[Federal Register Volume 84, Number 66 (Friday, April 5, 2019)]
[Notices]
[Pages 13634-13637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06703]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-094]
Refillable Stainless Steel Kegs 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 refillable stainless steel kegs (kegs) from the People's
Republic of China (China) for the period of investigation (POI) January
1, 2017 through December 31, 2017. Interested parties are invited to
comment on this preliminary determination.
DATES: Applicable April 5, 2019.
FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski or Robert Brown at
(202) 482-1395 or (202) 482-3702, respectively, AD/CVD Operations,
Enforcement and Compliance, International Trade Administration, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230.
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 October 16,
2018.\1\ On December 4, 2018, Commerce postponed the preliminary
determination in this investigation to February 19, 2019.\2\
[[Page 13635]]
Commerce exercised its discretion to toll all deadlines affected by the
partial federal government closure from December 22, 2018, through the
resumption of operations on January 29, 2019.\3\ Accordingly, the
revised deadline for the preliminary determination is March 29, 2019.
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\1\ See Refillable Stainless Steel Kegs from the People's
Republic of China: Initiation of Countervailing Duty Investigation,
83 FR 52192 (October 16, 2018) (Initiation Notice).
\2\ See Refillable Stainless Steel Kegs from the People's
Republic of China: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 83 FR 62560 (December 4, 2018).
In accordance with Commerce's practice, where a deadline falls on a
weekend or federal holiday, the appropriate deadline is the next
business day. See Notice of Clarification: Application of ``Next
Business Day'' Rule for Administrative Determination Deadlines
Pursuant to the Tariff Act of 2930, As Amended,'' 70 FR 24533 (May
10, 2005).
\3\ See Memorandum from 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 ``Deadlines Affected by the
Partial Shutdown of the Federal Government'', dated January 28,
2019. All deadlines in this segment of the proceeding have been
extended by 40 days.
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\4\ 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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\4\ See ``Decision Memorandum for the Preliminary Affirmative
Determination: Countervailing Duty Investigation of Refillable
Stainless Steel Kegs 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 kegs from China. For
a full description of the scope of this investigation, see Appendix I
to this notice.
Scope Comments
In accordance with the preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\6\ Certain interested
parties commented on the scope of the investigation as it appeared in
the 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.\7\
Commerce is preliminarily modifying the scope language as it appeared
in the initiation notice.\8\ See the revised scope in Appendix I to
this notice.
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See Initiation Notice.
\7\ See Memorandum, Refillable Stainless Steel Kegs from the
People's Republic of China, Germany, and Mexico: Scope Comments
Decision Memorandum for the Preliminary Determinations (March 29,
2019) (Preliminary Scope Decision Memorandum).
\8\ Id. at 3-4.
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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, Commerce 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.\9\ In making these findings, Commerce relied, in part, on
facts available, and because one or more respondents did not act to the
best of their ability to respond to Commerce's requests for
information, Commerce drew an adverse inference where appropriate in
selecting from among the facts otherwise available.\10\ For further
information, see ``Use of Facts Otherwise Available and Adverse
Inferences'' in the Preliminary Decision Memorandum.
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\9\ 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.
\10\ See sections 776(a) and (b) of the Act.
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Alignment
In accordance with section 705(a)(1) of the Act and 19 CFR
351.210(b)(4), and based on the petitioner's request,\11\ Commerce is
aligning the final countervailing duty determination in this
investigation with the final determination in the companion antidumping
duty investigation of refillable stainless steel kegs from China.
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\11\ See Letter, ``Refillable Stainless Steel Kegs from the
People's Republic of China: Request for Alignment of the
Countervailing Duty Final Determination with the Companion
Antidumping Duty Final Determination,'' dated March 19, 2019.
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All-Others Rate
Sections 703(d)(1)(A)(i) 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 rates based
entirely on facts available for Penglai Jinfu Stainless Steel Products
(Penglai Jinfu) and 18 companies that failed to respond to our quantity
and value (Q&V) questionnaire.\12\ Commerce calculated an individual
estimated countervailable subsidy rate for Ningbo Master International
Trade Co., Ltd. (Ningbo Master) and its cross-owned affiliates Tomorrow
Industrial Limited (Tomorrow Industrial), Ningbo Major Draft Beer
Equipment Co., Ltd. (Ningbo Major), and Zhejiang Major Technology Co.,
Ltd. (Major Technology). Because the only individually calculated rate
is not zero, de minimis, or based entirely on facts otherwise
available, the rate calculated for Ningbo Master is also assigned to
all-other producers and exporters.
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\12\ Commerce issued Q&V questionnaires to 20 companies. The 18
companies that did not respond to our Q&V questionnaire are:
Equipmentines (Dalian) E[hyphen]Commerce Co., Ltd.; Jinan HaoLu
Machinery Equipment Co., Ltd.; NDL Keg Qingdao Inc.; Ningbo Direct
Import & Export Co., Ltd.; Ningbo Hefeng Container Manufacture Co.,
Ltd.; Ningbo Hefeng Kitchen Utensils Manufacture Co., Ltd.; Ningbo
HGM Food Machinery Co., Ltd.; Ningbo Jiangbei Bei Fu Industry and
Trade Co., Ltd.; Ningbo Sanfino Import & Export Co., Ltd.; Ningbo
Shimaotong International Co., Ltd.; Ningbo Sunburst International
Trading Co., Ltd.; Orient Equipment (Taizhou) Co., Ltd.; Qingdao
Henka Precision Technology Co., Ltd.; Shandong Tiantai Beer
Equipment; Sino Dragon Trading International; Wenzhou Deli Machinery
Equipment Co.; Wuxi Taihu Lamps and Lanterns Co., Ltd.; and Yantai
Trano New Material Co., Ltd.
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Preliminary Determination
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Net subsidy
Company rate (percent)
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Equipmentines (Dalian) E[hyphen]Commerce Co., Ltd....... 144.30
[[Page 13636]]
Jinan HaoLu Machinery Equipment Co., Ltd................ 144.30
NDL Keg Qingdao Inc..................................... 144.30
Ningbo Direct Import & Export Co., Ltd.................. 144.30
Ningbo Hefeng Container Manufacture Co., Ltd............ 144.30
Ningbo Hefeng Kitchen Utensils Manufacture Co., Ltd..... 144.30
Ningbo HGM Food Machinery Co., Ltd...................... 144.30
Ningbo Jiangbei Bei Fu Industry and Trade Co., Ltd...... 144.30
Ningbo Master International Trade Co., Ltd \13\......... 15.78
Ningbo Sanfino Import & Export Co., Ltd................. 144.30
Ningbo Shimaotong International Co., Ltd................ 144.30
Ningbo Sunburst International Trading Co., Ltd.......... 144.30
Orient Equipment (Taizhou) Co., Ltd..................... 144.30
Penglai Jinfu Stainless Steel Products.................. 144.30
Qingdao Henka Precision Technology Co., Ltd............. 144.30
Shandong Tiantai Beer Equipment......................... 144.30
Sino Dragon Trading International....................... 144.30
Wenzhou Deli Machinery Equipment Co..................... 144.30
Wuxi Taihu Lamps and Lanterns Co., Ltd.................. 144.30
Yantai Trano New Material Co., Ltd...................... 144.30
All Others.............................................. 15.78
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Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
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\13\ As discussed in the Preliminary Decision Memorandum,
Commerce has found Ningbo Major Draft Beer Equipment Co., Ltd.,
Tomorrow Industrial Limited and Zhejiang Major Technology Co., Ltd.
to be cross-owned with Ningbo Master International Trade Co., Ltd.
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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.\14\ 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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\14\ 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: March 29, 2019.
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 are kegs, vessels,
or containers with bodies that are approximately cylindrical in
shape, 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, with or without other elements), and that are compatible
with a ``D Sankey'' extractor (refillable stainless steel kegs) with
a nominal liquid volume capacity of 10 liters or more, regardless of
the type of finish, gauge, thickness, or grade of stainless steel,
and whether or not covered by or encased in other materials.
Refillable stainless steel kegs may be imported assembled or
unassembled, with or without all components (including spears,
couplers or taps, necks, collars, and valves), and be filled or
unfilled.
[[Page 13637]]
``Unassembled'' or ``unfinished'' refillable stainless steel
kegs include drawn stainless steel cylinders that have been welded
to form the body of the keg and attached to an upper (top) chime
and/or lower (bottom) chime. Unassembled refillable stainless steel
kegs may or may not be welded to a neck, may or may not have a valve
assembly attached, and may be otherwise complete except for testing,
certification, and/or marking.
Subject merchandise also includes refillable stainless steel
kegs that have been further processed in a third country, including
but not limited to, attachment of necks, collars, spears or valves,
heat treatment, pickling, passivation, 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 refillable
stainless steel keg.
Specifically excluded are the following:
(1) Vessels or containers that are not approximately cylindrical
in nature (e.g., box, ``hopper'' or ``cone'' shaped vessels);
(2) stainless steel kegs, vessels, or containers that have
either a ``ball lock'' valve system or a ``pin lock'' valve system
(commonly known as ``Cornelius,'' ``corny'' or ``ball lock'' kegs);
(3) necks, spears, couplers or taps, collars, and valves that
are not imported with the subject merchandise; and
(4) stainless steel kegs that are filled with beer, wine, or
other liquid and that are designated by the Commissioner of Customs
as Instruments of International Traffic within the meaning of
section 332(a) of the Tariff Act of 1930, as amended.
The merchandise covered by this investigation is currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under subheadings 7310.10.0010, 7310.00.0050, 7310.29.0025,
and 7310.29.0050.
These HTSUS subheadings are provided for convenience and customs
purposes; the written description of the scope of this investigation
is dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
Summary
Background
A. Initiation and Case History
B. Postponement of Preliminary Determination
C. Period of Investigation
Scope Comments
A. Scope of the Investigation
B. Alignment
C. Injury Test
Application of the CVD Law to Imports From China
Diversification of China's Economy
Subsidies Valuation
A. Allocation Period
B. Attribution of Subsidies
C. Denominators
Benchmarks and Interest Rates
A. Short-Term and Long-Term Renminbi (RMB)-Denominated Loans
B. Long-Term RMB-Dominated Loans
C. Discount Rates
D. Input Benchmarks
Use of Facts Otherwise Available and Adverse Inferences
A. Legal Standard
B. Application of AFA: Non-Responsive Q&V Questionnaire
Recipients
C. Application of AFA: Penglai Jinfu
D. Application of AFA: Provision of Electricity for LTAR
E. Application of AFA: Provision of Stainless Steel Coil for
LTAR
F. Application of AFA: Export Assistance Grants and Special
Funds for International Market Expansion
Analysis of Programs
A. Programs Preliminarily Determined to be Countervailable
B. Programs Preliminarily Determined Not to Confer a Measurable
Benefit
C. Programs Preliminarily Determined to Be Not Used by Ningbo
Master
Calculation of the All-Others Rate
ITC Notification
Disclosure and Public Comment
Verification
Recommendation
Appendix
[FR Doc. 2019-06703 Filed 4-4-19; 8:45 am]
BILLING CODE 3510-DS-P