[Federal Register Volume 83, Number 117 (Monday, June 18, 2018)]
[Notices]
[Pages 28196-28202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12989]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-086, A-583-864, and A-549-839]


Steel Propane Cylinders From the People's Republic of China, 
Taiwan, and Thailand: Initiation of Less-Than-Fair-Value Investigations

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

DATES: Applicable June 11, 2018.

FOR FURTHER INFORMATION CONTACT: Alex Rosen at (202) 482-7814 (China); 
Laurel LaCivita at (202) 482-4243 or Paul Stolz at (202) 482-4474 
(Taiwan); and Cindy Robinson at (202) 482-3797 or Stephanie Moore at 
(202) 482-3692 (Thailand); AD/CVD Operations, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

The Petitions

    On May 22, 2018, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) petitions concerning imports of steel 
propane cylinders from People's Republic of China (China), Taiwan, and 
Thailand, and a countervailing duty (CVD) petition concerning imports 
of steel propane cylinders from China filed in proper form on behalf of 
Worthington Industries and Manchester Tank & Equipment Co. (the 
petitioners).\1\ The

[[Page 28197]]

petitioners are domestic producers of steel propane cylinders.\2\
---------------------------------------------------------------------------

    \1\ See the petitioners' letter, ``Steel Propane Cylinders from 
the People's Republic of China, Taiwan, and Thailand: Petition for 
the Imposition of Antidumping and Countervailing Duties,'' dated May 
22, 2018 (the Petitions). For the purposes of the instant notice, 
all references to `the Petitions' refer specifically to the AD 
Petitions.
    \2\ See Volume I of the Petitions, at 2-3.
---------------------------------------------------------------------------

    The petitioners amended the scope of the petitions on May 24, 
2018.\3\ On May 25 and 31, 2018, Commerce requested supplemental 
information pertaining to certain areas of the petitions.\4\ The 
petitioners filed responses to these requests on May 30 and June 1, 
2018.\5\
---------------------------------------------------------------------------

    \3\ See the petitioners' letter, ``Steel Propane Cylinders from 
the People's Republic of China, Taiwan, and Thailand: Petitioners' 
Amendment to Volume I Relating to General Issues,'' dated May 24, 
2018 (Scope Amendment).
    \4\ See Commerce's letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Steel Propane 
Cylinders from the People's Republic of China, Taiwan, and Thailand: 
Supplemental Questions'' (General Issues Supplemental 
Questionnaire); ``Petition for the Imposition of Antidumping Duties 
on Imports of Steel Propane Cylinders from the People's Republic of 
China: Supplemental Questions'' (China AD Supplemental 
Questionnaire); ``Petition for the Imposition of Antidumping Duties 
on Imports of Steel Propane Cylinders from Taiwan: Supplemental 
Questions'' (Taiwan Supplemental Questionnaire); ``Petition for the 
Imposition of Antidumping Duties on Imports of Steel Propane 
Cylinders from Thailand: Supplemental Questions'' (Thailand 
Supplemental Questionnaire); all four of these documents are dated 
May 25, 2018. See also memoranda, ``Petition for the Imposition of 
Antidumping Duties on Imports of Steel Propane Cylinders from China: 
Telephone Call to the Petitioners Regarding Antidumping Petition,'' 
and, ``Petition for the Imposition of Antidumping Duties on Imports 
of Steel Propane Cylinders from Thailand: Telephone Call to the 
Petitioners Regarding Antidumping Petition,'' both dated May 31, 
2018.
    \5\ See the petitioners' letters, ``Steel Propane Cylinders from 
the People's Republic of China, Taiwan, and Thailand: Petitioners' 
Supplement to Volume I Relating to General Issues'' (General Issues 
Supplement); ``Steel Propane Cylinders from the People's Republic of 
China, Taiwan, and Thailand: Petitioners' Supplement to Volume II 
Related to China'' (China AD Supplement); ``Steel Propane Cylinders 
from the People's Republic of China, Taiwan, and Thailand: 
Petitioners' Supplement to Volume III Related to Taiwan'' (Taiwan AD 
Supplement); ``Steel Propane Cylinders from the People's Republic of 
China, Taiwan, and Thailand: Petitioners' Supplement to Volume IV 
Related to Thailand'' (Thailand AD Supplement); all four of these 
documents are dated May 30, 2018. See also the petitioners' letters, 
``Steel Propane Cylinders from the People's Republic of China, 
Taiwan, and Thailand: Petitioners' Response Regarding the Exchange 
Rate Used for Thailand/Volume IV'' (Second Thailand AD Supplement) 
and, ``Steel Propane Cylinders from the People's Republic of China, 
Taiwan, and Thailand: Petitioners' Exchange Rate Response Regarding 
China/Volume II'' (Second China AD Supplement), each dated June 1, 
2018.
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that imports of steel propane 
cylinders from China, Taiwan, and Thailand are being, or are likely to 
be, sold in the United States at less than fair value within the 
meaning of section 731 of the Act, and that such imports are materially 
injuring, or threatening material injury to, the domestic industry 
producing steel propane cylinders in the United States. Consistent with 
section 732(b)(1) of the Act, the petitions are accompanied by 
information reasonably available to the petitioners supporting their 
allegations.
    Commerce finds that the petitioners filed the petitions on behalf 
of the domestic industry because the petitioners are interested parties 
as defined in section 771(9)(C) of the Act. We also find that the 
petitioners demonstrated sufficient industry support with respect to 
the initiation of the AD investigations that the petitioners are 
requesting.\6\
---------------------------------------------------------------------------

    \6\ See the ``Determination of Industry Support for the 
Petitions'' section, infra.
---------------------------------------------------------------------------

Periods of Investigation

    Because the petitions were filed on May 22, 2018, pursuant to 19 
CFR 351.204(b)(1), the period of investigation (POI) for the Taiwan and 
Thailand investigations is April 1, 2017, through March 31, 2018.\7\ 
Because China is a non-market economy (NME) country, pursuant to 19 CFR 
351.204(b)(1), the POI for the China investigation is October 1, 2017, 
through March 31, 2018.
---------------------------------------------------------------------------

    \7\ See 19 CFR 351.204(b)(1).
---------------------------------------------------------------------------

Scope of the Investigations

    The products covered by these investigations are steel propane 
cylinders from China, Taiwan, and Thailand. For a full description of 
the scope of these investigations, see the Appendix to this notice.

Comments on Scope of the Investigations

    During our review of the petitions, Commerce issued questions to, 
and received responses from, the petitioners pertaining to the proposed 
scope to ensure that the scope language in the petitions is an accurate 
reflection of the product for which the domestic industry is seeking 
relief.\8\ As a result of these exchanges, the scope of the petitions 
was modified to clarify the description of merchandise covered by the 
petitions. The description of the merchandise covered by this 
initiation, as described in the Appendix to this notice, reflects these 
clarifications.
---------------------------------------------------------------------------

    \8\ See General Issues Supplemental Questionnaire, at 1-3 and 
General Issues Supplement, at 3-12.
---------------------------------------------------------------------------

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (scope), including comments on whether it is 
appropriate to refer to the subject merchandise as ``steel propane 
cylinders,'' (emphasis added) or just as ``steel cylinders,'' given 
that the petitioners intend to cover all products that meet the 
physical description of the scope regardless of whether they ultimately 
contain or transport compressed or liquefied propane gas.\9\ Commerce 
will consider all comments received from interested parties and, if 
necessary, will consult with interested parties prior to the issuance 
of the preliminary determinations. If scope comments include factual 
information,\10\ all such factual information should be limited to 
public information. To facilitate preparation of its questionnaires, 
Commerce requests that all interested parties submit such comments by 
5:00 p.m. Eastern Time (ET) on July 2, 2018, which is the next business 
day after 20 calendar days from the signature date of this notice.\11\ 
Any rebuttal comments, which may include factual information, must be 
filed by 5:00 p.m. ET on July 11, 2018, which is 10 calendar days from 
the initial comments deadline.\12\
---------------------------------------------------------------------------

    \9\ See Antidumping Duties; Countervailing Duties; Final Rule, 
62 FR 27296, 27323 (May 19, 1997); see also General Issues 
Supplement, at 4 and 8-9. On June 11, 2018, the petitioners filed 
proposed revisions to the scope language for Commerce's 
consideration. See letter from the petitioners, ``Steel Propane 
Cylinders from the People's Republic of China, Taiwan, and 
Thailand--Amended Scope Language,'' dated June 11, 2018.
    \10\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \11\ See 19 CFR 351.303(b).
    \12\ Id.
---------------------------------------------------------------------------

    Commerce requests that any factual information the parties consider 
relevant to the scope of the investigations be submitted during this 
time period. However, if a party subsequently finds that additional 
factual information pertaining to the scope of the investigations may 
be relevant, the party may contact Commerce and request permission to 
submit the additional information. All such comments must be filed on 
the records of each of the concurrent AD and CVD investigations, in 
accordance with the filing requirements, discussed immediately below.

Filing Requirements

    All submissions to Commerce must be filed electronically using 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS).\13\

[[Page 28198]]

An electronically filed document must be received successfully in its 
entirety by the time and date it is due. Documents exempted from the 
electronic submission requirements must be filed manually (i.e., in 
paper form) with Enforcement and Compliance's APO/Dockets Unit, Room 
18022, U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230, and stamped with the date and time of receipt by 
the applicable deadlines.
---------------------------------------------------------------------------

    \13\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
---------------------------------------------------------------------------

Comments on Product Characteristics for AD Questionnaires

    Commerce requests comments from interested parties regarding the 
appropriate physical characteristics of steel propane cylinders to be 
reported in response to Commerce's AD questionnaires. This information 
will be used to identify the key physical characteristics of the 
merchandise under consideration in order to report the relevant costs 
of production accurately as well as to develop appropriate product-
comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics, and (2) product-comparison criteria. We note that it 
is not always appropriate to use all product characteristics as 
product-comparison criteria. We base product-comparison criteria on 
meaningful commercial differences among products. In other words, 
although there may be some physical product characteristics utilized by 
manufacturers to describe steel propane cylinders, it may be that only 
a select few product characteristics take into account commercially 
meaningful physical characteristics. In addition, interested parties 
may comment on the order in which the physical characteristics should 
be used in matching products. Generally, Commerce attempts to list the 
most important physical characteristics first and the least important 
characteristics last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on July 2, 2018, 
which is the first business day after 20 calendar days from the 
signature date of this notice. Any rebuttal comments must be filed by 
5:00 p.m. ET on July 11, 2018. All comments and submissions to Commerce 
must be filed electronically using ACCESS, as explained above, on the 
records of the China, Taiwan, and Thailand less-than-fair-value 
investigations.

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) 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. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers, as a whole, of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\14\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\15\
---------------------------------------------------------------------------

    \14\ See section 771(10) of the Act.
    \15\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
---------------------------------------------------------------------------

    Section 771(10) of the Act defines the 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 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioners do not 
offer a definition of the domestic like product distinct from the scope 
of the investigations.\16\ Based on our analysis of the information 
submitted on the record, we have determined that steel propane 
cylinders, as defined in the scope, constitute a single domestic like 
product, and we have analyzed industry support in terms of that 
domestic like product.\17\
---------------------------------------------------------------------------

    \16\ See Volume I of the Petitions, at 10-12; see also General 
Issues Supplement, at 13-18.
    \17\ For a discussion of the domestic like product analysis as 
applied to these cases and information regarding industry support, 
see Attachment II, ``Analysis of Industry Support for the 
Antidumping and Countervailing Duty Petitions Covering Steel Propane 
Cylinders from the People's Republic of China, Taiwan, and 
Thailand'' (Attachment II) of the following Antidumping Duty 
Investigation Initiation Checklists: ``Steel Propane Cylinders from 
the People's Republic of China'' (China AD Initiation Checklist); 
``Antidumping Duty Investigation Initiation Checklist: Steel Propane 
Cylinders from Taiwan'' (Taiwan AD Initiation Checklist); and 
``Antidumping Duty Investigation Initiation Checklist: Steel Propane 
Cylinders from Thailand'' (Thailand AD Initiation Checklist) 
(collectively, AD Initiation Checklists). These checklists are dated 
concurrently with this notice and on file electronically via ACCESS. 
Access to documents filed via ACCESS is also available in the 
Central Records Unit, Room B8024 of the main Department of Commerce 
building.
---------------------------------------------------------------------------

    In determining whether the petitioners have standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigations,'' in the Appendix to 
this notice. To establish industry support, the petitioners provided 
their own production of the domestic like product in 2017.\18\ The 
petitioners state that there are no other known producers of steel 
propane cylinders in the United States; therefore, the petitions are 
supported by 100 percent of the U.S. industry.\19\
---------------------------------------------------------------------------

    \18\ See Volume I of the Petitions, at 3-4 and Exhibit GEN-2.
    \19\ Id. at 3-4 and Exhibits GEN-1 and GEN-2. For further 
discussion, see AD Initiation Checklists, at Attachment II.
---------------------------------------------------------------------------

    Our review of the data provided in the petitions and other 
information readily available to Commerce indicates that the 
petitioners have established industry support for the petitions.\20\ 
First, the petitions established support from

[[Page 28199]]

domestic producers (or workers) accounting for more than 50 percent of 
the total production of the domestic like product and, as such, 
Commerce is not required to take further action in order to evaluate 
industry support (e.g., polling).\21\ Second, the domestic producers 
(or workers) have met the statutory criteria for industry support under 
section 732(c)(4)(A)(i) of the Act because the domestic producers (or 
workers) who support the petitions account for at least 25 percent of 
the total production of the domestic like product.\22\ Finally, the 
domestic producers (or workers) have met the statutory criteria for 
industry support under section 732(c)(4)(A)(ii) of the Act because the 
domestic producers (or workers) who support the petitions 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 petitions.\23\ Accordingly, Commerce determines that 
the petitions were filed on behalf of the domestic industry within the 
meaning of section 732(b)(1) of the Act.
---------------------------------------------------------------------------

    \20\ Id.
    \21\ Id.; see also section 732(c)(4)(D) of the Act.
    \22\ See AD Initiation Checklists, at Attachment II.
    \23\ Id.
---------------------------------------------------------------------------

    Commerce finds that the petitioners filed the petitions on behalf 
of the domestic industry because they are interested parties as defined 
in section 771(9)(C) of the Act, and they have demonstrated sufficient 
industry support with respect to the AD investigations that they are 
requesting that Commerce initiate.\24\
---------------------------------------------------------------------------

    \24\ Id.
---------------------------------------------------------------------------

Allegations and Evidence of Material Injury and Causation

    The petitioners allege that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (NV). In addition, the 
petitioners allege that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.\25\
---------------------------------------------------------------------------

    \25\ See Volume I of the Petitions, at 13-14 and Exhibit GEN-1.
---------------------------------------------------------------------------

    The petitioners contend that the industry's injured condition is 
illustrated by a significant and increasing volume of imports from the 
subject countries; the domestic industry's reduced market share; 
underselling and price depression or suppression; a negative impact on 
the domestic industry's production, shipments, capacity utilization, 
and financial performance; and lost sales and revenues.\26\ We have 
assessed the allegations and supporting evidence regarding material 
injury, threat of material injury, and causation, and we have 
determined that these allegations are properly supported by adequate 
evidence, and meet the statutory requirements for initiation.\27\
---------------------------------------------------------------------------

    \26\ Id., at 9-25 and Exhibits GEN-1, GEN-7 through GEN-15; see 
also General Issues Supplement at 3 and Exhibit GEN-Supp-2.
    \27\ See AD Initiation Checklists, at Attachment III, ``Analysis 
of Allegations and Evidence of Material Injury and Causation for the 
Antidumping and Countervailing Duty Petitions Covering Steel Propane 
Cylinders from the People's Republic of China, Taiwan, and 
Thailand'' (Attachment III).
---------------------------------------------------------------------------

Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at less 
than fair value upon which Commerce based its decision to initiate AD 
investigations of imports of steel propane cylinders from China, 
Taiwan, and Thailand. The sources of data for the deductions and 
adjustments relating to U.S. price and NV are discussed in greater 
detail in the country-specific initiation checklists.

Export Price

    For China and Thailand, the petitioners based export price (EP) on 
pricing information for steel propane cylinders produced in, and 
exported from, those countries and sold or offered for sale in the 
United States.\28\ For China, the petitioners also based EP on the 
average unit values (AUVs) of publicly-available import data.\29\ For 
Taiwan, the petitioners based EP on the AUV of publicly-available 
import data.\30\
---------------------------------------------------------------------------

    \28\ See China AD Initiation Checklist and Thailand AD 
Initiation Checklist.
    \29\ See China AD Initiation Checklist.
    \30\ See Taiwan AD Initiation Checklist.
---------------------------------------------------------------------------

    Where appropriate, the petitioners made deductions from U.S. price 
for movement and other expenses consistent with the terms of sale.\31\
---------------------------------------------------------------------------

    \31\ See AD Initiation Checklists.
---------------------------------------------------------------------------

Normal Value

    For Taiwan and Thailand, the petitioners based normal value (NV) on 
home market prices obtained through market research for steel propane 
cylinders produced in and sold, or offered for sale in each country 
within the proposed POI.\32\ The petitioners calculated net home market 
prices, adjusting as appropriate for delivery terms and other price 
adjustments.\33\ For Taiwan and Thailand, the petitioners provided 
information indicating that the prices were below the cost of 
production (COP), and therefore, the petitioners also calculated NV 
based on constructed value (CV).\34\ For further discussion of COP and 
NV based on CV, see the section ``Normal Value Based on Constructed 
Value'' below.\35\
---------------------------------------------------------------------------

    \32\ See Taiwan AD Initiation Checklist and Thailand AD 
Initiation Checklist.
    \33\ Id.
    \34\ Id.
    \35\ In accordance with section 505(a) of the Trade Preferences 
Extension Act of 2015, amending section 773(b)(2) of the Act, for 
this investigation, Commerce will request information necessary to 
calculate the CV and cost of production (COP) to determine whether 
there are reasonable grounds to believe or suspect that sales of the 
foreign like product have been made at prices that represent less 
than the COP of the product. Commerce no longer requires a COP 
allegation to conduct this analysis.
---------------------------------------------------------------------------

    With respect to China, Commerce considers China to be an NME 
country.\36\ In accordance with section 771(18)(C)(i) of the Act, any 
determination that a foreign country is an NME country shall remain in 
effect until revoked by Commerce. Therefore, we continue to treat China 
as an NME country for purposes of the initiation of this investigation. 
Accordingly, NV in China is appropriately based on factors of 
production (FOPs) valued in a surrogate market economy country, in 
accordance with section 773(c) of the Act.\37\
---------------------------------------------------------------------------

    \36\ See Antidumping Duty Investigation of Certain Aluminum Foil 
from the People's Republic of China: Affirmative Preliminary 
Determination of Sales at Less-Than-Fair Value and Postponement of 
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and 
accompanying decision memorandum, China's Status as a Non-Market 
Economy, unchanged in Certain Aluminum Foil from the People's 
Republic of China: Final Determination of Sales at Less Than Fair 
Value, 83 FR 9282 (March 5, 2018).
    \37\ See China AD Initiation Checklist.
---------------------------------------------------------------------------

    The petitioners claim that Thailand is an appropriate surrogate 
country for China because it is a market economy country that is at a 
level of economic development comparable to that of China and it is a 
significant producer of identical merchandise.\38\ The petitioners 
provided publicly-available information from Thailand to value all FOPs 
and derive surrogate financial ratios.\39\ Therefore, based on the 
information provided by the petitioners, we determine that it is 
appropriate to use Thailand as the primary surrogate country for 
initiation purposes.
---------------------------------------------------------------------------

    \38\ See Volume II of the Petitions, at 10-12.
    \39\ Id., at Exhibit AD-PRC-5 (A-G), and China AD Supplement 
Exhibit AD-PRC-Supp-4-G.
---------------------------------------------------------------------------

    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

[[Page 28200]]

Factors of Production

    Because information regarding the volume of inputs consumed by 
producers/exporters in China was not reasonably available, the 
petitioners relied on their own product-specific consumption rates to 
estimate the FOPs for the manufactuers in China.\40\ The petitioners 
valued the estimated FOPs using surrogate values from Thailand, as 
noted above.\41\ The petitioners used the average POI exchange rate to 
convert the data to U.S. dollars.\42\ The petitioners relied upon the 
financial statements of three Thai producers of steel propane 
cylinders, to value overhead; selling, general, and administrative 
(SG&A) expenses; and profit.\43\
---------------------------------------------------------------------------

    \40\ See China AD Initiation Checklist.
    \41\ Id.
    \42\ Id.
    \43\ Id.
---------------------------------------------------------------------------

Normal Value Based on Constructed Value

    As noted above, for Taiwan and Thailand, the petitioners obtained 
home market prices but demonstrated that these prices were below the 
COP during the POI; therefore, the petitioners also based NV on CV 
pursuant to section 773(a)(4) of the Act. Pursuant to section 773(e) of 
the Act, CV consists of the cost of manufacturing (COM); SG&A expenses; 
financial expenses; profit; and packing expenses.
    For Taiwan, the petitioners calculated the COM based on a domestic 
producer's own input factors of production and usage rates for raw 
materials, labor, energy, and packing.\44\ The petitioners valued the 
input factors of production using publicly available data on costs 
specific to Taiwan, during the proposed POI.\45\ Specifically, the 
petitioners based prices for raw material and packing inputs on 
publicly available import data for Taiwan.\46\ The petitioners valued 
labor and energy costs using publicly available sources for Taiwan.\47\ 
The petitioners calculated factory overhead, SG&A, financial expenses, 
and profit for Taiwan based on the experience of producers in Taiwan of 
comparable merchandise (e.g., light steel frames, fire-proof doors, 
various machines, metal building structure assembly, steel wire 
products, other metalwork, etc.).\48\
---------------------------------------------------------------------------

    \44\ See Taiwan AD Initiation Checklist.
    \45\ Id.
    \46\ Id.
    \47\ Id.
    \48\ Id.
---------------------------------------------------------------------------

    For Thailand, the petitioners calculated the COM based on the 
domestic producers' own input factors of production and usage rates for 
raw materials, labor, energy, and packing.\49\ The petitioners valued 
input factors of production using publicly available data on costs 
specific to Thailand, during the proposed POI.\50\ Specifically, the 
petitioners based the prices for raw material and packing inputs on 
publicly available import data for Thailand.\51\ The petitioners valued 
labor and energy costs using publicly available sources for 
Thailand.\52\ The petitioners calculated factory overhead, SG&A 
(including financial expenses), and profit for Thailand based on the 
experience of a Thai producer of steel propane cylinders.\53\
---------------------------------------------------------------------------

    \49\ See Thailand AD Initiation Checklist.
    \50\ Id.
    \51\ Id.
    \52\ Id.
    \53\ Id.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by the petitioners, there is reason to 
believe that imports of steel propane cylinders from China, Taiwan, and 
Thailand are being, or are likely to be, sold in the United States at 
less than fair value. Based on comparisons of EP to NV in accordance 
with sections 772 and 773 of the Act, the estimated dumping margins for 
steel propane cylinders for each of the countries covered by this 
initiation are as follows: (1) China: 55.41 to 108.60 percent; \54\ (2) 
Taiwan: 27.19 to 66.20 percent; \55\ and (3) Thailand: 47.67 to 122.48 
percent.\56\
---------------------------------------------------------------------------

    \54\ See China AD Initiation Checklist.
    \55\ See Taiwan AD Initiation Checklist.
    \56\ See Thailand AD Initiation Checklist.
---------------------------------------------------------------------------

Initiation of Less-Than-Fair-Value Investigations

    Based upon the examination of the petitions, we find that the 
petitions meet the requirements of section 732 of the Act. Therefore, 
we are initiating AD investigations to determine whether imports of 
steel propane cylinders from China, Taiwan, and Thailand are being, or 
are likely to be, sold in the United States at less than fair value. In 
accordance with section 733(b)(1)(A) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determinations no later than 140 days after the date of this 
initiation.

Respondent Selection

    The petitions named ten companies in China, eleven companies in 
Taiwan, and four companies in Thailand as producers/exporters of steel 
propane cylinders.\57\ Following standard practice in AD investigations 
involving market economy countries, in the event Commerce determines 
that the number of companies is large and it cannot individually 
examine each company based upon Commerce's resources, where 
appropriate, Commerce intends to select respondents based on U.S. 
Customs and Border Protection (CBP) data for U.S. imports of steel 
propane cylinders from Taiwan and Thailand during the POI under the 
appropriate Harmonized Tariff Schedule of the United States numbers 
listed in the ``Scope of the Investigations,'' in the Appendix.
---------------------------------------------------------------------------

    \57\ See Volume I of the Petitions, at 9 and Exhibit GEN-7.
---------------------------------------------------------------------------

    We also intend to release the CBP data under Administrative 
Protective Order (APO) to all parties with access to information 
protected by APO on the record within five business days of publication 
of this Federal Register notice. Comments regarding the CBP data and 
respondent selection should be submitted seven calendar days after the 
placement of the CBP data on the record of these investigations. 
Parties wishing to submit rebuttal comments should submit those 
comments five calendar days after the deadline for the initial 
comments. Interested parties must submit applications for disclosure 
under APO in accordance with 19 CFR 351.305(b). Instructions for filing 
such applications may be found on Commerce's website at http://enforcement.trade.gov/apo.
    All respondent selection comments must be filed electronically 
using ACCESS. An electronically-filed document must be received 
successfully, in its entirety, by Commerce's electronic records system, 
ACCESS, no later than 5:00 p.m. ET on the dates noted above. We intend 
to make our decisions regarding respondent selection within 20 days of 
publication of this notice.
    With respect to respondent selection for China, we intend to issue 
quantity and value (Q&V) questionnaires to producers/exporters of 
merchandise under consideration in accordance with our standard 
practice for respondent selection in AD cases involving NME countries. 
In the event Commerce determines that it cannot individually examine 
each company, where appropriate, Commerce intends to select mandatory 
respondents based on the responses received. For the China 
investigation, Commerce will request Q&V information from known 
exporters and producers identified with complete contact information in 
the petitions. In addition, Commerce will post the Q&V questionnaires 
along with filing instructions on Enforcement and Compliance's website 
at http://www.trade.gov/enforcement/news.asp.

[[Page 28201]]

    Producers/exporters of steel propane cylinders from China that do 
not receive Q&V questionnaires by mail may still submit a response to 
the Q&V questionnaire and can obtain a copy of the Q&V questionnaire 
from Enforcement & Compliance's website. The Q&V response must be 
submitted by the relevant exporters/producers in China no later than 
5:00 p.m. ET on June 25, 2018, which is two weeks from the signature 
date of this notice. All Q&V responses must be filed electronically via 
ACCESS.

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
exporters and producers must submit a separate-rate application. The 
specific requirements for submitting a separate-rate application in 
this investigation are outlined in detail in the application itself, 
which is available on Commerce's website at http://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate 
application will be due 30 days after publication of this initiation 
notice. Exporters and producers who submit a separate-rate application 
and have been selected as mandatory respondents will be eligible for 
consideration for separate-rate status only if they respond to all 
parts of Commerce's AD questionnaire as mandatory respondents. Commerce 
requires that companies from China submit a response to both the Q&V 
questionnaire and the separate-rate application by the respective 
deadlines in order to receive consideration for separate-rate status. 
Companies not filing a timely Q&V response will not receive separate-
rate consideration.

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

    {w{time} hile continuing the practice of assigning separate 
rates only to exporters, all separate rates that the Department will 
now assign in its NME Investigation will be specific to those 
producers that supplied the exporter during the period of 
investigation. Note, however, that one rate is calculated for the 
exporter and all of the producers which supplied subject merchandise 
to it during the period of investigation. This practice applies both 
to mandatory respondents receiving an individually calculated 
separate rate as well as the pool of non-investigated firms 
receiving the weighted-average of the individually calculated rates. 
This practice is referred to as the application of ``combination 
rates'' because such rates apply to specific combinations of 
exporters and one or more producers. The cash-deposit rate assigned 
to an exporter will apply only to merchandise both exported by the 
firm in question and produced by a firm that supplied the exporter 
during the period of investigation.\58\
---------------------------------------------------------------------------

    \58\ See Policy Bulletin 05.1 at 6 (emphasis added).

Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A)(i) of the Act and 19 CFR 
351.202(f), copies of the public version of the petitions have been 
provided to the governments of China, Taiwan, and Thailand via ACCESS. 
To the extent practicable, we will attempt to provide a copy of the 
public version of the petitions to each exporter named in the 
petitions, as provided under 19 CFR 351.203(c)(2).

ITC Notification

    We will notify the ITC of our initiation, as required by section 
732(d) of the Act.

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the petitions were filed, whether there is a reasonable 
indication that imports of steel propane cylinders from China, Taiwan, 
and/or Thailand are materially injuring, or threatening material injury 
to, a U.S. industry.\59\ A negative ITC determination for any country 
will result in the investigation being terminated with respect to that 
country.\60\ Otherwise, the investigations will proceed according to 
statutory and regulatory time limits.
---------------------------------------------------------------------------

    \59\ See section 733(a) of the Act.
    \60\ Id.
---------------------------------------------------------------------------

Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
Evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Any party, when submitting factual 
information, must specify under which subsection of 19 CFR 
351.102(b)(21) the information is being submitted \61\ and, if the 
information is submitted to rebut, clarify, or correct factual 
information already on the record, to provide an explanation 
identifying the information already on the record that the factual 
information seeks to rebut, clarify, or correct.\62\ Time limits for 
the submission of factual information are addressed in 19 CFR 351.301, 
which provides specific time limits based on the type of factual 
information being submitted. Interested parties should review the 
regulations prior to submitting factual information in these 
investigations.
---------------------------------------------------------------------------

    \61\ See 19 CFR 351.301(b).
    \62\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by the Secretary. In general, an extension request 
will be considered untimely if it is filed after the expiration of the 
time limit established under 19 CFR 351.301. For submissions that are 
due from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which extension requests will be considered untimely for 
submissions which are due from multiple parties simultaneously. In such 
a case, we will inform parties in the letter or memorandum setting 
forth the deadline (including a specified time) by which extension 
requests must be filed to be considered timely. An extension request 
must be made in a separate, stand-alone submission; under limited 
circumstances we will grant untimely-filed requests for the extension 
of time limits. Parties should review Extension of Time Limits; Final 
Rule, 78 FR 57790 (September 20, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to 
submitting factual information in these investigations.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\63\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\64\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \63\ See section 782(b) of the Act.
    \64\ See also Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to 
frequently asked questions regarding the Final Rule are available at 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On

[[Page 28202]]

January 22, 2008, Commerce published Antidumping and Countervailing 
Duty Proceedings: Documents Submission Procedures; APO Procedures, 73 
FR 3634 (January 22, 2008). Parties wishing to participate in these 
investigations should ensure that they meet the requirements of these 
procedures (e.g., the filing of letters of appearance as discussed at 
19 CFR 351.103(d)).
    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: June 11, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix--Scope of the Investigations

    The merchandise covered by these investigations is steel 
cylinders for compressed or liquefied propane gas (steel propane 
cylinders) meeting the requirements of, or produced to meet the 
requirements of, U.S. Department of Transportation (USDOT) 
Specifications 4B, 4BA, or 4BW, or Transport Canada Specification 
4BM, 4BAM, or 4BWM, or United Nations pressure receptacle standard 
ISO 4706. The scope includes steel propane cylinders regardless of 
whether they have been certified to these specifications before 
importation. Steel propane cylinders range from 2.5 pound nominal 
gas capacity (approximate 6 pound water capacity and approximate 4-6 
pound tare weight) to 42 pound nominal gas capacity (approximate 100 
pound water capacity and approximate 28-32 pound tare weight). Steel 
propane cylinders have two or fewer ports and may be imported 
assembled or unassembled (i.e., welded or brazed before or after 
importation), with or without all components (including collars, 
valves, gauges, tanks, foot rings, and overfill prevention devices), 
and coated or uncoated. Also included within the scope are drawn 
cylinder halves, unfinished propane cylinders, collars, and foot 
rings for steel propane cylinders.
    An ``unfinished'' or ``unassembled'' propane cylinder includes 
drawn cylinder halves that have not been welded into a cylinder, 
cylinders that have not had flanges welded into the port hole(s), 
cylinders that are otherwise complete but have not had collars or 
foot rings welded to them, otherwise complete cylinders without a 
valve assembly attached, and cylinders that are otherwise complete 
except for testing, certification, and/or marking.
    These investigations also cover steel propane cylinders that 
meet, are produced to meet, or are certified as meeting, other U.S. 
or Canadian government, international, or industry standards 
(including, for example, American Society of Mechanical Engineers 
(ASME), or American National Standard Institute (ANSI)), if they 
also meet, are produced to meet, or are certified as meeting USDOT 
Specification 4B, 4BA, or 4BW, or Transport Canada Specification 
4BM, 4BAM, or 4BWM, or a United Nations pressure receptacle standard 
ISO 4706.
    Subject merchandise also includes steel propane cylinders that 
have been further processed in a third country, including but not 
limited to, attachment of collars, foot rings, or handles by welding 
or brazing, heat treatment, painting, testing, certification, or any 
other processing that would not otherwise remove the merchandise 
from the scope of the investigations if performed in the country of 
manufacture of the in-scope steel propane cylinders.
    Specifically excluded are seamless steel propane cylinders and 
propane cylinders made from stainless steel (i.e., steel containing 
at least 10.5 percent chromium by weight and less than 1.2 percent 
carbon by weight), aluminum, or composite fiber material. Composite 
fiber material is material consisting of the mechanical combination 
of two components: Fiber (typically glass, carbon, or aramid 
(synthetic polymer)) and a matrix material (typically polymer resin, 
ceramic, or metallic).
    The merchandise subject to these investigations is properly 
classified under statistical reporting numbers 7311.00.0060 and 
7311.00.0090 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Although the HTSUS statistical reporting numbers are 
provided for convenience and customs purposes, the written 
description of the merchandise is dispositive.

[FR Doc. 2018-12989 Filed 6-15-18; 8:45 am]
 BILLING CODE 3510-DS-P