2023-23269. Drawn Stainless Steel Sinks From the People's Republic of China: Final Results of the Expedited Second Sunset Review of the Countervailing Duty Order

AGENCY:

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

SUMMARY:

As a result of this expedited sunset review, the U.S. Department of Commerce (Commerce) finds that revocation of the countervailing duty (CVD) order on drawn stainless steel sinks from the People's Republic of China (China) would be likely to lead to the continuation or recurrence of countervailable subsidies at the levels indicated in the “Final Results of Sunset Review” section of this notice.

DATES:

Applicable October 20, 2023.

FOR FURTHER INFORMATION CONTACT:

Sean Grossnickle, AD/CVD Operations, Office II, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: [phone].

SUPPLEMENTARY INFORMATION:

Background

On April 11, 2013, Commerce published in the Federal Register the CVD order on drawn stainless steel sinks from China.^[1] On July 3, 2023, Commerce published in the Federal Register the Initiation Notice of the second five-year sunset review of the Order pursuant to section 751(c) of the Tariff Act of 1930, as amended (Act).^[2] In accordance with 19 CFR 351.218(d)(1)(i) and (ii), Commerce received a timely notice of intent to participate in this sunset review from Elkay Manufacturing Company (Elkay), the domestic interested party, within 15 days after the date of publication of the Initiation Notice.^[3] Elkay claimed interested party status under section 771(9)(C) of the Act as a producer of domestic like product in the United States.

Commerce received an adequate substantive response to the Initiation Notice from Elkay within the 30-day period specified in 19 CFR 351.218(d)(3)(i).^[4] Commerce received no substantive responses from any other interested parties, including the Government of China, with respect to the order covered by this sunset review.

On August 22, 2023, Commerce notified the U.S. International Trade Commission (ITC) that it did not receive an adequate substantive response from other interested parties.^[5] As a result, pursuant to 751(c)(3)(B) of the Act and 19 CFR 351.218(e)(1)(ii)(C)(2), Commerce conducted an expedited, i.e., 120-day, sunset review of the Order.

Scope of the Order

The merchandise covered by the Order includes drawn stainless steel sinks with single or multiple drawn bowls, with or without drain boards, whether finished or unfinished, regardless of type of finish, gauge, or grade of stainless steel. Mounting clips, fasteners, seals, and sound-deadening pads are also covered by the scope of this Order if they are included within the sales price of the drawn stainless steel sinks.^[6] Drawn stainless steel sinks are covered by the scope of the order whether or not they are sold in conjunction with non-subject accessories such as faucets (whether attached or unattached), strainers, strainer sets, rinsing baskets, bottom grids, or other accessories.

The products covered by this order are currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under statistical reporting number 7324.10.0000 and 7324.10.0010. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of the order is dispositive. A full description of the scope of the Order is contained in the Issues and Decision Memorandum.^[7]

Analysis of Comments Received

All issues raised in this sunset review are addressed in the Issues and Decision Memorandum. A list of topics discussed in the Issues and Decision Memorandum is included as an appendix to this notice. The Issues and 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 Issues and Decision Memorandum can be accessed directly at https://access.trade.gov/​public/​FRNoticesListLayout.aspx.

Final Results of Sunset Review

Pursuant to sections 751(c)(1) and 752(b) of the Act, Commerce determines that revocation of the Order would be likely to lead to the continuation or recurrence of a countervailable subsidy at the rates listed below: ^[8]

Exporter/producer	Subsidy rate (percent ad valorem)
Guangdong Yingao Kitche Utensils Co., Ltd. and Forshan Magang Kitchen Utensils Co., Ltd	4.90
Zhongshan Superte Kitchenware Co., Ltd	12.31
Foshan Zhaoshun Trae Co., Ltd	12.36
All Others	8.61

Administrative Protective Order

This notice also serves as the only reminder to parties subject to administrative protective order (APO) of their responsibility concerning the return or destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305. Timely notification of the return or destruction of APO materials or conversion to judicial protective orders is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction.

Notification to Interested Parties

We are issuing and publishing the final results and this notice in accordance with sections 751(c), 752(b), and 777(i)(1) of the Act and 19 CFR 351.218.

Dated: October 13, 2023.

Lisa W. Wang,

Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary

II. Background

III. Scope of the Order

IV. History of the Order

V. Legal Framework

VI. Discussion of the Issues

1. Likelihood of Continuation or Recurrence of a Countervailable Subsidy

2. Net Countervailable Subsidy Likely to Prevail

3. Nature of the Subsidy

VII. Final Results of Sunset Review

VIII. Recommendation

Footnotes

1.   See Drawn Stainless Steel Sinks from the People's Republic of China: Countervailing Duty Order,78 FR 21596 (April 11, 2013) ( Order).

2.   See Initiation of Five-Year (Sunset) Reviews,88 FR 42688 (July 3, 2023) ( Initiation Notice).

3.   See Elkay's Letter, “Second Five-Year (`Sunset') Review of Countervailing Duty Order on Drawn Stainless Steel Sinks from the People's Republic of China/Elkay Manufacturing Company's Notice of Intent to Participate,” dated July 17, 2023.

4.   See Elkay's Letter, “Second Five-Year (`Sunset') Review of the Countervailing Duty Order on Drawn Stainless Steel Sinks from the People's Republic of China/Substantive Response to the Notice of Initiation,” dated August 2, 2023.

5.   See Commerce's Letter, “Sunset Reviews Initiated July 3, 2023,” dated August 22, 2023.

6.  Mounting clips, fasteners, seals, and sound-deadening pads are not covered by the scope of this order if they are not included within the sales price of the drawn stainless steel sinks, regardless of whether they are shipped with or entered.

7.   See Memorandum, “Issues and Decision Memorandum for the Final Results of the Expedited Second Sunset Review of the Countervailing Duty Order on Drawn Stainless Steel Sinks from the People's Republic of China,” dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum).

8.   See Order, 70 FR at 21596–97.