[Federal Register Volume 84, Number 120 (Friday, June 21, 2019)]
[Notices]
[Pages 29159-29161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13257]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-087]
Steel Propane Cylinders From the People's Republic of China:
Final Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of steel propane cylinders from the People's Republic of China (China).
DATES: Applicable June 21, 2019.
FOR FURTHER INFORMATION CONTACT: Samuel Brummitt, 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) 482-7851.
SUPPLEMENTARY INFORMATION:
Background
On October 26, 2018, Commerce published the Preliminary
Determination.\1\ In the Preliminary Determination, Commerce aligned
the final determination in this countervailing duty investigation with
the final determination in the companion less-than-fair-value
investigation, in accordance with section 705(a)(1) of the Tariff Act
of 1930, as amended (the Act), and 19 CFR 351.210(b)(4). A complete
summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by parties for this final determination, may be found in the
Issues and Decision Memorandum.\2\
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\1\ See Steel Propane Cylinders From the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final Antidumping Duty
Determination, 83 FR 54086 (October 26, 2018) (Preliminary
Determination), and accompanying Preliminary Decision Memorandum.
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Steel Propane Cylinders from the People's Republic
of China,'' dated concurrently with, and hereby adopted by, this
notice (Issues and Decision Memorandum).
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The Issues and Decision Memorandum is a public document and is
available 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 B-8024 of Commerce's
main building. In addition, a complete version of the Issues and
Decision Memorandum can be accessed at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and electronic version
are identical in content.
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\ If the new
deadline falls on a non-business day, in accordance with Commerce's
practice, the deadline will become the next business day. The revised
deadline for the final determination of this investigation is now June
17, 2019.
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\3\ 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
have been extended by 40 days.
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Period of Investigation
The period of investigation is January 1, 2017 through December 31,
2017.
Scope of the Investigation
The merchandise covered by this investigation is steel propane
cylinders from China. For a complete description of the scope of this
investigation, see Appendix I of this notice.
Scope Comments
During the course of this investigation and the concurrent less-
than-fair-value investigations, Commerce received scope comments from
interested parties. Certain interested parties commented on the scope
of the investigation as it appeared in the Preliminary Scope Decision
Memorandum,\4\ which was issued concurrently with the Preliminary
Determination. We did not receive any scope comments after the
Preliminary Scope Decision Memorandum; therefore, the preliminary scope
determination remains unchanged in the final determination.
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\4\ See Memorandum, ``Steel Propane Cylinders from the People's
Republic of China (China) and Thailand: Scope Decision Memorandum
for the Preliminary Antidumping Duty (AD) and Countervailing Duty
(CVD) Determinations,'' dated December 18, 2018 (Preliminary Scope
Memorandum).
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Verification
As provided in section 782(i) of the Act, Commerce verified the
subsidy information reported by the Government of China (GOC) and
Shandong Huanri Group Co. Ltd. (Huanri) for use in our final
determination. We used standard verification procedures, including an
examination of relevant accounting records and original source
documents provided by the respondents.
Analysis of Subsidy Programs and Comments Received
All issues raised in the case briefs and rebuttal briefs submitted
by interested parties in this proceeding are discussed in the Issues
and Decision
[[Page 29160]]
Memorandum. A list of the issues raised by parties and responded to by
Commerce are in the Issues and Decision Memorandum, attached at
Appendix II.
Changes Since the Preliminary Determination
Based on our analysis of the comments received from the interested
parties and our findings at verification, we made certain changes to
the respondents' subsidy rate calculations since the Preliminary
Determination. For a discussion of these changes, see the Issues and
Decision Memorandum.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Act. For each of the subsidy programs found countervailable,
Commerce 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.\5\ In making these
findings, Commerce relied, in part, on facts otherwise available and,
because it finds that 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.\6\ For a full description of the
methodology underlying our final determination, see the Issues and
Decision Memorandum.
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\5\ 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.
\6\ See sections 776(a), (b), and 782(d) of the Act.
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Final Determination
In accordance with section 705(c)(l)(B)(i)(I) of the Act, we
calculated a rate for Huanri, a producer/exporter of subject
merchandise selected for individual examination in this investigation.
With regard to TPA Metals and Machinery (SZ) Co. Ltd., an additional
producer/exporter selected for individual examination, as well as
Guangzhou Lion Cylinders Co. Ltd.; Hubei Daly LPG Cylinder Manufacturer
Co. Ltd.; Taishan Machinery Factory Ltd.; Wuyi Xilinde Machinery
Manufacture Co., Ltd.; and Zhejiang Jucheng Steel Cylinder Co., Ltd.,
for the reasons described in the Preliminary Determination, Commerce
assigned a rate based entirely on adverse facts available (AFA)
pursuant to section 776(b) of the Act. No interested party commented on
our preliminary decision to assign these six companies a rate based
entirely on AFA, and so for purposes of this final determination, we
continue to assign the non-cooperating companies a rate based entirely
on AFA.
Section 705(c)(5)(A) of the Act provides that in the final
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 countervailable 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. Huanri is the only respondent for which Commerce
calculated a weighted-average countervailable subsidy rate that is not
zero, de minimis, or based entirely on facts otherwise available.
Therefore, for purposes of determining the ``all-others'' rate, and
pursuant to section 705(c)(5)(A) of the Act, we are using the subsidy
rate calculated for Huanri.
Commerce determines the total estimated net countervailable subsidy
rates to be the following:
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Subsidy
Company rate
(percent)
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Guangzhou Lion Cylinders Co. Ltd............................ 142.37
Hubei Daly LPG Cylinder Manufacturer Co. Ltd................ 142.37
Shandong Huanri Group Co. Ltd............................... 37.91
Taishan Machinery Factory Ltd............................... 142.37
TPA Metals and Machinery (SZ) Co. Ltd....................... 142.37
Wuyi Xilinde Machinery Manufacture Co., Ltd................. 142.37
Zhejiang Jucheng Steel Cylinder Co., Ltd.................... 142.37
All Others.................................................. 37.91
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Disclosure
We will disclose the calculations performed within five days of
public announcement of this notice in accordance with 19 CFR
351.224(b).
Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of all appropriate
entries of steel propane cylinders from China, as described in Appendix
I of this notice, which were entered, or withdrawn from warehouse, for
consumption on or after October 26, 2018, the date of publication of
the Preliminary Determination of this investigation in the Federal
Register. In accordance with section 703(d) of the Act, we issued
instructions to CBP to discontinue the suspension of liquidation for
CVD purposes for subject merchandise entered, or withdrawn from
warehouse, on or after February 23, 2019, but to continue the
suspension of liquidation of all entries from October 26, 2018 through
February 22, 2019.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a countervailing duty
order, will reinstate the suspension of liquidation under section
706(a) of the Act, and will require a cash deposit of estimated
countervailing duties for such entries of subject merchandise in the
amounts indicated above. If the ITC determines that material injury, or
threat of material injury, does not exist, this proceeding will be
terminated, and all estimated duties deposited or securities posted as
a result of the suspension of liquidation will be refunded or canceled.
International Trade Commission Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our final affirmative determination that countervailable
subsidies are being provided to producers and exporters of steel
propane cylinders from China. Because the final determination in this
proceeding is affirmative, in accordance with section 705(b) of the
Act, the ITC will make its final determination as to whether the
domestic industry in the United States is materially injured, or
threatened with material injury, by reason of imports, or sales (or the
likelihood of sales) for importation of steel propane cylinders from
China no later than 45 days after this final determination. If the ITC
determines that material injury or threat of material injury does not
exist, the proceeding will be terminated, and all cash deposits will be
refunded. If the ITC determines that such injury does exist, Commerce
will issue a countervailing duty order directing CBP to assess, upon
further instruction by Commerce, countervailing duties on all imports
of the subject merchandise, entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation.
Notification Regarding Administrative Protective Orders
This notice serves as the only reminder to parties subject to the
administrative protective order (APO) of their responsibility
concerning the destruction of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the
return or destruction of APO materials or conversion to
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judicial protective order is hereby requested. Failure to comply with
the regulations and terms of an APO is a sanctionable violation.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act and 19 CFR 351.210(c).
Dated: June 17, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I--Scope of the Investigation
The products subject to this investigation are 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 Transport Canada 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 Issues and Decision
Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Subsidies Valuation
VI. Analysis of Programs
VII. Discussion of the Issues
Comment 1: Whether to Apply Adverse Facts Available (AFA) to
Shandong Huanri Group Co. Ltd. (Huanri) for the Export Buyer's
Credit (EBC) Program
Comment 2: Whether to Apply AFA to Huanri for Policy Lending
Comment 3: Whether Policy Loans Provided by State-Owned
Commercial Banks (SOCBs) to the Steel Propane Cylinder Industry are
Specific
Comment 4: Whether All Hot-Rolled Steel (HRS) Producers are
``Authorities'' Under Section 771(5)(B) of the Act
Comment 5: Whether the Provision of HRS for Less Than Adequate
Remuneration (LTAR) is Specific
Comment 6: Whether the Chinese Domestic HRS Market is Distorted
Comment 7: Whether to Fill in Certain Months with Missing Data
in the Ocean Freight Benchmark
Comment 8: Whether to Exclude Routes to Xiamen from the Ocean
Freight Benchmark
Comment 9: Whether to Exclude the Tokyo to Qingdao Route from
the Ocean Freight Benchmark
Comment 10: Which Ports to Use for the Calculation of Inland
Freight
Comment 11: Whether to Include Value Added Tax (VAT) in Huanri's
Inland Freight Costs
Comment 12: Which HRS Import Tariff Rates to Select
Comment 13: Whether to Use the Government of China's (GOC)
Coaster Freight Rates in the Ocean Freight Benchmark
Comment 14: Whether to Apply AFA to Find the Provision of
Electricity for LTAR to be Specific
Comment 15: Whether to Remove Shandong Laizhou Steel Cylinder
Factory's (SC Factory) Loans from Huanri's Reported Loans
Comment 16: Which Benchmark Interest Rates to Apply in the
Export Seller's Credit and Policy Loan Benefit Calculations
Comment 17: Whether to Adjust Huanri's Sales Denominator
Comment 18: Whether to Correct a Translation Error in the
Electricity for LTAR Benefit Calculation
Comment 19: Which AFA Program Rates to Apply to the Non-
Cooperating Companies
VIII. Recommendation
[FR Doc. 2019-13257 Filed 6-20-19; 8:45 am]
BILLING CODE 3510-DS-P