[Federal Register Volume 77, Number 88 (Monday, May 7, 2012)]
[Notices]
[Pages 26738-26739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-10954]



[[Page 26738]]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-978]


High Pressure Steel Cylinders From the People's Republic of 
China: Final Affirmative Countervailing Duty Determination

AGENCY: Import Administration, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (the Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of high pressure steel cylinders (steel cylinders) from the People's 
Republic of China (the PRC). For information on the estimated subsidy 
rates, see the ``Suspension of Liquidation'' section, below.

DATES:  Effective Date: May 7, 2012.

FOR FURTHER INFORMATION CONTACT: Christopher Siepmann or Yasmin Nair, 
AD/CVD Operations, Office 1, Import Administration, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
7958 or (202) 482-3813, respectively.

Background

    The U.S. producer that filed the petition for this investigation is 
Norris Cylinder Co. (Petitioner). The mandatory respondent to this 
investigation is Beijing Tianhai Industry Co., Ltd. (BTIC).

Period of Investigation

    The period for which we are measuring subsidies, or period of 
investigation, is January 1, 2010, through December 31, 2010.

Case History

    The following events have occurred since the Preliminary 
Determination.\1\
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    \1\ See High Pressure Steel Cylinders From the People's Republic 
of China: Preliminary Affirmative Countervailing Duty Determination 
and Alignment of Final Countervailing Duty Determination With Final 
Antidumping Duty Determination, 76 FR 64301 (October 18, 2011) 
(``Preliminary Determination'').
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    On October 14, 2011, the Government of China (GOC) filed a partial 
response to the Department's second supplemental questionnaire and 
requested an extension to complete its supplemental questionnaire 
response. The Department granted the GOC's request, and on October 18, 
2011, the GOC submitted its response to the outstanding questions in 
the second supplemental questionnaire. On October 28, 2011, the 
Department issued its third supplemental questionnaire to BTIC and the 
GOC, and on November 14, 2011, it received responses from both.
    On November 18, 2011, interested party Zhejiang Jindun Pressure 
Vessel Co., Ltd. (Jindun) filed a request for a hearing. On November 
22, 2011, the Department denied Jindun's request because it was 
untimely filed, pursuant to section 351.310(c) of the Department's 
regulations.
    The Department conducted verification of BTIC's and the GOC's 
questionnaire responses from December 7 to December 14, 2011, and 
issued verification reports for BTIC and the GOC on January 3, and 
January 17, 2012, respectively.
    The Department issued a post-preliminary analysis memorandum 
regarding three programs on March 14, 2012.
    BTIC, the GOC, and Jindun submitted case briefs on March 23, 2012, 
and Petitioners submitted a rebuttal brief on March 28, 2012.

Scope Comments

    In accordance with the preamble to the Department's regulations, we 
set aside a period of time in our Initiation Notice for parties to 
raise issues regarding product coverage, and encouraged all parties to 
submit comments within 20 calendar days of publication of that notice. 
See Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 
19, 1997), and Initiation Notice, 76 FR at 33239. We did not receive 
any comments.

Scope of the Investigation

    The merchandise covered by the scope of the investigation is 
seamless steel cylinders designed for storage or transport of 
compressed or liquefied gas (``high pressure steel cylinders''). High 
pressure steel cylinders are fabricated of chrome alloy steel 
including, but not limited to, chromium-molybdenum steel or chromium 
magnesium steel, and have permanently impressed into the steel, either 
before or after importation, the symbol of a U.S. Department of 
Transportation, Pipeline and Hazardous Materials Safety Administration 
(``DOT'')-approved high pressure steel cylinder manufacturer, as well 
as an approved DOT type marking of DOT 3A, 3AX, 3AA, 3AAX, 3B, 3E, 3HT, 
3T, or DOT-E (followed by a specific exemption number) in accordance 
with the requirements of sections 178.36 through 178.68 of Title 49 of 
the Code of Federal Regulations, or any subsequent amendments thereof. 
High pressure steel cylinders covered by these investigations have a 
water capacity up to 450 liters, and a gas capacity ranging from 8 to 
702 cubic feet, regardless of corresponding service pressure levels and 
regardless of physical dimensions, finish or coatings.
    Excluded from the scope of the investigation are high pressure 
steel cylinders manufactured to UN-ISO-9809-1 and 2 specifications and 
permanently impressed with ISO or UN symbols. Also excluded from the 
investigation are acetylene cylinders, with or without internal porous 
mass, and permanently impressed with 8A or 8AL in accordance with DOT 
regulations.
    Merchandise covered by the investigation is classified in the 
Harmonized Tariff Schedule of the United States (``HTSUS'') under 
subheading 7311.00.00.30. Subject merchandise may also enter under 
HTSUS subheadings 7311.00.00.60 or 7311.00.00.90. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise under the investigation is 
dispositive.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs by parties to 
this investigation are addressed in the Memorandum to Paul Piquado, 
Assistant Secretary for Import Administration, entitled ``Issues and 
Decision Memorandum for the Final Determination in the Countervailing 
Duty Investigation of High Pressure Steel Cylinders from the People's 
Republic of China'' (April 30, 2012) (hereafter, ``Decision 
Memorandum''), which is hereby adopted by this notice. Attached to this 
notice as an Appendix is a list of the issues that parties have raised 
and to which we have responded in the Decision Memorandum. Parties can 
find a complete discussion of all issues raised in this investigation 
and the corresponding recommendations in this public memorandum, which 
is on file electronically via IA ACCESS. In addition, a complete 
version of the Decision Memorandum is also accessible on the Web at 
http://ia.ita.doc.gov/frn/. The paper copy and electronic version of 
the Decision Memorandum are identical in content.

Suspension of Liquidation

    In accordance with section 703(c)(1)(B)(i)(I) of the Tariff Act of 
1930 (the ``Act''), we calculated an individual rate for each producer/
exporter of the subject merchandise individually investigated. Because 
only one company

[[Page 26739]]

was investigated, that company's rate also serves as the All Others 
rate.
    We determine the total net countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                                   Net
                     Exporter/Manufacturer                       subsidy
                                                                  rate
------------------------------------------------------------------------
Beijing Tianhai Industry Co., Ltd.; Tianjin Tianhai High           15.81
 Pressure Container Co., Ltd.; Langfang Tianhai High Pressure
 Container Co., Ltd...........................................
All Others....................................................     15.81
------------------------------------------------------------------------

    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of all entries of subject 
merchandise from the PRC which were entered or withdrawn from 
warehouse, for consumption on or after October 18, 2011, the date of 
the publication of the Preliminary Determination in the Federal 
Register. In accordance with section 703(d) of the Act, we later issued 
instructions to CBP to discontinue the suspension of liquidation for 
countervailing duty purposes for subject merchandise entered or 
withdrawn from warehouse, on or after February 15, 2012, but to 
continue the suspension of liquidation of all entries from October 18, 
2011, through February 14, 2012.
    We will issue a countervailing duty order and reinstate the 
suspension of liquidation under section 706(a) of the Act if the U.S. 
International Trade Commission (ITC) issues a final affirmative injury 
determination, and will require a cash deposit of estimated 
countervailing duties for such entries in the amounts indicated above. 
If the ITC determines that material injury, or threat of material 
injury, does not exist, this proceeding will be terminated and all 
estimated deposits or securities posted as a result of the suspension 
of liquidation will be refunded or canceled.

ITC Notification

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

Return or Destruction of Proprietary Information

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

    Dated: April 30, 2012.
Ronald K. Lorentzen,
Acting Assistant Secretary for Import Administration.

Appendix

List of Comments and Issues in the Decision Memorandum

Comment 1 Application of the CVD Law to the People's Republic of 
China
Comment 2 Double Counting/Overlapping Remedies
Comment 3 Whether the Department Should Have Selected Jindun as a 
Mandatory or Voluntary Respondent
Comment 4 Whether a Certain Producer of Seamless Tube Steel 
Partially-Owned by SOEs is a Government Authority
Comment 5 Whether a Certain Producer of Seamless Tube Steel Owned by 
Individuals is a Government Authority
Comment 6 Countervailability of Seamless Tube Steel Produced by One 
of BTIC's Affiliates
Comment 7 Countervailability of Inputs Purchased from Domestic 
Trading Companies
Comment 8 Whether to Limit the Benchmark for Seamless Tube Steel to 
Certain Countries or Diameters
Comment 9 Whether to Incorporate VAT and Import Duties into Input 
Benchmarks
Comment 10 Application of Adverse Facts Available to the Electricity 
Benchmark
Comment 11 Alleged Errors in the Department's Calculations for the 
Provision of Electricity for LTAR

[FR Doc. 2012-10954 Filed 5-4-12; 8:45 am]
BILLING CODE 3510-DS-P