[Federal Register Volume 83, Number 247 (Thursday, December 27, 2018)]
[Notices]
[Pages 66675-66678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-28065]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-086]
Steel Propane Cylinders From the People's Republic of China:
Preliminary Affirmative Determination of Sales at Less Than Fair Value
and Postponement of Final Determination Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that steel propane cylinders from the People's Republic of China
(China) are being, or are likely to be, sold in the United States at
less than fair value (LTFV). Interested parties are invited to comment
on this preliminary determination.
DATES: Applicable December 27, 2018.
FOR FURTHER INFORMATION CONTACT: Jonathan Cornfield or Laura Griffith,
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) 482-3855
or (202) 482-6430, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(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 October 15, 2018, Commerce postponed the preliminary
determination of this investigation and the revised deadline is now
December 18, 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 included 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 https://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, Taiwan, and Thailand: Initiation of Less-Than-Fair-Value
Investigations, 83 FR 28196 (June 18, 2018) (Initiation Notice) and
accompanying Initiation Checklist.
\2\ 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) (Preliminary Postponement Notice).
\3\ See memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value 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 discussion 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
[[Page 66676]]
Initiation Notice. For a summary of the product coverage comments and
rebuttal responses submitted to the record for this preliminary
determination and accompanying discussion and analysis of all comments
timely received, see the Preliminary Scope Decision Memorandum.\6\
Commerce is preliminarily modifying the scope language as it appeared
in the Initiation Notice. See the revised scope in Appendix I to this
notice.
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\4\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice, 83 FR at 28196.
\6\ See memorandum, ``Scope Comments Decision Memorandum for the
Preliminary Determinations,'' dated concurrently with, and hereby
adopted by, this notice (Preliminary Scope Decision Memorandum).
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Export prices were calculated in accordance
with section 772(a) of the Act. Because China is a non-market economy
within the meaning of section 771(18) of the Act, normal value (NV) was
calculated in accordance with section 773(c) of the Act. In addition,
pursuant to section 776(a) and (b) of the Act, Commerce preliminarily
has relied upon facts otherwise available, with adverse inferences, for
the China-wide entity. For a full description of the methodology
underlying Commerce's preliminary determination, see the Preliminary
Decision Memorandum.
Combination Rates
In the Initiation Notice,\7\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\8\
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\7\ See Initiation Notice, 83 FR at 28201.
\8\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
the Department's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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\9\ The China-wide entity includes: Hubei Daly LPG Cylinder
Manufacturer Co. Ltd., Taishan Machinery Factory Ltd., TPA Metals
and Machinery (DG) Co. Ltd., Wuyi Xilinde Machinery Manufacture Co.,
Ltd., and Zhejiang Jucheng Steel Cylinder Co., Ltd.
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Estimated Cash deposit rate
weighted-average (adjusted for
Producer Exporter dumping margin subsidy offsets)
(percent) (percent)
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GSBF Tank Inc.............................. Hong Kong GSBF Company 41.08 15.98
Limited.
Shandong Huanri Group Co. Ltd.............. Shandong Huanri Group Co. Ltd 33.37 8.27
Jiaxing Pressure Vessel Factory............ Jiaxing Pressure Vessel 33.86 8.76
Factory.
China-Wide Entity \9\...................... ............................. 108.60 83.50
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Suspension of Liquidation
In accordance with section 733(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 section 733(d)(1)(B) of the Act
and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted-average amount by which NV exceeds U.S.
price, as indicated in the chart above as follows: (1) For the
producer/exporter combinations listed in the table above, the cash
deposit rate is equal to the estimated weighted-average dumping margin
listed for that combination in the table; (2) for all combinations of
steel propane cylinders producers/exporters of merchandise under
consideration that have not established eligibility for their own
separate rates, the cash deposit rate will be equal to the estimated
weighted-average dumping margin established for the China-wide entity;
and (3) for all third-county exporters of steel propane cylinders not
listed in the table above, the cash deposit rate is the cash deposit
rate applicable to the China producer/exporter combination (or the
China-wide entity) that supplied that third-country exporter.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion CVD
proceeding when CVD provisional measures are in effect. Accordingly,
where Commerce has made a preliminary affirmative determination for
domestic subsidy pass-through or export subsidies, Commerce has offset
the calculated estimated weighted-average dumping margin by the
appropriate rate(s). Any such adjusted rates may be found in the chart
of estimated weighted-average dumping margins located in the section
titled Preliminary Determination above.
Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of any public announcement or, if there is no public announcement,
within five days of the date of publication 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\
[[Page 66677]]
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.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On December 7, 2018, pursuant to 19 CFR 351.210(e), the respondents
requested that Commerce postpone the final determination and that
provisional measures be extended to a period not to exceed six
months.\11\ In accordance with section 735(a)(2)(A) of the Act and 19
CFR 351.210(b)(2)(ii) and (e)(2), because (1) the preliminary
determination is affirmative, (2) the requesting exporters account for
a significant proportion of exports of the subject merchandise, and (3)
no compelling reasons for denial exist, Commerce is postponing the
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly,
Commerce will make its final determination no later than 135 days after
the date of publication of this preliminary determination.
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\11\ See respondents' letter ``Steel Propane Cylinders from the
People's Republic of China: Request for Extension of Final
Determination,'' dated December 7, 2018.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. 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 Commerce's
final determination whether imports of the subject merchandise are
materially injuring, or threaten material injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: December 18, 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 merchandise covered by this investigation is steel cylinders
for compressed or liquefied propane or other gases (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 TransportCanada Specification
4BM, 4BAM, or 4BWM, or United Nations pressure receptacle standard
ISO 4706 and otherwise meeting the description provided below. 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, 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. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional
Measures
V. Scope Comments
VI. Discussion of the Methodology
A. Non-Market Economy (NME) Country
B. Surrogate Country
C. Separate Rates
D. Combination Rates
[[Page 66678]]
E. The China-Wide Entity
F. Application of Facts Available and Adverse Inferences
G. Date of Sale
H. Comparisons to Fair Value
I. Export Price
J. Value-Added Tax
K. Normal Value
L. Factor Valuation Methodology
VII. Currency Conversion
VIII. Adjustment for Countervailable Export Subsidies
IX. Adjustment Under Section 777A(f) of the Act
X. Verification
XI. U.S. International Trade Commission Notification
XII. Recommendation
[FR Doc. 2018-28065 Filed 12-26-18; 8:45 am]
BILLING CODE 3510-DS-P