Steel Propane Cylinders From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 29159-29161 [2019-13257]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 84, Number 120 (Friday, June 21, 2019)]
[Notices]
[Pages 29159-29161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13257]


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

DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-087]


Steel Propane Cylinders From the People's Republic of China: 
Final Affirmative Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of steel propane cylinders from the People's Republic of China (China).

DATES: Applicable June 21, 2019.

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

SUPPLEMENTARY INFORMATION: 

Background

    On October 26, 2018, Commerce published the Preliminary 
Determination.\1\ In the Preliminary Determination, Commerce aligned 
the final determination in this countervailing duty investigation with 
the final determination in the companion less-than-fair-value 
investigation, in accordance with section 705(a)(1) of the Tariff Act 
of 1930, as amended (the Act), and 19 CFR 351.210(b)(4). A complete 
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 Countervailing Duty Determination and 
Alignment of Final Determination With Final Antidumping Duty 
Determination, 83 FR 54086 (October 26, 2018) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing 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 https://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 determination 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 period of investigation is January 1, 2017 through December 31, 
2017.

Scope of the Investigation

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

Scope Comments

    During the course of this investigation and the concurrent less-
than-fair-value investigations, 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 
Memorandum).
---------------------------------------------------------------------------

Verification

    As provided in section 782(i) of the Act, Commerce verified the 
subsidy information reported by the Government of China (GOC) and 
Shandong Huanri Group Co. Ltd. (Huanri) for use in our final 
determination. We used standard verification procedures, including an 
examination of relevant accounting records and original source 
documents provided by the respondents.

Analysis of Subsidy Programs and 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

[[Page 29160]]

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 from the interested 
parties and our findings at verification, we made certain changes to 
the respondents' subsidy rate calculations since the Preliminary 
Determination. For a discussion of these changes, see the Issues and 
Decision Memorandum.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found countervailable, 
Commerce determines that there is a subsidy, i.e., a financial 
contribution by an ``authority'' that gives rise to a benefit to the 
recipient, and that the subsidy is specific.\5\ In making these 
findings, Commerce relied, in part, on facts otherwise available and, 
because it finds that one or more respondents did not act to the best 
of their ability to respond to Commerce's requests for information, 
Commerce drew an adverse inference where appropriate in selecting from 
among the facts otherwise available.\6\ For a full description of the 
methodology underlying our final determination, see the Issues and 
Decision Memorandum.
---------------------------------------------------------------------------

    \5\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
    \6\ See sections 776(a), (b), and 782(d) of the Act.
---------------------------------------------------------------------------

Final Determination

    In accordance with section 705(c)(l)(B)(i)(I) of the Act, we 
calculated a rate for Huanri, a producer/exporter of subject 
merchandise selected for individual examination in this investigation. 
With regard to TPA Metals and Machinery (SZ) Co. Ltd., an additional 
producer/exporter selected for individual examination, as well as 
Guangzhou Lion Cylinders Co. Ltd.; Hubei Daly LPG Cylinder Manufacturer 
Co. Ltd.; Taishan Machinery Factory Ltd.; Wuyi Xilinde Machinery 
Manufacture Co., Ltd.; and Zhejiang Jucheng Steel Cylinder Co., Ltd., 
for the reasons described in the Preliminary Determination, Commerce 
assigned a rate based entirely on adverse facts available (AFA) 
pursuant to section 776(b) of the Act. No interested party commented on 
our preliminary decision to assign these six companies a rate based 
entirely on AFA, and so for purposes of this final determination, we 
continue to assign the non-cooperating companies a rate based entirely 
on AFA.
    Section 705(c)(5)(A) of the Act provides that in the final 
determination, Commerce shall determine an estimated all-others rate 
for companies not individually examined. This rate shall be an amount 
equal to the weighted average of the countervailable subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act. Huanri is the only respondent for which Commerce 
calculated a weighted-average countervailable subsidy rate that is not 
zero, de minimis, or based entirely on facts otherwise available. 
Therefore, for purposes of determining the ``all-others'' rate, and 
pursuant to section 705(c)(5)(A) of the Act, we are using the subsidy 
rate calculated for Huanri.
    Commerce determines the total estimated net countervailable subsidy 
rates to be the following:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
------------------------------------------------------------------------
Guangzhou Lion Cylinders Co. Ltd............................      142.37
Hubei Daly LPG Cylinder Manufacturer Co. Ltd................      142.37
Shandong Huanri Group Co. Ltd...............................       37.91
Taishan Machinery Factory Ltd...............................      142.37
TPA Metals and Machinery (SZ) Co. Ltd.......................      142.37
Wuyi Xilinde Machinery Manufacture Co., Ltd.................      142.37
Zhejiang Jucheng Steel Cylinder Co., Ltd....................      142.37
All Others..................................................       37.91
------------------------------------------------------------------------

Disclosure

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

Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) 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 October 26, 2018, the date of publication of 
the Preliminary Determination of this investigation in the Federal 
Register. In accordance with section 703(d) of the Act, we issued 
instructions to CBP to discontinue the suspension of liquidation for 
CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after February 23, 2019, but to continue the 
suspension of liquidation of all entries from October 26, 2018 through 
February 22, 2019.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, will reinstate the suspension of liquidation under section 
706(a) of the Act, and will require a cash deposit of estimated 
countervailing duties for such entries of subject merchandise in the 
amounts indicated above. If the ITC determines that material injury, or 
threat of material injury, does not exist, this proceeding will be 
terminated, and all estimated duties deposited or securities posted as 
a result of the suspension of liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of steel 
propane cylinders from China. Because the final determination in this 
proceeding is affirmative, in accordance with section 705(b) 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 this 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 a countervailing duty order directing CBP to assess, upon 
further instruction by Commerce, countervailing 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 the 
administrative protective order (APO) of their responsibility 
concerning the destruction 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

[[Page 29161]]

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.

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 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
    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