[Federal Register Volume 86, Number 53 (Monday, March 22, 2021)]
[Notices]
[Pages 15188-15190]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05757]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-126]


Non-Refillable Steel Cylinders from the People's Republic of 
China: Final Affirmative Determination of Sales at Less Than Fair Value

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

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

DATES: Applicable March 22, 2021.

FOR FURTHER INFORMATION CONTACT: Katherine Sliney and 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 and (202) 482-1168, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 30, 2020, Commerce published its Preliminary 
Determination in the antidumping duty investigation of non-refillable 
cylinders from China.\1\ A 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 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, 85 FR 68852 (October 30, 2020) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum (PDM).
    \2\ See Memorandum, ``Certain Non-Refillable Steel Cylinders 
from the People's Republic of China: Decision Memorandum for the 
Final Affirmative Determination of Sales at Less-Than-Fair-Value,'' 
dated concurrently with, and hereby adopted by, this notice (Issues 
and Decision Memorandum).
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Period of Investigation

    The POI is July 1, 2019, through December 31, 2019.

Scope of the Investigation

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

Scope Comments

    On October 23, 2020, we issued the Preliminary Scope Decision 
Memorandum.\3\ We received no scope case briefs from interested 
parties. Therefore, Commerce has made no changes to the scope of this 
investigation since the Preliminary Determination.
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    \3\ 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,'' 
dated October 23, 2020 (Preliminary Scope Decision Memorandum).
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Analysis of 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 Memorandum. A list of the issues raised by parties and 
responded to by Commerce in the Issues and Decision Memorandum is 
attached to this notice as Appendix II. The Issues and Decision 
Memorandum is a public document and is available electronically via 
Enforcement and Compliance's

[[Page 15189]]

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

Verification

    Commerce was unable to conduct on-site verification of the 
information relied upon in making its final determination in this 
investigation. However, we took additional steps in lieu of an on-site 
verification to verify the information relied upon in making this final 
determination, in accordance with section 782(i) of the Tariff Act of 
1930, as amended (the Act).\4\
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    \4\ See Commerce's Letters, ``Non-Refillable Steel Cylinders 
from China: Verification Questionnaire,'' dated December 1, 2020; 
see also SKY's Letter, ``Certain Non-Refillable Steel Cylinders from 
China; A-570-126; Response to Questionnaire Issued in Lieu of 
Verification,'' dated December 8, 2020; and Wuyi Xilinde's Letter, 
``Certain Non-Refillable Steel Cylinders from the People's Republic 
of China: Submission of uyi Xilinde Machinery Manufacture Co., 
Ltd.'s Verification Response,'' dated December 8, 2020.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and additional 
information obtained since our preliminary findings, we made certain 
changes to the margin calculations for Sanjiang Kai Yuan Co. Ltd (SKY) 
and Wuyi Xilinde Machinery Manufacture Co., Ltd. (Wuyi Xilinde) since 
the Preliminary Determination. For a discussion of these changes, see 
the Issues and Decision Memorandum.

Separate Rate Companies

    No party commented on our preliminary separate rate determinations 
with respect to the mandatory respondents and the non-individually 
examined companies; thus, we find no basis to reconsider our 
preliminary determinations with respect to separate rate status, and we 
have continued to grant these companies separate rates in this final 
determination.

China-Wide Entity Rate and the Use of Adverse Facts Available

    Commerce continues to find that the use of facts available is 
warranted in determining the rate of the China-wide entity, pursuant to 
sections 776(a)(1) and (a)(2)(A)-(C) of the Act. As discussed in the 
Issues and Decision Memorandum, Commerce finds that the use of adverse 
facts available (AFA) is warranted with respect to the China-wide 
entity because the China-wide entity did not cooperate to the best of 
its ability to comply with our requests for information and, 
accordingly, we applied adverse inferences in selecting from the facts 
available, pursuant to section 776(b) of the Act and 19 CFR 351.308(a).
    For the final determination, as AFA, we are assigning the China-
wide entity the highest calculated individual dumping margin calculated 
for SKY, 112.21 percent. Because this constitutes primary information, 
the statutory corroboration requirement in section 776(c) of the Act 
does not apply.

Combination Rates

    Consistent with the Preliminary Determination, Commerce calculated 
exporter/producer combination rates for the respondents that are 
eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\5\
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    \5\ 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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Final Determination

    The estimated weighted-average dumping margins are as follows:

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                                                                                Estimated      Cash deposit rate
                                                                            weighted- average     (adjusted for
                  Exporter                              Producer              dumping  margin   subsidy offsets)
                                                                                (percent)          (percent)
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Sanjiang Kai Yuan Co. Ltd. (SKY)...........  Sanjiang Kai Yuan Co. Ltd....              93.09              75.84
Wuyi Xilinde Machinery Manufacture Co.,      Wuyi Xilinde Machinery                     74.33              63.56
 Ltd. (Wuyi Xilinde).                         Manufacture Co., Ltd.
Hangzhou JM Chemical Co., Ltd..............  Hangzhou JM Chemical Co., Ltd              79.99              67.33
Ningbo Eagle Machinery & Technology Co.,     Jinhua Sinoblue Machinery                  79.99              69.45
 Ltd..                                        Manufacturing Co., Ltd.
Zhejiang Kin-Shine Technology Co., Ltd.....  Zhejiang Kin-Shine Technology              79.99              67.33
                                              Co., Ltd.
T.T. International Co. Ltd.................  Wuyi Xilinde Machinery                     79.99              67.33
                                              Manufacture Co., Ltd.
ICOOL International Commerce Limited.......  ICOOL International Commerce               79.99              67.33
                                              Limited.
China-Wide Entity..........................  .............................             112.21             101.67
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Disclosure

    We intend to disclose to interested parties the calculations and 
analysis performed in this final determination within five days of any 
public announcement or, if there is no public announcement, within five 
days of the date of the publication of this notice to parties in this 
proceeding in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we intend to 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of non-refillable 
cylinders from China, as described in the appendix to this notice, 
which were entered, or withdrawn from warehouse, for consumption on or 
after October 30, 2020, the date of publication of the Preliminary 
Determination of this investigation in the Federal Register.
    Pursuant to section 735(c)(1)(B)(ii) of the Act, upon the 
publication of this notice, Commerce intends to instruct CBP to require 
a cash deposit equal to the weighted-average amount by which the normal 
value exceeds U.S. price as follows: (1) The cash deposit rate for the 
exporter/producer combinations listed in the table above will be the 
rate identified in the table; (2) for all combinations of Chinese 
exporters/

[[Page 15190]]

producers of subject merchandise that have not received their own 
separate rate above, the cash deposit rate will be the cash deposit 
rate established for the China-wide entity; and (3) for all non-Chinese 
exporters of subject merchandise which have not received their own 
separate rate above, the cash deposit rate will be the cash deposit 
rate applicable to the Chinese exporter/producer combination that 
supplied that non-Chinese exporter. These suspension of liquidation 
instructions will remain in effect until further notice.
    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 makes an affirmative 
determination for domestic subsidy pass-through or export subsidies, 
Commerce offsets the calculated estimated weighted-average dumping 
margin by the appropriate rates. Commerce continues to find that SKY 
and all non-individually-examined companies found eligible for a 
separate rate qualify for a double-remedy adjustment. Further, we have 
continued to adjust the cash deposit rates for SKY, Wuyi Xilinde, all 
non-individually-examined separate rate companies, and the China-wide 
entity for export subsidies in the companion CVD investigation by the 
appropriate export subsidy rates \6\ as indicated in the above chart. 
However, suspension of liquidation according to provisional measures in 
the companion CVD case has been discontinued effective December 26, 
2020; therefore, we are not instructing CBP to collect cash deposits 
based upon the adjusted estimated weighted-average dumping margin for 
those export subsidies and double remedy adjustment at this time.
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    \6\ See Memorandum, ``Non-Refillable Steel Cylinders from the 
People's Republic of China: Double Remedies and Export Subsidy 
Offset Calculation,'' dated concurrently with this notice.
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International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) 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 non-refillable cylinders no 
later than 45 days after our 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 material injury or threat of material injury 
does exist, Commerce will issue an antidumping duty order directing CBP 
to assess, upon further instruction by Commerce, antidumping 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 an 
administrative protective order (APO) of their responsibility 
concerning the disposition 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 judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a violation subject to sanction.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: March 15, 2021.
Christian Marsh,
Acting Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

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 Issues and Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope of Investigation
V. China-Wide Rate
VI. Changes Since the Preliminary Determination
VII. Discussion of the Issues
    Comment 1: Treatment of Irrecoverable Value-Added Taxes (VAT)
    Comment 2: Selection of Primary Surrogate Country
    Comment 3: Use of Siraga's Financial Statement for Surrogate 
Financial Ratios
    Comment 4: Use of a Simple Average or Weighted Average for 
Surrogate Financial Ratio
    Comment 5: Treatment of Overhead Items
    Comment 6: Carton Inputs as Packing Expense or Packaging Cost
    Comment 7: Adhesive Tape, Hot Glue, and Iron Wire Inputs as 
Packing Expense or Packaging Cost
    Comment 8: Factor of Production for Code-Spurting Ink
    Comment 9: Selection of the Port of Haimen or Ningbo as the 
Closest Port
    Comment 10: Treatment of Argon and Carbon Dioxide Welding 
Materials
    Comment 11: Correction of Movement Expenses
    Comment 12: Paint Factor of Production for Paint Dissolved in 
Organic Solvent
    Comment 13: Shipment Date Adjustment
    Comment 14: Separate Rate Request
VIII. Recommendation

[FR Doc. 2021-05757 Filed 3-19-21; 8:45 am]
BILLING CODE 3510-DS-P