[Federal Register Volume 90, Number 46 (Tuesday, March 11, 2025)]
[Notices]
[Pages 11720-11722]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-03860]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-088, C-570-089]
Steel Racks and Parts Thereof, From the People's Republic of
China: Continuation of Antidumping and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: As a result of the determinations by the U.S. Department of
Commerce (Commerce) and the U.S. International Trade Commission (ITC)
that revocation of the antidumping duty (AD) and countervailing duty
(CVD) orders on certain steel racks and parts thereof (steel racks)
from the People's Republic of China (China) would likely lead to the
continuation or recurrence of dumping and countervailable subsidies,
and material injury to an industry in the United States, Commerce is
publishing a notice of continuation of these AD and CVD orders.
DATES: Applicable March 5, 2025.
FOR FURTHER INFORMATION CONTACT: Angelo Gonzalez, 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) 482-5521.
SUPPLEMENTARY INFORMATION:
Background
On September 16, 2019, Commerce published in the Federal Register
the AD and CVD orders on steel racks from China.\1\ On August 1, 2024,
the ITC instituted,\2\ and Commerce initiated,\3\ the first sunset
review of the Orders, pursuant to section 751(c) of the Tariff Act of
1930, as amended (the Act). As a result of its reviews, Commerce
determined that revocation of the Orders would likely lead to the
continuation or recurrence of dumping and countervailable subsidies,
and therefore, notified the ITC of the magnitude of the margins of
dumping and subsidy rates likely to prevail should the Orders be
revoked.\4\
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\1\ See Certain Steel Racks and Parts Thereof, from the People's
Republic of China: Amended Final Affirmative Antidumping Duty
Determination and Antidumping Duty Order; Countervailing Duty Order,
84 FR 48584 (September 16, 2019) (Orders).
\2\ See Steel Racks from China; Institution of Five-Year
Reviews, 89 FR 62779 (August 1, 2024).
\3\ See Initiation of Five-Year (Sunset) Reviews, 89 FR 62717
(August 1, 2024).
\4\ See Certain Steel Racks and Parts Thereof from the People's
Republic of China: Final Results of the Expedited First Sunset
Review of the Antidumping Duty Order, 89 FR 96947 (December 6,
2024); see also Steel Racks and Parts Thereof, from the People's
Republic of China: Final Results of the Expedited Sunset Review of
the Countervailing Duty Order, 89 FR 96945 (December 6, 2024).
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On March 5, 2025, the ITC published its determination, pursuant to
sections 751(c) and 752(a) of the Act, that revocation of the Orders
would likely lead to continuation or recurrence of material injury to
an industry in the United States within a reasonably foreseeable
time.\5\
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\5\ See Steel Racks from China, 90 FR 11328 (March 5, 2025) (ITC
Final Determination).
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Scope of the Orders
The merchandise covered by these Orders is steel racks and parts
thereof, assembled, to any extent, or unassembled, including but not
limited to, vertical components (e.g., uprights, posts, or columns),
horizontal or diagonal components (e.g., arms or beams), braces,
frames, locking devices (e.g., end plates and beam connectors), and
accessories (including, but not limited to, rails, skid channels, skid
rails, drum/coil beds, fork clearance bars, pallet supports, row
spacers, and wall ties).
Subject steel racks and parts thereof are made of steel, including,
but not limited to, cold and/or hot-formed steel, regardless of the
type of steel used to produce the components and may, or may not,
include locking tabs, slots, or bolted, clamped, or welded connections.
Subject steel racks have the following physical characteristics:
(1) Each steel vertical and horizontal load bearing member (e.g.,
arms, beams, posts, and columns) is composed of steel that is at least
0.044 inches thick;
(2) Each steel vertical and horizontal load bearing member (e.g.,
arms, beams, posts, and columns) is composed of steel that has a yield
strength equal to or greater than 36,000 pounds per square inch;
(3) The width of each steel vertical load bearing member (e.g.,
posts and columns) exceeds two inches; and
(4) The overall depth of each steel roll-formed horizontal load
bearing member (e.g., beams) exceeds two inches.
In the case of steel horizontal load bearing members other than
roll-formed (e.g., structural beams, Z-beams, or cantilever arms), only
the criteria in subparagraphs (1) and (2) apply to these horizontal
load bearing members. The depth limitation in subparagraph (4) does not
apply to steel horizontal load bearing members that are not roll-
formed.
Steel rack components can be assembled into structures of various
dimensions and configurations by welding, bolting, clipping, or with
the use of devices such as clips, end plates, and beam connectors,
including, but not limited to the following configurations: (1) Racks
with upright frames perpendicular to the aisles that are independently
adjustable, with positive-locking beams parallel to the aisle spanning
the upright frames with braces; and (2) cantilever racks with vertical
components parallel to the aisle and cantilever beams or arms connected
to the vertical components perpendicular to the aisle. Steel racks may
be referred to as pallet racks, storage racks, stacker racks, retail
racks, pick modules, selective racks, or cantilever racks and may
incorporate moving components and be referred to as pallet-flow racks,
carton-flow racks, push-back racks, movable-shelf racks, drive-in
racks, and drive-through racks. While steel racks may be made to ANSI
MH16.l or ANSI MH16.3 standards, all steel racks and parts thereof
meeting the description set out herein are covered by the scope of
these Orders, whether or not produced according to a particular
standard.
The scope includes all steel racks and parts thereof meeting the
description above, regardless of
(1) other dimensions, weight, or load rating;
(2) vertical components or frame type (including structural, roll-
form, or other);
(3) horizontal support or beam/brace type (including but not
limited to structural, roll-form, slotted, unslotted, Z-beam, C-beam,
L-beam, step beam, and cantilever beam);
(4) number of supports;
[[Page 11721]]
(5) number of levels;
(6) surface coating, if any (including but not limited to paint,
epoxy, powder coating, zinc, or other metallic coatings);
(7) rack shape (including but not limited to rectangular, square,
corner, and cantilever);
(8) the method by which the vertical and horizontal supports
connect (including but not limited to locking tabs or slots, bolting,
clamping, and welding); and
(9) whether or not the steel rack has moving components (including
but not limited to rails, wheels, rollers, tracks, channels, carts, and
conveyors).
Subject merchandise includes merchandise matching the above
description that has been finished or packaged in a third country.
Finishing includes, but is not limited to, coating, painting, or
assembly, including attaching the merchandise to another product, or
any other finishing or assembly operation that would not remove the
merchandise from the scope of these Orders if performed in the country
of manufacture of the steel racks and parts thereof. Packaging includes
packaging the merchandise with or without another product or any other
packaging operation that would not remove the merchandise from the
scope of these Orders if performed in the country of manufacture of the
steel racks and parts thereof.
Steel racks and parts thereof are included in the scope of these
Orders whether or not imported attached to, or included with, other
parts or accessories such as wire decking, nuts, and bolts. If steel
racks and parts thereof are imported attached to, or included with,
such non-subject merchandise, only the steel racks and parts thereof
are included in the scope.
The scope of these Orders does not cover: (1) decks, i.e., shelving
that sits on or fits into the horizontal supports to provide the
horizontal storage surface of the steel racks; (2) wire shelving units,
i.e., units made from wire that incorporate both a wire deck and wire
horizontal supports (taking the place of the horizontal beams and
braces) into a single piece with tubular collars that slide over the
posts and onto plastic sleeves snapped on the posts to create a
finished unit; (3) pins, nuts, bolts, washers, and clips used as
connecting devices; and (4) non-steel components.
Specifically excluded from the scope of these Orders are any
products covered by Commerce's existing antidumping and countervailing
duty orders on boltless steel shelving units prepackaged for sale from
the People's Republic of China.\6\
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\6\ See Boltless Steel Shelving Units Prepackaged for Sale from
the People's Republic of China: Antidumping Duty Order, 80 FR 63,741
(October 21, 2017); and Boltless Steel Shelving Units Prepackaged
for Sale from the People's Republic of China: Amended Final
Affirmative Countervailing Duty Determination and Countervailing
Duty Order, 80 FR 63,745 (October 21, 2017).
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Also excluded from the scope of these Orders are bulk-packed parts
or components of boltless steel shelving units that were specifically
excluded from the scope of the Boltless Steel Shelving Orders because
such bulk-packed parts or components do not contain the steel vertical
supports (i.e., uprights and posts) and steel horizontal supports
(i.e., beams, braces) packaged together for assembly into a completed
boltless steel shelving unit.
Such excluded components of boltless steel shelving are defined as:
(1) Boltless horizontal supports (beams, braces) that have each of
the following characteristics: (a) A length of 95 inches or less, (b)
made from steel that has a thickness of 0.068 inches or less, and (c) a
weight capacity that does not exceed 2,500 lbs. per pair of beams for
beams that are 78'' or shorter, a weight capacity that does not exceed
2,200 lbs. per pair of beams for beams that are over 78'' long but not
longer than 90'', and/or a weight capacity that does not exceed 1,800
lbs. per pair of beams for beams that are longer than 90'';
(2) shelf supports that mate with the aforementioned horizontal
supports; and
(3) boltless vertical supports (upright welded frames and posts)
that have each of the following characteristics: (a) A length of 95
inches or less, (b) with no face that exceeds 2.90 inches wide, and (c)
made from steel that has a thickness of 0.065 inches or less.
Excluded from the scope of these Orders are: (1) Wall-mounted
shelving and racks, defined as shelving and racks that suspend all of
the load from the wall, and do not stand on, or transfer load to, the
floor; (2) ceiling-mounted shelving and racks, defined as shelving and
racks that suspend all of the load from the ceiling and do not stand
on, or transfer load to, the floor; and (3) wall/ceiling mounted
shelving and racks, defined as shelving and racks that suspend the load
from the ceiling and the wall and do not stand on, or transfer load to,
the floor. The addition of a wall or ceiling bracket or other device to
attach otherwise subject merchandise to a wall or ceiling does not meet
the terms of this exclusion.
Also excluded from the scope of these Orders is scaffolding that
complies with ANSI/ASSE A10.8--2011--Scaffolding Safety Requirements,
CAN/CSA S269.2-M87 (Reaffirmed 2003)--Access Scaffolding for
Construction Purposes, and/or Occupational Safety and Health
Administration regulations at 29 CFR part 1926 subpart L--Scaffolds.
Also excluded from the scope of these Orders are tubular racks such
as garment racks and drying racks, i.e., racks in which the load
bearing vertical and horizontal steel members consist solely of: (1)
round tubes that are no more than two inches in diameter; (2) round
rods that are no more than two inches in diameter; (3) other tubular
shapes that have both an overall height of no more than two inches and
an overall width of no more than two inches; and/or (4) wire.
Also excluded from the scope of these Orders are portable tier
racks. Portable tier racks must meet each of the following criteria to
qualify for this exclusion:
(1) They are freestanding, portable assemblies with a fully welded
base and four freely inserted and easily removable corner posts;
(2) They are assembled without the use of bolts, braces, anchors,
brackets, clips, attachments, or connectors;
(3) One assembly may be stacked on top of another without applying
any additional load to the product being stored on each assembly, but
individual portable tier racks are not securely attached to one another
to provide interaction or interdependence; and
(4) The assemblies have no mechanism (e.g., a welded foot plate
with bolt holes) for anchoring the assembly to the ground.
Also excluded from the scope of these Orders are accessories that
are independently bolted to the floor and not attached to the rack
system itself, i.e., column protectors, corner guards, bollards, and
end row and end of aisle protectors.
Merchandise covered by these Orders is currently classified in the
Harmonized Tariff Schedule of the United States (HTSUS) under the
following subheadings: 7326.90.8688, 9403.20.0081, and 9403.90.8041.
Subject merchandise may also enter under subheadings 7308.90.3000,
7308.90.6000, 7308.90.9590, and 9403.20.0090. The HTSUS subheadings are
provided for convenience and U.S. Customs purposes only. The written
description of the scope is dispositive.
Continuation of the Orders
As a result of the determinations by Commerce and the ITC that
revocation
[[Page 11722]]
of the Orders would likely lead to the continuation or recurrence of
dumping, countervailable subsidies, and material injury to an industry
in the United States, pursuant to section 751(d)(2) of the Act,
Commerce hereby orders the continuation of the Orders. U.S. Customs and
Border Protection will continue to collect AD and CVD cash deposits at
the rates in effect at the time of entry for all imports of subject
merchandise.
The effective date of the continuation of the Orders will be March
5, 2025.\7\ Pursuant to section 751(c)(2) of the Act and 19 CFR
351.218(c)(2), Commerce intends to initiate the next five-year reviews
of the Orders no later than 30 days prior to the fifth anniversary of
the date of the last determination by the ITC.
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\7\ See ITC Final Determination.
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Administrative Protective Order (APO)
This notice also serves as a final reminder to parties subject to
an APO of their responsibility concerning the return or destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3), which continues to govern business proprietary
information in this segment of the proceeding. Timely written
notification of the return or 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
These five-year sunset reviews and this notice are in accordance
with section 751(c) and 751(d)(2) of the Act and this notice is
published pursuant to section 777(i) of the Act and 19 CFR
351.218(f)(4).
Dated: March 5, 2025.
Christopher Abbott,
Deputy Assistant Secretary for Policy and Negotiations, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance.
[FR Doc. 2025-03860 Filed 3-10-25; 8:45 am]
BILLING CODE 3510-DS-P