[Federal Register Volume 85, Number 240 (Monday, December 14, 2020)]
[Notices]
[Pages 80771-80774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27423]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-134]


Certain Metal Lockers and Parts Thereof From the People's 
Republic of China: Preliminary Affirmative Countervailing Duty 
Determination and Alignment of Final Determination With Final 
Antidumping Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of certain metal lockers and parts thereof (metal lockers) 
from the People's Republic of China (China). The period of 
investigation is January 01, 2019 through December 31, 2019. Interested 
parties are invited to comment on this preliminary determination.

DATES: Applicable December 14, 2020.

FOR FURTHER INFORMATION CONTACT: Charles Doss or Alex Cipolla, AD/CVD 
Operations, Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-4474 or (202) 482-4956, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On July 9, 2020, Commerce received antidumping duty (AD) and 
countervailing duty (CVD) petitions \1\ concerning imports of metal 
lockers from China, filed in proper form on behalf of List Industries, 
Inc., Lyon LLC, Penco Products, Inc, and Tennsco LLC (collectively, the 
petitioners).\2\ On August 5, 2020, Commerce published the notice of 
initiation of this CVD investigation of metal lockers from China.\3\ On 
September 21, 2020, Commerce postponed the preliminary determination of 
this investigation to December 7, 2020.\4\ For a complete description 
of the events that followed the initiation of this investigation, see 
the Preliminary Decision Memorandum.\5\ This preliminary determination 
is made in accordance with section 703(b) of the Tariff Act of 1930, as 
amended (the Act). A list of topics discussed 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 http://access.trade.gov. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/. The signed 
and electronic versions of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See Petitioners' Letter, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties Against Imports of Certain 
Metal Lockers and Parts Thereof from the People's Republic of 
China,'' dated July 9, 2020 (Petition).
    \2\ On October 15, 2020, the petitioners notified Commerce that 
Lyon LLC was withdrawing as a petitioner in this investigation. On 
November 6, 2020, DeBourgh Manufacturing Co. was listed with List 
Industries, Inc., Penco Products, Inc., and Tennsco LLC as the 
petitioners in this investigation.
    \3\ See Certain Metal Lockers and Parts Thereof from the 
People's Republic of China: Initiation of Countervailing Duty 
Investigation, 85 FR 47353 (August 5, 2020) (Initiation Notice), and 
accompanying Initiation Checklist.
    \4\ See Certain Metal Lockers and Parts Thereof from the 
People's Republic of China: Postponement of Preliminary 
Determination of Countervailing Duty Investigation, 85 FR 59287 
(September 21, 2020).
    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Certain 
Metal Lockers and Parts Thereof from the People's Republic of 
China,'' 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 metal lockers from 
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,\6\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e. , scope).\7\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. Commerce intends to issue its preliminary 
decision regarding comments concerning the scope of the AD and CVD 
investigations in the preliminary determination of the

[[Page 80772]]

companion AD investigation, whose deadline is February 4, 2021.
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    \6\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \7\ See Initiation Notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e. , a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\8\
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    \8\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\9\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \9\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final CVD determination in this investigation with the 
final determination in the companion AD investigation of metal lockers 
from China based on a request made by the petitioners.\10\ 
Consequently, the final CVD determination will be issued on the same 
date as the final AD determination, which is currently scheduled to be 
issued no later than April 20, 2021, unless postponed.
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    \10\ See Petitioners' Letter, ``Certain Metal Lockers and Parts 
Thereof from the People's Republic of China Petitioners' Request to 
Align Final Determinations,'' dated November 30, 2020.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    Commerce calculated an individual estimated countervailable subsidy 
rate for Zhejiang Xingyi Metal Products Co., Ltd. (Zhejiang Xingyi), 
the only individually examined exporter/producer in this investigation. 
Because the only individually calculated rate is not zero, de minimis , 
or based entirely on facts otherwise available, the estimated weighted-
average rate calculated for Zhejiang Xingyi is the rate assigned to all 
other producers and exporters, pursuant to section 705(c)(5)(A)(i) of 
the Act.

Rate for Non-Responsive Companies

    Eight potential producers and/or exporters of metal lockers from 
China did not respond to Commerce's Quantity and Value (Q&V) 
Questionnaire. We find that, by not responding to the Q&V Questionnaire 
within the deadline established by Commerce, these companies withheld 
requested information and significantly impeded this proceeding.\11\ 
Thus, in reaching our preliminary determination, pursuant to sections 
776(a)(2)(A) and (C) of the Act, we are basing the CVD rate for these 
eight companies on facts otherwise available.
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    \11\ These eight companies are Changshu Taron Machinery 
Equipment Manufacturing Co., Ltd.; Guangdong Yuhua Building 
Materials Co., Ltd.; Jiangsu Tongrun Tool Cabinet Co., Ltd.; Luoyang 
Mas Younger Office Furniture Co. / Louyang Mas Younger Export and 
Import Co.; Luoyang Shidiu Import and Export Co., Ltd.; Suzhou 
Yuanda Commercial Products Co. Ltd.; Winnsen Industry Co., Ltd.; and 
Xiamen Headleader Technology.
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    We further preliminarily determine that an adverse inference is 
warranted, pursuant to section 776(b) of the Act. By failing to submit 
responses to Commerce's Q&V Questionnaire, the eight companies did not 
cooperate to the best of their ability in this investigation.
    Accordingly, we preliminarily find that an adverse inference is 
warranted to ensure that the eight companies will not obtain a more 
favorable result than if they had fully complied with our request for 
information. For more information on the application of adverse facts 
available to the non-responsive companies, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Determination 
Memorandum.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Zhejiang Xingyi Metal Products Co., Ltd.................           36.83
All Others..............................................           36.83
Changshu Taron Machinery Equipment Manufacturing Co.,             144.01
 Ltd....................................................
Guangdong Yuhua Building Materials Co., Ltd.............          144.01
Jiangsu Tongrun Tool Cabinet Co., Ltd...................          144.01
Luoyang Mas Younger Office Furniture Co. / Louyang Mas            144.01
 Younger Export and Import Co...........................
Luoyang Shidiu Import and Export Co., Ltd...............          144.01
Suzhou Yuanda Commercial Products Co. Ltd...............          144.01
Winnsen Industry Co., Ltd...............................          144.01
Xiamen Headleader Technology............................          144.01
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries 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. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    Commerce is currently unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. Accordingly, we intend to take additional steps in lieu 
of on-site verification. Commerce will notify interested parties of any 
additional documentation or information required.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Commerce will 
notify interested parties of the deadline for the submission of case 
briefs. Rebuttal briefs, limited to issues raised in case briefs, may 
be submitted no later than seven days after the deadline date for

[[Page 80773]]

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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    \12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements); Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020); and 
Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-
19; Extension of Effective Period, 85 FR 41363 (July 10, 2020) 
(Temporary Rule).
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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, 
Commerce intends to hold the hearing at a date and time to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.
    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date. Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\13\
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    \13\ See Temporary Rule.
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. 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.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: December 7, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers certain metal lockers, 
with or without doors, and parts thereof (certain metal lockers). 
The subject certain metal lockers are metal storage devices less 
than 27 inches wide and less than 27 inches deep, whether floor 
standing, installed onto a base or wall-mounted. In a multiple 
locker assembly (whether a welded locker unit, otherwise assembled 
locker unit or knocked down unit or kit), the width measurement 
shall be based on the width of an individual locker not the overall 
unit dimensions. All measurements in this scope are based on actual 
measurements. The subject certain metal lockers typically include 
the bodies (back, side, shelf, top and bottom panels), door frames 
with or without doors which can be integrated into the sides or made 
separately, and doors. The subject metal lockers typically are made 
of flat-rolled metal, metal mesh and/or expanded metal, which 
includes but is not limited to alloy or non-alloy steel (whether or 
not galvanized or otherwise metallically coated for corrosion 
resistance), stainless steel, or aluminum, but the doors may also 
include transparent polycarbonate, Plexiglas or similar transparent 
material or any combination thereof. Metal mesh refers to both wire 
mesh and expanded metal mesh. Wire mesh is a wire product in which 
the horizontal and transverse wires are welded at the cross-section 
in a grid pattern. Expanded metal mesh is made by slitting and 
stretching metal sheets to make a screen of diamond or other shaped 
openings. The doors are configured with or for a handle or other 
device that permit the use of a mechanical or electronic lock or 
locking mechanism, including, but not limited to: A combination 
lock, a padlock, a key lock, lever or knob lock, and a wireless 
lock. The subject locker may also enter with the lock or locking 
device included or installed. The doors or body panels may also 
include vents (including wire mesh or expanded metal mesh vents) or 
perforations. The bodies, body components and doors are typically 
powder coated, otherwise painted or epoxy coated or may be 
unpainted. The subject merchandise includes metal lockers imported 
either as welded or otherwise assembled units (ready for 
installation or use) or as knocked down units or kits (requiring 
assembly prior to installation or use).
    The subject lockers may be shipped as individual or multiple 
locker units preassembled, welded, or combined into banks or tiers 
for ease of installation or as sets of component parts, bulk packed 
(i.e. , all backs in one package, crate, rack, carton or container 
and sides in another package, crate, rack, carton or container) or 
any combination thereof. The knocked down lockers are shipped 
unassembled requiring a supplier, contractor or end-user to assemble 
the individual lockers and locker banks prior to installation.
    The scope also includes all parts and components of lockers made 
from flat-rolled metal or expanded metal (e.g. , doors, frames, 
shelves, tops, bottoms, backs, side panels, etc.) as well as 
accessories that are attached to the lockers when installed 
(including, but not limited to, slope tops, bases, expansion filler 
panels, dividers, recess trim, decorative end panels, and end caps) 
that may be imported together with lockers or other locker 
components or on their own. The particular accessories listed for 
illustrative purposes are defined as follows:
    a. Slope tops: Slope tops are slanted metal panels or units that 
fit on the tops of the lockers and that slope from back to front to 
prevent the accumulation of dust and debris on top of the locker and 
to discourage the use of the tops of lockers as storage areas. Slope 
tops come in various configurations including, but not limited to, 
unit slope tops (in place of flat tops), slope hoods made of a back, 
top and end pieces which fit over multiple units and convert flat 
tops to a sloping tops, and slope top kits that convert flat tops to 
sloping tops and include tops, backs and ends.
    b. Bases: Locker bases are panels made from flat-rolled metal 
that either conceal the legs of the locker unit, or for lockers 
without legs, provide a toe space in the front of the locker and 
conceal the flanges for floor anchoring.
    c. Expansion filler panel: Expansion filler panels or fillers 
are metal panels that attach to locker units to cover columns, pipes 
or other obstacles in a row of lockers or fill in gaps between the 
locker and the wall. Fillers may also include metal panels that are 
used on the sides or the top of the lockers to fill gaps.
    d. Dividers: Dividers are metal panels that divide the space 
within a locker unit into different storage areas.
    e. Recess trim: Recess trim is a narrow metal trim that bridges 
the gap between lockers and walls or soffits when lockers are 
recessed into a wall.
    f. Decorative end panels: End panels fit onto the exposed ends 
of locker units to cover holes, bolts, nuts, screws and other 
fasteners. They typically are painted to match the lockers.
    g. End caps: End caps fit onto the exposed ends of locker units 
to cover holes, bolts, nuts, screws and other fasteners.
    The scope also includes all hardware for assembly and 
installation of the lockers and locker banks that are imported with 
or shipped, invoiced or sold with the imported locker or locker 
system.
    Excluded from the scope are wire mesh lockers. Wire mesh lockers 
are those with each of the following characteristics:
    (1) At least three sides, including the door, made from wire 
mesh;
    (2) the width and depth each exceed 25 inches; and
    (3) the height exceeds 90 inches.
    Also excluded are lockers with bodies made entirely of plastic, 
wood or any nonmetallic material.
    Also excluded are exchange lockers with multiple individual 
locking doors mounted on one master locking door to access multiple 
units. Excluded exchange lockers

[[Page 80774]]

have multiple individual storage spaces, typically arranged in 
tiers, with access doors for each of the multiple individual storage 
space mounted on a single frame that can be swung open to allow 
access to all of the individual storage spaces at once. For example, 
uniform or garment exchange lockers are designed for the distinct 
function of securely and hygienically exchanging clean and soiled 
uniforms. Thus, excluded exchange lockers are a multi-access point 
locker whereas covered lockers are a single access point locker for 
personal storage.
    Also excluded are metal lockers that are imported with an 
installed electronic, internet-enabled locking device that permits 
communication or connection between the locker's locking device and 
other internet connected devices.
    Also excluded are hardware and accessories for assembly and 
installation of the lockers, locker banks and storage systems that 
are separately imported in bulk and are not incorporated into a 
locker, locker system or knocked down kit at the time of 
importation. Such excluded hardware and accessories include but are 
not limited to bulk imported rivets, nuts, bolts, hinges, door 
handles, locks, door/frame latching components, and coat hooks. 
Accessories of sheet metal, including but not limited to end panels, 
bases, dividers and sloping tops, are not excluded accessories.
    The subject certain metal lockers are classified under 
Harmonized Tariff Schedule of the United States (HTSUS) subheading 
9403.20.0078. Parts of subject certain metal lockers are classified 
under HTS subheading 9403.90.8041. While HTSUS subheadings are 
provided for convenience and Customs purposes, the written 
description of the scope of the investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Diversification of China's Economy
VI. Subsidies Valuation
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Calculation of the All-Others Rate
XI. Recommendation

 [FR Doc. 2020-27423 Filed 12-11-20; 8:45 am]
 BILLING CODE 3510-DS-P