[Federal Register Volume 86, Number 136 (Tuesday, July 20, 2021)]
[Notices]
[Pages 38270-38272]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-15415]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-082, C-570-083]


Certain Steel Wheels From the People's Republic of China: Notice 
of Covered Merchandise Referral

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

SUMMARY: Pursuant to the Enforce and Protect Act of 2015 (EAPA), the 
Department of Commerce (Commerce) received a covered merchandise 
referral from U.S. Customs and Border Protection (CBP) in connection 
with a CBP EAPA investigation concerning the antidumping duty (AD) and 
countervailing duty (CVD) orders on certain steel wheels from the 
People's Republic of China (China). In accordance with EAPA, Commerce 
intends to determine whether the merchandise subject to the referral is 
covered by the scope of these orders and promptly transmit its 
determination to CBP. Commerce is providing notice of the referral and 
inviting participation from interested parties.

DATES: Applicable July 20, 2021.

FOR FURTHER INFORMATION CONTACT: Elfi Blum or Jacqueline Arrowsmith, 
AD/CVD Operations, Office VII, Enforcement & Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-0197 or (202) 
482-5255, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On February 24, 2016, the Trade Facilitation and Trade Enforcement 
Act of 2015 was signed into law, which contains Title IV-Prevention of 
Evasion of Antidumping and Countervailing Duty Orders, commonly 
referred to as the Enforce and Protect Act of 2015 or EAPA.\1\ 
Effective August 22, 2016, section 421 of EAPA added section 517 to the 
Tariff Act of 1930, as amended (the Act), which establishes a formal 
process for CBP to investigate allegations of the evasion of AD and CVD 
orders. Section 517(b)(4)(A) of the Act provides a procedure whereby 
if, during the course of an EAPA investigation, CBP is unable to 
determine whether the merchandise at issue is covered merchandise 
within the meaning of section 517(a)(3) of the Act, then it shall refer 
the matter to Commerce to make such a determination. Section 517(a)(3) 
of the Act defines covered merchandise as merchandise that is subject 
to an AD order issued under section 736 of the Act or a CVD order 
issued under section 706 of the Act. Section 517(b)(4)(B) of the Act 
states that Commerce, after receiving a covered merchandise referral 
from CBP, shall determine whether the merchandise is covered 
merchandise and promptly transmit its determination to CBP. The Act 
does not establish a deadline by which Commerce must issue its 
determination.
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    \1\ Title IV--Prevention of Evasion of Antidumping and 
Countervailing Duty Orders, Public Law 114-125, 130 Stat. 122, 155 
(February 24, 2016).
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    On June 9, 2021, Commerce received a covered merchandise referral 
from CBP regarding CBP EAPA Investigation No. 7509,\2\ which concerns 
the AD and CVD orders on certain steel wheels from China.\3\ CBP 
explained that Accuride Corporation (Accuride) and Maxion Wheels Akron 
LLC (Maxion) alleged that Vanguard National Trailer Corporation 
(Vanguard) imported steel wheels produced by Chinese manufacturer 
Zhejiang Jingu Company Limited (Jingu) that were transshipped through 
Jingu's affiliate in Thailand, Asia Wheel Co. Ltd. (Asia Wheel), and 
entered into the United States as a product of Thailand to evade the 
Orders. CBP's Office of Trade initiated an EAPA investigation based on 
the evidence in the allegation submitted by Accuride and Maxion that 
reasonably suggested that Vanguard entered steel wheels into the 
customs territory of the United States by means of evasion.\4\
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    \2\ See CBP's Letter, ``Covered Merchandise Referral Request for 
EAPA Investigation 7509, Imported by Vanguard National Trailer 
Corporation: Antidumping and countervailing duty Orders on Certain 
Steel Wheels 22.5 and 24.5 Inches in Diameter from the People's 
Republic of China,'' dated June 9, 2021 (CBP's EAPA 75009 Letter). 
Commerce intends to make available this document and any supporting 
documents on Enforcement and Compliance's Antidumping Duty and 
Countervailing Duty Centralized Electronic Service System (ACCESS) 
with this notice.
    \3\ See Certain Steel Wheels from the People's Republic of 
China: Antidumping and Countervailing Duty Orders, 84 FR 24098 (May 
24, 2019) (Orders).
    \4\ See CBP's EAPA 75009 Letter at 2.
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    CBP further informed Commerce on August 18, 2020, that the Trade 
Remedy Law Enforcement Directorate of CBP's Office of Trade initiated 
an EAPA investigation based on the reasonableness of the evidence in 
Accuride and Maxion's allegation that Vanguard imported merchandise 
covered by the Orders into the customs territory of the United States 
by means of evasion.\5\ In response, Vanguard and Asia Wheel stated 
that the steel wheels at issue were not subject to the Orders, because 
they were produced in Thailand using rims that did not originate in 
China.\6\ Accordingly, CBP has requested that Commerce issue a 
determination as to whether steel wheels produced in Thailand by Asia 
Wheel from Thai-origin steel wheel rims and Chinese-origin steel wheel 
discs, are covered merchandise.
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    \5\ Id. at 1-2.
    \6\ Id. at 2.
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    We note that this merchandise is already the subject of a scope 
ruling request previously submitted to Commerce by Asia Wheel,\7\ and 
is currently under consideration in ongoing scope inquiries of the 
Orders.\8\
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    \7\ See Asia Wheel's Letter, ``Certain Steel Wheels from the 
People's Republic of China: Request for Scope Ruling for Asia 
Wheel's Steel Truck Wheels,'' dated February 11, 2021.
    \8\ See Letter from Commerce ``Antidumping and Countervailing 
Duty Orders on Certain Steel Wheels from the People's Republic of 
China (A-570-082, C-570-083): Initiation of Asia Wheel Scope 
Inquiry,'' dated May 12, 2021.
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Notification to Interested Parties

    Commerce is hereby notifying interested parties that it has 
received the covered merchandise referral referenced above. As the 
covered merchandise referral requests a determination on

[[Page 38271]]

merchandise identified in a request for a scope ruling previously 
submitted to Commerce and currently under consideration, we will 
address the covered merchandise referral and Asia Wheel's scope ruling 
request in the ongoing scope inquires of the Orders. Based on our 
determinations in the ongoing scope inquiries of the Orders, we intend 
to notify CBP as to whether the merchandise subject to the referral is 
covered merchandise within the meaning of section 517(a)(3) of the Act.
    Commerce intends to provide interested parties with the opportunity 
to participate in this EAPA referral as part of the ongoing scope 
inquiries, including through the submission of comments, and, if 
appropriate, new factual information and verification. Specifically, 
Commerce will notify parties on the segment-specific service list for 
these segments of the proceedings of a schedule for comments. In 
addition, Commerce may request factual information from any person to 
assist in making its determination and may verify submissions of 
factual information, if Commerce determines that such verification is 
appropriate. C
    Parties are also hereby notified that this is the only notice that 
Commerce intends to publish in the Federal Register concerning this 
covered merchandise referral. Interested parties that wish to 
participate in these scope inquiries, and receive notice of the final 
determinations, must submit their letters of appearance as discussed 
below. Further, any party desiring access to business proprietary 
information in these scope inquiries must file an application for 
access to business proprietary information under administrative 
protective order (APO), as discussed below.
    Further, Commerce may consider conducting a separate anti-
circumvention inquiry regarding the merchandise described in CBP's 
covered merchandise referral, if parties submit the necessary 
information addressing the criteria for an anti-circumvention inquiry, 
in accordance with section 781 of the Act. Interested parties are 
requested to file such comments and information onto the record of the 
ongoing scope inquiries within 30 days of the publication of this 
notice in the Federal Register.
    Finally, we note that covered merchandise referrals constitute a 
new type of segment of a proceeding at Commerce and, therefore, 
Commerce intends to develop its practice and procedures in this area as 
it gains more experience.

Scope of the Orders

    The products covered by the Orders are certain on-the-road steel 
wheels, discs, and rims for tubeless tires, with a nominal rim diameter 
of 22.5 inches and 24.5 inches, regardless of width. Certain on-the-
road steel wheels with a nominal wheel diameter of 22.5 inches and 24.5 
inches are generally for Class 6, 7, and 8 commercial vehicles (as 
classified by the Federal Highway Administration Gross Vehicle Weight 
Rating system), including tractors, semi-trailers, dump trucks, garbage 
trucks, concrete mixers, and buses, and are the current standard wheel 
diameters for such applications. The standard widths of certain on-the-
road steel wheels are 7.5 inches, 8.25 inches, and 9.0 inches, but all 
certain on-the-road steel wheels, regardless of width, are covered by 
the scope. While 22.5 inches and 24.5 inches are standard wheel sizes 
used by Class 6, 7, and 8 commercial vehicles, the scope covers sizes 
that may be adopted in the future for Class 6, 7, and 8 commercial 
vehicles.
    The scope includes certain on-the-road steel wheels with either a 
``hub-piloted'' or ``stud-piloted'' mounting configuration, and 
includes rims and discs for such wheels, whether imported as an 
assembly or separately. The scope includes certain on-the-road steel 
wheels, discs, and rims, of carbon and/or alloy steel composition, 
whether cladded or not cladded, whether finished or not finished, and 
whether coated or uncoated. All on-the-road wheels sold in the United 
States are subject to the requirements of the National Highway Traffic 
Safety Administration and bear markings, such as the ``DOT'' symbol, 
indicating compliance with applicable motor vehicle standards. See 49 
CFR571.120. The scope includes certain on-the-road steel wheels 
imported with or without the required markings. Certain on-the-road 
steel wheels imported as an assembly with a tire mounted on the wheel 
and/or with a valve stem attached are included. However, if the certain 
on-the-road steel wheel is imported as an assembly with a tire mounted 
on the wheel and/or with a valve stem attached, the certain on-the-road 
steel wheel is covered by the scope, but the tire and/or valve stem is 
not covered by the scope.
    The scope includes rims and discs that have been further processed 
in a third country, including, but not limited to, the welding and 
painting of rims and discs from China to form a steel wheel, or any 
other processing that would not otherwise remove the merchandise from 
the scope of the proceeding if performed in China.
    Excluded from the scope are:

    (1) Steel wheels for tube-type tires that require a removable 
side ring;
    (2) aluminum wheels;
    (3) wheels where steel represents less than fifty percent of the 
product by weight; and
    (4) steel wheels that do not meet National Highway Traffic 
Safety Administration requirements, other than the rim marking 
requirements found in 49 CFR 571.120S5.2.

    Imports of the subject merchandise are currently classified under 
the following Harmonized Tariff Schedule of the United States (HTSUS) 
subheadings: 8708.70.4530, 8708.70.4560, 8708.70.6030, 8708.70.6060, 
8716.90.5045, and 8716.90.5059. Merchandise meeting the scope 
description may also enter under the following HTSUS subheadings: 
4011.20.1015, 4011.20.5020, and 8708.99.4850. While HTSUS subheadings 
are provided for convenience and customs purposes, the written 
description of the scope of the orders is dispositive.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
ACCESS.\9\ An electronically filed document must be received 
successfully in its entirety by the time and date it is due. Note that 
Commerce has temporarily modified certain of its requirements for 
serving documents containing business proprietary information.\10\ Each 
submission must be placed on the record of each of the scope inquiries, 
i.e., for the AD order (A-570-082) and the CVD order (C-570-083).
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    \9\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011), as amended in Enforcement 
and Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
    \10\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19, 85 FR 17006 (March 26, 2020); see also Temporary 
Rule Modifying AD/CVD Service Requirements Due to COVID19; Extension 
of Effective Period, 85 FR 41363 (July 10, 2020).
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Letters of Appearance and Administrative Protective Order

    Interested parties that wish to participate in these scope 
inquiries and be added to the public service list must file a letter of 
appearance in accordance with 19 CFR 351.103(d)(1), with one exception: 
The parties to EAPA investigation 7509 publicly identified

[[Page 38272]]

by CBP in the covered merchandise referral referenced above (Accuride, 
Maxion, and Vanguard) \11\ are not required to submit a letter of 
appearance, and will be added to the public service list for these 
scope inquires by Commerce.
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    \11\ See CBP's EAPA 75009 Letter at 4.
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    Commerce placed an APO on the existing records of the scope 
inquiries on May 12, 2021,\12\ and established the APO service lists 
for use in these segments. Commerce intends to place the covered 
merchandise referral letter on the records of these scope inquiries in 
ACCESS within five days of publication of this notice.
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    \12\ See the Administrative Protective Orders, dated May 12, 
2021.
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    Interested parties must submit applications for disclosure under 
the APO in accordance with the procedures outlined in Commerce's 
regulations at 19 CFR 351.305. Those procedures apply to these segments 
of the AD and CVD proceedings, with one exception: APO applicants 
representing the parties that have been identified by CBP as an 
importer in the covered merchandise referral (referenced above) are 
exempt from the additional filing requirements for importers pursuant 
to 19 CFR 351.305(d).

    Dated: July 14, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.
[FR Doc. 2021-15415 Filed 7-19-21; 8:45 am]
BILLING CODE 3510-DS-P