[Federal Register Volume 84, Number 157 (Wednesday, August 14, 2019)]
[Notices]
[Pages 40393-40394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17432]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-978]


High Pressure Steel Cylinders From the People's Republic of 
China: Preliminary Results of Countervailing Duty Administrative 
Review; 2017

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that producers and/or exporters subject to this administrative review 
received countervailable subsidies. Interested parties are invited to 
comment on these preliminary results of review.

DATES: Applicable August 14, 2019.

FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1395.

SUPPLEMENTARY INFORMATION:

Background

    On June 1, 2018, Commerce published a notice of opportunity to 
request an administrative review of the countervailing duty order on 
high pressure steel cylinders from the People's Republic of China 
(China) for the period of review January 1, 2017 through December 31, 
2017.\1\ On June 28, 2018 and June 29, 2018, we received review 
requests from Norris Cylinder Company (the petitioner) and Beijing 
Tianhai Industry Co., Ltd. (BTIC).\2\ We published a notice of 
initiation for this administrative review on August 10, 2018.\3\ We 
exercised our 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.\4\ The revised deadline 
for the preliminary results of this administrative review thus became 
April 11, 2019. On March 14, 2019, we postponed the deadline for 
issuing the preliminary results of this administrative review until 
August 9, 2019.\5\ For a complete description of the events that 
followed the initiation of this administrative review, see the 
Preliminary Decision Memorandum.\6\
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    \1\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity To Request Administrative 
Review, 83 FR 25429 (June 1, 2018).
    \2\ See Petitioner's Letter, ``High Pressure Steel Cylinders 
from the People's Republic of China: Request for Administrative 
Review and Entry of Appearance,'' dated June 28, 2018; see also 
BTIC's Letter, ``Request for the Sixth Administrative Review of the 
Countervailing Duty Order on High Pressure Steel Cylinders from the 
People's Republic of China, C-570-978 (POR: 01/01/17-12/31/17),'' 
dated June 29, 2018.
    \3\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 83 FR 39688 (August 10, 2018).
    \4\ See Memorandum, ``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.
    \5\ See Memorandum, ``High Pressure Steel Cylinders from the 
People's Republic of China: Extension of Time Limit for Preliminary 
Results of the Countervailing Duty Administrative Review; 2017,'' 
dated March 14, 2019.
    \6\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of 2017 Countervailing Duty Administrative Review of High 
Pressure Steel Cylinders from the People's Republic of China,'' 
dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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    A list of topics discussed in the Preliminary Decision Memorandum 
is provided in the appendix 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 Commerce 
building. In addition, a

[[Page 40394]]

complete version of the Preliminary Decision Memorandum can be accessed 
directly at https://enforcement.trade.gov/frn/. The signed and 
electronic versions of the Preliminary Decision Memorandum are 
identical in content.

Scope of the Order

    The merchandise subject to the order is seamless steel cylinders 
designed for storage or transport of compressed or liquefied gas (high 
pressure steel cylinders). The high pressure steel cylinders subject to 
the order are currently classifiable under subheadings 7311.00.00.30 of 
the Harmonized Tariff Schedule of the United States (HTSUS) and may 
also enter under HTSUS subheadings 7311.00.00.60 or 7311.00.00.90. 
While the HTSUS subheadings are provided for convenience and customs 
purposes, the written description is dispositive. A full description of 
the scope of the order is contained in the Preliminary Decision 
Memorandum.

Methodology

    We are conducting this administrative review in accordance with 
section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). 
For each of the subsidy programs found countervailable, we 
preliminarily find 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.\7\ For a full description 
of the methodology underlying our preliminary conclusions, see the 
Preliminary Decision Memorandum.\8\
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    \7\ 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(5)(A) of the Act regarding specificity.
    \8\ A list of topics discussed in the Preliminary Decision 
Memorandum can be found in the appendix to this notice.
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    In making these findings, we relied, in part, on facts available, 
and because we find that the Government of China (GOC) did not act to 
the best of its ability to respond to our requests for information, we 
drew an adverse inference where appropriate in selecting from among the 
facts otherwise available.\9\ For further information, see ``Use of 
Facts Otherwise Available and Adverse Inferences'' in the Preliminary 
Decision Memorandum.
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    \9\ See sections 776(a) and (b) of the Act.
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Preliminary Results of the Review

    We preliminarily find that the following net countervailable 
subsidy rate exists for the mandatory respondent, BTIC, for the period 
of review January 1, 2017 through December 31, 2017:

------------------------------------------------------------------------
                                                         Subsidy rate Ad
                        Company                              Valorem
                                                            (percent)
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Beijing Tianhai Industry Co., Ltd. \10\................           30.62
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Assessment Rates

    Upon issuance of the final results of this administrative review, 
Commerce shall determine, and U.S. Customs and Border Protection (CBP) 
shall assess, countervailing duties on all appropriate entries covered 
by this review. We intend to issue assessment instructions to CBP 15 
days after publication of the final results of this review.
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    \10\ As discussed in the Preliminary Decision Memorandum, we 
have found the following companies to be cross-owned with BTIC: 
Tianjin Tianhai High Pressure Container Co., Ltd.; Langfang Tianhai 
High Pressure Container Co., Ltd.; Beijing Jingcheng Machinery 
Electric Holding Co., Ltd.; and Beijing Jingcheng Machinery Electric 
Co., Ltd.
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Cash Deposit Requirements

    Pursuant to section 751(a)(2)(C) of the Act, we also intend, upon 
publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amount indicated 
above for BTIC, on shipments of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of the final results of this administrative review. For all 
non-reviewed firms, CBP will continue to collect cash deposits of 
estimated countervailing duties at the most recent company-specific or 
all-others rate applicable to the company, as appropriate. These cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.

Disclosure and Public Comment

    We will disclose to parties in this review the calculations 
performed in reaching the preliminary results within five days of 
publication in the Federal Register of these preliminary results.\11\ 
Unless Commerce instructs otherwise, interested parties may submit 
written comments (case briefs) on the preliminary results no later than 
30 days from the date of publication of this notice in the Federal 
Register, and rebuttal comments (rebuttal briefs) within five days 
after the time limit for filing case briefs.\12\ Pursuant to 19 CFR 
351.309(d)(2), rebuttal briefs must be limited to issues raised in the 
case briefs. Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit arguments are requested to submit with the argument: (1) A 
statement of the issue; (2) a brief summary of the argument; and (3) a 
table of authorities.\13\
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    \11\ See 19 CFR 351.224(b).
    \12\ See 19 CFR 351.309(c)(1)(ii) and (d)(1); and 19 CFR 351.303 
(for general filing requirements).
    \13\ See 19 CFR 351.309(c)(2) and (d)(2).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to the issues raised in the case and 
rebuttal briefs, must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, filed electronically via 
ACCESS by 5 p.m. Eastern Time within 30 days after the date of 
publication of this notice.\14\ Hearing 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 date 
and time to be determined.\15\ Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.
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    \14\ See 19 CFR 351.310(c).
    \15\ See 19 CFR 351.310(d).
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    Unless the deadline is extended pursuant to section 751(a)(3)(A) of 
the Act, we intend to issue the final results of this administrative 
review, including the results of our analysis of the issues raised by 
the parties in their comments, no later than 120 days after the date of 
publication of this notice. These preliminary results and notice are 
issued and published in accordance with sections 751(a)(1) and 
777(i)(1) of the Act and 19 CFR 351.221(b)(4).

    Dated: August 7, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Diversification of China's Economy
V. Subsidies Valuation Information
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Disclosure and Public Comment
X. Conclusion

[FR Doc. 2019-17432 Filed 8-13-19; 8:45 am]
 BILLING CODE 3510-DS-P