[Federal Register Volume 86, Number 199 (Tuesday, October 19, 2021)]
[Notices]
[Pages 57809-57812]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22705]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-140]


Certain Mobile Access Equipment 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 mobile access equipment and subassemblies thereof (mobile 
access equipment) from the People's Republic of China (China). The 
period of investigation is January 1, 2020, through December 31, 2020.

DATES: Applicable October 19, 2021.

FOR FURTHER INFORMATION CONTACT: Theodore Pearson or Michael Romani, 
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) 482-2631 or (202) 
482-0198, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The petitioner in this investigation is the Coalition of American 
Manufacturers of Mobile Access Equipment. In addition to the Government 
of China, the selected mandatory respondents are Zhejiang Dingli 
Machinery Co., Ltd. (Dingli) and Lingong Group Jinan Heavy Machinery 
Co., Ltd. (LGMG).
    On July 30, 2021, Commerce published the Preliminary Determination 
in the Federal Register.\1\ A summary of the events that occurred since 
Commerce published the Preliminary 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. A list of topics discussed in the Issues and 
Decision Memorandum is included at Appendix II. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \1\ See Certain Mobile Access Equipment and Subassemblies 
Thereof from the People's Republic of China: Preliminary Affirmative 
Countervailing Duty Determination, 85 FR 80771 (December 14, 2020) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum.
    \2\ See Memorandum, ``Certain Mobile Access Equipment and 
Subassemblies Thereof from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination,'' 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 mobile access 
equipment from China. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    On July 26, 2021, we issued the Preliminary Scope Decision 
Memorandum.\3\ We received comments from interested parties on the 
Preliminary Scope Decision Memorandum, which we addressed in the Final 
Scope Decision Memorandum.\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 Mobile Access Equipment and 
Subassemblies Thereof from the People's Republic of China: Scope 
Comments Decision Memorandum for the Preliminary Determination,'' 
dated July 26, 2021 (Preliminary Scope Decision Memorandum).
    \4\ See Memorandum, ``Antidumping Duty and Countervailing Duty 
Investigations of Certain Mobile Access Equipment and Subassemblies 
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).
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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 issue 
raised by parties, and to which we responded in the Issue and Decision 
Memorandum, 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,

[[Page 57810]]

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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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 Letters, ``Certain Mobile Access Equipment 
and Subassemblies Thereof from the People's Republic of China: 
Zhejiang Dingli Machinery Co., Ltd. Verification Questionnaire,'' 
and ``Certain Mobile Access Equipment and Subassemblies Thereof from 
the People's Republic of China: Lingong Group Jinan Heavy Machinery 
Co., Ltd. Verification Questionnaire,'' both dated August 17, 2021.
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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 Dingli's and LGMG's subsidy rate calculations, the rate for 
non-cooperating respondents, and the all-others rate. For a discussion 
of these changes, see the Issues and Decision Memorandum.

All-Others Rate

    We continue to calculate the all-others rate using a weighted 
average of the individual estimated subsidy rates calculated for the 
examined respondents (Dingli and LGMG) using each company's publicly-
ranged data for the value of their exports to the United States of 
subject merchandise.\8\
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    \8\ See Preliminary Determination, 85 FR at 41013; see also 
Memorandum, ``Countervailing Duty Investigation of Certain Mobile 
Access Equipment and Subassemblies Thereof from the People's 
Republic of China; Revised All-Others Calculation for the Final 
Determination,'' dated concurrently with this memorandum.
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Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                               Subsidy
                          Company                                rate
                                                              (percent)
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Lingong Group Jinan Heavy Machinery Co., Ltd \9\...........        18.34
Zhejiang Dingli Machinery Co., Ltd \10\....................        11.95
Jinan Zhongtian International Trading \11\.................       448.70
Zhongshan Shiliwang Machinery Co., LTD \12\................       448.70
Yantai Empire Industry and Trade \13\......................       448.70
Shandong Lede Machinery \14\...............................       448.70
Shandong Huifeng Auto Fittings \15\........................       448.70
Jinan Zhongtang Mechanical Equipment \16\..................       448.70
All Others.................................................        12.93
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Disclosure
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    \9\ Cross-owned affiliate is Linyi Lingong Machinery Group Co., 
Ltd.
    \10\ Cross-owned affiliates are Zhejiang Green Power Machinery 
Co., Ltd. and Shengda Fenghe Automotive Equipment Co., Ltd.
    \11\ See Preliminary Decision Memorandum at section 
``Application of AFA: Non-Responsive Companies.''
    \12\ Id.
    \13\ Id.
    \14\ Id.
    \15\ Id.
    \16\ Id.
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    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 from China that were entered, or withdrawn from 
warehouse, for consumption, effective July 30, 2021, 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 will direct 
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 our final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of mobile 
access equipment 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 mobile access 
equipment 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.

[[Page 57811]]

Notification Regarding APOs

    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 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: October 12, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation consists of 
certain mobile access equipment, which consists primarily of boom 
lifts, scissor lifts, and material telehandlers, and subassemblies 
thereof. Mobile access equipment combines a mobile (self-propelled 
or towed) chassis, with a lifting device (e.g., scissor arms, boom 
assemblies) for mechanically lifting persons, tools and/or materials 
capable of reaching a working height of ten feet or more, and a 
coupler that provides an attachment point for the lifting device, in 
addition to other components. The scope of this investigation covers 
mobile access equipment and subassemblies thereof whether finished 
or unfinished, whether assembled or unassembled, and whether the 
equipment contains any additional features that provide for 
functions beyond the primary lifting function.
    Subject merchandise includes, but is not limited to, the 
following subassemblies:
     Scissor arm assemblies, or scissor arm sections, for 
connection to chassis and platform assemblies. These assemblies 
include: (1) Pin assemblies that connect sections to form scissor 
arm assemblies, and (2) actuators that power the arm assemblies to 
extend and retract. These assemblies may or may not also include 
blocks that allow sliding of end sections in relation to frame and 
platform, hydraulic hoses, electrical cables, and/or other 
components;
     boom assemblies, or boom sections, for connection to 
the boom turntable, or to the chassis assembly, or to a platform 
assembly or to a lifting device. Boom assemblies include telescoping 
sections where the smallest section (or tube) can be nested in the 
next larger section (or tube) and can slide out for extension and/or 
articulated sections joined by pins. These assemblies may or may not 
include pins, hydraulic cylinders, hydraulic hoses, electrical 
cables, and/or other components;
     chassis assemblies, for connection to scissor arm 
assemblies, or to boom assemblies, or to boom turntable assemblies. 
Chassis assemblies include: (1) Chassis frames, and/or (2) frame 
sections. Chassis assemblies may or may not include axles, wheel end 
components, steering cylinders, engine assembly, transmission, drive 
shafts, tires and wheels, crawler tracks and wheels, fuel tank, 
hydraulic oil tanks, battery assemblies, and/or other components;
     boom turntable assemblies, for connection to chassis 
assemblies, or to boom assemblies. Boom turntable assemblies include 
turntable frames. Boom turntable assemblies may or may not include 
engine assembly, slewing rings, fuel tank, hydraulic oil tank, 
battery assemblies, counterweights, hoods (enclosures), and/or other 
components.
    Importation of any of these subassemblies, whether assembled or 
unassembled, constitutes unfinished mobile access equipment for 
purposes of this investigation.
    Processing of finished and unfinished mobile access equipment 
and subassemblies such as trimming, cutting, grinding, notching, 
punching, slitting, drilling, welding, joining, bolting, bending, 
beveling, riveting, minor fabrication, galvanizing, painting, 
coating, 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 
mobile access equipment does not remove the product from the scope.
    The scope excludes forklifts, vertical mast lifts, mobile self-
propelled cranes and motor vehicles that incorporate a scissor arm 
assembly or boom assembly. Forklifts are material handling vehicles 
with a working attachment, usually a fork, lifted along a vertical 
guide rail with the operator seated or standing on the chassis 
behind the vertical mast. Vertical mast lifts are person and 
material lifting vehicles with a working attachment, usually a 
platform, lifted along a vertical guide rail with an operator 
standing on the platform. Mobile self-propelled cranes are material 
handling vehicles with a boom attachment for lifting loads of tools 
or materials that are suspended on ropes, cables, and/or chains, and 
which contain winches mounted on or near the base of the boom with 
ropes, cables, and/or chains managed along the boom structure. The 
scope also excludes motor vehicles (defined as a vehicle driven or 
drawn by mechanical power and manufactured primarily for use on 
public streets, roads, and highways, but does not include a vehicle 
operated only on a rail line pursuant to 49 U.S.C. 30102(a)(7)) that 
incorporate a scissor arm assembly or boom assembly. The scope 
further excludes vehicles driven or drawn by mechanical power 
operated only on a rail line that incorporate a scissor arm assembly 
or boom assembly. The scope also excludes: (1) Rail line vehicles, 
defined as vehicles with hi-rail gear or track wheels, and a fixed 
(non-telescopic) main boom, which perform operations on rail lines, 
such as laying rails, setting ties, or other rail maintenance jobs; 
and (2) certain rail line vehicle subassemblies, defined as chassis 
subassemblies and boom turntable subassemblies for rail line 
vehicles with a fixed (non-telescopic) main boom.
    Certain mobile access equipment subject to this investigation is 
typically classifiable under subheadings 8427.10.8020, 8427.10.8030, 
8427.10.8070, 8427.10.8095, 8427.20.8020, 8427.20.8090, 8427.90.0020 
and 8427.90.0090 of the Harmonized Tariff Schedule of the United 
States (HTSUS). Parts of certain mobile access equipment are 
typically classifiable under subheading 8431.20.0000 of the HTSUS. 
While the HTSUS subheadings are provided for convenience and customs 
purposes only, the written description of the merchandise under 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary 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

General Issues

    Comment 1: Countervailability of the Provision of Certain Inputs 
and Services for Less Than Adequate Remuneration (LTAR)
    Comment 2: Countervailability of the Provision of Electricity 
for LTAR
    Comment 3: Countervailability of Other Subsidies
    Comment 4: Currency Undervaluation
    Comment 5: Export Buyer's Credit
    Comment 6: Whether to Average Dingli's Steel Benchmark Sources 
with UN Comtrade Data
    Comment 7: Benchmarks for the Provision of Hot-Rolled Steel 
Sheet and Plate for LTAR
    Comment 8: Benchmarks for the Provision of Ocean Shipping 
Services for LTAR and Ocean Freight in Input LTARs
    Comment 9: Certain UN Comtrade Benchmarks

Dingli Issues

    Comment 10: Whether Commerce Erred in Calculating Dingli's Use 
of the Provision of Cold-Rolled Steel for LTAR
    Comment 11: Whether Commerce Should Use Dingli's Consolidated 
Sales as the Denominator

LGMG Issues

    Comment 12: Whether Commerce Should Countervail LGMG's Off-the-
Road (OTR) Tires
    Comment 13: Whether Commerce Should Countervail Lithium-Ion 
Batteries for LTAR
    Comment 14: Whether Commerce Should Reconsider the Benchmark for 
Diesel

[[Page 57812]]

Engines and Which Diesel Engines Are Countervailable
    Comment 15: Whether Commerce Should Revise LGMG's Reported Total 
Sales Value
    Comment 16: Whether Commerce Should Include an Additional 
``Other Subsidy Program'' in LGMG's Overall Subsidy Rate
VII. Recommendation

[FR Doc. 2021-22705 Filed 10-18-21; 8:45 am]
BILLING CODE 3510-DS-P