Refillable Stainless Steel Kegs From the People's Republic of China, the Federal Republic of Germany, and Mexico: Initiation of Less-Than-Fair-Value Investigations, 52195-52201 [2018-22482]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 83, Number 200 (Tuesday, October 16, 2018)]
[Notices]
[Pages 52195-52201]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22482]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-093, A-428-846, A-201-849]


Refillable Stainless Steel Kegs From the People's Republic of 
China, the Federal Republic of Germany, and Mexico: Initiation of Less-
Than-Fair-Value Investigations

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

DATES: Applicable October 10, 2018.

FOR FURTHER INFORMATION CONTACT: Thomas Schauer at (202) 482-0410 and 
Aimee Phelan at (202) 482-0697 (the

[[Page 52196]]

People's Republic of China (China)); Michael A. Romani (202) 482-0198 
and Andre Gziryan (202) 482-2201 (the Federal Republic of Germany 
(Germany)); and, Allison Hollander (202) 482-2805 (Mexico); AD/CVD 
Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

The Petitions

    On September 20, 2018, the U.S. Department of Commerce (Commerce) 
received antidumping duty (AD) Petitions concerning imports of 
refillable stainless steel kegs (kegs) from China, Germany, and Mexico, 
filed in proper form on behalf of the American Keg Company LLC (the 
petitioner), a domestic producer of kegs.\1\ The AD Petitions were 
accompanied by a countervailing duty (CVD) Petition concerning imports 
of kegs from China.\2\
---------------------------------------------------------------------------

    \1\ See the petitioner's Letter, ``Petitions for the Imposition 
of Antidumping Duties on Imports of Refillable Stainless Steel Kegs 
from Germany, Mexico, and the People's Republic of China and 
Countervailing Duties on Imports of Refillable Stainless Steel Kegs 
from the People's Republic of China,'' dated June 20, 2018 
(Petitions).
    \2\ See the Petitions at Volume V.
---------------------------------------------------------------------------

    From September 25, to October 1, 2018, we requested information 
from the petitioner pertaining to the scope of the investigations and 
certain allegations contained within the petitions.\3\ The petitioner 
supplemented the record in response to these requests.\4\
---------------------------------------------------------------------------

    \3\ See Commerce Letter, ``Petition for the Imposition of 
Antidumping Duties on Imports of Refillable Stainless Steel Kegs 
from the People's Republic of China, the Federal Republic of 
Germany, and Mexico: Supplemental Questions,'' dated September 25, 
2018; and, ``Petitions for the Imposition of Antidumping Duties on 
Imports of Refillable Stainless Steel Kegs from the People's 
Republic of China, the Federal Republic of Germany, and Mexico, and 
Countervailing Duty Imports from the People's Republic of China: 
Supplemental Questions,'' dated September 25, 2018. See also, 
Commerce Letters including a questionnaire as an addenda thereto 
both titled ``Petitions for the Imposition of Antidumping Duties on 
Imports of Refillable Stainless Steel Kegs from the People's 
Republic of China: Supplemental Questions,'' dated September 25 and 
26, 2018, respectively; ``Petition for the Imposition of Antidumping 
Duties on Imports of Refillable Stainless Steel Kegs from Germany: 
Supplemental Questions,'' dated September 25, 2018; and, Commerce 
Letters including a questionnaire as an addenda thereto both titled 
``Petitions for the Imposition of Antidumping Duties on Imports of 
Refillable Stainless Steel Kegs from the People's Republic of 
Mexico: Supplemental Questions,'' dated September 25 and 26, 2018, 
respectively. See also Commerce Memoranda, ``Petition for the 
Imposition of Antidumping Duties on Imports of Refillable Stainless 
Steel Kegs from the People's Republic of China: Phone Call with the 
Counsel for the Petitioner,'' dated October 1, 2018; ``Petition for 
the Imposition of Antidumping Duties on Imports of Refillable 
Stainless Steel Kegs from the Federal Republic of Germany: Phone 
Call with the Counsel for the Petitioner,'' dated October 1, 2018; 
and, ``Petition for the Imposition of Antidumping Duties on Imports 
of Refillable Stainless Steel Kegs from Mexico: Phone Call with the 
Counsel for the Petitioner,'' dated October 1, 2018.
    \4\ See the petitioner's Letters, ``Supplement to the Petition 
for the Imposition of Antidumping Duties on Imports of Refillable 
Stainless Steel Kegs from China: Resubmission of Response to the 
Department's Supplemental Questions,'' dated September 27, 2018; 
and, ``Supplement to the Petition for the Imposition of Antidumping 
Duties on Imports of Refillable Stainless Steel Kegs from Mexico and 
Germany: Resubmission of Response to the Department's Supplemental 
Questions,'' dated September 28, 2018 (General Issues Supplement). 
See also the petitioner's Letters, ``Supplement to the Petition for 
the Imposition of Antidumping Duties on Imports of Refillable 
Stainless Steel Kegs from China: Resubmission of Response to the 
Department's Supplemental Questions,'' dated October 2, 2018; 
``Supplement to the Petition for the Imposition of Antidumping 
Duties on Imports of Refillable Stainless Steel Kegs from Germany: 
Resubmission of Response to the Department's Supplemental 
Questions,'' dated October 2, 2018; and, ``Supplement to the 
Petition for the Imposition of Antidumping Duties on Imports of 
Refillable Stainless Steel Kegs from Mexico: Resubmission of 
Response to the Department's Supplemental Questions,'' dated October 
2, 2018.
---------------------------------------------------------------------------

    In accordance with section 732(b) of the Tariff Act of 1930, as 
amended (the Act), the petitioner alleges that imports of kegs from 
China, Germany, and Mexico are being, or are likely to be, sold in the 
United States at less than fair value within the meaning of section 731 
of the Act, and that such imports are materially injuring, or 
threatening material injury to, the domestic industry producing kegs in 
the United States. Consistent with section 732(b)(1) of the Act, the 
Petitions are accompanied by information reasonably available to the 
petitioner supporting its allegations.
    Commerce finds that the petitioner filed the Petitions on behalf of 
the domestic industry because the petitioner is an interested party as 
defined in section 771(9)(C) of the Act. Commerce also finds that the 
petitioner demonstrated sufficient industry support with respect to the 
initiation of the AD investigations that the petitioner is 
requesting.\5\
---------------------------------------------------------------------------

    \5\ See the ``Determination of Industry Support for the 
Petition'' section, infra.
---------------------------------------------------------------------------

Period of Investigations

    Because the Petitions were filed on September 20, 2018, pursuant to 
19 CFR 351.204(b)(1), the period of investigation (POI) for the Germany 
and Mexico investigations is July 1, 2017, through June 30, 2018. 
Because China is a non-market economy (NME) country, pursuant to 19 CFR 
351.204(b)(1), the POI is January 1, 2018, through June 30, 2018.

Scope of the Investigations

    The product covered by these investigations are kegs from China, 
Germany, and Mexico. For a full description of the scope of these 
investigations, see the Appendix to this notice.

Comments on Scope of the Investigations

    During our review of the Petitions, we contacted the petitioners 
regarding the proposed scope to ensure that the scope language in the 
Petitions is an accurate reflection of the products for which the 
domestic industry is seeking relief.\6\ As a result, the scope of the 
Petitions was modified to clarify the description of merchandise 
covered by the Petitions. The description of the merchandise covered by 
these investigations, as described in the Appendix to this notice, 
reflects these clarifications.
---------------------------------------------------------------------------

    \6\ See General Issues Supplement, at 1-9; see also Revised 
Scope, at Exhibit 1.
---------------------------------------------------------------------------

    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).\7\ Commerce will consider all comments 
received from interested parties and, if necessary, will consult with 
interested parties prior to the issuance of the preliminary 
determinations. If scope comments include factual information,\8\ all 
such factual information should be limited to public information. To 
facilitate preparation of its questionnaires, Commerce requests that 
all interested parties submit scope comments by 5:00 p.m. Eastern Time 
(ET) on October 30, 2018, which is 20 calendar days from the signature 
date of this notice.\9\ Any rebuttal comments, which may include 
factual information, must be filed by 5:00 p.m. ET on November 9, 2018, 
which is 10 calendar days from the initial comments deadline.
---------------------------------------------------------------------------

    \7\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \8\ See 19 CFR 351.102(b)(21) (defining ``factual 
information''). See also the petitioner's Letter, ``Supplement to 
the Petition for the Imposition of Antidumping Duties on Imports of 
Refillable Stainless Steel kegs from China: Response to the 
Department's Supplemental Questions,'' dated September 27, 2018, at 
General Issues--1.
    \9\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

    Commerce requests that any factual information parties consider 
relevant to the scope of the investigations be submitted during this 
period. However, if a party subsequently finds that additional factual 
information pertaining to the scope of the investigations may be 
relevant, the party may contact Commerce and request permission to 
submit the additional

[[Page 52197]]

information. All such submissions must be filed on the records of the 
concurrent AD and CVD investigations.

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).\10\ 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.
---------------------------------------------------------------------------

    \10\ 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.
---------------------------------------------------------------------------

Comments on Product Characteristics for AD Questionnaires

    Commerce is providing interested parties an opportunity to comment 
on the appropriate physical characteristics of kegs to be reported in 
response to Commerce's AD questionnaires. This information will be used 
to identify the key physical characteristics of the subject merchandise 
in order to report the relevant factors of production accurately, as 
well as, to develop appropriate product-comparison criteria.
    Interested parties may provide any information or comments that 
they feel are relevant to the development of an accurate list of 
physical characteristics. Specifically, they may provide comments as to 
which characteristics are appropriate to use as: (1) General product 
characteristics, and (2) product comparison criteria. We note that it 
is not always appropriate to use all product characteristics as product 
comparison criteria. We base product comparison criteria on meaningful 
commercial differences among products. In other words, although there 
may be some physical product characteristics utilized by manufacturers 
to describe kegs, it may be that only a select few product 
characteristics take into account commercially meaningful physical 
characteristics. In addition, interested parties may comment on the 
order in which the physical characteristics should be used in matching 
products. Generally, Commerce attempts to list the most important 
physical characteristics first and the least important characteristics 
last.
    In order to consider the suggestions of interested parties in 
developing and issuing the AD questionnaires, all product 
characteristics comments must be filed by 5:00 p.m. ET on October 30, 
2018, which is 20 calendar days from the signature date of this 
notice.\11\ Any rebuttal comments must be filed by 5:00 p.m. ET on 
November 9, 2018. All comments and submissions to Commerce must be 
filed electronically using ACCESS, as explained above, on the record of 
each of the AD investigations.
---------------------------------------------------------------------------

    \11\ See 19 CFR 351.303(b).
---------------------------------------------------------------------------

Determination of Industry Support for the Petitions

    Section 732(b)(1) of the Act requires that a petition be filed on 
behalf of the domestic industry. Section 732(c)(4)(A) of the Act 
provides that a petition meets this requirement if the domestic 
producers or workers who support the petition account for: (i) At least 
25 percent of the total production of the domestic like product; and 
(ii) more than 50 percent of the production of the domestic like 
product produced by that portion of the industry expressing support 
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of 
the Act provides that, if the petition does not establish support of 
domestic producers or workers accounting for more than 50 percent of 
the total production of the domestic like product, Commerce shall: (i) 
Poll the industry or rely on other information in order to determine if 
there is support for the petition, as required by subparagraph (A); or 
(ii) determine industry support using a statistically valid sampling 
method to poll the ``industry.''
    Section 771(4)(A) of the Act defines the ``industry'' as the 
producers as a whole of a domestic like product. Thus, to determine 
whether a petition has the requisite industry support, the statute 
directs Commerce to look to producers and workers who produce the 
domestic like product. The International Trade Commission (ITC), which 
is responsible for determining whether ``the domestic industry'' has 
been injured, must also determine what constitutes a domestic like 
product in order to define the industry. While both Commerce and the 
ITC must apply the same statutory definition regarding the domestic 
like product,\12\ 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.\13\
---------------------------------------------------------------------------

    \12\ See section 771(10) of the Act.
    \13\ 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 
petitions).
    With regard to the domestic like product, the petitioner does not 
offer a definition of the domestic like product distinct from the scope 
of the investigations.\14\ Based on our analysis of the information 
submitted on the record, we have determined that kegs, as defined in 
the scope, constitute a single domestic like product, and we have 
analyzed industry support in terms of that domestic like product.\15\
---------------------------------------------------------------------------

    \14\ See Volume I of the Petitions, at 33-36.
    \15\ For a discussion of the domestic like product analysis as 
applied to this case and information regarding industry support, see 
Antidumping Duty Investigation Initiation Checklists: Refillable 
Stainless Steel Kegs from the People's Republic of China (China AD 
Initiation Checklist); Refillable Stainless Steel Kegs from the 
Federal Republic of Germany (Germany AD Initiation Checklist); and, 
Refillable Stainless Steel Kegs from Mexico (Mexico AD Initiation 
Checklist), at Attachment II, ``Analysis of Industry Support for the 
Antidumping and Countervailing Duty Petitions Covering Refillable 
Stainless Steel Kegs from the People's Republic of China, the 
Federal Republic of Germany, and Mexico'' (Attachment II). These 
checklists are dated concurrently with this notice and are 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 petitioner has standing under section 
732(c)(4)(A) of the Act, we considered the industry support data 
contained in the Petitions with reference to the domestic like product 
as defined in the ``Scope of the Investigation,'' in the Appendix to 
this notice. To establish industry support, the petitioner provided its 
own production of the domestic like product in 2017.\16\ The petitioner 
states that there are no other known producers of kegs in the United 
States; therefore, the

[[Page 52198]]

Petitions are supported by 100 percent of the U.S. industry.\17\
---------------------------------------------------------------------------

    \16\ See Volume I of the Petitions, at 49 and 51.
    \17\ Id., at 5-6 and Exhibit GEN-10; see also General Issues 
Supplement, at 10-18 and Exhibit SUPP-GEN-6.
---------------------------------------------------------------------------

    Our review of the data provided in the Petitions, the General 
Issues Supplement, and other information readily available to Commerce 
indicates that the petitioner has established industry support for the 
Petitions.\18\ First, the Petitions 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).\19\ Second, the domestic producers (or workers) have 
met the statutory criteria for industry support under section 
732(c)(4)(A)(i) of the Act because the domestic producers (or workers) 
who support the Petitions account for at least 25 percent of the total 
production of the domestic like product.\20\ Finally, the domestic 
producers (or workers) have met the statutory criteria for industry 
support under section 732(c)(4)(A)(ii) of the Act because the domestic 
producers (or workers) who support the Petitions account for more than 
50 percent of the production of the domestic like product produced by 
that portion of the industry expressing support for, or opposition to, 
the Petitions.\21\ Accordingly, Commerce determines that the Petitions 
were filed on behalf of the domestic industry within the meaning of 
section 732(b)(1) of the Act.
---------------------------------------------------------------------------

    \18\ Id.
    \19\ Id.; see also section 732(c)(4)(D) of the Act.
    \20\ See China AD Initiation Checklist, at Attachment II; 
Germany AD Initiation Checklist, at Attachment II; and Mexico AD 
Initiation Checklist, at Attachment II.
    \21\ Id.
---------------------------------------------------------------------------

    Commerce finds that the petitioner filed the Petitions on behalf of 
the domestic industry because it is an interested party as defined in 
section 771(9)(C) of the Act, and it has demonstrated sufficient 
industry support with respect to the AD investigations that it is 
requesting that Commerce initiate.\22\
---------------------------------------------------------------------------

    \22\ Id.
---------------------------------------------------------------------------

Allegations and Evidence of Material Injury and Causation

    The petitioner alleges that the U.S. industry producing the 
domestic like product is being materially injured, or is threatened 
with material injury, by reason of the imports of the subject 
merchandise sold at less than normal value (NV). In addition, the 
petitioner alleges that subject imports exceed the negligibility 
threshold provided for under section 771(24)(A) of the Act.\23\
---------------------------------------------------------------------------

    \23\ See Volume I of the Petitions, at 37-38.
---------------------------------------------------------------------------

    The petitioner contends that the industry's injured condition is 
illustrated by a significant volume of subject imports and an 
increasing share of subject imports relative to total imports; 
underselling and price depression or suppression; recent declines in 
production and capacity utilization; negative effects on the domestic 
industry's investment, cash flows, and inventories; decline in the 
domestic industry's financial performance; and lost sales and 
revenues.\24\ We have assessed the allegations and supporting evidence 
regarding material injury, threat of material injury, causation, as 
well as cumulation, and we have determined that these allegations are 
properly supported by adequate evidence, and meet the statutory 
requirements for initiation.\25\
---------------------------------------------------------------------------

    \24\ Id. at 23-33, 37-53, and Exhibit GEN-35; see also General 
Issues Supplement, at 18-33 and Exhibit SUPP GEN-7.
    \25\ See China AD Initiation Checklist, at Attachment III, 
Analysis of Allegations and Evidence of Material Injury and 
Causation for the Antidumping and Countervailing Duty Petitions 
Covering Refillable Stainless Steel Kegs from the People's Republic 
of China, the Federal Republic of Germany, and Mexico (Attachment 
III); Germany AD Initiation Checklist, at Attachment III; and Mexico 
AD Initiation Checklist, at Attachment III; China AD Initiation 
Checklist, at Attachment III.
---------------------------------------------------------------------------

Allegations of Sales at Less Than Fair Value

    The following is a description of the allegations of sales at less 
than fair value that are the basis for Commerce's decision to initiate 
AD investigations of imports of kegs from China, Germany, and Mexico. 
The sources of data for the deductions and adjustments relating to U.S. 
price and NV are discussed in greater detail in the country-specific AD 
Initiation Checklists.

Export Price

    For China, the petitioner based U.S. export price (EP) on a price 
quote for kegs produced in, and exported from China and offered for 
sale in the United States.\26\ For Germany, the petitioner based EP on 
a price quote for kegs produced in, and exported from, Germany and 
offered for sale in the United States.\27\ For Mexico, the petitioner 
based EP on the average unit value for exports of kegs from Mexico to 
the U.S. market using data compiled by Descartes Datamyne.\28\ Where 
appropriate, the petitioner made deductions from U.S. price for foreign 
brokerage and handling, foreign inland freight, and ocean freight, 
consistent with the terms of sale as applicable.\29\
---------------------------------------------------------------------------

    \26\ See China AD Initiation Checklist.
    \27\ See Germany AD Initiation Checklist.
    \28\ See Mexico AD Initiation Checklist.
    \29\ See China AD Initiation Checklist, Germany AD Initiation 
Checklist, and Mexico AD Initiation Checklist.
---------------------------------------------------------------------------

Normal Value

    For Germany and Mexico, the petitioner was unable to obtain home 
market or third-country prices for kegs; therefore, the petitioner 
calculated NV based on constructed value (CV) pursuant to section 
773(a)(4) of the Act. See the section ``Normal Value Based on 
Constructed Value'' below.\30\
---------------------------------------------------------------------------

    \30\ In accordance with section 505(a) of the Trade Preferences 
Extension Act of 2015, amending section 773(b)(2) of the Act, for 
these investigations, Commerce will request information necessary to 
calculate the CV and cost of production (COP) to determine whether 
there are reasonable grounds to believe or suspect that sales of the 
foreign like product have been made at prices that represent less 
than the COP of the product. Commerce no longer requires a COP 
allegation to conduct this analysis.
---------------------------------------------------------------------------

    With respect to China, Commerce considers China to be an NME 
country.\31\ In accordance with section 771(18)(C)(i) of the Act, any 
determination that a foreign country is an NME country shall remain in 
effect until revoked by Commerce. Therefore, we continue to treat China 
as an NME country for purposes of the initiation of this investigation. 
Accordingly, NV in China is appropriately based on factors of 
production (FOPs) valued in a surrogate market economy country, in 
accordance with section 773(c) of the Act.\32\ In the course of this 
investigation, all parties, and the public, will have the opportunity 
to provide relevant information related to the granting of separate 
rates to individual exporters.
---------------------------------------------------------------------------

    \31\ See Antidumping Duty Investigation of Certain Aluminum Foil 
from the People's Republic of China: Affirmative Preliminary 
Determination of Sales at Less-Than-Fair Value and Postponement of 
Final Determination, 82 FR 50858, 50861 (November 2, 2017), and 
accompanying decision memorandum, China's Status as a Non-Market 
Economy, unchanged in Certain Aluminum Foil from the People's 
Republic of China: Final Determination of Sales at Less Than Fair 
Value, 83 FR 9282 (March 5, 2018).
    \32\ See China AD Initiation Checklist.
---------------------------------------------------------------------------

    The petitioner claims that Brazil is an appropriate surrogate 
country for China because it is a market economy country that is at a 
level of economic development comparable to that of China and it is a 
significant producer of comparable merchandise.\33\ The petitioner 
provided publicly available information from Brazil to value all 
FOPs.\34\ Therefore, based on the information provided by the 
petitioner,

[[Page 52199]]

we determine that it is appropriate to use Brazil as the primary 
surrogate country for initiation purposes.
---------------------------------------------------------------------------

    \33\ See Volume II of the Petitions, at 4-5 and Exhibit PRC AD-
5.
    \34\ Id. at 5-7 and Exhibits PRC-AD-3 and PRC-AD-9.
---------------------------------------------------------------------------

    Interested parties will have the opportunity to submit comments 
regarding surrogate country selection and, pursuant to 19 CFR 
351.301(c)(3)(i), will be provided an opportunity to submit publicly 
available information to value FOPs within 30 days before the scheduled 
date of the preliminary determination.

Factors of Production

    Based on its assertion that information regarding the FOPs and 
volume of inputs consumed by Chinese producers/exporters of kegs was 
not reasonably available, the petitioner used its own consumption rates 
for \1/2\ barrel kegs to estimate the Chinese manufacturers' FOPs.\35\ 
The petitioner valued the estimated FOPs using surrogate values from 
Brazil reported in U.S. dollars, as noted above.\36\ The petitioner 
calculated factory overhead, SG&A, and profit based on the experience 
of a Brazilian producer of steel wheels.\37\
---------------------------------------------------------------------------

    \35\ See China AD Initiation Checklist.
    \36\ Id.
    \37\ Id.
---------------------------------------------------------------------------

Normal Value Based on Constructed Value

    For Germany and Mexico, pursuant to section 773(a)(4) of the Act, 
the petitioner calculated cost of manufacture (COM) using its own input 
FOPs and usage rates for raw materials, labor, energy, packing, and a 
scrap offset.\38\ The input FOPs were valued using publicly available 
data on country-specific costs.\39\ Specifically, the prices for raw 
material and packing inputs were based on publicly available import 
data for Germany and Mexico, respectively.\40\ Labor and energy costs 
were valued using publicly available sources for Germany and Mexico, 
respectively.\41\ The petitioner calculated factory overhead, SG&A, and 
profit for Germany based on the experience of a German steel 
producer.\42\ The petitioner calculated factory overhead, SG&A, and 
profit for Mexico based on the experience of a Mexican producer of 
stainless steel sheets, and steel products.\43\
---------------------------------------------------------------------------

    \38\ See section 773(b)(3) of the Act. See also Germany AD 
Initiation Checklist and Mexico AD Checklist.
    \39\ See Germany AD Initiation Checklist and Mexico AD 
Initiation Checklist.
    \40\ Id.
    \41\ Id.
    \42\ Id.
    \43\ See Germany AD Initiation Checklist and Mexico AD 
Initiation Checklist.
---------------------------------------------------------------------------

Fair Value Comparisons

    Based on the data provided by the petitioner, there is reason to 
believe that imports of kegs from China, Germany, and Mexico are being, 
or are likely to be, sold in the United States at less than fair value. 
Based on comparisons of EP to NV in accordance with sections 772 and 
773 of the Act, the estimated dumping margins for kegs for each of the 
countries covered by this initiation are as follows: (1) China--204.42 
percent; \44\ (2) Germany--72.80 percent; \45\ and (3) Mexico--18.48 
percent.\46\
---------------------------------------------------------------------------

    \44\ See China AD Initiation Checklist.
    \45\ See Germany AD Initiation Checklist.
    \46\ See Mexico AD Initiation Checklist.
---------------------------------------------------------------------------

Initiation of Less-Than-Fair-Value Investigations

    Based upon the examination of the Petitions, we find that the 
Petitions meet the requirements of section 732 of the Act. Therefore, 
we are initiating AD investigations to determine whether imports of 
kegs from China, Germany, and Mexico are being, or are likely to be, 
sold in the United States at less than fair value. In accordance with 
section 733(b)(1)(A) of the Act and 19 CFR 351.205(b)(1), unless 
postponed, we will make our preliminary determination no later than 140 
days after the date of this initiation.

Respondent Selection

    The petitioner identified 26 producers/exporters as accounting for 
the majority of exports of kegs to the United States from China.\47\ In 
accordance with our standard practice for respondent selection in AD 
cases involving NME countries, for China we intend to issue quantity 
and value (Q&V) questionnaires to producers/exporters of merchandise 
subject to this investigation. In the event Commerce determines that it 
cannot individually examine each company, where appropriate, Commerce 
intends to select mandatory respondents based on the responses received 
to its Q&V questionnaire. Commerce will request Q&V information from 
known exporters and producers identified with complete contact 
information in the Petition.
---------------------------------------------------------------------------

    \47\ See Petitions Volume I at Exhibit GEN-23.
---------------------------------------------------------------------------

    The petitioner identified three and five producers/exporters as 
accounting for the majority of exports of kegs to the United States 
from Germany and Mexico, respectively.\48\ Following standard practice 
in AD investigations involving market economy countries, Commerce would 
normally select respondents based on U.S. Customs and Border Protection 
(CBP) data for imports under the appropriate HTSUS numbers listed in 
the scope of the investigations. However, for these investigations, the 
HTSUS numbers under which the subject merchandise would enter, 
i.e.,7310.10.0010, 7310.10.0050, 7310.29.0025, and 7310.29.0050, are 
basket categories containing a wide variety of manufactured steel 
products unrelated to kegs, and thus, in this case we cannot rely on 
CBP entry data for respondent selection purposes. Accordingly, we 
intend to issue Q&V questionnaires to each potential respondent 
identified in the Germany and Mexico Petitions. 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 Q&V questionnaires issued to potential respondents.
---------------------------------------------------------------------------

    \48\ Id.
---------------------------------------------------------------------------

    Exporters and producers of kegs from China, Germany, and Mexico 
that do not receive Q&V questionnaires by mail may still submit a 
response to the Q&V questionnaire and can obtain a copy of the Q&V 
questionnaire from the Enforcement and Compliance website, at https://trade.gov/enforcement/news.asp. Responses to the Q&V questionnaire must 
be submitted by the relevant Chinese, German, and Mexican exporters/
producers no later than 5:00 p.m. ET on October 24, 2018, which is two 
weeks from the signature date of this notice. All Q&V responses must be 
filed electronically via ACCESS.

Separate Rates

    In order to obtain separate-rate status in an NME investigation, 
exporters and producers must submit a separate-rate application.\49\ 
The specific requirements for submitting a separate-rate application in 
this investigation are provided in the application itself, which is 
available on Commerce's website at https://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate application will be due 30 days 
after publication of this initiation notice.\50\ Exporters and 
producers who submit a separate-rate application and which have been 
selected as mandatory respondents will only be eligible for 
consideration for separate-rate status if

[[Page 52200]]

they respond to all parts of Commerce's AD questionnaire as mandatory 
respondents. Commerce requires that companies from China submit a 
response to both the Q&V questionnaire and the separate-rate 
application by the respective deadlines in order to receive 
consideration for separate-rate status. Companies not filing a timely 
Q&V questionnaire response will not receive separate-rate 
consideration.
---------------------------------------------------------------------------

    \49\ See Policy Bulletin 05.1: Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigation 
involving Non-Market Economy Countries (April 5, 2005), available at 
https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin 
05.1).
    \50\ Although in past investigations this deadline was 60 days, 
consistent with 19 CFR 351.301(a), which states that ``the Secretary 
may request any person to submit factual information at any time 
during a proceeding,'' this deadline is now 30 days.
---------------------------------------------------------------------------

Use of Combination Rates

    Commerce will calculate combination rates for certain respondents 
that are eligible for a separate rate in an NME investigation. The 
Separate Rates and Combination Rates Bulletin states:

    {w{time} hile continuing the practice of assigning separate 
rates only to exporters, all separate rates that the Department will 
now assign in its NME Investigation will be specific to those 
producers that supplied the exporter during the period of 
investigation. Note, however, that one rate is calculated for the 
exporter and all of the producers which supplied subject merchandise 
to it during the period of investigation. This practice applies both 
to mandatory respondents receiving an individually calculated 
separate rate as well as the pool of non-investigated firms 
receiving the weighted-average of the individually calculated rates. 
This practice is referred to as the application of ``combination 
rates'' because such rates apply to specific combinations of 
exporters and one or more producers. The cash-deposit rate assigned 
to an exporter will apply only to merchandise both exported by the 
firm in question and produced by a firm that supplied the exporter 
during the period of investigation.\51\
---------------------------------------------------------------------------

    \51\ See Policy Bulletin 05.1 at 6 {emphasis added{time} .
---------------------------------------------------------------------------

Distribution of Copies of the Petitions

    In accordance with section 732(b)(3)(A) of the Act and 19 CFR 
351.202(f), copies of the public version of the Petitions have been 
provided to the governments of China, Germany, and Mexico via ACCESS. 
To the extent practicable, we will attempt to provide a copy of the 
public version of the Petitions to each exporter named in the 
Petitions, as provided under 19 CFR 351.203(c)(2).

ITC Notification

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

Preliminary Determinations by the ITC

    The ITC will preliminarily determine, within 45 days after the date 
on which the Petitions were filed, whether there is a reasonable 
indication that imports of kegs from China, Germany, and/or Mexico are 
materially injuring or threatening material injury to a U.S. industry. 
A negative ITC determination will result in the investigations being 
terminated with respect to that country.\52\ Otherwise, the 
investigations will proceed according to statutory and regulatory time 
limits.
---------------------------------------------------------------------------

    \52\ Id.
---------------------------------------------------------------------------

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). 19 CFR 351.301(b) requires any 
party, when submitting factual information, to specify under which 
subsection of 19 CFR 351.102(b)(21) the information is being submitted 
\53\ 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.\54\ 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.
---------------------------------------------------------------------------

    \53\ See 19 CFR 351.301(b).
    \54\ 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 a letter or memorandum of 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.\55\ 
Parties must use the certification formats provided in 19 CFR 
351.303(g).\56\ Commerce intends to reject factual submissions if the 
submitting party does not comply with the applicable certification 
requirements.
---------------------------------------------------------------------------

    \55\ See section 782(b) of the Act.
    \56\ 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.
---------------------------------------------------------------------------

Notification to Interested Parties

    Interested parties must submit applications for disclosure under 
APO in accordance with 19 CFR 351.305(b). 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)). Instructions 
for filing such applications may be found on Commerce's website at 
https://enforcement.trade.gov/apo.
    This notice is issued and published pursuant to sections 732(c)(2) 
and 777(i) of the Act, and 19 CFR 351.203(c).

    Dated: October 10, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigations

    The merchandise covered by these investigations are kegs, 
vessels, or containers that are approximately cylindrical in shape, 
made from stainless steel (i.e., steel containing at least 10.5 
percent chromium by weight and less than 1.2 percent carbon by 
weight, with or without other elements), and that are compatible 
with a ``D Sankey''

[[Page 52201]]

extractor (commonly known as a ``D Coupler'' or ``Sankey'') 
(refillable stainless steel kegs) with a nominal liquid volume 
capacity of 10 liters or more, regardless of the type of finish, 
gauge, thickness, or grade of stainless steel, and whether or not 
covered by or encased in other materials. Refillable stainless steel 
kegs may be imported assembled or unassembled, with or without all 
components (including spears, couplers or taps, necks, collars, and 
valves), and be filled or unfilled.
    ``Unassembled'' or ``unfinished'' refillable stainless steel 
kegs include drawn stainless steel cylinders that have been welded 
to form the body of the keg and welded to an upper (top) chime and/
or lower (bottom) chime. Unassembled refillable stainless steel kegs 
may or may not be welded to a neck, may or may not have a valve 
assembly attached, and may be otherwise complete except for testing, 
certification, and/or marking.
    Subject merchandise also includes refillable stainless steel 
kegs that have been further processed in a third country, including 
but not limited to, attachment of necks, collars, spears or valves, 
heat treatment, pickling, passivation, painting, testing, 
certification or any other processing that would not otherwise 
remove the merchandise from the scope of the investigations if 
performed in the country of manufacture of the in-scope refillable 
stainless steel keg.
    Specifically excluded are the following:
    (1) Vessels or containers that are not approximately cylindrical 
in nature (e.g., box, ``hopper'' or ``cone'' shaped vessels);
    (2) stainless steel kegs, vessels, or containers that have 
either a ``ball lock'' valve system or a ``pin lock'' valve system 
(commonly known as ``Cornelius,'' ``corny'' or ``ball lock'' kegs);
    (3) necks, spears, couplers or taps, collars, and valves that 
are not imported with the subject merchandise; and
    (4) stainless steel kegs that are filled with beer, wine, or 
other liquid and that are designated by the Commissioner of Customs 
as Instruments of International Traffic within the meaning of 
section 332(a) of the Tariff Act of 1930, as amended.
    The merchandise covered by these investigations are currently 
classified in the Harmonized Tariff Schedule of the United States 
(HTSUS) under subheadings 7310.10.0010, 7310.00.0050, 7310.29.0025, 
and 7310.29.0050.
    These HTSUS subheadings are provided for convenience and customs 
purposes; the written description of the scope of these 
investigations is dispositive.

[FR Doc. 2018-22482 Filed 10-15-18; 8:45 am]
 BILLING CODE 3510-DS-P