Notice2024-08451

Certain Non-Refillable Steel Cylinders From India: Final Affirmative Countervailing Duty Determination

Primary source

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Published
April 22, 2024

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

The U.S. Department of Commerce (Commerce) determines that countervailable subsidies are being provided to producers and exporters of certain non-refillable steel cylinders (steel cylinders) from India. The period of investigation (POI) is April 1, 2022, through March 31, 2023.

Full Text

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<title>Federal Register, Volume 89 Issue 78 (Monday, April 22, 2024)</title>
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[Federal Register Volume 89, Number 78 (Monday, April 22, 2024)]
[Notices]
[Pages 29296-29298]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-08451]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-913]


Certain Non-Refillable Steel Cylinders From India: Final 
Affirmative Countervailing Duty Determination

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of certain non-refillable steel cylinders (steel cylinders) from India. 
The period of investigation (POI) is April 1, 2022, through March 31, 
2023.

DATES: Applicable April 22, 2024.

FOR FURTHER INFORMATION CONTACT: Shane Subler or Rachel Accorsi, 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 or (202) 
482-3149, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On September 29, 2023, Commerce published the Preliminary 
Determination in the Federal Register.\1\ Subsequently, on February 8, 
2024, Commerce released its Post-Preliminary Analysis.\2\ For a 
complete description of the events that followed the Preliminary 
Determination, see the Issues and Decision Memorandum.\3\ The Issues 
and 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 Issues and 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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    \1\ See Certain Non-Refillable Steel Cylinders from India: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination With Final Antidumping Duty 
Determination, 88 FR 67231 (September 29, 2023) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.
    \2\ See Memorandum, ``Decision Memorandum for the Post-
Preliminary Analysis in the Countervailing Duty Investigation of 
Certain Non-Refillable Steel Cylinders from India,'' dated February 
8, 2024 (Post-Preliminary Analysis).
    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Certain Non-Refillable Steel Cylinders from 
India,'' dated concurrently with, and hereby adopted by, this notice 
(Issues and Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are steel cylinders. For 
a complete description of the scope of this investigation, see Appendix 
I.

Scope Comments

    No interested party commented on the scope of the investigation as 
it appeared in the Preliminary Determination. Therefore, no changes 
were made to the scope of the investigation.

[[Page 29297]]

Verification

    Commerce conducted verification of the information relied upon in 
making its final determination in this investigation, in accordance 
with section 782(i) of the Tariff Act of 1930, as amended (the Act). 
Specifically, we conducted on-site verifications of the Government of 
India, Inox India Ltd. (Inox), and Bhiwadi Cylinders Private Limited 
(Bhiwadi) in February 2024 using standard verification procedures, 
including an examination of relevant sales and accounting records, and 
original source documents provided by the respondents.\4\
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    \4\ See Memoranda, ``Verification of the Questionnaire Responses 
of INOX India Ltd.,'' dated March 1, 2024; ``Verification of the 
Questionnaire Responses of the Government of India,'' dated March 1, 
2024; and ``Verification of the Questionnaire Responses of Bhiwadi 
Cylinders Private Limited,'' dated March 7, 2024.
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Analysis of Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs by parties in this investigation, are 
discussed in the Issues and Decision Memorandum. For a list of the 
issues raised by parties, and to which we responded in the Issues and 
Decision Memorandum, see Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Act. For each of the subsidy programs found to be 
countervailable, Commerce determines that there is a subsidy, i.e., a 
financial contribution by an ``authority'' 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 final determination, see 
the Issues and 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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    In making this final determination, Commerce relied, in part, on 
facts available and, because it finds that the Government of India did 
not act to the best of its ability to respond to Commerce's requests 
for information, Commerce has drawn an adverse inference where 
appropriate in selecting from among the facts otherwise available. For 
a full discussion of our application of adverse facts available, see 
the ``Use of Facts Otherwise Available and Application of Adverse 
Inferences'' section in the Issues and Decision Memorandum.

Changes Since the Preliminary Determination and Post-Preliminary 
Analysis

    Based on our findings at verification and our review and analysis 
of the comments received from parties, for this final determination, we 
made certain changes to the countervailable subsidy rate calculations 
for Inox, Bhiwadi, and for all other producers/exporters. For a 
discussion of these changes, see the Issues and Decision Memorandum.

All-Others Rate

    Pursuant to section 705(c)(5)(A)(i) of the Act, Commerce will 
determine an all-others rate equal to the weighted-average 
countervailable subsidy rates established for exporters and/or 
producers individually investigated, excluding any zero and de minimis 
countervailable subsidy rates, and any rates based entirely under 
section 776 of the Act. We continue to calculate individual estimated 
countervailable subsidy rates for Bhiwadi and Inox that are not zero, 
de minimis, or based entirely on facts otherwise available. We, 
therefore, continue to calculate the all-others rate using a weighted 
average of the individual estimated subsidy rates calculated for 
Bhiwadi and Inox, the individually examined exporters/producers in this 
investigation, pursuant to section 705(c)(5)(A)(i) of the Act.

Final Determination

    Commerce determines that the following estimated countervailable 
subsidy rates exist for the period April 1, 2022, through March 31, 
2023:
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    \6\ Commerce finds the following company to be cross-owned with 
Bhiwadi Cylinders Private Limited: Sapphire (India) Private Limited.

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                                                                Subsidy
                                                                rate ad
                           Company                              valorem
                                                               (percent)
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Bhiwadi Cylinders Private Limited \6\.......................        2.48
Inox India Ltd..............................................        2.26
All Others..................................................        2.38
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Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this final determination within five 
days of any public announcement, or if there is no public announcement, 
within five days of the date of the publication of this notice in the 
Federal Register, in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed U.S. 
Customs and Border Protection (CBP) to collect cash deposits and 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after September 29, 2023, the date of 
publication of the Preliminary Determination in the Federal Register. 
In accordance with section 703(d) of the Act, on January 29, 2024, we 
instructed CBP to discontinue the suspension of liquidation of all 
entries of subject merchandise entered or withdrawn from warehouse on 
or after January 27, 2024, but to continue the suspension of 
liquidation of all entries of subject merchandise on or after September 
29, 2023, to on or before January 26, 2024.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, reinstate the suspension of liquidation under section 706(a) of 
the Act, and require a cash deposit of estimated countervailing duties 
for such entries of subject merchandise in the amounts indicated above, 
in accordance with section 706(a) of the Act. If the ITC determines 
that material injury, or threat of material injury, does not exist, 
this proceeding will be terminated, and all estimated duties deposited 
or securities posted as a result of the suspension of liquidation will 
be refunded or canceled.

ITC Notification

    In accordance with section 705(d) of the Act, Commerce will notify 
the ITC of its final affirmative determination that countervailable 
subsidies are being provided to producers and exporters of steel 
cylinders from India. As Commerce's final determination is affirmative, 
in accordance with section 705(b) of the Act, the ITC will determine, 
within 45 days, whether the domestic industry in the United States is 
materially injured, or threatened with material injury, by reason of 
imports of steel cylinders from India. In addition, we are making 
available to the ITC all non-privileged and non-proprietary information 
related to this investigation. We will allow the ITC access to all 
privileged and business proprietary information in our files, provided 
the ITC confirms that it will not disclose such information, either 
publicly or

[[Page 29298]]

under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.

Administrative Protective Order

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO, in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act, and 19 CFR 351.210(c).

    Dated: April 15, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.

Appendix I

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.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Subsidies Valuation Information
V. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VI. Analysis of Programs
VII. Discussion of the Issues
    Comment 1: Whether Commerce Incorrectly Found the Duty Drawback 
(DDB) Program to Be Countervailable
    Comment 2: Whether Commerce Incorrectly Determined that the 
Mandatory Respondents Benefited from the Merchandise Export from 
India Scheme (MEIS) and Target Plus Scheme (TPS) After the Programs 
Were Discontinued
    Comment 3a: Whether Commerce Should Revise the Calculation of 
the Export Promotion of Capital Goods Scheme (EPCGS) Benefit for 
Inox
    Comment 3b: Whether Commerce Incorrectly Found the EPCGS to Be 
Countervailable
    Comment 4a: Whether Commerce Incorrectly Found the Remission of 
Duties and Taxes on Export Products (RODTEP) Scheme to Be 
Countervailable
    Comment 4b: Whether Commerce Should Amend Its Benefit 
Calculation Methodology for the RODTEP Program
    Comment 5a: Whether Commerce Erred by Applying Adverse Facts 
Available (AFA) in Its Specificity Determinations for the Provision 
of Cold-Rolled (CR) Steel by the Steel Authority of India Limited 
(SAIL) for Less Than Adequate Remuneration (LTAR) and the Provision 
of Hot-Rolled (HR) Steel by SAIL for LTAR Programs
    Comment 5b: Whether SAIL Is a Government ``Authority''
    Comment 5c: Whether Commerce Should Find the Indian CR Steel and 
HR Steel Markets to Be Distorted by the Government of India's (GOI) 
Involvement
    Comment 5d: Whether Commerce Properly Countervailed Bhiwadi's HR 
Coil Purchases
    Comment 6: Whether Commerce Should Correct Its Status Holders 
Incentive Scheme (SHIS) Benefit Calculation Methodology
    Comment 7: Whether Inox Received a Stamp Duty Exemption Within 
the Kandla Special Economic Zone (SEZ) to Produce Subject 
Merchandise
    Comment 8: Whether the Mukhyamantri Apprentice Training Scheme 
(MATS) Confers a Countervailable Subsidy
VIII. Recommendation

 [FR Doc. 2024-08451 Filed 4-19-24; 8:45 am]
 BILLING CODE 3510-DS-P


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Indexed from Federal Register on April 22, 2024.

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