[Federal Register Volume 87, Number 138 (Wednesday, July 20, 2022)]
[Notices]
[Pages 43238-43239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-15503]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-954, C-570-955]


Certain Magnesia Carbon Bricks From the People's Republic of 
China: Notice of Covered Merchandise Referral and Initiation of Covered 
Merchandise Inquiry

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

SUMMARY: The U.S. Department of Commerce (Commerce) has received a 
covered merchandise referral from U.S. Customs and Border Protection 
(CBP) in connection with a CBP investigation concerning alleged evasion 
of the antidumping/countervailing duty (AD/CVD) orders on certain 
magnesia carbon bricks (bricks) from the People's Republic of China 
(China). In accordance with 19 CFR 351.227(b)(1), Commerce is 
initiating a covered merchandise inquiry to determine whether the 
merchandise described in the referral is subject to the AD/CVD orders 
on bricks from China. Interested parties are invited to comment and 
submit factual information addressing this initiation.

DATES: Applicable July 20, 2022.

FOR FURTHER INFORMATION CONTACT: Brittany Bauer at (202) 482-3860, AD/
CVD Operations Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    Section 517(b)(4)(A)(i) of the Tariff Act of 1930, as amended (the 
Act), provides a procedure whereby if, during the course of an Enforce 
and Protect Act (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, 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. Commerce's regulations at 
19 CFR 351.227 establish procedures for covered merchandise referrals 
that Commerce receives from CBP in connection with an EAPA 
investigation.\1\
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    \1\ See Regulations to Improve Administration and Enforcement of 
Antidumping and Countervailing Duty Laws, 86 FR 52300, 52354-62 
(September 20, 2021) (final rule promulgating the regulation 
establishing procedures for covered merchandise referrals).
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    On June 30, 2022, Commerce received a sufficient covered 
merchandise referral from CBP regarding CBP EAPA Investigation No. 7412 
\2\ which concerns the AD/CVD orders on bricks from China.\3\ 
Specifically, CBP explained that an allegation was filed by the 
Magnesia Carbon Brick Fair Trade Coalition (MCBFTC) alleging that 
products imported by Fedmet Resource Corporation, LLC (Fedmet) as non-
subject Bastion[supreg] brand magnesia alumina carbon (MAC) bricks are 
instead magnesia carbon bricks which are covered by the AD/CVD orders. 
CBP informed Commerce that CBP is unable to determine whether certain 
merchandise is covered merchandise subject to the AD/CVD orders on 
bricks from China. Thus, CBP has requested that Commerce issue a 
determination as to whether products imported as non-subject 
Bastion[supreg] brand MAC bricks are subject to the AD/CVD orders on 
bricks from China.
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    \2\ See CBP's Letter, ``Covered Merchandise Referral Request for 
EAPA Investigation 7412 (Remand Number 7703), Imported by Fedmet 
Resources Corporation, LLC: Antidumping and Countervailing Duty 
Orders on Certain Magnesia Carbon Brick from the People's Republic 
of China,'' dated June 30, 2022. The covered merchandise referral 
and any supporting documents will be made available on Enforcement 
and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).
    \3\ See Certain Magnesia Carbon Bricks from Mexico and the 
People's Republic of China: Antidumping Duty Orders, 75 FR 57257 
(September 20, 2010); see also Certain Magnesia Carbon Bricks from 
the People's Republic of China: Countervailing Duty Order, 75 FR 
57442 (September 21, 2010).
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Initiation of Covered Merchandise Inquiry

    Commerce is hereby notifying interested parties that it is 
initiating a covered merchandise inquiry to determine whether the 
merchandise subject to the referral is covered merchandise within the 
meaning of section 517(a)(3) of the Act. Additionally, Commerce intends 
to provide interested parties with the opportunity to participate in 
this segment of the proceeding, including through the submission of 
comments and factual information, and, if appropriate, verification. In 
accordance with 19 CFR 351.227(m)(2), Commerce is initiating a single 
inquiry regarding the merchandise described in the covered merchandise 
referral on the record of the AD proceeding. Upon issuance of a final 
covered merchandise determination, Commerce will include a copy of the 
determination on the record of the CVD proceeding.
    In accordance with 19 CFR 351.227(d)(1), within 30 days of the date 
of publication of this notice, interested parties are permitted one 
opportunity to submit comment and factual information addressing the 
initiation. Within 14 days of the filing of such comments, any 
interested party is permitted one opportunity to submit comment and 
factual information to rebut, clarify, or correct factual information 
submitted by the other interested parties.
    In accordance with 19 CFR 351.227(d)(2), following initiation of a 
covered merchandise inquiry, Commerce may also issue questionnaires and 
verify submissions received, where appropriate. Commerce may limit 
issuance of questionnaires to a reasonable number of respondents. 
Questionnaire responses are due on the date specified by Commerce. 
Within 14 days after a questionnaire response has been filed with 
Commerce, an interested party other than the original submitter is 
permitted one opportunity to submit comment and factual information to 
rebut, clarify, or correct factual information contained in the 
questionnaire response. Within seven days of the filing of such 
rebuttal, clarification, or correction, the original submitter is 
permitted one opportunity to submit comment and factual information to 
rebut, clarify, or correct factual information submitted in the 
interested party's rebuttal, clarification, or correction.
    In certain circumstances, Commerce may issue a preliminary 
determination as to whether there is a reasonable basis to believe or 
suspect that the product that is subject to the covered merchandise 
inquiry is covered by the scope of the order. Pursuant to 19 CFR 
351.227(c), Commerce intends to issue a final determination within 120 
days of the publication of this notice (this deadline may be extended 
if Commerce determines that good cause exists to warrant an extension). 
Promptly after publication of Commerce's final determination, Commerce 
will convey a

[[Page 43239]]

copy of the final determination in the manner prescribed by section 
516A(a)(2)(A)(ii) of the Act to all parties to the proceeding and 
Commerce will transmit its final determination to CBP in accordance 
with section 517(b)(4)(B) of the Act.\4\
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    \4\ See 19 CFR 351.227(e)(2).
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    Pursuant to 19 CFR 351.227(d)(5), during the pendency of this 
proceeding, Commerce may rescind, in whole or in part, a covered 
merchandise inquiry. Situations in which Commerce may rescind a covered 
merchandise inquiry include if CBP withdraws its covered merchandise 
referral or if Commerce determines that it can address CBP's covered 
merchandise referral in another segment of the proceeding. In 
accordance with 19 CFR 351.227(c)(3), Commerce may align the deadlines 
of this covered merchandise inquiry with the deadlines of another 
segment of the proceeding if it determines it is appropriate to do so.
    Parties are hereby notified that this may be the only notice that 
Commerce publishes in the Federal Register concerning this covered 
merchandise referral. Except as indicated below, interested parties 
that wish to participate in this segment of the proceeding and receive 
notice of the final determination, must submit their letters of 
appearance as discussed below. Further, any representative of an 
interested party desiring access to business proprietary information in 
this segment of the proceeding must file an application for access to 
business proprietary information under administrative protective order 
(APO), as discussed below.

Scope of the AD/CVD Orders

    The merchandise covered by the orders are certain chemically bonded 
(resin or pitch), magnesia carbon bricks with a magnesia component of 
at least 70 percent magnesia (MgO) by weight, regardless of the source 
of raw materials for the MgO, with carbon levels ranging from trace 
amounts to 30 percent by weight, regardless of enhancements (for 
example, magnesia carbon bricks can be enhanced with coating, grinding, 
tar impregnation or coking, high temperature heat treatments, anti-slip 
treatments or metal casing) and regardless of whether or not 
antioxidants are present (for example, antioxidants can be added to the 
mix from trace amounts to 15 percent by weight as various metals, metal 
alloys, and metal carbides).
    Certain magnesia carbon bricks that are subject to the AD/CVD 
orders are currently classifiable under subheadings 6902.10.1000, 
6902.10.5000, 6815.91.0000, 6815.99.2000 and 6815.99.4000 of the 
Harmonized Tariff Schedule of the United States (HTSUS). While HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description is dispositive.

Merchandise Subject to the Covered Merchandise Inquiry

    The covered merchandise inquiry will address whether the scope 
covers products imported by Fedmet as non-subject Bastion[supreg] brand 
MAC bricks. Pursuant to 19 CFR 351.227(m)(1), Commerce will consider, 
based on the available record evidence, whether the final determination 
in the covered merchandise inquiry should be applied on a (i) producer-
specific, exporter-specific, importer-specific basis, or some 
combination thereof; or (ii) on a country-wide basis, regardless of the 
producer, exporter, or importer, to all products from the same country 
with the same relevant physical characteristics as the product at 
issue.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's ACCESS, unless an exception applies.\5\ An 
electronically filed document must be received successfully in its 
entirety by the applicable deadline. Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information until further notice.\6\ Each 
submission must be placed on the record of the segment of the 
proceeding for the AD order (A-570-954), ACCESS Covered Merchandise 
Inquiry segment ``EAPA--7412.''
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    \5\ 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 is found at https://access.trade.gov/help.aspx and a handbook 
is found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
    \6\ 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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Suspension of Liquidation

    In accordance with 19 CFR 351.227(l)(1), Commerce will notify CBP 
of the initiation of the covered merchandise inquiry and direct CBP to 
continue to suspend liquidation of entries of products subject to the 
covered merchandise inquiry that were already subject to the suspension 
of liquidation, and to apply the cash deposit rate that would be 
applicable if the product were determined to be covered by the scope of 
the orders. Should Commerce issue preliminary or final covered 
merchandise determinations, Commerce will follow the suspension of 
liquidation rules under 19 CFR 351.227(l)(2)-(4). In accordance with 19 
CFR 351.227(l)(5), nothing in this section affects CBP's authority to 
take any additional action with respect to the suspension of 
liquidation or related measures.

Notification to Interested Parties

    Interested parties that wish to participate in this segment of the 
proceeding and be added to the public service list for this segment of 
the proceeding must file a letter of appearance in accordance with 19 
CFR 351.103(d)(1), with one exception: the relevant parties to CBP's 
EAPA investigation publicly identified by CBP in the covered 
merchandise referral referenced above are not required to submit a 
letter of appearance, and will be added to the public service list for 
this segment of the proceeding by Commerce.
    Commerce placed an APO on the record on July 11, 2022.\7\ Commerce 
intends to place the business proprietary versions of the documents 
contained in the covered merchandise referral on the record of this 
proceeding in ACCESS.
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    \7\ See Memorandum, ``Request for Establishment of 
Administrative Protective Order Certain Magnesia Carbon Bricks from 
the People's Republic of China (A-570-954),'' dated July 11, 2022.
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    Representatives of 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 
this segment of the proceeding, 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).
    This notice is issued and published pursuant to section 517(b)(4) 
of the Act and 19 CFR 351.227(b).

    Dated: July 15, 2022.
Alex Villanueva,
Senior Director, Office I, Antidumping and Countervailing Duty 
Operations.
[FR Doc. 2022-15503 Filed 7-19-22; 8:45 am]
BILLING CODE 3510-DS-P