[Federal Register Volume 88, Number 182 (Thursday, September 21, 2023)]
[Notices]
[Pages 65153-65155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-20483]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-201-857]


Certain Freight Rail Couplers and Parts Thereof From Mexico: 
Final Affirmative Determination of Sales at Less Than Fair Value and 
Final Negative Determination of Critical Circumstances

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
certain freight rail couplers and parts thereof (freight rail couplers) 
from Mexico are being, or are likely to be, sold in the United States 
at less than fair value (LTFV). The period of investigation (POI) is 
July 1, 2021, through June 30, 2022.

DATES: Applicable September 21, 2023.

FOR FURTHER INFORMATION CONTACT: Jonathan Hall-Eastman, 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) 482-1468.

[[Page 65154]]


SUPPLEMENTARY INFORMATION:

Background

    On May 3, 2023, Commerce published in the Federal Register its 
Preliminary Determination of the LTFV investigation of freight rail 
couplers from Mexico, in which it also postponed the final 
determination until September 15, 2023.\1\ Commerce invited interested 
parties to comment on the Preliminary Determination.\2\
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    \1\ See Certain Freight Rail Couplers and Parts Thereof from 
Mexico: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value Preliminary Negative Determination of Critical 
Circumstances, Postponement of Final Determination, and Extension of 
Provisional Measures, 88 FR 27864 (May 3, 2023) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum 
(PDM).
    \2\ Id.
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    For a complete description of the events that followed the 
Preliminary Determination, see the Issues and Decision Memorandum.\3\ 
The Issues and Decision Memorandum is a public document and is 
available 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 Issues and Decision Memorandum can 
be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less Than Fair Value 
Investigation of Certain Freight Rail couplers from Mexico,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are freight rail 
couplers from Mexico. For a full description of the scope of this 
investigation, see appendix I.

Scope Comments

    During the course of this investigation and the concurrent LTFV and 
countervailing duty investigations of freight rail couplers from the 
People's Republic of China, Commerce received scope comments from 
interested parties. Commerce issued a Preliminary Scope Memorandum to 
address these comments and set aside a period of time for parties to 
address scope issues in scope-specific case and rebuttal briefs.\4\ We 
received comments from interested parties on the Preliminary Scope 
Memorandum, which we address in the Final Scope Memorandum.\5\ We did 
not make any changes to the scope of the investigation from the scope 
published in the Preliminary Determination, as noted in appendix I.
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    \4\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated March 28, 2023.
    \5\ See Memorandum, ``Final Scope Decision Memorandum,'' dated 
May 15, 2023.
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Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), in June and July 2023, we conducted verification of the 
sales and cost information submitted by ASF-K de Mexico S. de R.L. de 
C.V. (ASF-K) and Amsted Rail Company, Inc. (Amsted Rail) for use in our 
final determination. We used standard verification procedures, 
including an examination of relevant sales and accounting records, and 
original source documents provided by ASF-K and Amsted Rail.\6\
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    \6\ See Memoranda, ``Verification of the Sales Responses of ASF-
K de Mexico S. de R.L. de C.V. in the Antidumping Duty Investigation 
of Certain Freight Rail Couplers and Parts Thereof from Mexico,'' 
dated July 12, 2023; and ``Verification of the Cost Response of 
Amsted Rail Company, Inc. & ASF-K de Mexico S. de R.L. de C.V. in 
the Antidumping Duty Investigation of Certain Freight Rail Couplers 
from Mexico,'' dated August 5, 2023.
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties in 
this investigation are discussed in the Issues and Decision Memorandum. 
A list of the issues raised in the Issues and Decision Memorandum is 
attached to this notice as appendix II.

Changes Since the Preliminary Determination

    We have made certain changes to the margin calculations for ASF-K 
since the Preliminary Determination. See the Issues and Decision 
Memorandum for a discussion of these changes.

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated 
weighted-average dumping margin for all other producers and exporters 
not individually investigated shall be equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated excluding rates that 
are zero, de minimis, or determined entirely under section 776 of the 
Act.
    In this case, Commerce calculated an individual estimated weighted-
average dumping margin for ASF-K that is not zero, de minimis, or 
determined entirely under section 776 of the Act. Consequently, the 
rate calculated for ASF-K is also assigned as the rate for all other 
producers and exporters.

Final Negative Determination of Critical Circumstances

    In accordance with section 735(a)(3) of the Act and 19 CFR 
351.206(h), Commerce finds that critical circumstances do not exist for 
ASF-K. For a full description of the methodology and results of 
Commerce's critical circumstances analysis, see the ``Final Negative 
Determination of Critical Circumstances'' section of the Issues and 
Decision Memorandum.

Final Determination

    Commerce determines that the following estimated weighted-average 
dumping margins exist for the POI:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                    Producer/exporter                         average
                                                          dumping margin
                                                             (percent)
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ASF-K de Mexico S. de R.L. de C.V.......................           48.10
All Others..............................................           48.10
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Disclosure

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

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of freight rail couplers from 
Mexico, as described in appendix I to this notice, which were entered, 
or withdrawn from warehouse for consumption on or after May 3, 2023, 
the date of publication of Preliminary Determination of this 
investigation in the Federal Register.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), upon publication of this notice, Commerce will instruct CBP 
to require a cash deposit equal to the estimated weighted-average 
dumping margin or the estimated all-others rate, as follows: (1) the 
cash deposit rate for the respondent listed above will be equal to the 
company-specific estimated weighted-average dumping margin determined 
in this final determination; (2) if the exporter is not a respondent 
identified above but the producer is, then the cash deposit rate will 
be equal to the company-specific estimated weighted-

[[Page 65155]]

average dumping margin established for that producer of the subject 
merchandise; and (3) the cash deposit rate for all other producers and 
exporters will be equal to the all-others estimated weighted-average 
dumping margin. These suspension of liquidation instructions will 
remain in effect until further notice.

U.S. International Trade Commission Notification

    In accordance with section 735(d) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will make its final determination as to whether the domestic 
industry in the United States is materially injured, or threatened with 
material injury, by reason of imports or sales (or the likelihood of 
sales) for importation of freight rail couplers from Mexico no later 
than 45 days after this final determination. If the ITC determines that 
such injury does not exist, this proceeding will be terminated, and all 
cash deposits posted will be refunded and suspension of liquidation 
will be lifted. If the ITC determines that such injury does exist, 
Commerce will issue an antidumping duty order directing CBP to assess, 
upon further instruction by Commerce, antidumping duties on all imports 
of the subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation, as discussed above in the ``Continuation of Suspension of 
Liquidation'' section.

Administrative Protective Order

    This notice will serve as a final reminder to the parties subject 
to an administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely written 
notification of return or destruction of APO materials or conversion to 
judicial protective order is hereby requested. Failure to comply with 
the regulations and the terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).

    Dated: September 15, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers certain freight railcar 
couplers (also known as ``fits'' or ``assemblies'') and parts 
thereof. Freight railcar couplers are composed of two main parts, 
namely knuckles and coupler bodies but may also include other items 
(e.g., coupler locks, lock lift assemblies, knuckle pins, knuckle 
throwers, and rotors). The parts of couplers that are covered by the 
investigation include: (1) E coupler bodies, (2) E/F coupler bodies, 
(3) F coupler bodies, (4) E knuckles, and (5) F knuckles, as set 
forth by the Association of American Railroads (AAR). The freight 
rail coupler parts (i.e., knuckles and coupler bodies) are included 
within the scope of the investigation when imported separately. 
Coupler locks, lock lift assemblies, knuckle pins, knuckle throwers, 
and rotors are covered merchandise when imported in an assembly but 
are not covered by the scope when imported separately.
    Subject freight railcar couplers and parts are included within 
the scope whether finished or unfinished, whether imported 
individually or with other subject or nonsubject parts, whether 
assembled or unassembled, whether mounted or unmounted, or if joined 
with nonsubject merchandise, such as other nonsubject parts or a 
completed railcar. Finishing includes, but is not limited to, arc 
washing, welding, grinding, shot blasting, heat treatment, 
machining, and assembly of various parts. When a subject coupler or 
subject parts are mounted on or to other nonsubject merchandise, 
such as a railcar, only the coupler or subject parts are covered by 
the scope.
    The finished products covered by the scope of this investigation 
meet or exceed the AAR specifications of M-211, ``Foundry and 
Product Approval Requirements for the Manufacture of Couplers, 
Coupler Yokes, Knuckles, Follower Blocks, and Coupler Parts'' and/or 
AAR M-215 ``Coupling Systems,'' or other equivalent domestic or 
international standards (including any revisions to the 
standard(s)).
    The country of origin for subject couplers and parts thereof, 
whether fully assembled, unfinished or finished, or attached to a 
railcar, is the country where the subject coupler parts were cast or 
forged. Subject merchandise includes coupler parts as defined above 
that have been further processed or further assembled, including 
those coupler parts attached to a railcar in third countries. 
Further processing includes, but is not limited to, arc washing, 
welding, grinding, shot blasting, heat treatment, painting, coating, 
priming, machining, and assembly of various parts. The inclusion, 
attachment, joining, or assembly of nonsubject parts with subject 
parts or couplers either in the country of manufacture of the in-
scope product or in a third country does not remove the subject 
parts or couplers from the scope.
    The couplers that are the subject of this investigation are 
currently classifiable in the Harmonized Tariff Schedule of the 
United States (HTSUS) statistical reporting number 8607.30.1000. 
Unfinished subject merchandise may also enter under HTSUS 
statistical reporting number 7326.90.8688. Subject merchandise 
attached to finished railcars may also enter under HTSUS statistical 
reporting numbers 8606.10.0000, 8606.30.0000, 8606.91.0000, 
8606.92.0000, 8606.99.0130, 8606.99.0160, or under subheading 
9803.00.50. Subject merchandise may also be imported under HTSUS 
statistical reporting number 7325.99.5000. These HTSUS subheadings 
are provided for convenience and customs purposes only; the written 
description of the scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Final Negative Determination of Critical Circumstances
V. Changes Since the Post-Preliminary Determination
VI. Discussion of the Issues
    Comment 1: Whether ASF-K Has a Viable Mexican Home Market
    Comment 2: Whether ASF-K's IMMEX Sales Are U.S. Sales
    Comment 3: Whether Commerce Should Disqualify Counsel to 
Petitioner and Dismiss the Petition Due to a Conflict of Interest
    Comment 4: Whether Commerce Should Revoke the Initiation of an 
MNC Provision Investigation
    Comment 5: Whether Commerce Should Disallow ASF-K's Reported 
Surcharges
    Comment 6: Whether ASF-K's Technical Support Expenses Are 
Indirect Selling Expenses
    Comment 7: Whether ASF-K's Technical Support Expenses Should Be 
Allocated to the U.S. Market
    Comment 8: Whether To Incorporate Information From Verifications 
Into the Final Calculations
VII. Recommendation

[FR Doc. 2023-20483 Filed 9-20-23; 8:45 am]
BILLING CODE 3510-DS-P