[Federal Register Volume 84, Number 241 (Monday, December 16, 2019)]
[Notices]
[Pages 68400-68401]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27129]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-094]


Refillable Stainless Steel Kegs From the People's Republic of 
China: Countervailing Duty Order

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing a countervailing duty order on refillable stainless 
steel kegs from the People's Republic of China (China).

DATES: Applicable December 16, 2019.

FOR FURTHER INFORMATION CONTACT: Theodore Pearson or 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) 482-2631 
or (202) 482-1395, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    In accordance with sections 705(a), 735(d), and 777(i)(1) of the 
Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(c), on 
October 24, 2019, Commerce published its affirmative final 
determination in the countervailing duty investigation of refillable 
stainless steel kegs from China,\1\ including its affirmative 
determination of critical circumstances. On December 9, 2019, the ITC 
notified Commerce of its final determination pursuant to section 
705(b)(1)(B) of the Act that an industry in the United States is 
materially retarded by reason of subsidized imports of refillable 
stainless steel kegs from China, and its determination that critical 
circumstances do not exist with respect to imports of subject 
merchandise from China.\2\
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    \1\ See Refillable Stainless Steel Kegs from China: Final 
Affirmative Countervailing Duty Determination and Final Affirmative 
Determination of Critical Circumstances, in Part, 84 FR 57005 
(October 24, 2019).
    \2\ See Notification Letter from the ITC dated December 9, 2019 
(ITC Letter).
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Scope of the Order

    The merchandise covered by this order are refillable stainless 
steel kegs from China. For a complete description of the scope of the 
order, see the appendix to this notice.

Countervailing Duty Order

    As stated above, on December 9, 2019, in accordance with sections 
705(b)(1)(B) and 735(d) of the Act, the ITC notified Commerce of its 
final determination in this investigation, in which it found that the 
establishment of an industry in the United States is materially 
retarded by reason of subsidized imports of refillable stainless steel 
kegs from China, and that critical circumstances do not exist with 
respect to imports of subject merchandise from China that are subject 
to Commerce's affirmative critical circumstances findings. Therefore, 
in accordance with section 705(c)(2) of the Act, Commerce is issuing 
this countervailing duty order.
    Because the ITC's final determination is that the establishment of 
an industry in the United States is materially retarded by subsidized 
imports of refillable stainless steel kegs from China, and is not 
accompanied by a finding that injury would have resulted but for the 
imposition of suspension of liquidation of entries since Commerce's 
Preliminary Determination,\3\ section 706(b)(2) of the Act is 
applicable. Accordingly, Commerce will instruct U.S. Customs and Border 
Protection (CBP) to terminate the suspension of liquidation, and to 
liquidate without regard to countervailing duties, unliquidated entries 
of refillable stainless steel kegs from China entered, or withdrawn 
from warehouse, for consumption prior to the publication of the ITC's 
final determination, and to release any bond or other security posted 
and to refund any cash deposit of estimated countervailing duties made 
prior to the publication of the ITC's final determination.
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    \3\ See Refillable Stainless Steel Kegs from China: Preliminary 
Affirmative Countervailing Duty Determination and Alignment of Final 
Determination With Final Antidumping Duty Determination, 84 FR 13634 
(April 5, 2019) (Preliminary Determination).
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Suspension of Liquidation

    In accordance with section 706 of the Act, Commerce will instruct 
CBP to reinstate the suspension of liquidation of all appropriate 
entries of refillable stainless steel kegs from China, as described in 
the appendix to this notice, effective on the date of publication in 
the Federal Register of the ITC's final determination, and to collect 
cash deposits of estimated countervailing duties for each entry of 
subject merchandise equal to the rates noted below. The all-others rate 
applies to all producers or exporters not specifically listed.

Critical Circumstances

    With regard to the ITC's negative critical circumstances 
determination on imports of refillable stainless steel kegs from China, 
we will instruct CBP to lift suspension and to refund any cash deposits 
made to secure the payment of estimated countervailing duties with 
respect to entries of the subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after January 5, 2019 (i.e., 90 
days prior to the date of the publication of the Preliminary 
Determination), but before April 5, 2019 (i.e., the date of publication 
of the Preliminary Determination).

Estimated Subsidy Rates

    The estimated subsidy rates are as follows:

[[Page 68401]]



------------------------------------------------------------------------
                                                        Net subsidy rate
                  Producer/exporter                        (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
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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Provisional Measures

    Section 703(d) of the Act states that the suspension of liquidation 
pursuant to an affirmative preliminary determination may not remain in 
effect for more than four months. Commerce published the Preliminary 
Determination on April 5, 2019. Therefore, the four-month period 
beginning on the date of the publication of the Preliminary 
Determination ended on August 1, 2019. In accordance with section 
703(d) of the Act, Commerce instructed CBP to terminate the suspension 
of liquidation and to liquidate, without regard to countervailing 
duties, unliquidated entries of refillable stainless steel kegs from 
China entered, or withdrawn from warehouse, for consumption after 
August 1, 2019, the date the provisional measures expired. Suspension 
of liquidation will resume on the date of publication in the Federal 
Register of the ITC's determination that the establishment of an 
industry was materially retarded by reason of subsidized imports.

Notification to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to refillable stainless steel kegs from China pursuant to section 
706(a) of the Act. Interested parties can find a list of countervailing 
duty orders currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: December 11, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the 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.
    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 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.

[FR Doc. 2019-27129 Filed 12-13-19; 8:45 am]
 BILLING CODE 3510-DS-P