[Federal Register Volume 79, Number 183 (Monday, September 22, 2014)]
[Notices]
[Pages 56567-56571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22494]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-019]
Boltless Steel Shelving Units Prepackaged for Sale From the
People's Republic of China: Initiation of Countervailing Duty
Investigation
AGENCY: Enforcement & Compliance, International Trade Administration,
Department of Commerce.
DATES: Effective Date: September 22, 2014.
FOR FURTHER INFORMATION CONTACT: Paul Walker or Susan Pulongbarit, AD/
CVD Operations, Enforcement & Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230; telephone: 202.482.0413
or 202.482.4013, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On August 26, 2014, the Department of Commerce (the ``Department'')
received a countervailing duty (``CVD'') petition concerning imports of
boltless steel shelving units prepackaged for sale (``boltless steel
shelves'') from the People's Republic of China (``PRC''), filed in
proper form by Edsal Manufacturing Co., Inc. (``Petitioner''), a
domestic producer of boltless steel shelves. The CVD petition was
accompanied by an antidumping duty (``AD'') petition concerning imports
of boltless steel shelves from the PRC.\1\ On August 27, and August 28,
2014, the Department issued additional requests for information and
clarification of certain areas of the Petition. Based on the
Department's requests, Petitioner timely filed additional information
pertaining to the Petition on September 2, 4, and 11, 2014.\2\
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\1\ See Letter from Petitioner, regarding ``Boltless Steel
Shelving Units Prepackaged for Sale from the People's Republic of
China,'' dated August 26, 2014 (hereafter referred to as the
``Petition'').
\2\ See Petitioner's September 2, 4 & 11, 2014 responses.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the ``Act''), Petitioner alleges that producers/exporters of
boltless steel shelves in the PRC received countervailable subsidies
within the meaning of sections 701 and 771(5) of the Act, and that
imports from these producers/exporters materially injure, or threaten
material injury to, an industry in the United States.
The Department finds that Petitioner filed this Petition on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act, and Petitioner has demonstrated
sufficient industry support with respect to the CVD investigation that
it is requesting the Department to initiate (see ``Determination of
Industry Support for the Petition'' below).
Period of Investigation
The period of investigation (``POI'') is calendar year 2013, in
accordance with 19 CFR 351.204(b)(2).
Scope of the Investigation
The product covered by this investigation is boltless steel
shelving from the PRC. For a full description of the scope of the
investigation, see the
[[Page 56568]]
``Scope of the Investigation'' at the Appendix of this notice.
Comments on the Scope of the Investigation
During our review of the Petition, we solicited information from
Petitioner to ensure that the proposed scope language is an accurate
reflection of the products for which the domestic industry is seeking
relief. Moreover, as discussed in the preamble to the Department's
regulations,\3\ we are setting aside a period for interested parties to
raise issues regarding product coverage. If scope comments include
factual information,\4\ all such factual information should be limited
to public information. The Department encourages all interested parties
to submit such comments by 5:00 p.m. Eastern Time (ET) on October 6,
2014, which is 20 calendar days from the signature date of this
notice.\5\ Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on October 16, 2014, which
is 10 calendar days after the initial comments. The Department requests
that any factual information the parties consider relevant to the scope
of the investigation be submitted during this time period. However, if
a party subsequently finds that additional factual information
pertaining to the scope of the investigation may be relevant, the party
may contact the Department and request permission to submit the
additional information. All comments must be filed on the record of the
PRC CVD investigation, as well as the concurrent PRC AD investigation.
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\3\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\4\ See 19 CFR 351.102(b)(21).
\5\ The 20th day falls on October 5, 2014. As this is a Sunday,
we are applying our Next Business Day Rule. See Notice of
Clarification: Application of ``Next Business Day'' Rule for
Administrative Determination Deadlines Pursuant to the Tariff Act of
1930, As Amended, 70 FR24533 (May 10, 2005).
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Filing Requirements
All submissions to the Department must be filed electronically
using Enforcement & Compliance's Antidumping and Countervailing Duty
Centralized Electronic Service System (``IA ACCESS''). An
electronically filed document must be received successfully in its
entirety by the Department's electronic records system, IA ACCESS, by
the time and date set by the Department. Documents excepted from the
electronic submission requirements must be filed manually (i.e., in
paper form) with Enforcement and Compliance's APO/Dockets Unit, Room
1870, U.S. Department of Commerce, 14th Street and Constitution Avenue
NW., Washington, DC 20230, and stamped with the date and time of
receipt by the deadline established by the Department.\6\
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\6\ Information on help using IA ACCESS can be found at https://iaaccess.trade.gov/help.aspx and a handbook can be found at https://iaaccess.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
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Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, the Department
held consultations with the Government of the PRC (hereinafter, the
``GOC'') with respect to the Petition on September 10, 2014.\7\
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\7\ See ``Countervailing Duty Petition on Boltless Steel
Shelving Units Prepackaged for Sale from the People's Republic of
China: Consultations with the Government of the People's Republic of
China,'' dated September 10, 2014.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, the Department
shall: (i) Poll the industry or rely on other information in order to
determine if there is support for the petition, as required by
subparagraph (A); or (ii) determine industry support using a
statistically valid sampling method to poll the industry.
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs the Department to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission
(``ITC''), which is responsible for determining whether ``the domestic
industry'' has been injured, must also determine what constitutes a
domestic like product in order to define the industry. While both the
Department and the ITC must apply the same statutory definition
regarding the domestic like product,\8\ they do so for different
purposes and pursuant to a separate and distinct authority. In
addition, the Department's determination is subject to limitations of
time and information. Although this may result in different definitions
of the like product, such differences do not render the decision of
either agency contrary to law.\9\
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\8\ See section 771(10) of the Act.
\9\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, Petitioner does not offer
a definition of domestic like product distinct from the scope of the
investigation. Based on our analysis of the information submitted on
the record, we have determined that boltless steel shelves, as defined
in the scope of the investigation, constitute a single domestic like
product and we have analyzed industry support in terms of that domestic
like product.\10\
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\10\ See Countervailing Duty Investigation Initiation Checklist:
Boltless Steel Shelving Units Prepackaged for Sale from the People's
Republic of China (``Initiation Checklist''), at Attachment II,
Analysis of Industry Support for the Petitions Covering Boltless
Steel Shelving Units Prepackaged for Sale from the People's Republic
of China (``Attachment II''). This checklist is dated concurrently
with this notice and on file electronically via IA ACCESS. Access to
documents filed via IA ACCESS is also available in the Central
Records Unit, Room 7046 of the main Department of Commerce building.
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In determining whether Petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of Investigation'' section above. To
establish industry support, Petitioner provided 2013 production
quantities of the domestic like product produced by those in support of
the petition, and compared this to the estimated total production of
the domestic like product for the entire domestic industry.\11\
Petitioner estimated total 2013 production of the domestic like product
using their own production data and
[[Page 56569]]
knowledge they obtained about the industry.\12\ We have relied upon
data Petitioner provided for purposes of measuring industry
support.\13\
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\11\ See Volume I of the Petition, at 3-4 and at Exhibits GEN-1
and GEN-2.
\12\ Id.
\13\ See Initiation Checklist, at Attachment II.
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Based on information provided in the Petition and supplemental
submission, we determine that Petitioner has met the statutory criteria
for industry support under section 702(c)(4)(A)(i) of the Act because
the domestic producers (or workers) who support the Petition account
for at least 25 percent of the total production of the domestic like
product.\14\ Based on information provided in the Petition, the
domestic producers (or workers) have met the statutory criteria for
industry support under section 702(c)(4)(A)(ii) of the Act because the
domestic producers (or workers) who support the Petition account for
more than 50 percent of the production of the domestic like product
produced by that portion of the industry expressing support for, or
opposition to, the Petition. Accordingly, the Department determines
that the Petition was filed on behalf of the domestic industry within
the meaning of section 702(b)(1) of the Act.\15\
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\14\ Id.
\15\ Id.
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The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act and it has demonstrated sufficient
industry support with respect to the CVD investigation that it is
requesting the Department initiate.\16\
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\16\ Id.
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Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from the PRC materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
Petitioner alleges that imports of the subject merchandise are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S. industry
producing the domestic like product. In addition, Petitioner contends
that subject imports exceed the negligibility threshold provided for
under section 771(24)(A) of the Act.\17\
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\17\ See Volume I of the Petition, at 16 and at Exhibit GEN-6.
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Petitioner maintains that the industry's injured condition is
illustrated by reduced market share; underselling and price depression
or suppression; lost sales and revenues; decline in key trade and
financial variables; capacity utilization-ratio decline; and decline in
financial performance.\18\ We have assessed the allegations and
supporting evidence regarding material injury, threat of material
injury, and causation, and we have determined that these allegations
are properly supported by adequate evidence and meet the statutory
requirements for initiation.\19\
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\18\ See Volume I of the Petition, at 17-20, at Exhibits GEN-2,
GEN-6, AND GEN-9, and GEN-10.
\19\ See Initiation Checklist, at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Petitions Covering Steel Shelves from the People's Republic of
China.
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Initiation of Countervailing Duty Investigation
Section 702(b)(1) of the Act requires the Department to initiate a
CVD proceeding whenever an interested party files a CVD petition on
behalf of an industry that: (1) Alleges the elements necessary for an
imposition of a duty under section 701(a) of the Act; and (2) is
accompanied by information reasonably available to the Petitioner
supporting the allegations.
The Department has examined the Petition on boltless steel shelves
from the PRC and finds that it complies with the requirements of
section 702(b)(1) of the Act. Therefore, in accordance with section
702(b)(1) of the Act, we are initiating a CVD investigation to
determine whether producers/exporters of boltless steel shelves in the
PRC receive countervailable subsidies. For a discussion of evidence
supporting our initiation determination, see the CVD Initiation
Checklist which accompanies this notice.
Based on our review of the Petition, we find that there is
sufficient information to initiate a CVD investigation of 18 of the
alleged programs, and part of an additional alleged program. For the
other one program and part of another program alleged by Petitioner, we
have determined that the requirements for initiation have not been met.
For a full discussion of the basis for our decision to initiate or not
initiate on each program, see the CVD Initiation Checklist.
Respondent Selection
The Department normally selects respondents in a CVD investigation
using CBP entry data. However, for this investigation, the HTSUS
numbers the subject merchandise would enter under, 9403.20.0018 and
9403.20.0020, are basket categories containing many products unrelated
to boltless steel shelves, and much of the reported entry data do not
contain quantity information. Therefore, we cannot rely on CBP entry
data in selecting respondents. Instead, we will issue quantity and
value questionnaires to each potential respondent named in the
Petition,\20\ and will base respondent selection on the responses
received. In addition, the Department will post the quantity and value
questionnaire along with the filing instructions on the Enforcement &
Compliance Web site (http://trade.gov/enforcement/news.asp). Exporters
and producers that do not receive quantity and value questionnaires via
mail may still submit a quantity and value response, and can obtain a
copy from the Enforcement & Compliance Web site. The quantity and value
questionnaire must be submitted by all PRC exporters/producers no later
than September 26, 2014.
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\20\ See Volume I of the Petition at Exhibit I-9.
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All quantity and value questionnaires must be filed electronically
using ACCESS. An electronically filed document must be received
successfully in its entirety by the Department's electronic records
system, IA ACCESS, by 5 p.m. Eastern time by the date noted above.
Documents excepted from the electronic submission requirements must be
filed manually (i.e., in paper form) with Enforcement & Compliance's
APO/Dockets Unit, Room 1870, U.S. Department of Commerce, 14th Street
and Constitution Avenue NW., Washington, DC 20230, and stamped with the
date and time of receipt by the deadline noted above. We intend to make
our decision regarding respondent selection within 20 days of
publication of this Federal Register notice. Interested parties must
submit applications for disclosure under APO in accordance with 19 CFR
351.305(b). Instructions for filing such applications may be found on
the Department's Web site at http://enforcement.trade.gov/apo.
Distribution of Copies of the CVD Petition
In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), we have provided a copy of the public version of the
Petition to the representatives of the GOC. Because of the particularly
large number of producers/exporters identified in the Petition, the
Department considers the service of the public version of the petition
to the foreign producers/exporters satisfied by the delivery of the
[[Page 56570]]
public version to the GOC, consistent with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our initiation, as required by section
702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of boltless steel shelves from the PRC
materially injure, or threaten material injury to, a U.S. industry.\21\
A negative ITC determination will result in the investigation being
terminated.\22\ Otherwise, the investigation will proceed according to
statutory and regulatory time limits.
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\21\ See section 703(a)(2) of the Act.
\22\ See section 703(a)(1) of the Act.
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Submission of Factual Information
On April 10, 2013, the Department published Definition of Factual
Information and Time Limits, which modified two regulations related to
AD and CVD proceedings: (1) The definition of factual information (19
CFR 351.102(b)(21)), and (2) the time limits for the submission of
factual information (19 CFR 351.301). The final rule identifies five
categories of factual information in 19 CFR 351.102(b)(21), which are
summarized as follows: (i) Evidence submitted in response to
questionnaires; (ii) evidence submitted in support of allegations;
(iii) publicly available information to value factors under 19 CFR
351.408(c) or to measure the adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on the record by the Department;
and (v) evidence other than factual information described in (i)--(iv).
The final rule requires any party, when submitting factual information,
to specify under which subsection of 19 CFR 351.102(b)(21) the
information is being submitted and, if the information is submitted to
rebut, clarify, or correct factual information already on the record,
to provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct. The final rule also modified 19 CFR 351.301 so that, rather
than providing general time limits, there are specific time limits
based on the type of factual information being submitted. These
modifications are effective for all proceeding segments initiated on or
after May 10, 2013, and thus are applicable to this investigation.
Review the final rule, available at http://enforcement.trade.gov/frn/2013/1304frn/2013-08227.txt, prior to submitting factual information
for this investigation.
Extension of Time Limits
On September 20, 2013, the Department published Extension of Time
Limits,\23\ which modified one regulation related to AD and CVD
proceedings regarding the extension of time limits for submissions in
such proceedings (19 CFR 351.302(c)). These modifications are effective
for all segments initiated on or after October 21, 2013, and thus are
applicable to this investigation. All parties should review the final
rule, available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to requesting an extension.
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\23\ See Extension of Time Limits, 78 FR 57790 (September 20,
2013).
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\24\
Parties are hereby reminded that the Department issued a final rule
with respect to certification requirements, effective August 16, 2013,
and that the revised certification requirements are in effect for
company/government officials as well as their representatives. All
segments of any AD or CVD proceedings initiated on or after August 16,
2013, including this investigation, should use the formats for the
revised certifications provided at the end of the Certifications Final
Rule.\25\ The Department intends to reject factual submissions if the
submitting party does not comply with the applicable revised
certification requirements.
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\24\ See section 782(b) of the Act.
\25\ See Certification of Factual Information To Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Certifications Final
Rule); see also the frequently asked questions regarding the
Certifications Final Rule, available at the following: http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
administrative protective order in accordance with 19 CFR 351.305(b).
Instructions for filing such applications may be found on the
Department's Web site at http://enforcement.trade.gov/apo/index.html.
This notice is issued and published pursuant to section 777(i) of
the Act and 19 CFR 351.203(c).
Dated: September 15, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The scope of this investigation covers boltless steel shelving
units prepackaged for sale, with or without decks (``boltless steel
shelving''). 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 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
[[Page 56571]]
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;
\26\
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\26\ 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.
[FR Doc. 2014-22494 Filed 9-19-14; 8:45 am]
BILLING CODE 3510-DS-P