Refillable Stainless Steel Kegs From the People's Republic of China: Final Affirmative Countervailing Duty Determination and Final Affirmative Determination of Critical Circumstances, in Part
| Published date | 24 October 2019 |
| Citation | 84 FR 57005 |
| Record Number | 2019-23214 |
| Section | Notices |
| Court | Commerce Department,International Trade Administration |
Federal Register, Volume 84 Issue 206 (Thursday, October 24, 2019)
[Federal Register Volume 84, Number 206 (Thursday, October 24, 2019)]
[Notices]
[Pages 57005-57008]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-23214]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-094]
Refillable Stainless Steel Kegs From the People's Republic of
China: Final Affirmative Countervailing Duty Determination and Final
Affirmative Determination of Critical Circumstances, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (the Department) determines that
countervailable subsidies are being provided to producers and exporters
of refillable stainless steel kegs (kegs) from the People's Republic of
China (China). For information on the estimated subsidy rates, see the
``Final Determination'' section of this notice.
DATES: Applicable October 24, 2019.
FOR FURTHER INFORMATION CONTACT: Nicholas Czajkowski, AD/CVD
Operations, Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington DC 20230; telephone (202) 482-1395.
Background
Commerce published the Preliminary Determination on April 5,
2019.\1\ A summary of the events that occurred since Commerce published
the Preliminary Determination, as well as a full discussion of the
issues raised by parties for this final determination, may be found in
the Issues and Decision Memorandum.\2\ The Issues and Decision
[[Page 57006]]
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 http://access.trade.gov, and is available to all
parties in the Central Records Unit, Room B8024 of the main Commerce
building. In addition, a complete version of the Issues and Decision
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and the electronic
version are identical in content.
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\1\ See Refillable Stainless Steel Kegs From the People's
Republic of China: Preliminary Affirmative Countervailing Duty
Determination and Alignment of Final Determination With Final
Antidumping Duty Determination, 84 FR 13634 (April 5, 2019)
(Preliminary Determination) and accompanying Preliminary Decision
Memorandum (PDM).
\2\ See Memorandum, ``Issues and Decision Memorandum for the
Final Determination in the Countervailing Duty Investigation of
Refillable Stainless Steel Kegs from the People's Republic of
China,'' dated concurrently with, and hereby adopted by, this notice
(Issues and Decision Memorandum).
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Period of Investigation
The period of investigation is January 1, 2017 through December 31,
2017.
Scope of the Investigation
The products covered by this investigation are kegs from China. For
a full description of the scope of the investigation, see Appendix I.
Analysis of Subsidy Programs and 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. A list of the issues
raised by parties, and to which we responded in the Issues and Decision
Memorandum, is attached to this notice at Appendix II.
Verification
As provided in section 782(i) of the Tariff Act of 1930, as amended
(the Act), in April 2019, Commerce verified the subsidy information
reported by Ningbo Master International Trade Co., Ltd. (Ningbo
Master). We used standard verification procedures, including an
examination of relevant accounting and production records, and original
source documents provided by Ningbo Master.
Use of Adverse Facts Available
In making this final determination, Commerce relied, in part, on
facts available and, because the Government of China (GOC) and a
respondent company did not act to the best of their abilities in
responding to Commerce's requests for information, we drew an adverse
inference where appropriate in selecting from among the facts otherwise
available, pursuant to section 776(a) and (b) of the Act. For further
information, see the section ``Use of Facts Otherwise Available and
Adverse Inferences'' in the accompanying Issues and Decision
Memorandum.
Changes Since the Preliminary Determination
Based on our analysis of our findings at verification and the
comments received, we have made certain changes to the subsidy rate
calculations. For a discussion of these changes, see the Issues and
Decision Memorandum.
Final Affirmative Determination of Critical Circumstances, in Part
Commerce preliminarily determined that critical circumstances
existed with respect to imports of kegs from China for the 19 companies
to which we are applying Adverse Facts Available (AFA) because they did
not act to the best of their ability to respond to Commerce's requests
for information, but that critical circumstances did not exist for
Ningbo Master or from all other producers/exporters of subject
merchandise.\3\ We invited parties to provide comments on this
determination. However, no parties submitted comments regarding our
preliminary critical circumstances finding. Therefore, for this final
determination, we continue to find that critical circumstances exist
with respect to subject merchandise produced or exported by the 19 AFA
companies but not with respect to Ningbo Master or to all other
producers/exporters.
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\3\ See Refillable Stainless Steel Kegs From the People's
Republic of China: Preliminary Affirmative Determination, in Part,
of Critical Circumstances in the Countervailing Duty Investigation,
84 FR 25748 (June 4, 2019) (Critical Circumstances Preliminary
Determination).
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All-Others Rate
In accordance with section 705(c)(5)(A)(i) of the Act, for
companies not individually examined, we apply an all-others rate, which
is normally calculated by weighting the subsidy rates of the mandatory
respondents by those companies' exports of the subject merchandise to
the United States. Under section 705(c)(5)(A)(i) of the Act, the all-
others rate should exclude zero and de minimis rates or any rates based
entirely on facts otherwise available pursuant to section 776 of the
Act.
In this investigation, Commerce is assigning rates based entirely
on AFA for the second mandatory respondent Penglai Jinfu Stainless
Steel Products (Penglai Jinfu) and 18 companies that failed to respond
to our quantity and value (Q&V) questionnaire.\4\ Commerce calculated
an individual estimated countervailable subsidy rate for Ningbo Master
International Trade Co., Ltd. (Ningbo Master) and its cross-owned
affiliates Tomorrow Industrial Limited (Tomorrow Industrial), Ningbo
Major Draft Beer Equipment Co., Ltd. (Ningbo Major), and Zhejiang Major
Technology Co., Ltd. (Major Technology). Because the only individually
calculated rate is not zero, de minimis, or based entirely on facts
otherwise available, we are assigning the rate calculated for Ningbo
Master to all other producers and exporters.
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\4\ Commerce issued Q&V questionnaires to 20 companies. The 18
companies that did not respond to our Q&V questionnaire are:
Equipmentines (Dalian) E[hyphen]Commerce Co., Ltd.; Jinan HaoLu
Machinery Equipment Co., Ltd.; NDL Keg Qingdao Inc.; Ningbo Direct
Import & Export Co., Ltd.; Ningbo Hefeng Container Manufacture Co.,
Ltd.; Ningbo Hefeng Kitchen Utensils Manufacture Co., Ltd.; Ningbo
HGM Food Machinery Co., Ltd.; Ningbo Jiangbei Bei Fu Industry and
Trade Co., Ltd.; Ningbo Sanfino Import & Export Co., Ltd.; Ningbo
Shimaotong International Co., Ltd.; Ningbo Sunburst International
Trading Co., Ltd.; Orient Equipment (Taizhou) Co., Ltd.; Qingdao
Henka Precision Technology Co., Ltd.; Shandong Tiantai Beer
Equipment; Sino Dragon Trading International; Wenzhou Deli Machinery
Equipment Co.; Wuxi Taihu Lamps and Lanterns Co., Ltd.; and Yantai
Trano New Material Co., Ltd.
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Final Determination
We determine the countervailable subsidy rates to be:
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Net subsidy
Company rate
(percent)
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Equipmentines (Dalian) E[hyphen]Commerce Co., Ltd....... 145.23
Jinan HaoLu Machinery Equipment Co., Ltd................ 145.23
NDL Keg Qingdao Inc..................................... 145.23
Ningbo Direct Import & Export Co., Ltd.................. 145.23
Ningbo Hefeng Container Manufacture Co., Ltd............ 145.23
Ningbo Hefeng Kitchen Utensils Manufacture Co., Ltd..... 145.23
Ningbo HGM Food Machinery Co., Ltd...................... 145.23
Ningbo Jiangbei Bei Fu Industry and Trade Co., Ltd...... 145.23
[[Page 57007]]
Ningbo Master International Trade Co., Ltd.............. 16.21
Ningbo Sanfino Import & Export Co., Ltd................. 145.23
Ningbo Shimaotong International Co., Ltd................ 145.23
Ningbo Sunburst International Trading Co., Ltd.......... 145.23
Orient Equipment (Taizhou) Co., Ltd..................... 145.23
Penglai Jinfu Stainless Steel Products.................. 145.23
Qingdao Henka Precision Technology Co., Ltd............. 145.23
Shandong Tiantai Beer Equipment......................... 145.23
Sino Dragon Trading International....................... 145.23
Wenzhou Deli Machinery Equipment Co..................... 145.23
Wuxi Taihu Lamps and Lanterns Co., Ltd.................. 145.23
Yantai Trano New Material Co., Ltd...................... 145.23
All Others.............................................. 16.21
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Disclosure
We intend to disclose the calculations performed to parties in this
proceeding within five days after public announcement of the final
determination or, if there is no public announcement, within five days
of the date of publication of the notice of final determination in the
Federal Register, in accordance with 19 CFR 351.224(b).
Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d) of the Act, we instructed U.S. Customs and Border
Protection (CBP) to suspend liquidation of all entries of kegs from
China, that were entered, or withdrawn from warehouse, for consumption
on or after April 5, 2019, the date of the publication of the
Preliminary Determination in the Federal Register. Further, as a result
of our Critical Circumstances Preliminary Determination, we instructed
CBP to suspend liquidation of all entries of kegs from China, that were
entered, or withdrawn from warehouse, for consumption on or after
January 5, 2019 through April 4, 2019 (90 days prior to the date of the
publication of the Preliminary Determination in the Federal Register
through the day prior to the date of the publication of the Preliminary
Determination) from the 19 AFA companies. In accordance with section
703(d) of the Act, we instructed CBP to discontinue the suspension of
liquidation for CVD purposes for subject merchandise entered, or
withdrawn from warehouse, on or after August 3, 2019. If the U.S.
International Trade Commission (ITC) issues a final affirmative injury
determination, we will issue a CVD order and will reinstate the
suspension of liquidation under section 706(a) of the Act and will
require a cash deposit of estimated CVDs for such entries of subject
merchandise in the amounts indicated above. 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.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of our final affirmative CVD determination. Because the final
determination in this proceeding is affirmative, in accordance with
section 735(b)(2) of the Act, the ITC will make its final determination
as to whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of imports of
subject merchandise from China no later than 45 days after our final
determination. If the ITC determines that such injury does not exist,
this proceeding will be terminated, and all securities posted will be
refunded or canceled. If the ITC determines that such injury does
exist, Commerce will issue a countervailing duty order directing CBP to
assess, upon further instruction by Commerce, countervailing duties on
all imports of the subject merchandise entered, or withdrawn from
warehouse, for consumption on or after the effective date of the
suspension of liquidation.
Notification Regarding Administrative Protective Order
This notice will serve as a reminder to the parties subject to
administrative protective order (APO) of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). Timely written
notification of return or 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 sanctionable violation.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).
Dated: October 17, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation are kegs, vessels,
or containers with bodies that are approximately cylindrical in
shape, made from stainless steel (i.e., steel containing at least
10.5 percent chromium by weight and less than 1.2 percent carbon by
weight, with or without other elements), and that are compatible
with a ``D Sankey'' extractor (refillable stainless steel kegs) with
a nominal liquid volume capacity of 10 liters or more, regardless of
the type of finish, gauge, thickness, or grade of stainless steel,
and whether or not covered by or encased in other materials.
Refillable stainless steel kegs may be imported assembled or
unassembled, with or without all components (including spears,
couplers or taps, necks, collars, and valves), and be filled or
unfilled.
``Unassembled'' or ``unfinished'' refillable stainless steel
kegs include drawn stainless steel cylinders that have been welded
to form the body of the keg and attached to an upper (top) chime
and/or lower (bottom) chime. Unassembled refillable stainless steel
kegs may or may not be welded to a neck, may or may not have a valve
assembly attached, and may be otherwise complete except for testing,
certification, and/or marking.
Subject merchandise also includes refillable stainless steel
kegs that have been further processed in a third country, including
but not limited to, attachment of necks, collars, spears or valves,
heat treatment, pickling, passivation, painting, testing,
certification or any other processing that would not otherwise
remove the merchandise from the scope of the investigation if
performed in the country of
[[Page 57008]]
manufacture of the in-scope refillable stainless steel keg.
Specifically excluded are the following:
(1) Vessels or containers that are not approximately cylindrical
in nature (e.g., box, ``hopper'' or ``cone'' shaped vessels);
(2) stainless steel kegs, vessels, or containers that have
either a ``ball lock'' valve system or a ``pin lock'' valve system
(commonly known as ``Cornelius,'' ``corny'' or ``ball lock'' kegs);
(3) necks, spears, couplers or taps, collars, and valves that
are not imported with the subject merchandise; and
(4) stainless steel kegs that are filled with beer, wine, or
other liquid and that are designated by the Commissioner of Customs
as Instruments of International Traffic within the meaning of
section 332(a) of the Tariff Act of 1930, as amended.
The merchandise covered by this investigation are currently
classified in the Harmonized Tariff Schedule of the United States
(HTSUS) under subheadings 7310.10.0010, 7310.10.0050, 7310.29.0025,
and 7310.29.0050.
These HTSUS subheadings are provided for convenience and customs
purposes; the written description of the scope of this investigation
is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope Comments
IV. Final Determination of Critical Circumstances
V. Scope of the Investigation
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Subsidies Valuation
VIII. Analysis of Programs
IX. Analysis of Comments
Comment 1: Whether to Apply AFA to Find Producers of Stainless
Steel Coil to be ``Authorities''
Comment 2: Whether to Apply AFA to Find the Provision of
Stainless Steel Coil to be Specific
Comment 3: Whether to Apply AFA to Find the Chinese Stainless
Steel Coil Market Distorted
Comment 4: Whether to Use Data from the American Metal Market
for Calculating Stainless Steel Coil Benchmarks
Comment 5: Whether to Include Import Duties in Calculating the
Stainless Steel Coil Benchmark
Comment 6: Whether Commerce Should Use Coaster Freight Rates
from Metal Expert
Comment 7: Whether to Apply AFA to the Provision of Electricity
for LTAR
Comment 8: Whether Commerce Should Include Electricity Purchase
from a Private Enterprise in the Benefit Calculation for the
Provision of Electricity for LTAR Program
Comment 9: Whether Commerce Errored in the Benefit Calculation
for the Provision of Electricity for LTAR Program
Comment 10: Whether Commerce Properly Determined that the
Provision of Policy Loans is Specific
X. Recommendation
[FR Doc. 2019-23214 Filed 10-23-19; 8:45 am]
BILLING CODE 3510-DS-P
