[Federal Register Volume 78, Number 38 (Tuesday, February 26, 2013)]
[Notices]
[Pages 13017-13019]
From the Federal Register Online via the Government Publishing 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:
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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