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