[Federal Register Volume 86, Number 53 (Monday, March 22, 2021)]
[Notices]
[Pages 15192-15195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05813]


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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: Final Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) 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 China (China).

DATES: Applicable March 22, 2021.

FOR FURTHER INFORMATION CONTACT: Kristen Johnson or John Conniff, AD/

[[Page 15193]]

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

    The petitioner in this investigation is Worthington Industries. The 
mandatory respondents subject to this investigation are Ningbo Eagle 
Machinery & Technology Co., Ltd. (Ningbo Eagle) and Wuyi Xilinde 
Machinery Manufacture Co., Ltd. (Wuyi Xilinde).
    On August 28, 2020, Commerce published the Preliminary 
Determination in the Federal Register.\1\ In the Preliminary 
Determination, in accordance with section 705(a)(1) of the Tariff Act 
of 1930, as amended (the Act), and 19 CFR 351.210(b)(4), Commerce 
aligned the final CVD determination in this investigation with the 
final antidumping duty (AD) determination in the companion AD 
investigation of non-refillable cylinders from China.
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    \1\ See 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, 85 FR 53323 (August 28, 2020) 
(Preliminary Determination), and accompanying Preliminary Decision 
Memorandum (PDM).
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    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 which is hereby adopted by this 
notice.\2\ The Issues and 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 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.
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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative 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 (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation is January 1, 2019, through December 
31, 2019.

Scope of the Investigation

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

Scope Comments

    On October 23, 2020, Commerce issued the Preliminary Scope Decision 
Memorandum in which it determined to modify the language of the scope 
as it regards non-refillable cylinders filled with compressed air.\3\ 
We received no comments from interested parties regarding the 
Preliminary Scope Decision Memorandum. Thus, the scope of the 
investigation, as contained in the Preliminary Scope Decision 
Memorandum, remains unchanged.
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    \3\ See Memorandum, ``Antidumping 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) at 7-
8.
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
raised by parties, and to which we responded in the Issues and Decision 
Memorandum, is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found countervailable, 
Commerce 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.\4\ For a full description 
of the methodology underlying our final determination, see the Issues 
and Decision Memorandum.
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    \4\ 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 this final determination, Commerce relied, in part, on 
facts available pursuant to section 776(a) of the Act. Additionally, as 
discussed in the Issues and Decision Memorandum, because one or more 
respondents did not act to the best of their ability in responding to 
our requests for information, we drew adverse inferences, where 
appropriate, in selecting from among the facts otherwise available, 
pursuant to section 776(b) of the Act. This includes seven companies 
that did not respond to Commerce's quantity and value questionnaire; as 
described in the Preliminary Determination,\5\ we have applied an 
adverse inference in selection of facts available for determining the 
subsidy rates for these companies, pursuant to section 776(d) of the 
Act. For further information, see the section ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the accompanying Issues and 
Decision Memorandum.
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    \5\ See Preliminary Determination PDM at 7-8, section 
``Application of AFA: Non-Responsive Q&V Questionnaire Recipients.''
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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 Act.\6\
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    \6\ See Commerce's Letter, ``Countervailing Duty Investigation 
of Certain Non-Refillable Steel Cylinders from the People's Republic 
of China: Verification Questionnaire,'' dated November 5, 2020; see 
also Commerce's Letter, ``Verification Questionnaire for Wuyi 
Xilinde,'' dated November 16, 2020.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, we made certain changes to Wuyi Xilinde's subsidy rate 
calculations, the adverse facts available rate assigned to firms that 
did not respond to Commerce's quantity and value questionnaire, and the 
all-others rate. For a discussion of these changes, see the Issues and 
Decision Memorandum.

All-Others Rate

    In accordance with section 705(c)(1)(B)(i)(I) of the Act, Commerce 
calculated a countervailable subsidy rate for the individually 
investigated exporters/producers of the subject merchandise. Section 
705(c)(5)(A) of the Act provides that, in the final determination, 
Commerce shall determine an estimated all-others rate for companies not 
individually examined. The rate shall be an amount equal to the 
weighted average of the estimated subsidy rates established for those 
companies individually examined, excluding any rates that are zero, de 
minimis, or rates based entirely under section 776 of the Act.
    In this investigation, as discussed in the Issues and Decision 
Memorandum, Commerce calculated individual estimated countervailable 
subsidy rates

[[Page 15194]]

for Ningbo Eagle and Wuyi Xilinde that were not zero, de minimis, or 
based entirely under section 776 of the Act. However, notwithstanding 
the language of section 705(c)(5)(A)(i) of the Act, we have not 
calculated the all-others rate by weight-averaging the rates of the two 
individually investigated respondents, because doing so risks 
disclosure of proprietary information. We therefore calculated a 
weighted-average all-others rate using the mandatory respondents' 
publicly ranged U.S. export sales value for the subject merchandise.\7\
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    \7\ With two respondents under examination, Commerce normally 
calculates (A) a weighted-average of the estimated subsidy rates 
calculated for the examined respondents; (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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Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                               Subsidy
                                                                 rate
                          Company                             (percent)
                                                              ad valorem
------------------------------------------------------------------------
Ningbo Eagle Machinery & Technology Co., Ltd...............        25.91
Wuyi Xilinde Machinery Manufacture Co., Ltd................        18.37
All Others.................................................        21.28
Jiangsu Kasidi Chemical Machinery Co., Ltd.................       186.18
Jinhua Sinoblue Machinery Manufacturing Co., Ltd...........       186.18
Ningbo Runkey CGA Cylinders Co., Ltd.......................       186.18
Ninhua Group Co., Ltd......................................       186.18
Shanghai Ronghua High-Pressure Vessel Co., Ltd.............       186.18
Zhejiang Ansheng Mechanical Manufacture Co., Ltd...........       186.18
Zhejiang Nof Chemical Co., Ltd.............................       186.18
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Disclosure

    Commerce intends 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 in accordance 
with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, we instructed 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, 
effective August 28, 2020, which is the date of publication of the 
Preliminary Determination in the Federal Register. In accordance with 
section 703(d) of the Act, effective December 26, 2020, we instructed 
CBP to discontinue the suspension of liquidation of all entries at that 
time, but to continue the suspension of liquidation of all entries 
between August 28, 2020, and December 25, 2020.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, reinstate 
the suspension of liquidation and require a cash deposit of estimated 
countervailing duties for such entries of subject merchandise in the 
amounts indicated above, in accordance with section 706(a) of the Act. 
If the ITC determines that material injury, or threat of material 
injury, does not exist, this proceeding will be terminated, and all 
estimated duties deposited or securities posted as a result of the 
suspension of liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our affirmative determination that countervailable subsidies are 
being provided to producers and exporters of non-refillable cylinders 
from China. Because the final determination in this proceeding is 
affirmative, in accordance with section 705(b) 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 of non-refillable cylinders from China no 
later than 45 days after our final determination. If the ITC determines 
that material injury or threat of material injury does not exist, this 
proceeding will be terminated, and all cash deposits will be refunded. 
If the ITC determines that such injury does exist, Commerce will issue 
a countervailing duty order directing CBP to assess, upon further 
instruction by Commerce, countervailing duties on all imports of the 
subject merchandise that are entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation, as discussed above in the ``Continuation of Suspension of 
Liquidation'' section.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an administrative protective order (APO) of their 
responsibility concerning the destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
written notification of the return/destruction of APO materials or 
conversion to judicial protective order is hereby requested. Failure to 
comply with the regulations and terms of an APO is a violation which is 
subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: March 15, 2021.
Christian Marsh,
Acting 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

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written description of the merchandise is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Analysis of Comments
    Comment 1: Countervailability of the Export Buyer's Credits 
Program
    Comment 2: Countervailability of the Provision of Electricity 
for Less Than Adequate Remuneration (LTAR) Program
    Comment 3: Whether a Basis Exists for Commerce to Countervail 
``Other'' Subsidies
    Comment 4: Whether to Apply Total Adverse Facts Available to 
Wuyi Xilinde Concerning the Provision of Cold-Rolled Steel (CRS) for 
LTAR Program
    Comment 5: Whether Commerce Should Adjust the Inland Freight 
Rate Used in Wuyi Xilinde's Benefit Calculation under the Provision 
of CRS from LTAR Program
    Comment 6: Whether Commerce Should Adjust the Benchmark Interest 
Rate Used to Measure the Benefit to Wuyi Xilinde Under the Policy 
Loans to the Non- Refillable Steel Industry Program
    Comment 7: Whether Commerce Used an Incorrect Benefit Amount in 
the Net Subsidy Rate Calculations for Wuyi Xilinde Under the Subsidy 
to Loan Interests for Shanghai Cooperative Enterprise and Subsidy to 
Unemployment Insurance Payment Programs
    Comment 8: Whether Commerce Should Revise the Benefit 
Calculation for Wuyi Xilinde Under the Income Tax Deductions for 
Research and Development Expenses Program
    Comment 9: Whether Commerce Committed a Ministerial Error in 
Wuyi Xilinde's Benefit Calculation for the Policy Loans to the Non-
Refillable Containers Industry Program
    Comment 10: Whether Commerce Committed a Ministerial Error in 
Wuyi Xilinde's Benefit Calculation for the Export Oriented Grants 
Program
IX. Calculation of All-Others Rate
X. Recommendation

[FR Doc. 2021-05813 Filed 3-19-21; 8:45 am]
 BILLING CODE 3510-DS-P