Steel Propane Cylinders From the People's Republic of China, Taiwan, and Thailand: Initiation of Less-Than-Fair-Value Investigations, 28196-28202 [2018-12989]
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Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[A–520–803]
Polyethylene Terephthalate Film, Sheet
and Strip From the United Arab
Emirates: Partial Rescission of
Antidumping Duty Administrative
Review; 2016–2017
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable June 18, 2018.
FOR FURTHER INFORMATION CONTACT:
Andrew Huston, Office VII,
Antidumping and Countervailing Duty
Operations, Enforcement and
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230; telephone:
(202) 482–4261.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On November 1, 2017, the Department
of Commerce (Commerce) published a
notice of opportunity to request an
administrative review of the
antidumping duty (AD) order on
polyethylene terephthalate film, sheet
and strip from the United Arab
Emirates, covering the period November
1, 2016, through October 31, 2017.1 On
November 30, 2018, Commerce received
a timely request from the petitioners 2
for an AD administrative review of two
companies: JBF RAK LLC (JBF) and Flex
Middle East FZE (Flex),3 and JBF
submitted a timely request for an AD
review of itself.4 On January 11, 2018,
pursuant to the requests from interested
parties, Commerce published a notice of
initiation of administrative review with
respect to JBF and Flex.5 On April 11,
2018, the petitioners withdrew their
requests for reviews of JBF and Flex.6
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1 See
Antidumping or Countervailing Duty Order,
Finding, or Suspended Investigation; Opportunity
To Request Administrative Review, 82 FR 50620
(November 1, 2017).
2 DuPont Teijin Films, Mitsubishi Polyester Film,
Inc., and SKC, Inc.
3 See Petitioners’ letter, ‘‘Polyethylene
Terephthalate Film, Sheet, and Strip from United
Arab Emirates: Request for Antidumping Duty
Administrative Review,’’ dated November 30, 2017.
4 See JBF’s letter, ‘‘JBF RAK LLC/Request for A/
D Administrative Review: Polyethylene
Terephthalate Film, Sheet, and Strip from United
Arab Emirates (A–520–803),’’ dated November 30,
2017.
5 See Initiation of Antidumping and
Countervailing Duty Administrative Reviews, 83 FR
1329 (January 11, 2018).
6 See Petitioners’ letter ‘‘Withdrawal of Request
for Antidumping Duty Administrative Review,’’
dated April 13, 2018.
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Rescission in Part
Pursuant to 19 CFR 351.213(d)(1), the
Secretary will rescind an administrative
review, in whole or in part, if a party
that requested the review withdraws the
request within 90 days of the date of
publication of the notice of initiation of
the requested review. Commerce
initiated the instant review on January
11, 2018, and the petitioners withdrew
their request on April 11, 2018, which
is within the 90-day period and is thus
timely. Because the petitioners’
withdrawal of their requests for review
is timely and because no other party
requested a review of Flex, we are
rescinding this review, in part, with
respect to Flex, in accordance with 19
CFR 351.213(d)(1). JBF did not
withdraw its request for review of itself.
As such, the instant review will
continue with respect to JBF.
Assessment
Commerce will instruct U.S. Customs
and Border Protection (CBP) to assess
antidumping duties on all appropriate
entries. Subject merchandise produced
and/or exported by Flex will be assessed
antidumping duties at rates equal to the
cash deposit of estimated antidumping
duties required at the time of entry, or
withdrawal from warehouse, for
consumption, during the period
November 1, 2015, through October 31,
2016, in accordance with 19 CFR
351.212(c)(1)(i). Commerce intends to
issue assessment instructions to CBP 15
days after the date of publication of this
notice.
Notification to Importers
This notice serves as a reminder to
importers for whom this review is being
rescinded, as of the publication date of
this notice, of their responsibility under
19 CFR 351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during this
review period. Failure to comply with
this requirement could result in the
Secretary’s presumption that
reimbursement of the antidumping
duties occurred and the subsequent
increase in the amount of antidumping
duties assessed.
Notification Regarding Administrative
Protective Orders
This notice also serves as a final
reminder to parties subject to
administrative protective order (APO) of
their responsibility concerning the
return or destruction of proprietary
information disclosed under APO in
accordance with 19 CFR 351.305(a)(3),
which continues to govern business
proprietary information in this segment
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of the proceeding. Timely written
notification of the return/destruction of
APO materials or conversion to judicial
protective order is hereby requested.
Failure to comply with the regulations
and terms of an APO is a violation
which is subject to sanction.
This notice is issued and published in
accordance with section 751(a)(1) and
777(i)(1) of the Tariff Act of 1930, as
amended, and 19 CFR 351.213(d)(4).
Dated: June 12, 2018.
James Maeder,
Associate Deputy Assistant Secretary for
Antidumping and Countervailing Duty
Operations, performing the duties of Deputy
Assistant Secretary for Antidumping and
Countervailing Duty Operations.
[FR Doc. 2018–12996 Filed 6–15–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–086, A–583–864, and A–549–839]
Steel Propane Cylinders From the
People’s Republic of China, Taiwan,
and Thailand: Initiation of Less-ThanFair-Value Investigations
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable June 11, 2018.
FOR FURTHER INFORMATION CONTACT: Alex
Rosen at (202) 482–7814 (China); Laurel
LaCivita at (202) 482–4243 or Paul Stolz
at (202) 482–4474 (Taiwan); and Cindy
Robinson at (202) 482–3797 or
Stephanie Moore at (202) 482–3692
(Thailand); AD/CVD Operations,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petitions
On May 22, 2018, the U.S.
Department of Commerce (Commerce)
received antidumping duty (AD)
petitions concerning imports of steel
propane cylinders from People’s
Republic of China (China), Taiwan, and
Thailand, and a countervailing duty
(CVD) petition concerning imports of
steel propane cylinders from China filed
in proper form on behalf of Worthington
Industries and Manchester Tank &
Equipment Co. (the petitioners).1 The
1 See the petitioners’ letter, ‘‘Steel Propane
Cylinders from the People’s Republic of China,
Taiwan, and Thailand: Petition for the Imposition
of Antidumping and Countervailing Duties,’’ dated
May 22, 2018 (the Petitions). For the purposes of
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petitioners are domestic producers of
steel propane cylinders.2
The petitioners amended the scope of
the petitions on May 24, 2018.3 On May
25 and 31, 2018, Commerce requested
supplemental information pertaining to
certain areas of the petitions.4 The
petitioners filed responses to these
requests on May 30 and June 1, 2018.5
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioners allege that imports
of steel propane cylinders from China,
Taiwan, and Thailand are being, or are
likely to be, sold in the United States at
less than fair value within the meaning
of section 731 of the Act, and that such
imports are materially injuring, or
the instant notice, all references to ‘the Petitions’
refer specifically to the AD Petitions.
2 See Volume I of the Petitions, at 2–3.
3 See the petitioners’ letter, ‘‘Steel Propane
Cylinders from the People’s Republic of China,
Taiwan, and Thailand: Petitioners’ Amendment to
Volume I Relating to General Issues,’’ dated May 24,
2018 (Scope Amendment).
4 See Commerce’s letters, ‘‘Petitions for the
Imposition of Antidumping and Countervailing
Duties on Imports of Steel Propane Cylinders from
the People’s Republic of China, Taiwan, and
Thailand: Supplemental Questions’’ (General Issues
Supplemental Questionnaire); ‘‘Petition for the
Imposition of Antidumping Duties on Imports of
Steel Propane Cylinders from the People’s Republic
of China: Supplemental Questions’’ (China AD
Supplemental Questionnaire); ‘‘Petition for the
Imposition of Antidumping Duties on Imports of
Steel Propane Cylinders from Taiwan:
Supplemental Questions’’ (Taiwan Supplemental
Questionnaire); ‘‘Petition for the Imposition of
Antidumping Duties on Imports of Steel Propane
Cylinders from Thailand: Supplemental Questions’’
(Thailand Supplemental Questionnaire); all four of
these documents are dated May 25, 2018. See also
memoranda, ‘‘Petition for the Imposition of
Antidumping Duties on Imports of Steel Propane
Cylinders from China: Telephone Call to the
Petitioners Regarding Antidumping Petition,’’ and,
‘‘Petition for the Imposition of Antidumping Duties
on Imports of Steel Propane Cylinders from
Thailand: Telephone Call to the Petitioners
Regarding Antidumping Petition,’’ both dated May
31, 2018.
5 See the petitioners’ letters, ‘‘Steel Propane
Cylinders from the People’s Republic of China,
Taiwan, and Thailand: Petitioners’ Supplement to
Volume I Relating to General Issues’’ (General
Issues Supplement); ‘‘Steel Propane Cylinders from
the People’s Republic of China, Taiwan, and
Thailand: Petitioners’ Supplement to Volume II
Related to China’’ (China AD Supplement); ‘‘Steel
Propane Cylinders from the People’s Republic of
China, Taiwan, and Thailand: Petitioners’
Supplement to Volume III Related to Taiwan’’
(Taiwan AD Supplement); ‘‘Steel Propane Cylinders
from the People’s Republic of China, Taiwan, and
Thailand: Petitioners’ Supplement to Volume IV
Related to Thailand’’ (Thailand AD Supplement);
all four of these documents are dated May 30, 2018.
See also the petitioners’ letters, ‘‘Steel Propane
Cylinders from the People’s Republic of China,
Taiwan, and Thailand: Petitioners’ Response
Regarding the Exchange Rate Used for Thailand/
Volume IV’’ (Second Thailand AD Supplement)
and, ‘‘Steel Propane Cylinders from the People’s
Republic of China, Taiwan, and Thailand:
Petitioners’ Exchange Rate Response Regarding
China/Volume II’’ (Second China AD Supplement),
each dated June 1, 2018.
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threatening material injury to, the
domestic industry producing steel
propane cylinders in the United States.
Consistent with section 732(b)(1) of the
Act, the petitions are accompanied by
information reasonably available to the
petitioners supporting their allegations.
Commerce finds that the petitioners
filed the petitions on behalf of the
domestic industry because the
petitioners are interested parties as
defined in section 771(9)(C) of the Act.
We also find that the petitioners
demonstrated sufficient industry
support with respect to the initiation of
the AD investigations that the
petitioners are requesting.6
Periods of Investigation
Because the petitions were filed on
May 22, 2018, pursuant to 19 CFR
351.204(b)(1), the period of
investigation (POI) for the Taiwan and
Thailand investigations is April 1, 2017,
through March 31, 2018.7 Because
China is a non-market economy (NME)
country, pursuant to 19 CFR
351.204(b)(1), the POI for the China
investigation is October 1, 2017, through
March 31, 2018.
Scope of the Investigations
The products covered by these
investigations are steel propane
cylinders from China, Taiwan, and
Thailand. For a full description of the
scope of these investigations, see the
Appendix to this notice.
Comments on Scope of the
Investigations
During our review of the petitions,
Commerce issued questions to, and
received responses from, the petitioners
pertaining to the proposed scope to
ensure that the scope language in the
petitions is an accurate reflection of the
product for which the domestic industry
is seeking relief.8 As a result of these
exchanges, the scope of the petitions
was modified to clarify the description
of merchandise covered by the petitions.
The description of the merchandise
covered by this initiation, as described
in the Appendix to this notice, reflects
these clarifications.
As discussed in the Preamble to
Commerce’s regulations, we are setting
aside a period for interested parties to
raise issues regarding product coverage
(scope), including comments on
whether it is appropriate to refer to the
subject merchandise as ‘‘steel propane
cylinders,’’ (emphasis added) or just as
6 See the ‘‘Determination of Industry Support for
the Petitions’’ section, infra.
7 See 19 CFR 351.204(b)(1).
8 See General Issues Supplemental Questionnaire,
at 1–3 and General Issues Supplement, at 3–12.
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‘‘steel cylinders,’’ given that the
petitioners intend to cover all products
that meet the physical description of the
scope regardless of whether they
ultimately contain or transport
compressed or liquefied propane gas.9
Commerce will consider all comments
received from interested parties and, if
necessary, will consult with interested
parties prior to the issuance of the
preliminary determinations. If scope
comments include factual
information,10 all such factual
information should be limited to public
information. To facilitate preparation of
its questionnaires, Commerce requests
that all interested parties submit such
comments by 5:00 p.m. Eastern Time
(ET) on July 2, 2018, which is the next
business day after 20 calendar days from
the signature date of this notice.11 Any
rebuttal comments, which may include
factual information, must be filed by
5:00 p.m. ET on July 11, 2018, which is
10 calendar days from the initial
comments deadline.12
Commerce requests that any factual
information the parties consider
relevant to the scope of the
investigations be submitted during this
time period. However, if a party
subsequently finds that additional
factual information pertaining to the
scope of the investigations may be
relevant, the party may contact
Commerce and request permission to
submit the additional information. All
such comments must be filed on the
records of each of the concurrent AD
and CVD investigations, in accordance
with the filing requirements, discussed
immediately below.
Filing Requirements
All submissions to Commerce must be
filed electronically using Enforcement
and Compliance’s Antidumping Duty
and Countervailing Duty Centralized
Electronic Service System (ACCESS).13
9 See Antidumping Duties; Countervailing Duties;
Final Rule, 62 FR 27296, 27323 (May 19, 1997); see
also General Issues Supplement, at 4 and 8–9. On
June 11, 2018, the petitioners filed proposed
revisions to the scope language for Commerce’s
consideration. See letter from the petitioners, ‘‘Steel
Propane Cylinders from the People’s Republic of
China, Taiwan, and Thailand—Amended Scope
Language,’’ dated June 11, 2018.
10 See 19 CFR 351.102(b)(21) (defining ‘‘factual
information’’).
11 See 19 CFR 351.303(b).
12 Id.
13 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System
Name, 79 FR 69046 (November 20, 2014) for details
of Commerce’s electronic filing requirements,
effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/
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An electronically filed document must
be received successfully in its entirety
by the time and date it is due.
Documents exempted from the
electronic submission requirements
must be filed manually (i.e., in paper
form) with Enforcement and
Compliance’s APO/Dockets Unit, Room
18022, U.S. Department of Commerce,
1401 Constitution Avenue NW,
Washington, DC 20230, and stamped
with the date and time of receipt by the
applicable deadlines.
Comments on Product Characteristics
for AD Questionnaires
Commerce requests comments from
interested parties regarding the
appropriate physical characteristics of
steel propane cylinders to be reported in
response to Commerce’s AD
questionnaires. This information will be
used to identify the key physical
characteristics of the merchandise under
consideration in order to report the
relevant costs of production accurately
as well as to develop appropriate
product-comparison criteria.
Interested parties may provide any
information or comments that they feel
are relevant to the development of an
accurate list of physical characteristics.
Specifically, they may provide
comments as to which characteristics
are appropriate to use as: (1) General
product characteristics, and (2) productcomparison criteria. We note that it is
not always appropriate to use all
product characteristics as productcomparison criteria. We base productcomparison criteria on meaningful
commercial differences among products.
In other words, although there may be
some physical product characteristics
utilized by manufacturers to describe
steel propane cylinders, it may be that
only a select few product characteristics
take into account commercially
meaningful physical characteristics. In
addition, interested parties may
comment on the order in which the
physical characteristics should be used
in matching products. Generally,
Commerce attempts to list the most
important physical characteristics first
and the least important characteristics
last.
In order to consider the suggestions of
interested parties in developing and
issuing the AD questionnaires, all
product characteristics comments must
be filed by 5:00 p.m. ET on July 2, 2018,
which is the first business day after 20
calendar days from the signature date of
this notice. Any rebuttal comments
must be filed by 5:00 p.m. ET on July
11, 2018. All comments and
submissions to Commerce must be filed
electronically using ACCESS, as
explained above, on the records of the
China, Taiwan, and Thailand less-thanfair-value investigations.
Determination of Industry Support for
the Petitions
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(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 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
Commerce shall: (i) Poll the industry or
rely on other information in order to
determine if there is support for the
petition, as required by subparagraph
(A); or (ii) determine industry support
using a statistically valid sampling
method to poll the ‘‘industry.’’
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers, as a
whole, of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs Commerce to look to producers
and workers who produce the domestic
like product. The International Trade
Commission (ITC), which is responsible
for determining whether ‘‘the domestic
industry’’ has been injured, must also
determine what constitutes a domestic
like product in order to define the
industry. While both Commerce and the
ITC must apply the same statutory
definition regarding the domestic like
product,14 they do so for different
purposes and pursuant to a separate and
distinct authority. In addition,
Commerce’s determination is subject to
limitations of time and information.
Although this may result in different
definitions of the like product, such
differences do not render the decision of
either agency contrary to law.15
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
14 See
section 771(10) of the Act.
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)).
15 See
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access.trade.gov/help/Handbook%20on%20
Electronic%20Filling%20Procedures.pdf.
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most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in the petition).
With regard to the domestic like
product, the petitioners do not offer a
definition of the domestic like product
distinct from the scope of the
investigations.16 Based on our analysis
of the information submitted on the
record, we have determined that steel
propane cylinders, as defined in the
scope, constitute a single domestic like
product, and we have analyzed industry
support in terms of that domestic like
product.17
In determining whether the
petitioners have standing under section
732(c)(4)(A) of the Act, we considered
the industry support data contained in
the petitions with reference to the
domestic like product as defined in the
‘‘Scope of the Investigations,’’ in the
Appendix to this notice. To establish
industry support, the petitioners
provided their own production of the
domestic like product in 2017.18 The
petitioners state that there are no other
known producers of steel propane
cylinders in the United States; therefore,
the petitions are supported by 100
percent of the U.S. industry.19
Our review of the data provided in the
petitions and other information readily
available to Commerce indicates that the
petitioners have established industry
support for the petitions.20 First, the
petitions established support from
16 See Volume I of the Petitions, at 10–12; see also
General Issues Supplement, at 13–18.
17 For a discussion of the domestic like product
analysis as applied to these cases and information
regarding industry support, see Attachment II,
‘‘Analysis of Industry Support for the Antidumping
and Countervailing Duty Petitions Covering Steel
Propane Cylinders from the People’s Republic of
China, Taiwan, and Thailand’’ (Attachment II) of
the following Antidumping Duty Investigation
Initiation Checklists: ‘‘Steel Propane Cylinders from
the People’s Republic of China’’ (China AD
Initiation Checklist); ‘‘Antidumping Duty
Investigation Initiation Checklist: Steel Propane
Cylinders from Taiwan’’ (Taiwan AD Initiation
Checklist); and ‘‘Antidumping Duty Investigation
Initiation Checklist: Steel Propane Cylinders from
Thailand’’ (Thailand AD Initiation Checklist)
(collectively, AD Initiation Checklists). These
checklists are dated concurrently with this notice
and on file electronically via ACCESS. Access to
documents filed via ACCESS is also available in the
Central Records Unit, Room B8024 of the main
Department of Commerce building.
18 See Volume I of the Petitions, at 3–4 and
Exhibit GEN–2.
19 Id. at 3–4 and Exhibits GEN–1 and GEN–2. For
further discussion, see AD Initiation Checklists, at
Attachment II.
20 Id.
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domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).21 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the petitions
account for at least 25 percent of the
total production of the domestic like
product.22 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the petitions
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 petitions.23 Accordingly, Commerce
determines that the petitions were filed
on behalf of the domestic industry
within the meaning of section 732(b)(1)
of the Act.
Commerce finds that the petitioners
filed the petitions on behalf of the
domestic industry because they are
interested parties as defined in section
771(9)(C) of the Act, and they have
demonstrated sufficient industry
support with respect to the AD
investigations that they are requesting
that Commerce initiate.24
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Allegations and Evidence of Material
Injury and Causation
The petitioners allege that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise sold at less than normal
value (NV). In addition, the petitioners
allege that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.25
The petitioners contend that the
industry’s injured condition is
illustrated by a significant and
increasing volume of imports from the
subject countries; the domestic
industry’s reduced market share;
underselling and price depression or
suppression; a negative impact on the
domestic industry’s production,
shipments, capacity utilization, and
financial performance; and lost sales
21 Id.;
22 See
see also section 732(c)(4)(D) of the Act.
AD Initiation Checklists, at Attachment II.
23 Id.
24 Id.
25 See Volume I of the Petitions, at 13–14 and
Exhibit GEN–1.
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and revenues.26 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.27
Allegations of Sales at Less Than Fair
Value
The following is a description of the
allegations of sales at less than fair value
upon which Commerce based its
decision to initiate AD investigations of
imports of steel propane cylinders from
China, Taiwan, and Thailand. The
sources of data for the deductions and
adjustments relating to U.S. price and
NV are discussed in greater detail in the
country-specific initiation checklists.
Export Price
For China and Thailand, the
petitioners based export price (EP) on
pricing information for steel propane
cylinders produced in, and exported
from, those countries and sold or offered
for sale in the United States.28 For
China, the petitioners also based EP on
the average unit values (AUVs) of
publicly-available import data.29 For
Taiwan, the petitioners based EP on the
AUV of publicly-available import
data.30
Where appropriate, the petitioners
made deductions from U.S. price for
movement and other expenses
consistent with the terms of sale.31
Normal Value
For Taiwan and Thailand, the
petitioners based normal value (NV) on
home market prices obtained through
market research for steel propane
cylinders produced in and sold, or
offered for sale in each country within
the proposed POI.32 The petitioners
calculated net home market prices,
adjusting as appropriate for delivery
terms and other price adjustments.33 For
Taiwan and Thailand, the petitioners
provided information indicating that the
prices were below the cost of
26 Id., at 9–25 and Exhibits GEN–1, GEN–7
through GEN–15; see also General Issues
Supplement at 3 and Exhibit GEN–Supp–2.
27 See AD Initiation Checklists, at Attachment III,
‘‘Analysis of Allegations and Evidence of Material
Injury and Causation for the Antidumping and
Countervailing Duty Petitions Covering Steel
Propane Cylinders from the People’s Republic of
China, Taiwan, and Thailand’’ (Attachment III).
28 See China AD Initiation Checklist and Thailand
AD Initiation Checklist.
29 See China AD Initiation Checklist.
30 See Taiwan AD Initiation Checklist.
31 See AD Initiation Checklists.
32 See Taiwan AD Initiation Checklist and
Thailand AD Initiation Checklist.
33 Id.
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28199
production (COP), and therefore, the
petitioners also calculated NV based on
constructed value (CV).34 For further
discussion of COP and NV based on CV,
see the section ‘‘Normal Value Based on
Constructed Value’’ below.35
With respect to China, Commerce
considers China to be an NME
country.36 In accordance with section
771(18)(C)(i) of the Act, any
determination that a foreign country is
an NME country shall remain in effect
until revoked by Commerce. Therefore,
we continue to treat China as an NME
country for purposes of the initiation of
this investigation. Accordingly, NV in
China is appropriately based on factors
of production (FOPs) valued in a
surrogate market economy country, in
accordance with section 773(c) of the
Act.37
The petitioners claim that Thailand is
an appropriate surrogate country for
China because it is a market economy
country that is at a level of economic
development comparable to that of
China and it is a significant producer of
identical merchandise.38 The petitioners
provided publicly-available information
from Thailand to value all FOPs and
derive surrogate financial ratios.39
Therefore, based on the information
provided by the petitioners, we
determine that it is appropriate to use
Thailand as the primary surrogate
country for initiation purposes.
Interested parties will have the
opportunity to submit comments
regarding surrogate country selection
and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an
opportunity to submit publicly available
information to value FOPs within 30
days before the scheduled date of the
preliminary determination.
34 Id.
35 In accordance with section 505(a) of the Trade
Preferences Extension Act of 2015, amending
section 773(b)(2) of the Act, for this investigation,
Commerce will request information necessary to
calculate the CV and cost of production (COP) to
determine whether there are reasonable grounds to
believe or suspect that sales of the foreign like
product have been made at prices that represent
less than the COP of the product. Commerce no
longer requires a COP allegation to conduct this
analysis.
36 See Antidumping Duty Investigation of Certain
Aluminum Foil from the People’s Republic of
China: Affirmative Preliminary Determination of
Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861
(November 2, 2017), and accompanying decision
memorandum, China’s Status as a Non-Market
Economy, unchanged in Certain Aluminum Foil
from the People’s Republic of China: Final
Determination of Sales at Less Than Fair Value, 83
FR 9282 (March 5, 2018).
37 See China AD Initiation Checklist.
38 See Volume II of the Petitions, at 10–12.
39 Id., at Exhibit AD–PRC–5 (A–G), and China AD
Supplement Exhibit AD–PRC–Supp–4–G.
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Factors of Production
Because information regarding the
volume of inputs consumed by
producers/exporters in China was not
reasonably available, the petitioners
relied on their own product-specific
consumption rates to estimate the FOPs
for the manufactuers in China.40 The
petitioners valued the estimated FOPs
using surrogate values from Thailand, as
noted above.41 The petitioners used the
average POI exchange rate to convert the
data to U.S. dollars.42 The petitioners
relied upon the financial statements of
three Thai producers of steel propane
cylinders, to value overhead; selling,
general, and administrative (SG&A)
expenses; and profit.43
Normal Value Based on Constructed
Value
As noted above, for Taiwan and
Thailand, the petitioners obtained home
market prices but demonstrated that
these prices were below the COP during
the POI; therefore, the petitioners also
based NV on CV pursuant to section
773(a)(4) of the Act. Pursuant to section
773(e) of the Act, CV consists of the cost
of manufacturing (COM); SG&A
expenses; financial expenses; profit; and
packing expenses.
For Taiwan, the petitioners calculated
the COM based on a domestic
producer’s own input factors of
production and usage rates for raw
materials, labor, energy, and packing.44
The petitioners valued the input factors
of production using publicly available
data on costs specific to Taiwan, during
the proposed POI.45 Specifically, the
petitioners based prices for raw material
and packing inputs on publicly
available import data for Taiwan.46 The
petitioners valued labor and energy
costs using publicly available sources
for Taiwan.47 The petitioners calculated
factory overhead, SG&A, financial
expenses, and profit for Taiwan based
on the experience of producers in
Taiwan of comparable merchandise
(e.g., light steel frames, fire-proof doors,
various machines, metal building
structure assembly, steel wire products,
other metalwork, etc.).48
For Thailand, the petitioners
calculated the COM based on the
domestic producers’ own input factors
of production and usage rates for raw
materials, labor, energy, and packing.49
The petitioners valued input factors of
production using publicly available data
on costs specific to Thailand, during the
proposed POI.50 Specifically, the
petitioners based the prices for raw
material and packing inputs on publicly
available import data for Thailand.51
The petitioners valued labor and energy
costs using publicly available sources
for Thailand.52 The petitioners
calculated factory overhead, SG&A
(including financial expenses), and
profit for Thailand based on the
experience of a Thai producer of steel
propane cylinders.53
Fair Value Comparisons
Based on the data provided by the
petitioners, there is reason to believe
that imports of steel propane cylinders
from China, Taiwan, and Thailand are
being, or are likely to be, sold in the
United States at less than fair value.
Based on comparisons of EP to NV in
accordance with sections 772 and 773 of
the Act, the estimated dumping margins
for steel propane cylinders for each of
the countries covered by this initiation
are as follows: (1) China: 55.41 to 108.60
percent; 54 (2) Taiwan: 27.19 to 66.20
percent; 55 and (3) Thailand: 47.67 to
122.48 percent.56
Initiation of Less-Than-Fair-Value
Investigations
Based upon the examination of the
petitions, we find that the petitions
meet the requirements of section 732 of
the Act. Therefore, we are initiating AD
investigations to determine whether
imports of steel propane cylinders from
China, Taiwan, and Thailand are being,
or are likely to be, sold in the United
States at less than fair value. In
accordance with section 733(b)(1)(A) of
the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our
preliminary determinations no later
than 140 days after the date of this
initiation.
Respondent Selection
The petitions named ten companies in
China, eleven companies in Taiwan,
and four companies in Thailand as
producers/exporters of steel propane
cylinders.57 Following standard practice
in AD investigations involving market
amozie on DSK3GDR082PROD with NOTICES1
49 See
40 See
China AD Initiation Checklist.
Thailand AD Initiation Checklist.
50 Id.
41 Id.
51 Id.
42 Id.
52 Id.
43 Id.
44 See
53 Id.
Taiwan AD Initiation Checklist.
45 Id.
China AD Initiation Checklist.
Taiwan AD Initiation Checklist.
56 See Thailand AD Initiation Checklist.
57 See Volume I of the Petitions, at 9 and Exhibit
GEN–7.
55 See
46 Id.
47 Id.
48 Id.
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54 See
18:00 Jun 15, 2018
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economy countries, in the event
Commerce determines that the number
of companies is large and it cannot
individually examine each company
based upon Commerce’s resources,
where appropriate, Commerce intends
to select respondents based on U.S.
Customs and Border Protection (CBP)
data for U.S. imports of steel propane
cylinders from Taiwan and Thailand
during the POI under the appropriate
Harmonized Tariff Schedule of the
United States numbers listed in the
‘‘Scope of the Investigations,’’ in the
Appendix.
We also intend to release the CBP data
under Administrative Protective Order
(APO) to all parties with access to
information protected by APO on the
record within five business days of
publication of this Federal Register
notice. Comments regarding the CBP
data and respondent selection should be
submitted seven calendar days after the
placement of the CBP data on the record
of these investigations. Parties wishing
to submit rebuttal comments should
submit those comments five calendar
days after the deadline for the initial
comments. Interested parties must
submit applications for disclosure under
APO in accordance with 19 CFR
351.305(b). Instructions for filing such
applications may be found on
Commerce’s website at https://
enforcement.trade.gov/apo.
All respondent selection comments
must be filed electronically using
ACCESS. An electronically-filed
document must be received
successfully, in its entirety, by
Commerce’s electronic records system,
ACCESS, no later than 5:00 p.m. ET on
the dates noted above. We intend to
make our decisions regarding
respondent selection within 20 days of
publication of this notice.
With respect to respondent selection
for China, we intend to issue quantity
and value (Q&V) questionnaires to
producers/exporters of merchandise
under consideration in accordance with
our standard practice for respondent
selection in AD cases involving NME
countries. In the event Commerce
determines that it cannot individually
examine each company, where
appropriate, Commerce intends to select
mandatory respondents based on the
responses received. For the China
investigation, Commerce will request
Q&V information from known exporters
and producers identified with complete
contact information in the petitions. In
addition, Commerce will post the Q&V
questionnaires along with filing
instructions on Enforcement and
Compliance’s website at https://
www.trade.gov/enforcement/news.asp.
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Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices
Producers/exporters of steel propane
cylinders from China that do not receive
Q&V questionnaires by mail may still
submit a response to the Q&V
questionnaire and can obtain a copy of
the Q&V questionnaire from
Enforcement & Compliance’s website.
The Q&V response must be submitted
by the relevant exporters/producers in
China no later than 5:00 p.m. ET on
June 25, 2018, which is two weeks from
the signature date of this notice. All
Q&V responses must be filed
electronically via ACCESS.
Separate Rates
In order to obtain separate-rate status
in an NME investigation, exporters and
producers must submit a separate-rate
application. The specific requirements
for submitting a separate-rate
application in this investigation are
outlined in detail in the application
itself, which is available on Commerce’s
website at https://enforcement.trade.gov/
nme/nme-sep-rate.html. The separaterate application will be due 30 days
after publication of this initiation
notice. Exporters and producers who
submit a separate-rate application and
have been selected as mandatory
respondents will be eligible for
consideration for separate-rate status
only if they respond to all parts of
Commerce’s AD questionnaire as
mandatory respondents. Commerce
requires that companies from China
submit a response to both the Q&V
questionnaire and the separate-rate
application by the respective deadlines
in order to receive consideration for
separate-rate status. Companies not
filing a timely Q&V response will not
receive separate-rate consideration.
amozie on DSK3GDR082PROD with NOTICES1
Use of Combination Rates
Commerce will calculate combination
rates for certain respondents that are
eligible for a separate rate in an NME
investigation. The Separate Rates and
Combination Rates Bulletin states:
{w}hile continuing the practice of
assigning separate rates only to exporters, all
separate rates that the Department will now
assign in its NME Investigation will be
specific to those producers that supplied the
exporter during the period of investigation.
Note, however, that one rate is calculated for
the exporter and all of the producers which
supplied subject merchandise to it during the
period of investigation. This practice applies
both to mandatory respondents receiving an
individually calculated separate rate as well
as the pool of non-investigated firms
receiving the weighted-average of the
individually calculated rates. This practice is
referred to as the application of ‘‘combination
rates’’ because such rates apply to specific
combinations of exporters and one or more
producers. The cash-deposit rate assigned to
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18:00 Jun 15, 2018
Jkt 244001
an exporter will apply only to merchandise
both exported by the firm in question and
produced by a firm that supplied the exporter
during the period of investigation.58
Distribution of Copies of the Petitions
In accordance with section
732(b)(3)(A)(i) of the Act and 19 CFR
351.202(f), copies of the public version
of the petitions have been provided to
the governments of China, Taiwan, and
Thailand via ACCESS. To the extent
practicable, we will attempt to provide
a copy of the public version of the
petitions to each exporter named in the
petitions, as provided under 19 CFR
351.203(c)(2).
ITC Notification
We will notify the ITC of our
initiation, as required by section 732(d)
of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the petitions were filed, whether there
is a reasonable indication that imports
of steel propane cylinders from China,
Taiwan, and/or Thailand are materially
injuring, or threatening material injury
to, a U.S. industry.59 A negative ITC
determination for any country will
result in the investigation being
terminated with respect to that
country.60 Otherwise, the investigations
will proceed according to statutory and
regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) Evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by Commerce; and (v)
evidence other than factual information
described in (i)–(iv). Any party, when
submitting factual information, must
specify under which subsection of 19
CFR 351.102(b)(21) the information is
being submitted 61 and, if the
information is submitted to rebut,
clarify, or correct factual information
already on the record, to provide an
explanation identifying the information
already on the record that the factual
information seeks to rebut, clarify, or
correct.62 Time limits for the
submission of factual information are
58 See
59 See
Policy Bulletin 05.1 at 6 (emphasis added).
section 733(a) of the Act.
60 Id.
61 See
62 See
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19 CFR 351.301(b)(2).
Frm 00020
Fmt 4703
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28201
addressed in 19 CFR 351.301, which
provides specific time limits based on
the type of factual information being
submitted. Interested parties should
review the regulations prior to
submitting factual information in these
investigations.
Extensions of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301, or as otherwise specified by the
Secretary. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351.301.
For submissions that are due from
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. ET
on the due date. Under certain
circumstances, we may elect to specify
a different time limit by which
extension requests will be considered
untimely for submissions which are due
from multiple parties simultaneously. In
such a case, we will inform parties in
the letter or memorandum setting forth
the deadline (including a specified time)
by which extension requests must be
filed to be considered timely. An
extension request must be made in a
separate, stand-alone submission; under
limited circumstances we will grant
untimely-filed requests for the extension
of time limits. Parties should review
Extension of Time Limits; Final Rule, 78
FR 57790 (September 20, 2013),
available at https://www.gpo.gov/fdsys/
pkg/FR-2013-09-20/html/201322853.htm, prior to submitting factual
information in these investigations.
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.63
Parties must use the certification
formats provided in 19 CFR
351.303(g).64 Commerce intends to
reject factual submissions if the
submitting party does not comply with
the applicable certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under APO
in accordance with 19 CFR 351.305. On
63 See
section 782(b) of the Act.
also Certification of Factual Information to
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule). Answers to frequently asked
questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
64 See
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Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices
January 22, 2008, Commerce published
Antidumping and Countervailing Duty
Proceedings: Documents Submission
Procedures; APO Procedures, 73 FR
3634 (January 22, 2008). Parties wishing
to participate in these investigations
should ensure that they meet the
requirements of these procedures (e.g.,
the filing of letters of appearance as
discussed at 19 CFR 351.103(d)).
This notice is issued and published
pursuant to sections 732(c)(2) and 777(i)
of the Act, and 19 CFR 351.203(c).
Dated: June 11, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping
and Countervailing Duty Operations,
performing the non-exclusive functions and
duties of the Assistant Secretary for
Enforcement and Compliance.
amozie on DSK3GDR082PROD with NOTICES1
Appendix—Scope of the Investigations
The merchandise covered by these
investigations is steel cylinders for
compressed or liquefied propane gas (steel
propane cylinders) meeting the requirements
of, or produced to meet the requirements of,
U.S. Department of Transportation (USDOT)
Specifications 4B, 4BA, or 4BW, or Transport
Canada Specification 4BM, 4BAM, or 4BWM,
or United Nations pressure receptacle
standard ISO 4706. The scope includes steel
propane cylinders regardless of whether they
have been certified to these specifications
before importation. Steel propane cylinders
range from 2.5 pound nominal gas capacity
(approximate 6 pound water capacity and
approximate 4–6 pound tare weight) to 42
pound nominal gas capacity (approximate
100 pound water capacity and approximate
28–32 pound tare weight). Steel propane
cylinders have two or fewer ports and may
be imported assembled or unassembled (i.e.,
welded or brazed before or after importation),
with or without all components (including
collars, valves, gauges, tanks, foot rings, and
overfill prevention devices), and coated or
uncoated. Also included within the scope are
drawn cylinder halves, unfinished propane
cylinders, collars, and foot rings for steel
propane cylinders.
An ‘‘unfinished’’ or ‘‘unassembled’’
propane cylinder includes drawn cylinder
halves that have not been welded into a
cylinder, cylinders that have not had flanges
welded into the port hole(s), cylinders that
are otherwise complete but have not had
collars or foot rings welded to them,
otherwise complete cylinders without a valve
assembly attached, and cylinders that are
otherwise complete except for testing,
certification, and/or marking.
These investigations also cover steel
propane cylinders that meet, are produced to
meet, or are certified as meeting, other U.S.
or Canadian government, international, or
industry standards (including, for example,
American Society of Mechanical Engineers
(ASME), or American National Standard
Institute (ANSI)), if they also meet, are
produced to meet, or are certified as meeting
USDOT Specification 4B, 4BA, or 4BW, or
Transport Canada Specification 4BM, 4BAM,
VerDate Sep<11>2014
18:00 Jun 15, 2018
Jkt 244001
or 4BWM, or a United Nations pressure
receptacle standard ISO 4706.
Subject merchandise also includes steel
propane cylinders that have been further
processed in a third country, including but
not limited to, attachment of collars, foot
rings, or handles by welding or brazing, heat
treatment, painting, testing, certification, or
any other processing that would not
otherwise remove the merchandise from the
scope of the investigations if performed in
the country of manufacture of the in-scope
steel propane cylinders.
Specifically excluded are seamless steel
propane cylinders and propane cylinders
made from stainless steel (i.e., steel
containing at least 10.5 percent chromium by
weight and less than 1.2 percent carbon by
weight), aluminum, or composite fiber
material. Composite fiber material is material
consisting of the mechanical combination of
two components: Fiber (typically glass,
carbon, or aramid (synthetic polymer)) and a
matrix material (typically polymer resin,
ceramic, or metallic).
The merchandise subject to these
investigations is properly classified under
statistical reporting numbers 7311.00.0060
and 7311.00.0090 of the Harmonized Tariff
Schedule of the United States (HTSUS).
Although the HTSUS statistical reporting
numbers are provided for convenience and
customs purposes, the written description of
the merchandise is dispositive.
[FR Doc. 2018–12989 Filed 6–15–18; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–823–810]
Solid Agricultural Grade Ammonium
Nitrate From Ukraine: Final Results of
Sunset Review and Revocation of
Order
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: On May 1, 2018, the
Department of Commerce (Commerce)
initiated the sunset review of the
antidumping duty order on solid
agricultural grade ammonium nitrate
from Ukraine. Because the domestic
interested parties did not participate in
this sunset review, Commerce is
revoking this antidumping duty order.
FOR FURTHER INFORMATION CONTACT:
Robert Brown, AD/CVD Operations,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone (202) 482–3702.
SUPPLEMENTARY INFORMATION: On
September 12, 2001, Commerce issued
an antidumping duty order on solid
AGENCY:
PO 00000
Frm 00021
Fmt 4703
Sfmt 4703
grade ammonium nitrate from Ukraine.1
On June 12, 2013, Commerce published
its most recent continuation of the
order.2 On May 1, 2018, Commerce
initiated a sunset review of this order.3
We did not receive a notice of intent
to participate from domestic interested
parties in this sunset review. As a result,
in accordance with 19 CFR
351.218(d)(1)(iii)(A), Commerce
determined that no domestic interested
party intends to participate in the sunset
review, and on May 18, 2018, notified
the International Trade Commission, in
writing, that we intended to issue a final
determination revoking this
antidumping duty order.4
Scope of the Order: The products
covered by this antidumping duty order
are solid, fertilizer grade ammonium
nitrate (‘‘ammonium nitrate’’ or ‘‘subject
merchandise’’) products, whether
prilled, granular or in other solid form,
with or without additives or coating,
and with a bulk density equal to or
greater than 53 pounds per cubic foot.
Specifically excluded from the scope is
solid ammonium nitrate with a bulk
density less than 53 pounds per cubic
foot (commonly referred to as industrial
or explosive grade ammonium nitrate).
The subject merchandise is currently
classifiable under subheading
3102.30.00.00 of the Harmonized Tariff
Schedule of the United States
(‘‘HTSUS’’). Although HTSUS
subheadings are provided for
convenience and customs purposes, the
written description of the merchandise
is dispositive.
Determination To Revoke: Pursuant to
section 751(c)(3)(A) of the Tariff Act of
1930, as amended (the Act) and 19 CFR
351.218(d)(1)(iii)(B)(3), if no domestic
interested party files a notice of intent
to participate, Commerce shall, within
90 days after the initiation of the review,
issue a final determination revoking the
order. Because no domestic interested
party filed a notice of intent to
participate in this sunset review,
Commerce finds that no domestic
interested party is participating in this
sunset review. Therefore, consistent
with 19 CFR 351.222(i)(2)(i) and section
751(c)(3)(A) of the Act, we are revoking
this antidumping duty order.
Effective Date of Revocation: The
effective date of revocation is June 12,
1 See Antidumping Duty Order: Solid Agricultural
Grade Ammonium Nitrate from Ukraine, 66 FR
47451 (September 12, 2001).
2 See Solid Agricultural Grade Ammonium
Nitrate from Ukraine: Continuation of Antidumping
Duty Order, 78 FR 35258 (June 12, 2013).
3 See Initiation of Five-Year (‘‘Sunset’’) Review, 83
FR 19051 (May 1, 2018).
4 See Letter to Director, Office of Investigations,
International Trade Commission, ‘‘Sunset Reviews
Initiated on May 1, 2018,’’ dated May 18, 2018.
E:\FR\FM\18JNN1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 117 (Monday, June 18, 2018)]
[Notices]
[Pages 28196-28202]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12989]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-086, A-583-864, and A-549-839]
Steel Propane Cylinders From the People's Republic of China,
Taiwan, and Thailand: Initiation of Less-Than-Fair-Value Investigations
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable June 11, 2018.
FOR FURTHER INFORMATION CONTACT: Alex Rosen at (202) 482-7814 (China);
Laurel LaCivita at (202) 482-4243 or Paul Stolz at (202) 482-4474
(Taiwan); and Cindy Robinson at (202) 482-3797 or Stephanie Moore at
(202) 482-3692 (Thailand); AD/CVD Operations, Enforcement and
Compliance, International Trade Administration, U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petitions
On May 22, 2018, the U.S. Department of Commerce (Commerce)
received antidumping duty (AD) petitions concerning imports of steel
propane cylinders from People's Republic of China (China), Taiwan, and
Thailand, and a countervailing duty (CVD) petition concerning imports
of steel propane cylinders from China filed in proper form on behalf of
Worthington Industries and Manchester Tank & Equipment Co. (the
petitioners).\1\ The
[[Page 28197]]
petitioners are domestic producers of steel propane cylinders.\2\
---------------------------------------------------------------------------
\1\ See the petitioners' letter, ``Steel Propane Cylinders from
the People's Republic of China, Taiwan, and Thailand: Petition for
the Imposition of Antidumping and Countervailing Duties,'' dated May
22, 2018 (the Petitions). For the purposes of the instant notice,
all references to `the Petitions' refer specifically to the AD
Petitions.
\2\ See Volume I of the Petitions, at 2-3.
---------------------------------------------------------------------------
The petitioners amended the scope of the petitions on May 24,
2018.\3\ On May 25 and 31, 2018, Commerce requested supplemental
information pertaining to certain areas of the petitions.\4\ The
petitioners filed responses to these requests on May 30 and June 1,
2018.\5\
---------------------------------------------------------------------------
\3\ See the petitioners' letter, ``Steel Propane Cylinders from
the People's Republic of China, Taiwan, and Thailand: Petitioners'
Amendment to Volume I Relating to General Issues,'' dated May 24,
2018 (Scope Amendment).
\4\ See Commerce's letters, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Steel Propane
Cylinders from the People's Republic of China, Taiwan, and Thailand:
Supplemental Questions'' (General Issues Supplemental
Questionnaire); ``Petition for the Imposition of Antidumping Duties
on Imports of Steel Propane Cylinders from the People's Republic of
China: Supplemental Questions'' (China AD Supplemental
Questionnaire); ``Petition for the Imposition of Antidumping Duties
on Imports of Steel Propane Cylinders from Taiwan: Supplemental
Questions'' (Taiwan Supplemental Questionnaire); ``Petition for the
Imposition of Antidumping Duties on Imports of Steel Propane
Cylinders from Thailand: Supplemental Questions'' (Thailand
Supplemental Questionnaire); all four of these documents are dated
May 25, 2018. See also memoranda, ``Petition for the Imposition of
Antidumping Duties on Imports of Steel Propane Cylinders from China:
Telephone Call to the Petitioners Regarding Antidumping Petition,''
and, ``Petition for the Imposition of Antidumping Duties on Imports
of Steel Propane Cylinders from Thailand: Telephone Call to the
Petitioners Regarding Antidumping Petition,'' both dated May 31,
2018.
\5\ See the petitioners' letters, ``Steel Propane Cylinders from
the People's Republic of China, Taiwan, and Thailand: Petitioners'
Supplement to Volume I Relating to General Issues'' (General Issues
Supplement); ``Steel Propane Cylinders from the People's Republic of
China, Taiwan, and Thailand: Petitioners' Supplement to Volume II
Related to China'' (China AD Supplement); ``Steel Propane Cylinders
from the People's Republic of China, Taiwan, and Thailand:
Petitioners' Supplement to Volume III Related to Taiwan'' (Taiwan AD
Supplement); ``Steel Propane Cylinders from the People's Republic of
China, Taiwan, and Thailand: Petitioners' Supplement to Volume IV
Related to Thailand'' (Thailand AD Supplement); all four of these
documents are dated May 30, 2018. See also the petitioners' letters,
``Steel Propane Cylinders from the People's Republic of China,
Taiwan, and Thailand: Petitioners' Response Regarding the Exchange
Rate Used for Thailand/Volume IV'' (Second Thailand AD Supplement)
and, ``Steel Propane Cylinders from the People's Republic of China,
Taiwan, and Thailand: Petitioners' Exchange Rate Response Regarding
China/Volume II'' (Second China AD Supplement), each dated June 1,
2018.
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In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioners allege that imports of steel propane
cylinders from China, Taiwan, and Thailand are being, or are likely to
be, sold in the United States at less than fair value within the
meaning of section 731 of the Act, and that such imports are materially
injuring, or threatening material injury to, the domestic industry
producing steel propane cylinders in the United States. Consistent with
section 732(b)(1) of the Act, the petitions are accompanied by
information reasonably available to the petitioners supporting their
allegations.
Commerce finds that the petitioners filed the petitions on behalf
of the domestic industry because the petitioners are interested parties
as defined in section 771(9)(C) of the Act. We also find that the
petitioners demonstrated sufficient industry support with respect to
the initiation of the AD investigations that the petitioners are
requesting.\6\
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\6\ See the ``Determination of Industry Support for the
Petitions'' section, infra.
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Periods of Investigation
Because the petitions were filed on May 22, 2018, pursuant to 19
CFR 351.204(b)(1), the period of investigation (POI) for the Taiwan and
Thailand investigations is April 1, 2017, through March 31, 2018.\7\
Because China is a non-market economy (NME) country, pursuant to 19 CFR
351.204(b)(1), the POI for the China investigation is October 1, 2017,
through March 31, 2018.
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\7\ See 19 CFR 351.204(b)(1).
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Scope of the Investigations
The products covered by these investigations are steel propane
cylinders from China, Taiwan, and Thailand. For a full description of
the scope of these investigations, see the Appendix to this notice.
Comments on Scope of the Investigations
During our review of the petitions, Commerce issued questions to,
and received responses from, the petitioners pertaining to the proposed
scope to ensure that the scope language in the petitions is an accurate
reflection of the product for which the domestic industry is seeking
relief.\8\ As a result of these exchanges, the scope of the petitions
was modified to clarify the description of merchandise covered by the
petitions. The description of the merchandise covered by this
initiation, as described in the Appendix to this notice, reflects these
clarifications.
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\8\ See General Issues Supplemental Questionnaire, at 1-3 and
General Issues Supplement, at 3-12.
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As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (scope), including comments on whether it is
appropriate to refer to the subject merchandise as ``steel propane
cylinders,'' (emphasis added) or just as ``steel cylinders,'' given
that the petitioners intend to cover all products that meet the
physical description of the scope regardless of whether they ultimately
contain or transport compressed or liquefied propane gas.\9\ Commerce
will consider all comments received from interested parties and, if
necessary, will consult with interested parties prior to the issuance
of the preliminary determinations. If scope comments include factual
information,\10\ all such factual information should be limited to
public information. To facilitate preparation of its questionnaires,
Commerce requests that all interested parties submit such comments by
5:00 p.m. Eastern Time (ET) on July 2, 2018, which is the next business
day after 20 calendar days from the signature date of this notice.\11\
Any rebuttal comments, which may include factual information, must be
filed by 5:00 p.m. ET on July 11, 2018, which is 10 calendar days from
the initial comments deadline.\12\
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\9\ See Antidumping Duties; Countervailing Duties; Final Rule,
62 FR 27296, 27323 (May 19, 1997); see also General Issues
Supplement, at 4 and 8-9. On June 11, 2018, the petitioners filed
proposed revisions to the scope language for Commerce's
consideration. See letter from the petitioners, ``Steel Propane
Cylinders from the People's Republic of China, Taiwan, and
Thailand--Amended Scope Language,'' dated June 11, 2018.
\10\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
\11\ See 19 CFR 351.303(b).
\12\ Id.
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Commerce requests that any factual information the parties consider
relevant to the scope of the investigations be submitted during this
time period. However, if a party subsequently finds that additional
factual information pertaining to the scope of the investigations may
be relevant, the party may contact Commerce and request permission to
submit the additional information. All such comments must be filed on
the records of each of the concurrent AD and CVD investigations, in
accordance with the filing requirements, discussed immediately below.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\13\
[[Page 28198]]
An electronically filed document must be received successfully in its
entirety by the time and date it is due. Documents exempted from the
electronic submission requirements must be filed manually (i.e., in
paper form) with Enforcement and Compliance's APO/Dockets Unit, Room
18022, U.S. Department of Commerce, 1401 Constitution Avenue NW,
Washington, DC 20230, and stamped with the date and time of receipt by
the applicable deadlines.
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\13\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014) for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on help using
ACCESS can be found at https://access.trade.gov/help.aspx and a
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires
Commerce requests comments from interested parties regarding the
appropriate physical characteristics of steel propane cylinders to be
reported in response to Commerce's AD questionnaires. This information
will be used to identify the key physical characteristics of the
merchandise under consideration in order to report the relevant costs
of production accurately as well as to develop appropriate product-
comparison criteria.
Interested parties may provide any information or comments that
they feel are relevant to the development of an accurate list of
physical characteristics. Specifically, they may provide comments as to
which characteristics are appropriate to use as: (1) General product
characteristics, and (2) product-comparison criteria. We note that it
is not always appropriate to use all product characteristics as
product-comparison criteria. We base product-comparison criteria on
meaningful commercial differences among products. In other words,
although there may be some physical product characteristics utilized by
manufacturers to describe steel propane cylinders, it may be that only
a select few product characteristics take into account commercially
meaningful physical characteristics. In addition, interested parties
may comment on the order in which the physical characteristics should
be used in matching products. Generally, Commerce attempts to list the
most important physical characteristics first and the least important
characteristics last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaires, all product
characteristics comments must be filed by 5:00 p.m. ET on July 2, 2018,
which is the first business day after 20 calendar days from the
signature date of this notice. Any rebuttal comments must be filed by
5:00 p.m. ET on July 11, 2018. All comments and submissions to Commerce
must be filed electronically using ACCESS, as explained above, on the
records of the China, Taiwan, and Thailand less-than-fair-value
investigations.
Determination of Industry Support for the Petitions
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(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 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers, as a whole, of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\14\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\15\
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\14\ See section 771(10) of the Act.
\15\ 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)).
---------------------------------------------------------------------------
Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioners do not
offer a definition of the domestic like product distinct from the scope
of the investigations.\16\ Based on our analysis of the information
submitted on the record, we have determined that steel propane
cylinders, as defined in the scope, constitute a single domestic like
product, and we have analyzed industry support in terms of that
domestic like product.\17\
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\16\ See Volume I of the Petitions, at 10-12; see also General
Issues Supplement, at 13-18.
\17\ For a discussion of the domestic like product analysis as
applied to these cases and information regarding industry support,
see Attachment II, ``Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions Covering Steel Propane
Cylinders from the People's Republic of China, Taiwan, and
Thailand'' (Attachment II) of the following Antidumping Duty
Investigation Initiation Checklists: ``Steel Propane Cylinders from
the People's Republic of China'' (China AD Initiation Checklist);
``Antidumping Duty Investigation Initiation Checklist: Steel Propane
Cylinders from Taiwan'' (Taiwan AD Initiation Checklist); and
``Antidumping Duty Investigation Initiation Checklist: Steel Propane
Cylinders from Thailand'' (Thailand AD Initiation Checklist)
(collectively, AD Initiation Checklists). These checklists are dated
concurrently with this notice and on file electronically via ACCESS.
Access to documents filed via ACCESS is also available in the
Central Records Unit, Room B8024 of the main Department of Commerce
building.
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In determining whether the petitioners have standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the petitions with reference to the domestic like product
as defined in the ``Scope of the Investigations,'' in the Appendix to
this notice. To establish industry support, the petitioners provided
their own production of the domestic like product in 2017.\18\ The
petitioners state that there are no other known producers of steel
propane cylinders in the United States; therefore, the petitions are
supported by 100 percent of the U.S. industry.\19\
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\18\ See Volume I of the Petitions, at 3-4 and Exhibit GEN-2.
\19\ Id. at 3-4 and Exhibits GEN-1 and GEN-2. For further
discussion, see AD Initiation Checklists, at Attachment II.
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Our review of the data provided in the petitions and other
information readily available to Commerce indicates that the
petitioners have established industry support for the petitions.\20\
First, the petitions established support from
[[Page 28199]]
domestic producers (or workers) accounting for more than 50 percent of
the total production of the domestic like product and, as such,
Commerce is not required to take further action in order to evaluate
industry support (e.g., polling).\21\ Second, the domestic producers
(or workers) have met the statutory criteria for industry support under
section 732(c)(4)(A)(i) of the Act because the domestic producers (or
workers) who support the petitions account for at least 25 percent of
the total production of the domestic like product.\22\ Finally, the
domestic producers (or workers) have met the statutory criteria for
industry support under section 732(c)(4)(A)(ii) of the Act because the
domestic producers (or workers) who support the petitions 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 petitions.\23\ Accordingly, Commerce determines that
the petitions were filed on behalf of the domestic industry within the
meaning of section 732(b)(1) of the Act.
---------------------------------------------------------------------------
\20\ Id.
\21\ Id.; see also section 732(c)(4)(D) of the Act.
\22\ See AD Initiation Checklists, at Attachment II.
\23\ Id.
---------------------------------------------------------------------------
Commerce finds that the petitioners filed the petitions on behalf
of the domestic industry because they are interested parties as defined
in section 771(9)(C) of the Act, and they have demonstrated sufficient
industry support with respect to the AD investigations that they are
requesting that Commerce initiate.\24\
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\24\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioners allege that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at less than normal value (NV). In addition, the
petitioners allege that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\25\
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\25\ See Volume I of the Petitions, at 13-14 and Exhibit GEN-1.
---------------------------------------------------------------------------
The petitioners contend that the industry's injured condition is
illustrated by a significant and increasing volume of imports from the
subject countries; the domestic industry's reduced market share;
underselling and price depression or suppression; a negative impact on
the domestic industry's production, shipments, capacity utilization,
and financial performance; and lost sales and revenues.\26\ 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.\27\
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\26\ Id., at 9-25 and Exhibits GEN-1, GEN-7 through GEN-15; see
also General Issues Supplement at 3 and Exhibit GEN-Supp-2.
\27\ See AD Initiation Checklists, at Attachment III, ``Analysis
of Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering Steel Propane
Cylinders from the People's Republic of China, Taiwan, and
Thailand'' (Attachment III).
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Allegations of Sales at Less Than Fair Value
The following is a description of the allegations of sales at less
than fair value upon which Commerce based its decision to initiate AD
investigations of imports of steel propane cylinders from China,
Taiwan, and Thailand. The sources of data for the deductions and
adjustments relating to U.S. price and NV are discussed in greater
detail in the country-specific initiation checklists.
Export Price
For China and Thailand, the petitioners based export price (EP) on
pricing information for steel propane cylinders produced in, and
exported from, those countries and sold or offered for sale in the
United States.\28\ For China, the petitioners also based EP on the
average unit values (AUVs) of publicly-available import data.\29\ For
Taiwan, the petitioners based EP on the AUV of publicly-available
import data.\30\
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\28\ See China AD Initiation Checklist and Thailand AD
Initiation Checklist.
\29\ See China AD Initiation Checklist.
\30\ See Taiwan AD Initiation Checklist.
---------------------------------------------------------------------------
Where appropriate, the petitioners made deductions from U.S. price
for movement and other expenses consistent with the terms of sale.\31\
---------------------------------------------------------------------------
\31\ See AD Initiation Checklists.
---------------------------------------------------------------------------
Normal Value
For Taiwan and Thailand, the petitioners based normal value (NV) on
home market prices obtained through market research for steel propane
cylinders produced in and sold, or offered for sale in each country
within the proposed POI.\32\ The petitioners calculated net home market
prices, adjusting as appropriate for delivery terms and other price
adjustments.\33\ For Taiwan and Thailand, the petitioners provided
information indicating that the prices were below the cost of
production (COP), and therefore, the petitioners also calculated NV
based on constructed value (CV).\34\ For further discussion of COP and
NV based on CV, see the section ``Normal Value Based on Constructed
Value'' below.\35\
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\32\ See Taiwan AD Initiation Checklist and Thailand AD
Initiation Checklist.
\33\ Id.
\34\ Id.
\35\ In accordance with section 505(a) of the Trade Preferences
Extension Act of 2015, amending section 773(b)(2) of the Act, for
this investigation, Commerce will request information necessary to
calculate the CV and cost of production (COP) to determine whether
there are reasonable grounds to believe or suspect that sales of the
foreign like product have been made at prices that represent less
than the COP of the product. Commerce no longer requires a COP
allegation to conduct this analysis.
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With respect to China, Commerce considers China to be an NME
country.\36\ In accordance with section 771(18)(C)(i) of the Act, any
determination that a foreign country is an NME country shall remain in
effect until revoked by Commerce. Therefore, we continue to treat China
as an NME country for purposes of the initiation of this investigation.
Accordingly, NV in China is appropriately based on factors of
production (FOPs) valued in a surrogate market economy country, in
accordance with section 773(c) of the Act.\37\
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\36\ See Antidumping Duty Investigation of Certain Aluminum Foil
from the People's Republic of China: Affirmative Preliminary
Determination of Sales at Less-Than-Fair Value and Postponement of
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and
accompanying decision memorandum, China's Status as a Non-Market
Economy, unchanged in Certain Aluminum Foil from the People's
Republic of China: Final Determination of Sales at Less Than Fair
Value, 83 FR 9282 (March 5, 2018).
\37\ See China AD Initiation Checklist.
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The petitioners claim that Thailand is an appropriate surrogate
country for China because it is a market economy country that is at a
level of economic development comparable to that of China and it is a
significant producer of identical merchandise.\38\ The petitioners
provided publicly-available information from Thailand to value all FOPs
and derive surrogate financial ratios.\39\ Therefore, based on the
information provided by the petitioners, we determine that it is
appropriate to use Thailand as the primary surrogate country for
initiation purposes.
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\38\ See Volume II of the Petitions, at 10-12.
\39\ Id., at Exhibit AD-PRC-5 (A-G), and China AD Supplement
Exhibit AD-PRC-Supp-4-G.
---------------------------------------------------------------------------
Interested parties will have the opportunity to submit comments
regarding surrogate country selection and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an opportunity to submit publicly
available information to value FOPs within 30 days before the scheduled
date of the preliminary determination.
[[Page 28200]]
Factors of Production
Because information regarding the volume of inputs consumed by
producers/exporters in China was not reasonably available, the
petitioners relied on their own product-specific consumption rates to
estimate the FOPs for the manufactuers in China.\40\ The petitioners
valued the estimated FOPs using surrogate values from Thailand, as
noted above.\41\ The petitioners used the average POI exchange rate to
convert the data to U.S. dollars.\42\ The petitioners relied upon the
financial statements of three Thai producers of steel propane
cylinders, to value overhead; selling, general, and administrative
(SG&A) expenses; and profit.\43\
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\40\ See China AD Initiation Checklist.
\41\ Id.
\42\ Id.
\43\ Id.
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Normal Value Based on Constructed Value
As noted above, for Taiwan and Thailand, the petitioners obtained
home market prices but demonstrated that these prices were below the
COP during the POI; therefore, the petitioners also based NV on CV
pursuant to section 773(a)(4) of the Act. Pursuant to section 773(e) of
the Act, CV consists of the cost of manufacturing (COM); SG&A expenses;
financial expenses; profit; and packing expenses.
For Taiwan, the petitioners calculated the COM based on a domestic
producer's own input factors of production and usage rates for raw
materials, labor, energy, and packing.\44\ The petitioners valued the
input factors of production using publicly available data on costs
specific to Taiwan, during the proposed POI.\45\ Specifically, the
petitioners based prices for raw material and packing inputs on
publicly available import data for Taiwan.\46\ The petitioners valued
labor and energy costs using publicly available sources for Taiwan.\47\
The petitioners calculated factory overhead, SG&A, financial expenses,
and profit for Taiwan based on the experience of producers in Taiwan of
comparable merchandise (e.g., light steel frames, fire-proof doors,
various machines, metal building structure assembly, steel wire
products, other metalwork, etc.).\48\
---------------------------------------------------------------------------
\44\ See Taiwan AD Initiation Checklist.
\45\ Id.
\46\ Id.
\47\ Id.
\48\ Id.
---------------------------------------------------------------------------
For Thailand, the petitioners calculated the COM based on the
domestic producers' own input factors of production and usage rates for
raw materials, labor, energy, and packing.\49\ The petitioners valued
input factors of production using publicly available data on costs
specific to Thailand, during the proposed POI.\50\ Specifically, the
petitioners based the prices for raw material and packing inputs on
publicly available import data for Thailand.\51\ The petitioners valued
labor and energy costs using publicly available sources for
Thailand.\52\ The petitioners calculated factory overhead, SG&A
(including financial expenses), and profit for Thailand based on the
experience of a Thai producer of steel propane cylinders.\53\
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\49\ See Thailand AD Initiation Checklist.
\50\ Id.
\51\ Id.
\52\ Id.
\53\ Id.
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Fair Value Comparisons
Based on the data provided by the petitioners, there is reason to
believe that imports of steel propane cylinders from China, Taiwan, and
Thailand are being, or are likely to be, sold in the United States at
less than fair value. Based on comparisons of EP to NV in accordance
with sections 772 and 773 of the Act, the estimated dumping margins for
steel propane cylinders for each of the countries covered by this
initiation are as follows: (1) China: 55.41 to 108.60 percent; \54\ (2)
Taiwan: 27.19 to 66.20 percent; \55\ and (3) Thailand: 47.67 to 122.48
percent.\56\
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\54\ See China AD Initiation Checklist.
\55\ See Taiwan AD Initiation Checklist.
\56\ See Thailand AD Initiation Checklist.
---------------------------------------------------------------------------
Initiation of Less-Than-Fair-Value Investigations
Based upon the examination of the petitions, we find that the
petitions meet the requirements of section 732 of the Act. Therefore,
we are initiating AD investigations to determine whether imports of
steel propane cylinders from China, Taiwan, and Thailand are being, or
are likely to be, sold in the United States at less than fair value. In
accordance with section 733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determinations no later than 140 days after the date of this
initiation.
Respondent Selection
The petitions named ten companies in China, eleven companies in
Taiwan, and four companies in Thailand as producers/exporters of steel
propane cylinders.\57\ Following standard practice in AD investigations
involving market economy countries, in the event Commerce determines
that the number of companies is large and it cannot individually
examine each company based upon Commerce's resources, where
appropriate, Commerce intends to select respondents based on U.S.
Customs and Border Protection (CBP) data for U.S. imports of steel
propane cylinders from Taiwan and Thailand during the POI under the
appropriate Harmonized Tariff Schedule of the United States numbers
listed in the ``Scope of the Investigations,'' in the Appendix.
---------------------------------------------------------------------------
\57\ See Volume I of the Petitions, at 9 and Exhibit GEN-7.
---------------------------------------------------------------------------
We also intend to release the CBP data under Administrative
Protective Order (APO) to all parties with access to information
protected by APO on the record within five business days of publication
of this Federal Register notice. Comments regarding the CBP data and
respondent selection should be submitted seven calendar days after the
placement of the CBP data on the record of these investigations.
Parties wishing to submit rebuttal comments should submit those
comments five calendar days after the deadline for the initial
comments. Interested parties must submit applications for disclosure
under APO in accordance with 19 CFR 351.305(b). Instructions for filing
such applications may be found on Commerce's website at https://enforcement.trade.gov/apo.
All respondent selection comments must be filed electronically
using ACCESS. An electronically-filed document must be received
successfully, in its entirety, by Commerce's electronic records system,
ACCESS, no later than 5:00 p.m. ET on the dates noted above. We intend
to make our decisions regarding respondent selection within 20 days of
publication of this notice.
With respect to respondent selection for China, we intend to issue
quantity and value (Q&V) questionnaires to producers/exporters of
merchandise under consideration in accordance with our standard
practice for respondent selection in AD cases involving NME countries.
In the event Commerce determines that it cannot individually examine
each company, where appropriate, Commerce intends to select mandatory
respondents based on the responses received. For the China
investigation, Commerce will request Q&V information from known
exporters and producers identified with complete contact information in
the petitions. In addition, Commerce will post the Q&V questionnaires
along with filing instructions on Enforcement and Compliance's website
at https://www.trade.gov/enforcement/news.asp.
[[Page 28201]]
Producers/exporters of steel propane cylinders from China that do
not receive Q&V questionnaires by mail may still submit a response to
the Q&V questionnaire and can obtain a copy of the Q&V questionnaire
from Enforcement & Compliance's website. The Q&V response must be
submitted by the relevant exporters/producers in China no later than
5:00 p.m. ET on June 25, 2018, which is two weeks from the signature
date of this notice. All Q&V responses must be filed electronically via
ACCESS.
Separate Rates
In order to obtain separate-rate status in an NME investigation,
exporters and producers must submit a separate-rate application. The
specific requirements for submitting a separate-rate application in
this investigation are outlined in detail in the application itself,
which is available on Commerce's website at https://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate
application will be due 30 days after publication of this initiation
notice. Exporters and producers who submit a separate-rate application
and have been selected as mandatory respondents will be eligible for
consideration for separate-rate status only if they respond to all
parts of Commerce's AD questionnaire as mandatory respondents. Commerce
requires that companies from China submit a response to both the Q&V
questionnaire and the separate-rate application by the respective
deadlines in order to receive consideration for separate-rate status.
Companies not filing a timely Q&V response will not receive separate-
rate consideration.
Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate
rates only to exporters, all separate rates that the Department will
now assign in its NME Investigation will be specific to those
producers that supplied the exporter during the period of
investigation. Note, however, that one rate is calculated for the
exporter and all of the producers which supplied subject merchandise
to it during the period of investigation. This practice applies both
to mandatory respondents receiving an individually calculated
separate rate as well as the pool of non-investigated firms
receiving the weighted-average of the individually calculated rates.
This practice is referred to as the application of ``combination
rates'' because such rates apply to specific combinations of
exporters and one or more producers. The cash-deposit rate assigned
to an exporter will apply only to merchandise both exported by the
firm in question and produced by a firm that supplied the exporter
during the period of investigation.\58\
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\58\ See Policy Bulletin 05.1 at 6 (emphasis added).
Distribution of Copies of the Petitions
In accordance with section 732(b)(3)(A)(i) of the Act and 19 CFR
351.202(f), copies of the public version of the petitions have been
provided to the governments of China, Taiwan, and Thailand via ACCESS.
To the extent practicable, we will attempt to provide a copy of the
public version of the petitions to each exporter named in the
petitions, as provided under 19 CFR 351.203(c)(2).
ITC Notification
We will notify the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determinations by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the petitions were filed, whether there is a reasonable
indication that imports of steel propane cylinders from China, Taiwan,
and/or Thailand are materially injuring, or threatening material injury
to, a U.S. industry.\59\ A negative ITC determination for any country
will result in the investigation being terminated with respect to that
country.\60\ Otherwise, the investigations will proceed according to
statutory and regulatory time limits.
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\59\ See section 733(a) of the Act.
\60\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Any party, when submitting factual
information, must specify under which subsection of 19 CFR
351.102(b)(21) the information is being submitted \61\ and, if the
information is submitted to rebut, clarify, or correct factual
information already on the record, to provide an explanation
identifying the information already on the record that the factual
information seeks to rebut, clarify, or correct.\62\ Time limits for
the submission of factual information are addressed in 19 CFR 351.301,
which provides specific time limits based on the type of factual
information being submitted. Interested parties should review the
regulations prior to submitting factual information in these
investigations.
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\61\ See 19 CFR 351.301(b).
\62\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351.301. For submissions that are
due from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, we will inform parties in the letter or memorandum setting
forth the deadline (including a specified time) by which extension
requests must be filed to be considered timely. An extension request
must be made in a separate, stand-alone submission; under limited
circumstances we will grant untimely-filed requests for the extension
of time limits. Parties should review Extension of Time Limits; Final
Rule, 78 FR 57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to
submitting factual information in these investigations.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\63\
Parties must use the certification formats provided in 19 CFR
351.303(g).\64\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\63\ See section 782(b) of the Act.
\64\ See also Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to
frequently asked questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
APO in accordance with 19 CFR 351.305. On
[[Page 28202]]
January 22, 2008, Commerce published Antidumping and Countervailing
Duty Proceedings: Documents Submission Procedures; APO Procedures, 73
FR 3634 (January 22, 2008). Parties wishing to participate in these
investigations should ensure that they meet the requirements of these
procedures (e.g., the filing of letters of appearance as discussed at
19 CFR 351.103(d)).
This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act, and 19 CFR 351.203(c).
Dated: June 11, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix--Scope of the Investigations
The merchandise covered by these investigations is steel
cylinders for compressed or liquefied propane gas (steel propane
cylinders) meeting the requirements of, or produced to meet the
requirements of, U.S. Department of Transportation (USDOT)
Specifications 4B, 4BA, or 4BW, or Transport Canada Specification
4BM, 4BAM, or 4BWM, or United Nations pressure receptacle standard
ISO 4706. The scope includes steel propane cylinders regardless of
whether they have been certified to these specifications before
importation. Steel propane cylinders range from 2.5 pound nominal
gas capacity (approximate 6 pound water capacity and approximate 4-6
pound tare weight) to 42 pound nominal gas capacity (approximate 100
pound water capacity and approximate 28-32 pound tare weight). Steel
propane cylinders have two or fewer ports and may be imported
assembled or unassembled (i.e., welded or brazed before or after
importation), with or without all components (including collars,
valves, gauges, tanks, foot rings, and overfill prevention devices),
and coated or uncoated. Also included within the scope are drawn
cylinder halves, unfinished propane cylinders, collars, and foot
rings for steel propane cylinders.
An ``unfinished'' or ``unassembled'' propane cylinder includes
drawn cylinder halves that have not been welded into a cylinder,
cylinders that have not had flanges welded into the port hole(s),
cylinders that are otherwise complete but have not had collars or
foot rings welded to them, otherwise complete cylinders without a
valve assembly attached, and cylinders that are otherwise complete
except for testing, certification, and/or marking.
These investigations also cover steel propane cylinders that
meet, are produced to meet, or are certified as meeting, other U.S.
or Canadian government, international, or industry standards
(including, for example, American Society of Mechanical Engineers
(ASME), or American National Standard Institute (ANSI)), if they
also meet, are produced to meet, or are certified as meeting USDOT
Specification 4B, 4BA, or 4BW, or Transport Canada Specification
4BM, 4BAM, or 4BWM, or a United Nations pressure receptacle standard
ISO 4706.
Subject merchandise also includes steel propane cylinders that
have been further processed in a third country, including but not
limited to, attachment of collars, foot rings, or handles by welding
or brazing, heat treatment, painting, testing, certification, or any
other processing that would not otherwise remove the merchandise
from the scope of the investigations if performed in the country of
manufacture of the in-scope steel propane cylinders.
Specifically excluded are seamless steel propane cylinders and
propane cylinders made from stainless steel (i.e., steel containing
at least 10.5 percent chromium by weight and less than 1.2 percent
carbon by weight), aluminum, or composite fiber material. Composite
fiber material is material consisting of the mechanical combination
of two components: Fiber (typically glass, carbon, or aramid
(synthetic polymer)) and a matrix material (typically polymer resin,
ceramic, or metallic).
The merchandise subject to these investigations is properly
classified under statistical reporting numbers 7311.00.0060 and
7311.00.0090 of the Harmonized Tariff Schedule of the United States
(HTSUS). Although the HTSUS statistical reporting numbers are
provided for convenience and customs purposes, the written
description of the merchandise is dispositive.
[FR Doc. 2018-12989 Filed 6-15-18; 8:45 am]
BILLING CODE 3510-DS-P
