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[Federal Register Volume 89, Number 232 (Tuesday, December 3, 2024)]
[Notices]
[Pages 95740-95743]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28239]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-489-854]

Certain Brake Drums From the Republic of T[uuml]rkiye: 
Preliminary Affirmative Countervailing Duty Determination and Alignment 
of Final Determination With Final Antidumping Duty Determination

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 T[uuml]rkiye (T[uuml]rkiye). 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

[[Page 95741]]

days.\2\ On September 6, 2024, Commerce postponed the preliminary 
determination of this investigation until November 25, 2024.\3\
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    \1\ See Certain Brake Drums from the People's Republic of China 
and the Republic of T[uuml]rkiye: Initiation of Countervailing Duty 
Investigations, 89 FR 58106 (July 17, 2024) (Initiation Notice).
    \2\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
    \3\ See Certain Brake Drums from the People's Republic of China 
and the Republic of T[uuml]rkiye: Postponement of Preliminary 
Determinations in the Countervailing Duty Investigations, 89 FR 
72827 (September 6, 2024).
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    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.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Certain 
Brake Drums from the Republic of T[uuml]rkiye,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Scope of the Investigation

    The products covered by this investigation are brake drums from 
T[uuml]rkiye. 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\
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \6\ See Initiation Notice, 89 FR at 58106.
    \7\ The deadline for interested parties to submit scope case and 
rebuttal briefs will be established in the preliminary scope 
decision memorandum.
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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.
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    \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.
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    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.
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    \9\ See sections 776(a) and (b) of the Act.
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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 T[uuml]rkiye 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\
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    \10\ See Petitioner's Letter, ``Request to Align Final 
Antidumping and Countervailing Duty Determinations,'' dated November 
7, 2024.
    \11\ See Certain Brake Drums from the Republic of T[uuml]rkiye 
and the People's Republic of China: Postponement of Preliminary 
Determinations in the Less-Than-Fair-Value Investigations, 89 FR 
91675 (November 20, 2024).
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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\
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    \12\ See sections 705(c)(5)(A)(i) and (ii) of the Act.
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    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\
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    \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.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
               Company                 Subsidy rate (percent ad valorem)
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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*.

[[Page 95742]]

 
Genk Otomotiv San.Dis Tic.Ltd.Sti....  131.39*.
All Others...........................  98.77.
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* 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 T[uuml]rikye 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\
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    \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).
    \15\ See 19 CFR 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.\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\
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    \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.
    \17\ 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. 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 T[uuml]rkiye 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

[[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 T[uuml]rkiye'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

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