Notice2023-25689
Non-Refillable Steel Cylinders From the People's Republic of China: Affirmative Preliminary Determination of Circumvention of the Antidumping and Countervailing Duty Orders
Primary source
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Published
November 21, 2023
Issuing agencies
Commerce DepartmentInternational Trade Administration
Abstract
The U.S. Department of Commerce (Commerce) preliminarily determines that non-refillable steel cylinders with water capacities between 100 and 299 cubic inches produced in the People's Republic of China (China) and exported to the United States, are circumventing the antidumping duty (AD) and countervailing duty (CVD) orders on certain non-refillable steel cylinders (non-refillable cylinders) from China.
Full Text
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<title>Federal Register, Volume 88 Issue 223 (Tuesday, November 21, 2023)</title>
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[Federal Register Volume 88, Number 223 (Tuesday, November 21, 2023)]
[Notices]
[Pages 81051-81053]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-25689]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-126; C-570-127]
Non-Refillable Steel Cylinders From the People's Republic of
China: Affirmative Preliminary Determination of Circumvention of the
Antidumping and Countervailing Duty Orders
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily
determines that non-refillable steel cylinders with water capacities
between 100 and 299 cubic inches produced in the People's Republic of
China (China) and exported to the United States, are circumventing the
antidumping duty (AD) and countervailing duty (CVD) orders on certain
non-refillable steel cylinders (non-refillable cylinders) from China.
DATES: Applicable November 21, 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 May 11, 2021, Commerce published in the Federal Register the AD
and CVD orders on non-refillable cylinders from China.\1\ On June 1,
2023, in response to a request from Worthington Industries (the
petitioner),\2\ Commerce initiated a circumvention inquiry to determine
whether imports of non-refillable 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 with a
water capacity between 100 cubic inches (1.6 liters) and 299 cubic
inches (4.9 liters) produced in China and exported to the United States
are ``later-developed merchandise,'' and/or are ``altered in form or
appearance in minor respects'' from in-scope merchandise such that they
should be considered subject to the Orders.\3\ For a complete
description of the events that followed initiation of this inquiry, see
the Preliminary Decision Memorandum.\4\
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\1\ See Certain Non-Refillable Steel Cylinders from the People's
Republic of China: Amended Final Antidumping Duty Determination and
Antidumping Duty and Countervailing Duty Orders, 86 FR 25839 (May
11, 2021) (Orders).
\2\ See Petitioner's Letter, ``Request for Circumvention Ruling
Pursuant to Sections 781(c) and 781(d) of the Tariff Act of 1930,''
dated April 12, 2023.
\3\ See 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, 88 FR 35839 (June 1, 2023) (Initiation
Notice). Although Commerce initiated a circumvention inquiry for
merchandise ``altered in form or appearance in minor respects,''
pursuant to section 781(c) of the Tariff Act of 1930, as amended
(the Act) and 19 CFR 351.226(j) and as ``later-developed
merchandise,'' pursuant to section 781(d) of the Act and 19 CFR
351.226(k), we are rescinding the portion of the circumvention
inquiry relating to ``later-developed merchandise'' because of the
affirmative preliminary determination with respect to circumvention
under section 781(c) of the Act.
\4\ See Memorandum, ``Preliminary Decision Memorandum for
Circumvention Inquiry; 100-299 Cubic Inches NRSCs,'' dated
concurrently with, and hereby adopted by, this notice (Preliminary
Decision Memorandum).
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Scope of the Orders
The products covered by the Orders are 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. A full description of
the scope of the
[[Page 81052]]
Orders is provided in the Preliminary Decision Memorandum.
Scope of the Circumvention Inquiry
This circumvention inquiry covers non-refillable cylinders meeting
the requirements of, or produced to meet the requirements of, USDOT
Specification 39, TransportCanada Specification 39M, or United Nations
pressure receptacle standard ISO 11118 with a water capacity between
100 cubic inches (1.6 liters) and 299 cubic inches (4.9 liters)
produced in China and exported to the United States.
Statutory and Regulatory Framework
Section 781(c) of the Act, provides that Commerce may find
circumvention of an AD or CVD order when merchandise of the same class
or kind as subject merchandise has 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 ``{p{time} aragraph 1 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} .''
While the Act is silent as to what factors to consider in
determining whether alterations are properly considered ``minor,'' the
legislative history of this provision indicates that there are certain
factors that should be considered before reaching a circumvention
determination. In conducting a circumvention inquiry under section
781(c) of the Act, Commerce has generally relied upon ``such criteria
as the overall physical characteristics of the merchandise, the
expectations of the ultimate users, the use of the merchandise, the
channels of marketing and the cost of any modification relative to the
total value of the imported products.'' \5\ Concerning the allegation
of minor alteration under section 781(c) of the Act and 19 CFR
351.226(j), Commerce examines such factors as: (1) overall physical
characteristics; (2) expectations of ultimate users; (3) use of
merchandise; (4) channels of marketing; and (5) cost of any
modification relative to the value of the imported products.\6\ Each
inquiry is highly dependent on the facts on the record and must be
analyzed in light of those specific facts.\7\ Thus, along with the five
factors enumerated above, Commerce may also consider the circumstances
under which the products enter the United States, including, but not
limited to, the timing of the entries and the quantity of merchandise
entered during the circumvention review period.\8\
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\5\ See Carbon and Certain Alloy Steel Wire Rod from Mexico:
Initiation of Anti-Circumvention Inquiry of Antidumping Duty Order,
83 FR 5405 (February 7, 2018) (citing S. Rep. No. 71, 100th Cong.,
1st Sess. 100 (1987)).
\6\ Id.; see also Deacero S.A. de C.V. v. United States, 817
F.3d 1332 (Fed. Cir. 2016).
\7\ See, e.g., Certain Uncoated Paper from Australia, Brazil,
the People's Republic of China, Indonesia, and Portugal: Affirmative
Preliminary Determination of Circumvention of the Antidumping and
Countervailing Duty Orders, 82 FR 26778 (June 9, 2017), and
accompanying Preliminary Decision Memorandum at ``IV. Statutory and
Regulatory Framework.''
\8\ Id.; see also, e.g., Affirmative Preliminary Determination
of Circumvention of the Antidumping Duty Order on Certain Cut-to-
Length Steel Plate from the People's Republic of China, 74 FR 33991,
33992-93 (July 14, 2009); Brass Sheet and Strip from West Germany;
Negative Preliminary Determination of Circumvention of Antidumping
Duty Order, 55 FR 32655 (August 10, 1990), unchanged in Brass Sheet
and Strip from Germany; Negative Final Determination of
Circumvention of Antidumping Duty Order, 56 FR 65884 (December 19,
1991); and Small Diameter Graphite Electrodes from the People's
Republic of China: Initiation of Anticircumvention Inquiry, 77 FR
37873 (June 25, 2012).
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Preliminary Determination
We preliminarily determine that non-refillable cylinders with water
capacities between 100 and 299 cubic inches and non-refillable
cylinders with water capacities between 300 and 1,526 cubic inches are
not dissimilar in terms of overall physical characteristics of the
merchandise, the expectations of the ultimate users, the use of the
merchandise, channels of marketing, and the timing and circumstances
under which Jinhua Sinoblue Machinery Manufacturing Co., Ltd. (Jinhua
Sinoblue) and Ningbo Eagle Machinery & Technology Co., Ltd. (Ningbo
Eagle) exported the non-refillable cylinders with water capacities
between 100 and 299 cubic inches. Because we find that the merchandise
subject to this inquiry is not dissimilar to subject merchandise, we
preliminarily determine that the non-refillable cylinders at issue
constitute merchandise ``altered in form or appearance in minor
respects'' from in-scope merchandise, within the meaning of section
781(c)(1) of the Act. Also, we preliminarily determine that the
affirmative circumvention finding should be applied on a country-wide
basis.
For a full description of the methodology underlying our
conclusions, see the Preliminary Decision Memorandum. 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="https://access.trade.gov">https://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>. A list of
the topics discussed in the Preliminary Decision Memorandum is attached
as an appendix to this notice.
Suspension of Liquidation
In accordance with 19 CFR 351.225(l)(2), we will direct U.S.
Customs and Border Protection (CBP) to continue the suspension of
liquidation of previously suspended entries and to suspend liquidation
of non-refillable cylinders with water capacities between 100 and 299
cubic inches produced in China and exported to the United States that
are entered, or withdrawn from warehouse, for consumption on or after
June 1, 2023 (i.e., the date of the initiation of this inquiry).\9\
Pursuant to 19 CFR 351.225(l)(2), we will also instruct CBP to require
cash deposits of estimated duties equal to the AD and CVD rates in
effect for non-refillable cylinders for each unliquidated entry of non-
refillable cylinders with water capacities between 100 and 299 cubic
inches produced in China and exported to the United States that are
entered, or withdrawn from warehouse, for consumption on or after June
1, 2023. The suspension of liquidation instructions will remain in
effect until further notice.
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\9\ See Initiation Notice.
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Public Comment
Interested parties are invited to comment on this preliminary
determination of circumvention and may submit case briefs and/or
written comments within 14 days of the publication of this notice.
Rebuttal briefs, limited to issues raised in the case briefs, may be
filed not later than seven days after the date on which case briefs are
due.\10\ Pursuant to 19 CFR 351.226(f)(4), rebuttal briefs must be
limited to issues raised in the case briefs.\11\ Parties who submit
case briefs or rebuttal briefs in this proceeding 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.\12\ Note that
Commerce has amended certain of its
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requirements pertaining to the service of documents in 19 CFR
351.303(f).\13\
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\10\ See 19 CFR 351.226(f)(4).
\11\ See also 19 CFR 351.303 (for general filing requirements).
\12\ See 19 CFR 351.309(c)(2) and (d)(2); see also 19 CFR
351.303 (for general filing requirements).
\13\ See Administrative Protective Order, Service, and Other
Procedures in Antidumping and Countervailing Duty Proceedings; Final
Rule, 88 FR 67069 (September 29, 2023).
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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, within 30 days
after the publication of this notice. Requests should contain the
party's name, address, 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, Commerce intends
to hold the hearing at a time and date to be determined. Parties should
confirm by telephone the date, time, and location of the hearing two
days before the scheduled date.
Unless the deadline is extended, Commerce intends to issue the
final determination of this inquiry, including the results of its
analysis of the issues raised in any written briefs, no later than 300
days from the date of initiation of the inquiry, pursuant to 19 CFR
351.226(e)(2). As such, the deadline to issue the final determination
is currently March 27, 2024.
Notification to Interested Parties
Commerce is issuing and publishing this affirmative preliminary
determination of circumvention in accordance with sections 781(c) of
the Act, 19 CFR 351.226(j), and 19 CFR 351.226(g)(1).
Dated: November 14, 2023.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix--List of Topics Discussed in the Preliminary Decision
Memorandum
I. Summary
II. Background
III. Scope of the Orders
IV. Merchandise Subject to the Circumvention Inquiry
V. Statutory and Regulatory Framework
VI. Circumvention Analysis
VII. Preliminary Affirmative Determination of Circumvention
VIII. Recommendation
[FR Doc. 2023-25689 Filed 11-20-23; 8:45 am]
BILLING CODE 3510-DS-P
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</html>Indexed from Federal Register on November 21, 2023.
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