Notice2023-11004
Certain Non-Refillable Steel Cylinders From India: Initiation of Countervailing Duty Investigation
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
May 24, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Full Text
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<title>Federal Register, Volume 88 Issue 100 (Wednesday, May 24, 2023)</title>
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[Federal Register Volume 88, Number 100 (Wednesday, May 24, 2023)]
[Notices]
[Pages 33580-33583]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-11004]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-913]
Certain Non-Refillable Steel Cylinders From India: Initiation of
Countervailing Duty Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable May 17, 2023.
FOR FURTHER INFORMATION CONTACT: Shane Subler or Zachariah Hall, AD/CVD
Operations, Office VIII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-6241 and (202)
482-6261, respectively.
SUPPLEMENTARY INFORMATION:
The Petition
On April 27, 2023, the U.S. Department of Commerce (Commerce)
received a countervailing duty (CVD) petition concerning imports of
certain non-refillable steel cylinders (cylinders) from India filed in
proper form on behalf of Worthington Industries (the petitioner), a
U.S. producer of cylinders.\1\ The CVD petition was accompanied by an
antidumping duty (AD) petition concerning imports of cylinders from
India.\2\
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\1\ See Petitioner's Letter, ``Certain Non-Refillable Cylinders
from India--Petition for the Imposition of Antidumping and
Countervailing Duties,'' dated April 27, 2023 (Petition).
\2\ Id.
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On May 1 and 2, 2023, Commerce requested supplemental information
pertaining to certain aspects of the Petition.\3\ On May 5 and 8, 2023,
the petitioner filed timely responses to these requests for additional
information.\4\
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\3\ See Commerce's Letters, ``Petitions for the Imposition of
Antidumping and Countervailing Duties on Imports of Certain Non-
Refillable Steel Cylinders from India: Supplemental Questions,''
dated May 1, 2023; and ``Petition for the Imposition of
Countervailing Duties on Imports of Certain Non-Refillable Steel
Cylinders from India: Supplemental Questions,'' dated May 2, 2023.
\4\ See Petitioner's Letters, ``Certain Non-Refillable Steel
Cylinders from India--Petitioner's Amendment to Volume I Relating to
General and Injury Information,'' dated May 3, 2023 (General Issues
Supplement); and ``Certain Non-Refillable Steel Cylinders from
India--Petitioner's Amendment to Volume III Relating to
Countervailing Duties,'' dated May 8, 2023.
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In accordance with section 702(b)(1) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that the Government of India
(GOI) is providing countervailable subsidies, within the meaning of
sections 701 and 771(5) of the Act, to producers of cylinders in India,
and that such imports are materially injuring, or threatening material
injury to, the domestic industry producing cylinders in the United
States. Consistent with section 702(b)(1) of the Act and 19 CFR
351.202(b), for those alleged programs on which we are initiating a CVD
investigation, the Petition is supported by information reasonably
available to the petitioner.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry because the petitioner is an interested party as
defined in section 771(9)(C) of the Act. Commerce also finds that the
petitioner demonstrated sufficient industry support with respect to the
initiation of the requested CVD investigation.\5\
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\5\ See ``Determination of Industry Support for the Petition''
section, infra.
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Period of Investigation
Because the Petition was filed on April 27, 2023, the period of
investigation (POI) is January 1, 2022, through December 31, 2022.\6\
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\6\ See 19 CFR 351.204(b)(2).
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Scope of the Investigation
The products covered by the investigation are cylinders from India.
For a full description of the scope of this investigation, see the
appendix to this notice.
Comments on the Scope of the Investigation
As discussed in the Preamble to Commerce's regulations, we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope).\7\ Commerce will consider all comments
received from interested parties and, if necessary, will consult with
interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information, all such
factual information should be limited to public information.\8\ To
facilitate preparation of its questionnaires, Commerce requests that
all interested parties submit such comments by 5:00 p.m. Eastern Time
(ET) on June 6, 2023, which is 20 calendar days from the signature date
of this notice. Any rebuttal comments, which may include factual
information, must be filed by 5:00 p.m. ET on June 16, 2023, which is
10 calendar days from the initial comment deadline.
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\7\ See Antidumping Duties; Countervailing Duties, 62 FR 27296,
27323 (May 19, 1997) (Preamble).
\8\ See 19 CFR 351.102(b)(21) (defining ``factual
information'').
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Commerce requests that any factual information that the parties
consider relevant to the scope of the investigation be submitted during
this time period. However, if a party subsequently finds that
additional factual information pertaining to the scope of the
investigation may be relevant, the party may contact Commerce and
request permission to submit the additional information. All such
submissions must also be filed simultaneously on the record of the
concurrent AD and CVD investigations.
Filing Requirements
All submissions to Commerce must be filed electronically via
Enforcement and Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS), unless an exception
applies.\9\ An
[[Page 33581]]
electronically filed document must be received successfully in its
entirety by the time and date it is due.\10\
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\9\ See Antidumping and Countervailing Duty Proceedings:
Electronic Filing Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011); see also Enforcement and
Compliance; Change of Electronic Filing System Name, 79 FR 69046
(November 20, 2014), for details of Commerce's electronic filing
requirements, effective August 5, 2011. Information on using ACCESS
can be found at <a href="https://access.trade.gov/help.aspx">https://access.trade.gov/help.aspx</a> and a handbook
can be found at <a href="https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf">https://access.trade.gov/help/Handbook_on_Electronic_Filing_Procedures.pdf</a>.
\10\ See 19 CFR 351.303(b)(1).
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Consultations
Pursuant to sections 702(b)(4)(A)(i) and (ii) of the Act, Commerce
notified the GOI of the receipt of the Petition and provided it an
opportunity for consultations with respect to the Petition.\11\
Commerce held consultations with the GOI on May 10, 2023.\12\
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\11\ See Commerce's Letter, ``Countervailing Duty Petition on
Non-Refillable Steel Cylinders from India: Invitation for
Consultations to Discuss the Countervailing Duty Petition,'' dated
April 28, 2023.
\12\ See Memorandum, ``Consultations with Officials from the
Government of India,'' dated May 11, 2023.
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Determination of Industry Support for the Petition
Section 702(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 702(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) at least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 702(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The U.S. International Trade Commission (ITC),
which is responsible for determining whether ``the domestic industry''
has been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\13\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\14\
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\13\ See section 771(10) of the Act.
\14\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F. 2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in the
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product distinct from the scope
of the investigation.\15\ Based on our analysis of the information
submitted on the record, we have determined that cylinders, as defined
in the scope, constitute a single domestic like product, and we have
analyzed industry support in terms of that domestic like product.\16\
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\15\ See Petition at Volume I (pages 13-17); see also General
Issues Supplement at 2 and Exhibits GEN-SUPP-1 and GEN-SUPP-2.
\16\ For a discussion of the domestic like product analysis as
applied to this case and information regarding industry support, see
Countervailing Duty Investigation Initiation Checklist, ``Certain
Non-Refillable Steel Cylinders from India,'' dated concurrently with
this notice (CVD Initiation Checklist), at Attachment II (Analysis
of Industry Support for the Antidumping and Countervailing Duty
Petitions Covering Certain Non-Refillable Steel Cylinders from
India).
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In determining whether the petitioner has standing under section
702(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition with reference to the domestic like product
as defined in the ``Scope of the Investigation,'' in the appendix to
this notice. To establish industry support, the petitioner provided its
own production of the domestic like product in 2022.\17\ The petitioner
stated that there are no other known producers of cylinders in the
United States; therefore, the Petition is supported by 100 percent of
the U.S. industry.\18\ We relied on data provided by the petitioner for
purposes of measuring industry support.\19\
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\17\ See Petition at Volume I (page 3 and Exhibit GEN-2).
\18\ Id. at 2-3 and Exhibit GEN-1; see also General Issues
Supplement at 2 and Exhibit GEN-1.
\19\ See Petition at Volume I (pages 2-3 and Exhibits GEN-1 and
GEN-2); see also General Issues Supplement at 2 and Exhibit GEN-
SUPP-1. For further discussion, see the CVD Initiation Checklist at
Attachment II.
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Our review of the data provided in the Petition, the General Issues
Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition. First, the Petition established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product, and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\20\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
702(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\21\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 702(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition account for more than
50 percent of the production of the domestic like product produced by
that portion of the industry expressing support for, or opposition to,
the Petition.\22\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 702(b)(1) of the Act.\23\
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\20\ See CVD Initiation Checklist at Attachment II; see also
section 702(c)(4)(D) of the Act.
\21\ See CVD Initiation Checklist at Attachment II.
\22\ Id.
\23\ Id.
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Injury Test
Because India is a ``Subsidies Agreement Country'' within the
meaning of section 701(b) of the Act, section 701(a)(2) of the Act
applies to this investigation. Accordingly, the ITC must determine
whether imports of the subject merchandise from India materially
injure, or threaten material injury to, a U.S. industry.
Allegations and Evidence of Material Injury and Causation
The petitioner alleges that imports of the subject merchandise are
benefiting from countervailable subsidies and that such imports are
causing, or threaten to cause, material injury to the U.S.
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industry producing the domestic like product. In addition, the
petitioner alleges that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\24\
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\24\ See Petition at Volume I (pages 12, 17-19, and Exhibits
GEN-1 and GEN-11).
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The petitioner contends that the industry's injured condition is
illustrated by the significant and increasing volume of subject
imports; declining market share; underselling and price depression and/
or suppression; lost sales and revenues; and adverse impact on the
domestic industry's capacity utilization, commercial shipments,
employment variables, and financial performance.\25\ We assessed the
allegations and supporting evidence regarding material injury, threat
of material injury, causation, as well as negligibility, and we have
determined that these allegations are properly supported by adequate
evidence and meet the statutory requirements for initiation.\26\
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\25\ Id. at 19-31 and Exhibits GEN-1 and GEN-8 through GEN-15;
see also General Issues Supplement at 3 and Exhibits GEN-SUPP-3 and
GEN-SUPP-4.
\26\ See CVD Initiation Checklist at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering Certain Non-
Refillable Steel Cylinders from India (Attachment III).
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Initiation of CVD Investigation
Based upon the examination of the Petition and supplemental
responses, we find that the Petition meets the requirements of section
702 of the Act. Therefore, we are initiating a CVD investigation to
determine whether imports of cylinders from India benefit from
countervailable subsidies conferred by the GOI. Based on our review of
the Petition, we find that there is sufficient information to initiate
a CVD investigation on 51 of 52 alleged programs. For a full discussion
of the basis for our decision to initiate on each program, see the
India CVD Initiation Checklist. A public version of the initiation
checklist for this investigation is available on ACCESS. In accordance
with section 703(b)(1) of the Act and 19 CFR 351.205(b)(1), unless
postponed, we will make our preliminary determination no later than 65
days after the date of this initiation.
Respondent Selection
In the Petition, the petitioner identified five companies in India
as producers and/or exporters of cylinders.\27\ Commerce intends to
follow its standard practice in CVD investigations and calculate
company-specific subsidy rates in this investigation. In the event that
Commerce determines that the number of companies is large, and it
cannot individually examine each company based upon Commerce's
resources, Commerce intends to select mandatory respondents based on
quantity and value (Q&V) questionnaires issued to the potential
respondents. Commerce normally selects mandatory respondents in CVD
investigations using U.S. Customs and Border Protection (CBP) entry
data for U.S. imports under the appropriate Harmonized Tariff Schedule
of the United States (HTSUS) subheadings listed in the scope of the
investigation. However, for this investigation, the main HTSUS
subheadings under which the subject merchandise would enter
(7311.00.0060 and 7311.00.0090,) are basket categories under which non-
subject merchandise may enter. Therefore, we cannot rely on CBP entry
data in selecting respondents. We, instead, intend to issue Q&V
questionnaires to each potential respondent for which the petitioner
has provided a complete address.
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\27\ See Petition at Volume I (Exhibit GEN-8).
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Exporters/producers of cylinders from India that do not receive Q&V
questionnaires by mail may still submit a response to the Q&V
questionnaire and can obtain the Q&V questionnaire from Enforcement and
Compliance's website at <a href="https://access.trade.gov/resources/questionnaires/questionnaires-ad.html">https://access.trade.gov/resources/questionnaires/questionnaires-ad.html</a>. Responses to the Q&V
questionnaire must be submitted by the relevant Indian producers/
exporters no later than 5:00 p.m. ET on May 31, 2023, which is two
weeks from the signature date of this notice. All Q&V responses must be
filed electronically via ACCESS. An electronically filed document must
be received successfully, in its entirety, by ACCESS no later than 5:00
p.m. ET on the deadline noted above. Commerce intends to finalize its
decision regarding respondent selection within 20 days of publication
of this notice.
Distribution of Copies of the Petition
In accordance with section 702(b)(4)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the GOI via ACCESS. Furthermore, to the extent practicable,
Commerce will attempt to provide a copy of the public version of the
Petition to each exporter named in the Petition, as provided under 19
CFR 351.203(c)(2).
ITC Notification
Commerce will notify the ITC of its initiation, as required by
section 702(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of cylinders from India are materially
injuring, or threatening material injury to, a U.S. industry.\28\ A
negative ITC determination will result in the investigation being
terminated.\29\ Otherwise, the investigation will proceed according to
statutory and regulatory time limits.
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\28\ See section 703(a)(1) of the Act.
\29\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i)-(iv). Section 351.301(b) of Commerce's
regulations requires any party, when submitting factual information, to
specify under which subsection of 19 CFR 351.102(b)(21) the information
is being submitted \30\ and, if the information is submitted to rebut,
clarify, or correct factual information already on the record, to
provide an explanation identifying the information already on the
record that the factual information seeks to rebut, clarify, or
correct.\31\ Time limits for the submission of factual information are
addressed in 19 CFR 351.301, which provides specific time limits based
on the type of factual information being submitted. Interested parties
should review the regulations prior to submitting factual information
in this investigation.
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\30\ See 19 CFR 351.301(b).
\31\ See 19 CFR 351.301(b)(2).
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Extensions of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by Commerce. In general, an extension request will
be considered untimely if it is filed after the expiration of the time
limit established under 19 CFR 351.301. For submissions that are due
from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. ET on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which
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extension requests will be considered untimely for submissions which
are due from multiple parties simultaneously. In such a case, Commerce
will inform parties in a letter or memorandum of the deadline
(including a specified time) by which extension requests must be filed
to be considered timely. An extension request must be made in a
separate, standalone submission; under limited circumstances we will
grant untimely filed requests for the extension of time limits, where
we determine, based on 19 CFR 351.302, that extraordinary circumstances
exist. Parties should review Commerce's regulations concerning the
extension of time limits and the Time Limits Final Rule prior to
submitting factual information in this investigation.\32\
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\32\ See 19 CFR 351.302; see also Extension of Time Limits;
Final Rule, 78 FR 57790 (September 20, 2013) (Time Limits Final
Rule), available at <a href="https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm">https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm</a>.
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Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\33\
Parties must use the certification formats provided in 19 CFR
351.303(g).\34\ Commerce intends to reject factual submissions if the
submitting party does not comply with the applicable certification
requirements.
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\33\ See section 782(b) of the Act.
\34\ See Certification of Factual Information to Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
<a href="https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf">https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf</a>.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
administrative protective order in accordance with 19 CFR 351.305.
Parties wishing to participate in this investigation should ensure that
they meet the requirements of 19 CFR 351.103(d) (e.g., by filing the
required letters of appearance). Note that Commerce has temporarily
modified certain of its requirements for serving documents containing
business proprietary information, until further notice.\35\
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\35\ 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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This notice is issued and published pursuant to sections 702 and
777(i) of the Act, and 19 CFR 351.203(c).
Dated: May 17, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
Appendix
Scope of the Investigation
The merchandise covered by this investigation is certain seamed
(welded or brazed), non-refillable steel cylinders meeting the
requirements of, or produced to meet the requirements of, U.S.
Department of Transportation specification 39, TransportCanada
specification 39M, or United Nations pressure receptacle standard
ISO 11118 and otherwise meeting the description provided below (non-
refillable steel cylinders). The subject non-refillable steel
cylinders are portable and range from 100-cubic inch (1.6 liter)
water capacity to 1,526-cubic inch (25 liter) water capacity.
Subject non-refillable steel cylinders may be imported with or
without a valve and/or pressure release device and are unfilled at
the time of importation. Non-refillable steel cylinders filled with
pressurized air otherwise meeting the physical description above are
covered by this investigation.
Specifically excluded are seamless non-refillable steel
cylinders.
The merchandise subject to this investigation is properly
classified under statistical reporting numbers 7311.00.0060 and
7311.00.0090 of the Harmonized Tariff Schedule of the United States
(HTSUS). The merchandise may also enter under HTSUS statistical
reporting numbers 7310.29.0030 and 7310.29.0065. Although the HTSUS
statistical reporting numbers are provided for convenience and
customs purposes, the written description of the merchandise is
dispositive.
[FR Doc. 2023-11004 Filed 5-23-23; 8:45 am]
BILLING CODE 3510-DS-P
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