[Federal Register Volume 88, Number 100 (Wednesday, May 24, 2023)]
[Notices]
[Pages 33580-33583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11004]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-913]


Certain Non-Refillable Steel Cylinders From India: Initiation of 
Countervailing Duty Investigation

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

DATES: Applicable May 17, 2023.

FOR FURTHER INFORMATION CONTACT: Shane Subler or Zachariah Hall, AD/CVD 
Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-6241 and (202) 
482-6261, respectively.

SUPPLEMENTARY INFORMATION: 

The Petition

    On April 27, 2023, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition concerning imports of 
certain non-refillable steel cylinders (cylinders) from India filed in 
proper form on behalf of Worthington Industries (the petitioner), a 
U.S. producer of cylinders.\1\ The CVD petition was accompanied by an 
antidumping duty (AD) petition concerning imports of cylinders from 
India.\2\
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    \1\ See Petitioner's Letter, ``Certain Non-Refillable Cylinders 
from India--Petition for the Imposition of Antidumping and 
Countervailing Duties,'' dated April 27, 2023 (Petition).
    \2\ Id.
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    On May 1 and 2, 2023, Commerce requested supplemental information 
pertaining to certain aspects of the Petition.\3\ On May 5 and 8, 2023, 
the petitioner filed timely responses to these requests for additional 
information.\4\
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    \3\ See Commerce's Letters, ``Petitions for the Imposition of 
Antidumping and Countervailing Duties on Imports of Certain Non-
Refillable Steel Cylinders from India: Supplemental Questions,'' 
dated May 1, 2023; and ``Petition for the Imposition of 
Countervailing Duties on Imports of Certain Non-Refillable Steel 
Cylinders from India: Supplemental Questions,'' dated May 2, 2023.
    \4\ See Petitioner's Letters, ``Certain Non-Refillable Steel 
Cylinders from India--Petitioner's Amendment to Volume I Relating to 
General and Injury Information,'' dated May 3, 2023 (General Issues 
Supplement); and ``Certain Non-Refillable Steel Cylinders from 
India--Petitioner's Amendment to Volume III Relating to 
Countervailing Duties,'' dated May 8, 2023.
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    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that the Government of India 
(GOI) is providing countervailable subsidies, within the meaning of 
sections 701 and 771(5) of the Act, to producers of cylinders in India, 
and that such imports are materially injuring, or threatening material 
injury to, the domestic industry producing cylinders in the United 
States. Consistent with section 702(b)(1) of the Act and 19 CFR 
351.202(b), for those alleged programs on which we are initiating a CVD 
investigation, the Petition is supported by information reasonably 
available to the petitioner.
    Commerce finds that the petitioner filed the Petition on behalf of 
the domestic industry because the petitioner is an interested party as 
defined in section 771(9)(C) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support with respect to the 
initiation of the requested CVD investigation.\5\
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    \5\ See ``Determination of Industry Support for the Petition'' 
section, infra.
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Period of Investigation

    Because the Petition was filed on April 27, 2023, the period of 
investigation (POI) is January 1, 2022, through December 31, 2022.\6\
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    \6\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation

    The products covered by the investigation are cylinders from India. 
For a full description of the scope of this investigation, see the 
appendix to this notice.

Comments on the Scope of the Investigation

    As discussed in the Preamble to Commerce's regulations, we are 
setting aside a period for interested parties to raise issues regarding 
product coverage (i.e., scope).\7\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determination. If scope comments include factual information, all such 
factual information should be limited to public information.\8\ To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit such comments by 5:00 p.m. Eastern Time 
(ET) on June 6, 2023, which is 20 calendar days from the signature date 
of this notice. Any rebuttal comments, which may include factual 
information, must be filed by 5:00 p.m. ET on June 16, 2023, which is 
10 calendar days from the initial comment deadline.
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    \7\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997) (Preamble).
    \8\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
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    Commerce requests that any factual information that the parties 
consider relevant to the scope of the investigation be submitted during 
this time period. However, if a party subsequently finds that 
additional factual information pertaining to the scope of the 
investigation may be relevant, the party may contact Commerce and 
request permission to submit the additional information. All such 
submissions must also be filed simultaneously on the record of the 
concurrent AD and CVD investigations.

Filing Requirements

    All submissions to Commerce must be filed electronically via 
Enforcement and Compliance's Antidumping Duty and Countervailing Duty 
Centralized Electronic Service System (ACCESS), unless an exception 
applies.\9\ An

[[Page 33581]]

electronically filed document must be received successfully in its 
entirety by the time and date it is due.\10\
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    \9\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and 
Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014), for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on using ACCESS 
can be found at https://access.trade.gov/help.aspx and a handbook 
can be found at https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf.
    \10\ See 19 CFR 351.303(b)(1).
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Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified the GOI of the receipt of the Petition and provided it an 
opportunity for consultations with respect to the Petition.\11\ 
Commerce held consultations with the GOI on May 10, 2023.\12\
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    \11\ See Commerce's Letter, ``Countervailing Duty Petition on 
Non-Refillable Steel Cylinders from India: Invitation for 
Consultations to Discuss the Countervailing Duty Petition,'' dated 
April 28, 2023.
    \12\ See Memorandum, ``Consultations with Officials from the 
Government of India,'' dated May 11, 2023.
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Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) at least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The U.S. International Trade Commission (ITC), 
which is responsible for determining whether ``the domestic industry'' 
has been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\13\ they do so for different purposes and pursuant to a 
separate and distinct authority. In addition, Commerce's determination 
is subject to limitations of time and information. Although this may 
result in different definitions of the like product, such differences 
do not render the decision of either agency contrary to law.\14\
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    \13\ See section 771(10) of the Act.
    \14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT 
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F. 
Supp. 639, 644 (CIT 1988), aff'd 865 F. 2d 240 (Fed. Cir. 1989)).
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    Section 771(10) of the Act defines the domestic like product as ``a 
product which is like, or in the absence of like, most similar in 
characteristics and uses with, the article subject to an investigation 
under this title.'' Thus, the reference point from which the domestic 
like product analysis begins is ``the article subject to an 
investigation'' (i.e., the class or kind of merchandise to be 
investigated, which normally will be the scope as defined in the 
petition).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigation.\15\ Based on our analysis of the information 
submitted on the record, we have determined that cylinders, as defined 
in the scope, constitute a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\16\
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    \15\ See Petition at Volume I (pages 13-17); see also General 
Issues Supplement at 2 and Exhibits GEN-SUPP-1 and GEN-SUPP-2.
    \16\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Countervailing Duty Investigation Initiation Checklist, ``Certain 
Non-Refillable Steel Cylinders from India,'' dated concurrently with 
this notice (CVD Initiation Checklist), at Attachment II (Analysis 
of Industry Support for the Antidumping and Countervailing Duty 
Petitions Covering Certain Non-Refillable Steel Cylinders from 
India).
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    In determining whether the petitioner has standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the appendix to 
this notice. To establish industry support, the petitioner provided its 
own production of the domestic like product in 2022.\17\ The petitioner 
stated that there are no other known producers of cylinders in the 
United States; therefore, the Petition is supported by 100 percent of 
the U.S. industry.\18\ We relied on data provided by the petitioner for 
purposes of measuring industry support.\19\
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    \17\ See Petition at Volume I (page 3 and Exhibit GEN-2).
    \18\ Id. at 2-3 and Exhibit GEN-1; see also General Issues 
Supplement at 2 and Exhibit GEN-1.
    \19\ See Petition at Volume I (pages 2-3 and Exhibits GEN-1 and 
GEN-2); see also General Issues Supplement at 2 and Exhibit GEN-
SUPP-1. For further discussion, see the CVD Initiation Checklist at 
Attachment II.
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    Our review of the data provided in the Petition, the General Issues 
Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petition. First, the Petition established support from domestic 
producers (or workers) accounting for more than 50 percent of the total 
production of the domestic like product, and, as such, Commerce is not 
required to take further action in order to evaluate industry support 
(e.g., polling).\20\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
702(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petition account for at least 25 percent of the total 
production of the domestic like product.\21\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 702(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petition account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petition.\22\ Accordingly, Commerce determines that the Petition 
was filed on behalf of the domestic industry within the meaning of 
section 702(b)(1) of the Act.\23\
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    \20\ See CVD Initiation Checklist at Attachment II; see also 
section 702(c)(4)(D) of the Act.
    \21\ See CVD Initiation Checklist at Attachment II.
    \22\ Id.
    \23\ Id.
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Injury Test

    Because India is a ``Subsidies Agreement Country'' within the 
meaning of section 701(b) of the Act, section 701(a)(2) of the Act 
applies to this investigation. Accordingly, the ITC must determine 
whether imports of the subject merchandise from India materially 
injure, or threaten material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that imports of the subject merchandise are 
benefiting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S.

[[Page 33582]]

industry producing the domestic like product. In addition, the 
petitioner alleges that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.\24\
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    \24\ See Petition at Volume I (pages 12, 17-19, and Exhibits 
GEN-1 and GEN-11).
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    The petitioner contends that the industry's injured condition is 
illustrated by the significant and increasing volume of subject 
imports; declining market share; underselling and price depression and/
or suppression; lost sales and revenues; and adverse impact on the 
domestic industry's capacity utilization, commercial shipments, 
employment variables, and financial performance.\25\ We assessed the 
allegations and supporting evidence regarding material injury, threat 
of material injury, causation, as well as negligibility, and we have 
determined that these allegations are properly supported by adequate 
evidence and meet the statutory requirements for initiation.\26\
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    \25\ Id. at 19-31 and Exhibits GEN-1 and GEN-8 through GEN-15; 
see also General Issues Supplement at 3 and Exhibits GEN-SUPP-3 and 
GEN-SUPP-4.
    \26\ See CVD Initiation Checklist at Attachment III, Analysis of 
Allegations and Evidence of Material Injury and Causation for the 
Antidumping and Countervailing Duty Petitions Covering Certain Non-
Refillable Steel Cylinders from India (Attachment III).
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Initiation of CVD Investigation

    Based upon the examination of the Petition and supplemental 
responses, we find that the Petition meets the requirements of section 
702 of the Act. Therefore, we are initiating a CVD investigation to 
determine whether imports of cylinders from India benefit from 
countervailable subsidies conferred by the GOI. Based on our review of 
the Petition, we find that there is sufficient information to initiate 
a CVD investigation on 51 of 52 alleged programs. For a full discussion 
of the basis for our decision to initiate on each program, see the 
India CVD Initiation Checklist. A public version of the initiation 
checklist for this investigation is available on ACCESS. In accordance 
with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless 
postponed, we will make our preliminary determination no later than 65 
days after the date of this initiation.

Respondent Selection

    In the Petition, the petitioner identified five companies in India 
as producers and/or exporters of cylinders.\27\ Commerce intends to 
follow its standard practice in CVD investigations and calculate 
company-specific subsidy rates in this investigation. In the event that 
Commerce determines that the number of companies is large, and it 
cannot individually examine each company based upon Commerce's 
resources, Commerce intends to select mandatory respondents based on 
quantity and value (Q&V) questionnaires issued to the potential 
respondents. Commerce normally selects mandatory respondents in CVD 
investigations using U.S. Customs and Border Protection (CBP) entry 
data for U.S. imports under the appropriate Harmonized Tariff Schedule 
of the United States (HTSUS) subheadings listed in the scope of the 
investigation. However, for this investigation, the main HTSUS 
subheadings under which the subject merchandise would enter 
(7311.00.0060 and 7311.00.0090,) are basket categories under which non-
subject merchandise may enter. Therefore, we cannot rely on CBP entry 
data in selecting respondents. We, instead, intend to issue Q&V 
questionnaires to each potential respondent for which the petitioner 
has provided a complete address.
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    \27\ See Petition at Volume I (Exhibit GEN-8).
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    Exporters/producers of cylinders from India that do not receive Q&V 
questionnaires by mail may still submit a response to the Q&V 
questionnaire and can obtain the Q&V questionnaire from Enforcement and 
Compliance's website at https://access.trade.gov/resources/questionnaires/questionnaires-ad.html. Responses to the Q&V 
questionnaire must be submitted by the relevant Indian producers/
exporters no later than 5:00 p.m. ET on May 31, 2023, which is two 
weeks from the signature date of this notice. All Q&V responses must be 
filed electronically via ACCESS. An electronically filed document must 
be received successfully, in its entirety, by ACCESS no later than 5:00 
p.m. ET on the deadline noted above. Commerce intends to finalize its 
decision regarding respondent selection within 20 days of publication 
of this notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A) of the Act and 19 CFR 
351.202(f), a copy of the public version of the Petition has been 
provided to the GOI via ACCESS. Furthermore, to the extent practicable, 
Commerce will attempt to provide a copy of the public version of the 
Petition to each exporter named in the Petition, as provided under 19 
CFR 351.203(c)(2).

ITC Notification

    Commerce will notify the ITC of its initiation, as required by 
section 702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petition was filed, whether there is a reasonable 
indication that imports of cylinders from India are materially 
injuring, or threatening material injury to, a U.S. industry.\28\ A 
negative ITC determination will result in the investigation being 
terminated.\29\ Otherwise, the investigation will proceed according to 
statutory and regulatory time limits.
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    \28\ See section 703(a)(1) of the Act.
    \29\ Id.
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Submission of Factual Information

    Factual information is defined in 19 CFR 351.102(b)(21) as: (i) 
evidence submitted in response to questionnaires; (ii) evidence 
submitted in support of allegations; (iii) publicly available 
information to value factors under 19 CFR 351.408(c) or to measure the 
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence 
placed on the record by Commerce; and (v) evidence other than factual 
information described in (i)-(iv). Section 351.301(b) of Commerce's 
regulations requires any party, when submitting factual information, to 
specify under which subsection of 19 CFR 351.102(b)(21) the information 
is being submitted \30\ and, if the information is submitted to rebut, 
clarify, or correct factual information already on the record, to 
provide an explanation identifying the information already on the 
record that the factual information seeks to rebut, clarify, or 
correct.\31\ Time limits for the submission of factual information are 
addressed in 19 CFR 351.301, which provides specific time limits based 
on the type of factual information being submitted. Interested parties 
should review the regulations prior to submitting factual information 
in this investigation.
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    \30\ See 19 CFR 351.301(b).
    \31\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits

    Parties may request an extension of time limits before the 
expiration of a time limit established under 19 CFR 351.301, or as 
otherwise specified by Commerce. In general, an extension request will 
be considered untimely if it is filed after the expiration of the time 
limit established under 19 CFR 351.301. For submissions that are due 
from multiple parties simultaneously, an extension request will be 
considered untimely if it is filed after 10:00 a.m. ET on the due date. 
Under certain circumstances, we may elect to specify a different time 
limit by which

[[Page 33583]]

extension requests will be considered untimely for submissions which 
are due from multiple parties simultaneously. In such a case, Commerce 
will inform parties in a letter or memorandum of the deadline 
(including a specified time) by which extension requests must be filed 
to be considered timely. An extension request must be made in a 
separate, standalone submission; under limited circumstances we will 
grant untimely filed requests for the extension of time limits, where 
we determine, based on 19 CFR 351.302, that extraordinary circumstances 
exist. Parties should review Commerce's regulations concerning the 
extension of time limits and the Time Limits Final Rule prior to 
submitting factual information in this investigation.\32\
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    \32\ See 19 CFR 351.302; see also Extension of Time Limits; 
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final 
Rule), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm.
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Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\33\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\34\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
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    \33\ See section 782(b) of the Act.
    \34\ See Certification of Factual Information to Import 
Administration During Antidumping and Countervailing Duty 
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also 
frequently asked questions regarding the Final Rule, available at 
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
administrative protective order in accordance with 19 CFR 351.305. 
Parties wishing to participate in this investigation should ensure that 
they meet the requirements of 19 CFR 351.103(d) (e.g., by filing the 
required letters of appearance). Note that Commerce has temporarily 
modified certain of its requirements for serving documents containing 
business proprietary information, until further notice.\35\
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    \35\ 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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    This notice is issued and published pursuant to sections 702 and 
777(i) of the Act, and 19 CFR 351.203(c).

    Dated: May 17, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.

Appendix

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 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 100-cubic inch (1.6 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 are 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 7310.29.0030 and 7310.29.0065. Although the HTSUS 
statistical reporting numbers are provided for convenience and 
customs purposes, the written description of the merchandise is 
dispositive.

[FR Doc. 2023-11004 Filed 5-23-23; 8:45 am]
BILLING CODE 3510-DS-P