Countervailing Duty Investigation of Boltless Steel Shelving Units Prepackaged for Sale From the People's Republic of China: Preliminary Determination and Alignment of Final Determination With Final Antidumping Duty Determination

Federal Register, Volume 80 Issue 20 (Friday, January 30, 2015)

Federal Register Volume 80, Number 20 (Friday, January 30, 2015)

Notices

Pages 5089-5091

From the Federal Register Online via the Government Printing Office www.gpo.gov

FR Doc No: 2015-01816

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DEPARTMENT OF COMMERCE

International Trade Administration

C-570-019

Countervailing Duty Investigation of Boltless Steel Shelving Units Prepackaged for Sale From the People's Republic of China: Preliminary Determination and Alignment of Final Determination With Final Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (the ``Department'') preliminarily determines that countervailable subsidies are being provided to producers and exporters of boltless steel shelving units prepackaged for sale (``boltless steel shelves'') from the People's Republic of China (the ``PRC''). We invite interested parties to comment on this preliminary determination.

DATES: Effective Date: January 30, 2015.

FOR FURTHER INFORMATION CONTACT: Susan Pulongbarit or Paul Walker, AD/

CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230; telephone 202.482.4031 or 202.482.0413, respectively.

SUPPLEMENTARY INFORMATION:

Scope of the Investigation

The scope of the investigation covers boltless steel shelving units prepackaged for sale, with or without decks. The term ``prepackaged for sale'' means that, at a minimum, the steel vertical supports (i.e., uprights and posts) and steel horizontal supports (i.e., beams, braces) necessary to assemble a completed shelving unit (with or without decks) are packaged together for ultimate purchase by the end-user. The scope also includes add-on kits. Add-on kits include, but are not limited to, kits

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that allow the end-user to add an extension shelving unit onto an existing boltless steel shelving unit such that the extension and the original unit will share common frame elements (e.g., two posts). The term ``boltless'' refers to steel shelving in which the vertical and horizontal supports forming the frame are assembled primarily without the use of nuts and bolts or screws. The vertical and horizontal support members for boltless steel shelving are assembled by methods such as, but not limited to, fitting a rivet, punched or cut tab or other similar connector on one support into a hole, slot or similar receptacle on another support. The supports lock together to form the frame for the shelving unit, and provide the structural integrity of the shelving unit separate from the inclusion of any decking. The incidental use of nuts and bolts or screws to add accessories, wall anchors, tie-bars or shelf supports does not remove the product from scope. Boltless steel shelving units may also come packaged as partially assembled, such as when two upright supports are welded together with front-to-back supports, or are otherwise connected, to form an end unit for the frame. The boltless steel shelving covered by this investigation may be commonly described as rivet shelving, welded frame shelving, slot and tab shelving, and punched rivet (quasi-rivet) shelving as well as by other trade names. The term ``deck'' refers to the shelf that sits on or fits into the horizontal supports (beams or braces) to provide the horizontal storage surface of the shelving unit.

The scope includes all boltless steel shelving meeting the description above, regardless of (1) vertical support or post type (including but not limited to open post, closed post and tubing); (2) horizontal support or beam/brace profile (including but not limited to Z-beam, C-beam, L-beam, step beam and cargo rack); (3) number of supports; (4) surface coating (including but not limited to paint, epoxy, powder coating, zinc and other metallic coating); (5) number of levels; (6) weight capacity; (7) shape (including but not limited to rectangular, square, and corner units); (8) decking material (including but not limited to wire decking, particle board, laminated board or no deck at all); or (9) the boltless method by which vertical and horizontal supports connect (including but not limited to keyhole and rivet, slot and tab, welded frame, punched rivet and clip).

Specifically excluded from the scope are:

wall-mounted shelving, defined as shelving that is hung on the wall and does not stand on, or transfer load to, the floor; \1\

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\1\ The addition of a wall bracket or other device to attach otherwise freestanding subject merchandise to a wall does not meet the terms of this exclusion.

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wire shelving units, which consist of shelves made from wire that incorporates 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 the finished shelving unit;

bulk-packed parts or components of boltless steel shelving units; and

made-to-order shelving systems.

Subject boltless steel shelving enters the United States through Harmonized Tariff Schedule of the United States (``HTSUS'') statistical subheadings 9403.20.0018 and 9403.20.0020, but may also enter through HTSUS 9403.10.0040. While HTSUS subheadings are provided for convenience and Customs purposes, the written description of the scope of this investigation is dispositive.

Methodology

The Department is conducting this countervailing duty (``CVD'') investigation in accordance with section 701 of the Tariff Act of 1930, as amended (the ``Act''). For a full description of the methodology underlying our preliminary conclusions, see the Preliminary Decision Memo.\2\ The Preliminary Decision Memo is a public document and is on file electronically via Enforcement & Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (``ACCESS'').\3\ ACCESS is available to registered users at http://access.trade.gov, and is available to all parties in the Central Records Unit, room 7046 of the main Department of Commerce building. In addition, a complete version of the Preliminary Decision Memo can be accessed directly on the Internet at http://trade.gov/enforcement/frn/index.html. The signed Preliminary Decision Memo and the electronic versions of the Preliminary Decision Memo are identical in content.

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\2\ See Memorandum from Christian Marsh, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, to Paul Piquado, Assistant Secretary for Enforcement and Compliance, ``Countervailing Duty Investigation of Boltless Steel Shelving Units Prepackaged for Sale from the People's Republic of China: Decision Memorandum for the Preliminary Determination,'' dated concurrently with this notice (``Preliminary Decision Memo'').

\3\ On November 24, 2014, Enforcement and Compliance changed the name of Enforcement and Compliance's AD and CVD Centralized Electronic Service System (``IA ACCESS'') to AD and CVD Centralized Electronic Service System (``ACCESS''). The Web site location was changed from http://iaaccess.trade.gov to http://access.trade.gov. The Final Rule changing the references to the Regulations can be found at 79 FR 69046.

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The Department notes that, in making these findings, we relied, in part, on facts available and, because one or more respondents did not act to the best of their ability to respond to the Department's requests for information, we drew an adverse inference where appropriate in selecting from among the facts otherwise available.\4\ For further information, see ``Use of Facts Otherwise Available and Adverse Inferences'' in the Preliminary Decision Memo.

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\4\ See sections 776(a) and (b) of the Act.

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Alignment

As noted in the Preliminary Decision Memo, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), we are aligning the final CVD determination in this investigation with the final determination in the companion antidumping duty (``AD'') investigation of steel shelves from the PRC.\5\ Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled to be issued no later than June 30, 2014, unless postponed.

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\5\ See Boltless Steel Shelving Units Prepackaged for Sale from the People's Republic of China, 79 FR 56562 (September 22, 2014).

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Preliminary Determination and Suspension of Liquidation

In accordance with section 703(d)(1)(A)(i) of the Act, we calculated an estimated individual countervailable subsidy rate for each producer/exporter of the subject merchandise individually investigated. We preliminarily determine these rates to be:

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Company Subsidy rate

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Ningbo ETDZ Huixing Trade Co., Ltd...................... 12.21

NanjingTopsun Racking Manufacturing Co., Ltd............ 14.53

All Others.............................................. 13.37

Dalian Huameilong Metal Products Co., Ltd.*............. 55.75

Dongguan Yuan Er Sheng Machinery Source Hardware Co., 55.75

Ltd.*..................................................

Dong Rong Metal Products Co., Ltd.*..................... 55.75

Global Storage Equipment Manufacturer Limited*.......... 55.75

Intradin (Shanghai) Import & Export Co., Ltd.*.......... 55.75

Jinhua Development District Hongfa Tool, Ltd.*.......... 55.75

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Kunshan Jisheng Metal & Plastic Co., Ltd.*.............. 55.75

Nanjing Huade Warehousing Equipment Manufacturing Co. 55.75

Ltd.*..................................................

Nanjing Whitney Metal Products Co., Ltd.*............... 55.75

Nanjing Yodoly Logistics Equipments Manufacturing Co., 55.75

Ltd.*..................................................

Ningbo Decko Metal Products Trade Co., Ltd.*............ 55.75

Ningbo Haifa Metal Works Co., Ltd.*..................... 55.75

Ningbo HaiFa Office Equipment Co., Ltd.*................ 55.75

Ningbo TLT Metal Products Co., Ltd.*.................... 55.75

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* Non-cooperative company to which an adverse facts available rate is

being applied. See ``Use of Facts Otherwise Available and Adverse

Inferences'' section in the Preliminary Decision Memorandum.

In accordance with sections 703(d)(1)(B) and (2) of the Act, we are directing U.S. Customs and Border Protection to suspend liquidation of all entries of steel shelves from the PRC that are entered, or withdrawn from warehouse, for consumption on or after the date of the publication of this notice in the Federal Register, and to require a cash deposit for such entries of merchandise in the amounts indicated above.

In accordance with sections 703(d) and 705(c)(5)(A) of the Act, for companies not investigated, we apply an ``all-others'' rate, which is normally calculated by weighting the subsidy rates of the individual companies selected as mandatory respondents by those companies' exports of the subject merchandise to the United States. Under section 705(c)(5)(i) of the Act, the all-others rate should exclude zero and de minimis rates calculated for the exporters and producers individually investigated as well as rates based entirely on facts otherwise available. Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, we have not calculated the ``all-others'' rate by weighted averaging the rates of the two individually investigated respondents, because doing so risks disclosure of proprietary information. Therefore, for the ``all-others'' rate, we calculated a simple average of the two responding firms' rates.

Disclosure and Public Comment

The Department will disclose calculations performed for this preliminary determination to the parties within five days of the date of public announcement of this determination in accordance with 19 CFR 351.224(b). Case briefs or other written comments for all 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 final verification report is issued in this proceeding, and rebuttal briefs, limited to issues raised in case briefs, may be submitted no later than five days after the deadline date for case briefs.\6\ A table of contents, list of authorities used and an executive summary of issues should accompany any briefs submitted to the Department. This summary should be limited to five pages total, including footnotes.

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\6\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general filing requirements).

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Interested parties who wish to request a hearing, or to participate if one is requested, must submit a written request to the Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, filed electronically using ACCESS. An electronically filed document must be received successfully in its entirety by the Department's electronic records system, ACCESS, by 5:00 p.m. Eastern Standard Time, within 30 days after the date of publication of this notice.\7\ Requests should contain the party's name, address, and telephone number; the number of participants; and a list of the issues to be discussed. If a request for a hearing is made, the Department intends to hold the hearing at the U.S. Department of Commerce, 14th Street and Constitution Avenue NW., Washington, DC 20230, at a date, time and location to be determined. Parties will be notified of the date, time and location of any hearing.

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\7\ See 19 CFR 351.310(c).

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International Trade Commission Notification

In accordance with section 703(f) of the Act, we will notify the International Trade Commission (``ITC'') of our determination. In addition, we are making available to the ITC all non-privileged and non-proprietary information relating to this investigation. We will allow the ITC access to all privileged and business proprietary information in our files, provided the ITC confirms that it will not disclose such information, either publicly or under an administrative protective order, without the written consent of the Assistant Secretary for Enforcement and Compliance.

In accordance with section 705(b)(2) of the Act, if our final determination is affirmative, the ITC will make its final determination within 45 days after the Department makes its final determination.

This determination is issued and published pursuant to sections 703(f) and 777(i) of the Act and 19 CFR 351.205(c).

Dated: January 23, 2015.

Paul Piquado,

Assistant Secretary for Enforcement and Compliance.

Appendix--List of Topics Discussed in the Preliminary Decision Memo

  1. Summary

  2. Background

  3. Scope Comments

  4. Scope of the Investigation

  5. Alignment

  6. Respondent Selection

  7. Voluntary Respondent Treatment

  8. Injury Test

  9. Application of Countervailing Duty Law to Imports from the PRC

  10. Subsidies Valuation

  11. Use of Facts Otherwise Available and Adverse Inferences

  12. Analysis of Programs

  13. Verification

  14. Conclusion

FR Doc. 2015-01816 Filed 1-29-15; 8:45 a.m.

BILLING CODE 3510-DS-P

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