Cylinder Dumping Investigation Launched by Commerce Department

The U.S. Department of Commerce has initiated an investigation to determine whether steel propane cylinders from China, Taiwan, and Thailand are being dumped in the U.S., as well as a countervailing duty probe to resolve if producers in China are receiving unfair subsidies.

The investigations were initiated based on petitions filed by Worthington Cylinders (Columbus, Ohio) and Manchester Tank & Equipment Co. (Franklin, Tenn.) in May. There are 18 alleged subsidy programs for China—two loan programs, three export credit/guarantee programs, five tax programs, three provision of goods for less than adequate remuneration programs, and five grant programs. The alleged dumping margins are: China from 55.41% to 108.6%, Taiwan from 28.19% to 66.20%, and Thailand 47.67% to 122.48%.

In the dumping investigation, Commerce will determine whether imports of steel propane cylinders from the three countries are being dumped in the U.S. market at less than fair value. In the countervailing duty probe, the department will seek whether Chinese manufacturers of steel propane cylinders are receiving unfair government subsidies.

If the Commerce Department makes affirmative findings in the investigations, and if the U.S. International Trade Commission determines that dumped and/or unfairly subsidized U.S. imports of steel cylinders from China, Taiwan, and Thailand are causing injury to U.S. industry, Commerce will impose duties on imports in the amount of dumping and/or unfair subsidization found to exist. The department reports that imports of steel propane cylinders from China were valued at an estimated $89.8 million last year. Imports from Taiwan were worth $10.1 million, and Thailand $13.1 million.

During the Department of Commerce’s investigations, the International Trade Commission will conduct its own investigations into whether U.S. industry and its workforce are being harmed by imports. The agency will make its preliminary determinations on or before July 6. If it determines there is injury, or threat of injury, the Commerce Department’s investigations will proceed, with the preliminary countervailing duty probe determination scheduled for Aug. 15 and the dumping decision scheduled for Oct. 29, unless those deadlines are extended.

If Commerce determines in its preliminary findings that dumping and/or unfair subsidization is occurring, it will instruct U.S. Customs and Border Protection to start collecting cash deposits from all U.S. companies importing steel propane cylinders from China, Taiwan, and Thailand. Final determinations in the cases are scheduled for Oct. 29 and Jan. 14. Again, those dates may be extended. Conversely, if Commerce determines products are not being dumped, or being unfairly subsidized, or if the International Trade Commission finds there is no harm to U.S. industry, then the investigations will be terminated and no duties will be applied.

(SOURCE: The Weekly Propane Newsletter, June 25, 2018, published by Butane Propane News (BPN).