[Federal Register Volume 86, Number 41 (Thursday, March 4, 2021)]
[Notices]
[Pages 12611-12614]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04481]


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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: Amended Preliminary Affirmative Countervailing Duty 
Determination

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

SUMMARY: On December 14, 2020, the Department of Commerce (Commerce) 
published in the Federal Register the preliminary determination of the 
countervailing duty (CVD) investigation of certain metal lockers and 
parts thereof (metal lockers) from the People's Republic of China 
(China). Commerce is amending the scope of the preliminary 
determination.

DATES: Applicable March 4, 2021.

[[Page 12612]]


FOR FURTHER INFORMATION CONTACT: 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) 482-4956.

SUPPLEMENTARY INFORMATION:

Background

    On December 14, 2020, Commerce published in the Federal Register 
the preliminary determination in the CVD investigation of metal lockers 
from China.\1\ On February 2, 2021, Commerce placed on the record of 
this investigation a preliminary decision memorandum addressing all 
comments received in this proceeding and the companion antidumping 
proceeding regarding the scope of the investigations.\2\ In accordance 
with the comments discussed in the memorandum, we made certain changes 
to the scope of these investigations. The changes include certain 
exclusions and clarifications of the scope language. The revised scope 
is printed in its entirety below.
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    \1\ See 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, 85 FR 80771 (December 14, 2020) 
(Preliminary CVD Determination).
    \2\ See Memorandum, ``Antidumping Duty and Countervailing Duty 
Investigations of Certain Metal Lockers and Parts Thereof from the 
People's Republic of China: Preliminary Scope Decision Memorandum,'' 
dated February 2, 2021 (Prelim Scope Memo).
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Scope of the Investigation

    The scope of this investigation covers certain metal lockers, with 
or without doors, and parts thereof (metal lockers). The subject metal 
lockers are secure 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 taken on the outside dimensions of the 
single-locker unit. The height is the vertical measurement from the 
bottom to the top of the unit. The width is the horizontal (side to 
side) measurement of the front of the unit, and the front of the unit 
is the face with the door or doors or the opening for internal access 
of the unit if configured without a door. The depth is the measurement 
from the front to the back of the unit. 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.
    Where the product has doors, the doors are typically configured 
with or for a handle or other device or other means 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 (including 
cylinder locks) lever or knob lock, electronic key pad, or other 
electronic or wireless lock. The handle and locking mechanism, if 
included, need not be integrated into one another. The subject locker 
may or may not 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 except the 
lock.
    Excluded from the scope are wire mesh lockers. Wire mesh lockers 
are

[[Page 12613]]

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 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. The excluded exchange lockers include assembled 
exchange lockers and those that enter in `knock down' form in which all 
of the parts and components to assemble a completed exchange locker 
unit are packaged together. Parts for exchange lockers that are 
imported separately from the exchange lockers in `knock down' form are 
not excluded.
    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 locks and 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 locks 
and bulk imported rivets, nuts, bolts, hinges, door handles, 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.
    Mobile tool chest attachments that meet the physical description 
above are covered by the scope of this investigation, unless such 
attachments are covered by the scope of the orders on certain tool 
chests and cabinets from China. If the orders on certain tool chests 
and cabinets from China are revoked, the mobile tool chest attachments 
from China will be covered by the scope of this investigation.
    The scope also excludes metal safes with each of the following 
characteristics: (1) Pry resistant, concealed hinges; (2) body walls 
and doors of steel that are at least 17 gauge (0.05625 inch or 1.42874 
mm thick); and (3) an integrated locking mechanism that includes at 
least two round steel bolts 0.75 inch (19 mm) or larger in diameter; or 
three bolts 0.70 inch (17.78 mm) or more in diameter; or four or more 
bolts at least 0.60 inch (15.24 mm) or more in diameter, that project 
from the door into the body or frame of the safe when in the locked 
position.
    The scope also excludes gun safes meeting each of the following 
requirements:
    (1) Shall be able to fully contain firearms and provide for their 
secure storage.
    (2) Shall have a locking system consisting of at minimum a 
mechanical or electronic combination lock. The mechanical or electronic 
combination lock utilized by the safe shall have at least 10,000 
possible combinations consisting of a minimum three numbers, letters, 
or symbols. The lock shall be protected by a casehardened (Rc 60+) 
drill-resistant steel plate, or drill-resistant material of equivalent 
strength.
    (3) Boltwork shall consist of a minimum of three steel locking 
bolts of at least \1/2\ inch thickness that intrude from the door of 
the safe into the body of the safe or from the body of the safe into 
the door of the safe, which are operated by a separate handle and 
secured by the lock.
    (4) The exterior walls shall be constructed of a minimum 12-gauge 
thick steel for a single-walled safe, or the sum of the steel walls 
shall add up to at least 0.100 inches for safes with walls made from 
two pieces of flat-rolled steel.
    (5) Doors shall be constructed of a minimum one layer of 7-gauge 
steel plate reinforced construction or at least two layers of a minimum 
12-gauge steel compound construction.
    (6) Door hinges shall be protected to prevent the removal of the 
door. Protective features include, but are not limited to: Hinges not 
exposed to the outside, interlocking door designs, dead bars, jeweler's 
lugs and active or inactive locking bolts.
    The scope also excludes metal storage devices that (1) have two or 
more exterior exposed drawers regardless of the height of the unit, or 
(2) are no more than 30 inches tall and have at least one exterior 
exposed drawer.
    Also excluded from the scope are free standing metal cabinets less 
than 30 inches tall with a single opening, single door and an installed 
tabletop.
    The scope also excludes metal storage devices less than 27 inches 
wide and deep that (1) have two doors hinged on the right and left side 
of the door frame respectively covering a single opening and that open 
from the middle toward the outer frame; or (2) are free standing or 
wall-mounted, single-opening units 20 inches or less high with a single 
door.
    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. In addition, subject certain metal lockers may 
also enter under HTS subheading 9403.20.0050. While HTSUS subheadings 
are provided for convenience and Customs purposes, the written 
description of the scope of this investigation is dispositive.

Suspension of Liquidation

    Pursuant to the Preliminary CVD Determination, Commerce previously 
suspended liquidation of metal lockers from China entered, or withdrawn 
from warehouse, for consumption on or after December 14, 2020 (the 
publication of the Preliminary CVD Determination in the Federal 
Register). Commerce will instruct U.S. Customs and Border Protection 
(CBP) to continue to suspend liquidation of subject merchandise as 
defined by the revised scope language included above, entered, or 
withdrawn from warehouse, for consumption on or after the publication 
of this notice in the Federal Register, and to continue to require a 
cash deposit, pursuant to 19 CFR 351.205(d).

Liquidation of Suspended Entries

    As a result of Commerce's amended preliminary determination, 
certain products are now excluded from the scope of the investigation. 
For suspended entries of excluded products, that were entered, or 
withdrawn from warehouse, for consumption on or after December 14, 2020 
(the date on which suspension of liquidation first began), we will 
instruct CBP to discontinue the suspension of liquidation and liquidate 
such entries without regard to countervailing duties (i.e., refund all 
cash deposits).

Public Comment

    Commerce has set a separate deadline for scope comments for both 
the

[[Page 12614]]

antidumping and CVD proceedings.\3\ The current deadline for case 
briefs regarding scope issues is March 15, 2021,\4\ and the current 
deadline for rebuttal briefs regarding scope issues is March 22, 2021. 
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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    \3\ See Prelim Scope Memo at 6.
    \4\ The actual deadline falls on March 13, 2021, which is a 
Saturday. Commerce's practice dictates that where a deadline falls 
on a weekend or Federal holiday, the appropriate deadline is the 
next business day. See Notice of Clarification: Application of 
``Next Business Day'' Rule for Administrative Determination 
Deadlines Pursuant to the Tariff Act of 1930, as Amended, 70 FR 
24533 (May 10, 2005).
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International Trade Commission Notification

    In accordance with section 703(f) of the Tariff Act of 1930, as 
amended (the Act), Commerce will notify the International Trade 
Commission (ITC) of its amended preliminary determination. If 
Commerce's final determination is affirmative, the ITC will make its 
final determination before the later of 120 days after the date of this 
preliminary determination or 45 days after Commerce's final 
determination.

Notification to Interested Parties

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

    Dated: February 26, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2021-04481 Filed 3-3-21; 8:45 am]
BILLING CODE 3510-DS-P