High Pressure Steel Cylinders From the People's Republic of China; Initiation of Countervailing Duty Investigation, 33239-33242 [2011-14042]
Download as PDF
<![CDATA[
Federal Register / Vol. 76, No. 110 / Wednesday, June 8, 2011 / Notices
withdrawn from warehouse, for
consumption from September 19, 2008,
through Jan 16, 2009, and May 29, 2009,
through December 31, 2009, at the
applicable rates. Entries during the
period January 17, through May 29,
2009, were not suspended for CVD
purposes due to the termination of
provisional measures.
DEPARTMENT OF COMMERCE
Cash Deposit Instructions
AGENCY:
The Department also intends to
instruct CBP to collect cash deposits of
estimated countervailing duties in the
amounts calculated for year 2009. For
all non-reviewed firms, we will instruct
CBP to collect cash deposits of
estimated countervailing duties at the
most recent company-specific or allothers rate applicable to the company.
These rates shall apply to all nonreviewed companies until a review of a
company assigned these rates is
requested. These cash deposit
requirements, when imposed, shall
remain in effect until further notice.
Public Comment
sroberts on DSK5SPTVN1PROD with NOTICES
Interested parties may submit written
arguments in case briefs within 30 days
of the date of publication of this notice.
Rebuttal briefs, limited to issues raised
in case briefs, may be filed not later than
five days after the date of filing the case
briefs. Parties who submit briefs in this
proceeding should provide a summary
of the arguments not to exceed five
pages and a table of statutes,
regulations, and cases cited. Copies of
case briefs and rebuttal briefs must be
served on interested parties in
accordance with 19 CFR 351.303(f).
Interested parties may request a
hearing within 30 days after the date of
publication of this notice. Unless
otherwise specified, the hearing, if
requested, will be held two days after
the scheduled date for submission of
rebuttal briefs.
The Department will publish a notice
of the final results of this administrative
review within 120 days from the
publication of these preliminary results.
We are issuing and publishing these
results in accordance with sections
751(a)(1) and 777(i)(1) of the Act.
Dated: May 31, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2011–14027 Filed 6–6–11; 8:45 am]
BILLING CODE 3510–DS–P
VerDate Mar<15>2010
21:51 Jun 07, 2011
Jkt 223001
International Trade Administration
[C–570–978]
High Pressure Steel Cylinders From
the People’s Republic of China;
Initiation of Countervailing Duty
Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: June 8, 2011.
FOR FURTHER INFORMATION CONTACT:
Scott Holland and Yasmin Nair, AD/
CVD Operations, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–1279 and (202)
482–3813, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On May 11, 2011, the Department of
Commerce (‘‘Department’’) received a
countervailing duty (‘‘CVD’’) petition
concerning imports of high pressure
steel cylinders (‘‘steel cylinders’’) from
the People’s Republic of China (‘‘PRC’’)
filed in proper form by Norris Cylinder
Company (‘‘Petitioner’’). See The
Petitions for the Imposition of
Antidumping and Countervailing Duties
Against High Pressure Steel Cylinders
from the People’s Republic of China,
dated May 11, 2011 (‘‘the Petition’’). On
May 17, 2011, the Department issued
requests to Petitioner for additional
information and for clarification of
certain areas of the CVD Petition. Based
on the Department’s requests, Petitioner
filed a supplement to the Petition
regarding general issues on May 20,
2011 (‘‘Supplement to the AD/CVD
Petitions’’).
In accordance with section 702(b)(1)
of the Tariff Act of 1930, as amended
(‘‘Act’’), Petitioner alleges that
producers/exporters of steel cylinders
from the PRC received countervailable
subsidies within the meaning of
sections 701 and 771(5) of the Act, and
that imports from these producers/
exporters materially injure, and threaten
further material injury to, an industry in
the United States.
The Department finds that Petitioner
filed the Petition on behalf of the
domestic industry because Petitioner is
an interested party, as defined in section
771(9)(C) of the Act, and has
demonstrated sufficient industry
support with respect to the investigation
that it requests the Department to
initiate (see ‘‘Determination of Industry
Support for the Petition’’ below).
PO 00000
Frm 00049
Fmt 4703
Sfmt 4703
33239
Period of Investigation
The period of investigation is January
1, 2010, through December 31, 2010.
Scope of Investigation
The products covered by the scope of
this investigation are steel cylinders
from the PRC. For a full description of
the scope of the investigation, see the
‘‘Scope of the Investigation,’’ in
Appendix I of this notice.
Comments on Scope of the Investigation
During our review of the Petition, we
discussed the scope with Petitioner to
ensure that it is an accurate reflection of
the products for which the domestic
industry is seeking relief. As a result,
the ‘‘Scope of Investigation’’ language
has been modified from the language in
the Petition to reflect these
clarifications. See Memorandum to the
File from Meredith A.W. Rutherford
regarding Petitions for the Imposition of
Antidumping Duties and Countervailing
Duties on High Pressure Steel Cylinders
from the People’s Republic of China;
Conference Call with Petitioner, May 24,
2011.
Moreover, as discussed in the
preamble to the regulations (see
Antidumping Duties; Countervailing
Duties, 62 FR 27296, 27323 (May 19,
1997)), we are setting aside a period of
time for interested parties to raise issues
regarding product coverage. The
Department encourages interested
parties to submit such comments by
Monday, June 20, 2011, which is twenty
calendar days from the signature date of
this notice. All comments must be filed
on the records of both the PRC
antidumping duty investigation as well
as the PRC CVD investigation.
Comments should be addressed to
Import Administration’s APO/Dockets
Unit, Room 1870, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230.
The period of scope consultations is
intended to provide the Department
with ample opportunity to consider all
comments and to consult with parties
prior to the issuance of the preliminary
determination.
Consultations
Pursuant to section 702(b)(4)(A)(ii) of
the Act, on May 16, 2011, the
Department invited representatives of
the Government of the PRC (‘‘GOC’’) for
consultations with respect to the CVD
petition. On May 25, 2011, the
Department held consultations with
representatives of the GOC via
conference call. See Ex-Parte
Memorandum on Consultations
regarding the Petition for Imposition of
Countervailing Duties on High Pressure
E:\FR\FM\08JNN1.SGM
08JNN1
33240
Federal Register / Vol. 76, No. 110 / Wednesday, June 8, 2011 / Notices
sroberts on DSK5SPTVN1PROD with NOTICES
Steel Cylinders from the People’s
Republic of China, dated May 27, 2011.
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,
the Department 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 the Department 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
the Department and the ITC must apply
the same statutory definition regarding
the domestic like product (see section
771(10) of the Act), they do so for
different purposes and pursuant to a
separate and distinct authority. In
addition, the Department’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. 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), cert. denied 492 U.S. 919 (1989)).
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
VerDate Mar<15>2010
21:51 Jun 07, 2011
Jkt 223001
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, Petitioner does not offer a
definition of domestic like product
distinct from the scope of the
investigation.
Based on our analysis of the
information submitted on the record, we
have determined that steel cylinders
constitute a single domestic like product
and we have analyzed industry support
in terms of that domestic like product.
For a discussion of the domestic like
product analysis in this case, see
Countervailing Duty Investigation
Initiation Checklist: High Pressure Steel
Cylinders from the People’s Republic of
China (‘‘Initiation Checklist’’), at
Attachment II, Analysis of Industry
Support for the Petitions Covering High
Pressure Steel Cylinders from the
People’s Republic of China, dated
concurrently with this notice and on file
in the CRU.
In determining whether 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
Investigation’’ section in Appendix I of
this notice. To establish industry
support, Petitioner provided its
production of the domestic like product
in 2010. See Supplement to the AD/CVD
Petitions, at 4. Petitioner maintains that
it was the sole remaining producer of
the domestic like product in 2010 and,
therefore, alleges that it represents the
total production of the domestic like
product. See Volume I of the Petition, at
3, and Supplement to the AD/CVD
Petitions, at 4. To demonstrate that it
was the sole producer, Petitioner
provided an affidavit from the President
of Norris Cylinder Company, who has
many years of professional experience
in the steel cylinders industry. See
Supplement to the AD/CVD Petitions, at
4, and Exhibit III–64. We have relied
upon data Petitioner provided for
purposes of measuring industry support.
For further discussion, see Initiation
Checklist at Attachment II.
Our review of the data provided in the
Petition, supplemental submissions, and
other information readily available to
the Department indicates that Petitioner
has established industry support. First,
the Petition established support from
domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
PO 00000
Frm 00050
Fmt 4703
Sfmt 4703
product and, as such, we find that the
Department is not required to take
further action in order to evaluate
industry support (e.g., polling). See
Section 702(c)(4)(D) of the Act, and
Initiation Checklist at Attachment II.
Second, we find that 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. See Initiation Checklist at
Attachment II. Finally, we find that 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. Accordingly, the
Department determines that the Petition
was filed on behalf of the domestic
industry within the meaning of section
702(b)(1) of the Act.
The Department finds that Petitioner
filed the Petition on behalf of the
domestic industry because it is an
interested party as defined in section
771(9)(C) of the Act and it has
demonstrated sufficient industry
support with respect to the CVD
investigation that it is requesting the
Department initiate. For further
discussion, see Initiation Checklist at
Attachment II.
Injury Test
Because the PRC 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 subject
merchandise from the PRC materially
injure, or threaten material injury to, a
U.S. industry.
Allegations and Evidence of Material
Injury and Causation
Petitioner alleges that imports of steel
cylinders from the PRC are benefitting
from countervailable subsidies and that
such imports are causing, or threaten to
cause, material injury to the domestic
industry producing steel cylinders. In
addition, Petitioner alleges that subject
imports exceed the negligibility
threshold provided for under section
771(24)(A) of the Act.
Petitioner contends that the industry’s
injured condition is illustrated by
reduced market share, reduced
shipments, reduced capacity,
E:\FR\FM\08JNN1.SGM
08JNN1
Federal Register / Vol. 76, No. 110 / Wednesday, June 8, 2011 / Notices
underselling and price depression or
suppression, reduced employment, a
decline in financial performance, lost
sales and revenue, and an increase in
import penetration. See Volume I of the
Petition, at 11–22. We have assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, and causation, and we
have determined that these allegations
are properly supported by adequate
evidence and meet the statutory
requirements for initiation. See
Initiation Checklist at Attachment III,
Injury.
Initiation of Countervailing Duty
Investigation
Section 702(b)(1) of the Act requires
the Department to initiate a CVD
proceeding whenever an interested
party files a petition on behalf of an
industry that: (1) Alleges the elements
necessary for an imposition of a duty
under section 701(a) of the Act; and (2)
is accompanied by information
reasonably available to the petitioner(s)
supporting the allegations. The
Department has examined the Petition
on steel cylinders from the PRC and
finds that it complies with the
requirements of section 702(b) of the
Act. Therefore, in accordance with
section 702(b) of the Act, we are
initiating a CVD investigation to
determine whether manufacturers,
producers, or exporters of steel
cylinders in the PRC receive
countervailable subsidies. For a
discussion of evidence supporting our
initiation determination, see Initiation
Checklist.
We are including in our investigation
the following programs alleged in the
Petition to have provided
countervailable subsidies to producers
and exporters of the subject
merchandise in the PRC:
A. State-Owned Enterprise (‘‘SOE’’)
Programs
1. Preferential Loans for SOEs.
2. Loan and Interest Forgiveness for
SOEs.
3. Provision of Land and/or Land Use
Rights to SOEs at Less than Adequate
Remuneration.
sroberts on DSK5SPTVN1PROD with NOTICES
B. Grant Programs
1. The State Key Technology
Renovation Project Fund.
2. Circular on Issuance of
Management Methods for Foreign Trade
Development Support Fund.
3. Rebates for Export and Credit
Insurance Fees.
4. GOC and Sub-Central Grants,
Loans, and Other Incentives for
VerDate Mar<15>2010
21:51 Jun 07, 2011
Jkt 223001
Development of Famous Brands and
China World Top Brands.
C. Loans and Directed Credit
1. Preferential Lending to Steel
Product Producers under the Ninth
Five-Year Plan.
2. Treasury Bond Loans.
3. Preferential Lending to Steel
Cylinders Producers and Exporters
Classified as ‘‘Honorable Enterprises’’.
D. Income Tax Programs
1. ‘‘Two Free, Three Half’’ Program for
FIEs.
2. Income Tax Reductions for Exportoriented FIEs.
3. Preferential Tax Programs for FIEs
that are Engaged in Research and
Development.
4. Income Tax Reduction for FIEs that
Re-Invest Profits in Export-oriented
Enterprises.
5. Local Income Tax Exemption and
Reduction Programs for ‘‘Productive’’
FIEs.
6. Income Tax Credits for
Domestically-Owned Companies
Purchasing Domestically-Produced
Equipment.
E. Other Tax Programs
1. Import Tariff and VAT Exemptions
for FIEs and Certain Domestic
Enterprises Using Imported Equipment
in Encouraged Industries.
2. VAT Refunds for FIEs Purchasing
Domestically-Produced Equipment.
3. VAT Exemptions for Central
Region.
F. Government Provision of Goods or
Services for Less Than Adequate
Remuneration (‘‘LTAR’’)
1. Hot-Rolled Steel.
2. Seamless Tube Steel.
3. Welded Tube Steel.
4. Standard Commodity Steel Billets
and Blooms.
5. High-Quality Chromium
Molybdenum Alloy Steel Billets and
Blooms.
6. Electricity.
G. Subsidies to Steel Cylinders
Producers Located in Economic
Development Zones
1. Subsidies Provided in the Tianjin
Binhai New Area and the Tianjin
Economic and Technological
Development Area.
Respondent Selection
For this investigation, the Department
expects to select respondents based on
U.S. Customs and Border Protection
(‘‘CBP’’) data for U.S. imports during the
period of investigation. We intend to
make our decision regarding respondent
PO 00000
Frm 00051
Fmt 4703
Sfmt 4703
33241
selection within 20 days of publication
of this Federal Register notice. The
Department invites comments regarding
the CBP data and respondent selection
within seven calendar days of
publication of this Federal Register
notice.
Distribution of Copies of the Petition
In accordance with section
702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to the
representatives of the GC. Because of the
particularly large number of producers/
exporters identified in the Petition, the
Department considers the service of the
public version of the Petition to the
foreign producers/exporters satisfied by
the delivery of the public version to the
GOC, consistent with 19 CFR
351.203(c)(2).
ITC Notification
We have notified the ITC of our
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 is filed, whether there is a
reasonable indication that imports of
subsidized steel cylinders from the PRC
are causing material injury, or
threatening to cause material injury, to
a U.S. industry. See section 703(a)(2) of
the Act. A negative ITC determination
will result in the investigation being
terminated; otherwise, the investigation
will proceed according to statutory and
regulatory time limits.
This notice is issued and published
pursuant to section 777(i) of the Act.
Dated: May 31, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
Attachment I
Scope of the Investigation
The merchandise covered by the
scope of the investigation is seamless
steel cylinders designed for storage or
transport of compressed or liquefied gas
(‘‘high pressure steel cylinders’’). High
pressure steel cylinders are fabricated of
chrome alloy steel including, but not
limited to, chromium-molybdenum steel
or chromium magnesium steel, and have
permanently impressed into the steel,
either before or after importation, the
symbol of a U.S. Department of
Transportation, Pipeline and Hazardous
Materials Safety Administration
(‘‘DOT’’)-approved high pressure steel
cylinder manufacturer, as well as an
approved DOT type marking of DOT 3A,
E:\FR\FM\08JNN1.SGM
08JNN1
33242
Federal Register / Vol. 76, No. 110 / Wednesday, June 8, 2011 / Notices
3AX, 3AA, 3AAX, 3B, 3E, 3HT, 3T, or
DOT–E (followed by a specific
exemption number) in accordance with
the requirements of sections 178.36
through 178.68 of Title 49 of the Code
of Federal Regulations, or any
subsequent amendments thereof. High
pressure steel cylinders covered by the
investigation have a water capacity up
to 450 liters, and a gas capacity ranging
from 8 to 702 cubic feet, regardless of
corresponding service pressure levels
and regardless of physical dimensions,
finish or coatings.
Excluded from the scope of the
investigation are high pressure steel
cylinders manufactured to UN–ISO–
9809–1 and 2 specifications and
permanently impressed with ISO or UN
symbols. Also excluded from the
investigation are acetylene cylinders,
with or without internal porous mass,
and permanently impressed with 8A or
8AL in accordance with DOT
regulations.
Merchandise covered by the
investigation is classified in the
Harmonized Tariff Schedule of the
United States (‘‘HTSUS’’) under
subheading 7311.00.00.30. Subject
merchandise may also enter under
HTSUS subheadings 7311.00.00.60 or
7311.00.00.90. Although the HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of the merchandise
under the investigation is dispositive.
[FR Doc. 2011–14042 Filed 6–7–11; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–974]
Certain Steel Wheels From the
People’s Republic of China; Notice of
Postponement of Preliminary
Determination in the Countervailing
Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
DATES: Effective Date: June 8, 2011.
FOR FURTHER INFORMATION CONTACT:
Kristen Johnson or Robert Copyak, AD/
CVD Operations, Office 3, Import
Administration, U.S. Department of
Commerce, Room 4014, 14th Street and
Constitution Avenue, NW., Washington,
DC 20230; telephone: 202–482–4793
and 202–482–2209, respectively.
SUPPLEMENTARY INFORMATION:
sroberts on DSK5SPTVN1PROD with NOTICES
AGENCY:
Background
On April 19, 2011, the Department of
Commerce (the Department) initiated
VerDate Mar<15>2010
21:51 Jun 07, 2011
Jkt 223001
the countervailing duty investigation of
certain steel wheels from the People’s
Republic of China. See Certain Steel
Wheels From the People’s Republic of
China: Initiation of Countervailing Duty
Investigation, 76 FR 23302 (April 26,
2011). Currently, the preliminary
determination is due no later than June
23, 2011.
Postponement of Due Date for
Preliminary Determination
Dated: June 1, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import
Administration.
[FR Doc. 2011–14169 Filed 6–7–11; 8:45 am]
PO 00000
Frm 00052
Fmt 4703
Sfmt 4703
International Trade Administration
[C–570–976]
Galvanized Steel Wire From the
People’s Republic of China:
Postponement of Preliminary
Determination in the Countervailing
Duty Investigation
Import Administration,
International Trade Administration,
Department of Commerce.
FOR FURTHER INFORMATION CONTACT:
David Lindgren or Nicholas Czajkowski,
AD/CVD Operations, Office 6, Import
Administration, International Trade
Administration, U.S. Department of
Commerce, 14th Street and Constitution
Avenue, NW., Washington, DC 20230;
telephone: (202) 482–3870 and (202)
482–1395, respectively.
SUPPLEMENTARY INFORMATION:
AGENCY:
Section 703(b)(1) of the Tariff Act of
1930, as amended (the Act), requires the
Department to issue the preliminary
determination in a countervailing duty
investigation within 65 days after the
date on which the Department initiated
the investigation. However, if the
Department concludes that the parties
concerned in the investigation are
cooperating and determines that the
investigation is extraordinarily
complicated, section 703(c)(1)(B) of the
Act allows the Department to postpone
making the preliminary determination
until no later than 130 days after the
date on which the administering
authority initiated the investigation.
The Department has determined that
the parties involved in the proceeding
are cooperating and that the
investigation is extraordinarily
complicated. See section 703(c)(1)(B) of
the Act. Specifically, the Department is
currently investigating alleged subsidy
programs involving loans, grants,
income tax incentives, and the
provision of goods or services for less
than adequate remuneration. Due to the
number and complexity of the alleged
countervailable subsidy practices being
investigated, it is not practicable to
complete the preliminary determination
of this investigation within the original
time limit (i.e., by June 23, 2011).
Therefore, in accordance with section
703(c)(1)(B) of the Act, we are fully
extending the due date for the
preliminary determination to no later
than 130 days after the day on which
the investigation was initiated.
However, as that date falls on a
Saturday (i.e., August 27, 2011), the
deadline for completion of the
preliminary determination is now
Monday, August 29, 2011, the next
business day.
This notice is issued and published
pursuant to section 703(c)(2) of the Act.
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
Background
On April 20, 2011, the Department of
Commerce (the Department) initiated
the countervailing duty investigation of
galvanized steel wire from the People’s
Republic of China. See Galvanized Steel
Wire From the People’s Republic of
China: Initiation of Countervailing Duty
Investigation, 76 FR 23564 (April 27,
2011). Currently, the preliminary
determination is due no later than June
24, 2011.
Postponement of Due Date for the
Preliminary Determination
Section 703(b)(1) of the Tariff Act of
1930, as amended (the Act), requires the
Department to issue the preliminary
determination in a countervailing duty
investigation within 65 days after the
date on which the Department initiated
the investigation. However, the
Department may postpone making the
preliminary determination until no later
than 130 days after the date on which
the administering authority initiated the
investigation if, among other reasons,
the petitioner makes a timely request for
an extension pursuant to section
703(c)(1)(A) of the Act. In the instant
investigation, Davis Wire Corporation,
Johnstown Wire Technologies, Inc.,
Mid-South Wire Company, Inc.,
National Standard, LLC, and Oklahoma
Steel & Wire Company, Inc.
(collectively, Petitioners), made a timely
request on May 25, 2011, requesting a
postponement of the preliminary
countervailing duty determination to
130 days from the initiation date. See 19
CFR 351.205(b)(2), 19 CFR 351.205(e)
and the Petitioners’ May 25, 2011, letter
requesting postponement of the
preliminary determination, which is
E:\FR\FM\08JNN1.SGM
08JNN1
]]>Agencies
[Federal Register Volume 76, Number 110 (Wednesday, June 8, 2011)]
[Notices]
[Pages 33239-33242]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-14042]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-978]
High Pressure Steel Cylinders From the People's Republic of
China; Initiation of Countervailing Duty Investigation
AGENCY: Import Administration, International Trade Administration,
Department of Commerce.
DATES: Effective Date: June 8, 2011.
FOR FURTHER INFORMATION CONTACT: Scott Holland and Yasmin Nair, AD/CVD
Operations, Import Administration, International Trade Administration,
U.S. Department of Commerce, 14th Street and Constitution Avenue, NW.,
Washington, DC 20230; telephone: (202) 482-1279 and (202) 482-3813,
respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On May 11, 2011, the Department of Commerce (``Department'')
received a countervailing duty (``CVD'') petition concerning imports of
high pressure steel cylinders (``steel cylinders'') from the People's
Republic of China (``PRC'') filed in proper form by Norris Cylinder
Company (``Petitioner''). See The Petitions for the Imposition of
Antidumping and Countervailing Duties Against High Pressure Steel
Cylinders from the People's Republic of China, dated May 11, 2011
(``the Petition''). On May 17, 2011, the Department issued requests to
Petitioner for additional information and for clarification of certain
areas of the CVD Petition. Based on the Department's requests,
Petitioner filed a supplement to the Petition regarding general issues
on May 20, 2011 (``Supplement to the AD/CVD Petitions'').
In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (``Act''), Petitioner alleges that producers/exporters of steel
cylinders from the PRC received countervailable subsidies within the
meaning of sections 701 and 771(5) of the Act, and that imports from
these producers/exporters materially injure, and threaten further
material injury to, an industry in the United States.
The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because Petitioner is an interested party, as
defined in section 771(9)(C) of the Act, and has demonstrated
sufficient industry support with respect to the investigation that it
requests the Department to initiate (see ``Determination of Industry
Support for the Petition'' below).
Period of Investigation
The period of investigation is January 1, 2010, through December
31, 2010.
Scope of Investigation
The products covered by the scope of this investigation are steel
cylinders from the PRC. For a full description of the scope of the
investigation, see the ``Scope of the Investigation,'' in Appendix I of
this notice.
Comments on Scope of the Investigation
During our review of the Petition, we discussed the scope with
Petitioner to ensure that it is an accurate reflection of the products
for which the domestic industry is seeking relief. As a result, the
``Scope of Investigation'' language has been modified from the language
in the Petition to reflect these clarifications. See Memorandum to the
File from Meredith A.W. Rutherford regarding Petitions for the
Imposition of Antidumping Duties and Countervailing Duties on High
Pressure Steel Cylinders from the People's Republic of China;
Conference Call with Petitioner, May 24, 2011.
Moreover, as discussed in the preamble to the regulations (see
Antidumping Duties; Countervailing Duties, 62 FR 27296, 27323 (May 19,
1997)), we are setting aside a period of time for interested parties to
raise issues regarding product coverage. The Department encourages
interested parties to submit such comments by Monday, June 20, 2011,
which is twenty calendar days from the signature date of this notice.
All comments must be filed on the records of both the PRC antidumping
duty investigation as well as the PRC CVD investigation. Comments
should be addressed to Import Administration's APO/Dockets Unit, Room
1870, U.S. Department of Commerce, 14th Street and Constitution Avenue,
NW., Washington, DC 20230. The period of scope consultations is
intended to provide the Department with ample opportunity to consider
all comments and to consult with parties prior to the issuance of the
preliminary determination.
Consultations
Pursuant to section 702(b)(4)(A)(ii) of the Act, on May 16, 2011,
the Department invited representatives of the Government of the PRC
(``GOC'') for consultations with respect to the CVD petition. On May
25, 2011, the Department held consultations with representatives of the
GOC via conference call. See Ex-Parte Memorandum on Consultations
regarding the Petition for Imposition of Countervailing Duties on High
Pressure
[[Page 33240]]
Steel Cylinders from the People's Republic of China, dated May 27,
2011.
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, the Department
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 the Department 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 the
Department and the ITC must apply the same statutory definition
regarding the domestic like product (see section 771(10) of the Act),
they do so for different purposes and pursuant to a separate and
distinct authority. In addition, the Department'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. 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), cert. denied 492 U.S. 919 (1989)).
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, Petitioner does not offer
a definition of domestic like product distinct from the scope of the
investigation.
Based on our analysis of the information submitted on the record,
we have determined that steel cylinders constitute a single domestic
like product and we have analyzed industry support in terms of that
domestic like product. For a discussion of the domestic like product
analysis in this case, see Countervailing Duty Investigation Initiation
Checklist: High Pressure Steel Cylinders from the People's Republic of
China (``Initiation Checklist''), at Attachment II, Analysis of
Industry Support for the Petitions Covering High Pressure Steel
Cylinders from the People's Republic of China, dated concurrently with
this notice and on file in the CRU.
In determining whether 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 Investigation'' section in Appendix I of
this notice. To establish industry support, Petitioner provided its
production of the domestic like product in 2010. See Supplement to the
AD/CVD Petitions, at 4. Petitioner maintains that it was the sole
remaining producer of the domestic like product in 2010 and, therefore,
alleges that it represents the total production of the domestic like
product. See Volume I of the Petition, at 3, and Supplement to the AD/
CVD Petitions, at 4. To demonstrate that it was the sole producer,
Petitioner provided an affidavit from the President of Norris Cylinder
Company, who has many years of professional experience in the steel
cylinders industry. See Supplement to the AD/CVD Petitions, at 4, and
Exhibit III-64. We have relied upon data Petitioner provided for
purposes of measuring industry support. For further discussion, see
Initiation Checklist at Attachment II.
Our review of the data provided in the Petition, supplemental
submissions, and other information readily available to the Department
indicates that Petitioner has established industry support. 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, we find that the Department is not
required to take further action in order to evaluate industry support
(e.g., polling). See Section 702(c)(4)(D) of the Act, and Initiation
Checklist at Attachment II. Second, we find that 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. See Initiation
Checklist at Attachment II. Finally, we find that 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. Accordingly, the Department determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.
The Department finds that Petitioner filed the Petition on behalf
of the domestic industry because it is an interested party as defined
in section 771(9)(C) of the Act and it has demonstrated sufficient
industry support with respect to the CVD investigation that it is
requesting the Department initiate. For further discussion, see
Initiation Checklist at Attachment II.
Injury Test
Because the PRC 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 subject merchandise from the PRC materially injure,
or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
Petitioner alleges that imports of steel cylinders from the PRC are
benefitting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the domestic industry
producing steel cylinders. In addition, Petitioner alleges that subject
imports exceed the negligibility threshold provided for under section
771(24)(A) of the Act.
Petitioner contends that the industry's injured condition is
illustrated by reduced market share, reduced shipments, reduced
capacity,
[[Page 33241]]
underselling and price depression or suppression, reduced employment, a
decline in financial performance, lost sales and revenue, and an
increase in import penetration. See Volume I of the Petition, at 11-22.
We have assessed the allegations and supporting evidence regarding
material injury, threat of material injury, and causation, and we have
determined that these allegations are properly supported by adequate
evidence and meet the statutory requirements for initiation. See
Initiation Checklist at Attachment III, Injury.
Initiation of Countervailing Duty Investigation
Section 702(b)(1) of the Act requires the Department to initiate a
CVD proceeding whenever an interested party files a petition on behalf
of an industry that: (1) Alleges the elements necessary for an
imposition of a duty under section 701(a) of the Act; and (2) is
accompanied by information reasonably available to the petitioner(s)
supporting the allegations. The Department has examined the Petition on
steel cylinders from the PRC and finds that it complies with the
requirements of section 702(b) of the Act. Therefore, in accordance
with section 702(b) of the Act, we are initiating a CVD investigation
to determine whether manufacturers, producers, or exporters of steel
cylinders in the PRC receive countervailable subsidies. For a
discussion of evidence supporting our initiation determination, see
Initiation Checklist.
We are including in our investigation the following programs
alleged in the Petition to have provided countervailable subsidies to
producers and exporters of the subject merchandise in the PRC:
A. State-Owned Enterprise (``SOE'') Programs
1. Preferential Loans for SOEs.
2. Loan and Interest Forgiveness for SOEs.
3. Provision of Land and/or Land Use Rights to SOEs at Less than
Adequate Remuneration.
B. Grant Programs
1. The State Key Technology Renovation Project Fund.
2. Circular on Issuance of Management Methods for Foreign Trade
Development Support Fund.
3. Rebates for Export and Credit Insurance Fees.
4. GOC and Sub-Central Grants, Loans, and Other Incentives for
Development of Famous Brands and China World Top Brands.
C. Loans and Directed Credit
1. Preferential Lending to Steel Product Producers under the Ninth
Five-Year Plan.
2. Treasury Bond Loans.
3. Preferential Lending to Steel Cylinders Producers and Exporters
Classified as ``Honorable Enterprises''.
D. Income Tax Programs
1. ``Two Free, Three Half'' Program for FIEs.
2. Income Tax Reductions for Export-oriented FIEs.
3. Preferential Tax Programs for FIEs that are Engaged in Research
and Development.
4. Income Tax Reduction for FIEs that Re-Invest Profits in Export-
oriented Enterprises.
5. Local Income Tax Exemption and Reduction Programs for
``Productive'' FIEs.
6. Income Tax Credits for Domestically-Owned Companies Purchasing
Domestically-Produced Equipment.
E. Other Tax Programs
1. Import Tariff and VAT Exemptions for FIEs and Certain Domestic
Enterprises Using Imported Equipment in Encouraged Industries.
2. VAT Refunds for FIEs Purchasing Domestically-Produced Equipment.
3. VAT Exemptions for Central Region.
F. Government Provision of Goods or Services for Less Than Adequate
Remuneration (``LTAR'')
1. Hot-Rolled Steel.
2. Seamless Tube Steel.
3. Welded Tube Steel.
4. Standard Commodity Steel Billets and Blooms.
5. High-Quality Chromium Molybdenum Alloy Steel Billets and Blooms.
6. Electricity.
G. Subsidies to Steel Cylinders Producers Located in Economic
Development Zones
1. Subsidies Provided in the Tianjin Binhai New Area and the
Tianjin Economic and Technological Development Area.
Respondent Selection
For this investigation, the Department expects to select
respondents based on U.S. Customs and Border Protection (``CBP'') data
for U.S. imports during the period of investigation. We intend to make
our decision regarding respondent selection within 20 days of
publication of this Federal Register notice. The Department invites
comments regarding the CBP data and respondent selection within seven
calendar days of publication of this Federal Register notice.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the representatives of the GC. Because of the particularly
large number of producers/exporters identified in the Petition, the
Department considers the service of the public version of the Petition
to the foreign producers/exporters satisfied by the delivery of the
public version to the GOC, consistent with 19 CFR 351.203(c)(2).
ITC Notification
We have notified the ITC of our 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 is filed, whether there is a reasonable
indication that imports of subsidized steel cylinders from the PRC are
causing material injury, or threatening to cause material injury, to a
U.S. industry. See section 703(a)(2) of the Act. A negative ITC
determination will result in the investigation being terminated;
otherwise, the investigation will proceed according to statutory and
regulatory time limits.
This notice is issued and published pursuant to section 777(i) of
the Act.
Dated: May 31, 2011.
Ronald K. Lorentzen,
Deputy Assistant Secretary for Import Administration.
Attachment I
Scope of the Investigation
The merchandise covered by the scope of the investigation is
seamless steel cylinders designed for storage or transport of
compressed or liquefied gas (``high pressure steel cylinders''). High
pressure steel cylinders are fabricated of chrome alloy steel
including, but not limited to, chromium-molybdenum steel or chromium
magnesium steel, and have permanently impressed into the steel, either
before or after importation, the symbol of a U.S. Department of
Transportation, Pipeline and Hazardous Materials Safety Administration
(``DOT'')-approved high pressure steel cylinder manufacturer, as well
as an approved DOT type marking of DOT 3A,
[[Page 33242]]
3AX, 3AA, 3AAX, 3B, 3E, 3HT, 3T, or DOT-E (followed by a specific
exemption number) in accordance with the requirements of sections
178.36 through 178.68 of Title 49 of the Code of Federal Regulations,
or any subsequent amendments thereof. High pressure steel cylinders
covered by the investigation have a water capacity up to 450 liters,
and a gas capacity ranging from 8 to 702 cubic feet, regardless of
corresponding service pressure levels and regardless of physical
dimensions, finish or coatings.
Excluded from the scope of the investigation are high pressure
steel cylinders manufactured to UN-ISO-9809-1 and 2 specifications and
permanently impressed with ISO or UN symbols. Also excluded from the
investigation are acetylene cylinders, with or without internal porous
mass, and permanently impressed with 8A or 8AL in accordance with DOT
regulations.
Merchandise covered by the investigation is classified in the
Harmonized Tariff Schedule of the United States (``HTSUS'') under
subheading 7311.00.00.30. Subject merchandise may also enter under
HTSUS subheadings 7311.00.00.60 or 7311.00.00.90. Although the HTSUS
subheadings are provided for convenience and customs purposes, the
written description of the merchandise under the investigation is
dispositive.
[FR Doc. 2011-14042 Filed 6-7-11; 8:45 am]
BILLING CODE 3510-DS-P
