[Federal Register Volume 86, Number 221 (Friday, November 19, 2021)]
[Notices]
[Pages 64899-64901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25280]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-086]


Steel Propane Cylinders From the People's Republic of China: 
Notice of Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstance Review

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

SUMMARY: The Department of Commerce (Commerce) is initiating a changed 
circumstances review of the antidumping duty (AD) order on steel 
propane cylinders from the People's Republic of China (China). Further, 
Commerce preliminarily determines that Yi Jun Hong Kong Limited (Yi 
Jun) is the successor-in-interest to Hong Kong GSBF Company Limited 
(GSBF) and should be assigned the same AD cash deposit rates for 
purposes of determining AD liability. Interested parties are invited to 
comment on these preliminary results.

DATES: Effective November 19, 2021.

FOR FURTHER INFORMATION CONTACT: Katherine Sliney, 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.

SUPPLEMENTARY INFORMATION:

Background

    On August 15, 2019, Commerce published in the Federal Register the 
AD order on steel propane cylinders from China.\1\ On September 30, 
2021, Commerce received a request on behalf of Yi Jun for an expedited 
changed circumstances review, pursuant to section 751(b)(1) of the 
Tariff Act of 1930, as amended (the Act) and 19 CFR 351.216(b), to 
establish Yi Jun as the successor-in-interest to GSBF, a Hong Kong 
trading company and exporter of steel propane cylinders from China 
produced by GSBF's affiliated producer, GSBF Tank, and thus, entitled 
to the AD cash deposit rate of GSBF.\2\ We did not receive comments 
from other interested parties concerning this request.
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    \1\ See Steel Propane Cylinders from the People's Republic of 
China and Thailand: Amended Final Determination of Sales at Less 
Than Fair Value and Antidumping Duty Orders, 84 FR 41703 (August 15, 
2019) (Order).
    \2\ See Yi Jun's Letter, ``Steel Propane Cylinders from the 
People's Republic of China--Yi Jun/GSBF Changed Circumstances 
Review,'' dated September 30, 2021 (CCR Request).
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Scope of the Order

    The merchandise covered by the Order is steel cylinders for 
compressed or liquefied propane or other gases (steel propane 
cylinders) meeting the requirements of, or produced to meet the 
requirements of, U.S. Department of Transportation (USDOT) 
Specifications 4B, 4BA, or 4BW, or Transport Canada Specification 4BM, 
4BAM, or 4BWM, or United Nations pressure receptacle standard ISO 4706 
and otherwise meeting the description provided below. The scope 
includes steel propane cylinders regardless of whether they have been 
certified to these specifications before importation. Steel propane 
cylinders range from 2.5 pound nominal gas capacity (approximate 6 
pound water capacity and approximate

[[Page 64900]]

4-6 pound tare weight) to 42 pound nominal gas capacity (approximate 
100 pound water capacity and approximate 28-32 pound tare weight). 
Steel propane cylinders have two or fewer ports and may be imported 
assembled or unassembled (i.e., welded or brazed before or after 
importation), with or without all components (including collars, 
valves, gauges, tanks, foot rings, and overfill prevention devices), 
and coated or uncoated. Also included within the scope are drawn 
cylinder halves, unfinished propane cylinders, collars, and foot rings 
for steel propane cylinders.
    An ``unfinished'' or ``unassembled'' propane cylinder includes 
drawn cylinder halves that have not been welded into a cylinder, 
cylinders that have not had flanges welded into the port hole(s), 
cylinders that are otherwise complete but have not had collars or foot 
rings welded to them, otherwise complete cylinders without a valve 
assembly attached, and cylinders that are otherwise complete except for 
testing, certification, and/or marking.
    The Order also covers steel propane cylinders that meet, are 
produced to meet, or are certified as meeting, other U.S. or Canadian 
government, international, or industry standards (including, for 
example, American Society of Mechanical Engineers (ASME), or American 
National Standard Institute (ANSI)), if they also meet, are produced to 
meet, or are certified as meeting USDOT Specification 4B, 4BA, or 4BW, 
or Transport Canada Specification 4BM, 4BAM, or 4BWM, or a United 
Nations pressure receptacle standard ISO 4706.
    Subject merchandise also includes steel propane cylinders that have 
been further processed in a third country, including but not limited 
to, attachment of collars, foot rings, or handles by welding or 
brazing, heat treatment, painting, testing, certification, or any other 
processing that would not otherwise remove the merchandise from the 
scope of the Order if performed in the country of manufacture of the 
in-scope steel propane cylinders.
    Specifically excluded are seamless steel propane cylinders and 
propane cylinders made from stainless steel (i.e., steel containing at 
least 10.5 percent chromium by weight and less than 1.2 percent carbon 
by weight), aluminum, or composite fiber material. Composite fiber 
material is material consisting of the mechanical combination of two 
components: Fiber (typically glass, carbon, or aramid (synthetic 
polymer)) and a matrix material (typically polymer resin, ceramic, or 
metallic).
    The merchandise subject to the Order is properly classified under 
statistical reporting numbers 7311.00.0060 and 7311.00.0090 of the 
Harmonized Tariff Schedule of the United States (HTSUS). Although the 
HTSUS statistical reporting numbers are provided for convenience and 
customs purposes, the written description of the merchandise is 
dispositive.

Initiation and Preliminary Results

    Pursuant to section 751(b)(1) of the Act, Commerce will conduct a 
changed circumstances review upon receipt of information concerning, or 
a request from, an interested party for a review of an AD order which 
shows changed circumstances sufficient to warrant a review of the 
order. In the past, Commerce has used changed circumstances reviews to 
address the applicability of cash deposit rates after there have been 
changes in the name or structure of a respondent, such as a merger or 
spinoff (`successor-in-interest' or `successorship' determinations).\3\ 
Based on a review of the request from Yi Jun, and in accordance with 
section 751(b) of the Act and 19 CFR 351.216(d) and (e), we find that 
the information submitted in the CCR Request supporting Yi Jun's claim 
that it should be treated as the successor-in-interest to GSBF is 
sufficient to warrant such a review to determine whether Yi Jun is 
entitled to GSBF's AD cash deposit rate.
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    \3\ See, e.g., Diamond Sawblades and Parts Thereof from the 
People's Republic of China: Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review, 82 FR 51605, 51606 
(November 7, 2017) (Diamond Sawblades Preliminary), unchanged in 
Diamond Sawblades and Parts Thereof from the People's Republic of 
China: Final Results of Antidumping Duty Changed Circumstances 
Review, 82 FR 60177 (December 19, 2017) (Diamond Sawblades Final).
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    Section 351.221(c)(3)(ii) of Commerce's regulations permits 
Commerce to combine the notice of initiation of a changed circumstances 
review and the notice of preliminary results if Commerce concludes that 
expedited action is warranted.\4\ In this instance, because the record 
contains information necessary to make a preliminary finding, we find 
that expedited action is warranted and have combined the notice of 
initiation and the notice of preliminary results.\5\
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    \4\ See 19 CFR 351.221(c)(3)(ii); see also Certain Pasta from 
Italy: Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstances Review, 80 FR 33480, 33480-41 (June 12, 2015) 
(Pasta from Italy Preliminary Results), unchanged in Certain Pasta 
from Italy: Final Results of Changed Circumstances Review, 80 FR 
48807 (August 14, 2015) (Pasta from Italy Final Results.
    \5\ See, e.g., Pasta from Italy Preliminary Results, 80 FR at 
33480-41, unchanged in Pasta from Italy Final Results, 80 FR at 
48807.
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    Accordingly, pursuant to section 751(b) of the Act, we have 
conducted a successor-in-interest analysis in response to Yi Jun's 
request. In making a successor-in-interest determination, Commerce 
examines several factors, including, but not limited to, changes in the 
following: (1) Management; (2) production facilities; (3) supplier 
relationships; and (4) customer base.\6\ While no single factor or 
combination of factors will necessarily provide a dispositive 
indication of a successor-in-interest relationship, generally, Commerce 
will consider the new company to be the successor to the previous 
company if the new company's resulting operation is not materially 
dissimilar to that of its predecessor.\7\ Thus, if the evidence 
demonstrates that, with respect to the production and sales of the 
subject merchandise, the new company operates as essentially the same 
business entity as the former company, Commerce will accord the new 
company the same antidumping treatment as its predecessor.\8\
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    \6\ See, e.g., Diamond Sawblades Final; and Certain Frozen 
Warmwater Shrimp from India: Initiation and Preliminary Results of 
Antidumping Duty Changed Circumstances Review, 83 FR 37784 (August 
2, 2018), unchanged in Certain Frozen Warmwater Shrimp from India: 
Notice of Final Results of Antidumping Duty Changed Circumstances 
Review, 83 FR 49909 (October 3, 2018).
    \7\ Id.
    \8\ See also, e.g., Notice of Initiation and Preliminary Results 
of Antidumping Duty Changed Circumstances Review: Certain Frozen 
Warmwater Shrimp from India, 77 FR 64953 (October 24, 2012), 
unchanged in Final Results of Antidumping Duty Changed Circumstances 
Review: Certain Frozen Warmwater Shrimp from India, 77 FR 73619 
(December 11, 2012).
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    We preliminarily determine that Yi Jun supplied sufficient evidence 
to determine that Yi Jun is the successor-in-interest to GSBF. 
Specifically, Yi Jun provided documentation demonstrating approval of 
GSBF's name change by GSBF's shareholders \9\ (which remained unchanged 
from the underlying investigation, as well as the shareholders of its 
affiliated supplier, GSBF Tank), noting that GSBF's shareholders 
decided to change the company name and start building their own brand. 
GSBF's shareholders approved of the name change in January 2020, but Yi 
Jun continued to do business as GSBF until its corporate bank account 
was changed to reflect the new name in September 2021.\10\ Yi Jun 
asserts that the change in company name was cosmetic only, was made 
with the sole purpose of developing a distinct brand, and had no impact 
on the internal or external operation and

[[Page 64901]]

structure of the company.\11\ As support, Yi Jun provides the name 
change certificate issued by the Hong Kong Registrar of Companies \12\ 
and GSBF's business license before and after the change to Yi Jun which 
reflect a ``replacement'' business registration, which substantiates 
that there was no change in address or the material details of the 
registration.\13\ Yi Jun also provided updated articles of association 
that reflect the name change, but are otherwise unchanged from the 
prior articles.\14\ The lack of changes to the articles supports the 
claim that Yi Jun's operations with respect to the sales of subject 
merchandise have not materially changed as a result of its name change.
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    \9\ See CCR Request at Exhibit 1.
    \10\ See CCR Request at 4-5.
    \11\ Id.
    \12\ Id. at Exhibit 2.
    \13\ Id. at Exhibit 3 and 4.
    \14\ Id. at Exhibit 5.
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    In addition, the record includes a list of company officials before 
and after the name change, supporting Yi Jun's assertion that the 
managing staff remained the same.\15\ Further, Yi Jun notes that the 
subject merchandise sold to the U.S. by both GSBF and Yi Jun were all 
sourced from GSBF Tank, and that neither GSBF nor Yi Jun manufactures 
steel propane cylinders (i.e., the company has been and will continue 
to only serve as an exporter).\16\ Moreover, Yi Jun provided lists of 
both its suppliers and U.S. customers, before and after the name change 
to support its assertion that there have been no material changes to 
GSBF's suppliers \17\ or its customer base following the name change. 
Yi Jun notes it has only added one U.S. customer through the normal 
course of business.\18\
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    \15\ Id. at Exhibit 6.
    \16\ Id. at 3.
    \17\ Yi Jun clarified that sales of subject merchandise between 
GSBF Tank and GSBF which were subsequently exported to the United 
States by GSBF during the underlying investigation were made through 
an unaffiliated Chinese trading company, and that though this 
trading company was listed as a supplier of GSBF, this was merely a 
paper transaction. However, GSBF Tank has since discontinued this 
relationship, and GSBF Tank now sells directly to GSBF/Yi Jun and no 
longer utilizes the unaffiliated trading company. Id. at 6-7.
    \18\ Id. at Exhibit 7 and 8.
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    Therefore, based on the aforementioned evidence on the record, we 
preliminarily determine that Yi Jun is the successor-in-interest to 
GSBF, as the change in the business' name was not accompanied by 
significant changes to its management and operations, supplier 
relationships, or customer base.\19\ Thus, we preliminarily determine 
that Yi Jun operates as essentially the same business entity as GSBF, 
that Yi Jun is the successor-in-interest to GSBF, and that Yi Jun 
should receive the same AD cash deposit rate with respect to subject 
merchandise as its predecessor, GSBF.
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    \19\ Yi Jun did not provide evidence concerning changes to 
production facilities, as neither the prior company GSBF, nor Yi Jun 
produces steel propane cylinders. As noted above, the company acts 
only as an exporter of the subject merchandise.
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    Should our final results remain unchanged from these preliminary 
results, we will instruct U.S. Customs and Border Protection to assign 
entries of subject merchandise exported by Yi Jun the AD cash deposit 
rate applicable to GSBF. Commerce will issue its final results of the 
reviews in accordance with the time limits set forth in 19 CFR 
351.216(e).

Public Comment

    Pursuant to 19 CFR 351.310(c), any interested party may request a 
hearing within 14 days of publication of this notice.\20\ In accordance 
with 19 CFR 351.309(c)(1)(ii), interested parties may submit case 
briefs not later than 14 days after the date of publication of this 
notice.\21\ Rebuttal briefs, limited to issues raised in the case 
briefs, may be filed no later than seven days after the case briefs, in 
accordance with 19 CFR 351.309(d). Parties who submit case or rebuttal 
briefs 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.\22\ All comments are to be filed electronically using 
ACCESS, available to registered users at https://access.trade.gov, and 
must also be served on interested parties. An electronically filed 
document must be received successfully in its entirety by ACCESS by 
5:00 p.m. Eastern Time on the day it is due.\23\ Note that Commerce has 
temporarily modified certain requirements for serving documents 
containing business proprietary information, until further notice.\24\
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    \20\ Commerce is exercising its discretion under 19 CFR 
351.310(c) to alter the time limit for requesting a hearing.
    \21\ Commerce is exercising its discretion under 19 CFR 
351.309(c)(1)(ii) to alter the time limit for the filing of case 
briefs.
    \22\ See 19 CFR 351.309(c)(2).
    \23\ See 19 CFR 351.303(b).
    \24\ See 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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    Consistent with 19 CFR 351.216(e), we will issue the final results 
of this changed circumstances review no later than 270 days after the 
date on which this review was initiated, or within 45 days if all 
parties agree to our preliminary finding.

Notification to Interested Parties

    This notice is published in accordance with sections 751(b)(1) and 
777(i) of the Act and 19 CFR 351.216(b), 351.221(b) and 351.221(c)(3).

    Dated: November 15, 2021.
Ryan Majerus,
Deputy Assistant Secretaryfor Policy and Negotiations,Performing the 
Non-Exclusive Functions and Duties of theAssistant Secretary for 
Enforcement and Compliance.
[FR Doc. 2021-25280 Filed 11-18-21; 8:45 am]
BILLING CODE 3510-DS-P