[Federal Register Volume 85, Number 211 (Friday, October 30, 2020)]
[Notices]
[Pages 68852-68855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24064]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-126]


Certain Non-Refillable Steel Cylinders From the People's Republic 
of China: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, Postponement of Final Determination and Extension of 
Provisional Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that non-refillable steel cylinders (non-refillable cylinders) from 
People's Republic of China (China) are, or are likely to be, sold in 
the United States at less than fair value (LTFV). The period of 
investigation is July 1, 2019 through December 31, 2019. Interested 
parties are invited to comment on this preliminary determination.

DATES: Applicable October 30, 2020.

FOR FURTHER INFORMATION CONTACT: Katherine Sliney or Joy Zhang, 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) 482-2437 or (202) 482-1168, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended

[[Page 68853]]

(the Act). Commerce published the notice of initiation of this 
investigation on April 22, 2020.\1\ On August 26, 2020, Commerce 
postponed the preliminary determination of this investigation, and the 
revised deadline is now October 23, 2020.\2\ For a complete description 
of the events that followed the initiation of this investigation, see 
the Preliminary Decision Memorandum.\3\ 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. In 
addition, a complete version of the Preliminary Decision Memorandum can 
be accessed directly at http://enforcement.trade.gov/frn/. The signed 
and the electronic versions of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See Certain Non-Refillable Steel Cylinders from the People's 
Republic of China: Initiation of Less-Than-Fair-Value Investigation, 
85 FR 22402 (April 22, 2020) (Initiation Notice).
    \2\ See Non-Refillable Steel Cylinders from the People's 
Republic of China: Postponement of Preliminary Determination in the 
Less-Than-Fair-Value Investigation, 85 FR 52548 (August 26, 2020).
    \3\ See Memorandum, ``Certain Non-Refillable Steel Cylinders 
from the People's Republic of China: Decision Memorandum for the 
Preliminary Affirmative Determination of Sales at the Less-Than-
Fair-Value,'' 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 certain 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 (scope).\5\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. For a summary of all scope related comments 
submitted to the record for this investigation and accompanying 
discussion and analysis of all comments timely received, see the 
Preliminary Scope Decision Memorandum.\6\ Commerce is preliminarily 
modifying the scope language as it appeared in the Initiation Notice. 
See the revised scope in Appendix I to this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
    \6\ See Memorandum, ``Antidumping Duty and Countervailing Duty 
Investigations on Certain Non-Refillable Steel Cylinders from the 
People's Republic of China: Preliminary Scope Decision Memorandum'' 
(Preliminary Scope Decision Memorandum), dated concurrently with 
this preliminary determination.
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    The Preliminary Scope Decision Memorandum establishes the deadline 
to submit scope case briefs.\7\ There will be no further opportunity 
for comments on scope-related issues.
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    \7\ Case briefs, other written comments, and rebuttal briefs 
submitted by in response to this preliminary LTFV determination 
should not include scope-related issues. See Preliminary Scope 
Decision Memorandum and ``Public Comment'' section of this notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act, 
Commerce has calculated normal value (NV) in accordance with section 
773(c) of the Act.
    In addition, Commerce has relied on facts available under section 
776(a) of the Act to determine the cash deposit rate assigned to the 
China-wide entity. Furthermore, pursuant to sections 776(a) and (b) of 
the Act, because the China-wide entity did not cooperate to the best of 
its ability in responding to Commerce's requests for data, Commerce 
preliminarily has relied upon facts otherwise available, with adverse 
inferences, for the China-wide entity. For a full description of the 
methodology underlying Commerce's preliminary determination, see the 
Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,\8\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\9\ In this investigation, we calculated 
producer/exporter combination rates for respondents eligible for 
separate rates.
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    \8\ See Initiation Notice, 85 FR at 22406.
    \9\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

----------------------------------------------------------------------------------------------------------------
                                                                                              Cash deposit rate
                                                                       Estimated weighted-      (adjusted for
               Exporter                           Producer               average dumping      subsidy offsets)
                                                                        margin (percent)          (percent)
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Sanjiang Kai Yuan Co. Ltd............  Sanjiang Kai Yuan Co. Ltd....                 95.14                 77.12
Wuyi Xilinde Machinery Manufacture     Wuyi Xilinde Machinery                        57.83                 46.28
 Co., Ltd.                              Manufacture Co., Ltd.
Hangzhou JM Chemical Co., Ltd........  Hangzhou JM Chemical Co., Ltd                 69.09                 55.86
Ningbo Eagle Machinery & Technology    Jinhua Sinoblue Machinery                     69.09                 58.55
 Co., Ltd.                              Manufacturing Co., Ltd.
Zhejiang Kin-Shine Technology Co.,     Zhejiang Kin-Shine Technology                 69.09                 55.86
 Ltd.                                   Co., Ltd.
T.T. International Co. Ltd...........  Wuyi Xilinde Machinery                        69.09                 55.86
                                        Manufacture Co., Ltd.
ICOOL International Commerce Limited.  ICOOL International Commerce                  69.09                 55.86
                                        Limited.
China-Wide Entity....................  .............................                114.58                104.04
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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 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, 
as discussed below. 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 weighted average amount by which normal value 
exceeds U.S. price, as indicated in the chart

[[Page 68854]]

above as follows: (1) For the producer/exporter combinations listed in 
the table above, the cash deposit rate is equal to the estimated 
weighted-average dumping margin listed for that combination in the 
table; (2) for all combinations of Chinese producers/exporters of 
subject merchandise that have not established eligibility for their own 
separate rates, the cash deposit rate will be equal to the estimated 
weighted-average dumping margin established for the China-wide entity; 
and (3) for all third-county exporters of subject merchandise not 
listed in the table above, the cash deposit rate is the cash deposit 
rate applicable to the Chinese producer/exporter combination (or China-
wide entity) that supplied that third-country exporter.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce has made a preliminary 
affirmative determination for domestic subsidy pass-through or export 
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted 
rates may be found in the chart of estimated weighted-average dumping 
margins, above.\10\
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    \10\ For further discussion of the methodology and calculation 
of these adjustments, see Preliminary Decision Memorandum; see also 
Memorandum, ``Calculation of Export Subsidy Adjustments for the 
Preliminary Determination,'' dated concurrently with this notice.
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    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margins calculated in this preliminary determination unadjusted for the 
passed-through domestic subsidies or for export subsidies at the time 
the CVD provisional measures expire.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this preliminary determination within five 
days of its 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

    Commerce is currently unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. Accordingly, we intend to take additional steps in lieu 
of on-site verification. Commerce will notify interested parties of any 
additional documentation or information required.

Public Comment

    Case briefs or other written comments on non-scope issues may be 
submitted to the Assistant Secretary for Enforcement and Compliance. A 
timeline for the submission of case briefs and written comments will be 
provided to interested parties at a later date. Rebuttal briefs, 
limited to issues raised in case briefs, may be submitted no later than 
seven days after the deadline date for case briefs.\11\ 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\ 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 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 petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by respondents for postponement of a final antidumping 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On October 15, 2020 and October 16, 2020, pursuant to 19 CFR 
351.210(e), Wuyi Xilinde Machinery Manufacture Co., Ltd. (Wuyi Xilinde) 
and Sanjiang Kai Yuan Co. Ltd. (SKY) requested that Commerce postpone 
the final determination and that provisional measures be extended to a 
period not to exceed six months, respectively.\12\ 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 
exporters account 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's final determination will 
publish no later than 135 days after the date of publication of this 
preliminary determination.
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    \12\ See Wuyi Xilinde's Letter, ``Certain Non-Refillable Steel 
Cylinders from the People's Republic of China: Request to Postpone 
the Final Determination of the Investigation,'' dated October 15, 
2020; see also SKY's Letter, ``Certain Non-Refillable Steel 
Cylinders from China; A-570-126; Request to Postpone the Final 
Determination,'' dated October 16, 2020.
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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 of sales at LTFV. 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 imports of the subject merchandise are materially 
injuring, or threaten material injury to, the U.S. industry.

[[Page 68855]]

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: October 23, 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. Non-refillable steel cylinders filled 
with pressurized air otherwise meeting the physical description 
above are covered by this investigation.
    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 enter 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. Period of Investigation
IV. Scope of Investigation
V. Scope Comments
VI. Discussion of the Methodology
VII. Currency Conversion
VIII. Adjustment for Countervailable Export Subsidies
IX. Adjustment Under Section 777A(f) of the Act
X. Recommendation

[FR Doc. 2020-24064 Filed 10-29-20; 8:45 am]
BILLING CODE 3510-DS-P