[Federal Register Volume 88, Number 228 (Wednesday, November 29, 2023)]
[Notices]
[Pages 83386-83389]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26232]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-557-824]


Boltless Steel Shelving Units Prepackaged for Sale From Malaysia: 
Preliminary Affirmative Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination, and Extension of Provisional 
Measures

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that boltless steel shelving units prepackaged for sale 
(boltless steel shelving) from Malaysia are being, or are likely to be, 
sold in the United States at less than fair value (LTFV). The period of 
investigation (POI) is April 1, 2022, through March 31, 2023. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable November 29, 2023.

FOR FURTHER INFORMATION CONTACT: Samuel Frost, AD/CVD Operations, 
Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-8180.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on May 19, 
2023.\1\ On September 14, 2023, Commerce postponed the preliminary 
determination of this investigation until November 21, 2023.\2\
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    \1\ See Boltless Steel Shelving Units Prepackaged for Sale from 
India, Malaysia, Taiwan, Thailand and the Socialist Republic of 
Vietnam: Initiation of Less-Than-Fair-Value Investigations, 88 FR 
32188 (May 19, 2023) (Initiation Notice).
    \2\ See Boltless Steel Shelving Units Prepackaged for Sale from 
India, Malaysia, Taiwan, Thailand, and the Socialist Republic of 
Vietnam: Postponement of Preliminary Determinations in the Less-
Than-Fair-Value Investigations, 88 FR 63063 (September 14, 2023).
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix

[[Page 83387]]

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 https://access.trade.gov. In addition, a complete version of the Preliminary 
Decision Memorandum can be accessed directly at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination in the Less-Than-Fair-Value Investigation 
of Boltless Steel Shelving Units Prepackaged for Sale from 
Malaysia,'' dated concurrently with, and hereby adopted by, this 
notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is boltless steel 
shelving from Malaysia. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the Preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of the product coverage comments 
and rebuttal responses submitted to the record for this preliminary 
determination, and accompanying discussion and analysis of all comments 
timely received, see the Preliminary Scope Decision Memorandum.\6\ As 
discussed in the Preliminary Scope Decision Memorandum, Commerce 
preliminarily did not modify the scope language as it appeared in the 
Initiation Notice. In the Preliminary Scope Decision Memorandum, 
Commerce established deadlines for parties to submit scope case and 
rebuttal briefs as well as a deadline to request a hearing on issues 
raised in the scope briefs.
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    \4\ See Antidumping Duties; Countervailing Duties: Final Rule 62 
FR 27296 (May 19, 1997) (Preamble).
    \5\ See Initiation Notice, 88 FR at 32189.
    \6\ See Memorandum, ``Preliminary Scope Decision Memorandum,'' 
dated November 13, 2023 (Preliminary Scope Decision Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices for 
Eonmetall Industries Sdn. Bhd. (EMI) in accordance with section 772(a) 
of the Act. Normal value is calculated in accordance with section 773 
of the Act. Furthermore, pursuant to section 776(a) and (b) of the Act, 
Commerce has preliminarily relied on facts otherwise available, with 
adverse inferences for Nanjing Chervon Industry Co., Ltd. (Nanjing 
Chervon) and Wuxi Bote Electrical Apparatus Co., Ltd. (Wuxi Bote).\7\ 
For a full description of the methodology underlying the preliminary 
determination, see the Preliminary Decision Memorandum.
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    \7\ We also selected Fuyuan Wood Industry Co., Ltd. (Fuyuan 
Wood) as a mandatory respondent in this investigation. However, 
because it did not export any subject merchandise to the United 
States during the POI, we are preliminarily not assigning Fuyuan 
Wood a dumping margin.
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All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    Where the rates for individually investigated companies are all 
zero or de minimis, or determined entirely using facts otherwise 
available, section 735(c)(5)(B) of the Act instructs Commerce to 
establish ``any reasonable method to establish the estimated all-others 
rate for exporters and producers not individually investigated, 
including averaging the estimated weighted-average dumping margins 
determined for the exporters and producers individually investigated.'' 
Commerce has preliminarily determined the estimated weighted-average 
dumping margin for Nanjing Chervon and Wuxi Bote under section 776 of 
the Act and calculated an estimated weighted-average dumping margin for 
EMI of zero. Consequently, pursuant to section 735(c)(5)(B) of the Act, 
we calculated the all-others rate based on a simple average of the zero 
percent dumping margin and the two dumping margins based totally on 
adverse facts available.

Preliminary Determination

    For the period April 1, 2022, through March 31, 2023, Commerce 
preliminarily determines that the following estimated weighted-average 
dumping margins exist:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                      Producer/exporter                         dumping
                                                                margin
                                                               (percent)
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Eonmetall Industries Sdn. Bhd...............................        0.00
Nanjing Chervon Industry Co., Ltd...........................     * 81.12
Wuxi Bote Electrical Apparatus Co., Ltd.....................     * 81.12
All Others..................................................       54.08
------------------------------------------------------------------------
* Rate based on facts available with adverse inferences.

Suspension of Liquidation

    In accordance with section 733(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 Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register, as discussed below. 
Further, pursuant to section 733(d)(1)(B) of the Act and 19 CFR 
351.205(d), 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 respondents 
listed above will be equal to the company-specific estimated weighted-
average dumping margin determined in this preliminary 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-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.
    Because the estimated weighted-average dumping margin for EMI is 
zero, entries of shipments of subject merchandise from EMI will not be 
subject to suspension of liquidation or cash deposit requirements. In 
such situations, Commerce applies the exclusion to the provisional 
measures to the producer/exporter combination that was examined in the 
investigation. Accordingly, Commerce is directing CBP not to suspend 
liquidation of entries of subject merchandise produced and exported by 
EMI. Entries of shipments of subject merchandise from this company in 
any other producer/exporter combination, or by third parties that 
sourced subject merchandise from the excluded producer/exporter 
combination, are subject to the provisional measures at the all-others 
rate.
    Should the final estimated weighted-average dumping margin be zero 
or de minimis for the producer/exporter

[[Page 83388]]

combination identified above, entries of shipments of subject 
merchandise from this producer/exporter combination will be excluded 
from the potential antidumping duty order. Such exclusions are not 
applicable to merchandise exported to the United States by this 
respondent in any other producer/exporter combinations or by third 
parties that sourced subject merchandise from the excluded producer/
exporter combination. These suspension of liquidation measures will 
remain in effect until further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed in connection with this preliminary determination to 
interested parties within five days 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).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted not later than five days after the date for 
filing case briefs.\8\ Interested parties who submit case or rebuttal 
briefs in this proceeding must submit: (1) a table of contents listing 
each issue; and (2) a table of authorities.\9\
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    \8\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
    \9\ See 19 351.309(c)(2) and (d)(2).
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    As provided under 19 CFR 351.309(c)(2) and d(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In this investigation, we instead request 
that interested parties provide at the beginning of their briefs a 
public, executive summary for each issue raised in their briefs.\10\ 
Further, we request that interested parties limit their executive 
summary of each issue to no more than 450 words, not including 
citations. We intend to use the executive summaries as the basis of the 
comment summaries included in the issues and decision memorandum that 
will accompany the final determination in this investigation. We 
request that interested parties include footnotes for relevant 
citations in the executive summary of each issue. Note that Commerce 
has amended certain of its requirements pertaining to the service of 
documents in 19 CFR 351.303(f).\11\
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    \10\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \11\ See APO and Service Final 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 time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by respondents for postponement of a final determination 
be accompanied by a request for extension of provisional measures from 
a four-month period to a period not more than six months in duration. 
On November 3, 2023, pursuant to 19 CFR 351.210(e), Edsal Manufacturing 
Co., Inc. (the petitioner), requested that Commerce postpone the final 
determination and that provisional measures be extended to a period not 
to exceed 135 days.\12\
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    \12\ See Petitioner's Letter, ``Petitioner's Request for 
Postponement of Final Determination,'' dated November 3, 2023.
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    On November 7, 2023, EMI also requested that Commerce postpone the 
final determination in the event the preliminary determination is 
affirmative and that provisional measures be extended to a period not 
to exceed six months.\13\ In accordance with section 735(a)(2)(A) of 
the Act and 19 CFR 351.210(b)(2)(ii), because: (1) the preliminary 
determination is affirmative; (2) the requesting exporter accounts for 
a significant proportion of exports of the subject merchandise; and (3) 
no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
Commerce's final determination will be issued no later than 135 days 
after the date of publication of this preliminary determination.
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    \13\ See EMI's Letter, ``Request for Extension of Final 
Determination and Provisional Measures,'' dated November 7, 2023.
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U.S. International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the U.S. International Trade Commission (ITC) of its preliminary 
determination of sales at LTFV. 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 whether imports of the subject merchandise are materially 
injuring, or threaten material injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act, and 19 CFR 351.205(c).

    Dated: November 21, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers boltless steel shelving 
units prepackaged for sale, with or without decks (boltless steel 
shelving). The term ``prepackaged for sale'' means that, at a 
minimum, the steel vertical supports (i.e., uprights and posts) and 
steel horizontal supports (i.e., beams, braces) necessary to 
assemble a completed shelving unit (with or without decks) are 
packaged together for ultimate purchase by the end-user. The scope 
also includes add-on kits. Add-on kits include, but are not limited 
to, kits that allow the end-user to add an extension shelving unit 
onto an existing

[[Page 83389]]

boltless steel shelving unit such that the extension and the 
original unit will share common frame elements (e.g., two posts). 
The term ``boltless'' refers to steel shelving in which the vertical 
and horizontal supports forming the frame are assembled primarily 
without the use of nuts and bolts, or screws. The vertical and 
horizontal support members for boltless steel shelving are assembled 
by methods such as, but not limited to, fitting a rivet, punched or 
cut tab, or other similar connector on one support into a hole, slot 
or similar receptacle on another support. The supports lock together 
to form the frame for the shelving unit, and provide the structural 
integrity of the shelving unit separate from the inclusion of any 
decking. The incidental use of nuts and bolts, or screws to add 
accessories, wall anchors, tie-bars or shelf supports does not 
remove the product from scope. Boltless steel shelving units may 
also come packaged as partially assembled, such as when two upright 
supports are welded together with front-to-back supports, or are 
otherwise connected, to form an end unit for the frame. The boltless 
steel shelving covered by this investigation may be commonly 
described as rivet shelving, welded frame shelving, slot and tab 
shelving, and punched rivet (quasi-rivet) shelving as well as by 
other trade names. The term ``deck'' refers to the shelf that sits 
on or fits into the horizontal supports (beams or braces) to provide 
the horizontal storage surface of the shelving unit.
    The scope includes all boltless steel shelving meeting the 
description above, regardless of: (1) vertical support or post type 
(including but not limited to open post, closed post and tubing); 
(2) horizontal support or beam/brace profile (including but not 
limited to Z-beam, C-beam, L-beam, step beam and cargo rack); (3) 
number of supports; (4) surface coating (including but not limited 
to paint, epoxy, powder coating, zinc and other metallic coating); 
(5) number of levels; (6) weight capacity; (7) shape (including but 
not limited to rectangular, square, and corner units); (8) decking 
material (including but not limited to wire decking, particle board, 
laminated board or no deck at all); or (9) the boltless method by 
which vertical and horizontal supports connect (including but not 
limited to keyhole and rivet, slot and tab, welded frame, punched 
rivet and clip).
    Specifically excluded from the scope are:
    <bullet> wall-mounted shelving, defined as shelving that is hung 
on the wall and does not stand on, or transfer load to, the floor. 
The addition of a wall bracket or other device to attach otherwise 
freestanding subject merchandise to a wall does not meet the terms 
of this exclusion;
    <bullet> wire shelving units, which consist of shelves made from 
wire that incorporates 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 the finished shelving 
unit;
    <bullet> bulk-packed parts or components of boltless steel 
shelving units; and
    <bullet> made-to-order shelving systems.
    Subject boltless steel shelving enters the United States through 
Harmonized Tariff Schedule of the United States (HTSUS) statistical 
subheading 9403.20.0075. While the HTSUS subheading is provided for 
convenience and customs purposes, the written description of the 
scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Application of Facts Available and Use of Adverse Inference
VII. Discussion of the Methodology
VIII. Currency Conversion
IX. Recommendation

[FR Doc. 2023-26232 Filed 11-28-23; 8:45 am]
BILLING CODE 3510-DS-P