boltless steel shelving units prepackaged for sale from the prc

5/21/2018 Boltless Steel Shelving Units Prepackaged for Sale from the PRC

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-ME:

BRLJSSES BELGIUM

EW YORK Y

L05 A GELES CA

CHICAGO IL

STAMFORD CT

PARS! ~ :6-\*'

AFFILI ECFFICES I

MUMB mom 3 0

------- ""'2.';i:;;;;m.

S cr tary

'lnt'| Trad Commission

Th Honorabl Lisa R. Barton

S cr tary

KELLEY DRYE 81WARRE LLP

A timrso UABIUTYFART EIISHIP

WASHI GTO HARBOUR, $UlTE 400

3050 K STREET, W

WASHI GTO , D.C. 20007-5108

FACSIMILE

(207) 312-8451

www,k ll ydry .com

(202) 342-S400

R Q9

C651 I Pl

August 26, 2014

,,,,,,,,, .

USITCInv stigation os. 70I-TA- __ and 73l-TA

P tition rs Busin ss Propri tary Information for Which

Propri tary Tr atm nt is R qu st d D l t d in P tition

Volum I at Pag s: 2-4, I0, 12, I6-21, Exhibit List and

Exhibits GE -I, 2, 6, 9 and I0, and Volum II at Pag s

Exhibits AD-I, 2, 4 and 5

PUBLIC VERSIO

U.S. Int rnational Trad Commission

500 E Str t, S.W., Room 112

Washington, DC 20436

R : Boltl ss St l Sh lving Units Pr packag d for Sal from th

P opl 's R public ofChina

D ar S cr tary Barton:

Enclos d und r cov r of this l tt r, pl as find th original and 8 copi s of th busin ss

propri tary v rsion and two copi s of th public v rsion of an antidumping and count rvailing I

duty p tition fil d on b half of Edsal Manufacturing Co., Inc. to initiat a proc ding on boltl ss

st l sh lving units pr packag d for sal from China. In addition, w submit on unbound copy

of ach v rsion of th p tition. W also submit busin ss propri tary and public CD-Roms

containing th accompanying xhibits to this p tition. '

This p tition, which

Comm rc , consists of thr

is b ing simultan ously fil d with th U.S. D partm nt of

volum s. Volum I contains th g n ral and injury s ctions;


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e Honorable Lisa R. Barton PUBLIC VERSION

August 26, 2014

Page 2

Volume II contains t e dumping analysis and related ex ibits; and Volume Ill contains t e

subsidy analysis and related ex ibits.

On be alf of t e Petitioner, we ereby request proprietary treatment for t e bracketed

information contained in t is petition pursuant to section 777(b)(1) of t e ariff Act of 1930, as

amended (19 U.S.C. l677f(b)(l)), and section 201.6 of t e Commission's regulations, 19

C.F.R. 201.6, as amended (62 Fed. Reg. 37,818, July 22, 1996). e bracketed information in

t is petition is ig ly sensitive business confidential information, including domestic producers

capacity, production, s ipments, employment, pricing, and cost data obtained from confidential

sources, as well as t e identity of t ose sources.

In particular, proprietary treatment is requested for t e following information:

VolumeI (General and Injury)

0 Pages 2, 3, 4, 10, 12, 16, 17, 18, 19, 20 and 21, Ex ibit List, and Ex ibits GEN-1,

2, and 6 contain U.S. producers proprietary information on t e U.S. industry and

position on t e petition as well as production, s ipments, capacity, market data,

import voltune estimates and identification of t e source for t e confidential

information.

0 Ex ibit GEN-9 contains petitioners lost sales and revenue information, including

t e names/locations of petitioners customers and t e terms of sale to t ese

customers.

0 Pages 18 and 20 and Ex ibits GEN-10 contain petitioners proprietary pricing,

trade and financial data and identification of t e source for t e confidential

information.

Volume II AD)_

0 Ex ibits AD-1, 2, 4, and 5 contain petitioners proprietary data on pricing, terms

of sales, customer names, pricing strategies, and factors of production for subject

merc andise, and t e identification of t e source for t e confidential information.


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/26/2 14 1 : 1 FAX 2 2342 451 KELLEYDRYEWARRENLLP 2/ 2

The Ii-IonorableLisa R. Barton PUBLIC VERSION

Auglllst 26, 2 14

Pag


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BLIC VERSION

DOC Investigation Nos. A-570-018 and C-570-019

ITC InvestigationNos.701-TA-_ and 73l-TA

Total N0. of ages: 128

Original Investigation

etitioners Business roprietary Information for Which

roprietary Treatment Has Been Requested Deleted at

Volume I, ages: 2-4, 10, I2, 16-21, Exhibit List &

Exhibits GEN-I, 2, 6, 9 and I0; and Volume II, Exhibits

AD-I, AD-2, AD-4 and AD-5

BLIC VERSION

BEFORE THE

INTERNATIONAL TRADE ADMINISTRATION

OF THE

.S. DE ARTMENT OF COMMERCE

AN

D THE

.S. INTERNATIONAL TRADE COMMISSION

ANTID M ING ANDCO NTERVAILING D TY ETITION

VOL ME I: GENERAL AND INJ RY

BOLTLESS STEEL SHELVING NITS RE- ACKAGED FOR SALE

FROM THE EO LES RE BLIC OF CHINA

ETITIONER:

EDSAL MAN FACT RING CO., INC.

ECONOMIC CONS LTANTS:

GINA E. BECK

ERIK K.WARGA

LA RAM. BELTRAMI

GEORGETOWN ECONOMIC SERVICES, LLC

3050 K Street, N.W.

Washington, D.C. 20007

(202) 945-6660

August 26, 2014

CO NSEL:

KATHLEEN W. CANNON

A L C. ROSENTHAL

R. ALAN L BERDA

GRACE W. KIM

KELLEY DRYE &WARREN LL

3050K Street, N.W., suite 400


(202) 342-8400


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BLIC VERSION

Table ofContents

E29

GENERAL INFORMATION ............................................................................................ ..2

A. ETITIONER ........................................................................................................ ..2

B. OTHER DOMESTIC ROD CERS .................................................................... ..2

C. DESCRI TION OF THE DOMESTIC IND STRY AND

IND STRY S ORT......................................................................................... ..3

D. RELATED ROCEEDINGS ................................................................................. ..4

E. DESCRI TION OF S BJECT MERCHANDISE AND

REQ ESTED SCO E OF INVESTIGATION ..................................................... ..4

1. roduct Description ................................................................................... ..4

2. hysical Characteristics and ses .............................................................. ..5

3. roduction rocess ..................................................................................... ..7

4. .S. Tariff Classification ........................................................................... ..9

5. Requested Scope of Investigation ............................................................ ..1O

F. CO NTRY OF EX ORTATION ....................................................................... ..I2

G. ROD CERS AND EX ORTERS OF S BJECT

MERCHANDISE ................................................................................................. ..12

H. VOL ME AND VAL E OF IM ORTS............................................................ ..l2

I. NAMES AND ADDRESSES OF .S. IM ORTERS ........................................ ..13

INFORMATION RELATED TO SALES AT LESS THAN FAIR

VAL E AND CO NTERVAILABLE S BSIDIES ..................................................... ..l3

THE .S. BOLTLESS STEEL SHELVING IND STRY HAS BEEN

MATERIALLY INJ RED BY REASON OF NFAIRLY TRADED

IM ORTS FROM CHINA .............................................................................................. ..13

A. THE DOMESTIC LIKE ROD CT MIRRORS THE SCO E OF

THE ETITION................................................................................................... ..l3

l


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Table ofContents

(continued)

B. THE DOMESTIC IND STRY CONSISTS OF ALL .S.

ROD CERS OF BOLTLESS STEEL SHELVING ..................... ..

C. IM ORTS OF BOLTLESS STEEL SHELVING FROM CHINA

ARE NOT NEGLIGIBLE................................................................ ..

D. IM ORTS FROM CHINA ARE CA SING MATERIAL

INJ RY TO THE DOMESTIC BOLTLESS STEEL SHELVING

IND STRY ..................................................................................... ..

1. The Volume of Imports from China, on an Absolute and

Relative Basis, Was Significant and Increasing in Recent

Years .................................................................................... ..

2. The Dumped Subject Imports Have Had Significant

Negative rice Effects on the .S. Boltless Steel Shelving

Industry ................................................................................ ..

a. Subject Imports Have ndercut and Depressed and

Suppressed .S. rices ............................................ ..

b. rice Descriptor for ITC Questionnaires ................. ..

3. nfair Imports Have Had an Injurious Impact on the

Domestic Industry roducing Boltless Steel Shelving ..........

THE DOMESTIC IND STRY IS THREATENED WITH F RTHER

MATERIAL INJ RY BY REASON OF NFAIR IM ORTS OF STEEL

SHELVING FROM CHINA........................................................................ ..

CONCL SION ............................................................................................ ..

ll

age

....l5

....................l6

....................l6

.................. ..17

....................l8

.................. ..18

....................l8

....................l9

.................. ..20

....21


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BLIC VERSION

ETITION FOR THE IM OSITION OFANTID M ING ANDCO NTERVAILING

D TIES AGAINST BOLTLESS STEEL SHELVING NITS RE ACKAGED FOR

SALE FROM THE EO LES RE BLIC OF CHINA

Edsal Manufacturing Co., Inc. (Edsal or etitioner) files this petition before the .S.

Department of Commerce (the Department) and the .S. International Trade Commission

(ITC or Commission) on behalf of the domestic industry, as described in sections 702(c)(4)

and 732(c)(4) of the Tariff Act of 1930, as amended (the Act), producing boltless steel

shelving units prepackaged for sale (Boltless Steel Shelving). 19 .S.C. 1671a(c)(4),

1673a(c)(4). Edsal is the largest domestic producer of Boltless Steel Shelving in the nited

States.

This petition presents information that Boltless Steel Shelving, which is more fully

described in section I.D., Mi, from the eop1esRepublic of China (China) is being, or is

likely to be, sold in the nited States at less than fair value within the meaning of section 731 of

the Act. 19 .S.C. 1673. This petition also presents evidence that central, provincial, and

local governments in China are providing cotmtervailable subsidies with respect to the

manufacture, production and export of Boltless Steel Shelving within the meaning of section

70I(a)(l) of the Act. 19 .S.C. l671(a)(1). Furthermore, this petition demonstrates that these

unfairly traded imports are a cause of material injury to the .S. domestic industry producing

Boltless Steel Shelving within the meaning of section 731(2) of the Act, 19 .S.C. 1673(2),

and threaten to cause further material injury if remedial action is not taken. Edsal therefore

requests that antidumping duties be imposed on Boltless Steel Shelving manufactured in China

in an amount equal to that by which the factors of production-based normal value of the subject

merchandise exceeds its corresponding export price or constructed export price. Edsal also


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BLIC VERSION

requests that countervailing duties be imposed on iI1'1pOI'tSf Boltless Steel Shelving from China

in an amount equal to the net countervailable subsidy.

This petition sets forth relevant information reasonably available to the etitioner in

support of these allegations and is filed in conformity with the requirements of section 351.202

of the Departments regulations and section 207.11 of the Commissions regulations. 19C.F.R.

351.202 and 207.11.

I. GENERAL INFORMATION

A. etitioner

Edsal Manufacturing Co., In. is the largest .S. producer of Boltless Steel Shelving and

is an interested party within the meaning of 19 .S.C. 1677(9)(C). Edsal manufactures

Boltless Steel Shelving at its production facility in Chicago, Illinois. The contact information for

Edsal is:

Edsal Manufacturing Company, Inc.

4400 South ackers Avenue

Chicago, IL 60609

hone: (773) 254-0600

Fax: (773) 254-1303

Contact: Mitch Liss

Email: mliss@,edsal.com

Website: http://www.edsal.c0m/

B. Other Domestic roducers

Edsal is aware of three other domestic producers of Boltless Steel Shelving. _S_exhibit

GEN-2, para. 2; sg Qsg Exhibit GEN-1, [

] The identities and contact information for the other domestic producers are:

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BLIC VERSION

Hirsh Industries

3636 Westown arkway, Suite 100

West Des Moines, Iowa 50266

hone: (515)-299-3200

Fax: (515)-299-3300

Contact: Wayne Stewart

Email address: stewartw(cDhirsh.com

Website: www.hirshindustries.com

Tennsco Corp.

201 Tennsco Drive

Dickson, TN 37055

hone: (615) 446-8000

Fax: (615) 446-7224

Contact: Stu Speyer

Email address: [email protected]

Website: www.tennsco.com

Hallowell-List Inc.

.O. Box 1267

Apopka, FL 32703

hone: (407) 464-361 1

Fax: (407) 464-3610

Contact: JR. List

Email address: [email protected]

Website: www.hallowell-list.com

C. Description of the DomesticIndustrv and Industry Support

The statute requires that the domestic producers or workers who support the petition

account for at least 25 percent of the total production of the domestic like product. 19 .S.C.

1671a(c)(4)(A)(i), 1673a(c)(4)(A)(i). In addition, the statute requires that the domestic

producers or workers who support the petition account for more than 50 percent of the

production of the domestic like product produced by that portion of the industry expressing

support for or opposition to the petition. 19 .S.C. l671a(c)(4)(A)(ii), 1673a(c)(4)(A)(ii).

The statutory requirements for standing are satisfied here. As shown in Exhibit GEN-1

(Standing Table), the .S. [ C,--f~(-65\-Y ] support the petition surpass both the

3


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BLICVERSION RANGED DATA

25 percent and 50 percent thresholds for industry support established in the statute. The

production of Boltless Steel Shelving by Edsal [ Q; r1\tAr\3J, p Am / pg 1 ,~,,W4

] accounted for [/00 ] percent of .S.

Boltless Steel Shelving production in 2013. g Exhibit GEN-1 (Standing Table) and

[ $ {Ql_l3.rf\ vT1sr3>Ibo Rf-5 / Qw/\(/xx/ r .1'TiQ(\i s

] Thus, domestic producers [

] percent of those companies expressing support for or opposition to

the petition. 19 .S.C. l671a(c)(4)(A), 1673a(c)(4)(A). There are no other known producers

of Boltless Steel Shelving as described by the scope of this case in the nited States. E Q;

Exhibit GEN-2[ J~\f sIL1"/4C~ D


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BLIC VERSION

2. hvsical Characteristics and ses

Boltless Steel Shelving consists of upright supports (posts) and horizontal supports

(beams and braces) made of flat-rolled steel. The term boltless refers to steel frame shelving

that is assembled primarily without the use of nuts and bolts or screws, providing for quick and

convenient assembly by the end user without the use of tools. The vertical and horizontal

support members (posts and beams, respectively) for Boltless Steel Shelving are typically

assembled by fitting an affixed rivet, punched or cut tab, or other similar connector on one

support (typically the beam) into a hole, slot or other appropriately shaped receptacle on another

support (typically the post). When connected, the posts and beams lock together to form a sturdy

frame on which the decking or shelf sits.

Boltless Steel Shelving may be described by a variety of different names, including rivet

shelving, welded frame shelving, slot and tab shelving, and punched rivet (quasi-rivet) shelving,

among other similar descriptions. These descriptions often relate to the method of boltless

assembly employed. For example, rivet shelving is Boltless Steel Shelving in which the beams

attach to the posts by means of steel or other metal rivets or similar fasteners affixed to one piece

of the frame (typically the beam) that locks into a hole in the connecting piece of steel framing

(typically the post). Slot and tab shelving consists of beams and posts that are assembled by

fitting metal tabs cut into one piece of the frame into slots on another piece of the frame.

unched rivet (quasi-rivet) shelving has a protrusion that is punched or otherwise formed in a

l Horizontal supports are generally referred to as beams, but some manufacturers may refer to the

short span supports as braces and the long span supports as beams. For purposes of this petition,

all horizontal support pieces of the frame are hereafter referred to as beams.

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BLIC VERSION

beam or post to serve the same function as a rivet or other boltless fastener in rivet shelving.

That protrusion fits into or connects with a corresponding receptacle in another piece of the

frame. Welded frame shelving" is Boltless Steel Shelving in which two posts are welded to

front-to-back supports to create end units that will be joined by beams using one of the methods

described above to create the completed frame.

An important characteristic of Boltless Steel Shelving is that the frame (posts and beams)

for the shelving unit can easily be assembled by the ultimate purchaser without the use of nuts,

bolts or screws, or the use of tools such as screwdrivers and wrenches. The only tool that may be

needed for assembly is a mallet or hammer to securely lock the frame together. The incidental

use of nuts and bolts or screws that may be associated with the optional installation of tie-bars (a

part used for handling heavy loads), shelf supports, wall anchors, or the addition of accessories,

does not remove the product from scope of the petition.

Another important characteristic of the product is that it is prepackaged for sale

containing all of the pieces necessary for the ultimate end-user to create a single stand-alone

shelving unit2 (with the exception of decks, in certain instances).3 The package typically

includes four posts (or two end pieces in the case of welded frame shelving) and enough beams

2While in the vast majority of cases the subject merchandise is packaged one unit per package,

the product has been offered with two units, for example, in a single package or with two boxes

of single units banded together for retail sale as a single item. Such prepackaging of more than

one unit for sale as a single item does not remove the product from the scope of the case. This is

in contrast to the made-to-order commercial and industrial shelving systems in which the various

components for Boltless Steel Shelving are aggregated, packaged and sold based on the

customers specific design for a storage system; those products are out of scope.

3 In some instances, the decks may be offered separately from the prepackaged frame to give the

consumer a choice between types of decks depending on the intended storage application.

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BLIC VERSION

and decks to create the number of desired shelving levels for the unit.4 The package may also

include plastic end protectors, stabilizer struts (that attach diagonally to the beams), center

supports for the decking, tie bars or other accessories. In the case of add-on kits used to extend a

single unit into two connected units sharing a common pair of posts without disassembly, the

package will contain only two posts (or one end unit in the case of welded frame shelving).

Boltless Steel Shelving is sold in a variety of shapes, widths, depths, heights and storage

(weight capacities).5 In this regard, 85 inches in length is the effective size limit of packaging

that can be practicably employed for the subject merchandise. This would be the effective size

limit for subject welded frame shelving that has prefabricated end units. For subject rivet

shelving, the shelving unit could be taller than 85 inches by splitting the posts into two pieces.

The units may have any number of deck (shell) levels but typically have two to six deck levels.

ictures of Boltless Steel Shelving and components are provided at Exhibit GEN-3.

Boltless Steel Shelving is used for storage purposes in homes, garages, offices and

commercial and industrial operations. It is sold through big box stores, department stores,

home improvement stores and other retail, industrial and commercial supply sources, including

on-line vendors.

3. roduction rocess

The beams and posts for Boltless Steel Shelving are typically produced from hot-rolled,

flat-rolled carbon steel. The thickness of the steel varies depending on the shelving design and

4 For some models, each corner post may come in two pieces that fit together with a sleeve or

other boltless connector, permitting the use of smaller packaging.

5Capacity generally refers to the weight load that each shelf can carry.

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BLIC VERSION

the amount of weight the shelving unit is intended to carry. The most common thicknesses used

for posts are l4, 16 and 18 gauge steel. The most common thicknesses for beams are 16 and 18

gauge steel. Cold-rolled and corrosion-resistant steel are generally not used to produce posts and

beams because of the additional expense involved with using such materials and because the

surfaces will be coated with paint or other coatings after forming.

The hot-rolled steel is slit to appropriate widths to produce the beam and post profiles for

the shelving unit. Such slitting may be done in-house or by a service center or other third party.

The slit steel is typically fed into one or more presses that punch and cut the steel to the correct

length for the post or beam piece being produced. The post or beam is then roll or press formed

into the final shape and profile. Other fabrication techniques may also be used to form the post

or beam these include, but are not limited to, press forming and progressive die forming, applied

manually or by machine.

While the posts may be produced in a wide variety of profile designs (L, , T, box,

etc.), the most common profile shape is an open-faced L, with the steel being bent lengthwise

at 90-degrees to create two equal faces g Exhibit GEN-3. Each face has shaped holes or the

slots into which the rivets or tabs from the beams fit.( The post may also be in a closed-face L in

which each leg of the L is bent in half 180 degrees inward toward the fillcrum so that the holes or

slots are not visible from the outside of the post. Beams similarly come in a wide variety of

profiles depending on the shelving design and weight handling requirements (including, but not

limited, to Z-beam, C-beam, L-beam, step beam, cargo rack and other beam shapes). In each

6 It is also possible to use tubing as a post.

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BLIC VERSION

case, the beam is shaped to provide strong structural support for the frame, meet the loading and

structural requirements of the unit and provide a ledge on which the deck sits.

After forming, posts and beams may be phosphatized before being coated with paint, zinc

(i.e., galvanized), a powder coating or baked enamel, among other coatings. For rivet shelving,

one or two rivets (depending on design) are also affixed to each end of the beams. In the case of

welded frame Boltless Steel Shelving, two sets of front-to-back supports will be welded together

as end pieces.

The decking may be made of a variety of materials but is most often made from particle

board (including particle board with a painted, printed or laminated top), steel wire mesh decking

or some other suitable material that is cut to the appropriate size.

The necessary number of finished posts and beams for a complete unit, along with decks,

other accessories (plastic end pieces, center supports, etc.) and assembly instructions are

packaged together and labeled for sale to the retail consumer or other ultimate end-user.

4. .S. Tariff Classification

Boltless Steel Shelving is classified in Harmonized Tariff Schedule of the nited States

(HTS S) statistical subheadings HTS S 9403.20.00l8 (metal household furniture other than

cribs and toddler enclosures etc.) and 9403.20.002O(metal shelves other than household or office

furniture). See Exhibit GEN-4 (CB ruling letters). Boltless Steel Shelving may also enter

through HTS S 9403.l0.004O (metal furniture of a kind used in offices, other than filing

cabinets). There are no regular customs duties on these products. These statistical subheadings

each cover a large variety of different types of metal furniture and parts of metal furniture,

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BLIC VERSION

making it impossible to rely on official import data to determine the volume and value of

imports.E Exhibit GEN-4 (HTS S schedule).

Due to the relatively small number of purchasers and producers of Boltless Steel

Shelving in the nited States, petitioner has reasonable knowledge of the size of the Boltless

Steel Shelving market and the level of subject imports. Se; Exhibit GEN-2 (Declaration of

[ 3 /VA i ]). The official import data in HTS S

9403.20.00l8 and 9403.20.0020 show imports into these basket categories that are far in excess

of the level of the imported subject product that petitioner knows to be in the .S. market. _e

GEN-5 (official import statistics) and Exhibit GEN-6 (volume and value of subject imports).

5. Requested Scope of Investigation

The following language describes the scope of the imported merchandise that etitioner

intends to cover in this investigation:

The scope of this petition covers boltless steel shelving units

prepackaged for sale, with or without decks (boltless steel

shelving). The term prepackaged for sale means that the

vertical supports (i.e., posts) and horizontal supports (i.e., beams

and braces) necessary to assemble a completed shelving unit (with

or without decks) are packaged together for ultimate purchase by

the end-user. The scope also includes add-on kits that allow the

end-user to add an extension shelving unit onto an existing boltless

steel shelving unit such that the extension and the original unit will

share a set of posts. The term boltless refers to steel shelving in

which the vertical and horizontal supports forming the frame are

assembled primarily without the use of nuts and bolts or screws.

The vertical and horizontal support members for boltless steel

shelving are typically assembled by fitting a rivet, punched or cut

tab or other similar connector on one support into a hole, slot or

similar receptacle on another support. The supports lock together

to form the frame for the shelving unit. The incidental use of nuts

and bolts or screws to add accessories, wall anchors, tie-bars or

shelf supports does not remove the product from scope. Boltless

steel shelving units may also come packaged as partially

l0


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BLIC VERSION

assembled, such as when two upright supports are welded together

with front-to-back supports, or are otherwise connected, to form an

end unit for the frame. The boltless steel shelving covered by this

etition may be commonly described as rivet shelving, welded

frame shelving, slot and tab shelving, and punched rivet (quasi

rivet) shelving as well as by other trade names.

The scope includes all boltless steel shelving meeting the

description above, regardless of (1) vertical support or post type

(including but not limited to open post, closed post and tubing); (2)

horizontal support or beam/brace profile (including but not limited

to Z-beam, C-beam, L-beam, step beam and cargo rack); (3)

number of supports; (4) surface coating type (including but not

limited to paint, epoxy, powder coating, zinc and other metallic

coating); (5) number of levels; (6) weight capacity; (7) shape

(including but not limited to rectangular, square, and corner units);

(8) decking type (including but not limited to wire decking,

particle board, laminated board or no deck at all); or (9) the

boltless method by which vertical and horizontal supports connect

(including but not limited to keyhole and rivet, slot and tab, welded

frame, punched rivet and clip).

Specifically excluded from the scope are pallet racks, plastic

shelving units, wall-mounted shelving, wooden shelving units and

other wooden furniture containing shelves. Also excluded from

the scope is wire shelving, which consists of a shelf made from

wire that incorporates 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 the finished shelving

unit. Also excluded from the scope are bulk-packed parts or

components of boltless steel shelving units and made-to-order

commercial shelving systems.

Subject boltless steel shelving enters the nited States through

Hannonized Tariff Schedule of the nited States (HTS S)

statistical subheadings 9403.20.0018 (metal household furniture

other than cribs and toddler enclosures etc.) and 9403.20.002O

(metal shelves other than household or office furniture), but may

also enter through HTS S 9403.10.0040 (metal furniture of a kind

used in offices, other than filing cabinets). While HTS S

subheadings are provided for convenience and Customs purposes,

the written description of the scope of this investigation is

dispositive.

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F. Countgy of Exportation

The Boltless Steel Shelving that is the subject of this petition is produced in and exported

to the nited States from China. etitioner has no knowledge that the subject merchandise is

currently being transshipped through any third country to the nited States.

G. roducers and Exporters of Subject Merchandise

A list of known and suspected producers and exporters of Boltless Steel Shelving from

China is provided in Exhibit GEN-7. The five Chinese producers that petitioner believes to be

the largestproducersare identifiedinExhibitGEN-2,para. l7. g g ExhibitGEN-l l.

H. Volume and Value of Imports

The estimated volume and value of .S. imports of Boltless Steel Shelving from China

are presented in Exhibit GEN-6 for calendar years 2011, 2012, and 2013, as well as the first six

months of 2013 and 2014. As described in section I.E.4 above, imports of Boltless Steel

Shelving enter the nited States in large basket HTS S statistical subcategories for steel

furniture, making it impossible to rely on ofiicial import statistics to determine the volume and

value of subject imports. E Exhibits GEN-4 (HTS S excerpt and CB rulings) and GEN-5

(official import statistics for HTS S basket categories). There are no other public sources for

these data. Due to the relatively small number of purchasers and producers of Boltless Steel

Shelving in the nited States, petitioner has reasonable knowledge of the size of the domestic

Boltless Steel Shelving market and the level of subject imports. Se; Exhibit GEN-2 (Declaration

of [ ).lH-{Y\2 ]). etitioner has based the volume and value of imports reported in this

etition on its own market knowledge as the best information available. SQ Exhibit GEN-6.

Comprehensive import data will be collected by the Commission in the course of its

investigation.

12


19/40

BLIC VERSION

I. Names and Addresses of .S. Importers

Based on information reasonably available to etitioner, a list of known and suspected

importers of Boltless Steel Shelving from China is provided in Exhibit GEN-8 as required by the

Departments regulations. 19C.F.R. 351 .202(b)(9).

II. INFORMATION RELATED TO SALES AT LESS THAN FAIR VAL E AND

CO NTERVAILABLE S BSIDIES

Information related to allegations of less-than-fair-value sales of the subject merchandise

from China is provided in Volume II of this etition. Information related to allegations of

countervailable subsidies on the subject merchandise from China is provided in Volume III of

this etition.

III. THE .S. BOLTLESS STEEL SHELVING IND STRY HAS BEEN

MATERIALLY INJ RED BYREASONOF NFAIRLY TRADED IM ORTS

FROM CHINA

A. The Domestic Like roduct Mirrors the Scope of the etition

The statute defines a domestic like product as a product which is like, or in the

absence of like, most similar in characteristics and uses with, the article subject to an

investigation. 19 .S.C. 1677(l0). The domestic like product in this investigation is Boltless

Steel Shelving, co-extensive with the scope definition. An examination of the Commissions

traditional six-factor test? demonstrates that Boltless Steel Shelving comprises a continuum of a

single product with no clear dividing lines.

7 In reaching a like product determination, the Commission considers a number of factors,

including physical characteristics and uses, interchangeability, channels of distribution, customer

and producer perceptions, common manufacturing facilities, production processes and

employees, and, where appropriate, price. Nippon Steel Corp. v. nited States, 19 CIT 450, 455

n. 4 (Ct. Intl Trade 1996).

13


20/40

BLIC VERSION

All subject merchandise is made from flat-rolled steel formed into posts and beams. All

Boltless Steel Shelving subject to this petition is alike in that the shelving (1) is pre-packaged

with all of the posts and beams necessary to construct a stand-alone shelving unit or an add-on

unit; and (2) comes ready to be assembled by the end-user in primary form without the use of

screws, nuts or bolts and without the use of tools other than a hammer or mallet. g section

I.E.2,gym.

Boltless Steel Shelving is used for storage in homes, garages, offices and other

businesses. All Boltless Steel Shelving is interchangeable, varying only in dimensions and other

minor physical characteristics. Boltless Steel Shelving is not readily interchangeable with

shelving that requires screws, bolts and nuts as the primary means of assembly due to its physical

characteristics, including its tool-less ease of assembly. The individual, complete, prepackaged

nature of Boltless Steel Shelving also differentiates it from other types of shelving. Other types

of shelving are missing one or more of the characteristics that define the subject product, such as

steel frame construction, quick and easy boltless assembly, and/or prepackaging of complete

units for purchase on an as is basis.

All Boltless Steel Shelving is sold through the same channels of distribution. The

shelving is primarily a prepackaged consumer product. Consumers (individuals, businesses,

offices, schools etc.) purchase the prepackaged models with the characteristics that match their

storage needs and design preferences. Boltless Steel Shelving is sold through big box, home

improvement, department, discount and office supply stores, as well as through commercial and

industrial distributors and e-cornmerce sites.

14


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BLIC VERSION

In terms of production processes, equipment and employees, all Boltless Steel Shelving is

produced using the same basic manufacturing process, as described in section I.E.3 above, as

well as on the same equipment and by the same employees. Other types of shelving not within

the scope definition are not made by the same manufacturers on the same equipment or with the

same employees.

roducers, their customers and end-users perceive all Boltless Steel Shelving to be the

same product, due to its ease of assembly, sturdy design and storage capacity. They do not

perceive other shelving products requiring fasteners and tools to assemble to be substitutable for

Boltless Steel Shelving. With respect to price, all Boltless Steel Shelving is sold within a

reasonable range of similar prices based on a continuum of sizes (depths, widths, number of

levels) and options for physical characteristics such as finish type (paint, powder coating etc.),

color, deck types (particle board, laminated particle boards, wire decks, etc.), and capacity.

Accordingly, the domestic like product in these investigations should be defined as

Boltless Steel Shelving, co-extensive with the scope definition.

B. The Domestic Industrv Consists of All .S. roducers of Boltless Steel

Shelving

Section 771(4)(A) defines the relevant industry as the producers as a whole of a

domestic like product, or those producers whose collective output of a domestic like product

constitutes a major proportion of the total domestic production of the product. l9 .S.C.

1677(4)(A). Based on the domestic like product definition, the domestic industry consists of

all .S. producers of Boltless Steel Shelving. In this case, to petitioners best knowledge, Edsal,

Hallowell-List, Hirsh, and Tennsco are the only .S. producers of the subject Boltless Steel

Shelving. S_eesection I.B.

15


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BLIC VERSION

etitioner Edsal is related to Chinese producer Edsal Sandusky Corporation Zhongshan.

S_eeExhibit GEN-7. Edsal has imported Boltless Steel Shelving from this affiliate [

/m/0./tr 1~FZ>.


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BLICERSION R Dig

the subject merchandise, (2) the effect of imports of that merchandise on prices in the nited

States for the domestic like product, and (3) the impact of imports of such merchandise on

domestic producers in the context of production operations within the nited States. Available

information indicates unfairly traded imports from China have been, and continue to be, a cause

of material injury to the domestic industry producing Boltless Steel Shelving.

1. The Volume of Imports from China. on an Absolute and Relative

Basis.Was Significant and Increasing in Recent Years

The volume of unfairly-traded imports from China was significant and increasing over

the period of investigation.

0 The absolute volume of subject imports from China is significant. In 2013,

subject imports from China were an estimated [ ] units, accounting for

I 33'] percent of the .S. market. E Exhibit GEN-6 (Subject Import Table);

ge $9 Exhibit GEN-2 and Attachment. By the first half of 2014, subject

imports from China reached [ ] units, accounting for a sizeable [ ]

percent of the .S. market. Se; Exhibit GEN-6.

1 Subject import volumes also increased significantly over the 201 1 to 2013 period.

Subject imports rose from [ ] units in 2011 to [ ] units in 2013,

an increase of [ ] percent. Ll. Import volumes continued to increase over the

interim periods, rising from [ FO ,N0] units in January-June 2013 to

[ ] units by January-June 2014, a [ ] percent increase. Q

Relative to consumption in the nited States, aggregate subject import volumes

rose from [ ] percent in 2011 to [ 35 ] percent in 2013. I_d. During the

interim periods, subject import market penetration surged from [ ] percent

during January-June 2013 to [ ] percent by January-June 2014. Ig1_.

17


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BLIC VERSION

RANGED DATA

2. The Dumped Subject Imports Have Had Significant Negative rice

Effects on the .S. Boltless Steel Shelving Industry;

a. Subject Imports Have ndercut and Depressed and

Suppressed .S. rices

Subject imports have increased their share of the .S. market by significantly

undercutting .S. producer price levels. nfairly-priced imports have also had a depressive and

suppressive effect on domestic producer prices.

0 Based on petitioners examples of lost sales as set forth in Exhibit GEN-9, import

prices from China show consistent, significant and widespread underselling of

.S. producers prices. The underselling margins by China ranged primarily from

[ ] percent. g ExhibitGEN-9.

Q The underselling by the subject imports resulted in the depression and suppression

of .S. producer prices. During 2011-13, [ _{\_)_;Sf Q\ F\ Q3

] resulting in price depression. & Exhibits GEN-9

(Lost Sales and Lost Revenues Table) and GEN-10 (Trade and Financial

Indicators Table). Although [ p ) Q,M6. (5 QA Aw Qk

l

leading to price suppression. IQ

I )\aST&tViNQ /~ flt>KrY\ *T">

] leading to significant lost revenue. E Exhibits GEN-2 para. 16 and

GEN-10. Despite [ ] also continued to lose sales to

imports of China over the OI. Q

I

b. rice Descriptors for ITC Questionnaires

ursuant to Section 207.1l(b)(2)(iv) of the Commissions regulations, 19 C.F.R.

207.11(b)(2)(iv), petitioner recommends that the Commission collect pricing data on the

following steel shelving products:

ROD CT 1: 77" Width x 24 Depth x 72 to 78" Height, 4

level rack with steel wire decking, with maximum load capacity of

2,500 pounds per level

ROD CT 2: 77" Width x 24" Depth x 72" Height, 3-level rack

with steel wire decking, with maximum load capacity of 2,500

pounds per level

18


25/40

BLIC VERSION

Rlll\lGED DATA

ROD CT 3: 36" Width x 18" Depth x 72" Height, 5-level

boltless/rivet steel shelving with particle board deck, with

maximum load capacity of 1,000 pounds per level

ROD CT 4: 48" Width x 24" Depth x 72" Height, 5-level

boltless/rivet steel shelving, with particle board deck, with

maximum load capacity of 1,000 pounds per level

ROD CT 5: 34 to 36" Width x between 15 and 18" Depth x 60"

Height, 4-level boltless/rivet steel shelving with particle board

deck, with maximum load capacity of 1,000pounds per level

These price descriptors account for a significant volume of .S. sales and imports and,

accordingly, are appropriate product-types for the Commissions analysis and comparison of

.S. producer and importer prices.

3. nfair Imports Have Had an Injurious Impact on the Domestic

Industrv roducing BoltlessSteel Shelving

The domestic industry has suffered material injury by reason of the subject imports, as

manifested in market share lost to the unfair imports, depressed and suppressed .S. prices, and

resulting deterioration in key trade and financial variables.

0 The increase in low-priced imports from China resulted in a [ ] percentage

point gain in subject import market share over the 2011 to 2013 period, and a

[ ] percentage point increase between 2011 and the first half of 2014. _Sg

Exhibit GEN-6. Subject import market share grew from [ ] percent in 2011

to [ ] percent by the first half of 2014. Q With no non-subject imports in

the .S. market, the increase in subject imports market share came at the direct

expense of the domestic producers market share. g Exhibit GEN-6

(Consumption and Market Share Table) and Exhibit GEN-2 (Declaration of

[ (Q d 5; ]). As a result, domestic producers market share fell from [ ]

percent in 2011 to [ S ] percent in 2013, before plummeting further to [ ]

percent in the first half of 2014, at the hands of subject imports. Exhibit GEN-6.

v Despite strong and increasing .S. demand for steel shelving over the OI, the

domestic industry has not been able to benefit from this market growth. Although

[ -T14Ab i 1NFQILM In/>,->

] capacity utilization-ratio has continued to decline over the OI.

E Exhibit GEN-10. From a level of[ ] percent in 2011, [

19


26/40

BLIC VERSION

l 1_d-

Q The increasing volumes of lowpriced imports that continually undercut .S.

producer prices resulted in substantial financial harm as well. [

]Cfi//*3/rI\VQ||!lJ~/


27/40

BLIC VERSION

RANGED DATA

1 There are at least 21 subject foreign producers of steel shelving in China. &

EXh1b1tGEN-7. [ f\= (*r.(\ 2 _S

] are believed to be the five largest Chinese producersg of

steel shelving. E Exhibit GEN-2, para. 17.

I The subject Chinese producers are heavily export-oriented, with the nited States

being one of their primary export markets. E Exhibit GEN-ll. In addition,

subject producers maintain substantial production capacity to produce Boltless

Steel Shelving that would allow them to ship increased volumes of subject

merchandise to the nited States. Q

0 There has been a significant rate of increase in subject import volume and market

share during the period. From a volume of [ ] units and a market share of

[ ] percent in 2011, the subject imports increased in volume to [ ]

units and to a market share of [ 3 5'] percent in 2013. E section III.D.l above

and Exhibit GEN-6 and Exhibit GEN-2.

0 Subject import volume and market share increases continued in the first half of

2014, to a [ ] percent. See Exhibit GEN-6.

0 It is likely that subject imports will enter the nited States at pricing levels that

will undercut, depress and suppress .S. prices in the imminent future, as they

have during the past three years. g section III.D.2 and Exhibit GEN-9. In the

face of recent price aggression, the threat of continued suppressing and depressing

effects of subject imports on domestic prices is real and imminent. Sig sections

III.D.2, III.D.3 and Exhibit GEN-2 (Declaration of[ Q (>,.m Z ]).

V. CONCL SION

The information presented in this etition provides evidence reasonably available to the

etitioner that imports of Boltless Steel Shelving from China are being subsidized and are being

sold in the nited States at less than fair value. This etition further provides evidence that the

domestic industry producing Boltless Steel Shelving has been materially injured, and is

threatened with material injury, by reason of these unfairly-traded imports. Accordingly,

81 Qem t\r4Namsi

1 geExhibitGEN-11.

21


28/40

BLIC VERSION

antidumping and countervailing duty investigations should be initiated against imports of

Boltless Steel Shelving from China and duties should be imposed to offset these unfair trade

practices.

GINA E. BECK, Consultant

ERIK K. WARGA, Consultant

LA RA M. BELTRAMI, Consultant

GEORGETOWN ECONOMIC SERVICES

3050 K Street, N.W., Suite 400


(202) 945-6660

August 26, 2014

KATHLEEN W. CANNON

A L C. ROSENTHAL

R. ALAN L BERDA

GRACE W. KIM

KELLEY DRYE & WARREN, LL

3050 K Street, N.W., Suite 400


(202) 342-8400

Counsel to Edsal Manufacturing Co., Inc.


29/40

llli-ssSteel Shelving fr m The Pu0plcs Republic f China

Case N s. A-570-018 and C-$704119

Original .ln\'estigati0n

('7().'Vlvl\;'\-YIERTIFl(.IATlON

I, '\/liichr.-ll l...is:+.Vice Prc;~;iclcm_currcmly crnpl ycil by lidsal Manulhciuriiig (1).. lnc..

L'LIlll:\fhat l prcpiiiul r ihcrwise supcrvised rhc prepamiictm l the zilluclicd sizhi11i$>i7_

.'\nlidumpi'ng and (kmmurvziiling Duly Petiti ns n August 26. Z0'l~l. l crlil'y than the public

inllmna1'i


30/40

RTIFI ATION

ITY OF WASHINGTON )

) ss:

DISTRI T OF OLUMBIA )

In accordance with section 201.6(b)(3)(iii) of the ommission's regulations, 19 .F.R.

20l.6(b)(3)(iii), I, Kathleen W. annon, hereby certify on August 26, 2014, that information

substantially identical to that for which business proprietary treatment has been requested in this

document is not available to the general public.

In accordance with section 207.3(a) of the ommission's regulations, 19 .F.R.

207.3(a), I, Kathleen W. annon, hereby certify on August 26, 2014, that the information

contained in this document is accurate and complete to the best ofmy knowledge.

In accordance with section 207.10(a) of the ommission's regulations, 19 .F.R.

207.10(a), I, Kathleen W. annon, hereby certify that on August 26, 2014, copies of this

document are being filed with the Department of ommerce and the U.S. International Trade

ommission on this date.

In accordance with section 207.1 l(b)(2)(v) of the ommissions regulations, 19 .F.R.

207.1l(b)(2)(v), I, Kathleen W. annon, hereby certify that all lost sales and lost revenue

allegations identified in the petition will also be submitted electronically via the U.S. International

Trade ommission Drop Box located at https://dropbox.usitc.gov/oinv/.

Kathleen W. annon 1

Subscribed and sworn to before me on August 26, 2014.

la ~ e. . . . -

Notarfiublic or th; Dlstrlct of Ol11IIlbl& .

Karen L. Butler j-

1 V .'.;o_00l I .."

My ommission xpires: lune 3Q 2Q] 9 .


31/40

BLIC VERSION


ITC Investigation Nos.701-TA-___ and 73l-TA



etitioners Business roprietary Information for Which


Volume I, ages: 2-4, I0, 12, 16-21, Exhibit List &

Exhibits GEN-1, 2, 6, 9 and 10; and Volume II, Exhibits

AD-1, AD-2, AD-4 and AD-5

BLIC VERSION

BEFORE THE

INTERNATIONAL TRADEADMINISTRATION

OF THE

.S. DE ARTMENT OF COMMERCE

AND THE

.S. INTERNATIONAL TRADE COMMISSION

ANTID M ING ANDCO NTERVAILING D TY ETITION

VOL ME II: LESS THANFAIR VAL E INFORMATION


FROM THE EO LES RE BLIC OF CHINA

ETITIONER:


ECONOMIC CONS LTANTS:

GINA E. BECK

ERIK K.WARGA

LA RAM. BELTRAMI

GEORGETOWN ECONOMIC SERVICES, LLC

3050 K Street, N.W.


(202) 945-6660

August 26, 2014

CO NSEL:

KATHLEEN W. CANNON

A L C. ROSENTHAL

R. ALAN L BERDA

GRACE W. KIM

KELLEY DRYE& WARREN LL

3050 K Street, N.W., suite 400


(202) 342-8400


32/40

BLIC VERSION

Table ofContents

Q22

BOLTLESS STEEL SHELVING NITS RE ACKAGES FOR SALE

FROM CHINA IS BEING SOLD OR OFFERED FOR SALE IN THE

NITED STATES AT LESS THAN FAIR VAL E........................................................ ..I

A. INTROD CTION ................................................................................................. ..l

B. CHINESE ROD CERS EX ORT CHANNEL ................................................ ..I

C. EX ORT RICE.................................................................................................... ..2

D. NORMAL VAL E................................................................................................ ..2

1. China is a Non-Market Economy .............................................................. ..2

2. Indonesia is an Appropriate Surrogate Country ......................................... ..3

3. Factors of roduction and Surrogate Values ............................................. ..4

E. MARGIN CALC LATION .................................................................................. _.5

CONCL SION AND REQ EST FOR INVESTIGATION ............................................ ..5

l


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BLIC VERSION

I. BOLTLESS STEEL SHELVING NITS RE ACKAGES FOR SALE FROM

CHINA IS BEING SOLD OR OFFERED FOR SALE IN THE NITED STATES

AT LESS THAN FAIR VAL E

A. Introduction

This petition volume presents information reasonably available to etitioner

demonstrating that the production of boltless steel shelving units prepackaged for sale (Boltless

Steel Shelving) from the eoples Republic of China (China) is being sold at less than fair

value within the meaning section 731 of the Tariff Act of 1930, as amended (the Act). 19

.S.C. 1673. The general and injury information required by section 351.202 of the

regulations of the .S. Department of Commerce (Commerce or the Department), 19 C.F.R.

351.202, and section 207.11 of the regulations of the .S. International Trade Commission

(ITC or the Commission), 19 C.F.R. 207.1 l, can be found in Volume I ofthis etition.

B. Chinese roducers Export Channel

To the best of etitioners knowledge, the subject merchandise from China is

manufactured and exported by a large number of Chinese companies. E etition Vol. 1,

Exhibit GEN-7 (foreign producer list) and GEN-12 (infomiation on foreign producers). For a

significant majority of export sales of Boltless Steel Shelving to the nited States from China,

the Chinese manufacturer sells the subject merchandise to an intermediate reseller in China, and

the intermediate reseller then sells to a .S.-based buyer, typically FOB port of export, China.

S_eeExhibit AD-I, Declaration of Chris Quick at para. 5. The Chinese manufacturer invoices

the intermediate reseller in .S. dollars and is aware that the merchandise is destined for the .S.

market at the time the order is placed based on the specific models being ordered, packaging

requirements, labeling (in English, with C labels, dimensions in inches and weight in pounds),

and identification of the .S.-based buyer in shipping documents among other means. Q at


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BLIC VERSION

para. 7. Accordingly, the transaction between the Chinese manufacturer and the intermediate

reseller is the appropriate export price for purposes of the antidumping analysis.

C. Export rice

etitioner obtained export prices for Boltless Steel Shelving from China based on its own

experience with lost sales to Chinese products as well as on offers for sale during the period of

investigation obtained during the ordinary course of business. E Exhibit AD-1. etitioners

adjusted these prices to reflect, where applicable, value-added tax that is not refunded upon

export, resellermark-up, and extendedpaymentterms. E Exhibit AD-5.

Based on the etitioners experience in purchasing and exporting subject merchandise

from China to the nited States, Chinese exporters are eligible for a rebate of 15 percent of the

17 percent value added tax on steel shelving. $3 Exhibit AD-5, VAT documentation.

etitioner has also provided information on reseller mark-up and extended payment terms for

each sale based on its experience and market knowledge of the Chinese producers, intermediate

resellers,and .S.purchasers. g Exhibit AD-1.

D. Normal Value

1. China is a Non-Market Economv

The Department has consistently treated China as a non-market economy (NME) for

purposes of all antidumping proceedings. fig 19 .S.C. l677(l8)(C). As China remains an

NME country, sales or offers for sale of such or similar merchandise in China or from China to

third countries do not permit calculation of nonrial value under section 773(a) of the Act

I See Certain assenger Vehicle and Light Truck Tires From the eople's Republic of China:

Initiation of Antidumping Duty Investigation, 79 Fed. Reg. 42,292 (July 21, 2014) (treating

China as NME).

2


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BLIC VERSION

(19 .S,C. l677b(c)(l)) or under 19C.F.R. 351.408. In accordance with Department

practice, therefore, petitioner calculated normal value by valuing the factors of production of

Boltless Steel Shelving based on values in a market economy at the same general level of

economic development that produces identical or comparable merchandise.

2. Indonesia is an Agpropriate Surrogate Country

In recent proceedings the Department has consistently identified six countries that are at a

level of economic development that is comparable to China based on each countrys per capita

Gross National Income (GNI) reported by the World Bank: Bulgaria, Colombia, Ecuador,

Indonesia, Thailand, and South Africa.2 etitioner used Indonesia as the surrogate country for

valuing Chinese factors of production.

Indonesia is an appropriate surrogate country because the Department has already

determined that it is at a comparable level of economic development to China based on per-

capita GNl.3 Further, as demonstrated by the availability of surrogate financial statement data to

value overhead, SG&A and profit, there is an industry producing steel frame shelving in

Indonesia. Additionally, surrogate value data are reasonably available to petitioner in order to

conduct a factorsbased analysis of normal value.

2 Q, gg, Memorandum from Christian Marsh to aul iquado, Decision Memorandum for

the reliminary Determination in the Antidumping Duty Investigation of Certain Crystalline

Silicon hotovoltaic roducts from the eople's Republic of China (July 24, 2014) at 7,

accompanying Certain Crystalline Silicon hotovoltaic roducts From the eople's Republic of

China: Affirmative reliminary Detennination of Sales at Less Than Fair Value and

ostponement of Final Determination, 79 Fed. Reg. 44,399 (July 31, 2014).

3Ld.at8.

3


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BLIC VERSION

3. Factors of roduction and Surrogate Values

etitioner does not have access to actual factors of production for the Chinese

manufacturers for which export prices were obtained. Si Exhibit AD-2. As the best

information reasonably available, this petition bases the factors of production for the subject

merchandise on etitioners own experience consuming direct materials, labor, utilities, and

packing for models identical or comparable to the Chinese models sold. fie Exhibit AD-2,

Lamber Declaration at para 3. etitioner believes that its own experience for factors of

production is similar or identical to that of Chinese manufacturers. Q at para. 5.

etitioner obtained surrogate values for the direct materials, labor, utilities and packaging

materials in accordance with normal methods used by the Department inNME proceedings. g

Exhibit AD-3. etitioners relied on the Global Trade Atlas and other publicly available sources

to obtain surrogate values for direct materials, packing materials and certain energy inputs. E

Q. These values are product-specific, tax-exclusive, and generally contemporaneous with the

OI. Labor, certain energy inputs, and freight rates for Indonesia were valued using sources that

were also used by the Department in recent proceedings in which Indonesia was designated as

the surrogate country. Data contemporaneous with the proposed OI were used where possible.

Where contemporaneous data were not available to value factors, etitioner adjusted the

surrogate values using, where appropriate, the surrogate countrys consumer price index or

wholesale price index. Factory overhead, general expenses and profit were based on the

financial results of a manufacturer of a comparable product in the surrogate country. Li.

The calculation of normal value for each product is provided at Exhibit AD-4.

4


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BLIC VERSION

E. Margin Calculation

The comparison of normal values calculated in Exhibit AD-4 to the net export prices

results in dumping margins ranging from 33 to 267 percent, ad valorem, and averaging l23

percent. The dumping margin calculations are provided at Exhibit AD-5.

II. CONCL SION ANDREO EST FOR INVESTIGATION

As demonstrated above, information reasonably available to etitioner demonstrates that

Boltless Steel Shelving from China is being sold and offered for sale in the nited States at less

than fair value. Accordingly, etitioner requests that the Department initiate an antidumping

duty investigation of Boltless Steel Shelving from China.

5


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BLIC VERSION


ITC InvestigationNos.701-TA-Z and 73l-TA



etiti0ners Business roprietary Information for Which


Volume I, ages: 2-4, I0, I2, I6-21, Exhibit List &

Exhibits GEN-1, 2, 6, 9 and I0; and Volume II, Exhibits

AD-1, AD-2, AD-4 and AD-5

BLIC VERSION

BEFORE THE

INTERNATIONAL TRADE ADMINISTRATION

OF THE

.S.DE ARTMENT OF COMMERCE

ANDTHE

.S.INTERNATIONAL TRADE COMMISSION

VOL ME III: S BSIDIES


FROM TI-IE EO LES RE BLIC OF CHINA

ETITIONER:


ECONOMIC CONS LTANTS: CO NSEL:

GINA E. BECK

KATHLEEN W. CANNON

ERIK K. WARGA A L C. ROSENTHAL

LA RA M. BELTRAMI R. ALAN L BERDA

GEORGETOWN ECONOMIC SERVICES, LLC GRACE W. KIM

3050 K Street, N.W. KELLEY DRYE & WARREN LL

Washington, D.C. 20007 3050 K Street, N.W., suite 400

(202) 945-6660

August 26, 2014


(202) 342-8400


39/40

ble ofContents

BOL LESS S EEL SHELVING FROM HE PEOPLES REPUBLIC

OF CHINA IS BEING UNLAWFULLY SUBSIDIZED BY HE

P ge

CHINESE CEN RAL, PROVINCIAL, AND LOCAL GOVERNMEN S .......................l

A. Introduction ............................................................................................................ ..l

B. Inform tion Rel ting to Chinese Producers of Boltless Steel

Shelving ................................................................................................................. ..2

C. Chinese Boltless Steel Shelving Producers Benefit from Subsidies

Conferred t All Levels of Government Pursu nt to Chin s

Industri l Policies................................................................................................... ..2

l. he Chinese Governments Steel Pl ns Encour ge the

Development of the Boltless Steel Shelving Industry ............................... ..3

2. he Chinese Government Controls nd Directs Investment

hroughout Provinces nd Loc lities with the Issu nce of

St te M nd tes nd St te-Owned Enterprises ........................................... ..4

3. Conclusion ................................................................................................. ..8

D. Petitioners Efforts to Obt in Inform tion Reg rding the Boltless

Steel Shelving Industry in Chin nd Chinese Subsidy Progr ms ........................ ..9

1. Difficulty in Obt ining Inform tion ........................................................... ..9

2. Petitioner Ex mined All Inform tion Re son bly

Av il ble ........................................................................................... ..

3. Period of Investig tion nd Alloc tion Period for Non

.....l1

Recurring Subsidies ................................................................................. ..l3

SUBSIDY ALLEGA IONS............................................................................................ ..l4

A. x Progr ms ....................................................................................................... ..I4

I. wo Free, hree H lf Income x Exemptions for

Foreign Invested Enterprises (FIEs) ..................................................... ..14

2. Income x Reductions for Export-Oriented FIEs .............................. ..

. Fin nci l Contribution ............................................................. ..

....18

....l8


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ble ofContents

(continued)

b. Benefit ...................................................................... ..

c. Specificity ................................................................ ..

Income x Reductions nd Exemptions for FIEs B sed on

Geogr phic Loc tion............................................................ ..

. Fin nci l Contribution ............................................. ..

b. Benefit ...................................................................... ..

c. Specificity ................................................................ ..

Loc l Income x Exemption nd Reduction Progr ms for

Productive FIEs ................................................................ ..


b. Benefit ...................................................................... ..

c. Specificity ................................................................ ..

Income x Reduction for High or New echnology

Enterprises ............................................................................ ..


b. Benefit ...................................................................... ..

c. Specificity ................................................................ ..

Income x Deductions for Rese rch nd Development

Expenses Under the Enterprise Income x L w ..................


b. Benefit ...................................................................... ..

c. Specificity ................................................................................ ..

Income x Credits for FIES nd Cert in Domestic lly-

Owned Comp nies Purch sing ChineseM de Equipment


ll

P_ 2s

....19

....19

....................l9

....................2l

.....21

....................2l

....................2l

.................. ..22

.................. ..22

.................. ..23

.................. ..23

.................. ..24

.................. ..24

.................. ..24

.................. ..24

.................. ..25

.................. ..25

....26

.................. ..26

....27

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