Kegs: Commerce Issues AD Duty Final Determinations for China and Germany

The next step is for the International Trade Commission to make its final injury determination, currently scheduled for Dec. 2. If the ITC finds injury, Commerce will issue an AD duty order and duties will be made permanent. If the ITC finds no injury, the investigation will be terminated and all cash deposits will be refunded.

One Chinese company, Ningbo Master, will be exempt from any AD duty order issued in connection with this investigation, as a result of the zero percent AD rate Commerce calculated for the company in its final determination on China. Ningbo Master is not currently set to be excluded from any CV duty order.

Commerce also assigned that zero rate to two non-individually investigated companies that qualified for their own AD rates, but the agency says those two companies, Jingye and Ulix, will not be exempt from any eventual AD duty order. This is in line with recent Court of International Trade precedent, Commerce said.

Commerce is also issuing its final determination in the concurrent countervailing duty investigation on refillable stainless steel kegs from China (see 1910230015), setting CV duty rates at 16.21% to 145.23% for Chinese exporters. Collection of CV duties is currently on hold pending the ITC's final injury determination. The agency also recently issued an AD duty order covering refillable stainless steel kegs from Mexico (see 1910090014).

Critical Circumstances for Most Chinese Exporters, Cash Deposits Still Retroactive 90 Days

Commerce finalized its determination that most exporters of refillable stainless steel kegs from China (i.e., all except Ningbo Master, Jingye and Ulix) increased their exports to the U.S. in the months before the preliminary determination of this investigation. As a result of this "critical circumstances" finding, Commerce continues to retroactively suspend liquidation and require AD duty cash deposits for these exporters as of 90 days before the preliminary determination, i.e., March 6, 2019. For Ningbo Master, Jingye and Ulix, as well as all German companies, AD duty cash deposit collection remains in effect for entries on or after June 4, 2019.

Suspension of liquidation and CV duty cash deposit collection remains in effect for most Chinese companies, including Ningbo Master, Jingye and Ulix, as of April 5, 2019 (the date of Commerce's preliminary CV duty determination). Suspension of liquidation may be in effect even earlier for 19 Chinese companies (i.e., as of Jan. 5, 2019), due to Commerce's critical circumstances finding for those 19 exporters. Commerce has discontinued CV duty suspension of liquidation for entries on or after Aug. 3.

Estimated AD Cash Deposit Rates

Commerce will instruct CBP to continue to suspend liquidation for AD duty purposes and collect cash deposits for subject merchandise entered on or after the dates listed below, and set cash deposit rates as follows beginning Oct. 23:

Germany

China

*As adjusted for export subsidies found in the concurrent CV duty investigation. This adjustment is not in effect, and will only be the cash deposit rate once CV duty collection resumes upon publication of the ITC's final injury determination.

(The period of investigation is 07/01/17 - 06/30/18 for Germany, and 01/01/18 through 06/30/18 for China. See Commerce’s notice for more information, including the scope of the investigation, detailed instructions on cash deposit rates, etc. See 1906030026 for a summary of the preliminary determination of this investigation.)

(Federal Register 10/24/19)