[Federal Register Volume 82, Number 220 (Thursday, November 16, 2017)]
[Notices]
[Pages 53456-53460]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24861]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-056]
Certain Tool Chests and Cabinets From the People's Republic of
China: Preliminary Affirmative Determination of Sales at Less Than Fair
Value, Postponement of Final Determination, and Extension of
Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) preliminarily
determines that certain tool chests and cabinets (tool chests) from the
People's Republic of China (the PRC) are being, or are likely to be,
sold in the United States at less than fair value (LTFV). The period of
investigation (POI) is October 1, 2016, through March 31, 2017.
DATES: Applicable November 16, 2017.
FOR FURTHER INFORMATION CONTACT: Yang Jin Chun or Andre Gziryan, 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) 482-5760 and (202) 482-
2201, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b)
[[Page 53457]]
of the Tariff Act of 1930, as amended (the Act). The Department
published the notice of initiation of this investigation on May 9,
2017.\1\ On August 21, 2017, the Department postponed the preliminary
determination of this investigation and the revised deadline is now
November 7, 2017.\2\ For a complete description of the events that
followed the initiation of this investigation, see the Preliminary
Decision Memorandum.\3\ A list of topics included 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 https://access.trade.gov,
and to all parties in the Central Records Unit, Room B8024 of the main
Department of Commerce building. In addition, a complete version of the
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/.
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\1\ See Certain Tool Chests and Cabinets from the People's
Republic of China and the Socialist Republic of Vietnam: Initiation
of Less-Than-Fair-Value Investigations, 82 FR 21523 (May 9, 2017)
(Initiation Notice).
\2\ See Certain Tool Chests and Cabinets from the People's
Republic of China and the Socialist Republic of Vietnam:
Postponements of Preliminary Determinations of Antidumping Duty
Investigations, 82 FR 39563 (August 21, 2017).
\3\ See Memorandum, ``Certain Tool Chests and Cabinets from the
People's Republic of China: Decision Memorandum for Preliminary
Affirmative Determination of Sales at Less Than Fair Value,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are tool chests from the
PRC. For a complete description of the scope of this investigation, see
Appendix I.
Scope Comments
In accordance with the preamble to the Department's regulations,\4\
the Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of the product coverage comments
and rebuttal responses submitted to the record for this investigation,
and accompanying discussion and analysis of all comments timely
received, see the Preliminary Scope Decision Memorandum.\6\ The
Department has preliminarily modified the scope language that appeared
in the Initiation Notice. See the revised scope in Appendix I to this
notice. The Department intends to address any scope comments received
\7\ and issue a final scope decision along with the final determination
in the concurrent countervailing duty (CVD) investigation on tool
chests from the PRC.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Certain Tool Chests and Cabinets from the
People's Republic of China and the Socialist Republic of Vietnam:
Scope Comments Decision Memorandum for the Preliminary
Determinations'' (Preliminary Scope Decision Memorandum), dated
September 8, 2017.
\7\ The scope case briefs were due 30 days after the publication
of Certain Tool Chests and Cabinets from the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination, 82
FR 43331 (September 15, 2017), which was Sunday, October 15, 2017.
See the Preliminary Scope Decision Memorandum at 6. Therefore, the
actual deadline for the scope case briefs was Monday, October 16,
2017. See 19 CFR 351.303(b)(1) (``For both electronically filed and
manually filed documents, if the applicable due date falls on a non-
business day, the Secretary will accept documents that are filed on
the next business day.''). The deadline for scope rebuttal briefs
was Monday, October 23, 2017.
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Methodology
The Department is conducting this investigation in accordance with
section 731 of the Act. The Department has calculated export prices and
constructed export prices in accordance with sections 772(a) and (b) of
the Act, respectively. Because the PRC is a non-market economy, within
the meaning of section 771(18) of the Act, the Department has
calculated normal value (NV) in accordance with section 773(c) of the
Act. In addition, pursuant to section 776(a) and (b) of the Act, the
Department preliminarily has relied on facts otherwise available, with
adverse inferences, for the PRC-wide entity. For a full description of
the methodology underlying the Department's preliminary determination,
see the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\8\ the Department stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\9\ In this investigation, we calculated
producer/exporter combination rates for respondents eligible for
separate rates.
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\8\ See Initiation Notice, 82 FR at 21528.
\9\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
the Department's Web site at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination
The Department preliminarily determines that the following
estimated weighted-average dumping margins exist: \10\
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\10\ The Tongrun Single Entity is comprised of Jiangsu Tongrun
Equipment Technology Co., Ltd., Changshu Taron Machinery Equipment
Manufacturing Co., Ltd., Changshu Tongrun Mechanical & Electrical
Equipment Manufacture Co., Ltd., and Shanghai Tongrun Import and
Export Co., Ltd. See Preliminary Decision Memorandum at 5-7.
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Estimated
weighted- Cash deposit
average rate (adjusted
Exporter Producer dumping for subsidy
margin offsets)
(percent) (percent)
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Geelong Sales (Macao Commercial Offshore) Zhongshan Geelong Manufacturing 168.93 158.30
Limited. Co., Ltd.
The Tongrun Single Entity..................... Changshu City Jiangrun Metal 90.40 74.56
Product Co., Ltd.
The Tongrun Single Entity..................... The Tongrun Single Entity....... 90.40 74.56
Changzhou Machan Steel Furniture Co., Ltd..... Changzhou Machan Steel Furniture 145.99 130.09
Co., Ltd.
Guangdong Hisense Home Appliances Co., Ltd.... Guangdong Hisense Home 145.99 130.09
Appliances Co., Ltd.
Hyxion Metal Industry......................... Hyxion Metal Industry........... 145.99 130.09
Jin Rong Hua Le Metal Manufactures Co., Ltd... Jin Rong Hua Le Metal 145.99 130.09
Manufactures Co., Ltd.
Ningbo Safewell International Holding Corp.... Zhejiang Xiunan Leisure Products 145.99 130.09
Co., Ltd.
Pinghu Chenda Storage Office Equipment Co., Pinghu Chenda Storage Office 145.99 130.09
Ltd. Equipment Co., Ltd.
Pooke Technology Co., Ltd..................... Pooke Technology Co., Ltd....... 145.99 130.09
Shanghai All-Fast International Trade Co., Ltd Kunshan Trusteel Industry Co. 145.99 130.09
Ltd.
[[Page 53458]]
Shanghai All-Fast International Trade Co., Ltd Shanghai All-Hop Industry Co., 145.99 130.09
Ltd.
Shanghai All-Fast International Trade Co., Ltd Shanghai Hom-Steel Industry Co., 145.99 130.09
Ltd.
Shanghai All-Hop Industry Co., Ltd............ Shanghai All-Hop Industry Co., 145.99 130.09
Ltd.
Trantex Product (Zhong Shan) Co., Ltd......... Trantex Product (Zhong Shan) 145.99 130.09
Co., Ltd.
PRC-Wide Entity............................... ................................ 168.93 158.39
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, the Department
will direct U.S. Customs and Border Protection (CBP) to suspend
liquidation 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, as discussed below. Further, pursuant to section
733(d)(1)(B) of the Act and 19 CFR 351.205(d), the Department will
instruct CBP to require a cash deposit equal to the weighted-average
amount by which normal value exceeds U.S. price, as indicated in the
chart above as follows: (1) For the producer/exporter combinations
listed in the table above, the cash deposit rate is equal to the
estimated weighted-average dumping margin listed for that combination
in the table; (2) for all combinations of PRC producers/exporters of
merchandise under consideration that have not established eligibility
for their own separate rates, the cash deposit rate will be equal to
the estimated weighted-average dumping margin established for the PRC-
wide entity; and (3) for all third-country exporters of merchandise
under consideration not listed in the table above, the cash deposit
rate is the cash deposit rate applicable to the PRC producer/exporter
combination (or the PRC-wide entity) that supplied that third-country
exporter.
To determine the cash deposit rate, the Department normally adjusts
the estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion CVD
proceeding when CVD provisional measures are in effect. Accordingly,
where the Department has made a preliminary affirmative determination
for domestic subsidy pass-through or export subsidies, the Department
has offset the calculated estimated weighted-average dumping margin by
the appropriate rate(s). Any such adjusted rates may be found in the
Preliminary Determination Section's chart of estimated weighted-average
dumping margins above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, the Department will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
The Department intends to disclose to interested parties the
calculations performed in connection with this preliminary
determination within five days of its public announcement or, if there
is no public announcement, within five days of the date of publication
of this notice in accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, the Department intends
to verify information relied upon in making its final determination.
Public Comment
Case briefs or other written comments, with the exception of scope
case briefs or scope comments,\11\ may be submitted to the Assistant
Secretary for Enforcement and Compliance no later than seven days after
the date on which the last final verification report is issued in this
investigation, unless the Department alters the time limit. Rebuttal
briefs, limited to issues raised in case briefs, may be submitted no
later than five days after the deadline date for case briefs.\12\
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.
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\11\ As explained above, the actual deadline for the scope case
briefs was Monday, October 16, 2017.
\12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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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, the
Department intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW., Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
All documents must be filed electronically using ACCESS. An
electronically-filed request must be received successfully in its
entirety by ACCESS no later than 5:00 p.m. Eastern Time on the
established due date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), the Department
requires that requests by respondents for postponement of a final
antidumping determination be accompanied by a request for extension of
provisional
[[Page 53459]]
measures from a four-month period to a period not more than six months
in duration.
On October 6, 2017, pursuant to 19 CFR 351.210(e)(2), Geelong and
the Tongrun Single Entity requested that the Department postpone the
final determination and that provisional measures be extended to a
period not to exceed six months.\13\ In accordance with section
735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because (1) the
preliminary determination is affirmative; (2) the requesting exporters
account for a significant proportion of exports of the subject
merchandise; and (3) no compelling reasons for denial exist, the
Department is postponing the final determination and extending the
provisional measures from a four-month period to a period not greater
than six months. Accordingly, the Department's final determination will
be published no later than 135 days after the date of publication of
this preliminary determination.
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\13\ See Letter from Geelong, ``Antidumping Duty Investigation
of Certain Tool Chests and Cabinets from the People's Republic of
China: Request for Extension of the Final Determination,'' dated
October 6, 2017, and Letter from the Tongrun Single Entity,
``Tongrun's Request to Extend the Final Determination in the
Antidumping Duty Investigation of Certain Tool Chests and Cabinets
from the People's Republic of China, A-570-056,'' dated October 6,
2017.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, the Department will
notify the International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. 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 whether imports of the subject merchandise are materially
injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: November 7, 2017.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The scope of this investigation covers certain metal tool chests
and tool cabinets, with drawers, (tool chests and cabinets), from
the People's Republic of China (the PRC). The scope covers all metal
tool chests and cabinets, including top chests, intermediate chests,
tool cabinets and side cabinets, storage units, mobile work benches,
and work stations and that have the following physical
characteristics:
(1) A body made of carbon, alloy, or stainless steel and/or
other metals;
(2) two or more drawers for storage in each individual unit;
(3) a width (side to side) exceeding 15 inches for side cabinets
and exceeding 21 inches for all other individual units but not
exceeding 60 inches;
(4) a body depth (front to back) exceeding 10 inches but not
exceeding 24 inches; and
(5) prepackaged for retail sale.
For purposes of this scope, the width parameter applies to each
individual unit, i.e., each individual top chest, intermediate top
chest, tool cabinet, side cabinet, storage unit, mobile work bench,
and work station.
Prepackaged for retail sale means the units may, for example, be
packaged in a cardboard box, other type of container or packaging,
and may bear a Universal Product Code, along with photographs,
pictures, images, features, artwork, and/or product specifications.
Subject tool chests and cabinets are covered whether imported in
assembled or unassembled form. Subject merchandise includes tool
chests and cabinets produced in the PRC but assembled, prepackaged
for retail sale, or subject to other minor processing in a third
country prior to importation into the United States. Similarly, it
would include tool chests and cabinets produced in the PRC that are
later found to be assembled, prepackaged for retail sale, or subject
to other minor processing after importation into the United States.
Subject tool chests and cabinets may also have doors and shelves
in addition to drawers, may have handles (typically mounted on the
sides), and may have a work surface on the top. Subject tool chests
and cabinets may be uncoated (e.g., stainless steel), painted,
powder coated, galvanized, or otherwise coated for corrosion
protection or aesthetic appearance.
Subject tool chests and cabinets may be packaged as individual
units or in sets. When packaged in sets, they typically include a
cabinet with one or more chests that stack on top of the cabinet.
Tool cabinets act as a base tool storage unit and typically have
rollers, casters, or wheels to permit them to be moved more easily
when loaded with tools. Work stations and mobile work benches are
tool cabinets with a work surface on the top that may be made of
rubber, plastic, metal, wood, or other materials.
Top chests are designed to be used with a tool cabinet to form a
tool storage unit. The top chests may be mounted on top of the base
tool cabinet or onto an intermediate chest. They are often packaged
as a set with tool cabinets or intermediate chests, but may also be
packaged separately. They may be packaged with mounting hardware
(e.g., bolts) and instructions for assembling them onto the base
tool cabinet or onto an intermediate tool chest which rests on the
base tool cabinet. Smaller top chests typically have handles on the
sides, while the larger top chests typically lack handles.
Intermediate tool chests are designed to fit on top of the floor
standing tool cabinet and to be used underneath the top tool chest.
Although they may be packaged or used separately from the tool
cabinet, intermediate chests are designed to be used in conjunction
with tool cabinets. The intermediate chests typically do not have
handles. The intermediate and top chests may have the capability of
being bolted together.
Side cabinets are designed to be bolted or otherwise attached to
the side of the base storage cabinet to expand the storage capacity
of the base tool cabinet.
Subject tool chests and cabinets also may be packaged with a
tool set included. Packaging a subject tool chest and cabinet with a
tool set does not remove an otherwise covered subject tool chest and
cabinet from the scope. When this occurs, the tools are not part of
the subject merchandise.
All tool chests and cabinets that meet the above definition are
included in the scope unless otherwise specifically excluded.
Excluded from the scope of the investigation are tool boxes,
chests, and cabinets with bodies made of plastic, carbon fiber,
wood, or other non-metallic substances.
Also excluded from the scope of the investigation are industrial
grade steel tool chests and cabinets. The excluded industrial grade
steel tool chests and cabinets are those:
(1) Having a body that is over 60 inches in width; or
(2) having each of the following physical characteristics:
(a) A body made of steel that is 0.047 inches or more in
thickness;
(b) a body depth (front to back) exceeding 21 inches; and
(c) a unit weight that exceeds the maximum unit weight shown
below for each width range:
[[Page 53460]]
[GRAPHIC] [TIFF OMITTED] TR16NO17.284
Also excluded from the scope of the investigation are service
carts. The excluded service carts have all of the following
characteristics:
(1) Casters, wheels, or other similar devices which allow the
service cart to be rolled from place to place;
(2) a flat top or flat lid on top of the unit that opens;
(3) a space or gap between the casters, wheels, or other similar
devices, and the bottom of the enclosed storage space (e.g.,
drawers) of at least 10 inches; and
(4) a total unit height, including casters, of less than 48
inches.
Also excluded from the scope of the investigation are non-mobile
work benches. The excluded non-mobile work benches have all of the
following characteristics:
(1) A solid top working surface;
(2) no drawers, one drawer, or two drawers in a side-by-side
configuration; and
(3) the unit is supported by legs and has no solid front, side,
or back panels enclosing the body of the unit.
Also excluded from the scope of this investigation are metal
filing cabinets that are configured to hold hanging file folders and
are classified in the Harmonized Tariff Schedule of the United
States (HTSUS) at subheading 9403.10.0020.
Merchandise subject to this investigation is classified under
HTSUS categories 9403.20.0021, 9403.20.0026, 9403.20.0030 and
7326.90.8688, but may also be classified under HTSUS category
7326.90.3500. While HTSUS subheadings are provided for convenience
and Customs purposes, the written description of the scope of this
investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Product Characteristics
VI. Selection of Respondents
VII. Affiliation and Single Entity
VIII. Discussion of the Methodology
A. Non-Market Economy Country
B. Surrogate Country
C. Surrogate Value Comments
D. Separate Rates
E. Dumping Margin for the Separate Rate Companies
F. Combination Rates
G. The PRC-Wide Entity
H. Application of Facts Available and Adverse Inferences
I. Date of Sale
J. Comparisons to Fair Value
K. U.S. Price
L. Normal Value
M. Factor Valuation Methodology
N. Currency Conversion
IX. Adjustment Under Section 777A(F) of the Act
X. Adjustment to Cash Deposit Rate for Export Subsidies
XI. Conclusion
[FR Doc. 2017-24861 Filed 11-15-17; 8:45 am]
BILLING CODE 3510-DS-P