Certain Chassis and Subassemblies Thereof From the People's Republic of China: Preliminary Affirmative Countervailing Duty Determination
| Citation | 86 FR 56 |
| Record Number | 2020-29101 |
| Published date | 04 January 2021 |
| Section | Notices |
| Court | Commerce Department,International Trade Administration |
Federal Register, Volume 86 Issue 1 (Monday, January 4, 2021)
[Federal Register Volume 86, Number 1 (Monday, January 4, 2021)]
[Notices]
[Pages 56-58]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-29101]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-136]
Certain Chassis and Subassemblies Thereof From the People's
Republic of China: Preliminary Affirmative Countervailing Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of certain chassis and subassemblies thereof (chassis) from
the People's Republic of China (China). The period of investigation is
January 1, 2019 through December 31, 2019. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable January 4, 2021.
FOR FURTHER INFORMATION CONTACT: William Langley or Nicholas
Czajkowski, AD/CVD Operations, Office I, Enforcement and Compliance,
International Trade Administration, U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-3681
or (202) 482-1395, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Trade Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on August 26,
2020.\1\ On October 1, 2020, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
December 28, 2020.\2\
---------------------------------------------------------------------------
\1\ See Certain Chassis and Subassemblies Thereof from the
People's Republic of China: Initiation of Countervailing Duty
Investigation, 85 FR 52549 (August 26, 2020) (Initiation Notice).
\2\ See Certain Chassis and Subassemblies Thereof from the
People's Republic of China: Postponement of Preliminary
Determination in the Countervailing Duty Investigation, 85 FR 63251
(October 7, 2020).
---------------------------------------------------------------------------
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 as 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 http://access.trade.gov. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at http://enforcement.trade.gov/frn/. The signed and electronic
versions of the Preliminary Decision Memorandum are identical in
content.
---------------------------------------------------------------------------
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination of the Countervailing Duty Investigation of Certain
Chassis and Subassemblies Thereof from the People's Republic of
China,'' dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are certain chassis and
subassemblies thereof 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\ the
Initiation Notice 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 investigation as it appeared in
the Initiation Notice. Because this investigation is not currently
aligned with the companion AD investigation, Commerce intends to issue
its preliminary decision regarding comments concerning the scope of the
AD and CVD investigations no later than 30 days after the publication
of this notice.
---------------------------------------------------------------------------
\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
---------------------------------------------------------------------------
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\
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
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 ``Use of Facts Otherwise Available and
Adverse Inferences'' in the Preliminary Decision Memorandum.
---------------------------------------------------------------------------
\7\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------
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. The rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
rates that are zero, de minimis, or rates based entirely under section
776 of the Act.
In this investigation, Commerce preliminarily calculated a rate for
Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan CIMC Vehicle Co.,
Ltd. (collectively, CIMC), the only mandatory respondent. The only rate
that is not zero, de minimis, or based entirely on facts otherwise
available is the rate calculated for CIMC. Consequently, the rate
calculated for CIMC is also assigned as the rate for all other
producers and exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
[[Page 57]]
------------------------------------------------------------------------
Subsidy rate
Company (percent)
------------------------------------------------------------------------
Qingdao CIMC Special Vehicles Co., Ltd. and Dongguan 38.52
CIMC Vehicle Co., Ltd \8\..............................
All Others.............................................. 38.52
------------------------------------------------------------------------
Suspension of Liquidation
---------------------------------------------------------------------------
\8\ Commerce preliminarily finds the following companies to be
cross-owned with Qingdao CIMC Special Vehicles Co., Ltd. and
Dongguan CIMC Vehicle Co., Ltd.: CIMC Vehicles (Group) Co., Ltd.;
Shenzhen CIMC Vehicle Co., Ltd.; Zhumadian CIMC Huajun Casting Co.,
Ltd.; China International Marine Containers (Group) Co., Ltd.;
Liangshan CIMC Dongyue Vehicles Co., Ltd.; Shandong Wanshida Special
Vehicle Manufacturing Co., Ltd.; Yangzhou CIMC Tonghua Special
Vehicles Co., Ltd.; Zhumadian CIMC Huajun Vehicle Co., Ltd.; Gansu
CIMC Huajun Vehicles Co., Ltd.; CIMC Vehicles (Liaoning) Co., Ltd.;
and Zhumadian CIMC Wanjia Axle Co., Ltd.
---------------------------------------------------------------------------
In accordance with section 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 section 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 its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Normally, Commerce verifies information using standard procedures,
including an on-site examination of original accounting, financial, and
sales documentation. However, due to current travel restrictions in
response to the global COVID-19 pandemic, Commerce is unable to conduct
on-site verification in this investigation. Accordingly, we intend to
verify the information relied upon in making the final determination
through alternative means in lieu of an on-site verification.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance. Commerce will
notify interested parties of the deadline for the submission of case
briefs. Rebuttal briefs, limited to issues raised in case briefs, may
be submitted no later than seven days after the deadline date for case
briefs.\9\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who
submit case briefs or rebuttal briefs in this investigation are
encouraged to submit with each argument: (1) A statement of the issue;
(2) a brief summary of the argument; and (3) a table of authorities.
---------------------------------------------------------------------------
\9\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements); Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020); and
Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-
19; Extension of Effective Period, 85 FR 41363 (July 10, 2020)
(Temporary Rule).
---------------------------------------------------------------------------
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
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date and time of
the hearing two days before the scheduled date.
Parties are reminded that briefs and hearing requests are to be
filed electronically using ACCESS and that electronically filed
documents must be received successfully in their entirety by 5 p.m.
Eastern Time on the due date. Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\10\
---------------------------------------------------------------------------
\10\ See Temporary Rule.
---------------------------------------------------------------------------
International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (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 final determination.
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: December 28, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation are chassis and
subassemblies thereof, whether finished or unfinished, whether
assembled or unassembled, whether coated or uncoated, regardless of
the number of axles, for carriage of containers, or other payloads
(including self-supporting payloads) for road, marine roll-on/roll-
off (RORO) and/or rail transport. Chassis are typically, but are not
limited to, rectangular framed trailers with a suspension and axle
system, wheels and tires, brakes, a lighting and electrical system,
a coupling for towing behind a truck tractor, and a locking system
or systems to secure the shipping container or containers to the
chassis using twistlocks, slide pins or similar attachment devices
to engage the corner fittings on the container or other payload.
Subject merchandise includes, but is not limited to, the
following subassemblies:
Chassis frames, or sections of chassis frames,
including kingpins or kingpin assemblies, bolsters consisting of
transverse beams with locking or support mechanisms, goosenecks,
drop assemblies, extension mechanisms and/or rear impact guards;
Running gear assemblies or axle assemblies for
connection to the chassis frame, whether fixed in nature or capable
of sliding fore and aft or lifting up and lowering down, which may
or may not include suspension(s) (mechanical or pneumatic), wheel
end components, slack adjusters, axles, brake chambers, locking
pins, and tires and wheels;
Landing gear (legs) or landing gear assemblies, for
connection to the chassis frame, capable of supporting the chassis
when it is not engaged to a tractor; and
Assemblies and/or components that connect to the
chassis frame or a section of the chassis frame, such as, but not
limited to, pintle hooks or B-trains (which include a fifth wheel),
which are capable of connecting a chassis to a converter dolly or
another chassis.
Importation of any of these subassemblies, whether assembled or
unassembled,
[[Page 58]]
constitutes an unfinished chassis for purposes of this
investigation.
Subject merchandise also includes chassis, whether finished or
unfinished, entered with or for further assembly with components
such as, but not limited to: Hub and drum assemblies, brake
assemblies (either drum or disc), axles, brake chambers, suspensions
and suspension components, wheel end components, landing gear legs,
spoke or disc wheels, tires, brake control systems, electrical
harnesses and lighting systems.
Processing of finished and unfinished chassis and components
such as trimming, cutting, grinding, notching, punching, drilling,
painting, coating, staining, finishing, assembly, or any other
processing either in the country of manufacture of the in-scope
product or in a third country does not remove the product from the
scope. Inclusion of other components not identified as comprising
the finished or unfinished chassis does not remove the product from
the scope.
This scope excludes dry van trailers, refrigerated van trailers
and flatbed trailers. Dry van trailers are trailers with a wholly
enclosed cargo space comprised of fixed sides, nose, floor and roof,
with articulated panels (doors) across the rear and occasionally at
selected places on the sides, with the cargo space being permanently
incorporated in the trailer itself. Refrigerated van trailers are
trailers with a wholly enclosed cargo space comprised of fixed
sides, nose, floor and roof, with articulated panels (doors) across
the rear and occasionally at selected places on the sides, with the
cargo space being permanently incorporated in the trailer and being
insulated, possessing specific thermal properties intended for use
with self-contained refrigeration systems. Flatbed (or platform)
trailers consist of load-carrying main frames and a solid, flat or
stepped loading deck or floor permanently incorporated with and
supported by frame rails and cross members.
The finished and unfinished chassis subject to this
investigation are typically classified in the Harmonized Tariff
Schedule of the United States (HTSUS) at subheadings: 8716.39.0090
and 8716.90.5060. Imports of finished and unfinished chassis may
also enter under HTSUS subheading 8716.90.5010. While the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the merchandise under investigation is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. New Subsidy Allegations
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Benchmarks and Discount Rates
IX. Analysis of Programs
X. Recommendation
[FR Doc. 2020-29101 Filed 12-31-20; 8:45 am]
BILLING CODE 3510-DS-P
