[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)
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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