China Non-Refillable Steel Cylinders: New AD/CVD Investigations Deadlines & Scope

The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on non-refillable steel cylinders from China (A-570-126/C-570-127). The CV duty investigation covers entries Jan. 1, 2019, through Dec. 31, 2019. The AD duty investigation covers entries July 1, 2019, through Dec. 31, 2019.

The International Trade Commission will conduct a concurrent investigation to determine whether imports of dumped and illegally subsidized lawn mower engines are injuring U.S. industry. If the ITC finds no injury in its preliminary injury determination, due May 11, the investigations will immediately end. If Commerce finds dumping or illegal subsidization in the preliminary determinations of these investigations, currently due in June for CV duties and September for AD duties, it will set AD and/or CV duty cash deposit requirements for imports of merchandise subject to the investigation. If both Commerce and the ITC reach affirmative final determinations, Commerce will issue orders making duties permanent and beginning a process of annual administrative reviews to set final assessments of AD/CV duties on importers and potentially change AD/CV duty cash deposit rates.

If duties are imposed, Chinese producers and exporters who do not demonstrate independence from government control and request eligibility for a “separate rate” will be assigned the antidumping duty “China-wide rate,” which can reach more than 200 percent for some products. Separate rate applications from Chinese producers and exporters will be available (here), and are due on or about May 22.

AD/CVD Respondent Selection

Commerce will base respondent selection in these AD/CV duty investigations on CBP import data quantity and value questionnaires to each potential respondent. Chinese exporters that don't get a quantity and value questionnaire can still submit one by obtaining the antidumping or countervailing duty questionnaires from the Commerce website. Responses are due May 4.

Scope of the AD/CVD Investigations

The merchandise covered by this investigation is certain seamed (welded or brazed), nonrefillable steel cylinders meeting the requirements of, or produced to meet the requirements of, U.S. Department of Transportation (USDOT) 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 300 cubic inch (4.9 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 unfilled at the time of importation.

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 7310.29.0025 and 7310.29.0050. Although the HTSUS statistical reporting numbers are provided for convenience and customs purposes, the written description of the merchandise is dispositive.

Comments on the scope of these investigations are due by May 6.

Investigations Timetable

*If the ITC makes a negative determination of injury, the investigations are terminated.

†These deadlines may be extended under the governing statute.

‡This will take place only in the event of Commerce Department final affirmative determinations.

+This will take place only in the event of Commerce and ITC final affirmative determinations.

The Commerce Department fact sheet on the initiation of these investigations is (here). See 2004010043 for a summary of the petition requesting these investigations.

(Federal Register 04/22/20)