[Federal Register Volume 75, Number 111 (Thursday, June 10, 2010)]
[Notices]
[Pages 32902-32905]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-13971]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-950]
Wire Decking 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 wire decking from the People's Republic of China (the PRC). For
information on the estimated subsidy rates, see the ``Suspension of
Liquidation'' section of this notice.
EFFECTIVE DATE: June 10, 2010.
FOR FURTHER INFORMATION CONTACT: Kristen Johnson and John Conniff, AD/
CVD Operations, Office 3, Operations, Import Administration, U.S.
Department of Commerce, Room 4014, 14th Street and Constitution Avenue,
NW, Washington, DC 20230; telephone: (202) 482-4793 and (202) 482-1009,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This investigation covers 32 programs and the following producers/
exporters: Dalian Eastfound Metal Products Co., Ltd. (Eastfound Metal)
and its affiliate Dalian Eastfound Material Handling Products Co., Ltd.
(Eastfound Material) (collectively, the Eastfound Companies) and Dalian
Huameilong Metal Products Co., Ltd. (DHMP). The petitioners in this
investigation are AWP Industries, Inc., ITC Manufacturing, Inc., J&L
Wire Cloth, Inc., Nashville Wire Products Mfg., Co., Inc., and Wireway
Husky Corporation (collectively, the petitioners). In addition, the
Nucor Corporation is participating as a domestic interested party.
Period of Investigation
The period of investigation (the POI) for which we are measuring
subsidies is January 1, 2008, through December 31, 2008, which
corresponds to the PRC's most recently completed fiscal year at the
time we initiated this investigation. See 19 CFR 351.204(b)(2).
Case History
The following events have occurred since the Department announced
the Preliminary Determination on November 9, 2009. See Wire Decking
From the People's Republic of China: Preliminary Affirmative
Countervailing Duty Determination and Alignment of Final Countervailing
Duty Determination with Final Antidumping Duty Determination, 74 FR
57629 (November 9, 2009) (Preliminary Determination).
From November 17, 2009, through December 23, 2009, we issued
supplemental questionnaires to the Government of the PRC (the GOC), the
Eastfound Companies, and DHMP. From December 1, 2009, through January
5, 2010, the GOC, the Eastfound Companies, and DHMP submitted
supplemental questionnaire responses. On December 4 and 8, 2009, the
GOC and the Eastfound Companies submitted requests for a public
hearing. From January 8 through January 20, 2010, the Department issued
verification outlines to the GOC, the Eastfound Companies, and DHMP.
The Department conducted verification of the questionnaire responses
submitted by the GOC on January 27 and 29, 2010. The Department
conducted verification of the questionnaire responses submitted by the
Eastfound Companies from February 1 through February 4, 2010. The
Department conducted verification of the questionnaire responses
submitted by DHMP from January 25 through 27, 2010. From February 17
through February 24, 2010, the Department released verification reports
for the GOC, the Eastfound Companies, and DHMP. Interested parties
submitted the case and rebuttal briefs on March 9 and March 19,
respectively. On March 19, 2010, and April 6, 2010, the GOC and the
Eastfound Companies withdrew their requests for a public hearing,
respectively. No other interested party requested a hearing. As such,
the Department did not hold a public hearing in this investigation.
As explained in the memorandum from the Deputy Assistant Secretary
for Import Administration, the Department has exercised its discretion
to toll deadlines for the duration of the closure of the Federal
Government from February 5, through February 12, 2010. Thus, all
deadlines in this segment of the proceeding have been extended by seven
days. The revised deadline for this countervailing duty (CVD)
investigation is now June 3, 2010. See Memorandum to the Record from
Ronald K Lorentzen, Deputy Assistant Secretary for Import
Administration, regarding ``Tolling of Administrative Deadlines As a
Result of the Government Closure During the Recent Snowstorm,'' dated
February 12, 2010.
Scope of Investigation
The scope of the investigation covers welded-wire rack decking,
which is also known as, among other things, ``pallet rack decking,''
``wire rack decking,'' ``wire mesh decking,'' ``bulk storage
shelving,'' or ``welded-wire decking.'' Wire decking consists of wire
mesh that is reinforced with structural supports and designed to be
load bearing. The structural supports include sheet metal support
channels, or other structural supports, that reinforce the wire mesh
and that are welded or otherwise affixed to the wire mesh, regardless
of whether the wire mesh and supports are assembled or unassembled and
whether shipped as a kit or packaged separately. Wire decking is
produced from carbon or alloy steel wire that has been welded into a
mesh pattern. The wire may be galvanized or plated (e.g., chrome, zinc,
or nickel coated), coated (e.g., with paint, epoxy, or plastic), or
uncoated (``raw''). The wire may be drawn or rolled and may have a
round, square or other profile. Wire decking is sold in a variety of
wire gauges. The wire diameters used in the decking mesh are 0.105
inches or greater for round wire. For wire other than round wire, the
distance between any two points on a cross-section of the wire is 0.105
inches or greater. Wire decking reinforced with structural supports is
designed generally for industrial and other commercial storage rack
systems.
Wire decking is produced to various profiles, including, but not
limited to, a flat (``flush'') profile, an upward curved back edge
profile (``backstop'') or downward curved edge profile
(``waterfalls''), depending on the rack storage system. The wire
decking may or may not be anchored to the rack storage system. The
scope does not cover the metal rack storage system, comprised of metal
uprights and cross beams, on which the wire decking is ultimately
installed. Also excluded from the scope is wire mesh shelving that is
not reinforced with structural supports and is designed for use without
structural supports.
Wire decking enters the United States through several basket
categories in the Harmonized Tariff Schedule of the United States
(HTSUS). U.S. Customs and Border Protection (CBP) has issued a ruling
(NY F84777) that wire decking is to be classified under HTSUS
9403.90.8040. Wire decking has also been entered under the following
HTSUS subheadings:
[[Page 32903]]
7217.10.1000, 7217.10.2000, 7217.10.3000, 7217.10.4030, 7217.10.4090,
7217.10.5030, 7217.10.5090, 7217.10.6000, 7217.10.7000, 7217.10.8010,
7217.10.8020, 7217.10.8025, 7217.10.8030, 7217.10.8045, 7217.10.8060,
7217.10.8075, 7217.10.8090, 7217.10.9000, 7217.20.1500, 7217.20.3000,
7217.20.4510, 7217.20.4520, 7217.20.4530, 7217.20.4540, 7217.20.4550,
7217.20.4560, 7217.20.4570, 7217.20.4580, 7217.20.6000, 7217.20.7500,
7326.20.0010, 7326.20.0020, 7326.20.0070, 7326.90.1000, 7326.90.2500,
7326.90.3500, 7326.90.4500, 7326.90.6000, 7326.90.8505, 7326.90.8510,
7326.90.8530, 7326.90.8535, 7326.90.8545, 7326.90.8560, 7326.90.8575,
7326.90.8576, 7326.90.8577, 7326.90.8588, 9403.20.0020, and
9403.20.0030.\1\
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\1\ In the Preliminary Determination, we presented in the scope,
certain HTSUS categories that wire decking is also entered under, as
a six-digit category number (i.e., 7217.10, 7217.20, 7326.20, and
7326.90). Since the Preliminary Determination, we found that CBP
required a 10-digit format for these HTSUS categories. Thus, for the
final determination, we have determined that wire decking's scope
HTSUS categories will be presented in their full 10-digit format.
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While HTSUS subheadings are provided for convenience and Customs
purposes, the written description of the scope of the investigation is
dispositive.
Injury Test
Because the PRC is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Tariff Act of 1930, as amended (the
Act), the International Trade Commission (the ITC) is required to
determine whether imports of the subject merchandise from the PRC
materially injure, or threaten material injury to, a U.S. industry. On
July 31, 2009, the ITC published its preliminary determination in which
it found that there is a reasonable indication that an industry in the
United States is materially injured by reason of imports of wire
decking from the PRC. See Wire Decking From China, Investigation Nos.
701-TA-466 and 731-TA-1162 (Preliminary), 74 FR 38229 (July 31, 2009).
Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties to
this investigation are addressed in the Decision Memorandum. Attached
to this notice as an Appendix is a list of the issues that parties
raised and to which we have responded in the Decision Memorandum.
Parties can find a complete discussion of all issues raised in this
investigation and the corresponding recommendations in this public
memorandum, which is on file in the Department's Central Records Unit.
In addition, a complete version of the Decision Memorandum can be
accessed directly on the Internet at http://ia.ita.doc.gov/frn/. The
paper copy and electronic version of the Decision Memorandum are
identical in content.
Suspension of Liquidation
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have
calculated individual rates for the Eastfound Companies and DHMP. For
the non-cooperative companies, pursuant to sections 776(a)(2)(A) and
(C) of the Act, we have based their CVD rates on facts otherwise
available.
Section 705(c)(5)(A)(i) of the Act states that for companies not
investigated, we will determine an all-others rate equal to the
weighted average countervailable subsidy rates established for
exporters and producers individually investigated, excluding any zero
and de minimis countervailable subsidy rates, and any rates determined
entirely under section 776 of the Act.
Notwithstanding the language of section 705(c)(1)(B)(i)(I) of the
Act, we have not calculated the all-others rate by weight averaging the
rates of the Eastfound Companies and DHMP, because doing so risks
disclosure of proprietary information. Therefore, for the all-others
rate, we have calculated a simple average of the two responding firms'
rates.
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Net Subsidy Ad
Producer/Exporter Valorem Rate
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Dalian Eastfound Metal Products Co., Ltd. (Eastfound 3.55%
Metal) and its affiliate Dalian Eastfound Material
Handling Products Co., Ltd. (Eastfound Material)
(collectively, the Eastfound Companies)............
Dalian Huameilong Metal Products Co., Ltd. (DHMP)... 1.52%
Aceally (Xiamen) Technology Co., Ltd................ 437.11%
Alida Wire Mesh &Wire Cloth Mfg..................... 37.11%
Anping Ankai Hardware & Mesh Products Co., Ltd...... 437.11%
Anping County Jincheng Metal Products Co., Ltd...... 437.11%
Anping County Yuantong Hardware Net Industry Co., 437.11%
Ltd................................................
Anping Ruiqilong Wire Mesh Co., Ltd................. 437.11%
Anping Web Wire Mesh Co., Ltd....................... 437.11%
Anping Yilian Metal Products Co., Ltd............... 437.11%
Aplus Industrial (HK) Ltd........................... 437.11%
Beijing Jiuwei Storage Equipment Co., Ltd........... 437.11%
Dalian Aipute Industry & Trade Co., Ltd............. 437.11%
Dalian Best Metal Products Co., Ltd................. 437.11%
Dalian Jianda Metal Products Co., Ltd............... 437.11%
Dalian Litainer Logistic Equipment Co., Ltd......... 437.11%
Dalian Litainer Metal Products Co., Ltd............. 437.11%
Dalian Pro Metal Co., Ltd........................... 437.11%
Dalian Traction Motor Co., Ltd...................... 437.11%
Dalian Yutiein Storage Manufacture Co., Ltd......... 437.11%
Dalian Zengtian Metal-Net Production Co., Ltd....... 437.11%
Dandong Riqian Equipment Co., Ltd................... 437.11%
Deyoma Wire Decking Factory......................... 437.11%
Global Storage Equipment Manufacturer Ltd.(Huade 437.11%
Industries)........................................
Hebei Dongshengyuan Trading Co., Ltd................ 437.11%
Hebei Tengyue Trading Co., Ltd...................... 437.11%
High Hope Int'l Group Jiangsu Native Produce Imp 437.11%
&Exp Corp. Ltd.....................................
Imex China Ltd...................................... 437.11%
Jiangdong Xinguang Metal Product Co................. 437.11%5
Jiangsu Nova Logistics System Co., Ltd.............. 437.11%
Jiangsu Sainty Shengtong Imp & Exp Co............... 437.11%
JP Metal Works Processing Factory................... 437.11%
Kule (Dalian) Co., Ltd.............................. 437.11%
Kunshan Maxshow Industry Trade Co., Ltd............. 437.11%
Lanxuan Metal Product Co., Ltd...................... 437.11%
Longkou Forever Developed Metal Product Co., Ltd.... 437.11%
Nanjing Better Metallic Products Co., Ltd........... 437.11%
Nanjing Better Storage Equipment Manufacturing Co., 437.11%
Ltd................................................
Nanjing Dongtuo Logistics Equipment Co., Ltd........ 437.11%
Nanjing Ebil Metal Products Co., Ltd................ 437.11%
[[Page 32904]]
Nanjing Huade Storage Equipment Manufacture Co., 437.11%
Ltd................................................
Nanjing Jiangrui International Logistics Co......... 437.11%
Nanjing Jiangrui Metal Products Co., Ltd............ 437.11%
Nanjing Jiangrui Racking Manufacture Co., Ltd....... 437.11%
Nanjing Youerda Logistic Equipment Engineering Co. 437.11%
Ltd................................................
Nanjing Youerda Metallic Products Co., Ltd.......... 437.11%
National Sourcing Co., Ltd.......................... 437.11%
Ningbo Beilun Songyi Storage Equipment Manufacturer 437.11%
Co., Ltd...........................................
Ningbo Huixing Metal Product, Co., Ltd.............. 437.11%
Ningbo Telingtong Metal Products Co., Ltd........... 437.11%
Ningbo United Group Imp & Exp Co. Ltd............... 437.11%
Pinghu Dong Zhi Metal Products...................... 437.11%
Schenker International China Ltd. (Dalian Branch)... 437.11%
Shanghai Boracs Logistics Equipment Manufacturing 437.11%
Co., Ltd...........................................
Shanghai Bright Imp & Exp Co., Ltd.................. 437.11%
Shanghai Flory Industries Co., Ltd.................. 437.11%
Shanghai Hesheng Hardware Products Co............... 437.11%
Shanghai Jingxing Storage Equipment Engineering Co., 437.11%
Ltd. (formerly Shanghai Jinxing Rack Factory)......
Shanghai Yibai Int'l Trading Co..................... 437.11%
Summit Storage Systems Ltd.......................... 437.11%
Suzhou (China) Sunshine Hardware Equipment Imp &Exp 437.11%
Co., Ltd...........................................
Suzhou Jinta Metal Working Co., Ltd................. 437.11%
Suzhou Z-TAK Metal and Technology Co., Ltd.......... 437.11%
Tianjin Dingxing Furniture Company.................. 437.11%
Tianjin Machinery Imp & Exp Corp.................... 437.11%
Tianjin Mandarin Import & Export Co., Ltd........... 437.11%
Tianjin Zhonglian Metals Ware Co., Ltd.............. 437.11%
TMC Logistic Products............................... 437.11%
Vida Logistics System Co., Ltd...................... 437.11%
Wuxi Puhui Metal Products Co., Ltd.................. 437.11%
Wuyi Tianchi Mechanical & Electrical Manufacture 437.11%
Co., Ltd...........................................
Xiamen E-Soon Machinery Co., Ltd.................... 437.11%
Xiamen GaoPing Co., Ltd............................. 437.11%
Xiamen Luckyroc Industry Co., Ltd................... 437.11%
Xiangshan Ningbo General Steel Metal Structure Co., 437.11%
Ltd................................................
Yuyao Sanlian Goods Shelves Manufacture Co., Ltd.... 437.11%
All Others.......................................... 2.54%
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As a result of our Preliminary Determination and pursuant to
section 703(d) of the Act, we instructed CBP to suspend liquidation of
all entries of subject merchandise from the PRC which were entered or
withdrawn from warehouse, for consumption on or after November 9, 2009,
the date of the publication of the Preliminary Determination in the
Federal Register. In accordance with section 703(d) of the Act, we
subsequently issued instructions to CBP to discontinue the suspension
of liquidation for CVD purposes for subject merchandise entered, or
withdrawn from warehouse, on or after March 9, 2010, but to continue
the suspension of liquidation of all entries from November 9, 2009,
through March 8, 2010.
We will issue a CVD order and reinstate the suspension of
liquidation under section 706(a) of the Act if the ITC issues a final
affirmative injury determination, and 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: June 3, 2010.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
APPENDIX
List of Comments and Issues in the Decision Memorandum
Comment 1:Whether the Department May Apply the CVD Law to an NME
Country
Comment 2:Whether Producer A Constitutes a GOC Authority Capable of
Providing a Financial Contribution As Defined by the Act
Comment 3: Whether Producer B Constitutes a GOC Authority Capable
of Providing a Financial Contribution As Defined by the Act
Comment 4:Whether Producer C Constitutes a GOC Authority Capable of
Providing a Financial Contribution As Defined by the Act
Comment 5:Whether DHMP's Zinc Supplier(s) Is a GOC Authority
Comment 6:Whether Actual Wire Rod and HRS Market Prices in the
PRCAre Appropriate Benchmarks
Comment 7:Whether Benchmark Prices Should Include Freight
Comment 8:Whether Benchmark Prices Should Include Insurance Costs
Comment 9:Whether the GOC and DHMP Withheld Information Concerning
the Location of DHMP's Facilities and Whether Information They
Submitted is Reliable
Comment 10:Whether DHMP Is Located In an Industrial Zone Thereby
Making Its Purchase of Land from the GOC Regionally Specific Under the
Act
Comment 11:Whether DHMP Benefitted from an Interest-Free Deferral
of its Land-Use Rights Payment
[[Page 32905]]
Comment 12:Whether the Eastfound Material's Land Acquisitions Are
Countervailable
Comment 13:Whether the Department Should Countervail Eastfound
Material's Alleged Unreported Land Payment Refund Discovered at
Verification
Comment 14:Whether the Department Should Countervail Eastfound
Metal's Land-Use
Comment 15:Whether the Department Should Use Year 2001 as the Cut-
off Date or Use the AUL Methodology to Value Subsidies
Comment 16:Whether the GOC Terminated the Income Tax Exemption for
Investors In Designated Geographical Regions Within Liaoning Program
Comment 17:Whether the GOC Terminated the Income Tax Benefits for
FIEs Based on Geographic Location
Comment 18:Whether the GOC Terminated the VAT Exemptions for FIEs
and Certain Domestic Enterprises Using Imported Equipment Program
Comment 19:Whether the GOC Terminated the Import Tariff and VAT
Exemptions for FIEs and Certain Domestic Enterprises Using Imported
Equipment in Encouraged Industries Program
Comment 20:Whether the Department Should Initiate an Investigation
of the PRC's Currency Manipulation
Comment 21:Benefit Calculation Under the Two Free, Three Half
Income Tax Program
Comment 22:Whether DHMP received a Subsidy Under the Income Tax
Credits for FIES on Purchases of Domestically Produced Equipment
Program
Comment 23:Whether DHMP Failed To Report VAT Deductions on Fixed
Assets
[FR Doc. 2010-13971 Filed 6-9-10; 8:45 am]
BILLING CODE 3510-DS-S