[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