[Federal Register Volume 74, Number 142 (Monday, July 27, 2009)]
[Notices]
[Pages 37012-37014]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-17867]


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DEPARTMENT OF COMMERCE

International Trade Administration

(C-570-942)


Certain Kitchen Shelving and Racks from the People's Republic of 
China: Final Affirmative Countervailing Duty Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (the ``Department'') has determined 
that countervailable subsidies are being provided to producers and 
exporters of kitchen shelving and racks from the People's Republic of 
China (``PRC''). For information on the estimated countervailing duty 
rates, please see the ``Suspension of Liquidation'' section, below.

EFFECTIVE DATE: July 27, 2009.

FOR FURTHER INFORMATION CONTACT: Shane Subler or Scott Holland, AD/CVD 
Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue, NW, Washington, DC 20230; telephone: (202) 482-
0189 or (202) 482-1279, respectively.

SUPPLEMENTARY INFORMATION:

Petitioner

    Petitioners in this investigation are Nashville Wire Products., 
Inc., SSW Holding Company, Inc., United Steel, Paper and Forestry, 
Rubber, Manufacturing, Energy, Allied-Industrial and Service Workers 
International Union, and the International Association of Machinists 
and Aerospace Workers, District Lodge 6 (Clinton, IA) (collectively, 
``Petitioners'').

Period of Investigation

    The period for which we are measuring subsidies, or period of 
investigation, is January 1, 2007, through December 31, 2007.

Case History

    The following events have occurred since the announcement of the 
preliminary determination published in the Federal Register on January 
7, 2009. See Certain Kitchen Appliance Shelving and Racks From the 
People's Republic of China: Preliminary Affirmative Countervailing Duty 
Determination and Alignment of Final Countervailing Duty Determination 
With Final Antidumping Duty Determination, 74 FR 683 (January 7, 2009) 
(``Preliminary Determination'').
    The Department issued the third and fourth supplemental 
questionnaires to respondent Guangdong Wire King Housewares and 
Hardware Co., Ltd. (``Wire King'') on December 29, 2008 and March 17, 
2009, respectively. We received responses from Wire King to the third 
supplemental questionnaire on January 22, 2009, and to the fourth 
supplemental questionnaire on April 3, 2009. The Department also issued 
second, third, and fourth supplemental questionnaires to the Government 
of the PRC (``GOC'') on February 11, 2009, March 19, 2009, and March 
25, 2009, respectively. We received responses from GOC to the second 
supplemental questionnaire on March 11, 2009, and to the third and 
fourth supplemental questionnaires on April 9, 2009.
    The GOC, Wire King, Petitioners, and interested parties also 
submitted factual information, comments, and arguments at numerous 
instances prior to the final determination based on various deadlines 
for submissions of factual information and/or arguments established by 
the Department subsequent to the Preliminary Determination.
    From May 5, 2009 to May 28, 2009, we conducted verification of the 
questionnaire responses submitted by GOC and Wire King. See Memorandum 
from Shane Subler and Scott Holland, International Trade Compliance 
Analysts, to Susan H. Kuhbach, Office Director, AD/CVD Operations, 
Office 1, entitled ``Verification Report: Guangdong Wireking Housewares 
and Hardware Co., Ltd.'' (June 19, 2009); and Memorandum from The 
Verification Team to Susan H. Kuhbach, Office Director, AD/CVD 
Operations, Office 1, entitled ``Verification Report of the Foshan 
Municipal Government, Shunde District Government and the Guangdong 
Provincial Government of the People's Republic of China'' (June 19, 
2009) (``Verification Report'').
    On May 8, 2009, we issued our post-preliminary analysis regarding 
the provision of electricity for less than adequate remuneration 
(``LTAR''). We addressed our preliminary findings in a May 8, 2009, 
memorandum to Ronald K. Lorentzen, Acting Assistant Secretary for 
Import Administration, entitled ``Preliminary Findings Regarding 
Electricity Pricing in China: Kitchen Appliance Shelving and Racks from 
the

[[Page 37013]]

People's Republic of China,'' which is on file in the Central Records 
Unit.
    We received case briefs from the GOC, Wire King, and Petitioners on 
June 26, 2009. The same parties submitted rebuttal briefs on July 1, 
2009. A public hearing was not requested.

Scope of the Investigation

    The scope of this investigation consists of shelving and racks for 
refrigerators, freezers, combined refrigerator-freezers, other 
refrigerating or freezing equipment, cooking stoves, ranges, and ovens 
(``certain kitchen appliance shelving and racks'' or ``the subject 
merchandise''). Certain kitchen appliance shelving and racks are 
defined as shelving, baskets, racks (with or without extension slides, 
which are carbon or stainless steel hardware devices that are connected 
to shelving, baskets, or racks to enable sliding), side racks (which 
are welded wire support structures for oven racks that attach to the 
interior walls of an oven cavity that does not include support ribs as 
a design feature), and subframes (which are welded wire support 
structures that interface with formed support ribs inside an oven 
cavity to support oven rack assemblies utilizing extension slides) with 
the following dimensions:
    <bullet> Shelving and racks with dimensions ranging from 3 inches 
by 5 inches by 0.10 inch to 28 inches by 34 inches by 6 inches; or
    <bullet> Baskets with dimensions ranging from 2 inches by 4 inches 
by 3 inches to 28 inches by 34 inches by 16 inches; or
    <bullet> Side racks from 6 inches by 8 inches by 0.10 inch to 16 
inches by 30 inches by 4 inches; or
    <bullet> Subframes from 6 inches by 10 inches by 0.10 inch to 28 
inches by 34 inches by 6 inches.
    The subject merchandise is comprised of carbon or stainless steel 
wire ranging in thickness from 0.050 inch to 0.500 inch and may include 
sheet metal of either carbon or stainless steel ranging in thickness 
from 0.020 inch to 0.20 inch. The subject merchandise may be coated or 
uncoated and may be formed and/or welded. Excluded from the scope of 
this investigation is shelving in which the support surface is glass.
    The merchandise subject to this investigation is currently 
classifiable in the Harmonized Tariff Schedule of the United States 
(``HTSUS'') statistical reporting numbers 8418.99.80.50, 7321.90.50.00, 
7321.90.60.90, 8418.99.80.60, and 8516.90.80.00. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the scope of this investigation is dispositive.

Scope Comments

    Since the Preliminary Determination, the Department added an 
additional HTSUS number to the scope of the investigation. On January 
29, 2009, we added other refrigerator parts, HTSUS number 8418.99.80.60 
to the scope of the investigation. See Memorandum to the File, dated 
January 29, 2009.

Injury Test

    Because the PRC is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Tariff Act of 1930, as amended (the 
``Act''), section 701(a)(2) of the Act applies to this investigation. 
Accordingly, the ITC must determine whether imports of the subject 
merchandise from the PRC materially injure, or threaten material injury 
to a U.S. industry. On September 24, 2008, the U.S. International Trade 
Commission (``ITC'') issued its affirmative preliminary determination 
that there is a reasonable indication that an industry in the United 
States is materially injured by reason of allegedly subsidized imports 
of certain kitchen appliance shelving and racks from the PRC. See 
Certain Kitchen Appliance Shelving and Racks From China, 73 FR 55132 
(September 24, 2008); and Certain Kitchen Appliance Shelving and Racks 
from China (Preliminary), USITC Pub. 4035, Inv. Nos. 701-TA-458 and 
731-TA-1154 (Sept. 2008).

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the Memorandum from John M. 
Andersen, Acting Deputy Assistant Secretary for Antidumping and 
Countervailing Duty Operations, to Ronald K. Lorentzen, Acting 
Assistant Secretary for Import Administration, entitled ``Issues and 
Decision Memorandum for the Final Determination in the Countervailing 
Duty Investigation of Certain Kitchen Appliance Shelving and Racks from 
the People's Republic of China'' (July 20, 2009) (hereafter ``Decision 
Memorandum''), which is hereby adopted by this notice. Attached to this 
notice as an Appendix is a list of the issues that parties have raised 
and to which we have responded in the Decision Memorandum. Parties can 
find a complete discussion of all issues raised in this investigation 
and the corresponding recommendations in this public memorandum, which 
is on file in the CRU. In addition, a complete version of the Decision 
Memorandum can be accessed directly on the Internet at http://ia.ita.doc.gov/frn/. The paper copy and electronic version of the 
Decision Memorandum are identical in content.

Use of Adverse Facts Available

    For purposes of this final determination, we have continued to rely 
on facts available and have continued to use adverse inferences in 
accordance with sections 776(a) and (b) of the Act to determine the 
countervailable subsidy rates for Asber Enterprise Co. (``Asber''), 
which is one of the two companies selected to respond to our 
questionnaires. A full discussion of our decision to apply adverse 
facts available is presented in the Decision Memorandum in the section 
``Use of Facts Otherwise Available and Adverse Facts Available.''
    In a departure from the Preliminary Determination, the Department 
now finds that the use of ``facts otherwise available'' is warranted 
with regard to provision of electricity for LTAR because the Department 
was not able to verify, inter alia, the GOC's questionnaire responses 
regarding the process for setting electricity rates and the relation of 
those rates to the electricity generation costs. See Decision 
Memorandum, at ``Use of Facts Otherwise Available and Adverse Facts 
Available''. Moreover, the GOC failed to cooperate to the best of its 
ability because it failed to provide requested documents, provided 
inconsistent responses regarding the availability of the documents, and 
because it did not disclose in its questionnaire responses that the 
electricity price adjustment process started from a National 
Development and Reform Commission-determined national price adjustment. 
In misrepresenting this information, the GOC did not provide the 
Department with full and complete answers. See Verification Report at 
2-9. Accordingly, we find that an adverse inference is warranted, 
pursuant to section 776(b) of the Act. Specifically, we find that the 
GOC's provision of electricity constitutes a financial contribution 
within the meaning of section 771(5)(D) of the Act and is specific 
within the meaning of section 771(5A)(D)(iv) of the Act. We have also 
relied on an adverse inference in selecting a benchmark for determining 
the existence and amount of the benefit.

Suspension of Liquidation

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, we have 
calculated individual rates for Wire King and Asber. Section 
705(c)(5)(A)(i) of the Act states that for companies not investigated, 
we will determine an ``all others'' rate equal to the weighted-average 
countervailable subsidy rates

[[Page 37014]]

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.

------------------------------------------------------------------------
                Exporter/Manufacturer                  Net Subsidy Rate
------------------------------------------------------------------------
Guangdong Wire King Co., Ltd. (formerly known as                   13.30
 Foshan Shunde Wireking Housewares & Hardware)......
Asber Enterprises Co., Ltd. (China).................              170.82
Changzhou Yixiong Metal Products Co., Ltd...........              149.91
Foshan Winleader Metal Products Co., Ltd............              149.91
Kingsun Enterprises Group Co, Ltd...................              149.91
Yuyao Hanjun Metal Work Co./Yuyao Hanjun Metal                    149.91
 Products Co., Ltd..................................
Zhongshan Iwatani Co., Ltd..........................              149.91
All-Others..........................................               13.30
------------------------------------------------------------------------

    Also, in accordance with section 703(d) of the Act, we instructed 
U.S. Customs and Border Protection to discontinue the suspension of 
liquidation for countervailing duty purposes for subject merchandise 
entered on or after May 7, 2009, but to continue the suspension of 
liquidation of entries made from January 7, 2009, through May 6, 2009.
    We will issue a countervailing duty order if the ITC issues a final 
affirmative injury determination, and will require a cash deposit of 
estimated countervailing duties for such entries of merchandise in the 
amounts indicated above. If the ITC determines that material injury, or 
threat of material injury, does not exist, this proceeding will be 
terminated and all estimated duties deposited or securities posted as a 
result of the suspension of liquidation will be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an APO, without the written consent of the Assistant Secretary 
for Import Administration.

Return or Destruction of Proprietary Information

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an administrative protective order (``APO'') of their 
responsibility concerning the destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
written notification of the return/destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a violation which is 
subject to sanction.
    This determination is published pursuant to sections 705(d) and 
777(i) of the Act.

    Dated: July 20, 2009.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

APPENDIX

List of Comments and Issues in the Decision Memorandum

General Issues

Comment 1 Application of CVD Law to a Country the Department treats as 
an NME in a Parallel AD Investigation
Comment 2 Double Counting/Overlapping Remedies
Comment 3 Proposed Cutoff Date for Identifying Subsidies

Program Specific Issues

Comment 4 Certain Wire Rod Suppliers as Authorities
Comment 5 Wire Rod Provided by Private Suppliers
Comment 6 Wire Rod Provided by Trading Companies
Comment 7 Application of Adverse Facts Available for Wire Rod 
Production Data
Comment 8 Benchmarks for Wire Rod
Comment 9 Adding the Cost of Insurance to the Wire Rod Benchmark Value
Comment 10 Tying the Wire Rod Subsidy
Comment 11 Provision of Electricity for LTAR
Comment 12 FIE Tax Programs - Whether FIE Tax Programs are Specific
[FR Doc. E9-17867 Filed 7-24-09; 8:45 am]
BILLING CODE 3510-DS-S