[Federal Register Volume 85, Number 168 (Friday, August 28, 2020)]
[Notices]
[Pages 53323-53325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-18991]
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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: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final Antidumping Duty
Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily 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 of China (China) during the
period of investigation January 1, 2019 through December 31, 2019.
Interested parties are invited to comment on this preliminary
determination.
DATES: Applicable August 28, 2020.
FOR FURTHER INFORMATION CONTACT: Kristen Johnson or John Conniff, 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) 482-4793 or (202)
482-1009, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on April 22,
2020.\1\ On June 2, 2020, Commerce postponed the preliminary
determination of this investigation and reset the deadline to August
24, 2020.\2\
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\1\ See Certain Non-Refillable Steel Cylinders from the People's
Republic of China: Initiation of Countervailing Duty Investigation,
85 FR 22407 (April 22, 2020) (Initiation Notice).
\2\ See Certain Non-Refillable Steel Cylinders from the People's
Republic of China: Postponement of Preliminary Determination in the
Countervailing Duty Investigation, 85 FR 33631 (June 2, 2020).
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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary
[[Page 53324]]
Decision Memorandum.\3\ A list of topics discussed in the Preliminary
Decision Memorandum is included as Appendix II to this notice. The
Preliminary 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 Preliminary Decision Memorandum can
be accessed directly at http://enforcement.trade.gov/frn/. The signed
and electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\3\ See Memorandum, ``Decision Memorandum for the Preliminary
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
(Preliminary Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are non-refillable
cylinders from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the Preamble to Commerce's regulations,\4\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (i.e., scope).\5\ The petitioner \6\
commented on the scope of the investigation as it appeared in the
Initiation Notice.\7\ Commerce intends to issue its preliminary
decision regarding comments concerning the scope of the antidumping
duty (AD) and countervailing duty (CVD) investigations in the
preliminary determination of the companion AD investigation, the
deadline for which is October 23, 2020.\8\
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997) (Preamble).
\5\ See Initiation Notice.
\6\ The petitioner is Worthington Industries.
\7\ See Petitioner's Letters, ``Certain Non-Refillable Steel
Cylinders from the People's Republic of China--Petitioner's Scope
Comments,'' dated May 8, 2020; and ``Certain Non-Refillable Steel
Cylinders from the People's Republic of China--Petitioner's Updated
Scope Comments,'' dated August 4, 2020.
\8\ See Certain Non-Refillable Steel Cylinders from the People's
Republic of China: Postponement of the Preliminary Determination in
the Less Than Fair Value Investigation, signed August 14, 2020 (AD
Postponement Notice).
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Methodology
Commerce is conducting this investigation in accordance with
section 701 of the Act. For each of the subsidy programs found
countervailable, Commerce preliminarily 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.\9\ For full description of the methodology underlying our
preliminary conclusions, see the Preliminary Decision Memorandum.
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\9\ 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 the preliminary findings, Commerce relied, in part, on
facts available. For further information, see ``Use of Facts Otherwise
Available and Adverse Inferences'' in the Preliminary Decision
Memorandum.
Alignment
As noted in the Preliminary Decision Memorandum, in accordance with
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), and based on the
petitioner's request,\10\ Commerce is aligning the final CVD
determination in this investigation with the final determination in the
companion AD investigation of non-refillable cylinders from China.
Consequently, the final CVD determination will be issued on the same
date as the final AD determination, which is currently scheduled no
later than January 6, 2021, unless postponed.\11\
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\10\ See Petitioner's Letter, ``Certain Non-Refillable Steel
Cylinders from the People's Republic of China--Petitioner's Request
to Align Final Determinations,'' dated August 13, 2020.
\11\ See AD Postponement Notice.
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All-Others Rate
Sections 703(d) and 705(c)(5)(A) of the Act provide that in the
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be
an amount equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated individual estimated
countervailable subsidy rates for Ningbo Eagle Machinery & Technology
Co., Ltd. and Wuyi Xilinde Machinery Manufacture Co., Ltd. that are not
zero, de minimis, or based entirely on the facts otherwise available.
Commerce calculated the all-others rate using a weighted average of the
individual estimated subsidy rates calculated for the examined
respondents using each company's publicly ranged values for the value
of their exports of subject merchandise to the United States.\12\
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\12\ With two respondents under examination, Commerce normally
calculates (A) a weighted-average of the estimated subsidy rates
calculated for the examined respondents using each company's
proprietary U.S. sale quantities for the merchandise under
consideration; (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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Rate for Non-Responsive Companies
Seven potential producers and/or exporters of non-refillable
cylinders from China did not respond to Commerce's Quantity and Value
(Q&V) Questionnaire.\13\ We find that, by not responding to the Q&V
Questionnaire, these companies withheld requested information and
significantly impeded this proceeding. Thus, in reaching our
preliminary determination, pursuant to sections 776(a)(2)(A) and (C) of
the Act, we are basing the CVD rate for these seven companies on facts
otherwise available.
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\13\ The seven companies are Jiangsu Kasidi Chemical Machinery
Co., Ltd.; Jinhua Sinoblue Machinery Manufacturing Co., Ltd.; Ningbo
Runkey CGA Cylinders Co., Ltd.; Ninhua Group Co., Ltd.; Shanghai
Ronghua High-Pressure Vessel Co., Ltd.; Zhejiang Ansheng Mechanical
Manufacture Co., Ltd.; and Zhejiang Nof Chemical Co., Ltd.
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We further preliminarily determine that an adverse inference is
warranted, pursuant to section 776(b) of the Act. By failing to submit
responses to Commerce's Q&V Questionnaire, the seven companies did not
cooperate to the best of their ability in this investigation.
Accordingly, we preliminarily find that an adverse inference is
warranted to ensure that the seven companies will not obtain a more
favorable result than had they fully complied with our request for
information. For more information on the application of adverse facts
available to the non-responsive companies, see ``Use of Facts Otherwise
Available and Adverse Inferences'' in the Preliminary Determination
Memorandum.
Preliminary Determination
Commerce preliminarily determines that the following estimated
countervailable subsidy rates exist:
[[Page 53325]]
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Subsidy rate
Company Ad Valorem
(percent)
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Ningbo Eagle Machinery & Technology Co., Ltd............ 25.91
Wuyi Xilinde Machinery Manufacture Co., Ltd............. 22.97
All Others.............................................. 24.11
Jiangsu Kasidi Chemical Machinery Co., Ltd.............. 190.67
Jinhua Sinoblue Machinery Manufacturing Co., Ltd........ 190.67
Ningbo Runkey CGA Cylinders Co., Ltd.................... 190.67
Ninhua Group Co., Ltd................................... 190.67
Shanghai Ronghua High-Pressure Vessel Co., Ltd.......... 190.67
Zhejiang Ansheng Mechanical Manufacture Co., Ltd........ 190.67
Zhejiang Nof Chemical Co., Ltd.......................... 190.67
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Suspension of Liquidation
In accordance with section 703(d)(1)(B) and (d)(2) of the Act,
Commerce will direct 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 on or after the date of publication of this
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d),
Commerce will instruct CBP to require a cash deposit equal to the rates
indicated above.
Disclosure
Commerce intends to disclose its calculations and analysis
performed to interested parties in this preliminary determination
within five days of its public announcement, or if there is no public
announcement, within five days of the date of this notice in accordance
with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify the information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last verification report is issued in
this investigation. Rebuttal briefs, limited to issues raised in case
briefs, may be submitted no later than seven days after the deadline
date for case briefs.\14\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2),
parties who submit case briefs or rebuttal briefs in this investigation
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.
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\14\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements); Temporary Rule Modifying AD/CVD Service
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020)
(Temporary Rule); and 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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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at a time and date to be
determined. Parties should confirm by telephone the date, time, and
location of the hearing two days before the scheduled date.
Parties are reminded that briefs and hearing requests are to be
filed electronically using ACCESS and that electronically filed
documents must be received successfully in their entirety by 5 p.m.
Eastern Time on the due date. Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\15\
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\15\ See Temporary Rule.
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International Trade Commission Notification
In accordance with section 703(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its determination. If
Commerce's final determination is affirmative, the ITC will make its
final determination before the later of 120 days after the date of this
preliminary determination or 45 days after the final determination.
Notification to Interested Parties
This determination is issued and published pursuant to sections
703(f) and 777(i) of the Act and 19 CFR 351.205(c).
Dated: August 24, 2020.
Jeffrey I. Kessler,
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.
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 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 Preliminary Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Diversification of China's Economy
VI. Subsidies Valuation
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Benchmarks and Interest Rates
IX. Analysis of Programs
X. Calculation of the All-Others Rate
XI. Recommendation
[FR Doc. 2020-18991 Filed 8-27-20; 8:45 am]
BILLING CODE 3510-DS-P