Steel Propane Cylinders From the People's Republic of China: Final Determination of Sales at Less Than Fair Value, 29161-29164 [2019-13250]

Download as PDF Federal Register / Vol. 84, No. 120 / Friday, June 21, 2019 / Notices judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a sanctionable violation. Notification to Interested Parties This determination is issued and published pursuant to sections 705(d) and 777(i) of the Act and 19 CFR 351.210(c). Dated: June 17, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. jspears on DSK30JT082PROD with NOTICES Appendix I—Scope of the Investigation The products subject to this investigation are steel cylinders for compressed or liquefied propane or other gases (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 and otherwise meeting the description provided below. 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 VerDate Sep<11>2014 18:30 Jun 20, 2019 Jkt 247001 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 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. Appendix II—List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Investigation IV. Use of Facts Otherwise Available and Adverse Inferences V. Subsidies Valuation VI. Analysis of Programs VII. Discussion of the Issues Comment 1: Whether to Apply Adverse Facts Available (AFA) to Shandong Huanri Group Co. Ltd. (Huanri) for the Export Buyer’s Credit (EBC) Program Comment 2: Whether to Apply AFA to Huanri for Policy Lending Comment 3: Whether Policy Loans Provided by State-Owned Commercial Banks (SOCBs) to the Steel Propane Cylinder Industry are Specific Comment 4: Whether All Hot-Rolled Steel (HRS) Producers are ‘‘Authorities’’ Under Section 771(5)(B) of the Act Comment 5: Whether the Provision of HRS for Less Than Adequate Remuneration (LTAR) is Specific Comment 6: Whether the Chinese Domestic HRS Market is Distorted Comment 7: Whether to Fill in Certain Months with Missing Data in the Ocean Freight Benchmark Comment 8: Whether to Exclude Routes to Xiamen from the Ocean Freight Benchmark Comment 9: Whether to Exclude the Tokyo to Qingdao Route from the Ocean Freight Benchmark Comment 10: Which Ports to Use for the Calculation of Inland Freight Comment 11: Whether to Include Value Added Tax (VAT) in Huanri’s Inland Freight Costs Comment 12: Which HRS Import Tariff Rates to Select PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 29161 Comment 13: Whether to Use the Government of China’s (GOC) Coaster Freight Rates in the Ocean Freight Benchmark Comment 14: Whether to Apply AFA to Find the Provision of Electricity for LTAR to be Specific Comment 15: Whether to Remove Shandong Laizhou Steel Cylinder Factory’s (SC Factory) Loans from Huanri’s Reported Loans Comment 16: Which Benchmark Interest Rates to Apply in the Export Seller’s Credit and Policy Loan Benefit Calculations Comment 17: Whether to Adjust Huanri’s Sales Denominator Comment 18: Whether to Correct a Translation Error in the Electricity for LTAR Benefit Calculation Comment 19: Which AFA Program Rates to Apply to the Non-Cooperating Companies VIII. Recommendation [FR Doc. 2019–13257 Filed 6–20–19; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–086] Steel Propane Cylinders From the People’s Republic of China: Final 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 steel propane cylinders from the People’s Republic of China (China) are being, or are likely to be, sold in the United States at less than fair value (LTFV). DATES: Applicable June 21, 2019. FOR FURTHER INFORMATION CONTACT: Stephanie Berger or Laura Griffith, 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) 482–2483 or (202) 482–6430, respectively. AGENCY: SUPPLEMENTARY INFORMATION: Background On December 27, 2018, Commerce published its Preliminary Determination of sales at LTFV of steel propane cylinders from China.1 A complete 1 See Steel Propane Cylinders from the People’s Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Postponement of Final Determination Measures, 83 FR 66675 (December 27, 2018) (Preliminary E:\FR\FM\21JNN1.SGM Continued 21JNN1 29162 Federal Register / Vol. 84, No. 120 / Friday, June 21, 2019 / Notices summary of the events that occurred since Commerce published the Preliminary Determination, as well as a full discussion of the issues raised by parties for this final determination, may be found in the Issues and Decision Memorandum.2 The Issues and Decision Memorandum is a public document and is available 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 B–8024 of Commerce’s main building. In addition, a complete version of the Issues and Decision Memorandum can be accessed at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and electronic version are identical in content. Commerce exercised its discretion to toll all deadlines affected by the partial federal government closure from December 22, 2018 through the resumption of operations on January 29, 2019.3 If the new deadline falls on a non-business day, in accordance with Commerce’s practice, the deadline will become the next business day. The revised deadline for the final results of this investigation is now June 17, 2019. Period of Investigation The POI is October 1, 2017 through March 31, 2018. jspears on DSK30JT082PROD with NOTICES Scope Comments During the course of this investigation and the concurrent countervailing duty (CVD) investigation, Commerce received scope comments from interested parties. Certain interested parties commented on the scope of the investigation as it Determination), and accompanying Preliminary Decision Memorandum. 2 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Determination of the Antidumping Duty Investigation of Steel Propane Cylinders from the People’s Republic of China,’’ dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). 3 See Memorandum to the Record from 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, ‘‘Deadlines Affected by the Partial Shutdown of the Federal Government,’’ dated January 28, 2019. All deadlines in this segment of the proceeding have been extended by 40 days. 18:30 Jun 20, 2019 Jkt 247001 Verification As provided in section 782(i) of the Tariff Act of 1930, as amended (the Act), Commerce verified the sales and cost data reported by Hong Kong GSBF Company Ltd. and GSBF TANK Inc. (collectively, GSBF) and Shandong Huanri Group Co., Ltd. (Huanri) 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. Analysis of Comments Received All issues raised in the case briefs and rebuttal briefs submitted by interested parties in this proceeding are discussed in the Issues and Decision Memorandum. A list of the issues raised by parties and responded to by Commerce are in the Issues and Decision Memorandum, attached at Appendix II. Changes Since the Preliminary Determination Scope of the Investigation The merchandise covered by this investigation is steel propane cylinders from China. For a complete discussion of the scope of this investigation, see Appendix I of this notice. VerDate Sep<11>2014 appeared in the Preliminary Scope Decision Memorandum,4 which was issued concurrently with the Preliminary Determination. We did not receive any scope comments after the Preliminary Scope Decision Memorandum; therefore, the preliminary scope determination remains unchanged in the final determination. Based on our analysis of the comments received and our findings at verification, we made certain changes to the margin calculations for both respondents since the Preliminary Determination. For a discussion of these changes, see the Issues and Decision Memorandum. China-Wide Entity For the reasons explained in the Preliminary Determination, we are continuing to find that the use of adverse facts available (AFA), pursuant to sections 776(a) and (b) of the Act, is appropriate and are applying a rate based entirely on AFA to the Chinawide entity. Commerce did not receive timely responses to its quantity and value (Q&V) questionnaire, separate rate applications, or separate rate supplemental questionnaires from certain exporters and/or producers of 4 See Memorandum, ‘‘Steel Propane Cylinders from the People’s Republic of China (China) and Thailand: Scope Decision Memorandum for the Preliminary Antidumping Duty (AD) and Countervailing Duty (CVD) Determinations,’’ dated December 18, 2018 (Preliminary Scope Decision Memorandum). PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 subject merchandise that were named in the petition and to which Commerce issued Q&V questionnaires.5 TPA Metals and Machinery (DG) Co. Ltd., which did respond to the Q&V questionnaire and was initially selected as a mandatory respondent in this investigation, failed to respond to Commerce’s initial questionnaire, and was thus deemed non-responsive.6 As these non-responsive companies in China did not demonstrate that they are eligible for separate rate status, Commerce continues to consider them to be a part of the China-wide entity. Consequently, we continue to find that the China-wide entity withheld requested information, significantly impeded the proceeding, and failed to cooperate to the best of their abilities, and thus we are continuing to base the China-wide entity’s rate on AFA. China-Wide Rate In selecting the AFA rate for the China-wide entity, Commerce’s practice is to select a rate that is sufficiently adverse to ensure that the uncooperative party does not obtain a more favorable result by failing to cooperate than if it had fully cooperated.7 Specifically, it is Commerce’s practice to select, as an AFA rate, the higher of: (a) The highest dumping margin alleged in the petition; or, (b) the highest calculated dumping margin of any respondent in the investigation.8 As AFA, Commerce has assigned to the China-wide entity the rate of 108.60 percent. Combination Rates In the Initiation Notice, Commerce stated that it would calculate combination rates for the respondents that are eligible for a separate rate in this investigation.9 Accordingly, we have assigned combination rates to 5 See Preliminary Decision Memorandum at 15. 6 Id. 7 See, e.g., Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination: Purified Carboxymethyl cellulose from Finland, 69 FR 77216, 77219 (December 27, 2004), unchanged in Notice of Final Determination of Sales at Less Than Fair Value: Purified Carboxymethyl Cellulose from Finland, 70 FR 28279, 28279 (May 17, 2005). 8 See, e.g., Certain Stilbenic Optical Brightening Agents from the People’s Republic of China: Final Determination of Sales at Less Than Fair Value, 77 FR 17436, 17438 (March 26, 2012); Final Determination of Sales at Less Than Fair Value: Certain Cold-Rolled Flat-Rolled Carbon Quality Steel Products from the People’s Republic of China, 65 FR 34660 (May 31, 2000), and accompanying Issues and Decision Memorandum. 9 See Steel Propane Cylinders from the People’s Republic of China, Taiwan, and Thailand: Initiation of Less-Than-Fair-Value Investigations, 83 FR 28196, 28201 (June 18, 2018) (Initiation Notice). E:\FR\FM\21JNN1.SGM 21JNN1 29163 Federal Register / Vol. 84, No. 120 / Friday, June 21, 2019 / Notices certain companies, as provided in the ‘‘Final Determination’’ section below. Final Determination Commerce determines that the following weighted-average dumping Weightedaverage margin (percent) Producer Exporter GSBF Tank Inc ......................................................... Shandong Huanri Group Co. Ltd .............................. Jiaxing Pressure Vessel Factory .............................. China-Wide Entity 10 .................................................. Hong Kong GSBF Company Limited ....................... Shandong Huanri Group Co. Ltd ............................. Jiaxing Pressure Vessel Factory ............................. .................................................................................. Disclosure We will disclose the calculations performed within five days of public announcement of this notice in accordance with 19 CFR 351.224(b). jspears on DSK30JT082PROD with NOTICES margins exist for the period October 1, 2017 through March 31, 2018: Continuation of Suspension of Liquidation In accordance with section 735(c)(1)(B) of the Act, we will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all appropriate entries of steel propane cylinders from China, as described in Appendix I of this notice, which were entered, or withdrawn from warehouse, for consumption on or after December 27, 2018, the date of publication of the Preliminary Determination of this investigation in the Federal Register. Further, Commerce will instruct CBP to require a cash deposit equal to the estimated amount by which the normal value exceeds the U.S. price as shown above. To determine the cash deposit rate, Commerce normally adjusts the estimated weighted-average dumping margin by the amount of domestic subsidy pass-through and export subsidies determined in a companion CVD proceeding when CVD provisional measures are in effect. Accordingly, where Commerce makes an affirmative determination for domestic subsidy pass-through or export subsidies, Commerce offsets the calculated estimated weighted-average dumping margin by the appropriate rate(s). In this case, we have made an affirmative determination for domestic subsidy pass-through and export subsidies for certain respondents. However, suspension of liquidation for provisional measures in the companion CVD case has been discontinued; therefore, we are not instructing CBP to collect cash deposits based upon the 10 The China-wide entity includes: Hubei Daly LPG Cylinder Manufacturer Co. Ltd., Taishan Machinery Factory Ltd., TPA Metals and Machinery (DG) Co. Ltd., Wuyi Xilinde Machinery Manufacture Co., Ltd., and Zhejiang Jucheng Steel Cylinder Co., Ltd. VerDate Sep<11>2014 18:30 Jun 20, 2019 Jkt 247001 adjusted estimated weighted-average dumping margin for those subsidies at this time. Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 351.210(d), Commerce will instruct CBP to require a cash deposit equal to the weightedaverage amount by which NV exceeds U.S. price as follows: (1) The cash deposit rate for the exporter/producer combination listed in the table above will be the rate identified for that combination in the table; (2) for all combinations of exporters/producers of merchandise under consideration that have not received their own separate rate above, the cash-deposit rate will be the cash deposit rate established for the China-wide entity; and (3) for all nonChinese exporters of the merchandise under consideration which have not received their own separate rate above, the cash-deposit rate will be the cash deposit rate applicable to the Chinese exporter/producer combination that supplied that non-Chinese exporter. These suspension of liquidation instructions will remain in effect until further notice. International Trade Commission (ITC) Notification In accordance with section 735(d) of the Act, we will notify the International Trade Commission (ITC) of the final affirmative determination of sales at LTFV. Because the final determination in this proceeding is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports, or sales (or the likelihood of sales) for importation of steel propane cylinders from China no later than 45 days after our final determination. If the ITC determines that material injury or threat of material injury does not exist, the proceeding will be terminated, and all cash deposits will be refunded. If the ITC determines that such injury does exist, Commerce will issue an PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 Cash deposit adjusted for subsidy offset (percent) 37.41 25.52 26.28 108.60 3.94 0.0 0.0 75.13 antidumping duty order directing CBP to assess, upon further instruction by Commerce, antidumping duties on all imports of the subject merchandise, entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation. Notification Regarding Administrative Protective Orders This notice serves as the only reminder to parties subject to an administrative protective order (APO) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the return or destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and the terms of an APO is a violation subject to sanction. Notification to Interested Parties This determination is issued and published in accordance with sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c). Dated: June 17, 2019. Jeffrey I. Kessler, Assistant Secretary for Enforcement and Compliance. Appendix I—Scope of the Investigation The merchandise covered by this investigation is steel cylinders for compressed or liquefied propane or other gases (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 and otherwise meeting the description provided below. 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 E:\FR\FM\21JNN1.SGM 21JNN1 29164 Federal Register / Vol. 84, No. 120 / Friday, June 21, 2019 / Notices jspears on DSK30JT082PROD with NOTICES 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 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. Appendix II—List of Topics Discussed in the Issues and Decision Memorandum I. Summary II. Background III. Scope of the Investigation IV. Changes Since the Preliminary Determination VerDate Sep<11>2014 18:30 Jun 20, 2019 Jkt 247001 V. Discussion of the Issues Comment 1: Selection of Financial Statements to Value the Financial Ratios Comment 2: Subsidy Rate Calculated for the Export Buyer’s Credit Program Comment 3: Surrogate Value Selections for Huanri and GSBF A. Natural Gas for Huanri B. Rubber Plug for GSBF C. Teflon Tape for GSBF D. Valve for GSBF E. Steel Roll for GSBF F. Steel Scrap for GSBF Comment 4: Ministerial Errors and Other Issues A. Errors in the Determination of the Surrogate Financial Ratios B. Argon Conversion for Huanri and GSBF C. Oxygen Gas Conversion for GSBF D. Natural Gas Conversion for Huanri E. Calculation of Market Economy Purchase for Overflow Protection Devices (OPDs) for Huanri F. Misclassified Paint Variable in GSBF’s Margin Calculation Program G. Errors Identified in Huanri’s Verification Report VI. Recommendation [FR Doc. 2019–13250 Filed 6–20–19; 8:45 am] BILLING CODE 3510–DS–P Background On July 25, 2018, Commerce published the Preliminary Determination of circumvention of the Order.1 A summary of the events that occurred since Commerce published the Preliminary Determination, as well as a full discussion of the issues raised by parties for this final determination, may be found in the Issues and Decision Memorandum.2 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 http://access.trade.gov, and it is available to all parties in the Central Records Unit, Room B8024 of the main Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at http://enforcement.trade.gov/ frn/. The signed and electronic versions of the Issues and Decision Memorandum are identical in content. DEPARTMENT OF COMMERCE Scope of the Order International Trade Administration The products covered by the Order are carbon steel butt-weld pipe fittings. For a complete description of the scope of the Order, see the Issues and Decision Memorandum. [A–570–814] Carbon Steel Butt-Weld Pipe Fittings From the People’s Republic of China: Final Affirmative Determination of Circumvention of the Antidumping Duty Order Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that carbon steel butt-weld pipe fittings (butt-weld pipe fittings) exported from Malaysia, which were completed in Malaysia using finished or unfinished butt-weld pipe fittings sourced from the People’s Republic of China (China), are circumventing the antidumping duty (AD) order on butt-weld pipe fittings from China. Commerce has also updated the language in the certification requirements and importer and exporter certifications that are appended to this notice. DATES: Applicable June 21, 2019. FOR FURTHER INFORMATION CONTACT: Jerry Huang, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4047. SUPPLEMENTARY INFORMATION: AGENCY: PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 Scope of the Anti-Circumvention Inquiry This anti-circumvention inquiry covers butt-weld pipe fittings exported from Malaysia to the United States, which were completed (i.e., have undergone minor finishing processes, or were simply marked with ‘‘Malaysia’’ as the country of origin) in Malaysia using finished or unfinished butt-weld pipe fittings sourced from China (inquiry merchandise). This final ruling applies to all shipments of inquiry merchandise on or after the date of the initiation of this inquiry. 1 See Carbon Steel Butt-Weld Pipe Fittings From the People’s Republic of China: Preliminary Affirmative Determination of Circumvention of the Antidumping Duty Order, 83 FR 35205 (July 25, 2018) (Preliminary Determination) and accompanying Preliminary Decision Memorandum; see also Antidumping Duty Order and Amendment to the Final Determination of Sales at Less Than Fair Value; Certain Carbon Steel Butt-Weld Pipe Fittings from the People’s Republic of China, 57 FR 29702 (July 6, 1992) (Order). 2 See Memorandum, ‘‘Issues and Decision Memorandum for the Anti-Circumvention Inquiry of the Antidumping Duty Order on Certain Carbon Steel Butt-Weld Pipe Fittings from the People’s Republic of China,’’ dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). E:\FR\FM\21JNN1.SGM 21JNN1

Agencies

[Federal Register Volume 84, Number 120 (Friday, June 21, 2019)]
[Notices]
[Pages 29161-29164]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13250]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-086]


Steel Propane Cylinders From the People's Republic of China: 
Final Determination of Sales at Less Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) determines that steel 
propane cylinders from the People's Republic of China (China) are 
being, or are likely to be, sold in the United States at less than fair 
value (LTFV).

DATES: Applicable June 21, 2019.

FOR FURTHER INFORMATION CONTACT: Stephanie Berger or Laura Griffith, 
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) 482-2483 
or (202) 482-6430, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 27, 2018, Commerce published its Preliminary 
Determination of sales at LTFV of steel propane cylinders from 
China.\1\ A complete

[[Page 29162]]

summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by parties for this final determination, may be found in the 
Issues and Decision Memorandum.\2\
---------------------------------------------------------------------------

    \1\ See Steel Propane Cylinders from the People's Republic of 
China: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value and Postponement of Final Determination Measures, 83 FR 
66675 (December 27, 2018) (Preliminary Determination), and 
accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination of the Antidumping Duty Investigation of Steel 
Propane Cylinders from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Issues and 
Decision Memorandum).
---------------------------------------------------------------------------

    The Issues and Decision Memorandum is a public document and is 
available 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 B-8024 of Commerce's 
main building. In addition, a complete version of the Issues and 
Decision Memorandum can be accessed at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and electronic version 
are identical in content.
    Commerce exercised its discretion to toll all deadlines affected by 
the partial federal government closure from December 22, 2018 through 
the resumption of operations on January 29, 2019.\3\ If the new 
deadline falls on a non-business day, in accordance with Commerce's 
practice, the deadline will become the next business day. The revised 
deadline for the final results of this investigation is now June 17, 
2019.
---------------------------------------------------------------------------

    \3\ See Memorandum to the Record from 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, ``Deadlines 
Affected by the Partial Shutdown of the Federal Government,'' dated 
January 28, 2019. All deadlines in this segment of the proceeding 
have been extended by 40 days.
---------------------------------------------------------------------------

Period of Investigation

    The POI is October 1, 2017 through March 31, 2018.

Scope of the Investigation

    The merchandise covered by this investigation is steel propane 
cylinders from China. For a complete discussion of the scope of this 
investigation, see Appendix I of this notice.

Scope Comments

    During the course of this investigation and the concurrent 
countervailing duty (CVD) investigation, Commerce received scope 
comments from interested parties. Certain interested parties commented 
on the scope of the investigation as it appeared in the Preliminary 
Scope Decision Memorandum,\4\ which was issued concurrently with the 
Preliminary Determination. We did not receive any scope comments after 
the Preliminary Scope Decision Memorandum; therefore, the preliminary 
scope determination remains unchanged in the final determination.
---------------------------------------------------------------------------

    \4\ See Memorandum, ``Steel Propane Cylinders from the People's 
Republic of China (China) and Thailand: Scope Decision Memorandum 
for the Preliminary Antidumping Duty (AD) and Countervailing Duty 
(CVD) Determinations,'' dated December 18, 2018 (Preliminary Scope 
Decision Memorandum).
---------------------------------------------------------------------------

Verification

    As provided in section 782(i) of the Tariff Act of 1930, as amended 
(the Act), Commerce verified the sales and cost data reported by Hong 
Kong GSBF Company Ltd. and GSBF TANK Inc. (collectively, GSBF) and 
Shandong Huanri Group Co., Ltd. (Huanri) 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.

Analysis of Comments Received

    All issues raised in the case briefs and rebuttal briefs submitted 
by interested parties in this proceeding are discussed in the Issues 
and Decision Memorandum. A list of the issues raised by parties and 
responded to by Commerce are in the Issues and Decision Memorandum, 
attached at Appendix II.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our findings at 
verification, we made certain changes to the margin calculations for 
both respondents since the Preliminary Determination. For a discussion 
of these changes, see the Issues and Decision Memorandum.

China-Wide Entity

    For the reasons explained in the Preliminary Determination, we are 
continuing to find that the use of adverse facts available (AFA), 
pursuant to sections 776(a) and (b) of the Act, is appropriate and are 
applying a rate based entirely on AFA to the China-wide entity. 
Commerce did not receive timely responses to its quantity and value 
(Q&V) questionnaire, separate rate applications, or separate rate 
supplemental questionnaires from certain exporters and/or producers of 
subject merchandise that were named in the petition and to which 
Commerce issued Q&V questionnaires.\5\ TPA Metals and Machinery (DG) 
Co. Ltd., which did respond to the Q&V questionnaire and was initially 
selected as a mandatory respondent in this investigation, failed to 
respond to Commerce's initial questionnaire, and was thus deemed non-
responsive.\6\ As these non-responsive companies in China did not 
demonstrate that they are eligible for separate rate status, Commerce 
continues to consider them to be a part of the China-wide entity. 
Consequently, we continue to find that the China-wide entity withheld 
requested information, significantly impeded the proceeding, and failed 
to cooperate to the best of their abilities, and thus we are continuing 
to base the China-wide entity's rate on AFA.
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    \5\ See Preliminary Decision Memorandum at 15.
    \6\ Id.
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China-Wide Rate

    In selecting the AFA rate for the China-wide entity, Commerce's 
practice is to select a rate that is sufficiently adverse to ensure 
that the uncooperative party does not obtain a more favorable result by 
failing to cooperate than if it had fully cooperated.\7\ Specifically, 
it is Commerce's practice to select, as an AFA rate, the higher of: (a) 
The highest dumping margin alleged in the petition; or, (b) the highest 
calculated dumping margin of any respondent in the investigation.\8\ As 
AFA, Commerce has assigned to the China-wide entity the rate of 108.60 
percent.
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    \7\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination: 
Purified Carboxymethyl cellulose from Finland, 69 FR 77216, 77219 
(December 27, 2004), unchanged in Notice of Final Determination of 
Sales at Less Than Fair Value: Purified Carboxymethyl Cellulose from 
Finland, 70 FR 28279, 28279 (May 17, 2005).
    \8\ See, e.g., Certain Stilbenic Optical Brightening Agents from 
the People's Republic of China: Final Determination of Sales at Less 
Than Fair Value, 77 FR 17436, 17438 (March 26, 2012); Final 
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled 
Flat-Rolled Carbon Quality Steel Products from the People's Republic 
of China, 65 FR 34660 (May 31, 2000), and accompanying Issues and 
Decision Memorandum.
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Combination Rates

    In the Initiation Notice, Commerce stated that it would calculate 
combination rates for the respondents that are eligible for a separate 
rate in this investigation.\9\ Accordingly, we have assigned 
combination rates to

[[Page 29163]]

certain companies, as provided in the ``Final Determination'' section 
below.
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    \9\ See Steel Propane Cylinders from the People's Republic of 
China, Taiwan, and Thailand: Initiation of Less-Than-Fair-Value 
Investigations, 83 FR 28196, 28201 (June 18, 2018) (Initiation 
Notice).
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Final Determination

    Commerce determines that the following weighted-average dumping 
margins exist for the period October 1, 2017 through March 31, 2018:

----------------------------------------------------------------------------------------------------------------
                                                                                                  Cash deposit
                                                                                  Weighted-       adjusted for
                 Producer                               Exporter               average margin    subsidy offset
                                                                                  (percent)         (percent)
----------------------------------------------------------------------------------------------------------------
GSBF Tank Inc............................  Hong Kong GSBF Company Limited...             37.41              3.94
Shandong Huanri Group Co. Ltd............  Shandong Huanri Group Co. Ltd....             25.52               0.0
Jiaxing Pressure Vessel Factory..........  Jiaxing Pressure Vessel Factory..             26.28               0.0
China-Wide Entity \10\...................  .................................            108.60             75.13
----------------------------------------------------------------------------------------------------------------

Disclosure
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    \10\ The China-wide entity includes: Hubei Daly LPG Cylinder 
Manufacturer Co. Ltd., Taishan Machinery Factory Ltd., TPA Metals 
and Machinery (DG) Co. Ltd., Wuyi Xilinde Machinery Manufacture Co., 
Ltd., and Zhejiang Jucheng Steel Cylinder Co., Ltd.
---------------------------------------------------------------------------

    We will disclose the calculations performed within five days of 
public announcement of this notice in accordance with 19 CFR 
351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of steel propane 
cylinders from China, as described in Appendix I of this notice, which 
were entered, or withdrawn from warehouse, for consumption on or after 
December 27, 2018, the date of publication of the Preliminary 
Determination of this investigation in the Federal Register. Further, 
Commerce will instruct CBP to require a cash deposit equal to the 
estimated amount by which the normal value exceeds the U.S. price as 
shown above.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion CVD 
proceeding when CVD provisional measures are in effect. Accordingly, 
where Commerce makes an affirmative determination for domestic subsidy 
pass-through or export subsidies, Commerce offsets the calculated 
estimated weighted-average dumping margin by the appropriate rate(s). 
In this case, we have made an affirmative determination for domestic 
subsidy pass-through and export subsidies for certain respondents. 
However, suspension of liquidation for provisional measures in the 
companion CVD case has been discontinued; therefore, we are not 
instructing CBP to collect cash deposits based upon the adjusted 
estimated weighted-average dumping margin for those subsidies at this 
time.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), Commerce will instruct CBP to require a cash deposit equal 
to the weighted-average amount by which NV exceeds U.S. price as 
follows: (1) The cash deposit rate for the exporter/producer 
combination listed in the table above will be the rate identified for 
that combination in the table; (2) for all combinations of exporters/
producers of merchandise under consideration that have not received 
their own separate rate above, the cash-deposit rate will be the cash 
deposit rate established for the China-wide entity; and (3) for all 
non-Chinese exporters of the merchandise under consideration which have 
not received their own separate rate above, the cash-deposit rate will 
be the cash deposit rate applicable to the Chinese exporter/producer 
combination that supplied that non-Chinese exporter. These suspension 
of liquidation instructions will remain in effect until further notice.

International Trade Commission (ITC) Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports, or sales (or the 
likelihood of sales) for importation of steel propane cylinders from 
China no later than 45 days after our final determination. If the ITC 
determines that material injury or threat of material injury does not 
exist, the proceeding will be terminated, and all cash deposits will be 
refunded. If the ITC determines that such injury does exist, Commerce 
will issue an antidumping duty order directing CBP to assess, upon 
further instruction by Commerce, antidumping duties on all imports of 
the subject merchandise, entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding Administrative Protective Orders

    This notice serves as the only reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the 
return or destruction of APO materials or conversion to judicial 
protective order is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a violation subject to sanction.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: June 17, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is steel cylinders 
for compressed or liquefied propane or other gases (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 and otherwise meeting the description provided below. 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

[[Page 29164]]

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 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.

Appendix II--List of Topics Discussed in the Issues and Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Changes Since the Preliminary Determination
V. Discussion of the Issues
    Comment 1: Selection of Financial Statements to Value the 
Financial Ratios
    Comment 2: Subsidy Rate Calculated for the Export Buyer's Credit 
Program
    Comment 3: Surrogate Value Selections for Huanri and GSBF
    A. Natural Gas for Huanri
    B. Rubber Plug for GSBF
    C. Teflon Tape for GSBF
    D. Valve for GSBF
    E. Steel Roll for GSBF
    F. Steel Scrap for GSBF
    Comment 4: Ministerial Errors and Other Issues
    A. Errors in the Determination of the Surrogate Financial Ratios
    B. Argon Conversion for Huanri and GSBF
    C. Oxygen Gas Conversion for GSBF
    D. Natural Gas Conversion for Huanri
    E. Calculation of Market Economy Purchase for Overflow 
Protection Devices (OPDs) for Huanri
    F. Misclassified Paint Variable in GSBF's Margin Calculation 
Program
    G. Errors Identified in Huanri's Verification Report
VI. Recommendation

[FR Doc. 2019-13250 Filed 6-20-19; 8:45 am]
 BILLING CODE 3510-DS-P