Notice2022-27688

Refillable Stainless Steel Kegs From the People's Republic of China: Preliminary Results of Countervailing Duty Administrative Review, Rescission of Review in Part; 2020

Primary source

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Published
December 21, 2022

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) preliminarily determines that certain producers/exporters of refillable stainless steel kegs (kegs) from the People's Republic of China (China) received countervailable subsidies during the period of review (POR) from January 1, 2020, through December 31, 2020. In addition, we are rescinding the review with respect to 35 companies. Interested parties are invited to comment on these preliminary results.

Full Text

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<title>Federal Register, Volume 87 Issue 244 (Wednesday, December 21, 2022)</title>
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[Federal Register Volume 87, Number 244 (Wednesday, December 21, 2022)]
[Notices]
[Pages 78045-78047]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-27688]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-094]


Refillable Stainless Steel Kegs From the People's Republic of 
China: Preliminary Results of Countervailing Duty Administrative 
Review, Rescission of Review in Part; 2020

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that certain producers/exporters of refillable stainless 
steel kegs (kegs) from the People's Republic of China (China) received 
countervailable subsidies during the period of review (POR) from 
January 1, 2020, through December 31, 2020. In addition, we are 
rescinding the review with respect to 35 companies. Interested parties 
are invited to comment on these preliminary results.

DATES: Applicable December 21, 2022.

FOR FURTHER INFORMATION CONTACT: Theodore Pearson, AD/CVD Operations, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230; telephone: (202) 482-2631.

Background

    On February 4, 2022, Commerce published the notice of initiation of 
an administrative review of the countervailing duty (CVD) order on kegs 
from China.\1\ On August 1, 2022, Commerce extended the deadline for 
the preliminary results of this administrative review by 105 days, 
until December 16, 2022.\2\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 87 FR 6487 (February 4, 2022) (Initiation 
Notice).
    \2\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review; 2020,'' dated 
August 1, 2022.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\3\ 
A list of topics discussed in the Preliminary Decision Memorandum is 
included as the appendix 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 <a href="http://access.trade.gov">http://access.trade.gov</a>. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at <a href="https://access.trade.gov/public/FRNoticesListLayout.aspx">https://access.trade.gov/public/FRNoticesListLayout.aspx</a>.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of Countervailing Duty Administrative Review, Rescission of 
Review in Part, 2020: Refillable Stainless Steel Kegs 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 products covered by the order are kegs. For a complete 
description of the scope, see the Preliminary Decision Memorandum.\4\
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    \4\ See Preliminary Decision Memorandum.
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Methodology

    Commerce is conducting this administrative review in accordance 
with section 751(a)(1)(A) of the Tariff Act of 1930, as amended (the 
Act). For each subsidy program found countervailable, we preliminarily 
find that there is a subsidy, (i.e., a government-provided financial 
contribution that gives rise to a benefit to the recipient, and that 
the subsidy is specific).\5\ For a full description of the methodology 
underlying our

[[Page 78046]]

conclusions, including our reliance, in part, on adverse facts 
available pursuant to sections 776(a) and (b) of the Act, see the 
Preliminary Decision Memorandum.
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    \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.
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Rescission of Administrative Review, in Part

    Pursuant to 19 CFR 351.213(d)(1), Commerce will rescind an 
administrative review, in whole or in part, if the parties that 
requested a review withdraw the request within 90 days of the date of 
publication of the notice of initiation. Commerce received a timely-
filed withdrawal request with respect to 37 companies from American Keg 
Company (the petitioner).\6\ Of the 37 companies, two companies, 
Guangzhou Jingye Machinery Co., Ltd. (Jingye) and Guangzhou Ulix 
Industrial & Trading Co., Ltd. (Ulix), filed requests for review of 
themselves which were not withdrawn.\7\ Because the withdrawal request 
from the petitioner was timely filed, and no other parties requested a 
review of the other 35 companies, in accordance with 19 CFR 
351.213(d)(1), Commerce is rescinding this review of the Order with 
respect to the 35 companies. For a complete list of the companies, see 
Appendix to the Preliminary Decision Memorandum.
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    \6\ See Petitioner's Letter, ``Withdrawal of Request for 
Administrative Review,'' dated April 20, 2022.
    \7\ See Ulix and Jingye's Letter, ``Request for Administrative 
Review,'' dated January 3, 2022.
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Preliminary Rate for Non-Selected Companies Under Review

    There are two companies, Jingye and Ulix, for which a review was 
requested and not rescinded, and which were not selected as mandatory 
respondents or found to be cross-owned with a mandatory respondent. The 
statute and Commerce's regulations do not directly address the 
establishment of rates to be applied to companies not selected for 
individual examination where Commerce limits its examination in an 
administrative review pursuant to section 777A(e)(2) of the Act. 
However, Commerce normally determines the rates for non-selected 
companies in reviews in a manner that is consistent with section 
705(c)(5) of the Act, which provides the basis for calculating the all-
others rate in an investigation.
    Section 705(c)(5)(A)(i) of the Act instructs Commerce, as a general 
rule, to calculate an all-others rate equal to the weighted average of 
the countervailable subsidy rates established for exporters and/or 
producers individually examined, excluding any rates that are zero, de 
minimis, or based entirely on facts available. In this review, the 
preliminary rate calculated for Ningbo Master International Trade Co., 
Ltd. (Ningbo Master), the sole mandatory respondent, was not zero, de 
minimis, or based entirely on facts available. Therefore, for the 
companies for which a review was requested that were not selected as 
mandatory company respondents, and for which Commerce did not receive a 
timely request for withdrawal of review, Commerce based the preliminary 
subsidy rate on the preliminary rate calculated for Ningbo Master.

Preliminary Results of Review

    We preliminarily find the following net countervailable subsidy 
rates for the period January 1, 2020, through December 31, 2020, are as 
follows:
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    \8\ Cross-owned affiliates are: Ningbo Major Draft Beer 
Equipment Co., Ltd. and Zhejiang Major Technology Co., Ltd.
    \9\ This rate is based on the rate for the respondent that was 
selected for individual review, excluding rates that are zero, de 
minimis, or based entirely on facts available. See section 
735(c)(5)(A) of the Act.

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                                                           Subsidy rate
                  Manufacturer/exporter                     (percent ad
                                                             valorem)
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Ningbo Master International Trade Co., Ltd \8\..........            5.13
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 Review-Specific Average Rate Applicable to the Following Companies \9\
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Guangzhou Jingye Machinery Co., Ltd.....................            5.13
Guangzhou Ulix Industrial & Trading Co., Ltd............            5.13
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Disclosure and Public Comment

    We will disclose to parties in this review, the calculations 
performed for these preliminary results within five days after the date 
of publication of this notice.\10\ Interested parties case briefs no 
later than 30 days after the date of publication of these preliminary 
results of review.\11\ Rebuttals to case briefs may be filed no later 
than seven days after the case briefs are filed, and all rebuttal 
comments must be limited to comments raised in the case briefs.\12\ 
Note that Commerce has temporarily modified certain of its requirements 
for serving documents containing business proprietary information until 
further notice.\13\
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    \10\ See 19 CFR 351.224(b).
    \11\ See 19 CFR 351.309(c).
    \12\ See 19 CFR 351.309(d).
    \13\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 29615 (May 18, 
2020); and 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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    Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who submit 
case briefs or rebuttal briefs in this review 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.
    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, filed 
electronically using ACCESS. An electronically-filed request must be 
received successfully, and in its entirety, by ACCESS by 5:00 p.m. 
Eastern Time, within 30 days after the date of publication of this 
notice. 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, parties will be notified of the date and 
time for the hearing to be determined.
    Unless extended, we intend to issue the final results of this 
administrative review, which will include the results of our analysis 
of the issues raised in the case briefs, within 120 days of publication 
of these preliminary results in the Federal Register, pursuant to 
section 751(a)(3)(A) of the Act and 19 CFR 351.213(h).

Cash Deposit Requirements

    Pursuant to section 751(a)(2)(C) of the Act, Commerce intends, upon 
publication of the final results, to instruct CBP to collect cash 
deposits of estimated countervailing duties in the amounts shown for 
each of the respondents listed above 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 
administrative review. If the rate calculated in the final results is 
zero or de minimis, no cash deposit will be required on shipments of 
the 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, CBP will continue to collect cash 
deposits of estimated countervailing duties at the all-others rate or 
the most recent company-specific rate applicable to the company, as 
appropriate. These cash deposit requirements, when imposed, shall 
remain in effect until further notice.

Assessment Rates

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily

[[Page 78047]]

assigned subsidy rates in the amounts shown above for the producers/
exporters shown above. Upon completion of the administrative review, 
consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), 
Commerce shall determine, and CBP shall assess, countervailing duties 
on all appropriate entries covered by this review. We intend to issue 
assessment instructions to CBP no earlier than 35 days after the date 
of publication of the final results of this review in the Federal 
Register. If a timely summons is filed at the U.S. Court of 
International Trade, the assessment instructions will direct CBP not to 
liquidate relevant entries until the time for parties to file a request 
for a statutory injunction has expired (i.e., within 90 days of 
publication).
    For the companies for which this review is rescinded, we will 
instruct CBP to assess countervailing duties on all appropriate entries 
at a rate equal to the cash deposit of estimated countervailing duties 
required at the time of entry, or withdrawal from warehouse, for 
consumption, during the period January 1, 2020, through December 31, 
2020, in accordance with 19 CFR 351.212(c)(l)(i).

Notification to Interested Parties

    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 
351.213 and 351.221(b)(4).

    Dated: December 14, 2022.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Partial Rescission of Administrative Review
V. Non-Selected Companies Under Review
VI. Diversification of China's Economy
VII. Use of Faces Otherwise Available and Application of Adverse 
Inferences
VIII. Subsidies Valuation
IX. Interest Rate, Discount Rate, Input, and Electricity Benchmarks
X. Analysis of Programs
XI. Recommendation

[FR Doc. 2022-27688 Filed 12-20-22; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on December 21, 2022.

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