[Federal Register Volume 83, Number 137 (Tuesday, July 17, 2018)]
[Notices]
[Pages 33195-33201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-15225]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-088]


Steel Racks From the People's Republic of China: Initiation of 
Less-Than-Fair-Value Investigation

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

DATES: Applicable July 10, 2018.

FOR FURTHER INFORMATION CONTACT: Jonathan Hill or Patrick O'Connor at 
(202) 482-3518 or (202) 482-0989, respectively; AD/CVD Operations, 
Enforcement and Compliance, International Trade Administration,

[[Page 33196]]

U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, 
DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petition

    On June 20, 2018, the U.S. Department of Commerce (Commerce) 
received an antidumping duty (AD) Petition concerning imports of steel 
racks from the People's Republic of China (China), filed in proper form 
on behalf of the Coalition of Fair Rack Imports (the petitioner).\1\ 
The AD Petition was accompanied by a countervailing duty (CVD) Petition 
concerning imports of steel racks from China.
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    \1\ See the petitioner's Letter, ``Petitions for the Imposition 
of Antidumping and Countervailing Duties: Steel Racks from the 
People's Republic of China,'' dated June 20, 2018 (the Petition). 
See Volume I of the Petition, at 1-3.
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    On June 22, 2018, Commerce requested supplemental information 
pertaining to certain aspects of the Petition in two separate 
supplemental questionnaires, one dealing with general issues with the 
petition and the other with issues related to Volume II of the 
Petition.\2\
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    \2\ See Commerce's Letters, both titled, ``Petitions for the 
Imposition of Antidumping and Countervailing Duties on Imports of 
Steel Racks from the People's Republic of China: Supplemental 
Questions,'' and both dated June 22, 2018.
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    The petitioner filed its responses to the supplemental 
questionnaires on June 26.\3\ On June 28, and June 29, 2018, Commerce 
requested supplemental information pertaining to certain areas of the 
Petition.\4\ The petitioner filed responses to Commerce's requests on 
June 29, and July 2, 2018.\5\ On July 5, 2018, we spoke with the 
petitioner regarding the scope language submitted in its July 2, 2018 
submission.\6\ On July 9, 2018, the petitioner filed an amendment to 
the scope, further clarifying the scope language.\7\
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    \3\ See the petitioner's Letters, ``Steel Racks from the 
People's Republic of China: Response to Supplemental Questions--
Antidumping Duties, dated June 26, 2018 (AD Supplement). See ``Steel 
Racks from the People's Republic of China: Response to Supplemental 
Questions--General Issues,'' dated June 26, 2018 (General Issues 
Supplement).
    \4\ See Memoranda, ``Phone Call with Counsel to the 
Petitioner,'' dated June 28, 2018 and Memorandum, ``Phone Call with 
Counsel to Petitioners,'' dated June 29, 2018.
    \5\ See Steel Racks from the People's Republic of China: 
Additional Response to Supplemental Questions--Antidumping Duties,'' 
dated June 29, 2018 (Second AD Supplement). See ``Steel Racks from 
the People's Republic of China: Response to Second Set of 
Supplemental Questions--General Issues,'' dated July 2, 2018 (Second 
General Issues Supplement). See ``Steel Racks from the People's 
Republic of China: Additional Response to Supplemental Questions--
Antidumping Duties,'' dated July 2, 2018 (Third AD Supplement).
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    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of steel racks 
from China are being, or are likely to be, sold in the United States at 
less than fair value within the meaning of section 731 of the Act, and 
that such imports are materially injuring, or threatening material 
injury to, the domestic industry producing steel racks in the United 
States. Consistent with section 732(b)(1) of the Act, the Petition is 
accompanied by information reasonably available to the petitioner 
supporting its allegation.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry because the petitioner is an interested party as 
defined in section 771(9)(E) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support with respect to the 
initiation of the AD investigation that the petitioner is 
requesting.\8\
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    \8\ See the ``Determination of Industry Support for the 
Petition'' section, infra.
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Period of Investigation

    Because China is a non-market economy (NME) country, pursuant to 19 
CFR 351.204(b)(1), the period of investigation (POI) is October 1, 
2017, through March 31, 2018.

Scope of the Investigation

    The product covered by this investigation is steel racks from 
China. For a full description of the scope of this investigation, see 
the Appendix to this notice.

Scope Comments

    During our review of the Petition, Commerce contacted the 
petitioner regarding the proposed scope language to ensure that the 
scope language in the Petition is an accurate reflection of the 
products for which the domestic industry is seeking relief.\9\ As a 
result, the scope of the Petition was modified to clarify the 
description of merchandise covered by the Petition. The description of 
the merchandise covered by this initiation, as described in the 
Appendix to this notice, reflects these clarifications.
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    \9\ See General Issues Supplement, at 1-9; see also Revised 
Scope, at Exhibit 1.
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    As discussed in the preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (scope).\10\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information,\11\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit scope comments by 5:00 p.m. Eastern Time 
(ET) on July 30, 2018, which is 20 calendar days from the signature 
date of this notice.\12\ Any rebuttal comments, which may include 
factual information, must be filed by 5:00 p.m. ET on August 9, 2018, 
which is 10 calendar days from the initial comments deadline.
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    \10\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \11\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \12\ See 19 CFR 351.303(b).
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    Commerce requests that any factual information parties consider 
relevant to the scope of the investigation be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigation may be 
relevant, the party may contact Commerce and request permission to 
submit the additional information. All such submissions must be filed 
on the records of the concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\13\ An electronically 
filed document must be received successfully in its entirety by the 
time and date it is due. Documents exempted from the electronic 
submission requirements must be filed manually (i.e., in paper form) 
with Enforcement and Compliance's APO/Dockets Unit, Room 18022, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230, and stamped with the date and time of receipt by the applicable 
deadlines.
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    \13\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaire

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics

[[Page 33197]]

of steel racks to be reported in response to Commerce's AD 
questionnaire. This information will be used to identify the key 
physical characteristics of the merchandise under consideration in 
order to report the relevant factors of production accurately, as well 
as to develop appropriate product-comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. In order to consider the suggestions of 
interested parties in developing and issuing the AD questionnaire, all 
product characteristics comments must be filed by 5:00 p.m. ET on July 
30, 2018, which is 20 calendar days from the signature date of this 
notice.\14\ Any rebuttal comments must be filed by 5:00 p.m. ET on 
August 9, 2018. All comments and submissions to Commerce must be filed 
electronically using ACCESS, as explained above, on the record of the 
China less-than-fair-value investigation.
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    \14\ See 19 CFR 351.303(b).
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Determination of Industry Support for the Petition

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\15\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\16\
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    \15\ See section 771(10) of the Act.
    \16\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\17\ Based on our analysis of the information 
submitted on the record, we have determined that steel racks, as 
defined in the scope, constitute a single domestic like product, and we 
have analyzed industry support in terms of that domestic like 
product.\18\
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    \17\ See Volume I of the Petition, at 11-13 and Exhibit I-9; see 
also General Issues Supplement, at 9-10.
    \18\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Antidumping Duty Investigation Initiation Checklist: Steel Racks 
from the People's Republic of China (China AD Initiation Checklist), 
at Attachment II, Analysis of Industry Support for the Antidumping 
and Countervailing Duty Petitions Covering Steel Racks from the 
People's Republic of China (Attachment II). This checklist is dated 
concurrently with this notice and on file electronically via ACCESS. 
Access to documents filed via ACCESS is also available in the 
Central Records Unit, Room B8024 of the main Department of Commerce 
building.
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    In determining whether the petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the Appendix to 
this notice. To establish industry support, the petitioner provided its 
own 2017 shipments of the domestic like product and compared this to 
the estimated total shipments of the domestic like product for the 
entire domestic industry.\19\ The petitioner explained that it relied 
on shipment data because production data for the entire domestic 
industry were not available.\20\ In addition, the petitioner contends 
that shipments are a reasonable proxy for data on production of steel 
racks.\21\ We relied on data the petitioner provided for purposes of 
measuring industry support.\22\
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    \19\ See Volume I of the Petition, at 3-5 and Exhibits I-2 and 
I-3; see also General Issues Supplement, at 10-11 and Exhibit 5; see 
also Second General Issues Supplement, at 3-4 and Exhibits 1 and 2.
    \20\ See Volume I of the Petition, at 4-5 and Exhibit I-2.
    \21\ Id. at 4 Exhibit I-3; see also Second General Issues 
Supplement, at 4.
    \22\ See Volume I of the Petition, at 4-5 and Exhibit I-2; see 
also General Issues Supplement, at 10-11 and Exhibit 5; see also 
Second General Issues Supplement, at 3-4 and Exhibits 1 and 2.
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    In its July 3, 2018, letter, Jiaxing Zhongda Import & Export Co., 
Ltd. (Jiaxing Zhongda), a Chinese exporter/producer, submitted comments 
on industry support and requested that Commerce poll the industry to 
determine industry support.\23\ The petitioner responded to these 
comments in the Industry Support Supplement, dated July 3, 2018.\24\ In 
a letter dated July 5, 2018, Guangdong Wireking Housewares and Hardware 
Co., Ltd. (Guangdong Wireking), a Chinese exporter/producer, submitted 
comments on industry support and requested that Commerce poll the 
industry to determine industry support.\25\ The petitioner responded to 
Guangdong Wireking's comments on July 6, 2018.\26\ In a letter dated 
July 9, 2018, United Material Handling (UMH), a U.S. importer of 
subject merchandise, submitted comments on industry support and 
requested that Commerce poll the industry to determine industry 
support.\27\ The petitioner responded to these comments in the Third 
Industry Support Supplement, dated July 10,

[[Page 33198]]

2018.\28\ For further discussion of these comments, see Attachment II 
of the China AD Initiation Checklist.
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    \23\ See Jiaxing Zhongda's Letter, ``Steel Racks from the 
People's Republic of China: Pre-Initiation Industry Support 
Comments, dated July 3, 2018 (Jiaxing Zhongda Letter).
    \24\ See the petitioner's Letter, ``Steel Racks from the 
People's Republic of China: Response to Industry Support Comments,'' 
dated July 3, 2018 (Industry Support Supplement).
    \25\ See Guangdong Wireking Letter, ``Steel Racks from the 
People's Republic of China: Pre-Initiation Industry Support 
Comments,'' dated July 5, 2018 (Guangdong Wireking Letter).
    \26\ See the petitioner's Letter, ``Steel Racks from the 
People's Republic of China: Response to Industry Support Comments,'' 
dated July 6, 2018 (Second Industry Support Supplement).
    \27\ See UMH's Letter, ``Steel Racks from the People's Republic 
of China Pre-Initiation Comments on Industry Support, dated July 9, 
2018) (UMH Letter).
    \28\ See the peitioner's Letter, ``Steel Racks from the People's 
Republic of China: Response to UMH's Industry Support Comments,'' 
dated July 10, 2018 (Third Industry Support Supplement).
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    Our review of the data provided in the Petition, the General Issues 
Supplement, the Second General Issues Supplement, letters from Jiaxing 
Zhongda, Guangdong Wireking, and UMH, the Industry Support Supplement, 
the Second Industry Support Supplement, the Third Industry Support 
Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petition.\29\ First, the Petition established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product and, as such, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\30\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
732(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petition account for at least 25 percent of the total 
production of the domestic like product.\31\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 732(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition.\32\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within the meaning of 
section 732(b)(1) of the Act.
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    \29\ See China AD Initiation Checklist, at Attachment II.
    \30\ Id.; see also section 732(c)(4)(D) of the Act.
    \31\ See China AD Initiation Checklist, at Attachment II.
    \32\ Id.
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    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry because it is an interested party as defined in 
section 771(9)(E) of the Act and it has demonstrated sufficient 
industry support with respect to the AD investigation that it is 
requesting that Commerce initiate.\33\
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    \33\ Id.
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Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (NV). In addition, the 
petitioner alleges that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.\34\
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    \34\ See Volume I of the Petition, at 17 and Exhibit I-13.
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    The petitioner contends that the industry's injured condition is 
illustrated by a significant and increasing volume of subject imports; 
reduced market share; underselling and price depression or suppression; 
lost sales and lost revenues; decline in production, quantity of U.S. 
shipments, and capacity utilization rate; and decline in the domestic 
industry's profitability.\35\ We have assessed the allegations and 
supporting evidence regarding material injury, threat of material 
injury, and causation, and we have determined that these allegations 
are properly supported by adequate evidence, and meet the statutory 
requirements for initiation.\36\
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    \35\ See Volume I of the Petition, at 14-28 and Exhibits I-3, I-
13, and I-15 through I-24; see also General Issues Supplement, at 
11-12 and Exhibit 6; and Second General Issues Supplement, at 4-5.
    \36\ See China AD Initiation Checklist at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Steel Racks from the People's Republic of China.
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Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at less 
than fair value upon which Commerce based its decision to initiate an 
AD investigation of imports of steel racks from China. The sources of 
data for the deductions and adjustments relating to U.S. price and NV 
are discussed in greater detail in the China AD Initiation Checklist.

Export Price

    The petitioner based U.S. export prices (EP) on price quotes.\37\ 
Where applicable, the petitioner made deductions from U.S. price for 
distributor markup, movement and other expenses, consistent with the 
terms of sale.\38\
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    \37\ See China AD Initiation Checklist.
    \38\ Id.
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Normal Value

    Commerce considers China to be an NME country.\39\ In accordance 
with section 771(18)(C)(i) of the Act, any determination that a foreign 
country is an NME country shall remain in effect until revoked by 
Commerce. Therefore, we continue to treat China as an NME country for 
purposes of the initiation of this investigation. Accordingly, NV in 
China is appropriately based on factors of production (FOPs) valued in 
a surrogate market economy country, in accordance with section 773(c) 
of the Act.\40\
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    \39\ See Antidumping Duty Investigation of Certain Aluminum Foil 
from the People's Republic of China: Affirmative Preliminary 
Determination of Sales at Less-Than-Fair Value and Postponement of 
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and 
accompanying decision memorandum, China's Status as a Non-Market 
Economy, unchanged in Certain Aluminum Foil from the People's 
Republic of China: Final Determination of Sales at Less Than Fair 
Value, 83 FR 9282 (March 5, 2018).
    \40\ See China AD Initiation Checklist.
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    The petitioner claims that Brazil is an appropriate surrogate 
country for China because it is a market economy country that is at a 
level of economic development comparable to that of China and it is a 
significant producer of comparable merchandise.\41\ The petitioner 
provided publicly available information from Brazil to value all 
FOPs.\42\ Therefore, based on the information provided by the 
petitioner, we determine that it is appropriate to use Brazil as the 
primary surrogate country for initiation purposes.
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    \41\ See Volume II of the Petition, at 1-2 and Exhibits II-1 and 
II-2.
    \42\ Id. at 5-7 and Exhibits II-7 through II-15.
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    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    Based on its assertion that information regarding the FOPs and 
volume of inputs consumed by Chinese producers/exporters of steel racks 
was not reasonably available to the petitioner, the petitioner used the 
consumption rates of a U.S. steel racks producer to estimate the 
Chinese manufacturers' FOPs.\43\ The petitioner valued the estimated 
FOPs using surrogate values from Brazil, as noted above.\44\ The 
petitioner used the average

[[Page 33199]]

POI exchange rate to convert surrogate values expressed in Brazilian 
reals to U.S. dollars.\45\
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    \43\ See Volume II of the Petition at 5-7 and Exhibit II-7 and 
AD Supplement at 2-3 and Exhibit 3.
    \44\ Id. at 5-7 and Exhibits II-7 through II-15.
    \45\ Id. at Exhibit II-9.
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Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of steel racks from China are being, or are likely 
to be, sold in the United States at less than fair value. Based on 
comparisons of EP to NV in accordance with sections 772 and 773 of the 
Act, the estimated dumping margins for steel racks from China are 
130.0-144.5 percent.\46\
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    \46\ See China AD Initiation Checklist.
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Initiation of Less-Than-Fair-Value Investigation

    Based upon the examination of the Petition, we find that the 
Petition meets the requirements of section 732 of the Act. Therefore, 
we are initiating an AD investigation to determine whether imports of 
steel racks from China are being, or are likely to be, sold in the 
United States at less than fair value. In accordance with section 
733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless postponed, we 
will make our preliminary determination no later than 140 days after 
the date of this initiation.

Respondent Selection

    The petitioner named 93 producers/exporters as accounting for the 
majority of exports of steel racks to the United States from China.\47\ 
In accordance with our standard practice for respondent selection in AD 
cases involving NME countries, we intend to issue quantity and value 
(Q&V) questionnaires to producers/exporters of merchandise subject to 
this investigation. In the event Commerce determines that it cannot 
individually examine each company, where appropriate, Commerce intends 
to select mandatory respondents based on the responses received to its 
Q&V questionnaire. Commerce will request Q&V information from known 
exporters and producers identified with complete contact information in 
the Petition. In addition, Commerce will post the Q&V questionnaires 
along with filing instructions on Enforcement and Compliance's website 
at http://www.trade.gov/enforcement/news.asp.
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    \47\ See Volume I of the Petition at Exhibit I-6; see also 
General Issues Supplement, at 1 and Exhibit 1.
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    Producers/exporters of steel racks from China that do not receive 
Q&V questionnaires by mail may still submit a response to the Q&V 
questionnaire and can obtain a copy of the Q&V questionnaire from 
Enforcement & Compliance's website. The Q&V questionnaire response must 
be submitted by the relevant Chinese exporters/producers no later than 
5:00 p.m. ET on July 24, 2018, which is two weeks from the signature 
date of this notice. All Q&V responses must be filed electronically via 
ACCESS.

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
exporters and producers must submit a separate-rate application.\48\ 
The specific requirements for submitting a separate-rate application in 
this investigation are outlined in detail in the application itself, 
which is available on Commerce's website at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate 
application will be due 30 days after publication of this initiation 
notice.\49\ Exporters and producers who submit a separate-rate 
application and have been selected as mandatory respondents will be 
eligible for consideration for separate-rate status only if they 
respond to all parts of Commerce's AD questionnaire as mandatory 
respondents. Commerce requires that companies from China submit a 
response to both the Q&V questionnaire and the separate-rate 
application by the respective deadlines in order to receive 
consideration for separate-rate status. Companies not filing a timely 
Q&V questionnaire response will not receive separate-rate 
consideration.
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    \48\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving Non-Market Economy Countries (April 5, 2005), available at 
http://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 
05.1).
    \49\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

{w{time} hile continuing the practice of assigning separate rates 
only to exporters, all separate rates that the Department will now 
assign in its NME Investigation will be specific to those producers 
that supplied the exporter during the period of investigation. Note, 
however, that one rate is calculated for the exporter and all of the 
producers which supplied subject merchandise to it during the period 
of investigation. This practice applies both to mandatory 
respondents receiving an individually calculated separate rate as 
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is 
referred to as the application of ``combination rates'' because such 
rates apply to specific combinations of exporters and one or more 
producers. The cash-deposit rate assigned to an exporter will apply 
only to merchandise both exported by the firm in question and 
produced by a firm that supplied the exporter during the period of 
investigation.\50\
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    \50\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the Petition

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petition have been 
provided to the government of China via ACCESS. To the extent 
practicable, we will attempt to provide a copy of the public version of 
the Petition to each exporter named in the Petition, as provided under 
19 CFR 351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of steel racks from China are materially 
injuring or threatening material injury to a U.S. industry. A negative 
ITC determination will result in the investigation being 
terminated.\51\ Otherwise, the investigation will proceed according to 
statutory and regulatory time limits.
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    \51\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). 19 CFR 351.301(b) requires any 
party, when submitting factual information, to specify under which 
subsection of 19 CFR 351.102(b)(21) the information is being submitted 
\52\ and, if the information is submitted to rebut, clarify, or correct 
factual information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct.\53\ Time limits for 
the submission of factual

[[Page 33200]]

information are addressed in 19 CFR 351.301, which provides specific 
time limits based on the type of factual information being submitted. 
Interested parties should review the regulations prior to submitting 
factual information in this investigation.
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    \52\ See 19 CFR 351.301(b).
    \53\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in a letter or memorandum of the 
deadline (including a specified time) by which extension requests must 
be filed to be considered timely. An extension request must be made in 
a separate, stand-alone submission; under limited circumstances we will 
grant untimely-filed requests for the extension of time limits. Parties 
should review Extension of Time Limits; Final Rule, 78 FR 57790 
(September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual information 
in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\54\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\55\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \54\ See section 782(b) of the Act.
    \55\ See also Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On January 22, 2008, Commerce 
published Antidumping and Countervailing Duty Proceedings: Documents 
Submission Procedures; APO Procedures, 73 FR 3634 (January 22, 2008). 
Parties wishing to participate in this investigation should ensure that 
they meet the requirements of these procedures (e.g., the filing of 
letters of appearance as discussed at 19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: July 10, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The merchandise covered by this investigation is steel racks and 
parts thereof, assembled, to any extent, or unassembled, including 
but not limited to, vertical components (e.g., uprights, posts, or 
columns), horizontal or diagonal components (e.g., arms or beams), 
braces, frames, locking devices (i.e., end plates and beam 
connectors), and accessories (including, but not limited to, rails, 
skid channels, skid rails, drum/coil beds, fork clearance bars, 
pallet supports, column and post protectors, end row and end aisle 
protectors, corner guards, row spacers, and wall ties). Subject 
steel racks and parts thereof are made of steel, including, but not 
limited to, cold and/or hot-formed steel, regardless of the type of 
steel used to produce the components and may, or may not, include 
locking tabs, slots, or bolted, clamped, or welded connections.
    Steel rack components can be assembled into structures of 
various dimensions and configurations by welding, bolting, clipping, 
or with the use of devices such as clips, end plates, and beam 
connectors, including, but not limited to the following 
configurations: (1) Racks with upright frames perpendicular to the 
aisles that are independently adjustable, with positive locking 
beams parallel to the aisle spanning the upright frames with braces; 
and (2) cantilever racks with vertical components parallel to the 
aisle and cantilever beams or arms connected to the vertical 
components perpendicular to the aisle. Steel racks may be referred 
to as pallet racks, storage racks, stacker racks, retail racks, pick 
modules, selective racks, or cantilever racks and may incorporate 
moving components and be referred to as pallet-flow racks, carton-
flow racks, push-back racks, movable-shelf racks, drive-in racks, 
and drive-through racks. While steel racks may be made to ANSI 
MH16.l or ANSI MH16.3 standards, all steel racks and parts thereof 
meeting the description set out herein are covered by the scope of 
this investigation, whether or not produced according to a 
particular standard.
    The scope includes all steel racks and parts thereof meeting the 
description above, regardless of
    (1) dimensions, weight, strength, gauge, or load rating;
    (2) vertical components or frame type (including structural, 
roll-form, or other);
    (3) horizontal support or beam/brace type (including but not 
limited to structural, roll-form, slotted, unslotted, Z-beam, C-
beam, L-beam, step beam, and cantilever beam);
    (4) number of supports;
    (5) number of levels;
    (6) surface coating, if any (including but not limited to paint, 
epoxy, powder coating, zinc, or other metallic coatings);
    (7) shape (including but not limited to rectangular, square, 
corner, and cantilever);
    (8) the method by which the vertical and horizontal supports 
connect (including but not limited to locking tabs or slots, 
bolting, clamping, and welding); and
    (9) whether or not the steel rack has moving components 
(including but not limited to rails, wheels, rollers, tracks, 
channels, carts, and conveyors).
    Subject merchandise includes merchandise matching the above 
description that has been finished or packaged in a third country. 
Finishing includes, but is not limited to, coating, painting, or 
assembly, including attaching the merchandise to another product, or 
any other finishing or assembly operation that would not remove the 
merchandise from the scope of the investigation if performed in the 
country of manufacture of the steel racks and parts thereof. 
Packaging includes packaging the merchandise with or without another 
product or any other packaging operation that would not remove the 
merchandise from the scope of the investigation if performed in the 
country of manufacture of the steel racks and parts thereof.
    Steel racks and parts thereof are included in the scope of this 
investigation whether or not imported attached to, or included with, 
other parts or accessories such as wire decking, nuts, and bolts. If 
steel racks and parts thereof are imported attached to, or included 
with, such non-subject merchandise, only the steel racks and parts 
thereof are included in the scope.
    The scope of this investigation does not cover: (1) Decks, i.e., 
shelving that sits on or fits into the horizontal supports to 
provide the horizontal storage surface of the steel racks; (2) wire 
shelving units, i.e., shelves made from wire that incorporate both a 
wire deck and wire horizontal supports (taking the place of the 
horizontal beams and braces) into a single piece with tubular 
collars that slide over the posts and onto plastic sleeves snapped 
on the posts to create a finished unit; (3) pins, nuts, bolts, 
washers, and clips used as connecting devices; and 4) non-steel 
components.
    Specifically excluded from the scope of this investigation are 
any products covered by Commerce's existing antidumping and 
countervailing duty orders on boltless steel shelving units 
prepackaged for sale from the People's Republic of China. See 
Boltless Steel Shelving Units Prepackaged for Sale From the People's 
Republic of China: Antidumping Duty Order, 80 FR 63,741 (October 21, 
2017); Boltless Steel Shelving Units Prepackaged for Sale From the 
People's Republic of China: Amended Final Affirmative Countervailing

[[Page 33201]]

Duty Determination and Countervailing Duty Order, 80 FR 63,745 
(October 21, 2017). Also excluded from the scope of this 
investigation are bulk-packed parts or components of boltless steel 
shelving units that were specifically excluded from the scope of the 
Boltless Steel Shelving Orders because such bulk-packed parts or 
components do not contain the steel vertical supports (i.e., 
uprights and posts) and steel horizontal supports (i.e., beams, 
braces) packaged together for assembly into a completed boltless 
steel shelving unit.
    Merchandise covered by this investigation is currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under the following subheadings: 7326.90.8688, 9403.20.0080, 
and 9403.90.8041. Subject merchandise may also enter under 
subheadings 7308.90.3000, 7308.90.6000, 7308.90.9590, and 
9403.20.0090. The HTSUS subheadings are provided for convenience and 
U.S. Customs purposes only. The written description of the scope is 
dispositive.

[FR Doc. 2018-15225 Filed 7-16-18; 8:45 am]
 BILLING CODE 3510-DS-P