[Federal Register Volume 88, Number 105 (Thursday, June 1, 2023)]
[Notices]
[Pages 35839-35840]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-11681]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-126, C-570-127]


Non-Refillable Steel Cylinders From the People's Republic of 
China: Initiation of Circumvention Inquiry of the Antidumping and 
Countervailing Duty Orders; Water Capacity Between 100 and 299 Cubic 
Inches

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

SUMMARY: In response to a request from Worthington Industries 
(Worthington), the U.S. Department of Commerce (Commerce) is initiating 
a country-wide circumvention inquiry to determine whether imports of 
non-refillable steel cylinders (non-refillable cylinders), which have a 
water capacity between 100 and 299 cubic inches, are circumventing the 
antidumping duty (AD) and countervailing duty (CVD) orders on non-
refillable cylinders from the People's Republic of China (China).

DATES: Applicable June 1, 2023.

FOR FURTHER INFORMATION CONTACT: Alex Cipolla, 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) 482-4956.

SUPPLEMENTARY INFORMATION: 

Background

    On April 12, 2023, Worthington filed a circumvention inquiry 
request alleging that non-refillable cylinders with a water capacity 
between 100 and 299 cubic inches are circumventing the Orders \1\ and, 
accordingly, should be included within the scope of the orders.\2\ 
Worthington alleges that these non-refillable cylinders constitute 
merchandise altered in form or appearance in such minor respects that 
they should be included in within the scope of the Orders, pursuant to 
section 781(c) of the Tariff Act of 1930, as amended (the Act), and 19 
CFR 351.226(j). In addition, Worthington alleges that these non-
refillable cylinders are later-developed merchandise and should be 
included within the scope of the Orders, pursuant to section 781(d) of 
the Act and 19 CFR 351.226(k).
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    \1\ See Certain Non-Refillable Steel Cylinders from the People's 
Republic of China: Amended Final Antidumping Duty Determination and 
Antidumping and Countervailing Duty Orders, 86 FR 25839 (May 11, 
2021) (Orders).
    \2\ See Worthington's Letter, ``Request for Circumvention Ruling 
Pursuant to Sections 781(c) and 781(d) of the Tariff Act of 1930,'' 
dated April 12, 2023 (Worthington's Request).
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Scope of the Orders

    The merchandise covered by these orders 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 these orders.
    Specifically excluded are seamless non-refillable steel cylinders.
    The merchandise subject to these orders 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.

Merchandise Subject to the Circumvention Inquiry

    The circumvention inquiry covers non-refillable cylinders with a 
water capacity between 100 and 299 cubic inches that are produced in 
China and exported to the United States.

Statutory and Regulatory Framework

    Section 351.226(d)(1)(ii) of Commerce's regulations states that if 
Commerce determines that a request for a circumvention inquiry 
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will 
accept the request and initiate a circumvention inquiry.'' Section 
351.226(c)(1) of Commerce's regulations, in turn, requires that each 
request for a circumvention inquiry allege ``that the elements 
necessary for a circumvention determination under section 781 of the 
Act exist'' and be ``accompanied by information reasonably available to 
the interested

[[Page 35840]]

party supporting these allegations.'' Worthington alleged circumvention 
pursuant to section 781(c) of the Act (merchandise altered in form or 
appearance in minor respects) and section 781(d) of the Act 
(merchandise developed after an investigation is initiated).
    Section 781(c)(1) of the Act provides that the class or kind of 
merchandise subject to an AD or CVD order shall include articles that 
have been ``altered in form or appearance in minor respects . . . 
whether or not included in the same tariff classification.'' Section 
781(c)(2) of the Act provides an exception that section 781(c)(1) of 
the Act ``shall not apply with respect to altered merchandise if the 
administering authority determines that it would be unnecessary to 
consider the altered merchandise within the scope of the 
{order{time} .'' Concerning the allegation of minor alteration under 
section 781(c) of the Act and 19 CFR 351.226(j), Commerce may consider 
criteria including, but not limited to: (1) Overall physical 
characteristics of the merchandise; (2) expectations of ultimate users; 
(3) use of the merchandise; (4) channels of marketing; and (5) cost of 
any modification relative to the value of the imported products.
    Section 781(d) of the Act provides that Commerce may find 
circumvention of an AD or CVD order when merchandise is developed after 
an investigation is initiated. In conducting a later-developed 
merchandise inquiry under section 781(d)(1) of the Act and 19 CFR 
351.226(k), Commerce will consider whether: (1) The later-developed 
merchandise has the same general physical characteristics as the 
merchandise with respect to which the order was originally issued; (2) 
the expectations of the ultimate purchasers of the later-developed 
merchandise are the same as for the earlier product; (3) the ultimate 
use of the earlier product and the later-developed merchandise are the 
same; (4) the later-developed merchandise is sold through the same 
channels of trade as the earlier product; and (5) the later-developed 
merchandise is advertised and displayed in a manner similar to the 
earlier product.\3\ First, however, Commerce determines whether the 
merchandise subject to the inquiry was commercially available at the 
time of the initiation of the underlying LTFV or CVD investigation 
(i.e., the product was present in the commercial market or the product 
was tested and ready for commercial production).\4\
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    \3\ See section 781(d)(1) of the Act.
    \4\ See 19 CFR 351.226(k).
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    For companion AD and CVD proceedings, ``the Secretary will initiate 
and conduct a single inquiry with respect to the product at issue for 
both orders only on the record of the antidumping proceeding.'' \5\ 
Further, ``{o{time} nce the Secretary issues a final circumvention 
determination on the record of the antidumping duty proceeding, the 
Secretary will include a copy of that determination on the record of 
the countervailing duty proceeding.'' \6\ Accordingly, once Commerce 
concludes this circumvention inquiry, Commerce intends to place its 
final circumvention determination on the record of the companion CVD 
proceeding.
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    \5\ See 19 CFR 351.226(m)(2).
    \6\ Id.
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Analysis

    After analyzing the record evidence and Worthington's allegation, 
we determine that there is sufficient information to warrant initiation 
of a circumvention inquiry based on both allegations: (1) Minor 
alterations, pursuant to section 781(c) of the Act and 19 CFR 
351.226(j); and (2) later-developed merchandise, pursuant to section 
781(d) of the Act and 19 CFR 351.226(k). For a full discussion of the 
basis for our decision to initiate a circumvention inquiry regarding 
both the later-developed merchandise and minor alterations allegations, 
see the Initiation Checklist.\7\
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    \7\ See Circumvention Initiation Checklist, ``Non-Refillable 
Steel Cylinders from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Initiation 
Checklist).
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    The information provided by Worthington also warrants initiating 
this circumvention inquiry on a country-wide basis. Commerce has taken 
this approach in prior circumvention inquiries, when the facts 
warranted initiation on a country-wide basis.\8\
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    \8\ See, e.g., Aluminum Extrusions from the People's Republic of 
China: Affirmative Final Determination of Circumvention of the 
Antidumping and Countervailing Duty Orders and Rescission of Minor 
Alterations Anti-Circumvention Inquiry, 82 FR 4630 (July 26, 2017), 
and accompanying Issues and Decision Memorandum at Comment 4.
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    Commerce intends to establish a schedule for questionnaires and 
comments on the issues related to this inquiry. A company's failure to 
respond completely to Commerce's requests for information may result in 
the application of partial or total facts available, pursuant to 
section 776(a) of the Act, which may include adverse inferences, 
pursuant to section 776(b) of the Act.

Suspension of Liquidation

    Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs 
and Border Protection (CBP) of its initiation of the requested 
circumvention inquiry and direct CBP to continue the suspension of 
liquidation of entries of products subject to the circumvention inquiry 
that were already subject to the suspension of liquidation under the 
Orders and to apply the cash deposit rates that would be applicable if 
the products were determined to be covered by the scope of the Orders. 
Should Commerce issue a preliminary or final circumvention 
determination, Commerce will follow the suspension of liquidation rules 
under 19 CFR 351.226(l)(2)-(4).

Notification to Interested Parties

    In accordance with 19 CFR 351.226(d) and section 781(c) and (d) of 
the Act, Commerce determines that Worthington's request for a 
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c). 
Accordingly, Commerce is notifying all interested parties of the 
initiation of this circumvention inquiry to determine whether U.S. 
imports of non-refillable cylinders with a water capacity between 100 
and 299 cubic inches produced in, and exported from, China are 
circumventing the Orders. We included a description of the products 
that are subject to the circumvention inquiry, and an explanation of 
the reasons for Commerce's decision to initiate this inquiry, in the 
accompanying Initiation Checklist.\9\ In accordance with 19 CFR 
351.226(e)(1), Commerce intends to issue its preliminary determination 
in this circumvention proceeding no later than 150 days from the date 
of publication of this notice in the Federal Register.
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    \9\ See Initiation Checklist.
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    This notice is published in accordance with sections 781(c) and (d) 
of the Act and 19 CFR 351.226(d)(1)(ii).

    Dated: May 25, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-11681 Filed 5-31-23; 8:45 am]
BILLING CODE 3510-DS-P