[Federal Register Volume 84, Number 107 (Tuesday, June 4, 2019)]
[Notices]
[Pages 25736-25738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-11587]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-428-846]
Refillable Stainless Steel Kegs From the Federal Republic of
Germany: Preliminary Affirmative Determination of Sales at Less Than
Fair Value, and Postponement of Final Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that refillable stainless steel kegs (kegs) from the Federal Republic
of Germany (Germany) are being, or are likely to be, sold in the United
States at less than fair value (LTFV). The period of investigation
(POI) is July 1, 2017, through June 30, 2018. Interested parties are
invited to comment on this preliminary determination.
DATES: Applicable June 4, 2019.
FOR FURTHER INFORMATION CONTACT: Michael A. Romani, AD/CVD Operations,
Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Ave. NW,
Washington, DC 20230; telephone: (202) 482-0198.
SUPPLEMENTARY INFORMATION:
Background
Commerce published the notice of initiation of this investigation
on October 16, 2018.\1\ This preliminary determination is made in
accordance with section 733(b) of the Tariff Act of 1930, as amended
(the Act). 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.\2\ On
March 19, 2019, at the request of the petitioner, Commerce postponed
the deadline for the preliminary determination until May 28, 2019.\3\
For a complete description of the events that followed the initiation
of this investigation, see the Preliminary Decision Memorandum.\4\ 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 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/.
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\1\ See Refillable Stainless Steel Kegs from the People's
Republic of China, the Federal Republic of Germany, and Mexico:
Initiation Of Less-Than-Fair-Value Investigations, 83 FR 52195
(October 16, 2018) (Initiation Notice).
\2\ See Memorandum to the Record 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
affected by the partial federal government closure have been
extended by 40 days.
\3\ See Refillable Stainless Steel Kegs from the Federal
Republic of Germany, Mexico and the People's Republic of China:
Postponement of Preliminary Determinations in the Less-Than-Fair-
Value Investigations, 84 FR 10033 (March 19, 2019).
\4\ See Memorandum, ``Decision Memorandum for the Preliminary
Determination in the Less-Than-Fair-Value Investigation of
Refillable Stainless Steel Kegs from the Federal Republic of
Germany,'' 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 refillable stainless
steel kegs from Germany. For a complete description of the scope of
this investigation, see Appendix I.
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 this
[[Page 25737]]
investigation as it appeared in the Initiation Notice. For a summary of
the product coverage comments and rebuttal responses submitted to the
record of this investigation, and a discussion and analysis of all
comments timely received, see the Preliminary Scope Decision
Memorandum.\7\ The scope case briefs were due on May 6, 2019, 30 days
after the publication of Kegs from China Preliminary CVD
Determination.\8\ There will be no further opportunity for comments on
scope-related issues. Commerce is preliminarily modifying the scope
language as it appeared in the initiation notice.\9\ 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) (Preamble).
\6\ See Initiation Notice, 83 FR at 52196.
\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,'' dated
March 29, 2019 (Preliminary Scope Decision Memorandum) at 4-15.
\8\ The scope case briefs were due 30 days after the publication
of 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, 84 FR 13634 (April 5, 2019) (Kegs from China
Preliminary CVD Determination). See the Preliminary Scope Decision
Memorandum at 5. Because the deadline fell on Sunday, May 5, 2019,
the actual deadline for the scope case briefs was Monday, May 6,
2019. See 19 CFR 351.303(b)(1) (``For both electronically filed and
manually filed documents, if the applicable due date falls on a non-
business day, the Secretary will accept documents that are filed on
the next business day.''). The deadline for scope rebuttal briefs
was Monday, May 13, 2019.
\9\ See Preliminary Decision Memorandum at 4-5; see also
Preliminary Scope Decision Memorandum at 15.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce calculated export prices in accordance
with section 772(a) of the Act. Constructed export prices have been
calculated in accordance with section 772(b) of the Act. Normal value
(NV) is calculated in accordance with section 773 of the Act. For a
full description of the methodology underlying the preliminary
determination, see the Preliminary Decision Memorandum.
All-Others Rate
Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that
in the preliminary determination, Commerce shall determine an estimated
all-others rate for all exporters and producers not individually
examined. This rate shall be an amount equal to the weighted average of
the estimated weighted-average dumping margins established for
exporters and producers individually investigated, excluding any zero
and de minimis margins, and any margins determined entirely under
section 776 of the Act. Here, the ``all others'' rate is based on the
estimated weighted-average dumping margin calculated for Blefa GmbH
(Blefa), the only entity for which Commerce calculated a rate.\10\
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\10\ See section 735(c)(5)(A) of the Act.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
------------------------------------------------------------------------
Weighted-
average
Producer/exporter dumping
margin
(percent)
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Blefa GmbH.................................................. 8.61
All Others.................................................. 8.61
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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 Appendix I, 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 estimated weighted-
average dumping margin or the estimated all-others rate, as follows:
(1) The cash deposit rate for Blefa will be equal to the company-
specific estimated weighted-average dumping margins determined in this
preliminary determination; (2) if the exporter is not a respondent
identified above, but the producer is Blefa, then the cash deposit rate
will be equal to the company-specific estimated weighted-average
dumping margin established for Blefa; and (3) the cash deposit rate for
all other producers and exporters will be equal to the all-others
estimated weighted-average dumping margin. These suspension of
liquidation instructions will remain in effect until further notice.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in 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 final verification report is
issued in this investigation.\11\ Rebuttal briefs, limited to issues
raised in case briefs, may be submitted no later than five days after
the deadline date for case briefs.\12\ 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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\11\ Case briefs, other written comments, and rebuttal briefs
should not include scope-related issues. See ``Scope Comments''
section, supra.
\12\ 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. Section 351.210(e)(2) of Commerce's regulations
requires that a request by exporters for postponement of the final
determination be accompanied by a
[[Page 25738]]
request for extension of provisional measures from a four-month period
to a period not more than six months in duration.
On April 28, 2019, pursuant to 19 CFR 351.210(e), Blefa requested
that Commerce postpone the final determination and that provisional
measures be extended to a period not to exceed six months.\13\ In
accordance with section 735(a)(2)(A) of the Act and 19 CFR
351.210(b)(2)(ii), because: (1) The preliminary determination is
affirmative; (2) the requesting exporter accounts 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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\13\ See Blefa's Letter, ``Refillable Stainless Steel Kegs from
the Federal Republic of Germany: Blefa Requests for Extension of
Final Determination and Provisional Measures,'' dated April 28,
2019.
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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. 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
whether these imports 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: May 28, 2019.
Christian Marsh,
Deputy 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.
``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 investigation 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 are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under subheadings 7310.10.0010, 7310.10.0050, 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
I. Summary
II. Background
III. Period of Investigation
IV. Scope of the Investigation
V. Scope Comments
VI. Product Characteristics
VII. Methodology
A. Fair Value Comparisons
1. Determination of Comparison Method
2. Results of the Differential Pricing Analysis
VIII. Date of Sale
IX. Product Comparisons
X. Export Price and Constructed Export Price
XI. Normal Value
A. Comparison Market Viability
B. Level of Trade
C. Cost of Production Analysis
1. Calculation of Cost of Production
2. Test of Home Market Sale Prices
3. Results of the Sales-Below-Cost Test
D. Calculation of NV Based on Comparison Market Prices
XII. Currency Conversion
XIII. Verification
XIV. Recommendation
[FR Doc. 2019-11587 Filed 6-3-19; 8:45 am]
BILLING CODE 3510-DS-P