[Federal Register Volume 90, Number 18 (Wednesday, January 29, 2025)]
[Notices]
[Pages 8383-8386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01891]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-174]
Certain Brake Drums 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 U.S. Department of Commerce (Commerce) preliminarily
determines that certain brake drums from the People's Republic of China
(China) 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, 2023, through March 31, 2024. Interested parties are invited
to comment on this preliminary determination.
DATES: Applicable January 29, 2025.
FOR FURTHER INFORMATION CONTACT: Samuel Frost, AD/CVD Operations,
Office V, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-8180.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation in the Federal
Register on July 17, 2024.\1\ On July 22, 2024, Commerce tolled certain
deadlines in this administrative proceeding by seven days.\2\ On
November 20, 2024, Commerce postponed the preliminary determination of
this investigation until January 23, 2025.\3\
---------------------------------------------------------------------------
\1\ See Certain Brake Drums from the People's Republic of China
and the Republic of T[uuml]rkiye: Initiation of Less-Than-Fair-Value
Investigations, 89 FR 58116 (July 17, 2024) (Initiation Notice).
\2\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Proceedings,'' dated July 22, 2024.
\3\ See Certain Brake Drums from the Republic of T[uuml]rkiye
and the People's Republic of China: Postponement of Preliminary
Determinations in the Less-Than-Fair-Value Investigations, 89 FR
91675 (November 20, 2024).
---------------------------------------------------------------------------
For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\4\ 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. In addition, a complete
version of the Preliminary Decision Memorandum can be accessed directly
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
---------------------------------------------------------------------------
\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of Certain
Brake Drums from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
---------------------------------------------------------------------------
Scope of the Investigation
The products covered by this investigation are brake drums from
[[Page 8384]]
China. For a complete description of the scope of this investigation,
see appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\5\ in
the Initiation Notice, Commerce set aside a period of time for parties
to raise issues regarding product coverage (i.e., scope).\6\ 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.\7\ As discussed in the Preliminary Scope Decision
Memorandum, Commerce preliminarily modified the scope language as it
appeared in the Initiation Notice. In the Preliminary Scope Decision
Memorandum, Commerce established the deadline for parties to submit
scope case and rebuttal briefs.
---------------------------------------------------------------------------
\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\6\ See Initiation Notice, 89 FR at 58117.
\7\ See Memorandum, ``Antidumping Duty Investigations and
Countervailing Duty Investigations of Certain Brake Drums from the
People's Republic of China and the Republic of T[uuml]rkiye:
Preliminary Scope Decision Memorandum,'' dated concurrently with
this preliminary determination (Preliminary Scope Decision
Memorandum).
---------------------------------------------------------------------------
Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated constructed export
prices in accordance with section 772(b) of the Act. Because China is a
non-market economy (NME), within the meaning of section 771(18) of the
Act, Commerce has calculated normal value in accordance with section
773(c) of the Act. Furthermore, pursuant to sections 776(a) and (b) of
the Act, Commerce preliminarily has relied upon facts otherwise
available, with adverse inferences, for the China-wide entity. For a
full description of the methodology underlying Commerce's preliminary
determination, see the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\8\ Commerce 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\
---------------------------------------------------------------------------
\8\ See Initiation Notice, 89 FR at 58120.
\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
Commerce's website at https://enforcement.trade.gov/policy/bull05-1.pdf.
---------------------------------------------------------------------------
Separate Rates
We have preliminarily granted a separate rate to certain companies
that we did not select for individual examination.\10\ In calculating
the rate for non-individually examined separate rate respondents in an
NME LTFV investigation, Commerce normally looks to section 735(c)(5)(A)
of the Act, which pertains to the calculation of the all-others rate in
a market economy LTFV investigation, for guidance. Pursuant to section
735(c)(5)(A) of the Act, normally this rate shall be an amount equal to
the weighted-average of the estimated weighted average dumping margins
established for those companies individually examined, excluding zero
and de minimis dumping margins, and any dumping margins based entirely
under section 776 of the Act. Commerce calculated an individual
estimated weighted-average dumping margin for Shandong ConMet
Mechanical Co., Ltd. (Shandong ConMet) that is not zero, de minimis, or
based entirely on facts otherwise available. Thus, the weighted-average
dumping margin calculated for Shandong ConMet is the margin assigned to
the non-examined, separate rate companies in this investigation. See
the table below in the ``Preliminary Determination'' section of this
notice.
---------------------------------------------------------------------------
\10\ See Preliminary Decision Memorandum.
---------------------------------------------------------------------------
Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
----------------------------------------------------------------------------------------------------------------
Cash deposit rate
Weighted- average (adjusted for
Producer Exporter dumping margin subsidy offsets)
(percent) (percent)
----------------------------------------------------------------------------------------------------------------
Shandong ConMet Mechanical Co., Ltd...... Shandong ConMet Mechanical 109.64 109.64
Co., Ltd.
Liaoning Hechuang CV Parts MFG Co........ Liaoning Hechuang CV Parts 109.64 109.64
MFG Co.
Hebei OE Auto Spare Parts Co., Ltd....... Ningbo Qingchen 109.64 109.64
International Trade Co.,
Ltd.
Longyao County Yiheng Auto Parts Co., Ltd Qingdao Jasmine 109.64 109.64
International Trade Co.,
Ltd.
Shandong Lingang Nonferrous Metals Co., Qingdao Tordon Brake Co., 109.64 109.64
Ltd. Ltd.
Qiqihar Beimo Auto Parts Manufacturing Qiqihar Beimo Auto Parts 109.64 109.64
Co., Ltd. Manufacturing Co., Ltd.
Shandong Lingang Nonferrous Metals Co., Shandong Haoxin Co., Ltd.... 109.64 109.64
Ltd.
Shandong Hongma Engineering Machinery Shandong Hongma Engineering 109.64 109.64
Co., Ltd. Machinery Co., Ltd.
Longyao Gucheng Automobile Parts Factory. Shandong North Autotech Co., 109.64 109.64
Ltd.
Shandong Longji Machinery Co., Ltd....... Shanghai Winsun Auto Parts 109.64 109.64
Co., Ltd.
China-Wide Entity........................ ............................ * 160.79 150.25
----------------------------------------------------------------------------------------------------------------
* This rate is based on facts available with adverse inferences.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of any public announcement or, if there is no public
announcement, within five days of the date of publication of this
notice in the Federal Register in accordance with 19 CFR 351.224(b).
Consistent with 19 CFR 351.224(e), Commerce will analyze and, if
appropriate, correct any timely allegations of significant ministerial
errors by amending the preliminary determination. However, consistent
with 19 CFR 351.224(d), Commerce will not consider incomplete
allegations that do not address the significance standard under 19 CFR
351.224(g) following the preliminary determination. Instead, Commerce
will address such allegations in the final determination together with
[[Page 8385]]
issues raised in the case briefs or other written comments.
Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce 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), Commerce 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
Chinese 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 China-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 Chinese producer/exporter combination (or the China-wide entity)
that supplied that third-country exporter.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted
rates may be found in the 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, Commerce 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
export subsidies at the time the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify information relied upon in making its final determination.
Public Comment
Case briefs or other written non-scope-related comments may be
submitted to the Assistant Secretary for Enforcement and Compliance no
later than seven days after the date on which the last verification
report is issued in this investigation.\11\ Rebuttal briefs, limited to
issues raised in the case briefs, may be filed not later than five days
after the date for filing case briefs.\12\ Interested parties who
submit case briefs or rebuttal briefs in this proceeding must submit:
(1) a table of contents listing each issue; and (2) a table of
authorities.\13\
---------------------------------------------------------------------------
\11\ Case and rebuttal briefs submitted in response to this
preliminary determination should not include scope-related issues.
See 19 CFR 351.309(c)(1)(i); see also 19 CFR 351.303 (for general
filing requirements).
\12\ See 19 CFR 351.309(d); see also Administrative Protective
Order, Service, and Other Procedures in Antidumping and
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29,
2023) (APO and Service Final Rule).
\13\ See 19 CFR 351.309(c)(2) and (d)(2).
---------------------------------------------------------------------------
As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior
proceedings we have encouraged interested parties to provide an
executive summary of their briefs that should be limited to five pages
total, including footnotes. In this investigation, we instead request
that interested parties provide at the beginning of their briefs a
public, executive summary for each issue raised in their briefs.\14\
Further, we request that interested parties limit their executive
summary of each issue to no more than 450 words, not including
citations. We intend to use the executive summaries as the basis of the
comment summaries included in the issues and decision memorandum that
will accompany the final determination in this investigation. We
request that interested parties include footnotes for relevant
citations in the executive summary of each issue. Note that Commerce
has amended certain of its requirements pertaining to the service of
documents in 19 CFR 351.303(f).\15\
---------------------------------------------------------------------------
\14\ We use the term ``issue'' here to describe an argument that
Commerce would normally address in a comment of the Issues and
Decision Memorandum.
\15\ See APO and Service Final Rule.
---------------------------------------------------------------------------
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,
Commerce intends to hold the hearing 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.
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), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On December 11, 2024, pursuant to 19 CFR 351.210(e), Shandong
ConMet requested that, in the event of an affirmative preliminary
determination, Commerce postpone the final determination and that
provisional measures be extended to a period not to exceed six
months.\16\ 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 exporter accounts for a significant
proportion of exports of the subject merchandise; and (3) no compelling
reasons for denial exist, Commerce is postponing the final
determination and extending the provisional measures from a four-month
period to a period not greater than six
[[Page 8386]]
months. Accordingly, Commerce will make its final determination no
later than 135 days after the date of publication of this preliminary
determination.
---------------------------------------------------------------------------
\16\ See Shandong ConMet's Letter, ``Request for Postponement of
Final Determination and Extension of Provisional Measures,'' dated
December 11, 2024.
---------------------------------------------------------------------------
U.S. International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the U.S. 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: January 23, 2025.
Abdelali Elouaradia,
Acting Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is certain brake
drums made of gray cast iron, whether finished or unfinished, with
an actual or nominal inside diameter of 14.75 inches or more but not
over 16.6 inches, weighing more than 50 pounds. Unfinished brake
drums are those which have undergone some turning or machining but
are not ready for installation. Subject brake drums are included
within the scope whether imported individually or with non-subject
merchandise (for example, a hub), whether assembled or unassembled,
or if joined with non-subject merchandise. When a subject drum is
imported together with non-subject merchandise, such as, but not
limited to, a drum-hub assembly, only the subject drum is covered by
the scope.
Subject merchandise also includes finished and unfinished brake
drums that are further processed in a third country or in the United
States, including, but not limited to, assembly or any other
processing that would not otherwise remove the merchandise from the
scope of this investigation if performed in the country of
manufacture of the subject brake drums. The inclusion, attachment,
joining, or assembly of non-subject merchandise with subject drums
either in the country of manufacture of the subject drum or in a
third country does not remove the subject drum from the scope.
Specifically excluded is merchandise covered by the scope of the
antidumping and countervailing duty orders on certain chassis and
subassemblies thereof from the People's Republic of China. See
Certain Chassis and Subassemblies Thereof from the People's Republic
of China: Antidumping Duty Order, 86 FR 36093 (July 8, 2021) and
Certain Chassis and Subassemblies Thereof from the People's Republic
of China: Countervailing Duty Order and Amended Final Affirmative
Countervailing Duty Determination, 86 FR 24844 (May 10, 2021).
The scope also excludes composite brake drums that contain more
than 38 percent steel by weight.
The merchandise covered by this investigation is classifiable
under Harmonized Tariff Schedule of the United States (HTSUS)
subheading 8708.30.5020. The merchandise covered by this
investigation may be classifiable under HTSUS subheading
8708.30.5090 when entered as part of an assembly. Subject
merchandise may also enter under HTSUS subheading 8716.90.5060.
Although the HTSUS subheadings are provided for convenience and
customs purposes, the written description of the merchandise covered
by this investigation is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Discussion of the Methodology
V. Adjustment Under Section 777A(F) of the Act
VI. Adjustment to Cash Deposit Rate for Export Subsidies
VII. Currency Conversion
VIII. Recommendation
[FR Doc. 2025-01891 Filed 1-28-25; 8:45 am]
BILLING CODE 3510-DS-P