Steel Racks and Parts Thereof, From the People's Republic of China: Continuation of Antidumping and Countervailing Duty Orders

<NOTICE> DEPARTMENT OF COMMERCE <SUBAGY>International Trade Administration</SUBAGY> <DEPDOC>[A-570-088, C-570-089]</DEPDOC> <SUBJECT>Steel Racks and Parts Thereof, From the People's Republic of China: Continuation of Antidumping and Countervailing Duty Orders</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Enforcement and Compliance, International Trade Administration, Department of Commerce. <SUM> <HD SOURCE="HED">SUMMARY:</HD> As a result of the determinations by the U.S. Department of Commerce (Commerce) and the U.S. International Trade Commission (ITC) that revocation of the antidumping duty (AD) and countervailing duty (CVD) orders on certain steel racks and parts thereof (steel racks) from the People's Republic of China (China) would likely lead to the continuation or recurrence of dumping and countervailable subsidies, and material injury to an industry in the United States, Commerce is publishing a notice of continuation of these AD and CVD orders. </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> Applicable March 5, 2025. </DATES> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Angelo Gonzalez, AD/CVD Operations, Office IV, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-5521. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Background</HD> On September 16, 2019, Commerce published in the <E T="04">Federal Register</E> the AD and CVD orders on steel racks from China. <SU>1</SU> <FTREF/> On August 1, 2024, the ITC instituted, <SU>2</SU> <FTREF/> and Commerce initiated, pursuant to section 751(c) of the Tariff Act of 1930, as amended (the Act). As a result of its reviews, Commerce determined that revocation of the <E T="03">Orders</E> would likely lead to the continuation or recurrence of dumping and countervailable subsidies, and therefore, notified the ITC of the magnitude of the margins of dumping and subsidy rates likely to prevail should the <E T="03">Orders</E> be revoked. <SU>4</SU> <FTREF/> <FTNT> <SU>1</SU>   <E T="03">See Certain Steel Racks and Parts Thereof, from the People's Republic of China: Amended Final Affirmative Antidumping Duty Determination and Antidumping Duty Order; Countervailing Duty Order,</E> 84 FR 48584 (September 16, 2019) ( <E T="03">Orders</E> ). </FTNT> <FTNT> <SU>2</SU>   <E T="03">See Steel Racks from China; Institution of Five-Year Reviews,</E> 89 FR 62779 (August 1, 2024). </FTNT> <FTNT> <SU>3</SU>   <E T="03">See Initiation of Five-Year (Sunset) Reviews,</E> 89 FR 62717 (August 1, 2024). </FTNT> <FTNT> <SU>4</SU>   <E T="03">See Certain Steel Racks and Parts Thereof from the People's Republic of China: Final Results of the Expedited First Sunset Review of the Antidumping Duty Order,</E> 89 FR 96947 (December 6, 2024); <E T="03">see also Steel Racks and Parts Thereof, from the People's Republic of China: Final Results of the Expedited Sunset Review of the Countervailing Duty Order,</E> 89 FR 96945 (December 6, 2024). </FTNT> On March 5, 2025, the ITC published its determination, pursuant to sections 751(c) and 752(a) of the Act, that revocation of the <E T="03">Orders</E> would likely lead to continuation or recurrence of material injury to an industry in the United States within a reasonably foreseeable time. <SU>5</SU> <FTREF/> <FTNT> <SU>5</SU>   <E T="03">See Steel Racks from China,</E> 90 FR 11328 (March 5, 2025) ( <E T="03">ITC Final Determination</E> ). </FTNT> <HD SOURCE="HD1">Scope of the Orders</HD> The merchandise covered by these <E T="03">Orders</E> is steel racks and parts thereof, assembled, to any extent, or unassembled, including but not limited to, vertical components ( <E T="03">e.g.,</E> uprights, posts, or columns), horizontal or diagonal components ( <E T="03">e.g.,</E> arms or beams), braces, frames, locking devices ( <E T="03">e.g.,</E> end plates and beam connectors), and accessories (including, but not limited to, rails, skid channels, skid rails, drum/coil beds, fork clearance bars, pallet supports, row spacers, and wall ties). Subject steel racks and parts thereof are made of steel, including, but not limited to, cold and/or hot-formed steel, regardless of the type of steel used to produce the components and may, or may not, include locking tabs, slots, or bolted, clamped, or welded connections. Subject steel racks have the following physical characteristics: (1) Each steel vertical and horizontal load bearing member ( <E T="03">e.g.,</E> arms, beams, posts, and columns) is composed of steel that is at least 0.044 inches thick; (2) Each steel vertical and horizontal load bearing member ( <E T="03">e.g.,</E> arms, beams, posts, and columns) is composed of steel that has a yield strength equal to or greater than 36,000 pounds per square inch; (3) The width of each steel vertical load bearing member ( <E T="03">e.g.,</E> posts and columns) exceeds two inches; and (4) The overall depth of each steel roll-formed horizontal load bearing member ( <E T="03">e.g.,</E> beams) exceeds two inches. In the case of steel horizontal load bearing members other than roll-formed ( <E T="03">e.g.,</E> structural beams, Z-beams, or cantilever arms), only the criteria in subparagraphs (1) and (2) apply to these horizontal load bearing members. The depth limitation in subparagraph (4) does not apply to steel horizontal load bearing members that are not roll-formed. Steel rack components can be assembled into structures of various dimensions and configurations by welding, bolting, clipping, or with the use of devices such as clips, end plates, and beam connectors, including, but not limited to the following configurations: (1) Racks with upright frames perpendicular to the aisles that are independently adjustable, with positive-locking beams parallel to the aisle spanning the upright frames with braces; and (2) cantilever racks with vertical components parallel to the aisle and cantilever beams or arms connected to the vertical components perpendicular to the aisle. Steel racks may be referred to as pallet racks, storage racks, stacker racks, retail racks, pick modules, selective racks, or cantilever racks and may incorporate moving components and be referred to as pallet-flow racks, carton-flow racks, push-back racks, movable-shelf racks, drive-in racks, and drive-through racks. While steel racks may be made to ANSI MH16.l or ANSI MH16.3 standards, all steel racks and parts thereof meeting the description set out herein are covered by the scope of these <E T="03">Orders,</E> whether or not produced according to a particular standard. The scope includes all steel racks and parts thereof meeting the description above, regardless of (1) other dimensions, weight, or load rating; (2) vertical components or frame type (including structural, roll-form, or other); (3) horizontal support or beam/brace type (including but not limited to structural, roll-form, slotted, unslotted, Z-beam, C-beam, L-beam, step beam, and cantilever beam); (4) number of supports; (5) number of levels; (6) surface coating, if any (including but not limited to paint, epoxy, powder coating, zinc, or other metallic coatings); (7) rack shape (including but not limited to rectangular, square, corner, and cantilever); (8) the method by which the vertical and horizontal supports connect (including but not limited to locking tabs or slots, bolting, clamping, and welding); and (9) whether or not the steel rack has moving components (including but not limited to rails, wheels, rollers, tracks, channels, carts, and conveyors). Subject merchandise includes merchandise matching the above description that has been finished or packaged in a third country. Finishing includes, but is not limited to, coating, painting, or assembly, including attaching the merchandise to another product, or any other finishing or assembly operation that would not remove the merchandise from the scope of these <E T="03">Orders</E> if performed in the country of manufacture of the steel racks and parts thereof. Packaging includes packaging the merchandise with or without another product or any other packaging operation that would not remove the merchandise from the scope of these <E T="03">Orders</E> if performed in the country of manufacture of the steel racks and parts thereof. Steel racks and parts thereof are included in the scope of these <E T="03">Orders</E> whether or not imported attached to, or included with, other parts or accessories such as wire decking, nuts, and bolts. If steel racks and parts thereof are imported attached to, or included with, such non-subject merchandise, only the steel racks and parts thereof are included in the scope. The scope of these <E T="03">Orders</E> does not cover: (1) decks, <E T="03">i.e.,</E> shelving that sits on or fits into the horizontal supports to provide the horizontal storage surface of the steel racks; (2) wire shelving units, <E T="03">i.e.,</E> units made from wire that incorporate both a wire deck and wire horizontal supports (taking the place of the horizontal beams and braces) into a single piece with tubular collars that slide over the posts and onto plastic sleeves snapped on the posts to create a finished unit; (3) pins, nuts, bolts, washers, and clips used as connecting devices; and (4) non-steel components. Specifically excluded from the scope of these <E T="03">Orders</E> are any products covered by Commerce's existing antidumping and countervailing duty orders on boltless steel shelving units prepackaged for sale from the People's Republic of China. <SU>6</SU> <FTREF/> <FTNT> <SU>6</SU>   <E T="03">See Boltless Steel Shelving Units Prepackaged for Sale from t ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 17k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━