[Federal Register Volume 84, Number 210 (Wednesday, October 30, 2019)]
[Notices]
[Pages 58130-58131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23682]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-900]
Diamond Sawblades and Parts Thereof From the People's Republic of
China: Preliminary Affirmative Determination of Circumvention
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that Protech Diamond Tools Inc. (Protech) is circumventing the
antidumping duty order on diamond sawblades and parts thereof (diamond
sawblades) from the People's Republic of China (China).
DATES: Applicable October 30, 2019.
FOR FURTHER INFORMATION CONTACT: Yang Jin Chun, 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) 482-5760.
SUPPLEMENTARY INFORMATION:
Background
On May 3, 2019, in response to a request from the Diamond Sawblades
Manufacturers' Coalition (the petitioner), Commerce published the
initiation of the anti-circumvention inquiry to determine whether
certain imports of diamond sawblades comprised of cores and segments
produced in China and joined into diamond sawblades in, and exported
from, Canada by Protech are circumventing the antidumping duty order on
diamond sawblades from China.\1\
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\1\ See Diamond Sawblades and Parts Thereof from the People's
Republic of China: Initiation of Anti-Circumvention Inquiry, 84 FR
19043 (May 3, 2019) (Initiation Notice).
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Scope of the Order
The products subject to the order are diamond sawblades. The
diamond sawblades subject to the order are currently classifiable under
subheadings 8202 to 8206 of the Harmonized Tariff Schedule of the
United States (HTSUS), and may also enter under subheading 6804.21.00.
The HTSUS subheadings are provided for convenience and customs
purposes. A full description of the scope of the order is contained in
the Preliminary Decision Memorandum.\2\ The written description is
dispositive.
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\2\ See Memorandum, ``Diamond Sawblades and Parts Thereof from
the People's Republic of China: Decision Memorandum for Preliminary
Affirmative Determination of Circumvention,'' dated concurrently
with, and hereby adopted by, this notice (Preliminary Decision
Memorandum) at 2-3.
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Scope of the Anti-Circumvention Inquiry
We initiated this anti-circumvention inquiry to cover diamond
sawblades produced in Canada by Protech with cores and segments
produced in China and subsequently exported from Canada by Protech to
the United States.\3\
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\3\ See Initiation Notice, 84 FR at 19043 (``This anti-
circumvention inquiry covers diamond sawblades produced in Canada
using cores and segments of Chinese origin and exported from Canada
to the United States by Protech.'').
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Methodology
Commerce is conducting this anti-circumvention inquiry in
accordance with section 781(b) of the Tariff Act of 1930, as amended
(the Act), and 19 CFR 351.225(h). Because Protech did not respond to
our request for information, we made the affirmative preliminary
determination based on adverse facts available in accordance with
section 776(a)-(b) of the Act. For a full description of the
methodology underlying our conclusions, see the Preliminary Decision
Memorandum. The Preliminary Decision Memorandum 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 and
to all parties in the Central Records Unit, Room B8024 of the main
Commerce building. In addition, a complete version of the Preliminary
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of
the Preliminary Decision Memorandum are identical in content.
Preliminary Determination
As detailed in the Preliminary Decision Memorandum, Commerce
preliminarily determines that diamond sawblades produced by Protech in
Canada using cores and segments from China and exported from Canada by
Protech to the United States are circumventing the antidumping duty
order on diamond sawblades from China. We therefore preliminarily
determine that it is appropriate to include this merchandise within the
antidumping duty order on diamond sawblades from China and to instruct
U.S. Customs and Border Protection (CBP) to suspend entries of
merchandise produced using Chinese cores and Chinese segments by
Protech in Canada
[[Page 58131]]
and exported by Protech to the United States.
Suspension of Liquidation
As stated above, Commerce has made a preliminary affirmative
finding of circumvention of the antidumping duty order on diamond
sawblades from China for diamond sawblades assembled or completed using
Chinese cores and Chinese segments as inputs by Protech in Canada and
exported from Canada by Protech to the United States. This preliminary
determination of circumvention applies to diamond sawblades assembled
or completed using Chinese cores and Chinese segments as inputs by
Protech in Canada. In accordance with section 19 CFR 351.225(l)(2),
Commerce will direct CBP to suspend liquidation and to require a cash
deposit of estimated duties on unliquidated entries of diamond
sawblades produced (i.e., assembled or completed) using Chinese cores
and Chinese segments by Protech in Canada that were entered, or
withdrawn from warehouse, for consumption on or after April 29, 2019,
the date of initiation of this anti-circumvention inquiry. The
suspension of liquidation instructions will remain in effect until
further notice. Commerce will instruct CBP to require antidumping duty
cash deposits equal to the rate established for the China-wide entity,
i.e., 82.05 percent,\4\ for entries of such merchandise produced and
exported by Protech, given that there is no information on the record
regarding the sources of its Chinese-origin cores and segments.
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\4\ See, e.g., Diamond Sawblades and Parts Thereof from the
People's Republic of China: Final Results of Antidumping Duty
Administrative Review; 2015-2016, 83 FR 17527, 17528 (April 20,
2018).
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Diamond sawblades assembled or completed in Canada using non-
Chinese origin cores and/or non-Chinese origin segments are not subject
to this anti-circumvention inquiry. However, because Protech failed to
cooperate with Commerce's request for information, Commerce finds that
Protech is not currently able to identify diamond sawblades produced
with non-Chinese origin cores and/or non-Chinese origin segments.
Therefore, Commerce will not implement a certification process at this
preliminary stage, and Commerce will require cash deposits on all
entries of diamond sawblades produced and exported by Protech in
Canada. Commerce will reconsider Protech's eligibility to participate
in the certification process if Protech demonstrates in a future
segment of the proceeding (i.e., a changed circumstances review) that
diamond sawblades being entered into the United States that it produces
are no longer sourced from Chinese cores and/or Chinese segments.\5\ We
invite parties to comment on this issue in their case briefs.
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\5\ See Carbon Steel Butt-Weld Pipe Fittings from the People's
Republic of China: Preliminary Affirmative Determination of
Circumvention of the Antidumping Duty Order, 83 FR 35205 (July 25,
2018), and accompanying Preliminary Decision Memorandum at 15,
unchanged in Carbon Steel Butt-Weld Pipe Fittings from the People's
Republic of China: Final Affirmative Determination of Circumvention
of the Antidumping Duty Order, 84 FR 29164 (June 21, 2019).
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Public Comment
Interested parties are invited to comment on the preliminary
determination of this anti-circumvention inquiry. Pursuant to 19 CFR
351.309(b)(2), interested parties may submit case briefs not later than
30 days after the date of publication of this notice. Rebuttal briefs,
limited to issues raised in the case briefs, may be filed not later
than five days after the time limit for filing case briefs.\6\ Pursuant
to 19 CFR 351.309(c)(2) and (d)(2), parties who submit case or rebuttal
briefs in this anti-circumvention inquiry 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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\6\ See 19 CFR 351.309(d)(1)-(2).
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Any interested party who wishes to request a hearing, or to
participate if one is requested, must submit a written request to the
Assistant Secretary for Enforcement and Compliance within 30 days after
the day of publication of this notice pursuant to 19 CFR 351.310(c). A
request should contain: (1) The party's name, address, and telephone
number; (2) the number of participants; (3) whether any participant is
a foreign national; and (4) a list of issues to be discussed. If a
request for a hearing is made, then Commerce intends to hold the
hearing at the U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230, 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. Issues raised in the hearing will
be limited to those raised in case and rebuttal briefs.
International Trade Commission Notification
Consistent with section 781(e) of the Act, Commerce will notify the
International Trade Commission (ITC) of this preliminary determination
to include the merchandise subject to this anti-circumvention inquiry
within the antidumping duty order on diamond sawblades from China.
Pursuant to section 781(e) of the Act, the ITC may request
consultations concerning Commerce's proposed inclusion of the subject
merchandise. If, after consultations, the ITC believes that a
significant injury issue is presented by the proposed inclusion, it
will have 60 days from the date of notification by Commerce to provide
written advice.
Final Determination
According to section 781(f) of the Act, Commerce shall, to the
maximum extent practicable, make its anti-circumvention determination
within 300 days from the date of the initiation of the inquiry.\7\
Therefore, Commerce intends to issue the final determination in this
anti-circumvention inquiry by February 24, 2020.\8\
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\7\ See 19 CFR 351.225(f)(iii)(5) (explaining that Commerce will
issue a final anticircumvention ruling ``normally within 300 days
from the date of the initiation of the . . . inquiry'').
\8\ The statutory due date of the final determination is Sunday,
February 23, 2020. The next business day is Monday, February 24,
2020. See Notice of Clarification: Application of ``Next Business
Day'' Rule for Administrative Determination Deadlines Pursuant to
the Tariff Act of 1930, As Amended, 70 FR 24533 (May 10, 2005).
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This preliminary affirmative circumvention determination is
published in accordance with section 781(b) of the Act and 19 CFR
351.225(f).
Dated: October 23, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope of the Order
IV. Scope of the Anti-Circumvention Inquiry
V. The Period of Inquiry
VI. Statutory Framework
VII. Use of Adverse Facts Available
VIII. Statutory Analysis
IX. Other Statutory Criteria
X. Summary of Statutory Analysis
XI. Recommendation
[FR Doc. 2019-23682 Filed 10-29-19; 8:45 am]
BILLING CODE 3510-DS-P