The Department of Commerce announced its affirmative preliminary determination in the countervailing duty investigation of imports of high pressure steel cylinders from the People Republic of China.
For purposes of CVD investigations, subsidies are financial assistance from foreign governments that benefit the production, manufacture, or exportation of goods. Mandatory respondent Beijing Tianhai Industry Co Ltd received a preliminary net subsidy rate of 22.34% ad valorem.
All other Chinese producers/exporters received a preliminary net subsidy rate of 22.34% ad valorem. As a result of this preliminary determination, Commerce will instruct US Customs and Border Protection to collect a cash deposit or bond based on these preliminary rates.
The merchandise covered by the scope of this investigation is seamless steel cylinders designed for storage or transport of compressed or liquefied gas. High pressure steel cylinders are fabricated of chrome alloy steel including, but not limited to, chromium-molybdenum steel or chromium magnesium steel and have permanently impressed into the steel either before or after importation the symbol of a US Department of Transportation, Pipeline and Hazardous Materials Safety Administration approved high pressure steel cylinder manufacturer as well as an approved DOT type marking of DOT 3A, 3AX, 3AA, 3AAX, 3B, 3E, 3HT, 3T, or DOT-E in accordance with the requirements of sections 178.36 through 178.68 of Title 49 of the Code of Federal Regulations, or any subsequent amendments thereof.
High pressure steel cylinders covered by these investigations have a water capacity up to 450 liters and a gas capacity ranging from 8 to 702 cubic feet regardless of corresponding service pressure levels and regardless of physical dimensions, finish or coatings. Excluded from the scope of this investigation is high pressure steel cylinders manufactured to UN-ISO-9809-1 and 2 specifications and permanently impressed with ISO or UN symbols. Also excluded from these investigations are acetylene cylinders with or without internal porous mass and permanently impressed with 8A or 8AL in accordance with DOT regulations.
Merchandise covered by this investigation is classified in the Harmonized Tariff Schedule of the United States under subheading 7311.00.00.30. Subject merchandise may also enter under HTSUS subheadings 7311.00.0060 or 7311.00.00.90. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the merchandise under this investigation is dispositive.
In 2010, imports of high pressure steel cylinders from China were valued at an estimated USD 48.8 million. Commerce is currently scheduled to make its final determination in February 2012. If Commerce makes an affirmative final determination and the US International Trade Commission makes an affirmative final determination that imports of high pressure steel cylinders from China materially injure or threaten material injury to the domestic industry, Commerce will issue a CVD order. The ITC is scheduled to make its final injury determination in April 2012.
