    [Federal Register Volume 85, Number 168 (Friday, August 28, 2020)]
    [Notices]
    [Pages 53323-53325]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 2020-18991]

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    DEPARTMENT OF COMMERCE

    International Trade Administration

    [C-570-127]

    Certain Non-Refillable Steel Cylinders 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 certain non-refillable steel cylinders (non-refillable
    cylinders) from the People's Republic of China (China) during the
    period of investigation January 1, 2019 through December 31, 2019.
    Interested parties are invited to comment on this preliminary
    determination.

    DATES: Applicable August 28, 2020.

    FOR FURTHER INFORMATION CONTACT: Kristen Johnson or John Conniff, 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) 482-4793 or (202)
    482-1009, respectively.

    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 April 22,
    2020.\1\ On June 2, 2020, Commerce postponed the preliminary
    determination of this investigation and reset the deadline to August
    24, 2020.\2\
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        \1\ See Certain Non-Refillable Steel Cylinders from the People's
    Republic of China: Initiation of Countervailing Duty Investigation,
    85 FR 22407 (April 22, 2020) (Initiation Notice).
        \2\ See Certain Non-Refillable Steel Cylinders from the People's
    Republic of China: Postponement of Preliminary Determination in the
    Countervailing Duty Investigation, 85 FR 33631 (June 2, 2020).
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        For a complete description of the events that followed the
    initiation of this investigation, see the Preliminary

    [[Page 53324]]

    Decision Memorandum.\3\ 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 https://access.trade.gov. 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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        \3\ See Memorandum, ``Decision Memorandum for the Preliminary
    Determination of the Countervailing Duty Investigation of Certain
    Non-Refillable 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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    Scope of the Investigation

        The products covered by this investigation are non-refillable
    cylinders from China. For a complete description of the scope of this
    investigation, see Appendix I.

    Scope Comments

        In accordance with the Preamble to Commerce's regulations,\4\ the
    Initiation Notice set aside a period of time for parties to raise
    issues regarding product coverage (i.e., scope).\5\ The petitioner \6\
    commented on the scope of the investigation as it appeared in the
    Initiation Notice.\7\ Commerce intends to issue its preliminary
    decision regarding comments concerning the scope of the antidumping
    duty (AD) and countervailing duty (CVD) investigations in the
    preliminary determination of the companion AD investigation, the
    deadline for which is October 23, 2020.\8\
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        \4\ See Antidumping Duties; Countervailing Duties, Final Rule,
    62 FR 27296, 27323 (May 19, 1997) (Preamble).
        \5\ See Initiation Notice.
        \6\ The petitioner is Worthington Industries.
        \7\ See Petitioner's Letters, ``Certain Non-Refillable Steel
    Cylinders from the People's Republic of China--Petitioner's Scope
    Comments,'' dated May 8, 2020; and ``Certain Non-Refillable Steel
    Cylinders from the People's Republic of China--Petitioner's Updated
    Scope Comments,'' dated August 4, 2020.
        \8\ See Certain Non-Refillable Steel Cylinders from the People's
    Republic of China: Postponement of the Preliminary Determination in
    the Less Than Fair Value Investigation, signed August 14, 2020 (AD
    Postponement Notice).
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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\ For full description of the methodology underlying our
    preliminary conclusions, see 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.
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        In making the preliminary findings, Commerce relied, in part, on
    facts available. For further information, see ``Use of Facts Otherwise
    Available and Adverse Inferences'' in the Preliminary Decision
    Memorandum.

    Alignment

        As noted in the Preliminary Decision Memorandum, in accordance with
    section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), and based on the
    petitioner's request,\10\ Commerce is aligning the final CVD
    determination in this investigation with the final determination in the
    companion AD investigation of non-refillable cylinders from China.
    Consequently, the final CVD determination will be issued on the same
    date as the final AD determination, which is currently scheduled no
    later than January 6, 2021, unless postponed.\11\
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        \10\ See Petitioner's Letter, ``Certain Non-Refillable Steel
    Cylinders from the People's Republic of China--Petitioner's Request
    to Align Final Determinations,'' dated August 13, 2020.
        \11\ See AD Postponement Notice.
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    All-Others Rate

        Sections 703(d) 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 calculated individual estimated
    countervailable subsidy rates for Ningbo Eagle Machinery & Technology
    Co., Ltd. and Wuyi Xilinde Machinery Manufacture Co., Ltd. that are not
    zero, de minimis, or based entirely on the facts otherwise available.
    Commerce calculated the all-others rate using a weighted average of the
    individual estimated subsidy rates calculated for the examined
    respondents using each company's publicly ranged values for the value
    of their exports of subject merchandise to the United States.\12\
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        \12\ With two respondents under examination, Commerce normally
    calculates (A) a weighted-average of the estimated subsidy rates
    calculated for the examined respondents using each company's
    proprietary U.S. sale quantities for the merchandise under
    consideration; (B) a simple average of the estimated subsidy rates
    calculated for the examined respondents; and (C) a weighted-average
    of the estimated subsidy rates calculated for the examined
    respondents using each company's publicly-ranged U.S. sale
    quantities for the merchandise under consideration. Commerce then
    compares (B) and (C) to (A) and selects the rate closest to (A) as
    the most appropriate rate for all other producers and exporters.
    See, e.g., Ball Bearings and Parts Thereof from France, Germany,
    Italy, Japan, and the United Kingdom: Final Results of Antidumping
    Duty Administrative Reviews, Final Results of Changed-Circumstances
    Review, and Revocation of an Order in Part, 75 FR 53661, 53663
    (September 1, 2010).
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    Rate for Non-Responsive Companies

        Seven potential producers and/or exporters of non-refillable
    cylinders from China did not respond to Commerce's Quantity and Value
    (Q&V) Questionnaire.\13\ We find that, by not responding to the Q&V
    Questionnaire, these companies withheld requested information and
    significantly impeded this proceeding. Thus, in reaching our
    preliminary determination, pursuant to sections 776(a)(2)(A) and (C) of
    the Act, we are basing the CVD rate for these seven companies on facts
    otherwise available.
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        \13\ The seven companies are Jiangsu Kasidi Chemical Machinery
    Co., Ltd.; Jinhua Sinoblue Machinery Manufacturing Co., Ltd.; Ningbo
    Runkey CGA Cylinders Co., Ltd.; Ninhua Group Co., Ltd.; Shanghai
    Ronghua High-Pressure Vessel Co., Ltd.; Zhejiang Ansheng Mechanical
    Manufacture Co., Ltd.; and Zhejiang Nof Chemical Co., Ltd.
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        We further preliminarily determine that an adverse inference is
    warranted, pursuant to section 776(b) of the Act. By failing to submit
    responses to Commerce's Q&V Questionnaire, the seven companies did not
    cooperate to the best of their ability in this investigation.
    Accordingly, we preliminarily find that an adverse inference is
    warranted to ensure that the seven companies will not obtain a more
    favorable result than had they fully complied with our request for
    information. For more information on the application of adverse facts
    available to the non-responsive companies, see ``Use of Facts Otherwise
    Available and Adverse Inferences'' in the Preliminary Determination
    Memorandum.

    Preliminary Determination

        Commerce preliminarily determines that the following estimated
    countervailable subsidy rates exist:

    [[Page 53325]]

    ------------------------------------------------------------------------
                                                               Subsidy rate
                             Company                            Ad Valorem
                                                                 (percent)
    ------------------------------------------------------------------------
    Ningbo Eagle Machinery & Technology Co., Ltd............           25.91
    Wuyi Xilinde Machinery Manufacture Co., Ltd.............           22.97
    All Others..............................................           24.11
    Jiangsu Kasidi Chemical Machinery Co., Ltd..............          190.67
    Jinhua Sinoblue Machinery Manufacturing Co., Ltd........          190.67
    Ningbo Runkey CGA Cylinders Co., Ltd....................          190.67
    Ninhua Group Co., Ltd...................................          190.67
    Shanghai Ronghua High-Pressure Vessel Co., Ltd..........          190.67
    Zhejiang Ansheng Mechanical Manufacture Co., Ltd........          190.67
    Zhejiang Nof Chemical Co., Ltd..........................          190.67
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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 seven 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); Temporary Rule Modifying AD/CVD Service
    Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020)
    (Temporary Rule); and Temporary Rule Modifying AD/CVD Service
    Requirements Due to COVID-19; Extension of Effective Period, 85 FR
    41363 (July 10, 2020).
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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 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.
        Parties are reminded that briefs and hearing requests are to be
    filed electronically using ACCESS and that electronically filed
    documents must be received successfully in their entirety by 5 p.m.
    Eastern Time on the due date. Note that Commerce has temporarily
    modified certain of its requirements for serving documents containing
    business proprietary information, until further notice.\15\
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        \15\ See Temporary Rule.
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    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
    Commerce's final determination is affirmative, the ITC will make its
    final determination 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: August 24, 2020.
    Jeffrey I. Kessler,
    Assistant Secretary for Enforcement and Compliance.

    Appendix I

    Scope of the Investigation

        The merchandise covered by this investigation is certain seamed
    (welded or brazed), non-refillable steel cylinders meeting the
    requirements of, or produced to meet the requirements of, U.S.
    Department of Transportation (USDOT) Specification 39,
    TransportCanada Specification 39M, or United Nations pressure
    receptacle standard ISO 11118 and otherwise meeting the description
    provided below (non-refillable steel cylinders). The subject non-
    refillable steel cylinders are portable and range from 300-cubic
    inch (4.9 liter) water capacity to 1,526-cubic inch (25 liter) water
    capacity. Subject non-refillable steel cylinders may be imported
    with or without a valve and/or pressure release device and unfilled
    at the time of importation.
        Specifically excluded are seamless non-refillable steel
    cylinders.
        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). The merchandise may also under HTSUS statistical reporting
    numbers 7310.29.0025 and 7310.29.0050. 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 Preliminary Decision Memorandum

    I. Summary
    II. Background
    III. Scope Comments
    IV. Scope of the Investigation
    V. Diversification of China's Economy
    VI. Subsidies Valuation
    VII. Use of Facts Otherwise Available and Adverse Inferences
    VIII. Benchmarks and Interest Rates
    IX. Analysis of Programs
    X. Calculation of the All-Others Rate
    XI. Recommendation

    [FR Doc. 2020-18991 Filed 8-27-20; 8:45 am]
    BILLING CODE 3510-DS-P