83 FR 31951 - High Pressure Steel Cylinders From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review; 2016

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 132 (July 10, 2018)

The Department of Commerce (Commerce) is conducting an administrative review of the countervailing duty (CVD) order on high pressure steel cylinders (steel cylinders) from the People's Republic of China (PRC) for the period of review January 1, 2016, through December 31, 2016. Interested parties are invited to comment on these preliminary results.

[Federal Register Volume 83, Number 132 (Tuesday, July 10, 2018)]
[Notices]
[Pages 31951-31953]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14730]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-978]


High Pressure Steel Cylinders From the People's Republic of 
China: Preliminary Results of Countervailing Duty Administrative 
Review; 2016

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

SUMMARY: The Department of Commerce (Commerce) is conducting an 
administrative review of the countervailing duty (CVD) order on high 
pressure steel cylinders (steel cylinders) from the People's Republic 
of China (PRC) for the period of review January 1, 2016, through 
December 31, 2016. Interested parties are invited to comment on these 
preliminary results.

DATES: Applicable July 10, 2018.

FOR FURTHER INFORMATION CONTACT: Toby Vandall or Aimee Phelan, AD/CVD 
Operations, Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone:

[[Page 31952]]

(202) 482-1664 or (202) 482-0697, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On June 7, 2017, Commerce published a notice of opportunity to 
request an administrative review of the CVD order on steel cylinders 
from the PRC for the period January 1, 2016, through December 31, 
2016.\1\ On June 13, 2017, and June 30, 2017, we received review 
requests from Norris Cylinder Company (the petitioner) and Beijing 
Tianhai Industry Co., Ltd. (BTIC).\2\ We published a notice of 
initiation for this administrative review on August 1, 2017.\3\ On 
February 5, 2018, we postponed the deadline for issuing the preliminary 
results of this administrative review until July 3, 2018.\4\ For a 
complete description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\5\ A list of 
topics discussed in the Preliminary Decision Memorandum is included as 
Appendix II to this notice. The Preliminary 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 is available to all parties in the Central 
Records Unit, room B8024 of the main Department of Commerce building. 
In addition, a complete version of the Preliminary Decision Memorandum 
can be accessed directly at http://enforcement.trade.gov/frn/. The 
signed and electronic versions of the Preliminary Decision Memorandum 
are identical in content.
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    \1\ See Antidumping or Countervailing Duty Order, Finding, or 
Suspended Investigation; Opportunity To Request Administrative 
Review, 82 FR 26441 (June 7, 2017).
    \2\ See Letter from the petitioner, ``High Pressure Steel 
Cylinders from the People's Republic of China Request for 
Administrative Review and Entry of Appearance'' (June 13, 2017); see 
also Letter from BTIC, ``Request for the Fifth Administrative Review 
of the Countervailing Duty Order on High Pressure Steel Cylinders 
from the People's Republic of China, C-570-978 (POR: 01/01/16-12/31/
16)'' (June 30, 2017).
    \3\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 82 FR 35749 (August 1, 2017) (Initiation 
Notice).
    \4\ See Memorandum, ``High Pressure Steel Cylinders from the 
People's Republic of China: Extension of Time Limit for Preliminary 
Results of the Countervailing Duty Administrative Review; 2016,'' 
February 5, 2018.
    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of 2016 Countervailing Duty Administrative Review of High 
Pressure Steel Cylinders from the People's Republic of China,'' 
dated concurrently with, and hereby adopted by, this notice 
(Preliminary Decision Memorandum).
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Scope of the Order

    The merchandise covered by this order is seamless steel cylinders 
designed for storage or transport of compressed or liquefied gas 
(``high pressure steel cylinders''). High pressure steel cylinders are 
fabricated of chrome alloy steel including, but not limited to, 
chromium-molybdenum steel or chromium magnesium steel, and have 
permanently impressed into the steel, either before or after 
importation, the symbol of a U.S. Department of Transportation, 
Pipeline and Hazardous Materials Safety Administration (``DOT'')-
approved high pressure steel cylinder manufacturer, as well as an 
approved DOT type marking of DOT 3A, 3AX, 3AA, 3AAX, 3B, 3E, 3HT, 3T, 
or DOT-E (followed by a specific exemption number) in accordance with 
the requirements of sections 178.36 through 178.68 of Title 49 of the 
Code of Federal Regulations, or any subsequent amendments thereof. High 
pressure steel cylinders covered by this order have a water capacity up 
to 450 liters, and a gas capacity ranging from 8 to 702 cubic feet, 
regardless of corresponding service pressure levels and regardless of 
physical dimensions, finish or coatings.
    Excluded from the scope of the order are high pressure steel 
cylinders manufactured to U-ISO-9809-1 and 2 specifications and 
permanently impressed with ISO or UN symbols. Also excluded from the 
order are acetylene cylinders, with or without internal porous mass, 
and permanently impressed with 8A or 8AL in accordance with DOT 
regulations.
    Merchandise covered by the order is classified in the Harmonized 
Tariff Schedule of the United States (``HTSUS'') under subheading 
7311.00.00.30. Subject merchandise may also enter under HTSUS 
subheadings 7311.00.00.60 or 7311.00.00.90. Although the HTSUS 
subheadings are provided for convenience and customs purposes, the 
written description of the merchandise under the order is dispositive.

Methodology

    We are conducting this administrative review in accordance with 
section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the Act). 
For each of the subsidy programs found countervailable, we 
preliminarily find 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.\6\ For a full description 
of the methodology underlying our preliminary conclusions, see the 
Preliminary Decision Memorandum.\7\
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    \6\ 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.
    \7\ A list of topics discussed in the Preliminary Decision 
Memorandum can be found in Appendix I to this notice.
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    In making these findings, we relied, in part, on facts available, 
and because we find that either the GOC or the respondent company did 
not act to the best of their ability to respond to our requests for 
information, we drew an adverse inference where appropriate in 
selecting from among the facts otherwise available.\8\ For further 
information, see ``Use of Facts Otherwise Available and Adverse 
Inferences'' in the Preliminary Decision Memorandum.
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    \8\ See sections 776(a) and (b) of the Act.
    \9\ As discussed in the Preliminary Decision Memorandum, we have 
found the following companies to be cross-owned with BTIC: Tianjin 
Tianhai High Pressure Container Co., Ltd.; Langfang Tianhai High 
Pressure Container Co., Ltd.; Beijing Jingcheng Machinery Electric 
Holding Co., Ltd.; and Beijing Jingcheng Machinery Electric Co., 
Ltd.
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Preliminary Results of the Review

    We preliminarily find that the following net countervailable 
subsidy rate exists for the mandatory respondent, BTIC, for the period 
January 1, 2016, through December 31, 2016:

------------------------------------------------------------------------
                                                               Subsidy
                                                               Rate Ad
                          Company                              Valorem
                                                              (percent)
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Beijing Tianhai Industry Co., Ltd.\9\......................        37.77
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Assessment Rates

    Upon issuance of the final results of this administrative review, 
Commerce shall determine, and U.S. Customs and Border Protection (CBP) 
shall assess, countervailing duties on all appropriate entries covered 
by this review. We intend to issue assessment instructions to CBP 15 
days after publication of the final results of this review.

Cash Deposit Requirements

    Pursuant to section 751(a)(2)(C) of the Act, we also intend, upon 
publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amount indicated 
above for BTIC, on shipments of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the date of 
publication of the final results of this

[[Page 31953]]

administrative review. For all non-reviewed firms, CBP will continue to 
collect cash deposits of estimated countervailing duties at the most 
recent company-specific or all-others rate applicable to the company, 
as appropriate. These cash deposit requirements, when imposed, shall 
remain in effect until further notice.

Disclosure and Public Comment

    We will disclose to parties in this review the calculations 
performed in reaching the preliminary results within five days of 
publication in the Federal Register of these preliminary results.\10\ 
Unless Commerce instructs otherwise, interested parties may submit 
written comments (case briefs) on the preliminary results no later than 
30 days from the date of publication of this Federal Register notice, 
and rebuttal comments (rebuttal briefs) within five days after the time 
limit for filing case briefs.\11\ Pursuant to 19 CFR 351.309(d)(2), 
rebuttal briefs must be limited to issues raised in the case briefs. 
Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit 
arguments are requested to submit with the argument: (1) A statement of 
the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.\12\
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    \10\ See 19 CFR 351.224(b).
    \11\ See 19 CFR 351.309(c)(1)(ii); 351.309(d)(1); and 19 CFR 
351.303 (for general filing requirements).
    \12\ See 19 CFR 351.309(c)(2) and (d)(2).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to the issues raised in the case and 
rebuttal briefs, must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, filed electronically via 
ACCESS by 5 p.m. Eastern Time within 30 days after the date of 
publication of this notice.\13\ Hearing requests should contain the 
party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a date 
and time to be determined.\14\ Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.
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    \13\ See 19 CFR 351.310(c).
    \14\ See 19 CFR 351.310(d).
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    Unless the deadline is extended pursuant to section 751(a)(3)(A) of 
the Act, we intend to issue the final results of this administrative 
review, including the results of our analysis of the issues raised by 
the parties in their comments, no later than 120 days after the date of 
publication of this notice.
    These preliminary results and notice are issued and published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 
351.221(b)(4).

    Dated: July 3, 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

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Application of the Countervailing Duty Law to Imports From the 
PRC
V. Subsidies Valuation Information
VI. Benchmarks and Interest Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Disclosure and Public Comment
X. Conclusion

[FR Doc. 2018-14730 Filed 7-9-18; 8:45 am]
 BILLING CODE 3510-DS-P