[Federal Register Volume 88, Number 103 (Tuesday, May 30, 2023)]
[Notices]
[Pages 34485-34487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11358]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-145]


Certain Freight Rail Couplers and Parts Thereof From the People's 
Republic of China: Final Affirmative Determination of Sales at Less-
Than-Fair Value and Final Affirmative Determination of Critical 
Circumstances

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
certain freight rail couplers and parts 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, 2022, through June 30, 2022.

DATES: Applicable May 30, 2023.

FOR FURTHER INFORMATION CONTACT: Drew Jackson or Zachary Shaykin, AD/
CVD Operations, Office IV, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-4406 or (202) 
482-2638, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On March 13, 2023, Commerce published in the Federal Register the 
Preliminary Determination in this investigation.\1\ Commerce invited 
interested parties to comment on the Preliminary Determination.
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    \1\ See Certain Freight Rail Couplers and Parts Thereof from the 
People's Republic of China: Preliminary Affirmative Determination of 
Sales at Less Than Fair Value and Preliminary Affirmative 
Determination of Critical Circumstances, 88 FR 15372 (March 13, 
2023) (Preliminary Determination), and accompanying Preliminary 
Decision Memorandum.
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    For a complete description of the events that followed the 
Preliminary Determination, see the Issues and Decision Memorandum.\2\ 
The Issues and Decision Memorandum is a public document and is 
available 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 Issues and Decision Memorandum can 
be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Certain Freight Rail Couplers and Parts Thereof 
from the People's Republic of China,'' dated concurrently with this 
notice (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2022, through June 30, 
2022.

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 appendix I.

Scope Comments

    During the course of this investigation and the concurrent LTFV and 
countervailing duty investigations of freight rail couplers from and 
Mexico, and China, Commerce received scope comments from interested 
parties. Commerce issued a Preliminary Scope Memorandum to address 
these comments and set aside a period of time for parties to address 
scope issues in scope case and rebuttal briefs.\3\ We received comments 
from interested parties on the Preliminary Scope Memorandum, which we 
address in the Final Scope Memorandum.\4\ As a result of these 
comments, we made certain changes to the scope of these investigations 
from that published in the Preliminary Determination. See appendix I.
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    \3\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated March 28, 2023 (Preliminary Scope Memorandum).
    \4\ See Memorandum, ``Final Scope Decision Memorandum,'' dated 
concurrently with this notice (Final Scope Memorandum).
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Final Affirmative Determination of Critical Circumstances

    In accordance with section 733(e) of the Tariff Act of 1930, as 
amended (the Act) and 19 CFR 351.206(h), Commerce determines that 
critical circumstances exist with respect to imports of freight rail 
couplers from China for the China-wide entity. For a full description 
of the methodology and results of Commerce's critical circumstances 
analysis, see the Preliminary Decision Memorandum and the Issues and 
Decision Memorandum.

China-Wide Entity and Use of Adverse Facts Available (AFA)

    For the purposes of this final determination, consistent with the 
Preliminary Determination,\5\ we relied solely on the application of 
AFA for the China-wide entity, pursuant to sections 776(a) and (b) of 
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. There 
is no new information on the record that would cause us to revisit our 
decision in 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.\6\
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    \5\ See Preliminary Determination PDM at 6-9.
    \6\ 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

    Commerce determines that the following estimated weighted-average 
dumping margin exists for the POI:

[[Page 34486]]



------------------------------------------------------------------------
                                                            Estimated
                                                            weighted-
                                           Estimated     average dumping
                                           weighted-     margin adjusted
           Exporter/producer            average dumping     for export
                                             margin          subsidy
                                           (percent)        offset(s)
                                                          (percent) \7\
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China-Wide Entity.....................          169.90           139.49
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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.
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    \7\ For the export subsidy offset calculation, see Commerce's 
Memorandum, ``Freight Rail Couplers from the People's Republic of 
China: Export Subsidy Offset Calculation for the Final 
Determination,'' dated concurrently with this notice.
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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 13, 2023, which is the date of publication of the 
affirmative 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 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

    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 administrative protective order (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 pursuant to sections 
735(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: May 22, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers certain freight railcar 
couplers (also known as ``fits'' or ``assemblies'') and parts 
thereof. Freight railcar couplers are composed of two main parts, 
namely knuckles and coupler bodies but may also include other items 
(e.g., coupler locks, lock lift assemblies, knuckle pins, knuckle 
throwers, and rotors). The parts of couplers that are covered by the 
investigation include: (1) E coupler bodies, (2) E/F coupler bodies, 
(3) F coupler bodies, (4) E knuckles, and (5) F knuckles, as set 
forth by the Association of American Railroads (AAR). The freight 
rail coupler parts (i.e., knuckles and coupler bodies) are included 
within the scope of the investigation when imported separately. 
Coupler locks, lock lift assemblies, knuckle pins, knuckle throwers, 
and rotors are covered merchandise when imported in an assembly but 
are not covered by the scope when imported separately.
    Subject freight railcar couplers and parts are included within 
the scope whether finished or unfinished, whether imported 
individually or with other subject or nonsubject parts, whether 
assembled or unassembled, whether mounted or unmounted, or if joined 
with nonsubject merchandise, such as other nonsubject parts or a 
completed railcar. Finishing includes, but is not limited to, arc 
washing, welding, grinding, shot blasting, heat treatment, 
machining, and assembly of various parts. When a subject coupler or 
subject parts are mounted on or to other nonsubject merchandise, 
such as a railcar, only the coupler or subject parts 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

[[Page 34487]]

Product Approval Requirements for the Manufacture of Couplers, 
Coupler Yokes, Knuckles, Follower Blocks, and Coupler Parts'' and/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 couplers and parts thereof, 
whether fully assembled, unfinished or finished, or attached to a 
railcar, is the country where the subject coupler parts were cast or 
forged. Subject merchandise includes coupler parts as defined above 
that have been further processed or further assembled, including 
those coupler parts attached to a railcar 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 parts. The inclusion, 
attachment, joining, or assembly of nonsubject parts with subject 
parts or couplers either in the country of manufacture of the in-
scope product or in a third country does not remove the subject 
parts or couplers from the scope.
    The couplers 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 railcars 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 
9803.00.50. Subject merchandise may also be imported under HTSUS 
statistical reporting number 7325.99.5000. These HTSUS subheadings 
are provided for convenience and customs purposes only; the written 
description of the scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Final Issues and Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Affirmative Determination of Critical Circumstances
VII. Changes since the Preliminary Determination
VIII. Adjustments to Cash Deposit Rates for Export Subsidies
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Discussion of the Issues
    Comment 1: Critical Circumstances
    Comment 2: Termination of the Investigation
XI. Recommendation

[FR Doc. 2023-11358 Filed 5-26-23; 8:45 am]
BILLING CODE 3510-DS-P