[Federal Register Volume 77, Number 42 (Friday, March 2, 2012)]
[Notices]
[Pages 12812-12814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-5186]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-974]
Steel Wheels From the People's Republic of China: Notice of
Preliminary Affirmative Determination of Critical Circumstances
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) has preliminarily
determined that critical circumstances exist with respect to imports of
steel wheels from the People's Republic of China (PRC).
DATES: Effective Date: March 2, 2012.
FOR FURTHER INFORMATION CONTACT: Robert Copyak or Eric Greynolds, AD/
CVD Operations, Office 3, Import Administration, International Trade
Administration, U.S. Department of Commerce, Room 4014, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: 202-482-2209
and 202-482-6071, respectively.
SUPPLEMENTARY INFORMATION:
Case History
On March 30, 2011, the Department received a countervailing duty
(CVD) petition concerning imports of steel wheels from the PRC filed in
proper form by Accuride Corporation (Accuride) and Hayes Lemmerz
International, Inc. (collectively, petitioners).\1\ This investigation
was initiated on April 19, 2011.\2\ The affirmative preliminary
determination was published on September 6, 2011.\3\
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\1\ See Petition for the Imposition of Countervailing Duties
(Petition). A public version of the Petition and all other public
documents and public versions of business proprietary documents for
this investigation are available on the public file in the Central
Records Unit (CRU), Room 7046 of the main Department of Commerce
building.
\2\ See Certain Steel Wheels From the People's Republic of
China: Initiation of Countervailing Duty Investigation, 76 FR 23302
(April 26, 2011) (Initiation Notice), and accompanying Initiation
Checklist.
\3\ See Certain Steel Wheels From the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination and
Alignment With Final Antidumping Duty Determination, 76 FR 55012
(September 6, 2011) (Preliminary Determination).
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On September 1, 2011, petitioners alleged that critical
circumstances exist with respect to imports of steel wheels from the
PRC and submitted U.S. Census Data in support of their allegation at
Exhibit I.\4\ On September 9, 2011, the Department requested from the
three mandatory respondents--the Jingu Companies,\5\ the Xingmin
Companies,\6\ and the Centurion Xingmin Companies \7\--monthly shipment
data of subject merchandise to the United States for the period October
2010 through June 2011.
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\4\ See Petitioners' Critical Circumstances Allegation
(September 1, 2011).
\5\ The Jingu Companies are Zhejiang Jingu Company Limited
(Zhejiang Jingu), Chengdu Jingu Wheel Co., Ltd. (Chengdu Jingu),
Shanghai Yata Industrial Co. Ltd. (Shanghai Yata), and Zhejiang
Wheel World Industrial Co., Ltd. (Wheel World).
\6\ The Xingmin Companies are Shandong Xingmin Wheel Co. Ltd.
(Xingmin) and Sino-tex (Longkou) Wheel Manufacturers, Inc. (Sino-
tex).
\7\ The Centurion Companies are Jining Centurion Wheels
Manufacturing Co. Ltd. (Jining Centurion) and Jining CII Wheel
Manufacture Co., Ltd. (Jining CII).
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On September 21, 2011, the Xingmin Companies submitted to the
Department their monthly shipment data of subject merchandise to the
United States for the period October 2010 through June 2011.\8\ At
verification, the Xingmin Companies provided some minor corrections to
these data.\9\ On September 25, 2011, the Jingu Companies submitted to
the Department their monthly shipment data of subject merchandise to
the United States for the period October 2010 through June 2011.\10\ At
verification, the Jingu Companies provided some minor corrections to
these data.\11\ On September 26, 2011, the Centurion Companies
submitted to the Department their monthly shipment data of subject
merchandise to the United States for the period October 2010 through
June 2011.\12\
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\8\ See the Xingmin Companies' third supplemental questionnaire
response titled ``Steel Wheels from China: Third Supplemental
Questionnaire Response'' (September 21, 2010) at Exhibit I.
\9\ See the Department's January 6, 2012, verification report
titled ``Verification Report of Xingmin Wheel Co. Ltd'' at 2 (filed
on IA ACCESS on January 10, 2012).
\10\ See the Jingu Companies' third supplemental questionnaire
response titled ``CVD Investigation of Steel Wheels from China:
Critical Circumstances Shipment Data'' (filed on IA ACCESS on
September 25, 2011, and dated September 26, 2011) at Exhibit I.
\11\ See the Department's January 31, 2012, verification report
titled ``Verification Report Regarding Information Submitted by
Zhejiang Jingu Company Limited'' at 2 and 5-6.
\12\ See the Centurion Companies' third supplemental
questionnaire response titled ``CVD Investigation of Steel Wheels
from China: Critical Circumstances Shipment Data'' (dated September
26, 2010) at Exhibit I.
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Period of Investigation
The period for which we are measuring subsidies, or the period of
investigation (POI), is calendar year 2010.
Scope of Investigation
The products covered by this investigation are steel wheels with a
wheel diameter of 18 to 24.5 inches. Rims and discs for such wheels are
included, whether imported as an assembly or separately. These products
are used with both tubed and tubeless tires. Steel wheels, whether or
not attached to tires or axles, are included. However, if the steel
wheels are imported as an assembly attached to tires or axles, the tire
or axle is not covered by the scope. The scope includes steel wheels,
discs, and rims of carbon and/or alloy composition and clad wheels,
discs, and rims when carbon or alloy steel represents more than fifty
percent of the product by weight. The scope includes wheels, rims, and
discs, whether coated or uncoated, regardless of the type of coating.
Imports of the subject merchandise are provided for under the
following categories of the Harmonized Tariff Schedule of the United
States (HTSUS): 8708.70.05.00, 8708.70.25.00, 8708.70.45.30, and
8708.70.60.30. Imports of the subject merchandise may also enter under
the following categories of the HTSUS: 8406.90.4580, 8406.90.7500,
8420.99.9000, 8422.90.1100, 8422.90.2100, 8422.90.9120, 8422.90.9130,
8422.90.9160, 8422.90.9195, 8431.10.0010, 8431.10.0090, 8431.20.0000,
8431.31.0020, 8431.31.0040, 8431.31.0060, 8431.39.0010, 8431.39.0050,
8431.39.0070, 8431.39.0080, 8431.43.8060, 8431.49.1010, 8431.49.1060,
8431.49.1090, 8431.49.9030, 8431.49.9040, 8431.49.9085, 8432.90.0005,
8432.90.0015, 8432.90.0030, 8432.90.0080, 8433.90.1000, 8433.90.5020,
8433.90.5040, 8436.99.0020, 8436.99.0090, 8479.90.9440, 8479.90.9450,
8479.90.9496, 8487.90.0080, 8607.19.1200, 8607.19.1500, 8708.70.1500,
8708.70.3500, 8708.70.4560, 8708.70.6060, 8709.90.0000, 8710.00.0090,
[[Page 12813]]
8714.19.0030, 8714.19.0060, 8716.90.1000, 8716.90.5030, 8716.90.5060,
8803.20.0015, 8803.20.0030, and 8803.20.0060.
These HTSUS numbers are provided for convenience and customs
purposes only; the written description of the scope is dispositive.
Comments of the Parties
In their critical circumstances allegation, Petitioners also allege
that there is a reasonable basis to believe that there are subsidies in
this investigation which are inconsistent with the World Trade
Organization (WTO) Agreement on Subsidies and Countervailing Measures
(Subsidies Agreement). Petitioners cite to the Preliminary
Determination, in which the Department preliminarily determined that
the Jingu Companies have received several subsidies which are
contingent on export performance. See Petitioners' Critical
Circumstances Allegation (September 1, 2011) at 2.
Petitioners also claim in their critical circumstances allegation
that there have been massive imports of steel wheels in the three
months following the filing of the petition on March 30, 2011.
Petitioners provided Census Bureau Data, which they contend demonstrate
that imports of subject merchandise increased by more than 15 percent,
which is required to be considered ``massive'' under section
351.206(h)(2) of the Department's regulations. Petitioners submit that,
by volume, imports increased approximately 48 percent from 510,174
wheels in the first quarter of 2011, to 753,604 wheels in the second
quarter of 2010. Id. at 3 and Exhibit 1. Petitioners also contend that,
by value, imports increased approximately 40 percent, from $17,787,704
in the first quarter of 2011, to $24,893,481 in the second quarter of
2010. Id.
Analysis
Section 703(e)(1) of the Tariff Act of 1930, as amended (the Act),
provides that the Department will preliminarily determine that critical
circumstances exist if there is a reasonable basis to believe or
suspect that: (A) The alleged countervailable subsidy is inconsistent
with the Subsidies Agreement, and (B) there have been massive imports
of the subject merchandise over a relatively short period.
When determining whether an alleged countervailable subsidy is
inconsistent with the Subsidies Agreement, the Department limits its
findings to those subsidies contingent on export performance or use of
domestic over imported goods (i.e., those prohibited under Article 3 of
the Subsidies Agreement).\13\ In the Preliminary Determination, the
Department found that, during the POI, the Jingu Companies received
countervailable benefits under five programs that are contingent upon
export performance. Therefore, we preliminarily determine that there is
a reasonable basis to believe or suspect that these five programs are
inconsistent with the Subsidies Agreement.
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\13\ See, e.g., Notice of Preliminary Negative Determination of
Critical Circumstances: Certain New Pneumatic Off-the-Road Tires
From the People's Republic of China, 73 FR 21588, 21589-90 (April
22, 2008), unchanged in Final Affirmative Countervailing Duty
Determination and Final Negative Critical Circumstances
Determination: Carbon and Certain Alloy Steel Wire Rod From Germany,
67 FR 55808, 55809 (August 30, 2002).
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In the Preliminary Determination, the Department found that, during
the POI, the Centurion Companies and Xingmin Companies did not receive
countervailable benefits under any programs that are contingent upon
export performance. Therefore, we preliminarily determine that there is
not a reasonable basis to believe or suspect that the Centurion
Companies and the Xingmin Companies received benefits inconsistent with
the Subsidies Agreement.
In determining whether imports of the subject merchandise have been
``massive,'' section 351.206(h)(1) of the Department's regulations
provides that the Department normally will examine: (i) The volume and
value of the imports; (ii) seasonal trends; and (iii) the share of
domestic consumption accounted for by the imports. In addition, the
Department will not consider imports to be massive unless imports
during the ``relatively short period'' (comparison period) have
increased by at least 15 percent compared to imports during an
``immediately preceding period of comparable duration'' (base period).
See 19 CFR 351.206(h)(2).
Section 351.206(i) of the Department's regulations defines
``relatively short period'' as normally being the period beginning on
the date the proceeding commences (i.e., the date the petition is
filed) and ending at least three months later. For consideration of
this allegation, we have used a three-month base period (i.e., January
2011 through March 2011) and a three-month comparison period (i.e.,
April 2011 through June 2011).
In determining whether there were massive imports from the Jingu
Companies, we analyzed the Jingu Companies' monthly shipment data for
the period January 2011 through June 2011. These data indicate that
there was not a massive increase in shipments of subject merchandise to
the United States by the Jingu Companies during the three-month period
immediately following the filing of the petition on March 30, 2011.
Specifically, shipments of subject merchandise to the United States
from the Jingu Companies decreased, both in terms of volume and value.
See the Memorandum to the File from Robert Copyak, Senior Financial
Analyst, AD/CVD Operations Office 3, titled ``Critical Circumstances
Shipment Data Analysis,'' (Critical Circumstances Memorandum)
(February, 2011) at Attachment I.
With regard to whether imports of subject merchandise by the ``all
other'' exporters of steel wheels in the PRC were massive, we
preliminarily determine that because there is evidence of the existence
of countervailable subsidies that are inconsistent with the Subsidies
Agreement, an analysis is warranted as to whether there was a massive
increase in shipment by the ``all other'' companies, in accordance with
section 351.206(h)(1) of the Department's regulations. Therefore, we
analyzed, in accordance with 19 CFR 351.206(i), monthly shipment data
for the period January 2011 through June 2011, using shipment data from
the International Trade Commission's (ITC's) Dataweb and adjusting it
to remove the shipments by the respondents participating in the
investigation.\14\ For this analysis, we used only the data pertaining
to the HTSUS numbers 8708.70.05.00, 8708.70.25.00, 8708.70.45.30, and
8708.70.60.30, which are the HTSUS categories under which a majority of
the subject merchandise entered the United States. We did not use the
HTSUS numbers described in the scope as categories that imports of
subject merchandise ``may also enter under'' because they are basket
categories. The data provided by the respondents and the data for
shipments by other exporters from the ITC's Dataweb indicate there was
a massive increase in shipments, as defined by 19 CFR 351.206(h). See
Critical Circumstances Memorandum at Attachment II.
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\14\ See, e.g., Certain Oil Country Tubular Goods From the
People's Republic of China: Preliminary Affirmative Countervailing
Duty Determination, Preliminary Negative Critical Circumstances
Determination, 74 FR 47210, 47212 (September 15, 2009), unchanged in
Certain Oil Country Tubular Goods From the People's Republic of
China: Final Affirmative Countervailing Duty Determination: Final
Negative Critical Circumstances Determination, 74 FR 64045 (December
7, 2009).
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Conclusion
We preliminarily determine that critical circumstances do not exist
for
[[Page 12814]]
imports of steel wheels from the three mandatory respondents the Jingu
Companies, Centurion Companies, and Xingmin Companies. Although the
Preliminary Determination indicates that the Jingu Companies benefited
from programs that are inconsistent with the Subsidies Agreement, the
Jingu Companies' shipment data does not indicate a massive increase in
shipments of subject merchandise to the United States. With regard to
Centurion and Xingmin, there is no evidence on the record indicating
that either company benefited from programs that are inconsistent with
the Subsidies Agreement and therefore we preliminarily determine that
critical circumstances do not exist with regard to shipments from these
two mandatory respondents.
We also preliminary determine, based on our analysis of the
shipment data provided by the three mandatory respondents and ITC
Dataweb data, that critical circumstances exist for imports from ``all
other'' exporters of steel from the PRC. We will make a final
determination concerning critical circumstances for steel wheels from
the PRC when we make our final countervailable subsidy determination in
this investigation.
Suspension of Liquidation
In accordance with section 703(e)(2)(A) of the Act, we are
directing U.S. Customs and Border Protection to suspend, with regard to
the ``all other'' companies only, liquidation of any unliquidated
entries of subject merchandise from the PRC entered, or withdrawn from
warehouse for consumption, on or after June 8, 2011, which is 90 days
prior to the date of publication of the Preliminary Determination in
the Federal Register.
ITC Notification
In accordance with section 703(f) of the Act, we will notify the
ITC of our determination.
This determination is issued and published pursuant to sections
703(f) and 777(i)(1) of the Act.
Dated: February 27, 2012.
Ronald K. Lorentzen
Acting Assistant Secretary for Import Administration.
[FR Doc. 2012-5186 Filed 3-1-12; 8:45 am]
BILLING CODE 3510-DS-P