[Federal Register Volume 85, Number 91 (Monday, May 11, 2020)]
[Notices]
[Pages 27717-27719]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10025]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-428-846]
Refillable Stainless Steel Kegs From the Federal Republic of
Germany: Initiation and Preliminary Results of Changed Circumstances
Review and Intent To Revoke Order
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) is initiating a changed
circumstances review (CCR) of the antidumping duty (AD) order on
refillable stainless steel kegs (kegs) from the Federal Republic of
Germany (Germany) based upon a request from American Keg Company (the
petitioner), as well as issuing preliminary results in that CCR. We
preliminarily determine that the AD order on kegs from Germany should
be revoked, in whole, with respect to products subject to the order
entered, or withdrawn from warehouse, for consumption on or after
December 13, 2019. Interested parties are invited to comment on these
preliminary results.
DATES: Applicable May 11, 2020.
FOR FURTHER INFORMATION CONTACT: Allison Hollander, AD/CVD Operations,
Office I, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Ave. NW,
Washington, DC 20230; telephone: (202) 482-2805.
SUPPLEMENTARY INFORMATION:
Background
On December 16, 2019, Commerce published the AD Order.\1\ On
January 30, 2020, the petitioner requested that Commerce conduct an
expedited CCR for this AD Order, pursuant to section 751(b) of the
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.216 (b). The
petitioner expressed a lack of interest in the continuation of this AD
Order and requested the revocation of the AD Order. In its request, the
petitioner addressed the conditions under which Commerce may revoke an
order in whole or in part pursuant to 19 CFR 351.222(g). On March 12,
2020, Commerce extended the deadline for initiation to April 29, 2020,
and issued supplemental questions to the petitioner.\2\ On March 19,
2020, the petitioner responded to Commerce's supplemental questions.\3\
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\1\ See Refillable Stainless Steel Kegs from the Federal
Republic of Germany and the People's Republic of China: Antidumping
Duty Orders, 84 FR 68405 (December 16, 2019) (AD Order).
\2\ See Commerce's Letter, ``Request for a Changed Circumstances
Review of the Antidumping Duty Order on Refillable Stainless Steel
Kegs from the Federal Republic of Germany: Extension of Initiation
Deadline,'' dated March 12, 2020.
\3\ See Petitioner's Letter, ``Refillable Stainless Steel Kegs
from the Federal Republic of Germany: Response to Extension of
Initiation Deadline,'' dated March 19, 2020.
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Scope of the AD Order
The merchandise covered by the order 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 order if performed in the country of manufacture
of the in-scope refillable stainless steel keg.
[[Page 27718]]
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
Act.
The merchandise covered by the order 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 the order is
dispositive.
Initiation of Changed Circumstances Review
Section 751(d)(1) of the Act and 19 CFR 351.222(g)(1)(i) provide
that Commerce may revoke an order (in whole or in part) if it
determines that producers accounting for substantially all of the
production of the domestic like product have no further interest in the
order, in whole or in part.\4\ Further, 19 CFR 351.222(g)(2) provides
that Commerce will conduct a CCR under 19 CFR 351.216, and may revoke
an order, in whole or in part, if it determines that revocation is
warranted.
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\4\ See section 782(h) of the Act.
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Under 19 CFR 351.216(c), Commerce will not review a final
determination of an investigation less than 24 months after the date of
publication of notice of the final determination unless it finds that
good cause exists. However, 19 CFR 351.216(d) provides that if Commerce
determines that good cause exists and the changed circumstances are
sufficient to warrant a review exist, it will conduct a CCR, in
accordance with 19 CFR 351.221.
Based on record information, Commerce has determined that, pursuant
to 19 CFR 351.216(c), good cause exists to conduct a CCR. The
petitioner, the sole American manufacturer of kegs, announced on
January 15, 2020 that the German producer and sole respondent in the
underlying investigation, Blefa Kegs, Inc. (Blefa), acquired a major
stake in the American Keg Company. As part of this investment, Blefa
committed substantial resources to expanding the petitioner's domestic
operations by tripling production within three years, which will allow
the petitioner to at least double its domestic employment during that
time. As a result of this change in ownership, because the petitioner
is the only American manufacturer of the domestic merchandise at issue,
the total amount of American production will increase and the
commercial situation of the American Keg Company will improve. We
therefore find that the petitioner's affirmative statement of no
interest in the AD Order, coupled with the circumstances described
above, constitute good cause for the conduct of this review.\5\
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\5\ See 19 CFR 351.216(d); see also Carbon and Certain Alloy
Steel Wire Rod from Canada: Initiation of Countervailing Duty
Changed Circumstances Review, 68 FR 62282, 62283-84 (November 3,
2003) (that ``no further interest . . . in continuing the order . .
. serves as good cause'' sufficient to review a determination made
less than 24 months after the date of publication an order).
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Both the Act and Commerce's regulations require that
``substantially all'' domestic producers express a lack of interest in
the AD Order for Commerce to revoke the AD Order.\6\ Commerce has
interpreted ``substantially all'' to represent producers accounting for
at least 85 percent of U.S. production of the domestic like product.\7\
The petitioner's request indicated that it is the sole producer of the
domestic like product and, therefore, accounts for at least 85 percent
of domestic production.
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\6\ See section 782(h) of the Act; 19 CFR 351.222(g).
\7\ [thinsp]See, e.g., Certain Cased Pencils from the People's
Republic of China: Initiation and Preliminary Results of Antidumping
Duty Changed Circumstances Review, and Intent to Revoke Order in
Part, 77 FR 42276 (July 18, 2012), unchanged in Certain Cased
Pencils from the People's Republic of China: Final Results of
Antidumping Duty Changed Circumstances Review, and Determination To
Revoke Order, in Part, 77 FR 53176 (August 31, 2012).
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In accordance with section 751(b)(1) of the Act, 19 CFR 351.216, 19
CFR 351.221, and 351.222(g), we are initiating this CCR.
Preliminary Results of Changed Circumstances Review
If we conclude that expedited action is warranted, we may
concurrently publish the notices of initiation and preliminary results
of a CCR.\8\ Commerce has combined the notice of initiation and
preliminary results in CCRs when sufficient documentation has been
provided supporting the request to make a preliminary determination.\9\
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\8\ See 19 CFR 351.221(c)(3)(ii).
\9\ See, e.g., Multilayered Wood Flooring from the People's
Republic of China: Initiation and Preliminary Results of Antidumping
and Countervailing Duty Changed Circumstances Reviews, 82 FR 9561
(February 7, 2017), unchanged in Multilayered Wood Flooring from the
People's Republic of China: Final Results of Changed Circumstances
Reviews, 82 FR 14691 (March 22, 2017).
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In this instance, we have determined that there is significant
information on the record to support a finding of changed
circumstances. Indeed, the petitioner has provided us, we believe, with
sufficient information to have a clear understanding of the change in
the commercial situation of the American Keg Company, as well as its
revised relationship with imports of subject merchandise from Germany
(and Blefa, in particular). Accordingly, we find that expedited action
is warranted and we are combining the notice of initiation and the
notice of preliminary results, in accordance with 19 CFR
351.221(c)(3)(ii).
In accordance with 19 CFR 351.222(g), Commerce preliminarily
determines that there is a reasonable basis to believe that changed
circumstances exist sufficient to warrant revocation of the AD Order.
Therefore, Commerce is notifying the public of its preliminary intent
to revoke the AD Order in whole.
If we make a final determination to revoke, we will instruct U.S.
Customs and Border Protection (CBP) to discontinue the suspension of
liquidation and the collection of cash deposits of estimated AD duties,
to liquidate all unliquidated entries that were entered on or after
December 13, 2019, without regard to AD duties, and to refund all AD
cash deposits on all such merchandise, with applicable interest.
Because the International Trade Commission (ITC) found material
retardation of the establishment of an industry in the United States,
as opposed to finding material injury, Commerce instructed CBP in
accordance with section 736(b)(2) of the Act to terminate any
retroactive suspension of liquidation and refund any cash deposits
required to secure the payment of AD duties with respect to entries of
kegs entered, or withdrawn from warehouse, for consumption before the
date of publication of the ITC's final affirmative determination, i.e.,
December 13, 2019. We therefore intend to revoke the AD Order
retroactively as of that date, should we determine in the final CCR
that revocation is warranted.
[[Page 27719]]
Public Comment
Any interested party may request a hearing within 14 days of
publication of this notice, in accordance with 19 CFR 351.310(c).
Interested parties may submit case briefs not later than 14 days after
the date of publication of this notice.\10\ Rebuttal comments, limited
to issues raised in the case briefs, may be filed by no later than
three days after the deadline for filing case briefs.\11\ Any hearing,
if requested, will normally be held two days after rebuttal briefs/
comments are due, in accordance with 19 CFR 351.310(d)(1). Issues
raised in the hearing will be limited to those raised in the respective
case and rebuttal briefs.\12\ Parties who submit case or rebuttal
briefs in this CCR are requested to submit with each argument: (1) A
statement of the issue; (2) a brief summary of the argument; and (3) a
table of authorities.\13\ Note that Commerce has temporarily modified
certain of its requirements for serving documents containing business
proprietary information, until May 19, 2020, unless extended.\14\
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\10\ See 19 CFR 321.309(c)(1)(ii).
\11\ See 19 CFR 351.309(d)(1).
\12\ See 19 CFR 351.310(c).
\13\ See 19 CFR 351.309(c)(2) and (d)(2).
\14\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19, 85 FR 17006 (March 26, 2020).
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Unless extended, consistent with 19 CFR 351.216(e), we intend to
issue the final results of this CCR no later than 270 days after the
date on which this review was initiated, or within 45 days of
publication of these preliminary results if all parties agree to our
preliminary findings.
Notification to Interested Parties
We are issuing and publishing this initiation and preliminary
results notice in accordance with sections 751(b) and 777(i) of the
Act, and 19 CFR 351.216, 351.221(b)(1), (b)(4), and (c)(3), and
351.222(f)(2)(iv).
Dated: April 28, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2020-10025 Filed 5-8-20; 8:45 am]
BILLING CODE 3510-DS-P