Notice2023-11681
Non-Refillable Steel Cylinders From the People's Republic of China: Initiation of Circumvention Inquiry of the Antidumping and Countervailing Duty Orders; Water Capacity Between 100 and 299 Cubic Inches
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
June 1, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
In response to a request from Worthington Industries (Worthington), the U.S. Department of Commerce (Commerce) is initiating a country-wide circumvention inquiry to determine whether imports of non-refillable steel cylinders (non-refillable cylinders), which have a water capacity between 100 and 299 cubic inches, are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on non- refillable cylinders from the People's Republic of China (China).
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 105 (Thursday, June 1, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 105 (Thursday, June 1, 2023)]
[Notices]
[Pages 35839-35840]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-11681]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-126, C-570-127]
Non-Refillable Steel Cylinders From the People's Republic of
China: Initiation of Circumvention Inquiry of the Antidumping and
Countervailing Duty Orders; Water Capacity Between 100 and 299 Cubic
Inches
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request from Worthington Industries
(Worthington), the U.S. Department of Commerce (Commerce) is initiating
a country-wide circumvention inquiry to determine whether imports of
non-refillable steel cylinders (non-refillable cylinders), which have a
water capacity between 100 and 299 cubic inches, are circumventing the
antidumping duty (AD) and countervailing duty (CVD) orders on non-
refillable cylinders from the People's Republic of China (China).
DATES: Applicable June 1, 2023.
FOR FURTHER INFORMATION CONTACT: Alex Cipolla, 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) 482-4956.
SUPPLEMENTARY INFORMATION:
Background
On April 12, 2023, Worthington filed a circumvention inquiry
request alleging that non-refillable cylinders with a water capacity
between 100 and 299 cubic inches are circumventing the Orders \1\ and,
accordingly, should be included within the scope of the orders.\2\
Worthington alleges that these non-refillable cylinders constitute
merchandise altered in form or appearance in such minor respects that
they should be included in within the scope of the Orders, pursuant to
section 781(c) of the Tariff Act of 1930, as amended (the Act), and 19
CFR 351.226(j). In addition, Worthington alleges that these non-
refillable cylinders are later-developed merchandise and should be
included within the scope of the Orders, pursuant to section 781(d) of
the Act and 19 CFR 351.226(k).
---------------------------------------------------------------------------
\1\ See Certain Non-Refillable Steel Cylinders from the People's
Republic of China: Amended Final Antidumping Duty Determination and
Antidumping and Countervailing Duty Orders, 86 FR 25839 (May 11,
2021) (Orders).
\2\ See Worthington's Letter, ``Request for Circumvention Ruling
Pursuant to Sections 781(c) and 781(d) of the Tariff Act of 1930,''
dated April 12, 2023 (Worthington's Request).
---------------------------------------------------------------------------
Scope of the Orders
The merchandise covered by these orders 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 (USDOT) 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 300-cubic inch (4.9 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 unfilled at the time of importation. Non-refillable steel cylinders
filled with pressurized air otherwise meeting the physical description
above are covered by these orders.
Specifically excluded are seamless non-refillable steel cylinders.
The merchandise subject to these orders 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
7310.29.0025 and 7310.29.0050. Although the HTSUS statistical reporting
numbers are provided for convenience and customs purposes, the written
description of the merchandise is dispositive.
Merchandise Subject to the Circumvention Inquiry
The circumvention inquiry covers non-refillable cylinders with a
water capacity between 100 and 299 cubic inches that are produced in
China and exported to the United States.
Statutory and Regulatory Framework
Section 351.226(d)(1)(ii) of Commerce's regulations states that if
Commerce determines that a request for a circumvention inquiry
satisfies the requirements of 19 CFR 351.226(c), then Commerce ``will
accept the request and initiate a circumvention inquiry.'' Section
351.226(c)(1) of Commerce's regulations, in turn, requires that each
request for a circumvention inquiry allege ``that the elements
necessary for a circumvention determination under section 781 of the
Act exist'' and be ``accompanied by information reasonably available to
the interested
[[Page 35840]]
party supporting these allegations.'' Worthington alleged circumvention
pursuant to section 781(c) of the Act (merchandise altered in form or
appearance in minor respects) and section 781(d) of the Act
(merchandise developed after an investigation is initiated).
Section 781(c)(1) of the Act provides that the class or kind of
merchandise subject to an AD or CVD order shall include articles that
have been ``altered in form or appearance in minor respects . . .
whether or not included in the same tariff classification.'' Section
781(c)(2) of the Act provides an exception that section 781(c)(1) of
the Act ``shall not apply with respect to altered merchandise if the
administering authority determines that it would be unnecessary to
consider the altered merchandise within the scope of the
{order{time} .'' Concerning the allegation of minor alteration under
section 781(c) of the Act and 19 CFR 351.226(j), Commerce may consider
criteria including, but not limited to: (1) Overall physical
characteristics of the merchandise; (2) expectations of ultimate users;
(3) use of the merchandise; (4) channels of marketing; and (5) cost of
any modification relative to the value of the imported products.
Section 781(d) of the Act provides that Commerce may find
circumvention of an AD or CVD order when merchandise is developed after
an investigation is initiated. In conducting a later-developed
merchandise inquiry under section 781(d)(1) of the Act and 19 CFR
351.226(k), Commerce will consider whether: (1) The later-developed
merchandise has the same general physical characteristics as the
merchandise with respect to which the order was originally issued; (2)
the expectations of the ultimate purchasers of the later-developed
merchandise are the same as for the earlier product; (3) the ultimate
use of the earlier product and the later-developed merchandise are the
same; (4) the later-developed merchandise is sold through the same
channels of trade as the earlier product; and (5) the later-developed
merchandise is advertised and displayed in a manner similar to the
earlier product.\3\ First, however, Commerce determines whether the
merchandise subject to the inquiry was commercially available at the
time of the initiation of the underlying LTFV or CVD investigation
(i.e., the product was present in the commercial market or the product
was tested and ready for commercial production).\4\
---------------------------------------------------------------------------
\3\ See section 781(d)(1) of the Act.
\4\ See 19 CFR 351.226(k).
---------------------------------------------------------------------------
For companion AD and CVD proceedings, ``the Secretary will initiate
and conduct a single inquiry with respect to the product at issue for
both orders only on the record of the antidumping proceeding.'' \5\
Further, ``{o{time} nce the Secretary issues a final circumvention
determination on the record of the antidumping duty proceeding, the
Secretary will include a copy of that determination on the record of
the countervailing duty proceeding.'' \6\ Accordingly, once Commerce
concludes this circumvention inquiry, Commerce intends to place its
final circumvention determination on the record of the companion CVD
proceeding.
---------------------------------------------------------------------------
\5\ See 19 CFR 351.226(m)(2).
\6\ Id.
---------------------------------------------------------------------------
Analysis
After analyzing the record evidence and Worthington's allegation,
we determine that there is sufficient information to warrant initiation
of a circumvention inquiry based on both allegations: (1) Minor
alterations, pursuant to section 781(c) of the Act and 19 CFR
351.226(j); and (2) later-developed merchandise, pursuant to section
781(d) of the Act and 19 CFR 351.226(k). For a full discussion of the
basis for our decision to initiate a circumvention inquiry regarding
both the later-developed merchandise and minor alterations allegations,
see the Initiation Checklist.\7\
---------------------------------------------------------------------------
\7\ See Circumvention Initiation Checklist, ``Non-Refillable
Steel Cylinders from the People's Republic of China,'' dated
concurrently with, and hereby adopted by, this notice (Initiation
Checklist).
---------------------------------------------------------------------------
The information provided by Worthington also warrants initiating
this circumvention inquiry on a country-wide basis. Commerce has taken
this approach in prior circumvention inquiries, when the facts
warranted initiation on a country-wide basis.\8\
---------------------------------------------------------------------------
\8\ See, e.g., Aluminum Extrusions from the People's Republic of
China: Affirmative Final Determination of Circumvention of the
Antidumping and Countervailing Duty Orders and Rescission of Minor
Alterations Anti-Circumvention Inquiry, 82 FR 4630 (July 26, 2017),
and accompanying Issues and Decision Memorandum at Comment 4.
---------------------------------------------------------------------------
Commerce intends to establish a schedule for questionnaires and
comments on the issues related to this inquiry. A company's failure to
respond completely to Commerce's requests for information may result in
the application of partial or total facts available, pursuant to
section 776(a) of the Act, which may include adverse inferences,
pursuant to section 776(b) of the Act.
Suspension of Liquidation
Pursuant to 19 CFR 351.226(l)(1), Commerce will notify U.S. Customs
and Border Protection (CBP) of its initiation of the requested
circumvention inquiry and direct CBP to continue the suspension of
liquidation of entries of products subject to the circumvention inquiry
that were already subject to the suspension of liquidation under the
Orders and to apply the cash deposit rates that would be applicable if
the products were determined to be covered by the scope of the Orders.
Should Commerce issue a preliminary or final circumvention
determination, Commerce will follow the suspension of liquidation rules
under 19 CFR 351.226(l)(2)-(4).
Notification to Interested Parties
In accordance with 19 CFR 351.226(d) and section 781(c) and (d) of
the Act, Commerce determines that Worthington's request for a
circumvention inquiry satisfies the requirements of 19 CFR 351.226(c).
Accordingly, Commerce is notifying all interested parties of the
initiation of this circumvention inquiry to determine whether U.S.
imports of non-refillable cylinders with a water capacity between 100
and 299 cubic inches produced in, and exported from, China are
circumventing the Orders. We included a description of the products
that are subject to the circumvention inquiry, and an explanation of
the reasons for Commerce's decision to initiate this inquiry, in the
accompanying Initiation Checklist.\9\ In accordance with 19 CFR
351.226(e)(1), Commerce intends to issue its preliminary determination
in this circumvention proceeding no later than 150 days from the date
of publication of this notice in the Federal Register.
---------------------------------------------------------------------------
\9\ See Initiation Checklist.
---------------------------------------------------------------------------
This notice is published in accordance with sections 781(c) and (d)
of the Act and 19 CFR 351.226(d)(1)(ii).
Dated: May 25, 2023.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2023-11681 Filed 5-31-23; 8:45 am]
BILLING CODE 3510-DS-P
</pre></body>
</html>Indexed from Federal Register on June 1, 2023.
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.