83 FR 63471 - High Pressure Steel Cylinders From the People's Republic of China: Final Results of Countervailing Duty Administrative Review; 2016

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 236 (December 10, 2018)

Page Range63471-63472
FR Document2018-26651

The Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers/exporters of high pressure steel cylinders from the People's Republic of China (China) for the period of review January 1, 2016, through December 31, 2016.

Federal Register, Volume 83 Issue 236 (Monday, December 10, 2018)
[Federal Register Volume 83, Number 236 (Monday, December 10, 2018)]
[Notices]
[Pages 63471-63472]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-26651]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-978]


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

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/exporters of 
high pressure steel cylinders from the People's Republic of China 
(China) for the period of review January 1, 2016, through December 31, 
2016.

DATES: Applicable December 10, 2018.

FOR FURTHER INFORMATION CONTACT: Toby Vandall, AD/CVD Operations, 
Office I, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-1664.

Background

    Commerce published the preliminary results of the administrative 
review of the CVD order on steel cylinders from the PRC on July 10, 
2018.\1\ On November 6, 2018, we postponed the final results of this 
review until November 30, 2018.\2\ In this review we examined Beijing 
Tianhai Industry Co., Ltd. (BTIC), the sole company for which a review 
was requested. Based on an analysis of the comments received, Commerce 
has made certain changes to the subsidy rate that was preliminarily 
determined for BTIC. The final subsidy rate is listed in the ``Final 
Results of Administrative Review'' section below.
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    \1\ See High Pressure Steel Cylinders from the People's Republic 
of China: Preliminary Results of Countervailing Duty Administrative 
Review; 2016, 83 FR 31951 (July 10, 2018) (Preliminary Results) and 
accompanying Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``High Pressure Steel Cylinders from the 
People's Republic of China: Extension of Deadline for Final Results 
of the Countervailing Duty Administrative Review; 2016,'' November 
6, 2018.
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Scope of the Order

    The products covered by this order are 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.

Analysis of Comments Received

    The issues raised by the Government of China (GOC), BTIC, and 
Norris Cylinder Company (the petitioner) in their case and rebuttal 
briefs are addressed in the Issues and Decision Memorandum.\3\ The 
issues are identified in the Appendix to this notice. 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 in the Central Records 
Unit, room B8024 of the main Department of Commerce building. In 
addition, a complete version of the Issues and Decision Memorandum can 
be accessed directly on the Internet at https://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and electronic versions 
of the Issues and Decision Memorandum are identical in content.
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    \3\ See Memorandum, ``Decision Memorandum for the Final 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 (Issues and 
Decision Memorandum).
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Changes Since the Preliminary Results

    Based on comments received from interested parties, we have made 
revisions to some of our subsidy rate calculations for BTIC. For a 
discussion of these issues, see the Issues and Decision Memorandum.

Methodology

    We conducted 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 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.\4\ For a full description of the methodology underlying our 
conclusions, see the Issues and Decision Memorandum.
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    \4\ 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.
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Final Results of the Review

    In accordance with section 777A(e) of the Act and 19 CFR 
351.221(b)(5), we 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.\5\..................           25.57
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[[Page 63472]]

Assessment Rates

    In accordance with 19 CFR 351.212(b)(2), we intend to issue 
appropriate instructions to U.S. Customs and Border Protection (CBP) 15 
days after the date of publication of the final results of this review. 
We will instruct CBP to liquidate shipments of subject merchandise 
produced and/or exported by the company listed above, entered, or 
withdrawn from warehouse, for consumption, from January 1, 2016, 
through December 31, 2016, at the ad valorem rate listed above.
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    \5\ 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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Cash Deposit Requirements

    We intend also to instruct CBP to collect cash deposits of 
estimated countervailing duties in the amount shown 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 review. For all non-reviewed firms, Commerce will 
instruct CBP to continue to collect cash deposits at the most recent 
company-specific or all-others rate applicable to the company, as 
appropriate. Accordingly, the cash deposit requirements that will be 
applied to companies covered by this order, but not examined in this 
administrative review, are those established in the most recently 
completed segment of the proceeding for each company. These cash 
deposit requirements, when imposed, shall remain in effect until 
further notice.

Administrative Protective Order

    This notice also serves as a final reminder to parties subject to 
an administrative protective order (APO) of their responsibilities 
concerning the return or destruction of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3), which 
continues to govern business proprietary information in this segment of 
the proceeding. Timely written 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 
terms of an APO is a violation which is subject to sanction.
    These final results are issued and published in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: November 30, 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 Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Subsidies Valuation Information
VI. Benchmarks and Discount Rates
VII. Analysis of Programs
VIII. Analysis of Comments
    Comment 1: Whether to Include or Reject the Russian Benchmark 
Prices for the Provision of Seamless Tube Steel for LTAR
    Comment 2: If Including the Russian Benchmark Prices, Whether to 
Use a Weighted Average World Price to Calculate the Benchmark
    Comment 3: Whether to Base Benchmark Prices for Billets and 
Seamless Tube Steel on a Basket HTS Provision
    Comment 4: Whether to Average Three Datasets Rather than Two 
Datasets for the Benchmark for the Provision of Seamless Tube Steel 
for LTAR
    Comment 5: Whether to Use the Petitioner's Ocean Freight Data
    Comment 6: Whether to Change the Electricity Benchmark
    Comment 7: Whether to Calculate Separate Subsidy Rates for High-
Quality Chromium Molybdenum Alloy Steel Billets and Blooms and for 
Standard Commodity Steel Billets
    Comment 8: Whether to Apply AFA to the Export Buyer's Credit 
Program
    Comment 9: Whether Commerce Properly Applied the AFA Hierarchy 
to the Export Buyer's Credit Program
    Comment 10: Whether to Use BTIC's Updated Spreadsheet to 
Calculate the Other Subsidies
IX. Conclusion

 [FR Doc. 2018-26651 Filed 12-7-18; 8:45 am]
 BILLING CODE 3510-DS-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesApplicable December 10, 2018.
ContactToby Vandall, AD/CVD Operations, Office I, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-1664.
FR Citation83 FR 63471 

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