DOC Issues Preliminary Determination in CVD Investigation of Chinese Steel Propane Cylinders

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The U.S. Department of Commerce. qingwa/Adobe Stock

The U.S. Department of Commerce (DOC) earlier this week issued an affirmative preliminary determination in its countervailing duty investigation of imports of steel propane cylinders from China.

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The DOC determined Chinese exporters of steel propane cylinders received countervailable subsidies ranging from 42.77% to 145.37%.

According to the DOC, imports of the cylinders from China were valued at $89.8 million in 2017.

The domestic petitioners in the investigation are Worthington Industries (Columbus, Ohio) and Manchester Tank & Equipment Co. (Franklin, Tennessee). The petitioners filed their cases May 22, 2018.

“The merchandise covered by this investigation is steel cylinders for compressed or liquefied propane gas (steel propane cylinders) meeting the requirements of, or produced to meet the requirements of, U.S. Department of Transportation (USDOT) Specifications 4B, 4BA, or 4BW, or Transport Canada Specification 4BM, 4BAM, or 4BWM, or United Nations pressure receptacle standard ISO 4706,” the DOC fact sheet for the investigation notes.

The DOC identified several Chinese exporters for the upper end of the countervailable duty range (145.37%):

  • TPA Metals and Machinery (SZ) Co. Ltd.
  • Guangzhou Lion Cylinders Co. Ltd. 
  • Hubei Daly LPG Cylinder Manufacturer Co. Ltd. 
  • Taishan Machinery Factory Ltd. 
  • Wuyi Xilinde Machinery Manufacture Co., Ltd. 
  • Zhejiang Jucheng Steel Cylinder Co., Ltd. 

Meanwhile, the DOC identified Shandong Huanri Group Co. Ltd. for the 42.77% duty. The 42.77% duty figure was also applied to all other Chinese exporters.

The DOC is scheduled to make its final determination in the investigation by March 4, 2019. If it rules in the affirmative, the investigation moves to the U.S. International Trade Commission (USITC), which would be scheduled to rule by April 18, 2019.

If the USITC also rules in the affirmative, the DOC would issue countervailing duty orders by April 25, 2019.

Imports of the steel cylinders surged last year.

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According to the DOC fact sheet, citing Census Bureau data, the U.S. imported 4,006,413 units last year, up 148.3% from the 1,613,360 units imported in 2016.

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