[Federal Register Volume 87, Number 103 (Friday, May 27, 2022)]
[Notices]
[Pages 32121-32123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11480]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-143]


Freight Rail Coupler Systems and Certain Components 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 U.S. Department of Commerce (Commerce) determines that 
freight rail coupler systems and certain components thereof (freight 
rail couplers) 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) during the period of investigation, January 1, 2021, through 
June 30, 2021.

DATES: Applicable May 27, 2022.

FOR FURTHER INFORMATION CONTACT: Kabir Archuletta, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-2593.

SUPPLEMENTARY INFORMATION:

Background

    On March 15, 2022, Commerce published in the Federal Register the 
Preliminary Determination in this investigation.\1\ The deadline for 
the final

[[Page 32122]]

determination in this investigation is May 23, 2022.
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    \1\ See Freight Rail Coupler Systems and Certain Components 
Thereof from the People's Republic of China: Preliminary Affirmative 
Determination of Sales at Less-Than-Fair Value, 87 FR 14511 (March 
15, 2022) (Preliminary Determination), and accompanying Preliminary 
Decision Memorandum (PDM).
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    On April 11, 2022, we issued a post-preliminary decision memorandum 
addressing a scope issue raised in the context of this and the 
companion countervailing duty investigation, in which we preliminarily 
found that it was unnecessary to alter the scope stated in the 
Initiation Notice.\2\ We received case briefs addressing this 
preliminary scope decision from two importers of subject merchandise, 
Strato, Inc. (Strato) and Wabtec Corporation (Wabtec), on April 18, 
2022,\3\ and rebuttal comments from the petitioner on April 22, 
2022.\4\
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    \2\ See Memorandum, ``Antidumping and Countervailing Duty 
Investigations of Freight Rail Coupler Systems and Certain 
Components Thereof from the People's Republic of China: Post-
Preliminary Scope Decision Memorandum,'' dated April 11, 2022; see 
also See Freight Rail Coupler Systems and Certain Components Thereof 
from the People's Republic of China: Initiation of Less-Than-Fair-
Value Investigation, 86 FR 58864 (October 25, 2021) (Initiation 
Notice).
    \3\ See Strato's Letter, ``Strato Scope Case Brief,'' dated 
April 18, 2022; and Wabtec's Letter, ``Case Brief On Post-
Preliminary Scope Decision,'' dated April 18, 2022.
    \4\ The petitioner is the Coalition of Freight Coupler 
Producers. See Petitioner's Letter, ``Rebuttal Brief,'' dated April 
25, 2022.
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    We received no comments or case briefs addressing any of the other 
findings in the Preliminary Determination; therefore, there is no 
Issues and Decision Memorandum accompanying this notice.

Period of Investigation

    The period of investigation is January 1, 2021, through June 30, 
2021.

Scope of the Investigation

    The products covered by this investigation are freight rail coupler 
systems and certain components thereof from China. For a complete 
description of the scope of this investigation, see the appendix to 
this notice.

Scope Comments

    In Commerce's Preliminary Determination,\5\ we set aside a period 
of time for parties to raise issues regarding product coverage (i.e., 
scope) in scope case briefs or other written comments on scope issues. 
As noted above, the petitioner and two interested parties, Strato and 
Wabtec, commented on the scope of the investigation as it appeared in 
the Initiation Notice \6\ and Preliminary Determination.\7\ For a 
summary of the product coverage comments and rebuttal comments, and an 
analysis of all comments received, see the final scope memorandum 
issued concurrently with this final determination.\8\ For the reasons 
discussed in the final scope memorandum, Commerce is not modifying the 
scope language as it appeared in the Initiation Notice. See the final 
``Scope of the Investigation'' in the appendix to this notice.
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    \5\ See Preliminary Determination, 87 FR 14513.
    \6\ See Initiation Notice, 86 FR 58869.
    \7\ See Preliminary Determination, 87 FR 14513-14.
    \8\ See Memorandum, ``Final Scope Memorandum,'' dated 
concurrently with, and hereby adopted by, this notice.
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China-Wide Entity and Use of Adverse Facts Available (AFA)

    For the purposes of this final determination, consistent with the 
Preliminary Determination,\9\ we relied solely on the application of 
AFA for the China-wide entity, pursuant to sections 776(a) and (b) of 
the Tariff Act of 1930, as amended (the Act). Further, because no 
companies are eligible for a rate separate from the China-wide entity, 
we continue to find that all exporters of Chinese freight rail couplers 
are part of the China-wide entity. No interested party submitted 
comments on the Preliminary Determination. Thus, we made no changes to 
our analysis or to the China-wide entity's dumping margin for the final 
determination. A detailed discussion of our application of AFA is 
provided in the Preliminary Determination.\10\
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    \9\ See Preliminary Determination PDM at 6-9.
    \10\ Id.
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Combination Rates

    Because no Chinese exporters qualified for a separate rate, 
producer/exporter combination rates were not calculated for this final 
determination.

Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                     Estimated weighted-
                               Estimated weighted-     average dumping
      Exporter/producer          average dumping     margin adjusted for
                                margin (percent)       export subsidy
                                                     offset(s) (percent)
------------------------------------------------------------------------
China-Wide Entity...........               147.11                116.70
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Disclosure

    Because Commerce continues to find that all Chinese exporters of 
freight rail couplers are part of the China-wide entity and continues 
to rely solely on the application of AFA for the China-wide entity, 
there are no calculations to disclose for this final 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 
subject merchandise as described in the ``Scope of the Investigation'' 
section entered, or withdrawn from warehouse, for consumption, on or 
after March 15, 2022, which is the date of publication of the 
Preliminary Determination in the Federal Register, at the cash deposit 
rate indicated above.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), we will instruct CBP to require a cash deposit for such 
entries of merchandise equal to the amount by which the normal value 
exceeds the U.S. price as follows: (1) For all Chinese exporters of 
subject merchandise, the cash deposit rate will be equal to the 
estimated dumping margin established for the China-wide entity; and (2) 
for all third country exporters of subject merchandise, the cash 
deposit rate is also the cash deposit rate applicable to the China-wide 
entity. These suspension of liquidation instructions will remain in 
effect until further notice.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we intend to issue an antidumping 
duty order and continue to require a cash deposit of estimated 
antidumping duties

[[Page 32123]]

for such entries of subject merchandise in the amounts indicated above, 
in accordance with section 736(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 
as a result of the suspension of liquidation will be refunded or 
canceled.

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. Because 
the final determination in this proceeding is affirmative, in 
accordance with section 735(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 freight rail couplers 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, the proceeding will be terminated and all cash 
deposits will be refunded or canceled, as Commerce determines to be 
appropriate. If the ITC determines that such injury does exist, 
Commerce intends to issue an antidumping duty order directing CBP to 
assess, upon further instruction by Commerce, antidumping 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 Order (APO)

    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 disposition 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 in pursuant to sections 
735(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: May 23, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The scope of this investigation covers freight rail car coupler 
systems and certain components thereof. Freight rail car coupler 
systems are composed of, at minimum, four main components (knuckles, 
coupler bodies, coupler yokes, and follower blocks, as specified 
below) but may also include other items (e.g., coupler locks, lock 
lift assemblies, knuckle pins, knuckle throwers, and rotors). The 
components covered by the investigation include: (1) E coupler 
bodies; (2) E/F coupler bodies; (3) F coupler bodies; (4) E yokes; 
(5) F yokes; (6) E knuckles; (7) F knuckles; (8) E type follower 
blocks; and (9) F type follower blocks, as set forth by the 
Association of American Railroads (AAR). The freight rail coupler 
components are included within the scope of the investigation when 
imported individually, or in some combination thereof, such as in 
the form of a coupler fit (a coupler body and knuckle assembled 
together), independent from a coupler system.
    Subject freight rail car coupler systems and components are 
included within the scope whether finished or unfinished, whether 
imported individually or with other subject or non-subject 
components, whether assembled or unassembled, whether mounted or 
unmounted, or if joined with non-subject merchandise, such as other 
non-subject system parts or a completed rail car. Finishing 
includes, but is not limited to, arc washing, welding, grinding, 
shot blasting, heat treatment, machining, and assembly of various 
components. When a subject coupler system or subject components are 
mounted on or to other non-subject merchandise, such as a rail car, 
only the coupler system or subject components are covered by the 
scope.
    The finished products covered by the scope of this investigation 
meet or exceed the AAR specifications of M-211, ``Foundry and 
Product Approval Requirements for the Manufacture of Couplers, 
Coupler Yokes, Knuckles, Follower Blocks, and Coupler Parts'' or AAR 
M-215 ``Coupling Systems,'' or other equivalent domestic or 
international standards (including any revisions to the 
standard(s)).
    The country of origin for subject coupler systems and 
components, whether fully assembled, unfinished or finished, or 
attached to a rail car, is the country where the subject coupler 
components were cast or forged. Subject merchandise includes coupler 
components as defined above that have been further processed or 
further assembled, including those coupler components attached to a 
rail car in third countries. Further processing includes, but is not 
limited to, arc washing, welding, grinding, shot blasting, heat 
treatment, painting, coating, priming, machining, and assembly of 
various components. The inclusion, attachment, joining, or assembly 
of non-subject components with subject components or coupler systems 
either in the country of manufacture of the in-scope product or in a 
third country does not remove the subject components or coupler 
systems from the scope.
    The coupler systems that are the subject of this investigation 
are currently classifiable in the Harmonized Tariff Schedule of the 
United States (HTSUS) statistical reporting number 8607.30.1000. 
Unfinished subject merchandise may also enter under HTSUS 
statistical reporting number 7326.90.8688. Subject merchandise 
attached to finished rail cars may also enter under HTSUS 
statistical reporting numbers 8606.10.0000, 8606.30.0000, 
8606.91.0000, 8606.92.0000, 8606.99.0130, 8606.99.0160, or under 
subheading 9803.00.5000 if imported as an Instrument of 
International Traffic. These HTSUS subheadings are provided for 
convenience and customs purposes only; the written description of 
the scope of the investigation is dispositive.

[FR Doc. 2022-11480 Filed 5-26-22; 8:45 am]
BILLING CODE 3510-DS-P