[Federal Register Volume 86, Number 144 (Friday, July 30, 2021)]
[Notices]
[Pages 41013-41015]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-16332]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-140]


Certain Mobile Access Equipment and Subassemblies Thereof From 
the People's Republic of China: Preliminary Affirmative Countervailing 
Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of certain mobile access equipment and subassemblies thereof 
(mobile access equipment) from the People's Republic of China (China). 
The period of investigation is January 1, 2020, through December 31, 
2020. Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable July 30, 2021.

FOR FURTHER INFORMATION CONTACT: Theodore Pearson or Michael Romani, 
AD/CVD Operations, Office I, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-2631 or (202) 
482-0198, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
703(b) of the Trade Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on March 25, 
2021.\1\ On May 4, 2021, Commerce postponed the preliminary 
determination of this investigation, and the revised deadline is now 
July 26, 2021.\2\
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    \1\ See Certain Mobile Access Equipment and Subassemblies 
Thereof from the People's Republic of China: Initiation of 
Countervailing Duty Investigation, 86 FR 15905 (March 25, 2021) 
(Initiation Notice).
    \2\ See Certain Mobile Access Equipment and Subassemblies 
Thereof from the People's Republic of China: Postponement of 
Preliminary Determination in the Countervailing Duty Investigation, 
86 FR 23681 (May 4, 2021).
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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 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 http://access.trade.gov.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Countervailing Duty Investigation of Certain 
Mobile Access Equipment and Subassemblies Thereof from the People's 
Republic of China,'' 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 certain mobile 
access equipment from China. 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\ We received 
comments regarding the scope, which we have addressed in the 
Preliminary Scope Memorandum.\6\
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Certain Mobile Access Equipment and 
Subassemblies Thereof from the People's Republic of China: Scope 
Comments Decision Memorandum for the Preliminary Determination,'' 
dated concurrently with, and hereby adopted by, this notice 
(Preliminary Scope 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.\7\
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    \7\ 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 these findings, it relied, in part, 
on facts available and, because it finds that one or more respondents 
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.\8\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
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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. The rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
rates that are zero, de minimis, or rates based entirely under section 
776 of the Act.
    In this investigation, as discussed in the Preliminary Decision 
Memorandum, Commerce calculated individual estimated countervailable 
subsidy rates for Lingong Group Jinan Heavy Machinery Co., Ltd. (LGMG) 
and Zhejiang Dingli Machinery Co., Ltd. (Dingli) that were not zero, de 
minimis, or based entirely under section 776 of the Act. For the 
companies not individually examined,\9\ we are applying to the non-
selected companies the average of the net subsidy rates calculated for 
LGMG and Dingli, which we calculated using the publicly ranged sales 
data submitted by LGMG and Dingli.\10\ This methodology to establish 
the all-others subsidy rate is consistent with our practice and section 
705(c)(5)(A) of the Act.
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    \9\ Excluding companies determined to be non-responsive. See 
Preliminary Determination Memorandum at section ``Application of 
AFA: Non-Responsive Companies'' for details.
    \10\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (B) a simple average of the 
estimated subsidy rates calculated for the examined respondents; and 
(C) a weighted-average of the estimated subsidy rates calculated for 
the examined respondents using each company's publicly-ranged U.S. 
sale quantities for the merchandise under consideration. Commerce 
then compares (B) and (C) to (A) and selects the rate closest to (A) 
as the most appropriate rate for all other producers and exporters. 
See, e.g., Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed-Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010).
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Preliminary Determination

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

[[Page 41014]]



------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Lingong Group Jinan Heavy Machinery Co., Ltd\11\........            4.09
Zhejiang Dingli Machinery Co., Ltd\12\..................           23.43
Jinan Zhongtian International Trading \13\..............          435.06
Zhongshan Shiliwang Machinery Co., LTD \14\.............          435.06
Yantai Empire Industry and Trade \15\...................          435.06
Shandong Lede Machinery \16\............................          435.06
Shandong Huifeng Auto Fittings \17\.....................          435.06
Jinan Zhongtang Mechanical Equipment \18\...............          435.06
Lingong Group Jinan Heavy Machinery (Mobile Elevating             435.06
 Work Platforms) \19\...................................
All Others..............................................           20.47
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Suspension of Liquidation
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    \11\ Cross-owned affiliate is Linyi Lingong Machinery Group Co., 
Ltd.
    \12\ Cross-owned affiliates are Zhejiang Green Power Machinery 
Co., Ltd. and Shengda Fenghe Automotive Equipment Co., Ltd.
    \13\ See Preliminary Decision Memorandum at section 
``Application of AFA: Non-Responsive Companies.''
    \14\ Id.
    \15\ Id.
    \16\ Id.
    \17\ Id.
    \18\ Id.
    \19\ Id.
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    In accordance with section 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 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of 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.

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).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination. 
Normally, Commerce verifies information using standard procedures, 
including an on-site examination of original accounting, financial, and 
sales documentation. However, due to current travel restrictions in 
response to the global COVID-19 pandemic, Commerce may be unable to 
conduct on-site verification in this investigation. While we consider 
the possibility of conducting an on-site verification for some of the 
information submitted by the respondents, we may also need to verify 
the information relied upon in making the final determination through 
alternative means in lieu of an on-site verification. Commerce intends 
to notify parties of its verification procedures.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance. Commerce will 
notify interested parties of the deadline for the submission of case 
briefs. Rebuttal briefs, limited to issues raised in case briefs, may 
be submitted no later than seven days after the deadline date for case 
briefs.\20\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in this investigation are 
encouraged to submit with each argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of authorities.
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    \20\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements); Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020) 
(Temporary Rule); and Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19; Extension of Effective Period, 85 FR 
29615 (May 18, 2020); and Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19; Extension of Effective Period, 85 FR 
41363 (July 10, 2020).
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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 and time of 
the hearing two days before the scheduled date.
    Parties are reminded that briefs and hearing requests are to be 
filed electronically using ACCESS and that electronically filed 
documents must be received successfully in their entirety by 5 p.m. 
Eastern Time on the due date. Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\21\
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    \21\ See Temporary Rule.
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International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the 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.

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: July 26, 2021.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation consists of 
certain mobile access equipment, which consists primarily of boom 
lifts, scissor lifts, and material telehandlers, and subassemblies 
thereof. Mobile access equipment combines a mobile (self-propelled 
or towed) chassis, with a lifting device (e.g., scissor arms, boom 
assemblies) for mechanically lifting persons, tools and/or materials 
capable of reaching a working height of ten feet or more, and a 
coupler that provides an attachment point for the lifting device, in 
addition to other components. The scope of this investigation covers 
mobile access equipment and subassemblies thereof whether finished 
or

[[Page 41015]]

unfinished, whether assembled or unassembled, and whether the 
equipment contains any additional features that provide for 
functions beyond the primary lifting function.
    Subject merchandise includes, but is not limited to, the 
following subassemblies:
    <bullet> Scissor arm assemblies, or scissor arm sections, for 
connection to chassis and platform assemblies. These assemblies 
include: (1) Pin assemblies that connect sections to form scissor 
arm assemblies, and (2) actuators that power the arm assemblies to 
extend and retract. These assemblies may or may not also include 
blocks that allow sliding of end sections in relation to frame and 
platform, hydraulic hoses, electrical cables, and/or other 
components;
    <bullet> boom assemblies, or boom sections, for connection to 
the boom turntable, or to the chassis assembly, or to a platform 
assembly or to a lifting device. Boom assemblies include telescoping 
sections where the smallest section (or tube) can be nested in the 
next larger section (or tube) and can slide out for extension and/or 
articulated sections joined by pins. These assemblies may or may not 
include pins, hydraulic cylinders, hydraulic hoses, electrical 
cables, and/or other components;
    <bullet> chassis assemblies, for connection to scissor arm 
assemblies, or to boom assemblies, or to boom turntable assemblies. 
Chassis assemblies include: (1) Chassis frames, and (2) frame 
sections. Chassis assemblies may or may not include axles, wheel end 
components, steering cylinders, engine assembly, transmission, drive 
shafts, tires and wheels, crawler tracks and wheels, fuel tank, 
hydraulic oil tanks, battery assemblies, and/or other components;
    <bullet> boom turntable assemblies, for connection to chassis 
assemblies, or to boom assemblies. Boom turntable assemblies include 
turntable frames. Boom turntable assemblies may or may not include 
engine assembly, slewing rings, fuel tank, hydraulic oil tank, 
battery assemblies, counterweights, hoods (enclosures), and/or other 
components.
    Importation of any of these subassemblies, whether assembled or 
unassembled, constitutes unfinished mobile access equipment for 
purposes of this investigation.
    Processing of finished and unfinished mobile access equipment 
and subassemblies such as trimming, cutting, grinding, notching, 
punching, slitting, drilling, welding, joining, bolting, bending, 
beveling, riveting, minor fabrication, galvanizing, painting, 
coating, finishing, assembly, or any other processing either in the 
country of manufacture of the in-scope product or in a third country 
does not remove the product from the scope. Inclusion of other 
components not identified as comprising the finished or unfinished 
mobile access equipment does not remove the product from the scope.
    The scope excludes forklifts, vertical mast lifts, mobile self-
propelled cranes and motor vehicles that incorporate a scissor arm 
assembly or boom assembly. Forklifts are material handling vehicles 
with a working attachment, usually a fork, lifted along a vertical 
guide rail with the operator seated or standing on the chassis 
behind the vertical mast. Vertical mast lifts are person and 
material lifting vehicles with a working attachment, usually a 
platform, lifted along a vertical guide rail with an operator 
standing on the platform. Mobile self-propelled cranes are material 
handling vehicles with a boom attachment for lifting loads of tools 
or materials that are suspended on ropes, cables, and/or chains, and 
which contain winches mounted on or near the base of the boom with 
ropes, cables, and/or chains managed along the boom structure. The 
scope also excludes motor vehicles (defined as a vehicle driven or 
drawn by mechanical power and manufactured primarily for use on 
public streets, roads, and highways, but does not include a vehicle 
operated only on a rail line pursuant to 49 U.S.C. 30102(a)(7)) that 
incorporate a scissor arm assembly or boom assembly. The scope 
further excludes vehicles driven or drawn by mechanical power 
operated only on a rail line that incorporate a scissor arm assembly 
or boom assembly. The scope also excludes: (1) Rail line vehicles, 
defined as vehicles with hi-rail gear or track wheels, and a fixed 
(non-telescopic) main boom, which perform operations on rail lines, 
such as laying rails, setting ties, or other rail maintenance jobs; 
and (2) certain rail line vehicle subassemblies, defined as chassis 
subassemblies and boom turntable subassemblies for rail line 
vehicles with a fixed (non-telescopic) main boom.
    Certain mobile access equipment subject to this investigation is 
typically classifiable under subheadings 8427.10.8020, 8427.10.8030, 
8427.10.8070, 8427.10.8095, 8427.20.8020, 8427.20.8090, 8427.90.0020 
and 8427.90.0090 of the Harmonized Tariff Schedule of the United 
States (HTSUS). Parts of certain mobile access equipment are 
typically classifiable under subheading 8431.20.0000 of the HTSUS. 
While the HTSUS subheadings are provided for convenience and customs 
purposes only, the written description of the merchandise under 
investigation is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Injury Test
V. Scope Comments
VI. Scope of the Investigation
VII. Diversification of China's Economy
VIII. Use of Facts Otherwise Available and Application of Adverse 
Inferences
IX. Subsidies Valuation
X. Interest Rate Benchmarks, Discount Rates, Input, Electricity, and 
Land Benchmarks
XI. Analysis of Programs
XII. Recommendation

[FR Doc. 2021-16332 Filed 7-29-21; 8:45 am]
BILLING CODE 3510-DS-P