Steel Propane Cylinders From the People's Republic of China: Initiation of Countervailing Duty Investigation, 28189-28193 [2018-12998]
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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:
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AGENCY:
The Petition
On May 22, 2018, the U.S.
Department of Commerce (Commerce)
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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.
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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
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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
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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.
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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.
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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.
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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
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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.
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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).
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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 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 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
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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.
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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 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
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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 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
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
38 See
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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 https://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 https://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.
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\33\ See section 703(a)(2) of the Act.
\34\ See section 703(a)(1) of the Act.
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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 \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.
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\35\ See 19 CFR 351.301(b).
\36\ 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 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.
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\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
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 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