[Federal Register Volume 85, Number 211 (Friday, October 30, 2020)]
[Notices]
[Pages 68852-68855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-24064]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-126]
Certain Non-Refillable Steel Cylinders From the People's Republic
of China: Preliminary Affirmative Determination of Sales at Less Than
Fair Value, Postponement of Final Determination and Extension of
Provisional Measures
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that non-refillable steel cylinders (non-refillable cylinders) from
People's Republic of China (China) are, or are likely to be, sold in
the United States at less than fair value (LTFV). The period of
investigation is July 1, 2019 through December 31, 2019. Interested
parties are invited to comment on this preliminary determination.
DATES: Applicable October 30, 2020.
FOR FURTHER INFORMATION CONTACT: Katherine Sliney or Joy Zhang, 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 or (202) 482-1168,
respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended
[[Page 68853]]
(the Act). Commerce published the notice of initiation of this
investigation on April 22, 2020.\1\ On August 26, 2020, Commerce
postponed the preliminary determination of this investigation, and the
revised deadline is now October 23, 2020.\2\ For a complete description
of the events that followed the initiation of this investigation, see
the Preliminary Decision Memorandum.\3\ A list of topics included 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 the electronic versions of the Preliminary Decision Memorandum are
identical in content.
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\1\ See Certain Non-Refillable Steel Cylinders from the People's
Republic of China: Initiation of Less-Than-Fair-Value Investigation,
85 FR 22402 (April 22, 2020) (Initiation Notice).
\2\ See Non-Refillable Steel Cylinders from the People's
Republic of China: Postponement of Preliminary Determination in the
Less-Than-Fair-Value Investigation, 85 FR 52548 (August 26, 2020).
\3\ See Memorandum, ``Certain Non-Refillable Steel Cylinders
from the People's Republic of China: Decision Memorandum for the
Preliminary Affirmative Determination of Sales at the Less-Than-
Fair-Value,'' 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 certain 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 (scope).\5\ Certain interested
parties commented on the scope of the investigation as it appeared in
the Initiation Notice. For a summary of all scope related comments
submitted to the record for this investigation and accompanying
discussion and analysis of all comments timely received, see the
Preliminary Scope Decision Memorandum.\6\ Commerce is preliminarily
modifying the scope language as it appeared in the Initiation Notice.
See the revised scope in Appendix I to this notice.
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\4\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\5\ See Initiation Notice.
\6\ See Memorandum, ``Antidumping Duty and Countervailing Duty
Investigations on Certain Non-Refillable Steel Cylinders from the
People's Republic of China: Preliminary Scope Decision Memorandum''
(Preliminary Scope Decision Memorandum), dated concurrently with
this preliminary determination.
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The Preliminary Scope Decision Memorandum establishes the deadline
to submit scope case briefs.\7\ There will be no further opportunity
for comments on scope-related issues.
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\7\ Case briefs, other written comments, and rebuttal briefs
submitted by in response to this preliminary LTFV determination
should not include scope-related issues. See Preliminary Scope
Decision Memorandum and ``Public Comment'' section of this notice.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce has calculated export prices in
accordance with section 772(a) of the Act. Because China is a non-
market economy, within the meaning of section 771(18) of the Act,
Commerce has calculated normal value (NV) in accordance with section
773(c) of the Act.
In addition, Commerce has relied on facts available under section
776(a) of the Act to determine the cash deposit rate assigned to the
China-wide entity. Furthermore, pursuant to sections 776(a) and (b) of
the Act, because the China-wide entity did not cooperate to the best of
its ability in responding to Commerce's requests for data, Commerce
preliminarily has relied upon facts otherwise available, with adverse
inferences, for the China-wide entity. For a full description of the
methodology underlying Commerce's preliminary determination, see the
Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\8\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\9\ In this investigation, we calculated
producer/exporter combination rates for respondents eligible for
separate rates.
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\8\ See Initiation Notice, 85 FR at 22406.
\9\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Cash deposit rate
Estimated weighted- (adjusted for
Exporter Producer average dumping subsidy offsets)
margin (percent) (percent)
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Sanjiang Kai Yuan Co. Ltd............ Sanjiang Kai Yuan Co. Ltd.... 95.14 77.12
Wuyi Xilinde Machinery Manufacture Wuyi Xilinde Machinery 57.83 46.28
Co., Ltd. Manufacture Co., Ltd.
Hangzhou JM Chemical Co., Ltd........ Hangzhou JM Chemical Co., Ltd 69.09 55.86
Ningbo Eagle Machinery & Technology Jinhua Sinoblue Machinery 69.09 58.55
Co., Ltd. Manufacturing Co., Ltd.
Zhejiang Kin-Shine Technology Co., Zhejiang Kin-Shine Technology 69.09 55.86
Ltd. Co., Ltd.
T.T. International Co. Ltd........... Wuyi Xilinde Machinery 69.09 55.86
Manufacture Co., Ltd.
ICOOL International Commerce Limited. ICOOL International Commerce 69.09 55.86
Limited.
China-Wide Entity.................... ............................. 114.58 104.04
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
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,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted average amount by which normal value
exceeds U.S. price, as indicated in the chart
[[Page 68854]]
above as follows: (1) For the producer/exporter combinations listed in
the table above, the cash deposit rate is equal to the estimated
weighted-average dumping margin listed for that combination in the
table; (2) for all combinations of Chinese producers/exporters of
subject merchandise that have not established eligibility for their own
separate rates, the cash deposit rate will be equal to the estimated
weighted-average dumping margin established for the China-wide entity;
and (3) for all third-county exporters of subject merchandise not
listed in the table above, the cash deposit rate is the cash deposit
rate applicable to the Chinese producer/exporter combination (or China-
wide entity) that supplied that third-country exporter.
To determine the cash deposit rate, Commerce normally adjusts the
estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies, Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted
rates may be found in the chart of estimated weighted-average dumping
margins, above.\10\
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\10\ For further discussion of the methodology and calculation
of these adjustments, see Preliminary Decision Memorandum; see also
Memorandum, ``Calculation of Export Subsidy Adjustments for the
Preliminary Determination,'' dated concurrently with this notice.
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Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b).
Verification
Commerce is currently unable to conduct on-site verification of the
information relied upon in making its final determination in this
investigation. Accordingly, we intend to take additional steps in lieu
of on-site verification. Commerce will notify interested parties of any
additional documentation or information required.
Public Comment
Case briefs or other written comments on non-scope issues may be
submitted to the Assistant Secretary for Enforcement and Compliance. A
timeline for the submission of case briefs and written comments will be
provided to interested parties at a later date. Rebuttal briefs,
limited to issues raised in case briefs, may be submitted no later than
seven days after the deadline date for case briefs.\11\ 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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\11\ 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 of the
hearing two days before the scheduled date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires
that requests by respondents for postponement of a final antidumping
determination be accompanied by a request for extension of provisional
measures from a four-month period to a period not more than six months
in duration.
On October 15, 2020 and October 16, 2020, pursuant to 19 CFR
351.210(e), Wuyi Xilinde Machinery Manufacture Co., Ltd. (Wuyi Xilinde)
and Sanjiang Kai Yuan Co. Ltd. (SKY) requested that Commerce postpone
the final determination and that provisional measures be extended to a
period not to exceed six months, respectively.\12\ In accordance with
section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii), because:
(1) The preliminary determination is affirmative; (2) the requesting
exporters account for a significant proportion of exports of the
subject merchandise; and (3) no compelling reasons for denial exist,
Commerce is postponing the final determination and extending the
provisional measures from a four-month period to a period not greater
than six months. Accordingly, Commerce's final determination will
publish no later than 135 days after the date of publication of this
preliminary determination.
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\12\ See Wuyi Xilinde's Letter, ``Certain Non-Refillable Steel
Cylinders from the People's Republic of China: Request to Postpone
the Final Determination of the Investigation,'' dated October 15,
2020; see also SKY's Letter, ``Certain Non-Refillable Steel
Cylinders from China; A-570-126; Request to Postpone the Final
Determination,'' dated October 16, 2020.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination of sales at LTFV. If the final determination is
affirmative, the ITC will determine before the later of 120 days after
the date of this preliminary determination or 45 days after the final
determination whether imports of the subject merchandise are materially
injuring, or threaten material injury to, the U.S. industry.
[[Page 68855]]
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: October 23, 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. 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 written description of the merchandise is
dispositive.
Appendix II
List of Topics Discussed in the Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Scope of Investigation
V. Scope Comments
VI. Discussion of the Methodology
VII. Currency Conversion
VIII. Adjustment for Countervailable Export Subsidies
IX. Adjustment Under Section 777A(f) of the Act
X. Recommendation
[FR Doc. 2020-24064 Filed 10-29-20; 8:45 am]
BILLING CODE 3510-DS-P