Notice2021-25280
Steel Propane Cylinders From the People's Republic of China: Notice of Initiation and Preliminary Results of Antidumping Duty Changed Circumstance Review
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 19, 2021
Effective
November 19, 2021
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The Department of Commerce (Commerce) is initiating a changed circumstances review of the antidumping duty (AD) order on steel propane cylinders from the People's Republic of China (China). Further, Commerce preliminarily determines that Yi Jun Hong Kong Limited (Yi Jun) is the successor-in-interest to Hong Kong GSBF Company Limited (GSBF) and should be assigned the same AD cash deposit rates for purposes of determining AD liability. Interested parties are invited to comment on these preliminary results.
Full Text
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<title>Federal Register, Volume 86 Issue 221 (Friday, November 19, 2021)</title>
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[Federal Register Volume 86, Number 221 (Friday, November 19, 2021)]
[Notices]
[Pages 64899-64901]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25280]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-086]
Steel Propane Cylinders From the People's Republic of China:
Notice of Initiation and Preliminary Results of Antidumping Duty
Changed Circumstance Review
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) is initiating a changed
circumstances review of the antidumping duty (AD) order on steel
propane cylinders from the People's Republic of China (China). Further,
Commerce preliminarily determines that Yi Jun Hong Kong Limited (Yi
Jun) is the successor-in-interest to Hong Kong GSBF Company Limited
(GSBF) and should be assigned the same AD cash deposit rates for
purposes of determining AD liability. Interested parties are invited to
comment on these preliminary results.
DATES: Effective November 19, 2021.
FOR FURTHER INFORMATION CONTACT: Katherine Sliney, 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) 482-2437.
SUPPLEMENTARY INFORMATION:
Background
On August 15, 2019, Commerce published in the Federal Register the
AD order on steel propane cylinders from China.\1\ On September 30,
2021, Commerce received a request on behalf of Yi Jun for an expedited
changed circumstances review, pursuant to section 751(b)(1) of the
Tariff Act of 1930, as amended (the Act) and 19 CFR 351.216(b), to
establish Yi Jun as the successor-in-interest to GSBF, a Hong Kong
trading company and exporter of steel propane cylinders from China
produced by GSBF's affiliated producer, GSBF Tank, and thus, entitled
to the AD cash deposit rate of GSBF.\2\ We did not receive comments
from other interested parties concerning this request.
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\1\ See Steel Propane Cylinders from the People's Republic of
China and Thailand: Amended Final Determination of Sales at Less
Than Fair Value and Antidumping Duty Orders, 84 FR 41703 (August 15,
2019) (Order).
\2\ See Yi Jun's Letter, ``Steel Propane Cylinders from the
People's Republic of China--Yi Jun/GSBF Changed Circumstances
Review,'' dated September 30, 2021 (CCR Request).
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Scope of the Order
The merchandise covered by the Order 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
[[Page 64900]]
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.
The Order 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 Order 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 the Order 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.
Initiation and Preliminary Results
Pursuant to section 751(b)(1) of the Act, Commerce will conduct a
changed circumstances review upon receipt of information concerning, or
a request from, an interested party for a review of an AD order which
shows changed circumstances sufficient to warrant a review of the
order. In the past, Commerce has used changed circumstances reviews to
address the applicability of cash deposit rates after there have been
changes in the name or structure of a respondent, such as a merger or
spinoff (`successor-in-interest' or `successorship' determinations).\3\
Based on a review of the request from Yi Jun, and in accordance with
section 751(b) of the Act and 19 CFR 351.216(d) and (e), we find that
the information submitted in the CCR Request supporting Yi Jun's claim
that it should be treated as the successor-in-interest to GSBF is
sufficient to warrant such a review to determine whether Yi Jun is
entitled to GSBF's AD cash deposit rate.
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\3\ See, e.g., Diamond Sawblades and Parts Thereof from the
People's Republic of China: Initiation and Preliminary Results of
Antidumping Duty Changed Circumstances Review, 82 FR 51605, 51606
(November 7, 2017) (Diamond Sawblades Preliminary), unchanged in
Diamond Sawblades and Parts Thereof from the People's Republic of
China: Final Results of Antidumping Duty Changed Circumstances
Review, 82 FR 60177 (December 19, 2017) (Diamond Sawblades Final).
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Section 351.221(c)(3)(ii) of Commerce's regulations permits
Commerce to combine the notice of initiation of a changed circumstances
review and the notice of preliminary results if Commerce concludes that
expedited action is warranted.\4\ In this instance, because the record
contains information necessary to make a preliminary finding, we find
that expedited action is warranted and have combined the notice of
initiation and the notice of preliminary results.\5\
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\4\ See 19 CFR 351.221(c)(3)(ii); see also Certain Pasta from
Italy: Initiation and Preliminary Results of Antidumping Duty
Changed Circumstances Review, 80 FR 33480, 33480-41 (June 12, 2015)
(Pasta from Italy Preliminary Results), unchanged in Certain Pasta
from Italy: Final Results of Changed Circumstances Review, 80 FR
48807 (August 14, 2015) (Pasta from Italy Final Results.
\5\ See, e.g., Pasta from Italy Preliminary Results, 80 FR at
33480-41, unchanged in Pasta from Italy Final Results, 80 FR at
48807.
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Accordingly, pursuant to section 751(b) of the Act, we have
conducted a successor-in-interest analysis in response to Yi Jun's
request. In making a successor-in-interest determination, Commerce
examines several factors, including, but not limited to, changes in the
following: (1) Management; (2) production facilities; (3) supplier
relationships; and (4) customer base.\6\ While no single factor or
combination of factors will necessarily provide a dispositive
indication of a successor-in-interest relationship, generally, Commerce
will consider the new company to be the successor to the previous
company if the new company's resulting operation is not materially
dissimilar to that of its predecessor.\7\ Thus, if the evidence
demonstrates that, with respect to the production and sales of the
subject merchandise, the new company operates as essentially the same
business entity as the former company, Commerce will accord the new
company the same antidumping treatment as its predecessor.\8\
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\6\ See, e.g., Diamond Sawblades Final; and Certain Frozen
Warmwater Shrimp from India: Initiation and Preliminary Results of
Antidumping Duty Changed Circumstances Review, 83 FR 37784 (August
2, 2018), unchanged in Certain Frozen Warmwater Shrimp from India:
Notice of Final Results of Antidumping Duty Changed Circumstances
Review, 83 FR 49909 (October 3, 2018).
\7\ Id.
\8\ See also, e.g., Notice of Initiation and Preliminary Results
of Antidumping Duty Changed Circumstances Review: Certain Frozen
Warmwater Shrimp from India, 77 FR 64953 (October 24, 2012),
unchanged in Final Results of Antidumping Duty Changed Circumstances
Review: Certain Frozen Warmwater Shrimp from India, 77 FR 73619
(December 11, 2012).
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We preliminarily determine that Yi Jun supplied sufficient evidence
to determine that Yi Jun is the successor-in-interest to GSBF.
Specifically, Yi Jun provided documentation demonstrating approval of
GSBF's name change by GSBF's shareholders \9\ (which remained unchanged
from the underlying investigation, as well as the shareholders of its
affiliated supplier, GSBF Tank), noting that GSBF's shareholders
decided to change the company name and start building their own brand.
GSBF's shareholders approved of the name change in January 2020, but Yi
Jun continued to do business as GSBF until its corporate bank account
was changed to reflect the new name in September 2021.\10\ Yi Jun
asserts that the change in company name was cosmetic only, was made
with the sole purpose of developing a distinct brand, and had no impact
on the internal or external operation and
[[Page 64901]]
structure of the company.\11\ As support, Yi Jun provides the name
change certificate issued by the Hong Kong Registrar of Companies \12\
and GSBF's business license before and after the change to Yi Jun which
reflect a ``replacement'' business registration, which substantiates
that there was no change in address or the material details of the
registration.\13\ Yi Jun also provided updated articles of association
that reflect the name change, but are otherwise unchanged from the
prior articles.\14\ The lack of changes to the articles supports the
claim that Yi Jun's operations with respect to the sales of subject
merchandise have not materially changed as a result of its name change.
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\9\ See CCR Request at Exhibit 1.
\10\ See CCR Request at 4-5.
\11\ Id.
\12\ Id. at Exhibit 2.
\13\ Id. at Exhibit 3 and 4.
\14\ Id. at Exhibit 5.
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In addition, the record includes a list of company officials before
and after the name change, supporting Yi Jun's assertion that the
managing staff remained the same.\15\ Further, Yi Jun notes that the
subject merchandise sold to the U.S. by both GSBF and Yi Jun were all
sourced from GSBF Tank, and that neither GSBF nor Yi Jun manufactures
steel propane cylinders (i.e., the company has been and will continue
to only serve as an exporter).\16\ Moreover, Yi Jun provided lists of
both its suppliers and U.S. customers, before and after the name change
to support its assertion that there have been no material changes to
GSBF's suppliers \17\ or its customer base following the name change.
Yi Jun notes it has only added one U.S. customer through the normal
course of business.\18\
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\15\ Id. at Exhibit 6.
\16\ Id. at 3.
\17\ Yi Jun clarified that sales of subject merchandise between
GSBF Tank and GSBF which were subsequently exported to the United
States by GSBF during the underlying investigation were made through
an unaffiliated Chinese trading company, and that though this
trading company was listed as a supplier of GSBF, this was merely a
paper transaction. However, GSBF Tank has since discontinued this
relationship, and GSBF Tank now sells directly to GSBF/Yi Jun and no
longer utilizes the unaffiliated trading company. Id. at 6-7.
\18\ Id. at Exhibit 7 and 8.
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Therefore, based on the aforementioned evidence on the record, we
preliminarily determine that Yi Jun is the successor-in-interest to
GSBF, as the change in the business' name was not accompanied by
significant changes to its management and operations, supplier
relationships, or customer base.\19\ Thus, we preliminarily determine
that Yi Jun operates as essentially the same business entity as GSBF,
that Yi Jun is the successor-in-interest to GSBF, and that Yi Jun
should receive the same AD cash deposit rate with respect to subject
merchandise as its predecessor, GSBF.
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\19\ Yi Jun did not provide evidence concerning changes to
production facilities, as neither the prior company GSBF, nor Yi Jun
produces steel propane cylinders. As noted above, the company acts
only as an exporter of the subject merchandise.
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Should our final results remain unchanged from these preliminary
results, we will instruct U.S. Customs and Border Protection to assign
entries of subject merchandise exported by Yi Jun the AD cash deposit
rate applicable to GSBF. Commerce will issue its final results of the
reviews in accordance with the time limits set forth in 19 CFR
351.216(e).
Public Comment
Pursuant to 19 CFR 351.310(c), any interested party may request a
hearing within 14 days of publication of this notice.\20\ In accordance
with 19 CFR 351.309(c)(1)(ii), interested parties may submit case
briefs not later than 14 days after the date of publication of this
notice.\21\ Rebuttal briefs, limited to issues raised in the case
briefs, may be filed no later than seven days after the case briefs, in
accordance with 19 CFR 351.309(d). Parties who submit case or rebuttal
briefs are encouraged to submit with each argument: (1) A statement of
the issue; (2) a brief summary of the argument; and (3) a table of
authorities.\22\ All comments are to be filed electronically using
ACCESS, available to registered users at <a href="https://access.trade.gov">https://access.trade.gov</a>, and
must also be served on interested parties. An electronically filed
document must be received successfully in its entirety by ACCESS by
5:00 p.m. Eastern Time on the day it is due.\23\ Note that Commerce has
temporarily modified certain requirements for serving documents
containing business proprietary information, until further notice.\24\
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\20\ Commerce is exercising its discretion under 19 CFR
351.310(c) to alter the time limit for requesting a hearing.
\21\ Commerce is exercising its discretion under 19 CFR
351.309(c)(1)(ii) to alter the time limit for the filing of case
briefs.
\22\ See 19 CFR 351.309(c)(2).
\23\ See 19 CFR 351.303(b).
\24\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020).
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Consistent with 19 CFR 351.216(e), we will issue the final results
of this changed circumstances review no later than 270 days after the
date on which this review was initiated, or within 45 days if all
parties agree to our preliminary finding.
Notification to Interested Parties
This notice is published in accordance with sections 751(b)(1) and
777(i) of the Act and 19 CFR 351.216(b), 351.221(b) and 351.221(c)(3).
Dated: November 15, 2021.
Ryan Majerus,
Deputy Assistant Secretaryfor Policy and Negotiations,Performing the
Non-Exclusive Functions and Duties of theAssistant Secretary for
Enforcement and Compliance.
[FR Doc. 2021-25280 Filed 11-18-21; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on November 19, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.