[Federal Register Volume 90, Number 134 (Wednesday, July 16, 2025)]
[Notices]
[Pages 31960-31962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-13323]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-187]
Overhead Door Counterbalance Torsion Springs From the People's
Republic of China: Preliminary Affirmative Determination of Critical
Circumstances, in Part, in the Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that critical circumstances exist, in part, with respect to
imports of overhead door counterbalance torsion springs (overhead door
springs) from certain producers and exporters from the People's
Republic of China (China). Interested parties are invited to comment on
this preliminary determination of critical circumstances.
DATES: Applicable July 16, 2025.
FOR FURTHER INFORMATION CONTACT: Laurel Smalley, AD/CVD Operations,
Office VIII, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue,
NW, Washington, DC 20230; telephone: (202) 482-3456.
SUPPLEMENTARY INFORMATION:
Background
On October 29, 2024, Commerce received a countervailing duty (CVD)
petition concerning imports of overhead door springs from China filed
in proper form on behalf of the petitioners, IDC Group Inc., Iowa
Spring Manufacturing, Inc., and Service Spring Corp (collectively, the
petitioners).\1\ On November 25, 2024, we initiated this investigation
\2\ and, on April 3, 2025, Commerce published its affirmative
Preliminary Determination.\3\
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\1\ See Petitioners' Letter, ``Petitions for the Imposition of
Antidumping and Countervailing Duties,'' dated October 29, 2024
(Petitions).
\2\ See Overhead Door Counterbalance Torsion Springs from the
People's Republic of China and India: Initiation of Countervailing
Duty Investigations, 89 FR 92901 (November 25, 2024) (Initiation
Notice).
\3\ See Overhead Door Counterbalance Torsion Springs from the
People's Republic of China: Preliminary Affirmative Countervailing
Duty Determination and Alignment of Final Determination With Final
Antidumping Duty Determination, 90 FR 14630 (April 3, 2025)
(Preliminary Determination), and accompanying Preliminary Decision
Memorandum (PDM).
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Commerce selected Foshan Nanhai Xulong Spring Factory (Xulong
Spring) and Tianjin Wangxia Spring Co., Ltd. (Tianjin Wangxia) as the
individually-examined respondents in this investigation.\4\
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\4\ See Memorandum, ``Respondent Selection,'' dated December 17,
2024.
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On June 24, 2025, the petitioners alleged that critical
circumstances exist with respect to imports of overhead door springs
from China, pursuant to section 703(e)(1) of the Tariff Act of 1930, as
amended (the Act), and 19 CFR 531.206.\5\
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\5\ See Petitioners' Letter, ``Petitioners' Allegation of
Critical Circumstances,'' dated June 24, 2025 (Critical
Circumstances Allegation).
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In accordance with section 703(e)(1) of the Act and 19 CFR
351.206(c)(1), because the petitioners submitted the critical
circumstances allegation more than 30 days before the scheduled date of
the final determination,\6\ Commerce will make a preliminary finding as
to whether there is a reasonable basis to
[[Page 31961]]
believe or suspect that critical circumstances exist. Commerce is
issuing its preliminary finding of critical circumstances within 30
days after the petitioners submitted the allegation.\7\
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\6\ The final determination for this CVD investigation is
currently due no later than August 11, 2025. See Preliminary
Determination, 90 FR at 14631.
\7\ See 19 CFR 351.206(c)(2)(ii). In this case, 30 days after
the petitioners submitted the allegation would place the deadline on
Thursday, July 24, 2025.
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Period of Investigation (POI)
The POI is January 1, 2023, through December 31, 2023.
Critical Circumstances Allegation
The petitioners allege that there was a massive increase of imports
of overhead door springs from China and provided monthly import data
for the period June 2024 through March 2025.\8\ The petitioners state
that a comparison of total imports, by quantity, for the base period
June 2024 through October 2024 to the comparison period November 2024
through March 2025, shows that imports of overhead door springs from
China increased by 25.44 percent,\9\ which is considered ``massive''
under 19 CFR 351.206(h)(2). The petitioners also allege that there is a
reasonable basis to believe that there are subsidies in this
investigation which are inconsistent with the Subsidies and
Countervailing Measures Agreement of the World Trade Organization (SCM
Agreement).\10\
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\8\ See Critical Circumstances Allegation at 7 and Attachment.
\9\ Id. at 7.
\10\ Id. at 4-5.
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Critical Circumstances Analysis
Section 703(e)(1) of the Act provides that Commerce will
preliminarily determine that critical circumstances exist in a CVD
investigation if there is a reasonable basis to believe or suspect
that: (A) the alleged countervailable subsidy is inconsistent with the
SCM Agreement; \11\ and (B) there have been massive imports of the
subject merchandise over a relatively short period.
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\11\ Commerce limits its critical circumstances findings to
those subsidies contingent upon export performance or use of
domestic over imported goods (i.e., those prohibited under Article 3
of the SCM Agreement). See, e.g., Final Affirmative Countervailing
Duty Determination and Final Negative Critical Circumstances
Determination: Carbon and Certain Alloy Steel Wire from Germany, 67
FR 55808-10 (August 30, 2002).
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In determining whether there are ``massive imports'' over a
``relatively short period,'' pursuant to section 703(e)(1)(B) of the
Act and 19 CFR 351.206(h) and (i), Commerce normally compares the
import volumes of the subject merchandise for at least three months
immediately preceding the filing of the petition (i.e., the base
period) to a comparable period of at least three months following the
filing of the petition (i.e., the comparison period). However, the
regulations also provide that if Commerce finds that importers, or
exporters or producers, had reason to believe, at some time prior to
the beginning of the proceeding, that a proceeding was likely, Commerce
may consider a period of not less than three months from the earlier
time.\12\ Imports must increase by at least 15 percent during the
comparison period to be considered massive.\13\
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\12\ See 19 CFR 351.206(i).
\13\ See 19 CFR 351.206(h)(2).
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Alleged Countervailable Subsidies Are Inconsistent With the SCM
Agreement
Xulong Spring
In the Preliminary Determination, we found that Xulong Spring,
pursuant to section 776(b) of the Act, received countervailable
subsidies inconsistent with the SCM Agreement under section
703(e)(1)(A) of the Act.\14\ Such programs include the Export Loans
from Chinese State-Owned Banks, Export Seller's Credit, Export Buyer's
Credit, Export Credit Guarantees, Government of China and Sub-Central
Government Subsidies for the Development of Famous Brands and China
World Top Brands, Foreign Trade Development Fund Grants, Export
Assistance Grants, Small and Medium-Sized Enterprises International
Market Exploration/Development Fund programs, which were found to be
export contingent in the Preliminary Determination.\15\ Thus, because
we preliminarily found that these programs are export contingent, we
preliminarily find that the criterion under section 703(e)(1)(A) of the
Act has been met.\16\
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\14\ See Preliminary Determination PDM at 18-23.
\15\ Id.
\16\ Id.
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Tianjin Wangxia
In the Preliminary Determination, we found that Tianjin Wangxia did
not receive any measurable countervailable subsidies found to be
inconsistent with the SCM Agreement under section 703(e)(1)(A) of the
Act.\17\ However, on April 4, 2025, Tianjin Wangxia withdrew from the
CVD investigation, and subsequently, Commerce cancelled verification of
Tianjin Wangxia.\18\ Therefore, because Commerce was unable to verify
Tianjin Wangxia's claims of non-use for certain countervailable,
export-contingent programs, we find that Tianjin Wangxia also received
export-contingent countervailable subsidies under the Export Loans from
Chinese State-Owned Banks, Export Seller's Credit, Export Buyer's
Credit, Export Credit Guarantees, Government of China and Sub-Central
Government Subsidies for the Development of Famous Brands and China
World Top Brands, Foreign Trade Development Fund Grants, Export
Assistance Grants, Small and Medium-Sized Enterprises International
Market Exploration/Development Fund programs. Thus, because we
preliminarily found that these programs are export contingent, we
preliminarily find that the criterion under section 703(e)(1)(A) of the
Act has been met with respect to Tianjin Wangxia.
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\17\ See Preliminary Determination PDM at 31-36.
\18\ See Tianjin Wangxia's Letter, ``Tianjin Wangxia's
Withdrawal of Participation in the Investigation,'' dated April 4,
2025; see also Commerce's Letter, ``Cancellation of Tianjin Wangxia
Spring Co., Ltd. Verification,'' dated April 4, 2025.
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Non-Responsive Companies
As explained in the Preliminary Determination, we preliminarily
applied total adverse facts available (AFA) to Beled Co., Ltd./Beled
(Shenxhen) Commerce Co., Ltd.; Jiaxing Taike Springs Co., Ltd; Kowloon
Metal Spring Factory; Ningbo I Promise Import Export; and Xiamen Globe
Truth GT Industries, pursuant to section 776(b) of the Act.\19\ In
applying total AFA to these five companies, we preliminarily determined
that each benefited from countervailable subsidies under the Export
Loans from Chinese State-Owned Banks, Export Seller's Credit, Export
Buyer's Credit, Export Credit Guarantees, Government of China and Sub-
Central Government Subsidies for the Development of Famous Brands and
China World Top Brands, Foreign Trade Development Fund Grants, Export
Assistance Grants, Small and Medium-Sized Enterprises International
Market Exploration/Development Fund programs. Because we found that
these programs are export contingent and therefore inconsistent with
the SCM Agreement in the Preliminary Determination, we now
preliminarily find, pursuant to section 776(b) of the Act, that the
five non-responsive companies meet the criterion delineated by section
703(e)(1)(A) of the Act.
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\19\ See Preliminary Determination PDM at 18-19.
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Massive Imports
There are no cooperative respondents under investigation.
Therefore, in accordance with section 703(e)(1), and sections 776(a)
and (b) of the Act, Commerce preliminarily determines that critical
circumstances exist with respect to imports of overhead door springs
from China for Xulong Spring,
[[Page 31962]]
Tianjin Wangxia, and the non-responsive companies.
To determine whether imports are massive within the meaning of 19
CFR 351.206(h) for all other exporters or producers, Commerce's normal
practice is to subtract shipments reported by the cooperating mandatory
respondents from the shipment data of subject merchandise. However, as
stated above, there are no cooperative respondents under investigation.
Therefore, for all other exporters and producers, we compared the
monthly shipment data using import data from Trade Data Monitor (TDM)
for the six months immediately preceding and following the filing of
the petition. Because the petition was filed on October 29, 2024, in
order to determine whether there was a massive surge in imports,
Commerce compared the total volume of shipments during the period May
2024 through October 2024 with the volume of shipments during the
period November 2024 through April 2025.\20\ The quantity of shipments
recorded in the TDM data for U.S. harmonized tariff schedule codes
7320.20.5020, 7320.20.5045, and 7320.20.5060 during the comparison
period did not exceed the quantity of shipments recorded for the base
period by 15 percent.\21\ Therefore, we determine that the record does
not support a determination that there is a massive surge in imports
between the base and comparison periods for all other exporters and
producers of overhead door springs from China.\22\
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\20\ See Memorandum, ``Preliminary Critical Circumstances
Analysis,'' dated concurrently with this memorandum (Critical
Circumstances Analysis Memorandum), at Attachment.
\21\ Id.
\22\ See, e.g., Prestressed Concrete Steel Wire from the
Republic of Turkey: Preliminary Affirmative Countervailing Duty
Determination, Preliminary Affirmative Critical Circumstances
Determination in Part, 85 FR 59287 (September 21, 2020), and
accompanying PDM at 5-7.
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Accordingly, consistent with section 703(e)(1) of the Act, Commerce
preliminarily determines that critical circumstances exist for imports
of overhead door springs from China with respect to Xulong Spring,
Tianjin Wangxia, and the non-responsive companies under investigation,
and that critical circumstances do not exist for all other exporters or
producers not individually examined. For the underlying data and
results of Commerce's analysis, see the Critical Circumstances Analysis
Memorandum.
Final Determination
We will make a final determination concerning critical
circumstances in the final determination of this investigation, which
is currently scheduled for August 11, 2025.
Public Comment
Case briefs or other written comments limited to Commerce's
preliminary critical circumstances determination may be submitted to
the Assistant Secretary for Enforcement and Compliance no later than
seven days after the date on which this notice is published in the
Federal Register. Rebuttal briefs, limited to issues raised in the case
briefs, may be filed not later than five days after the date for filing
case briefs.\23\ 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.\24\
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\23\ 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).
\24\ See 19 351.309(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.\25\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the 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).\26\
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\25\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\26\ See APO and Service Final Rule.
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Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, for Xulong
Spring, Tianjin Wangxia, and the non-responsive companies, we intend to
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
of any unliquidated entries of subject merchandise from China entered,
or withdrawn from warehouse for consumption, on or after January 3,
2025, which is 90 days prior to the date of publication of the
Preliminary Determination in the Federal Register. For such entries,
CBP shall require a cash deposit equal to the estimated preliminary
subsidy rates established in the Preliminary Determination. This
suspension of liquidation will remain in effect until further notice.
U.S. International Trade Commission (ITC) Notification
In accordance with section 703(f) of the Act, Commerce intends to
notify the ITC of this preliminary determination of critical
circumstances.
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: July 11, 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. 2025-13323 Filed 7-15-25; 8:45 am]
BILLING CODE 3510-DS-P