Government Targets Imported Cylinders

On December 8, 2011, the Department of Commerce announced its affirmative preliminary determination in the antidumping (AD) duty investigation of imports of high pressure steel cylinders from the People’s Republic of China. Commerce is currently scheduled to make its final determination in February 2012.

Dumping occurs when a foreign company sells a product in the United States at less than fair value. In 2010, imports of high pressure steel cylinders from China were valued at an estimated $48.8 million. Commerce preliminarily determined that Chinese producers/exporters have sold high pressure steel cylinders at margins ranging from 5.08 to 26.23 percent. Three exporters qualified for a separate dumping rate of 5.08 percent. All other Chinese exporters received a preliminary dumping rate of 26.23 percent.

As a result of this preliminary determination, Commerce will instruct U.S. 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 U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration (“DOT”)-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 (followed by a specific exemption number) 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 are 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.

Gases and Welding Distributors Association