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New AD/CV Duties Requested on Kegs From Germany, Mexico and China

The American Keg Company recently filed a petition with the Commerce Department and the International Trade Commission requesting new antidumping duties on refillable stainless steel kegs from Germany, Mexico and China, and new countervailing duties on refillable stainless steel kegs from China. Commerce will now decide whether to begin AD/CVD investigations on refillable stainless steel kegs that could eventually result in the assessment of AD/CV duties.

The earliest date that liquidation could be suspended and countervailing duty cash deposits required in connection with these investigations is Oct. 10, 2018, a news alert from law firm Grunfeld Desiderio said. For antidumping duties, it's Nov. 29, 2018. Both of these estimates presume a finding of "critical circumstances" and retroactive suspension of liquidation 90 days prior to Commerce's preliminary determination with no extensions of Commerce's deadlines.

Proposed Scope

The petition proposes the following scope for the investigations:

The merchandise covered by this investigation are cylindrical kegs, vessels, or containers capable of being pressurized 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) ("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, regardless of finish, 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 filled or unfilled. Assembled refillable stainless steel kegs must be capable of being pressurized to 60 pounds per square inch ("PSI") and must be tested to 90 PSI.

"Unassembled" or "unfinished" refillable stainless steel kegs include drawn stainless steel cylinders that have been welded to form the body of the keg and welded 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 manufacture of the in-scope refillable stainless steel keg.

Specifically excluded are the following:

(1) vessels or containers that are not cylindrical in nature;

(2) stainless steel kegs, vessels, or Containers that have either a "ball lock" valve system or a "pin lock" valve system (commonly known as a "Cornelius," "corny" or "ball lock" kegs);

(3) any fully assembled or finished stainless steel keg, vessel, or container that is incompatible with a "D Sankey" extractor (commonly known as a "D Coupler" or "Sankey"); and

(4) necks, spears, couplers or taps, collars, and valves that are not imported with the subject merchandise.

(5) 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 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.

Commerce Accepting Comments on Petition Support

The Commerce Department is accepting comments on domestic industry support for the petitions to determine whether the petitions meet the dual requirements of support by domestic producers or workers accounting for (1) at least 25% of the total production of the domestic-like product and (2) more than 50% of the production of the domestic-like product produced by that portion of the industry expressing support for, or opposition to, the petition. If the petitions meet these requirements, among others, Commerce will initiate antidumping and countervailing duty investigations. Comments are due on or about Oct. 10.

Email ITTNews@warren-news.com for a copy of the petition.