[Federal Register Volume 90, Number 117 (Friday, June 20, 2025)]
[Notices]
[Pages 26268-26271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-11383]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-199]
Temporary Steel Fencing From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination, Preliminary
Affirmative Critical Circumstances Determination, in Part, and
Alignment of Final Determination With the Final Antidumping
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that countervailable subsidies are being provided to
producers and exporters of temporary steel fencing from the People's
Republic of China (China). The period of investigation is January 1,
2024, through December 31, 2024.
DATES: Applicable June 20, 2025.
FOR FURTHER INFORMATION CONTACT: Natasia Byrd or Jana[eacute] Martin,
AD/CVD Operations Office VI, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-1240 or (202)
482-0238, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on February
11, 2025.\1\ On March 24, 2025, Commerce postponed the preliminary
determination in this investigation to June 16, 2025.\2\
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\1\ See Temporary Steel Fencing from the People's Republic of
China: Initiation of Countervailing Duty Investigation, 90 FR 9311
(February 11, 2025) (Initiation Notice).
\2\ See Temporary Steel Fencing from the People's Republic of
China: Postponement of Preliminary Determination of Countervailing
Duty Investigation, 90 FR 13450 (March 24, 2025).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\3\ A list of topics discussed in the Preliminary Decision
Memorandum is included in Appendix II to this notice. The Preliminary
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 https://access.trade.gov. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination of the Countervailing Duty Investigation
of Temporary Steel fencing from the People's Republic of China,''
dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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Scope of the Investigation
The product covered by this investigation is temporary steel
fencing from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ in
the Initiation Notice Commerce set aside a period of time for parties
to raise issues regarding product coverage (i.e., scope).\5\ Certain
interested parties commented on the scope of the less-than-fair-value
(LTFV) and countervailing duty (CVD) investigations as it appeared in
the Initiation Notice. Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the LTFV and CVD
investigations on or before the preliminary determination of the
companion LTFV investigation.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 90 FR at 9311-12.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily determines that there is a
subsidy, i.e., a financial contribution by an ``authority'' that gives
rise to a benefit to the recipient, and that the subsidy is
specific.\6\ For a full description of the methodology underlying our
preliminary determination, see the Preliminary Decision Memorandum.
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\6\ 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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Commerce notes that, in making these findings, it relied, in part,
on facts available, and, because it finds that one or more respondents
did not act to the best of their ability to respond to Commerce's
requests for information, it drew an adverse inference where
appropriate in selecting from among the facts otherwise available.\7\
For further information, see the ``Use of Facts Otherwise Available and
Adverse Inferences'' section in the Preliminary Decision Memorandum.
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\7\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 703(e)(1) of the Act, Commerce
preliminarily determines that critical circumstances exist with respect
to imports of subject merchandise from the mandatory respondent Hebei
Minmetals Co., Ltd. (Hebei Minmetals); with respect to imports of
subject merchandise from (1) Anping County Xingpeng Hardware Co., Ltd.,
(2) Shenzhou Yuelei Metal Products Co., Ltd.; (3) Sichuan Gold-Link
Industry, (4) Sourcing Solution Co., Ltd.; and (5) Tianjin Mengsheng
Metal Products, which have been assigned a rate based on total adverse
fact available (AFA); and, also with respect to all other producers and
exporters that enter subject merchandise under the all-others
countervailable subsidy rate. Commerce also preliminarily determines
that critical circumstances do not exist with respect to imports of
subject merchandise from mandatory respondent Shijiazhuang SD Company
Ltd. (Shijiazhuang SD). For a full description of the methodology and
the results of Commerce's analysis, see the Preliminary Decision
Memorandum.
[[Page 26269]]
Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), Commerce is aligning the final determination in this
investigation with the final determination in the concurrent LTFV
investigation of temporary steel fencing from China based on a request
made by ZND US Inc. (the petitioner).\8\ Consequently, the final CVD
determination will be issued on the same date as the final
determination in the LTFV investigation, which is currently scheduled
to be issued no later than October, 27, 2025, unless postponed.
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\8\ See Petitioner's Letter, ``Temporary Steel Fencing from the
People's Republic of China: Request for Alignment,'' dated June 5,
2025.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates determined entirely under
section 776 of the Act.
Commerce preliminarily calculated individual estimated
countervailable subsidy rates for Hebei Minmetals and Shijiazhuang SD
that are not zero, de minimis, or based entirely on facts otherwise
available. Because publicly-ranged sales values of exports of subject
merchandise to the United States for all mandatory respondents are not
on the record of this investigation, for the preliminary determination,
we calculated the countervailable subsidy rate applicable to all other
companies as the simple average of the countervailable subsidy rates
calculated for Hanwha Hebei Minmetals and Shijiazhuang SD.\9\
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\9\ With two respondents under examination, Commerce normally
calculates: (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents; (B) a simple average of the
estimated subsidy rates calculated for the examined respondents; and
(C) a weighted-average of the estimated subsidy rates calculated for
the examined respondents using each company's publicly-ranged U.S.
sale values for the merchandise under consideration. Commerce then
compares (B) and (C) to (A) and selects the rate closest to (A) as
the most appropriate rate for all other producers and exporters.
See, e.g., Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed-Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53662
(September 1, 2010), and accompanying Issues and Decision Memorandum
at Comment 1. However, because complete publicly ranged sales data
were not available, Commerce based the all-others rate on the simple
average of the countervailable subsidy rates calculated for the
mandatory respondents. See Memorandum, ``Calculation of the All-
Others Rate for the Preliminary Determination,'' dated concurrently
with this notice.
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Rate for Non-Responsive Companies
The following five exporters and/or producers of temporary steel
fencing from China refused delivery of and/or did not respond to the
quantity and value (Q&V) questionnaire: (1) Anping County Xingpeng
Hardware Co., Ltd.; (2) Shenzhou Yuelei Metal Products Co., Ltd.; (3)
Sichuan Gold-Link Industry; (4) Sourcing Solution Co., Ltd.; and (5)
Tianjin Mengsheng Metal Products (collectively, the non-responsive
companies). We find that, by not responding to the Q&V questionnaire,
these companies withheld requested information and significantly
impeded this proceeding. Thus, in reaching our preliminary
determination, pursuant sections 776(a)(2)(A) and (C) of the Act, we
are basing the countervailable subsidy rate for the non-responsive
companies on facts otherwise available.
In addition, we preliminary determine that an adverse inference is
warranted, pursuant to section 776(b) of the Act. By failing to submit
responses to Commerce's Q&V questionnaire, these companies did not
cooperate to the best of their ability in this investigation.
Accordingly, we preliminarily find that an adverse inference is
warranted to ensure that the non-responsive companies will not obtain a
more favorable result than had they fully complied with our request for
information. For more information on the application of adverse facts
available, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in the Preliminary Decision Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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Subsidy rate
Company (percent ad
valorem)
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Hebei Minmetals Co., Ltd.................................. 33.27
Shijiazhuang SD Company Ltd............................... 139.20
Anping County Xingpeng Hardware Co., Ltd.................. * 301.83
Shenzhou Yuelei Metal Products Co., Ltd................... * 301.83
Sichuan Gold-Link Industry................................ * 301.83
Sourcing Solution Co., Ltd................................ * 301.83
Tianjin Mengsheng Metal Products.......................... * 301.83
All-Others................................................ 86.24
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*Rate is based on facts available with adverse inferences.
Suspension of Liquidation
Section 703(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of: (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered; or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of subject
merchandise produced and/or exported by Hebei Minmetals, the non-
responsive companies (i.e., (1) Anping County Xingpeng Hardware Co.,
Ltd., (2) Shenzhou Yuelei Metal Products Co., Ltd.; (3) Sichuan Gold-
Link Industry, (4) Sourcing Solution Co., Ltd.; and (5) Tianjin
Mengsheng Metal Products) and all other producers and exporters whose
imports enter under the all-others countervailable subsidy rate.
Pursuant to section 703(d)(1)(B0 and (d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend the
liquidation of entries of subject merchandise, as described in the
scope of the investigation, entered, or withdrawn from warehouse, for
consumption on or after the date which is 90 days before the
publication of this notice, in accordance with section 703(e)(2)(A) of
the Act. Further, Commerce will instruct CBP to require a cash deposit
rate equal to the rates indicated above.
With regard Shijiazhuang SD, as a result of the preliminary
negative determination of critical circumstances, in accordance with
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce will direct U.S.
Customs and Border Protection (CBP) to suspend liquidation of entries
of subject merchandise as described in the scope of the investigation
entered, or withdrawn from warehouse, for consumption on or after the
date of publication of this notice in the Federal Register. Further,
pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a
cash deposit equal to the rates indicated above.
Disclosure
Commerce intends to disclose to interested parties the calculations
and analysis performed in this preliminary determination within five
days of its public announcement, or if there is no public announcement,
within five days of the publication of this notice in the Federal
Register in accordance with 19 CFR 351.224(b).
[[Page 26270]]
Consistent with 19 CFR 224(e), Commerce will analyze and, if
appropriate, correct any timely-filed allegations of significant
ministerial errors by amending the preliminary determination. However,
consistent with 19 CFR 351.224(d), Commerce will not consider
incomplete allegations that do not address the significance standard
under 19 CFR 351.224(g) following the preliminary determination.
Instead, Commerce will address such allegations in the final
determination together with issues raised in case briefs or other
written comments.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
All interested parties will have the opportunity to submit scope
case and rebuttal briefs on the preliminary decision regarding the
scope of the LTFV and CVD investigations. The deadlines to submit scope
case and rebuttal briefs will be provided in the preliminary scope
decision memorandum accompanying the preliminary determination of the
LTFV investigation. For all scope case and rebuttal briefs, parties
must file identical documents simultaneously on the records of the
concurrent LTFV and CVD investigations. No new factual information or
business proprietary information may be included in either scope case
or rebuttal briefs.
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than seven days after the date on which the last verification
report is issued in this investigation. Rebuttal briefs, limited to
issues raised in the case briefs, may be filed no later than five days
after the date for filing case briefs.\10\ Interested parties who
submit case briefs or rebuttal briefs in this proceeding must submit:
(1) a table of contents listing each issue; and (2) a table of
authorities.\11\
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\10\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\11\ See 19 CFR 351.309(c)(2) and (d)(2).
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As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their brief that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public executive summary for each issue raised in their briefs.\12\
Further, we request that interested parties limit their public
executive summary of each issue to no more than 450 words, not
including citations. We intend to use the public executive summaries as
the basis of the comment summaries included in the issues and decision
memorandum that will accompany the final determination in this
investigation. We request that interested parties include footnotes for
relevant citations in the executive summary of each issue. Note that
Commerce has amended certain of its requirements pertaining to the
service of documents in 19 CFR 351.303(f).\13\
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\12\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\13\ See APO and Service Final Rule.
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain:
(1) the party's name, address, and telephone number; (2) the number of
participants and whether any participant is a foreign national; and (3)
a list of the issues to be discussed. If a request for a hearing is
made, Commerce intends to hold the hearing at a date and time to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce will notify
the ITC of its determination. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the
determination whether imports of temporary steel fencing from China are
materially injuring, or threatening material injury to, the U.S.
industry.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act, and 19 CFR 351.205(c).
Dated: June 16, 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.
Appendix I
Scope of the Investigation
The merchandise subject to this investigation is temporary steel
fencing. Temporary steel fencing consists of temporary steel fence
panels and temporary steel fence stands. Temporary steel fence
panels, when assembled with temporary steel fence stands or other
types of stands outside of the scope, with each other, or with
posts, create a free-standing fence. Temporary steel fence panels
are covered by the scope regardless of whether they attach to a
stand or the type of stand to which they connect.
Temporary steel fence panels have a welded frame of steel tubing
and an interior consisting of chain link, steel wire mesh, or other
steel materials that are not more than 10 millimeters in actual
diameter or width. The steel tubing may surround all edges of the
temporary steel fence panel or only be attached along two parallel
sides of the panel. All temporary steel fence panels with at least
two framed sides are covered by the scope, regardless of the number
of edges framed with steel tubing.
Temporary steel fence panels are typically between 10 and 12
feet long and six to eight feet high, though all temporary steel
fence panels are covered by the scope regardless of dimension or
weight as long as a single panel is over six square feet in actual
surface area and weighs more than four pounds. Temporary steel fence
panels may be square, rectangular, or have rounded edges, and may or
may not have gates, doors, wheels, or barbed wire or other features,
though all temporary steel fence panels are covered by the scope
regardless of shape and other features. Temporary steel fence panels
may have one or more horizontal, vertical, or diagonal reinforcement
tubes made of steel welded to the inside frame, though all temporary
steel fence panels are covered by the scope regardless of the
existence, number, or type of reinforcement tubes attached to the
panel. Temporary steel fence panels may have extensions, pins,
tubes, or holes at the bottom of the panel, but all temporary steel
fence panels are covered regardless of the existence of such
features.
Steel fence stands are shapes made of steel that stand flat on
the ground and have one or two open tubes or solid pins into which
temporary steel fence panels are inserted to stand erect. The steel
fence stand may be made of welded steel tubing or may be a flat
steel plate with one or two tubes or pins welded onto the plate for
connecting the panels.
Temporary steel fencing is covered by the scope regardless of
coating, painting, or other finish. Both temporary steel fence
panels and temporary steel fence stands are covered by the scope,
whether imported assembled or unassembled, and whether imported
together or separately. Subject merchandise includes material
matching the above description that
[[Page 26271]]
has been finished, assembled, or packaged in a third country,
including by coating, painting, assembling, attaching to, or
packaging with another product, or any other finishing, assembly, or
packaging operation that would not otherwise remove the merchandise
from the scope of the investigation if performed in the country of
manufacture of the temporary steel fencing.
Temporary steel fencing is included in the scope of this
investigation whether or not imported attached to, or in conjunction
with, other parts and accessories such as posts, hooks, rings,
brackets, couplers, clips, connectors, handles, brackets, or
latches. If temporary steel fencing is imported attached to, or in
conjunction with, such non-subject merchandise, only the temporary
steel fencing is included in the scope.
Merchandise covered by this investigation is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under the subheading 7308.90.9590. Subject merchandise may
also enter under subheadings 7326.90.8688 and 7323.99.9080 of the
HTSUS. The HTSUS subheadings set forth above are provided for
convenience and U.S. Customs purposes only. The written description
of the scope is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Injury Test
IV. Preliminary Determination of Critical Circumstances
V. Analysis of China's Financial System
VI. Diversification of China's Economy
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Subsidies Valuation
IX. Benchmarks and Interest Rates
X. Analysis of Programs
XI. Recommendation
[FR Doc. 2025-11383 Filed 6-18-25; 8:45 am]
BILLING CODE 3510-DS-P