[Federal Register Volume 78, Number 38 (Tuesday, February 26, 2013)]
[Notices]
[Pages 13017-13019]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-04280]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-984]


Drawn Stainless Steel Sinks From the People's Republic of China: 
Final Affirmative Countervailing Duty Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (``the Department'') determines 
that countervailable subsidies are being provided to producers and 
exporters of drawn stainless steel sinks (``SS sinks'') from the 
People's Republic of China (``PRC''). For information on the estimated 
subsidy rates, see the ``Suspension of Liquidation'' section of this 
notice.

DATES: Effective Date: February 26, 2013.

FOR FURTHER INFORMATION CONTACT: Shane Subler or Austin Redington, AD/
CVD Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
0189 or (202) 482-1664, respectively.

Petitioner

    The petitioner in this investigation is Elkay Manufacturing Company 
(``Petitioner'').

Period of Investigation

    The period for which we are measuring subsidies, or period of 
investigation, is January 1, 2011, through December 31, 2011.

Case History

    The following events have occurred since the Preliminary 
Determination.\1\
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    \1\ See Drawn Stainless Steel Sinks from the People's Republic 
of China: Preliminary Affirmative Countervailing Duty Determination, 
77 FR 46717 (August 6, 2012) (``Preliminary Determination'').
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    On August 7, 2012, the Department initiated its investigation of 
new subsidy allegations.\2\ Questionnaires regarding these subsidies 
were sent to the Government of the People's Republic of China 
(``GOC''), Guangdong Yingao Kitchen Utensils Co., Ltd. and Foshan 
Magang Kitchen Utensils Co., Ltd. (collectively, ``Yingao''), and 
Zhongshan Superte Kitchenware Co., Ltd. and Foshan Zhaoshun Trade Co., 
Ltd. (collectively, ``Superte''), and we received responses between 
August 22 and October 23, 2012.
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    \2\ See Memorandum from Jennifer Meek to Susan Kuhbach, ``Drawn 
Stainless Steel Sinks from the People's Republic of China 
Countervailing Duty Investigation: Initiation of New Subsidy 
Allegation,'' dated August 7, 2012.
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    On September 20, 2012, the Department published a notice aligning 
the deadline for this final countervailing duty (``CVD'') determination 
with the deadline for the final determination in the antidumping duty 
(``AD'') investigation.\3\
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    \3\ See Drawn Stainless Steel Sinks From the People's Republic 
of China: Countervailing Duty Investigation, 77 FR 58355 (September 
20, 2012).
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    We conducted verification of Yingao's, Superte's and the GOC's 
questionnaire responses from November 5, to November 16, 2012, and 
subsequently issued verification reports.
    On January 8, 2013, the Department issued post-preliminary analyses 
for Yingao and Superte on January 8, 2013.\4\
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    \4\ See Memoranda from Susan Kuhbach through Christian Marsh to 
Paul Piquado, ``Countervailing Duty Investigation of Drawn Stainless 
Steel Sinks from the People's Republic of China: Post-Preliminary 
Analysis Memorandum for Zhongshan Superte Kitchenware Co., Ltd 
(``Superte'') and Foshan Zhaoshun Trade Co., Ltd. (``Zhaoshun''),'' 
and ``Countervailing Duty Investigation of Drawn Stainless Steel 
Sinks from the People's Republic of China: Post-Preliminary Analysis 
Memorandum for Guangdong Yingao Kitchen Utensils Co., Ltd. 
(``Yingao'') and Foshan Magang Kitchen Utensils Co., Ltd. 
(``Magang''),'' dated January 8, 2013.
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    The GOC, Yingao, Superte, and Petitioner submitted case briefs on 
January 17, 2013, and rebuttal briefs on January 25, 2013.

Scope Comments

    In accordance with the preamble to the Department's regulations,\5\ 
in the Initiation Notice,\6\ we set aside a period of time for parties 
to raise issues regarding product coverage, and encouraged all parties 
to submit comments within 20 calendar days of publication of the 
Initiation Notice. As described in the Preliminary Determination, we 
received scope comments from Blanco America, Inc. (``Blanco''), an 
importer of subject merchandise, on April 10, 2012. Blanco's scope 
comments were addressed in the preliminary determination of the 
corresponding AD investigation to this case.\7\ As stated in the AD 
Preliminary Determination, we have determined not to change the scope 
language as presented below and in the Initiation Notice.
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    \5\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \6\ See Drawn Stainless Steel Sinks From the People's Republic 
of China: Initiation of Countervailing Duty Investigation, 77 FR 
18211 (March 27, 2012) (``Initiation Notice'').
    \7\ See Drawn Stainless Steel Sinks From the People's Republic 
of China: Antidumping Duty Investigation, 77 FR 60673 (October 4, 
2012) (``AD Preliminary Determination'') and accompanying 
Preliminary Determination Decision Memorandum at 3.
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Scope of the Investigation

    The products covered by the scope of this investigation are SS 
sinks with single or multiple drawn bowls, with or without drain 
boards, whether finished or unfinished, regardless of type of finish, 
gauge, or grade of stainless steel. Mounting clips, fasteners, seals, 
and sound-deadening pads are also covered by the scope of this 
investigation if they are included within the sales price of the SS 
sinks.\8\ For purposes of this scope definition, the term ``drawn'' 
refers to a manufacturing process using metal forming technology to 
produce a smooth basin with seamless, smooth, and rounded corners. SS 
sinks are available in various shapes and configurations and may be 
described in a number of ways including flush mount, top mount, or 
undermount (to indicate the attachment relative to the countertop). SS 
sinks with multiple drawn bowls that are joined through a welding 
operation to form one unit are covered by the scope of the 
investigation. SS sinks are covered by the scope of the investigation 
whether or not they are sold in conjunction with non-subject 
accessories such as faucets (whether attached or unattached), 
strainers, strainer sets, rinsing baskets, bottom grids, or other 
accessories.
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    \8\ Mounting clips, fasteners, seals, and sound deadening pads 
are not covered by the scope of this investigation if they are not 
included within the sales price of the SS sinks, regardless of 
whether they are shipped with or entered with SS sinks.
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    Excluded from the scope of the investigation are SS sinks with 
fabricated bowls. Fabricated bowls do not have seamless corners, but 
rather are made by notching and bending the stainless steel, and then 
welding and finishing the vertical corners to form the bowls. SS sinks 
with fabricated bowls

[[Page 13018]]

may sometimes be referred to as ``zero radius'' or ``near zero radius'' 
sinks.
    The products covered by this investigation are currently classified 
in the Harmonized Tariff Schedule of the United States (``HTSUS'') 
under statistical reporting number 7324.10.0000 and 7324.10.0010. 
Although the HTSUS subheading is provided for convenience and customs 
purposes, the written description of the products under investigation 
is dispositive of its inclusion as subject merchandise.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and all issues raised in 
the case and rebuttal briefs by parties to this investigation are 
addressed in the Memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to Paul 
Piquado, Assistant Secretary for Import Administration, titled ``Issues 
and Decision Memorandum for the Final Determination in the 
Countervailing Duty Investigation of Drawn Stainless Steel Sinks from 
the People's Republic of China'' (February 19, 2013) (hereafter, 
``Decision Memorandum''), which is hereby adopted by this notice. 
Attached to this notice as an Appendix is a list of the issues that 
parties have raised and to which we have responded in the Decision 
Memorandum. The Decision Memorandum is a public document and is on file 
electronically via Import Administration's Antidumping and 
Countervailing Duty Centralized Electronic Service System (``IA 
ACCESS''). IA ACCESS is available to registered users at http://iaaccess.trade.gov and in the Central Records Unit, room 7046 of the 
main Department of Commerce building. In addition, a complete version 
of the Decision Memorandum can be accessed directly on the internet at 
http://www.trade.gov/ia/. The signed Decision Memorandum and the 
electronic versions of the Decision Memorandum are identical in 
content.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Tariff Act of 
1930, as amended (``Act''), we have calculated an individual 
countervailable subsidy rate for each respondent. Section 
705(c)(5)(A)(i) of the Act states that for companies not individually 
investigated, we will determine an all others rate equal to the 
weighted average of the countervailable subsidy rates established for 
exporters and producers individually investigated, excluding any zero 
and de minimis countervailable subsidy rates, and any rates based 
entirely on adverse facts available under section 776 of the Act. 
Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, we 
have not calculated the ``all others'' rate by weight averaging the 
rates of Yingao and Superte, because doing so risks disclosure of 
proprietary information. Therefore, for the all others rate, we have 
calculated a simple average of Yingao's and Superte's rates.
    We determine the total estimated net countervailable subsidy rates 
to be:

------------------------------------------------------------------------
                                                            Net subsidy
                    Producer/Exporter                     rate (percent)
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Guangdong Yingao Kitchen Utensils Co., Ltd., and Foshan             4.80
 Magang Kitchen Utensils Co., Ltd.......................
Zhongshan Superte Kitchenware Co., Ltd..................           12.21
Foshan Zhaoshun Trade Co., Ltd..........................           12.26
All Others..............................................            8.51
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    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (``CBP'') to suspend liquidation of all entries of subject 
merchandise from the PRC that were entered, or withdrawn from 
warehouse, for consumption on or after August 6, 2012, the date of the 
publication of the Preliminary Determination in the Federal Register. 
In accordance with section 703(d) of the Act, we issued instructions to 
CBP to discontinue the suspension of liquidation for CVD purposes for 
subject merchandise entered, or withdrawn from warehouse, on or after 
December 4, 2012, but to continue the suspension of liquidation of all 
entries from August 6, 2012, through December 3, 2012.
    If the International Trade Commission (``ITC'') issues a final 
affirmative injury determination, we will issue a CVD order and 
reinstate the suspension of liquidation under section 706(a) of the 
Act, and we will require a cash deposit of estimated CVDs for such 
entries of merchandise in the amounts indicated above. If the ITC 
determines that material injury, or threat of material injury, does not 
exist, this proceeding will be terminated and all estimated duties 
deposited or securities posted as a result of the suspension of 
liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related 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 (``APO''), without the written 
consent of the Assistant Secretary for Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: February 19, 2013.
Paul Piquado,
Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Decision Memorandum

General Issues

Comment 1 Application of the CVD Law to the People's Republic of 
China
Comment 2 Double Counting/Overlapping Remedies

Policy Lending to the Stainless Steel Sinks Industry

Comment 3 National and Regional Policy Lending Programs
Comment 4 Specificity to Drawn Stainless Steel Sink Producers

Preferential Export Financing

Comment 5 Timing of Department's Determination
Comment 6 Contingency of Loans on Exports
Comment 7 Countervailability of One of Yingao's Loans

Provision of Stainless Steel Coil for LTAR

Comment 8 Specificity Under Section 771(5A)(D)(III)(i) of the Act
Comment 9 Benchmark Analysis
Comment 10 Government Authority Analysis
Comment 11 Superte's Additional Stainless Steel Coil Producer 
Information

[[Page 13019]]

Comment 12 Stainless Steel Quality Differences Between Benchmark and 
Superte's Purchases

Provision of Electricity for LTAR

Comment 13 Application of AFA and Benchmark Analysis

Provision of Land for LTAR

Comment 14 Policies and Incentives, Marketing of Industrial Zones, 
and Pricing

[FR Doc. 2013-04280 Filed 2-25-13; 8:45 am]
BILLING CODE 3510-DS-P