[Federal Register Volume 83, Number 208 (Friday, October 26, 2018)]
[Notices]
[Pages 54086-54088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-23453]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-087]
Steel Propane Cylinders From the People's Republic of China:
Preliminary Affirmative Countervailing Duty Determination and Alignment
of Final Determination With Final Antidumping Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that countervailable subsidies are being provided to producers and
exporters of steel propane cylinders from the People's Republic of
China (China) for the period of investigation December 1, 2017, through
January 31, 2017. Interested parties are invited to comment on this
preliminary determination.
DATES: Applicable October 26, 2018.
FOR FURTHER INFORMATION CONTACT: Samuel Brummitt, AD/CVD Operations,
Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone: (202) 482-7851.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on June 18,
2018.\1\ On August 1, 2018, Commerce postponed the preliminary
determination of this investigation until October 19, 2018.\2\ For a
complete description of the events that followed the initiation of this
investigation, see the Preliminary Decision Memorandum.\3\ A list of
topics discussed in the Preliminary Decision Memorandum is included as
Appendix II to this notice. The Preliminary Decision Memorandum is a
public document and is on file electronically via Enforcement and
Compliance's Antidumping and Countervailing Duty Centralized Electronic
Service System (ACCESS). ACCESS is available to registered users at
http://access.trade.gov, and is available to all parties in the Central
Records Unit, Room B8024 of the main Department of Commerce building.
In addition, a complete version of the Preliminary Decision Memorandum
can be accessed directly at http://enforcement.trade.gov/frn/. The
signed and electronic versions of the Preliminary Decision Memorandum
are identical in content.
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\1\ See Steel Propane Cylinders from the People's Republic of
China: Initiation of Countervailing Duty Investigation, 83 FR 28189
(June 18, 2018) (Initiation Notice).
\2\ See Steel Propane Cylinders from the People's Republic of
China: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 83 FR 37463 (August 1, 2018).
\3\ See Memorandum, ``Decision Memorandum for the Preliminary
Affirmative Determination in the Countervailing Duty Investigation
of Steel Propane Cylinders from the People's Republic of China,''
dated concurrently with, and hereby adopted by, this notice
(Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are steel propane
cylinders from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage, (i.e., scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the AD and CVD
investigations in the preliminary determination of the companion AD
investigation.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, we preliminarily determines that there is a subsidy,
i.e., a financial contribution by an ``authority'' that gives rise to a
benefit to the recipient, and that the subsidy is specific.\6\ In
making these findings, we relied, in part, on facts available and,
because we find that one or more producers and exporters did not act to
the best of their ability to respond our requests for information, we
drew an adverse inference where appropriate in selecting from among the
facts otherwise available.\7\ For further information, see ``Use of
Facts Otherwise Available and Adverse Inferences'' in the Preliminary
Decision Memorandum.
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\6\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
\7\ See sections 776(a) and (b) of the Act.
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Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is
aligning the final countervailing duty (CVD) determination in this
investigation with the final determination in the companion antidumping
duty (AD) investigation of steel propane cylinders from China based on
a request made by the petitioners.\8\ Consequently, the final CVD
determination will be issued on the same date as the final AD
determination, which is currently scheduled to be issued no later than
March 4, 2019, unless postponed.\9\
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\8\ See Letter from the petitioners, ``Steel Propane Cylinders
from the People's Republic of China--Petitioners'' Request to
Postpone Preliminary Determination,'' dated July 20, 2018 (Request
for Postponement).
\9\ See Steel Propane Cylinders from the People's Republic of
China and Thailand: Postponement of Preliminary Determinations in
the Less-Than-Fair Value Investigations, 83 FR 51927 (October 15,
2018).
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce preliminarily assigned a rate based
entirely on facts available to TPA Metals and Machinery (SZ) Co. Ltd.
(TPA Metals). Therefore, the only rate that is not zero, de minimis or
based entirely on facts otherwise available is the rate calculated for
Shandong Huanri Group Co. Ltd. (Huanri). Consequently, the rate
calculated for Huanri is also assigned as the rate for all-other
producers and exporters.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
[[Page 54087]]
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Subsidy rate
Company (percent)
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Guangzhou Lion Cylinders Co. Ltd........................ 145.37
Hubei Daly LPG Cylinder Manufacturer Co. Ltd............ 145.37
Shandong Huanri Group Co. Ltd........................... 42.77
Taishan Machinery Factory Ltd........................... 145.37
TPA Metals and Machinery (SZ) Co. Ltd................... 145.37
Wuyi Xilinde Machinery Manufacture Co., Ltd............. 145.37
Zhejiang Jucheng Steel Cylinder Co., Ltd................ 145.37
All-Others.............................................. 42.77
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Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct U.S. Customs and Border Protection (CBP) to
suspend liquidation of entries of subject merchandise as described in
the scope of the investigation section entered, or withdrawn from
warehouse, for consumption on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than five days after the deadline
date for case briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this investigation
are encouraged to submit with each argument: (1) A statement of the
issue; (2) a brief summary of the argument; and (3) a table of
authorities.
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\10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. If the
final determination is affirmative, the ITC will determine before the
later of 120 days after the date of this preliminary determination or
45 days after the final determination.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: October 19, 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 I
Scope of the Investigation
The products subject to this investigation are 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.
This investigation also covers 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 investigation 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,
[[Page 54088]]
carbon, or aramid (synthetic polymer)) and a matrix material
(typically polymer resin, ceramic, or metallic).
The merchandise subject to this investigation 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.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Injury Test
VII. Application of the CVD Law to Imports From the China
VIII. Diversification of China's Economy
IX. Subsidies Valuation
X. Benchmarks and Interest Rates
XI. Use of Facts Otherwise Available and Adverse Inferences
XII. Analysis of Programs
XIII. Calculation of the All-Others Rate
XIV. ITC Notification
XV. Disclosure and Public Comment
XVI. Verification
XVII. Recommendation
[FR Doc. 2018-23453 Filed 10-25-18; 8:45 am]
BILLING CODE 3510-DS-P