Steel Propane Cylinders From the People's Republic of China: Initiation of Countervailing Duty Investigation, 28189-28193 [2018-12998]

Download as PDF Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices Long-Term ICO Financing to Angel Camacho Comment 17: Whether Commerce Should Adjust the Calculation of European Investment Bank (EIB) Financing Received by Agro Sevilla Comment 18: Whether To Apply AFA to the CDTI Program Comment 19: Whether the CDTI Program is Export Specific Comment 20: Whether Commerce Should Apply AFA to Angel Camacho’s Unreported Grant Presented at Verification Comment 21: Whether Commerce Should Rely on ‘‘Unverified’’ Information Comment 22: Whether Commerce Should Adjust the Volume of Raw Olives Purchased to Account for Waste Loss Comment 23: Whether Commerce Should Accept Rejected Submission from the GOS and the Respondents Comment 24: Comments on the Verification Reports Comment 26: Whether Commerce’s Conduct in This Investigation Meets the Requirements of the ASCM Comment 26: Whether Other Discovered Subsidies Should be Included in this Investigation and Whether Other Assistance Can Form the Basis for Applying AFA Comment 27: Whether Commerce Should Include the Corrections of the Alleged Ministerial Errors Comment 28: Commerce Must Use Corrected and Revised Data in the Calculations Comment 29: Whether To Clarify the Scope of the Investigation to Include Ripe Olives Contained in Cocktail Mixes Comment 30: The Product to Which the Countervailing Duty Applies X. Recommendation [FR Doc. 2018–12990 Filed 6–15–18; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [C–570–087] Steel Propane Cylinders From the People’s Republic of China: Initiation of Countervailing Duty Investigation Enforcement and Compliance, International Trade Administration, Department of Commerce. DATES: Applicable June 11, 2018. FOR FURTHER INFORMATION CONTACT: Samuel Brummitt, AD/CVD Operations, Office III, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone (202) 482–7851. SUPPLEMENTARY INFORMATION: amozie on DSK3GDR082PROD with NOTICES1 AGENCY: The Petition On May 22, 2018, the U.S. Department of Commerce (Commerce) VerDate Sep<11>2014 18:00 Jun 15, 2018 Jkt 244001 received a countervailing duty (CVD) petition concerning imports of steel propane cylinders from the People’s Republic of China (China), and antidumping duty (AD) petitions concerning imports of steel propane cylinders from China, Taiwan, and Thailand filed in proper form on behalf of Worthington Industries and Manchester Tank & Equipment Co. (the petitioners).1 The petitioners are domestic producers of steel propane cylinders.2 The petitioners amended the scope of the petitioners on May 24, 2018.3 On May 25, 2018, Commerce requested supplemental information pertaining to certain areas of the petition.4 The petitioners filed responses to these requests on May 30, 2018.5 On May 30, 2018, the petitioners submitted certain revisions to the scope.6 In accordance with section 702(b)(1) of the Tariff Act of 1930, as amended (the Act), the petitioners allege that the Government of China (GOC) is providing countervailable subsidies, within the meaning of sections 701 and 771(5) of the Act, to producers of steel propane cylinders in China and imports of such products are materially injuring, or threatening material injury to, the domestic steel propane cylinders industry in the United States. Consistent with section 702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs on which we are initiating a 1 See 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 Petition,’ herein, refer specifically to the CVD Petition, and all references to ‘‘AD Petitions,’’ herein refer specifically to the petitioners filed in the companion AD proceedings. 2 See Petition at Volume I at 1–2. 3 See 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 Department Letter re: Petition for the Imposition of Countervailing Duties on Imports of Steel Propane Cylinders from the People’s Republic of China: Supplemental Questions, dated May 25, 2018; and Department Letter re: 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, dated May 25, 2018 (Petition Supplemental Questions). 5 See Petitioners’ Letter, ‘‘Steel Propane Cylinders from the People’s Republic of China, Taiwan, and Thailand—Petitioners’ Supplement to Volume I Relating to General Issues,’’ dated May 30, 2018 (General Issues Supplement); see also Petitioners’ Letter, ‘‘Steel Propane Cylinders from the People’s Republic of China, Taiwan, and Thailand— Petitioners’ Amendment to Volume V Relating to the People’s Republic of China Countervailing Duties,’’ dated May 30, 2018 (China CVD Petition Supplement). 6 See General Issues Supplement at 11–12. PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 28189 CVD investigation, the petition is accompanied by information reasonably available to the petitioners supporting their allegations. Commerce finds that the petitioners filed the petition 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 this CVD investigation that the petitioners are requesting.7 Period of Investigation Because the petition was filed on May 22, 2018, the period of investigation is January 1, 2017, through December 31, 2017.8 Scope of the Investigation The products covered by this investigation are steel propane cylinders from China. For a full description of the scope of the investigation, see the Appendix to this notice. Comments on Scope of the Investigation During our review of the petition, Commerce issued questions to, and received responses from, the petitioners pertaining to the proposed scope to ensure that the scope language in the petition is an accurate reflection of the product for which the domestic industry is seeking relief.9 As a result of these exchanges, the scope of the petition was modified to clarify the description of merchandise covered by the petition. 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 ‘‘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.10 7 See ‘‘Determination of Industry Support for the Petition’’ section, infra. 8 See 19 CFR 351.204(b)(2). 9 See Petition Supplemental Questions; see also General Issues Supplement at 11–12. 10 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997) (Preamble); 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 E:\FR\FM\18JNN1.SGM Continued 18JNN1 28190 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices Commerce will consider all comments received from interested parties and, if necessary, will consult with interested parties prior to the issuance of the preliminary determination. If scope comments include factual information,11 all such factual information should be limited to public information. To facilitate preparation of its questionnaires, Commerce requests that all interested parties submit comments within 20 calendar days from the signature date of this notice. As such, scope comments must be filed by 5:00 p.m. Eastern Time (ET) on July 2, 2018.12 Any rebuttal comments, which may include factual information, must be filed by 5:00 p.m. ET on July 12, 2018, which is 10 calendar days from the initial comments deadline.13 Commerce requests that any factual information the parties consider relevant to the scope of the investigation be submitted during this time period. However, if a party subsequently finds that additional factual information pertaining to the scope of the investigation 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 amozie on DSK3GDR082PROD with NOTICES1 All submissions to Commerce must be filed electronically using Enforcement and Compliance’s Antidumping Duty and Countervailing Duty Centralized Electronic Service System (ACCESS).14 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 from the petitioners, ‘‘Steel Propane Cylinders from the People’s Republic of China, Taiwan, and Thailand—Amended Scope Language,’’ dated June 11, 2018. 11 See 19 CFR 351.102(b)(21) (defining ‘‘factual information’’). 12 Because the 20th day is July 1, 2018, a Sunday, the filing deadline is Monday, July 2, 2018. 13 See 19 CFR 351.303(b). 14 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%20 Electronic%20Filling%20Procedures.pdf. VerDate Sep<11>2014 18:00 Jun 15, 2018 Jkt 244001 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. Consultations Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce notified representatives of the GOC of the receipt of the petition, and provided them the opportunity for consultations.15 The GOC did not request consultations.16 Determination of Industry Support for the Petition Section 702(b)(1) of the Act requires that a petition be filed on behalf of the domestic industry. Section 702(c)(4)(A) of the Act provides that a petition meets this requirement if the domestic producers or workers who support the petition account for: (i) At least 25 percent of the total production of the domestic like product; and (ii) more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of the Act provides that, if the petition does not establish support of domestic producers or workers accounting for more than 50 percent of the total production of the domestic like product, 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,17 they do so for different 15 See Department Letter re: Countervailing Duty Petition on Steel Propane Cylinders from the People’s Republic of China: Invitation for Consultations to Discuss the Countervailing Duty Petition, dated May 23, 2018. 16 See Memorandum, ‘‘Invitation to the Government of the People’s Republic of China for Consultations on the Steel Propane Cylinders Countervailing Duty Petition,’’ dated June 7, 2018. 17 See section 771(10) of the Act. PO 00000 Frm 00009 Fmt 4703 Sfmt 4703 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.18 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 investigation.19 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.20 In determining whether the petitioners have standing under section 702(c)(4)(A) of the Act, we considered the industry support data contained in the petition with reference to the domestic like product as defined in the ‘‘Scope of the Investigation,’’ in the Appendix to this notice. To establish industry support, the petitioners provided their own production of the domestic like product in 2017.21 The petitioners state that there are no other known producers of steel propane cylinders in the United States; therefore, 18 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)). 19 See Petition at Volume I at 10–12; see also General Issues Supplement at 13–18. 20 For a discussion of the domestic like product analysis as applied to this case and information regarding industry support, see Countervailing Duty Investigation Initiation Checklist: Steel Propane Cylinders from the People’s Republic of China (China CVD Initiation Checklist) at 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). This checklist is 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. 21 See Petition at Volume I at 3–4 and Exhibit GEN–2. E:\FR\FM\18JNN1.SGM 18JNN1 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices the petition is supported by 100 percent of the U.S. industry.22 Our review of the data provided in the petition and other information readily available to Commerce indicates that the petitioners have established industry support for the petition.23 First, the petition established support from domestic producers (or workers) accounting for more than 50 percent of the total production of the domestic like product and, as such, Commerce is not required to take further action in order to evaluate industry support (e.g., polling).24 Second, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(i) of the Act because the domestic producers (or workers) who support the petition account for at least 25 percent of the total production of the domestic like product.25 Finally, the domestic producers (or workers) have met the statutory criteria for industry support under section 702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) who support the petition account for more than 50 percent of the production of the domestic like product produced by that portion of the industry expressing support for, or opposition to, the petition.26 Accordingly, Commerce determines that the petition was filed on behalf of the domestic industry within the meaning of section 702(b)(1) of the Act. Commerce finds that the petitioners filed the petition 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 CVD investigation that they are requesting that Commerce initiate.27 Injury Test amozie on DSK3GDR082PROD with NOTICES1 Because China is ‘‘Subsidies Agreement Country’’ within the meaning of section 701(b) of the Act, section 701(a)(2) of the Act applies to this investigation. Accordingly, the ITC must determine whether imports of the subject merchandise from China materially injure, or threaten material injury to, a U.S. industry. 22 Id., at 3–4; Exhibit GEN–1; and Exhibit GEN– 2. For further discussion, see China CVD Initiation Checklist at Attachment II. 23 Id. 24 Id.; see also section 702(c)(4)(D) of the Act. 25 See China CVD Initiation Checklist at Attachment II. 26 Id. 27 Id. VerDate Sep<11>2014 18:00 Jun 15, 2018 Jkt 244001 Allegations and Evidence of Material Injury and Causation The petitioners allege that imports of the subject merchandise are benefitting from countervailable subsidies and that such imports are causing, or threaten to cause, material injury to the U.S. industry producing the domestic like product. In addition, the petitioners allege that subject imports exceed the negligibility threshold provided for under section 771(24)(A) of the Act.28 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.29 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.30 Initiation of CVD Investigation Based on our examination of the petition, we find that it meets the requirements of section 702 of the Act. We find that there is sufficient information to initiate a CVD investigation on all of the subsidy programs alleged in the petition. Therefore, we are initiating a CVD investigation to determine whether imports of steel propane cylinders from China benefit from countervailable subsidies conferred by the GOC. For a full discussion of the basis for our decision to initiate on each program, see the China CVD Initiation Checklist. A public version of the initiation checklist for this investigation is available on ACCESS. In accordance with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless postponed, we will make our preliminary determination no later than 65 days after the date of this initiation. 28 See Petition at Volume I at 13–14 and Exhibit GEN–1. 29 Id., at 9–25; Exhibit GEN–1; and Exhibits GEN– 7 through GEN–15; see also General Issues Supplement at 3 and Exhibit GEN–Supp–2. 30 See China CVD Initiation Checklist 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). PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 28191 Respondent Selection The petition named ten companies in China as producers/exporters of steel propane cylinders.31 Commerce intends to follow its standard practice for a CVD investigation and calculate companyspecific subsidy rates in this investigation. 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 mandatory respondents based on U.S. Customs and Border Protection (CBP) data for U.S. imports of steel propane cylinders from China during the POI under the appropriate Harmonized Tariff Schedule of the United States numbers listed in the ‘‘Scope of the Investigation,’’ in the Appendix. On June 6, 2018, Commerce released CBP data from China under Administrative Protective Order (APO) to all parties with access to information protected by APO and indicated that interested parties wishing to comment regarding the CBP data and respondent selection must do so within three business days of the publication date of the notice of initiation of this CVD investigation.32 Commerce will not accept rebuttal comments regarding the CBP data or respondent selection. 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 the Commerce’s website at http://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 date noted above. We intend to make our decisions regarding respondent selection within 20 days of publication of this notice. Distribution of Copies of the Petition In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 351.202(f), a copy of the public version of the petition was provided to the GOC via ACCESS. To the extent practicable, we will attempt to provide a copy of the public version of the petition to each named exporter as provided under 19 CFR 351.203(c)(2). 31 See Petition at Volume I at Exhibit GEN–7. Memorandum, ‘‘U.S. Customs Data for Respondent Selection,’’ dated June 6, 2018. 32 See E:\FR\FM\18JNN1.SGM 18JNN1 28192 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices ITC Notification We will notify the ITC of our initiation, as required by section 702(d) of the Act. Preliminary Determination by the ITC The ITC will preliminarily determine, within 45 days after the date on which the petition was filed, whether there is a reasonable indication that imports of steel propane cylinders from China is materially injuring, or threatening material injury to, a U.S. industry.33 A negative ITC determination will result in the investigation being terminated.34 Otherwise, the investigation will proceed according to statutory and regulatory time limits. amozie on DSK3GDR082PROD with NOTICES1 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 35 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.36 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 this investigation. 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 33 See section 703(a)(2) of the Act. section 703(a)(1) of the Act. 35 See 19 CFR 351.301(b). 36 See 19 CFR 351.301(b)(2). 34 See VerDate Sep<11>2014 18:00 Jun 15, 2018 Jkt 244001 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 http://www.gpo.gov/fdsys/ pkg/FR-2013-09-20/html/201322853.htm, prior to submitting factual information in this investigation. Certification Requirements Any party submitting factual information in an AD or CVD proceeding must certify to the accuracy and completeness of that information.37 Parties must use the certification formats provided in 19 CFR 351.303(g).38 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 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 this investigation 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 702 and 777(i) of the Act and 19 CFR 351.203(c). 37 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 http://enforcement.trade.gov/tlei/notices/factual_ info_final_rule_FAQ_07172013.pdf. 38 See PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 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 Investigation The merchandise covered by this investigation 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. This investigation also covers 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 investigation 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 E:\FR\FM\18JNN1.SGM 18JNN1 Federal Register / Vol. 83, No. 117 / Monday, June 18, 2018 / Notices 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 this investigation is properly classified under statistical reporting numbers 7311.00.0060 and 7311.00.0090 of the Harmonized Tariff Schedule of the United States (HTSUS). Although the HTSUS statistical reporting numbers are provided for convenience and customs purposes, the written description of the merchandise is dispositive. [FR Doc. 2018–12998 Filed 6–15–18; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–469–817] Ripe Olives From Spain: Final Affirmative Determination of Sales at Less Than Fair Value Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that ripe olives from Spain are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is April 1, 2016, through March 31, 2017. DATES: Applicable June 18, 2018. FOR FURTHER INFORMATION CONTACT: Catherine Cartsos, Bryan Hansen or Peter Zukowski, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–1757, (202) 482–3683 or (202) 482–0189, respectively. AGENCY: SUPPLEMENTARY INFORMATION: Background amozie on DSK3GDR082PROD with NOTICES1 On January 26, 2018, Commerce published the Preliminary Determination of this LTFV investigation in which Commerce found that ripe olives from Spain were sold at LTFV.1 For a summary of the events that have occurred since Commerce 1 See Ripe Olives from Spain: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Postponement of Final Determination, and Extension of Provisional Measures, 83 FR 3677 (January 26, 2018) and accompanying Preliminary Decision Memorandum (Preliminary Decision Memorandum) (collectively, Preliminary Determination). VerDate Sep<11>2014 18:00 Jun 15, 2018 Jkt 244001 28193 published the Preliminary Determination, as well as a full discussion of the issues raised by parties for this final determination, see the Issues and Decision Memorandum.2 rebuttal responses submitted to the record for this final determination, and accompanying discussion and analysis of all comments timely received, see the Issues and Decision Memorandum.7 Scope of the Investigation The product covered by this investigation is ripe olives from Spain. For a complete description of the scope of this investigation, see Appendix I. Verification As provided in section 782(i) of the Act, in February and March 2018, we conducted verification of the information reported by the mandatory respondents Aceitunas Guadalquivir S.L. (AG), Agro Sevilla Aceitunas S.COOP Andalusia (Agro Sevilla),8 and Angel Camacho Alimentacion S.L. (Camacho) for use in our final determination. We used standard verification procedures, including an examination of relevant accounting and production records and original source documents provided by the respondents. Scope Comments In accordance with the preamble to Commerce’s regulations,3 the Initiation Notice set aside a period of time for parties to raise issues regarding product coverage (i.e., scope). No interested party commented on the scope of the investigation as it appeared in the Initiation Notice during the scope comment period.4 In the context of supplemental questionnaire responses, two of the three mandatory respondents in the LTFV investigation reported sales of cocktail mixes but stated that they believe cocktail mixes are not within the scope of the investigation. In response, the petitioner 5 commented that the respondents cannot unilaterally determine whether cocktail mixes are outside the scope. For the Preliminary Determination, we did not modify the scope language as it appeared in the Initiation Notice. We included all sales of cocktail mixes and their associated costs in our margin calculations, and solicited further information from parties concerning cocktail mixes for purposes of the final determination. In the April 3, 2018, post-preliminary analysis we issued with respect to the scope of the investigation, we found that: (i) Ripe olives contained in cocktail mixes are in the scope, but that the remaining ingredients are not in the scope, and (ii) we clarified the scope by adding language concerning ripe olives contained in cocktail mixes.6 As a result of our analysis of comments received in response to this post-preliminary analysis, we have modified the scope of this investigation for this final determination. For a summary of the product coverage comments and 2 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Affirmative Determination in the Less than Fair Value Investigation of Ripe Olives from Spain,’’ dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). 3 See Antidumping Duties; Countervailing Duties, Final Rule, 62 FR 27296, 27323 (May 19, 1997). 4 See Ripe Olives from Spain: Initiation of LessThan-Fair-Value Investigation, 82 FR 33054 (July 19, 2017) (Initiation Notice). 5 The Coalition for Fair Trade on Ripe Olives. 6 See Memorandum, ‘‘Ripe Olives from Spain: Post-Preliminary Scope Clarification Decision Memorandum,’’ dated April 3, 2018. PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 Analysis of Comments Received All issues raised in the case and rebuttal briefs that were submitted by parties in this investigation are addressed in the Issues and Decision Memorandum. A list of these issues is attached to this notice as Appendix II. The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov, and to all parties in the Central Records Unit, room B8024 of the main Department of Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/ frn/. Changes Since the Preliminary Determination and Use of Partial Adverse Facts Available Based on our analysis of the comments received and our findings at verification, we made certain changes to the margin calculations for AG, Agro Sevilla and Camacho.9 In addition, we revised the margin calculations for Camacho to reflect the application of partial facts available with an adverse inference pursuant to section 776(b) of 7 See Issues and Decision Memorandum at Comment 1. 8 In the Preliminary Determination the company name was spelled incorrectly as Agro Sevilla Aceitunas S.COOP Anndalusia. The correct spelling of the company name is Agro Sevilla Aceitunas S.COOP Andalusia. 9 See the ‘‘Discussion of the Issues’’ section of the Issues and Decision Memorandum and the company-specific analysis memoranda dated concurrently with, and hereby incorporated by, this notice. E:\FR\FM\18JNN1.SGM 18JNN1

Agencies

[Federal Register Volume 83, Number 117 (Monday, June 18, 2018)]
[Notices]
[Pages 28189-28193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12998]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-087]


Steel Propane Cylinders From the People's Republic of China: 
Initiation of Countervailing Duty Investigation

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

DATES: Applicable June 11, 2018.

FOR FURTHER INFORMATION CONTACT: Samuel Brummitt, AD/CVD Operations, 
Office III, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone (202) 482-7851.

SUPPLEMENTARY INFORMATION:

The Petition

    On May 22, 2018, the U.S. Department of Commerce (Commerce) 
received a countervailing duty (CVD) petition concerning imports of 
steel propane cylinders from the People's Republic of China (China), 
and antidumping duty (AD) petitions concerning imports of steel propane 
cylinders from China, Taiwan, and Thailand filed in proper form on 
behalf of Worthington Industries and Manchester Tank & Equipment Co. 
(the petitioners).\1\ The petitioners are domestic producers of steel 
propane cylinders.\2\
---------------------------------------------------------------------------

    \1\ See 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 Petition,' herein, refer specifically to the CVD 
Petition, and all references to ``AD Petitions,'' herein refer 
specifically to the petitioners filed in the companion AD 
proceedings.
    \2\ See Petition at Volume I at 1-2.
---------------------------------------------------------------------------

    The petitioners amended the scope of the petitioners on May 24, 
2018.\3\ On May 25, 2018, Commerce requested supplemental information 
pertaining to certain areas of the petition.\4\ The petitioners filed 
responses to these requests on May 30, 2018.\5\ On May 30, 2018, the 
petitioners submitted certain revisions to the scope.\6\
---------------------------------------------------------------------------

    \3\ See 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 Department Letter re: Petition for the Imposition of 
Countervailing Duties on Imports of Steel Propane Cylinders from the 
People's Republic of China: Supplemental Questions, dated May 25, 
2018; and Department Letter re: 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, dated May 25, 2018 (Petition Supplemental 
Questions).
    \5\ See Petitioners' Letter, ``Steel Propane Cylinders from the 
People's Republic of China, Taiwan, and Thailand--Petitioners' 
Supplement to Volume I Relating to General Issues,'' dated May 30, 
2018 (General Issues Supplement); see also Petitioners' Letter, 
``Steel Propane Cylinders from the People's Republic of China, 
Taiwan, and Thailand--Petitioners' Amendment to Volume V Relating to 
the People's Republic of China Countervailing Duties,'' dated May 
30, 2018 (China CVD Petition Supplement).
    \6\ See General Issues Supplement at 11-12.
---------------------------------------------------------------------------

    In accordance with section 702(b)(1) of the Tariff Act of 1930, as 
amended (the Act), the petitioners allege that the Government of China 
(GOC) is providing countervailable subsidies, within the meaning of 
sections 701 and 771(5) of the Act, to producers of steel propane 
cylinders in China and imports of such products are materially 
injuring, or threatening material injury to, the domestic steel propane 
cylinders industry in the United States. Consistent with section 
702(b)(1) of the Act and 19 CFR 351.202(b), for those alleged programs 
on which we are initiating a CVD investigation, the petition is 
accompanied by information reasonably available to the petitioners 
supporting their allegations.
    Commerce finds that the petitioners filed the petition 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 this CVD investigation that the petitioners are 
requesting.\7\
---------------------------------------------------------------------------

    \7\ See ``Determination of Industry Support for the Petition'' 
section, infra.
---------------------------------------------------------------------------

Period of Investigation

    Because the petition was filed on May 22, 2018, the period of 
investigation is January 1, 2017, through December 31, 2017.\8\
---------------------------------------------------------------------------

    \8\ See 19 CFR 351.204(b)(2).
---------------------------------------------------------------------------

Scope of the Investigation

    The products covered by this investigation are steel propane 
cylinders from China. For a full description of the scope of the 
investigation, see the Appendix to this notice.

Comments on Scope of the Investigation

    During our review of the petition, Commerce issued questions to, 
and received responses from, the petitioners pertaining to the proposed 
scope to ensure that the scope language in the petition is an accurate 
reflection of the product for which the domestic industry is seeking 
relief.\9\ As a result of these exchanges, the scope of the petition 
was modified to clarify the description of merchandise covered by the 
petition. The description of the merchandise covered by this 
initiation, as described in the Appendix to this notice, reflects these 
clarifications.
---------------------------------------------------------------------------

    \9\ See Petition Supplemental Questions; see also General Issues 
Supplement at 11-12.
---------------------------------------------------------------------------

    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.\10\

[[Page 28190]]

Commerce will consider all comments received from interested parties 
and, if necessary, will consult with interested parties prior to the 
issuance of the preliminary determination. If scope comments include 
factual information,\11\ all such factual information should be limited 
to public information. To facilitate preparation of its questionnaires, 
Commerce requests that all interested parties submit comments within 20 
calendar days from the signature date of this notice. As such, scope 
comments must be filed by 5:00 p.m. Eastern Time (ET) on July 2, 
2018.\12\ Any rebuttal comments, which may include factual information, 
must be filed by 5:00 p.m. ET on July 12, 2018, which is 10 calendar 
days from the initial comments deadline.\13\
---------------------------------------------------------------------------

    \10\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble); 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.
    \11\ See 19 CFR 351.102(b)(21) (defining ``factual 
information'').
    \12\ Because the 20th day is July 1, 2018, a Sunday, the filing 
deadline is Monday, July 2, 2018.
    \13\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

    Commerce requests that any factual information the parties consider 
relevant to the scope of the investigation be submitted during this 
time period. However, if a party subsequently finds that additional 
factual information pertaining to the scope of the investigation 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).\14\ 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.
---------------------------------------------------------------------------

    \14\ 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.
---------------------------------------------------------------------------

Consultations

    Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce 
notified representatives of the GOC of the receipt of the petition, and 
provided them the opportunity for consultations.\15\ The GOC did not 
request consultations.\16\
---------------------------------------------------------------------------

    \15\ See Department Letter re: Countervailing Duty Petition on 
Steel Propane Cylinders from the People's Republic of China: 
Invitation for Consultations to Discuss the Countervailing Duty 
Petition, dated May 23, 2018.
    \16\ See Memorandum, ``Invitation to the Government of the 
People's Republic of China for Consultations on the Steel Propane 
Cylinders Countervailing Duty Petition,'' dated June 7, 2018.
---------------------------------------------------------------------------

Determination of Industry Support for the Petition

    Section 702(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 702(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, 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,\17\ 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.\18\
---------------------------------------------------------------------------

    \17\ See section 771(10) of the Act.
    \18\ 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 investigation.\19\ 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.\20\
---------------------------------------------------------------------------

    \19\ See Petition at Volume I at 10-12; see also General Issues 
Supplement at 13-18.
    \20\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Countervailing Duty Investigation Initiation Checklist: Steel 
Propane Cylinders from the People's Republic of China (China CVD 
Initiation Checklist) at 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). This checklist is 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.
---------------------------------------------------------------------------

    In determining whether the petitioners have standing under section 
702(c)(4)(A) of the Act, we considered the industry support data 
contained in the petition with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the Appendix to 
this notice. To establish industry support, the petitioners provided 
their own production of the domestic like product in 2017.\21\ The 
petitioners state that there are no other known producers of steel 
propane cylinders in the United States; therefore,

[[Page 28191]]

the petition is supported by 100 percent of the U.S. industry.\22\
---------------------------------------------------------------------------

    \21\ See Petition at Volume I at 3-4 and Exhibit GEN-2.
    \22\ Id., at 3-4; Exhibit GEN-1; and Exhibit GEN-2. For further 
discussion, see China CVD Initiation Checklist at Attachment II.
---------------------------------------------------------------------------

    Our review of the data provided in the petition and other 
information readily available to Commerce indicates that the 
petitioners have established industry support for the petition.\23\ 
First, the petition established support from domestic producers (or 
workers) accounting for more than 50 percent of the total production of 
the domestic like product and, as such, Commerce is not required to 
take further action in order to evaluate industry support (e.g., 
polling).\24\ Second, the domestic producers (or workers) have met the 
statutory criteria for industry support under section 702(c)(4)(A)(i) 
of the Act because the domestic producers (or workers) who support the 
petition account for at least 25 percent of the total production of the 
domestic like product.\25\ Finally, the domestic producers (or workers) 
have met the statutory criteria for industry support under section 
702(c)(4)(A)(ii) of the Act because the domestic producers (or workers) 
who support the petition account for more than 50 percent of the 
production of the domestic like product produced by that portion of the 
industry expressing support for, or opposition to, the petition.\26\ 
Accordingly, Commerce determines that the petition was filed on behalf 
of the domestic industry within the meaning of section 702(b)(1) of the 
Act.
---------------------------------------------------------------------------

    \23\ Id.
    \24\ Id.; see also section 702(c)(4)(D) of the Act.
    \25\ See China CVD Initiation Checklist at Attachment II.
    \26\ Id.
---------------------------------------------------------------------------

    Commerce finds that the petitioners filed the petition 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 CVD investigation that they are 
requesting that Commerce initiate.\27\
---------------------------------------------------------------------------

    \27\ Id.
---------------------------------------------------------------------------

Injury Test

    Because China is ``Subsidies Agreement Country'' within the meaning 
of section 701(b) of the Act, section 701(a)(2) of the Act applies to 
this investigation. Accordingly, the ITC must determine whether imports 
of the subject merchandise from China materially injure, or threaten 
material injury to, a U.S. industry.

Allegations and Evidence of Material Injury and Causation

    The petitioners allege that imports of the subject merchandise are 
benefitting from countervailable subsidies and that such imports are 
causing, or threaten to cause, material injury to the U.S. industry 
producing the domestic like product. In addition, the petitioners 
allege that subject imports exceed the negligibility threshold provided 
for under section 771(24)(A) of the Act.\28\
---------------------------------------------------------------------------

    \28\ See Petition at Volume I 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.\29\ 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.\30\
---------------------------------------------------------------------------

    \29\ Id., at 9-25; Exhibit GEN-1; and Exhibits GEN-7 through 
GEN-15; see also General Issues Supplement at 3 and Exhibit GEN-
Supp-2.
    \30\ See China CVD Initiation Checklist 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).
---------------------------------------------------------------------------

Initiation of CVD Investigation

    Based on our examination of the petition, we find that it meets the 
requirements of section 702 of the Act. We find that there is 
sufficient information to initiate a CVD investigation on all of the 
subsidy programs alleged in the petition. Therefore, we are initiating 
a CVD investigation to determine whether imports of steel propane 
cylinders from China benefit from countervailable subsidies conferred 
by the GOC. For a full discussion of the basis for our decision to 
initiate on each program, see the China CVD Initiation Checklist. A 
public version of the initiation checklist for this investigation is 
available on ACCESS.
    In accordance with section 703(b)(1) of the Act and 19 CFR 
351.205(b)(1), unless postponed, we will make our preliminary 
determination no later than 65 days after the date of this initiation.

Respondent Selection

    The petition named ten companies in China as producers/exporters of 
steel propane cylinders.\31\ Commerce intends to follow its standard 
practice for a CVD investigation and calculate company-specific subsidy 
rates in this investigation. 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 mandatory respondents based on U.S. Customs and 
Border Protection (CBP) data for U.S. imports of steel propane 
cylinders from China during the POI under the appropriate Harmonized 
Tariff Schedule of the United States numbers listed in the ``Scope of 
the Investigation,'' in the Appendix.
---------------------------------------------------------------------------

    \31\ See Petition at Volume I at Exhibit GEN-7.
---------------------------------------------------------------------------

    On June 6, 2018, Commerce released CBP data from China under 
Administrative Protective Order (APO) to all parties with access to 
information protected by APO and indicated that interested parties 
wishing to comment regarding the CBP data and respondent selection must 
do so within three business days of the publication date of the notice 
of initiation of this CVD investigation.\32\ Commerce will not accept 
rebuttal comments regarding the CBP data or respondent selection. 
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 the Commerce's website at http://enforcement.trade.gov/apo.
---------------------------------------------------------------------------

    \32\ See Memorandum, ``U.S. Customs Data for Respondent 
Selection,'' dated June 6, 2018.
---------------------------------------------------------------------------

    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 date noted above. We intend 
to make our decisions regarding respondent selection within 20 days of 
publication of this notice.

Distribution of Copies of the Petition

    In accordance with section 702(b)(4)(A)(i) of the Act and 19 CFR 
351.202(f), a copy of the public version of the petition was provided 
to the GOC via ACCESS. To the extent practicable, we will attempt to 
provide a copy of the public version of the petition to each named 
exporter as provided under 19 CFR 351.203(c)(2).

[[Page 28192]]

ITC Notification

    We will notify the ITC of our initiation, as required by section 
702(d) of the Act.

Preliminary Determination by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the petition was filed, whether there is a reasonable 
indication that imports of steel propane cylinders from China is 
materially injuring, or threatening material injury to, a U.S. 
industry.\33\ A negative ITC determination will result in the 
investigation being terminated.\34\ Otherwise, the investigation will 
proceed according to statutory and regulatory time limits.
---------------------------------------------------------------------------

    \33\ See section 703(a)(2) of the Act.
    \34\ See section 703(a)(1) of the Act.
---------------------------------------------------------------------------

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 \35\ 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.\36\ 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 this 
investigation.
---------------------------------------------------------------------------

    \35\ See 19 CFR 351.301(b).
    \36\ See 19 CFR 351.301(b)(2).
---------------------------------------------------------------------------

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 http://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to 
submitting factual information in this investigation.

Certification Requirements

    Any party submitting factual information in an AD or CVD proceeding 
must certify to the accuracy and completeness of that information.\37\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\38\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \37\ See section 782(b) of the Act.
    \38\ 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 
http://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305. On 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 this investigation 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 702 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 Investigation

    The merchandise covered by this investigation 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.
    This investigation also covers 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 investigation 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

[[Page 28193]]

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 this investigation is properly 
classified under statistical reporting numbers 7311.00.0060 and 
7311.00.0090 of the Harmonized Tariff Schedule of the United States 
(HTSUS). Although the HTSUS statistical reporting numbers are 
provided for convenience and customs purposes, the written 
description of the merchandise is dispositive.

[FR Doc. 2018-12998 Filed 6-15-18; 8:45 am]
BILLING CODE 3510-DS-P