steel 
wheels, discs, and rims for tubeless tires with a nominal wheel 
diameter of 12 inches to 16.5 inches, regardless of width. For a 
complete description of the scope of the Order, see the Preliminary 
Decision Memorandum.

Methodology

    Commerce is conducting this administrative review in accordance 
with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the 
Act). In reaching these preliminary results, Commerce relied on facts 
otherwise available, with the application of adverse inferences.\10\ 
For further information, see ``Use of Facts Otherwise Available and 
Application of Adverse Inferences'' in the accompanying Preliminary 
Decision Memorandum.
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    \10\ See section 776 of the Act.
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Partial Rescission of Administrative Review

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if the parties that 
requested a review withdraw the request within 90 days of the date of 
publication of the notice of initiation. We received a timely 
withdrawal of the requests for review, for which no other parties 
requested a review, for Xingmin Intelligent Transportation Systems 
(Group) (Xingmin Intelligent).\11\ Therefore, in accordance with 19 CFR 
351.213(d)(1), Commerce is rescinding this review of the Order with 
respect to this company.
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    \11\ See TTT's Letter, ``Withdrawal of Request for 
Administrative Review of the Countervailing Duty Order on Certain 
Steel Wheels 12 to 16.5 Inches in Diameter from the People Republic 
of China,'' dated January 15, 2021.
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Intent To Rescind Administrative Review, in Part

    It is Commerce's practice to rescind an administrative review of a 
countervailing duty order, pursuant to 19 CFR 351.213(d)(3), when there 
are no reviewable entries of subject merchandise during the POR for 
which liquidation is suspended.\12\ Normally, upon completion of an 
administrative review, the suspended entries are liquidated at the 
countervailing duty assessment rate calculated for the review 
period.\13\ Therefore, for an administrative review of a company to be 
conducted, there must be a reviewable, suspended entry that Commerce 
can instruct CBP to liquidate at the calculated countervailing duty 
assessment rate calculated for the review period.\14\
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    \12\ See, e.g., Lightweight Thermal Paper from the People's 
Republic of China: Notice of Rescission of Countervailing Duty 
Administrative Review; 2015, 82 FR 14349 (March 20, 2017); see also 
Circular Welded Carbon Quality Steel Pipe from the People's Republic 
of China: Rescission of Countervailing Duty Administrative Review; 
2017, 84 FR 14650 (April 11, 2019).
    \13\ See 19 CFR 351.212(b)(2).
    \14\ See 19 CFR 351.213(d)(3).
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    According to the CBP import data, one of the five companies subject 
to this review, Hangzhou Antego Industry Co. Ltd, which was not chosen 
as a mandatory respondent and for which its request for review was not 
withdrawn, did not have reviewable entries of subject merchandise 
during the POR for which liquidation is suspended. Accordingly, in the 
absence of reviewable, suspended entries of subject merchandise during 
the POR by Hangzhou Antego Industry Co. Ltd, we intend to rescind this 
administrative review, with respect to Hangzhou Antego Industry Co. 
Ltd, in accordance with 19 CFR 351.213(d)(3).

Use of Facts Otherwise Available and Application of Adverse Inferences

    Subsequent to the initiation of this administrative review, 
Commerce issued initial questionnaires to the Government of China (GOC) 
dated January 21, 2021, February 16, 2021 and April 22, 2021, with a 
request for the GOC to forward the questionnaires to the 
respondents.\15\ The GOC, Shanghai Yata, and Xiamen Topu failed to 
respond to the questionnaire by the specified deadlines. Therefore, 
because necessary information is not available on the record and 
because Shanghai Yata, Xiamen Topu, and the GOC failed to respond to 
Commerce's request for information, we preliminarily find that the use 
of facts available is warranted, pursuant to sections 776(a)(1) and 
776(a)(2)(A), (B) and (C) of the Tariff Act of 1930, as amended (the 
Act). Moreover, because Shanghai Yata, Xiamen Topu, and the GOC did not 
cooperate to the best of their ability, pursuant to 776(b) of the Act, 
we preliminarily find that use of adverse facts available (AFA) is 
warranted to ensure that Shanghai Yata and Xiamen Topu do not obtain a 
more favorable result by failing to cooperate than if they had fully 
complied with our requests for information.
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    \15\ See Commerce's Letter, ``Countervailing Duty 
Questionnaire,'' dated January 21, 2021 (Initial Questionnaire); see 
also Commerce's Letter, ``Selection of Replacement Mandatory 
Respondent,'' dated February 16, 2021; and Commerce's Letter, 
``Selection of Additional Replacement Respondent,'' dated April 22, 
2021. In its letter to the GOC, Commerce established the deadlines 
of March 2, 2021 for the Section III response identifying affiliated 
companies, and of March 25, 2021 for the remainder of Section III 
and the GOC's responses to the remainder of the Initial 
Questionnaire.
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    In the investigation, we determined that Shanghai Yata was cross-
owned with Zhejiang Jingu during the periods of time relevant to the 
investigation.\16\ Since the record of this administrative review 
contains no factual information that would lead Commerce to reconsider 
this cross-ownership determination, we preliminarily determine that 
Shanghai Yata remained cross-owned with Zhejiang Jingu during the POR. 
Accordingly, Zhejiang Jingu and its cross-owned companies, including 
Shanghai Yata are subject to the AFA

[[Page 36252]]

rate. For further information, see ``Use of Facts Otherwise Available 
and Adverse Inferences'' in the Preliminary Decision Memorandum.\17\
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    \16\ See Certain Steel Wheels 12 to 16.5 Inches in Diameter from 
the People's Republic of China: Final Affirmative Countervailing 
Duty Determination, and Final Affirmative Determination of Critical 
Circumstances, 84 FR 32723 (July 9, 2019), and accompanying Issues 
and Decisions Memorandum (IDM). During the CVD investigation of 
certain steel wheels from China, Commerce determined that Zhejiang 
Jingu and Shanghai Yata were cross-owned companies. While the 
company that requested a review of Zhejiang Jingu withdrew its 
request for Zhejiang Jingu, Shanghai Yata remained in the 
administrative review because the company that filed a request for 
review of Shanghai Yata did not withdraw its request for review. 
Thus, because Shanghai Yata was still subject to the administrative 
review, we issued an initial questionnaire to Shanghai Yata. All 
cross-owned companies of Shanghai Yata were required to file a 
response to the questionnaire, including Zhejiang Jingu, if the 
companies remain cross-owned during the POR.
    \17\ See Preliminary Decision Memorandum at 5.
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Preliminary Results of Review

------------------------------------------------------------------------
                                                                  Net
                                                                subsidy
                           Company                              rate ad
                                                               valoreum
                                                               (percent)
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Zhejiang Jingu Company Limited and Shanghai Yata Industry         388.31
 Company Limited \18\.......................................
Xiamen Topu Imports & Export Co., Ltd.......................      388.31
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Disclosure
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    \18\ In the investigation, we found that Zhejiang Jingu was 
cross-owned with An Gang Jingu (Hangzhou) Metal Materials Co., Ltd.; 
Hangzhou Jingu New Energy Development Co. Ltd.; Shangdong Jingu Auto 
Parts Co., Ltd.; Zhejiang Jingu Automobile Components; Zhejiang 
Wheel World Co., Ltd.; and Shanghai Yata Industry Company Limited. 
There is no information on the record of this administrative review 
that would lead Commerce to reconsider that determination, 
therefore, we preliminarily continue to find these companies cross-
owned.
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    Normally, Commerce discloses to interested parties the calculations 
performed in connection with the preliminary results of a review within 
ten days of its public announcement, or if there is no public 
announcement, within five days of the date of publication of the notice 
of preliminary results in the Federal Register, in accordance with 19 
CFR 351.224(b). However, because Commerce preliminarily applied AFA to 
the three companies that remain in the administrative review, in 
accordance with section 776 of the Act, and because our calculation of 
the AFA subsidy rate is outlined in the Preliminary Decision 
Memorandum,\19\ there are no further calculations to disclose.
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    \19\ Id.
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Public Comment

    Interested parties may submit case briefs no later than 30 days 
after the date of publication of these preliminary results of 
review.\20\ Rebuttals to case briefs may be filed no later than seven 
days after the case briefs are filed, and all rebuttal comments must be 
limited to comments raised in the case briefs.\21\ Note that Commerce 
has temporarily modified certain of its requirements for serving 
documents containing business proprietary information until further 
notice.\22\
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    \20\ See 19 CFR 351.309(c).
    \21\ See 19 CFR 351.309(d).
    \22\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020); and Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID-19; Extension of Effective Period, 85 FR 41363 (July 10, 
2020).
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Assessment Rates

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the companies 
shown above. Upon completion of the administrative review, consistent 
with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2) Commerce 
shall determine, and CBP shall assess, countervailing duties on all 
appropriate entries covered by this review. For the companies for which 
this review is rescinded, Commerce will instruct CBP to assess 
countervailing duties on all appropriate entries at a rate equal to the 
cash deposit of estimated countervailing duties required at the time of 
entry, or withdrawal from warehouse, for consumption, during the period 
February 25, 2019 through December 31, 2019, in accordance with 19 CFR 
351.212(c)(l)(i).
    Commerce intends to issue assessment instructions to CBP no earlier 
than 35 days after the date of publication of the final results of this 
review in the Federal Register. If a timely summons is filed at the 
U.S. Court of International Trade, the assessment instructions will 
direct CBP not to liquidate relevant entries until the time for parties 
to file a request for a statutory injunction has expired (i.e., within 
90 days of publication).

Cash Deposit Requirements

    In accordance with section 751(a)(1) of the Act, Commerce intends, 
upon publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amounts shown for 
each of the respective companies listed above on shipments of subject 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of the final results of this 
administrative review. For all non-reviewed firms, we will instruct CBP 
to continue to collect cash deposits at the most recent company-
specific or all-others rate applicable to the company. These cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.

Notification to Interested Parties

    These preliminary results are issued and published pursuant to 
sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 351.221(b)(4).

    Dated: July 1, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Intent To Rescind Administrative Review, In Part
IV. Partial Rescission of Administrative Review
V. Scope of the Order
VI. Use of Facts Otherwise Available and Application of Adverse 
Inferences
    a. Legal Standard
    b. Application of AFA to the GOC and Non-Responsive Mandatory 
Respondents Shanghai Yata Xiamen Topu, and Zhejiang Jingu
    c. Selection of the AFA Rates
VII. Conclusion

[FR Doc. 2021-14638 Filed 7-8-21; 8:45 am]
BILLING CODE 3510-DS-P