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 Department of Commerce International Trade Administration [C-489-854]
 AGENCY: Enforcement and Compliance, International Trade Administration, Department of Commerce.
 SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily determines that countervailable subsidies are being provided to producers and exporters of certain brake drums (brake drums) from the Republic of Türkiye (Türkiye). The period of investigation is January 1, 2023, through December 31, 2023. Interested parties are invited to comment on this preliminary determination.
 DATES: Applicable December 3, 2024.
 FOR FURTHER INFORMATION CONTACT: Charles Doss or Samuel Brummitt, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-4474 or (202) 482-7851, respectively.


SUPPLEMENTARY INFORMATION: Background This preliminary determination is made in accordance with section 703(b) of the Tariff Act of 1930, as amended (the Act). Commerce published the notice of initiation of this countervailing duty (CVD) investigation on July 17, 2024.[1]
                    
                     On July 22, 2024, Commerce tolled certain deadlines in this administrative proceeding by seven 
                    ( print page 95741)
                    days.[2]
                    
                     On September 6, 2024, Commerce postponed the preliminary determination of this investigation until November 25, 2024.[3] For a complete description of the events that followed the initiation of this investigation, 
                    *see*
                     the Preliminary Decision Memorandum.[4]
                    
                     A list of topics discussed in the Preliminary Decision Memorandum is included as Appendix II to this notice. The Preliminary Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance's Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at 
                    *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.* Scope of the Investigation The products covered by this investigation are brake drums from Türkiye. For a complete description of the scope of this investigation, 
                    *see*
                     Appendix I. Scope Comments In accordance with the 
                    *Preamble*
                     to Commerce's regulations,[5]
                    
                     the 
                    *Initiation Notice*
                     set aside a period of time for parties to raise issues regarding product coverage, (
                    *i.e.,*
                     scope).[6]
                    
                     Certain interested parties commented on the scope of the investigation as it appeared in the 
                    *Initiation Notice.*
                     Commerce intends to issue its preliminary decision regarding comments concerning the scope of the antidumping (AD) and CVD investigations in the preliminary determinations of the companion AD investigations. We will incorporate the scope decisions from the AD investigations into the scope of the final CVD determination for this investigation after considering any relevant comments submitted in scope case and rebuttal briefs.[7] Methodology Commerce is conducting this investigation in accordance with section 701 of the Act. For each of the subsidy programs found countervailable, Commerce preliminarily determines that there is a subsidy, 
                    *i.e.,*
                     a financial contribution by an “authority” that gives rise to a benefit to the recipient, and that the subsidy is specific.[8]
                    
                     For a full description of the methodology underlying our preliminarily determination, 
                    *see*
                     the Preliminary Decision Memorandum. Commerce notes that, in making its findings, it relied, in part, on facts available and, because it finds that one or more entities did not act to the best of their ability to respond to Commerce's requests for information, it drew an adverse inference where appropriate in selecting from among the facts otherwise available.[9]
                    
                     For further information, 
                    *see*
                     the “Use of Facts Otherwise Available and Adverse Inferences” section in the Preliminary Decision Memorandum. Alignment As noted in the Preliminary Decision Memorandum, in accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is aligning the final CVD determination in this investigation with the final determination in the concurrent AD investigation of brake drums from Türkiye based on a request made by the petitioner.[10]
                    
                     Consequently, the final CVD determination will be issued on the same date as the final AD determination, which is currently scheduled to be issued no later than April 8, 2025 unless postponed.[11] All-Others Rate Sections 703(d) and 705(c)(5)(A) of the Act provide that in the preliminary determination, Commerce shall determine an estimated all-others rate for companies not individually examined. Section 705(c)(5)(A)(i) of the Act states that for companies not individually investigated, Commerce will determine an “all-others” rate equal to the weighted average countervailable subsidy rates established for exporters and producers individually investigated, excluding any zero and 
                    *de minimis*
                     countervailable subsidy rates, and any rates determined entirely under section 776 of the Act. If the rates established for all exporters and producers individually investigated are zero, 
                    *de minimis,*
                     or determined entirely under facts available, Commerce may use any reasonable method to establish an all-others rate.[12] In this investigation, Commerce preliminarily calculated an individual countervailable subsidy rate for EKU Fren ve Dok. San. A.S. (EKU) that is 
                    *de minimis.*
                     Further, Commerce has preliminarily determined Akkus Dokum San.Ve Tic.Ltd.Sti's, Buyuk Eker Bijon Sanayi Ve Ticaret's, and Genk Otomotiv San.Dis Tic.Ltd.Sti.'s rates entirely under facts available with an adverse inference pursuant to section 776 of the Act. Therefore, in accordance with section 705(c)(5)(A)(ii) of the Act, we are preliminarily applying a simple average of the subsidy rates calculated for Akkus Dokum San.Ve Tic.Ltd.Sti, Buyuk Eker Bijon Sanayi Ve Ticaret, Genk Otomotiv San.Dis Tic.Ltd.Sti., and EKU as the all-others rate.[13] Preliminary Determination Commerce preliminarily determines that the following estimated countervailable subsidy rates exist: Company
Subsidy rate
                             (percent 
                             
                                *ad valorem*)EKU Fren ve Dok. San. A.S
0.89 (
                            *de minimis*).Akkus Dokum San.Ve Tic.Ltd.Sti
131.39*.Buyuk Eker Bijon Sanayi Ve Ticaret
131.39*.( print page 95742)Genk Otomotiv San.Dis Tic.Ltd.Sti
131.39*.All Others
98.77.* Rate based on facts available with adverse inferences.
 Disclosure Commerce intends to disclose its calculations and analysis performed to interested parties in this preliminary determination within five days of its public announcement, or if there is no public announcement, within five days of the date of this notice in accordance with 19 CFR 351.224(b). Consistent with 19 CFR 351.224(e), Commerce will analyze and, if appropriate, correct any timely allegations of significant ministerial errors by amending the preliminary determination. However, consistent with 19 CFR 351.224(d), Commerce will not consider incomplete allegations that do not address the significance standard under 19 CFR 351.224(g) following the preliminary determination. Instead, Commerce will address such allegations in the final determination together with issues raised in the case briefs or other written comments. Suspension of Liquidation With the exception of entries from EKU, in accordance with sections 703(d)(1)(B) and (d)(2) of the Act, Commerce will direct U.S. Customs and Border Protection (CBP) to suspend liquidation of entries of subject merchandise as described in Appendix I entered, or withdrawn from warehouse, for consumption on or after the date of the publication of this notice in the 
                    **Federal Register**
                    . Further, pursuant to 19 CFR 351.205(d), Commerce will instruct CBP to require a cash deposit equal to the rates indicated above. Because we preliminarily determine that the CVD rate in this investigation for EKU is 
                    *de minimis,*
                     we will not direct CBP to suspend liquidation of entries of the subject merchandise from Türikye produced and exported by EKU. 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 All interested parties will have the opportunity to submit scope case and rebuttal briefs on the preliminary decision regarding the scope of the AD and CVD investigations. The deadlines to submit scope case and rebuttal briefs will be provided in the preliminary scope decision memorandum. For all scope case and rebuttal briefs, parties must file identical documents simultaneously on the records of the ongoing AD and CVD brake drums investigations. No new factual information or business proprietary information may be included in either scope case or rebuttal briefs. Case briefs or other written comments on non-scope issues 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 the case briefs, may be filed not later than five days after the date for filing case briefs.[14]
                    
                     Interested parties who submit case briefs or rebuttal briefs in this proceeding must submit: (1) a table of contents listing each issue; and (2) a table of authorities.[15] 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.[16]
                    
                     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).[17] 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. All submissions, including case and rebuttal briefs, as well as hearing requests, should be filed using ACCESS. An electronically-filed document must be received successfully in its entirety by ACCESS by 5:00 p.m. Eastern Time on the established deadline. U.S. International Trade Commission Notification In accordance with section 703(f) of the Act, Commerce will notify the U.S. International Trade Commission (ITC) of its determination. If the final determination is affirmative, the ITC will determine before the later of 120 days after the date of this preliminary determination or 45 days after the final determination whether imports of brake drums from Türkiye are materially injuring, or threaten material injury to, the U.S. industry. Notification to Interested Parties This determination is issued and published pursuant to sections 703(f) and 777(i) of the Act and 19 CFR 351.205(c). Dated: November 25, 2024. Abdelali Elouaradia, Deputy Assistant Secretary for Enforcement and Compliance.
 Appendix I—Scope of the Investigation The merchandise covered by this investigation is certain brake drums made of 
                        ( print page 95743)
                        gray cast iron, whether finished or unfinished, with an actual or nominal inside diameter of 14.75 inches or more but not over 16.6 inches, weighing more than 50 pounds. Unfinished brake drums are those which have undergone some turning or machining but are not ready for installation. Subject brake drums are included within the scope whether imported individually or with non-subject merchandise (for example, a hub), whether assembled or unassembled, or if joined with non-subject merchandise. When a subject drum is imported together with non-subject merchandise, such as, but not limited to, a drum-hub assembly, only the subject drum is covered by the scope. Subject merchandise also includes finished and unfinished brake drums that are further processed in a third country or in the United States, including, but not limited to, assembly or any other processing that would not otherwise remove the merchandise from the scope of this investigation if performed in the country of manufacture of the subject brake drums. The inclusion, attachment, joining, or assembly of non-subject merchandise with subject drums either in the country of manufacture of the subject drum or in a third country does not remove the subject drum from the scope. Specifically excluded is merchandise covered by the scope of the antidumping and countervailing duty orders on certain chassis and subassemblies thereof from the People's Republic of China. 
                        *See Certain Chassis and Subassemblies Thereof from the People's Republic of China: Antidumping Duty Order,*86 FR 36093 (July 8, 2021) and 
                        *Certain Chassis and Subassemblies Thereof From the People's Republic of China: Countervailing Duty Order and Amended Final Affirmative Countervailing Duty Determination,*86 FR 24844 (May 10, 2021). The scope also excludes composite brake drums that contain more than 40 percent steel by weight. The merchandise covered by this investigation is classifiable under Harmonized Tariff Schedule of the United States (HTSUS) subheading 8708.30.5020. The merchandise covered by this investigation may be classifiable under HTSUS subheading 8708.30.5090 when entered as part of an assembly. Subject merchandise may also enter under HTSUS subheading 8716.90.5060. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise covered by this investigation is dispositive. Appendix II—List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Diversification of Türkiye's Economy IV. Injury Test V. Subsidies Valuation VI. Benchmarks Interest Rates and Discount Rates VII. Use of Facts Otherwise Available and Adverse Inferences VIII. Analysis of Programs IX. Calculation of the All-Others Rate X. Recommendation


# Footnotes

1.
    
                         
                        *See Certain Brake Drums from the People's Republic of China and the Republic of Türkiye: Initiation of Countervailing Duty Investigations,*89 FR 58106 (July 17, 2024) (
                        *Initiation Notice*). Back to Citation
 2.
    
                         
                        *See*
                         Memorandum, “Tolling of Deadlines for Antidumping and Countervailing Duty Proceedings,” dated July 22, 2024. Back to Citation
 3.
    
                         
                        *See Certain Brake Drums from the People's Republic of China and the Republic of Türkiye: Postponement of Preliminary Determinations in the Countervailing Duty Investigations,*89 FR 72827 (September 6, 2024). Back to Citation
 4.
    
                         
                        *See*
                         Memorandum, “Decision Memorandum for the Preliminary Determination of the Countervailing Duty Investigation of Certain Brake Drums from the Republic of Türkiye,” dated concurrently with, and hereby adopted by, this notice (Preliminary Decision Memorandum). Back to Citation
 5.
    
                         
                        *See Antidumping Duties; Countervailing Duties, Final Rule,*62 FR 27296, 27323 (May 19, 1997) (
                        *Preamble*). Back to Citation
 6.
    
                         
                        *See Initiation Notice,*
                         89 FR at 58106. Back to Citation
 7.
    
                         The deadline for interested parties to submit scope case and rebuttal briefs will be established in the preliminary scope decision memorandum. Back to Citation
 8.
    
                         
                        *See*
                         sections 771(5)(B) and (D) of the Act regarding financial contribution; section 771(5)(E) of the Act regarding benefit; and section 771(5A) of the Act regarding specificity. Back to Citation
 9.
    
                         
                        *See*
                         sections 776(a) and (b) of the Act. Back to Citation
 10.
    
                         
                        *See*
                         Petitioner's Letter, “Request to Align Final Antidumping and Countervailing Duty Determinations,” dated November 7, 2024. Back to Citation
 11.
    
                         
                        *See Certain Brake Drums from the Republic of Türkiye and the People's Republic of China: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations,*89 FR 91675 (November 20, 2024). Back to Citation
 12.
    
                         
                        *See*
                         sections 705(c)(5)(A)(i) and (ii) of the Act. Back to Citation
 13.
    
                         
                        *See, e.g.,**Non-Oriented Electrical Steel from Taiwan: Final Affirmative Countervailing Duty Determination,*79 FR 71602 (October 14, 2014), and accompanying Issues and Decision Memorandum at Comment 11. Back to Citation
 14.
    
                         
                        *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*). Back to Citation
 15.
    
                         
                        *See*19 CFR 351.309(c)(2) and (d)(2) Back to Citation
 16.
    
                         We use the term “issue” here to describe an argument that Commerce would normally address in a comment of the Issues and Decision Memorandum. Back to Citation
 17.
    
                         
                        *See APO and Service Final Rule.* Back to Citation


[FR Doc. 2024-28239 Filed 12-2-24; 8:45 am] BILLING CODE 3510-DS-P