[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

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