[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]]



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