Cast Iron Soil Pipe From the People's Republic of China: Initiation of Less-Than-Fair Value Investigation, 8053-8058 [2018-03751]
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Federal Register / Vol. 83, No. 37 / Friday, February 23, 2018 / Notices
Federal Register on June 26, 2017 (82
FR 28826).
FOR FURTHER INFORMATION CONTACT:
Joseph Flynn, Director, Office of Trade
and Economic Analysis, International
Trade Administration, (202) 482–5131
(this is not a toll-free number) or email
at etca@trade.gov.
SUPPLEMENTARY INFORMATION: Title III of
the Export Trading Company Act of
1982 (15 U.S.C. Sections 4001–21) (the
Act) authorizes the Secretary of
Commerce to issue Export Trade
Certificates of Review. An Export Trade
Certificate of Review protects the holder
and the members identified in the
Certificate from State and Federal
government antitrust actions and from
private treble damage antitrust actions
for the export conduct specified in the
Certificate and carried out in
compliance with its terms and
conditions. The regulations
implementing Title III are found at 15
CFR part 325 (2015). OTEA is issuing
this notice pursuant to 15 CFR 325.6(b),
which requires the Secretary of
Commerce to publish a summary of the
certification in the Federal Register.
Under Section 305(a) of the Act and 15
CFR 325.11(a), any person aggrieved by
the Secretary’s determination may,
within 30 days of the date of this notice,
bring an action in any appropriate
district court of the United States to set
aside the determination on the ground
that the determination is erroneous.
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Description of Certified Conduct
CAEA’s Export Trade Certificate of
Review has been amended to:
• Add Stewart & Jasper Marketing, Inc.
as a Member
CAEA’s Export Trade Certificate of
Review Membership, as amended, is
listed below:
Almonds California Pride, Inc.,
Caruthers, CA
Baldwin-Minkler Farms, Orland, CA
Blue Diamond Growers, Sacramento, CA
Campos Brothers, Caruthers, CA
Chico Nut Company, Chico, CA
Del Rio Nut Company, Livingston, CA
Fair Trade Corner, Inc., Chico, CA
Fisher Nut Company, Modesto, CA
Hilltop Ranch, Inc., Ballico, CA
Hughson Nut, Inc., Hughson, CA
Mariani Nut Company, Winters, CA
Nutco, LLC d.b.a. Spycher Brothers,
Turlock, CA
P–R Farms, Inc., Clovis, CA
Roche Brothers International Family
Nut Co., Escalon, CA
RPAC, LLC, Los Banos, CA
South Valley Almond Company, LLC,
Wasco, CA
Stewart & Jasper Marketing, Inc.,
Newman, CA
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SunnyGem, LLC, Wasco, CA
Western Nut Company, Chico, CA
Wonderful Pistachios & Almonds, LLC,
Los Angeles, CA
The effective date of the amended
certificate is November 14, 2017, the
date on which CAEA’s application to
amend was deemed submitted.
Dated: February 20, 2018.
Joseph E. Flynn,
Director, Office of Trade and Economic
Analysis, International Trade Administration,
U.S. Department of Commerce.
[FR Doc. 2018–03747 Filed 2–22–18; 8:45 am]
BILLING CODE 3510–DR–P
DEPARTMENT OF COMMERCE
International Trade Administration
[A–570–079]
Cast Iron Soil Pipe From the People’s
Republic of China: Initiation of LessThan-Fair Value Investigation
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
DATES: Applicable February 15, 2018.
FOR FURTHER INFORMATION CONTACT:
Javier Barrientos at (202) 482–2243, AD/
CVD Operations, Enforcement &
Compliance, International Trade
Administration, U.S. Department of
Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
AGENCY:
The Petition
On January 26, 2018, the Department
of Commerce (Commerce) received an
antidumping duty (AD) petition
concerning imports of cast iron soil pipe
(soil pipe) from the People’s Republic of
China (China), filed in proper form, on
behalf of the Cast Iron Soil Pipe Institute
(the petitioner).1 The petitioner is a
trade association, whose members are
all domestic producers of soil pipe.2
The AD petition was accompanied by a
countervailing duty (CVD) petition for
soil pipe from China.3
On January 31, 2018, Commerce
requested additional information and
clarification of certain areas of the
1 See Letter to the Secretary of Commerce from
the petitioner re: Cast Iron Pipe from the People’s
Republic of China—Petition for the Imposition of
Antidumping and Countervailing Duties, dated
January 26, 2018 (Petition).
2 See Volume I of the Petition at 2. The individual
members of the Cast Iron Soil Pipe Institute are
AB&I Foundry, Charlotte Pipe & Foundry, and Tyler
Pipe.
3 See Volume III of the Petition.
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Petition.4 The petitioner filed responses
to these requests on February 2, 2018.5
In accordance with section 732(b) of
the Tariff Act of 1930, as amended (the
Act), the petitioner alleges that imports
of soil pipe from China are being, or are
likely to be, sold in the United States at
less-than-fair value within the meaning
of section 731 of the Act, and that, such
imports are materially injuring, or
threatening material injury to, an
industry in the United States. Also,
consistent with section 732(b)(1) of the
Act, the Petition is accompanied by
information reasonably available to the
petitioner supporting its allegations.
Commerce finds that the petitioner
filed the Petition on behalf of the
domestic industry because the
petitioner is an interested party as
defined in section 771(9)(E) of the Act.
Commerce also finds that the petitioner
demonstrated sufficient industry
support with respect to the initiation of
the AD investigation that the petitioner
is requesting.6
Period of Investigation
Because the Petition was filed on
January 26, 2018, pursuant to 19 CFR
351.204(b)(1), the period of
investigation (POI) is July 1, 2017,
through December 31, 2017.
Scope of the Investigation
The product covered by this
investigation is soil pipe from China.
For a full description of the scope of this
investigation, see the ‘‘Scope of the
Investigation,’’ in the Appendix to this
notice.
Comments on the Scope of the
Investigation
On February 2, 2018, in response to
a question from Commerce, the
petitioner filed a revision to the scope
language.7
4 See Letters from Commerce, ‘‘Petition for the
Imposition of Antidumping Duties on Imports of
Cast Iron Soil Pipe from the People’s Republic of
China: Supplemental Questions,’’ dated January 31,
2018, and ‘‘Petition for the Imposition of
Antidumping Duties on Imports of Cast Iron Soil
Pipe from the People’s Republic of China: General
Issues Supplemental Questions,’’ dated January 31,
2018.
5 See Letters from the petitioner, ‘‘Cast Iron Soil
Pipe from the People’s Republic of China: Response
to Supplemental Questions—General Issues,’’ dated
February 2, 2018 (General Issues Supplement), and
‘‘Cast Iron Soil Pipe from the People’s Republic of
China: Response to Supplemental Questions—
Antidumping Duties,’’ dated February 2, 2018 (AD
Supplemental Response).
6 See ‘‘Determination of Industry Support for the
Petition’’ section, below.
7 See General Issues Supplement at Exhibit 1.
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Federal Register / Vol. 83, No. 37 / Friday, February 23, 2018 / Notices
As discussed in the preamble to
Commerce’s regulations,8 we are setting
aside a period for interested parties to
raise issues regarding product coverage
(i.e., scope). Commerce will consider all
comments received from interested
parties and, if necessary, will consult
with the interested parties prior to the
issuance of the preliminary
determination. If scope comments
include factual information,9 all such
factual information should be limited to
public information. In order to facilitate
preparation of its questionnaire,
Commerce requests all interested parties
to submit such comments by 5:00 p.m.
Eastern Time (ET) on Wednesday,
March 7, 2018, which is 20 calendar
days from the signature date of this
notice. Any rebuttal comments, which
may include factual information, must
be filed by 5:00 p.m. ET on Monday,
March 19, 2018, which is the next
business day after the tenth calendar
day from the deadline for initial
comments.10 All such comments must
be filed on the record of each of the
concurrent AD and CVD investigations.
Commerce requests that any factual
information the parties consider
relevant to the scope of the investigation
be submitted during this time period.
However, if a party subsequently finds
that additional factual information
pertaining to the scope of the
investigation may be relevant, the party
may contact Commerce and request
permission to submit the additional
information. As stated above, all such
comments must be filed on the record
of the concurrent AD and CVD
investigations.
daltland on DSKBBV9HB2PROD with NOTICES
Filing Requirements
All submissions to Commerce must be
filed electronically using Enforcement &
Compliance’s Antidumping Duty and
Countervailing Duty Centralized
Electronic Service System (ACCESS).11
An electronically-filed document must
be received successfully in its entirety
by the time and date it is due.
Documents excepted from the electronic
submission requirements must be filed
manually (i.e., in paper form) with
8 See Antidumping Duties; Countervailing Duties:
Final Rule, 62 FR 27296, 27323 (May 19, 1997).
9 See 19 CFR 351.102(b)(21).
10 See 19 CFR 351.303(b).
11 See 19 CFR 351.303 (for general filing
requirements); see also Antidumping and
Countervailing Duty Proceedings: Electronic Filing
Procedures; Administrative Protective Order
Procedures, 76 FR 39263 (July 6, 2011), for details
of Commerce’s electronic filing requirements,
which went into effect on August 5, 2011.
Information on help using ACCESS can be found at
https://access.trade.gov/help.aspx, and a handbook
can be found at https://access.trade.gov/help/
Handbook%20on%20Electronic%20Filling
%20Procedures.pdf.
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Enforcement & Compliance’s APO/
Dockets Unit, Room 18022, U.S.
Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230, and stamped with the date
and time of receipt by the applicable
deadlines.
Comments on Product Characteristics
for AD Questionnaires
Commerce requests comments from
interested parties regarding the
appropriate physical characteristics of
soil pipe to be reported in response to
Commerce’s AD questionnaire. This
information will be used to identify the
key physical characteristics of the
merchandise under consideration in
order to report the relevant factors and
costs of production accurately as well as
to develop appropriate productcomparison criteria.
Interested parties will have the
opportunity to provide any information
or comments that they feel are relevant
to the development of an accurate list of
physical characteristics. Specifically,
they may provide comments as to which
characteristics are appropriate to use as:
(1) General product characteristics; and
(2) product-comparison criteria. We
note that it is not always appropriate to
use all product characteristics as
product-comparison criteria. We base
product-comparison criteria on
meaningful commercial differences
among products. In other words,
although there may be some physical
product characteristics used by
manufacturers to describe soil pipe, it
may be that only a select few product
characteristics take into account
commercially-meaningful physical
characteristics. In addition, interested
parties may comment on the order in
which the physical characteristics
should be used in matching products.
Generally, Commerce attempts to list
the most important physical
characteristics first and the least
important characteristics last.
In order to consider the suggestions of
interested parties in developing and
issuing the AD questionnaire, all
comments must be filed by 5:00 p.m. ET
on March 7, 2018. Any rebuttal
comments, which may include factual
information, must be filed by 5:00 p.m.
ET on March 19, 2018. All comments
and submissions to Commerce must be
filed electronically using ACCESS, as
explained above, on the record of the
less-than-fair value investigation.
Determination of Industry Support for
the Petition
Section 732(b)(1) of the Act requires
that a petition be filed on behalf of the
domestic industry. Section 732(c)(4)(A)
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of the Act provides that a petition meets
this requirement if the domestic
producers or workers who support the
petition account for: (i) At least 25
percent of the total production of the
domestic like product; and (ii) more
than 50 percent of the production of the
domestic like product produced by that
portion of the industry expressing
support for, or opposition to, the
petition. Moreover, section 732(c)(4)(D)
of the Act provides that, if the petition
does not establish support of domestic
producers or workers accounting for
more than 50 percent of the total
production of the domestic like product,
Commerce shall: (i) Poll the industry or
rely on other information in order to
determine if there is support for the
petition, as required by subparagraph
(A); or (ii) determine industry support
using a statistically valid sampling
method to poll the ‘‘industry.’’
Section 771(4)(A) of the Act defines
the ‘‘industry’’ as the producers as a
whole of a domestic like product. Thus,
to determine whether a petition has the
requisite industry support, the statute
directs Commerce to look to producers
and workers who produce the domestic
like product. The International Trade
Commission (ITC), which is responsible
for determining whether ‘‘the domestic
industry’’ has been injured, must also
determine what constitutes a domestic
like product in order to define the
industry. While both Commerce and the
ITC must apply the same statutory
definition regarding the domestic like
product,12 they do so for different
purposes and pursuant to a separate and
distinct authority. In addition,
Commerce’s determination is subject to
limitations of time and information.
Although this may result in different
definitions of the like product, such
differences do not render the decision of
either agency contrary to law.13
Section 771(10) of the Act defines the
domestic like product as ‘‘a product
which is like, or in the absence of like,
most similar in characteristics and uses
with, the article subject to an
investigation under this title.’’ Thus, the
reference point from which the
domestic like product analysis begins is
‘‘the article subject to an investigation’’
(i.e., the class or kind of merchandise to
be investigated, which normally will be
the scope as defined in a petition).
With regard to the domestic like
product, the petitioner does not offer a
definition of the domestic like product
12 See
Section 771(10) of the Act.
USEC, Inc. v. United States, 132 F. Supp.
2d 1, 8 (CIT 2001) (citing Algoma Steel Corp., Ltd.
v. United States, 688 F. Supp. 639, 644 (CIT 1988),
aff’d 865 F.2d 240 (Fed. Cir. 1989)).
13 See
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daltland on DSKBBV9HB2PROD with NOTICES
distinct from the scope of the Petition.
Based on our analysis of the information
submitted on the record, we have
determined that soil pipe, as defined in
the scope, constitutes a single domestic
like product, and we have analyzed
industry support in terms of that
domestic like product.14
In determining whether the petitioner
has standing under section 732(c)(4)(A)
of the Act, we considered the industry
support data contained in the Petition
and the General Issues Supplement with
reference to the domestic like product as
defined in the ‘‘Scope of the
Investigation,’’ in the Appendix to this
notice. The petitioner provided the 2017
production of the domestic like product
by its members.15 The petitioner states
that its members are the only known
producers of soil pipe in the United
States; therefore, the Petition is
supported by 100 percent of the U.S.
industry.16
Our review of the data provided in the
Petition, General Issues Supplement,
and other information readily available
to Commerce indicates that the
petitioner has established industry
support for the Petition.17 First, the
Petition established support from
domestic producers (or workers)
accounting for more than 50 percent of
the total production of the domestic like
product and, as such, Commerce is not
required to take further action in order
to evaluate industry support (e.g.,
polling).18 Second, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(i) of the Act
because the domestic producers (or
workers) who support the Petition
account for at least 25 percent of the
total production of the domestic like
product.19 Finally, the domestic
producers (or workers) have met the
statutory criteria for industry support
under section 732(c)(4)(A)(ii) of the Act
because the domestic producers (or
workers) who support the Petition
account for more than 50 percent of the
14 For a discussion of the domestic like product
analysis in this case, see Antidumping Duty
Investigation Initiation Checklist: Cast Iron Soil
Pipe from the People’s Republic of China (Initiation
Checklist), at Attachment II, Analysis of Industry
Support for the Antidumping and Countervailing
Duty Petitions Covering Cast Iron Soil Pipe from the
People’s Republic of China (Attachment II). This
checklist is dated concurrently with this notice and
on file electronically via ACCESS. Access to
documents filed via ACCESS is also available in the
Central Records Unit, Room B8024 of the main
Department of Commerce building.
15 See Volume I of the Petition at 4.
16 Id. at 3–4 and Exhibit I–1.
17 See Initiation Checklist at Attachment II.
18 See section 732(c)(4)(D) of the Act; see also
Initiation Checklist at Attachment II.
19 See Initiation Checklist at Attachment II.
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production of the domestic like product
produced by that portion of the industry
expressing support for, or opposition to,
the Petition.20 Accordingly, Commerce
determines that the Petition was filed on
behalf of the domestic industry within
the meaning of section 732(b)(1) of the
Act.
Commerce finds that the petitioner
filed the Petition on behalf of the
domestic industry because it is an
interested party as defined in section
771(9)(E) of the Act, and it has
demonstrated sufficient industry
support with respect to the AD
investigation that it is requesting that
Commerce initiate.21
Allegations and Evidence of Material
Injury and Causation
The petitioner alleges that the U.S.
industry producing the domestic like
product is being materially injured, or is
threatened with material injury, by
reason of the imports of the subject
merchandise sold at less than normal
value (NV). In addition, the petitioner
alleges that subject imports exceed the
negligibility threshold provided for
under section 771(24)(A) of the Act.22
The petitioner contends that the
industry’s injured condition is
illustrated by a significant and
increasing volume of subject imports;
reduced market share and increasing
market share of subject imports;
underselling and price depression; lost
sales and revenues; and negative impact
on financial results, including total
revenue, gross profits, operating income,
and net income.23 We have assessed the
allegations and supporting evidence
regarding material injury, threat of
material injury, and causation, and we
have determined that these allegations
are properly supported by adequate
evidence, and meet the statutory
requirements for initiation.24
Allegations of Sales at Less-Than-Fair
Value
The following is a description of the
allegations of sales at less-than-fair
value upon which Commerce based its
decision to initiate the AD investigation
of imports of soil pipe from China. The
sources of data for the deductions and
adjustments relating to U.S. price and
8055
NV are discussed in greater detail in the
Initiation Checklist.25
Export Price
The petitioner based the U.S. price on
export price (EP) using average unit
values (AUVs) of publicly available
import data.26 The petitioner made
deductions to U.S. price for foreign
inland freight and brokerage and
handling.27
Normal Value
Commerce considers China to be a
non-market economy (NME) country.28
In accordance with section 771(18)(C)(i)
of the Act, the presumption of NME
status remains in effect until revoked by
Commerce. The presumption of NME
status for China has not been revoked by
Commerce and, therefore, remains in
effect for purposes of the initiation of
this investigation. Accordingly, the NV
of the product is appropriately based on
factors of production (FOPs) valued in
a surrogate market economy country, in
accordance with section 773(c) of the
Act.
The petitioner argues that Brazil is an
appropriate surrogate country for China
because it is a market economy that is
at a level of economic development
comparable to that of China, it is a
significant producer of comparable
merchandise, and public information
from Brazil is available to value all
FOPs.29 Based on the information
provided by the petitioner, we
determine that it is appropriate to use
Brazil as a surrogate country for China.
Interested parties will have the
opportunity to submit comments
regarding surrogate country selection
and, pursuant to 19 CFR
351.301(c)(3)(i), will be provided an
opportunity to submit publicly available
information to value FOPs no later than
30 days before the scheduled date of the
preliminary determination.
Factors of Production
Because information regarding the
volume of inputs consumed by Chinese
producers/exporters is not reasonably
available, the petitioner based the FOPs
for materials, labor, and energy on the
25 Id.
at 6–9.
Volume II of the Petition at 3 and Exhibit
26 See
20 Id.
21 Id.
22 See Volume I of the Petition at 13–14 and
Exhibit I–7.
23 See Volume I of the Petition at 14–19 and
Exhibits I–7, I–9 and I–10; see also General Issues
Supplement at 1.
24 See Initiation Checklist at Attachment III,
Analysis of Allegations and Evidence of Material
Injury and Causation for the Antidumping and
Countervailing Duty Petitions Covering Cast Iron
Soil Pipe from the People’s Republic of China.
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II–4.
27 Id. at 3–4 and Exhibits II–5 and 6; see also AD
Supplemental Response at 4–6 and Exhibits 4–6.
28 See Antidumping Duty Investigation of Certain
Aluminum Foil from the People’s Republic of
China: Affirmative Preliminary Determination of
Sales at Less-Than-Fair-Value and Postponement of
Final Determination, 82 FR 50858, 50871
(November 2, 2017), and accompanying decision
memorandum, China’s Status as a Non-Market
Economy; see also Volume II of the Petition at 1.
29 See Volume II of the Petition at 2–3.
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production experience of one of its
member companies.30 The petitioner
maintains that the production process
for soil pipe is similar regardless of
whether the product is produced in the
United States or in China.31 The
petitioner valued the estimated FOPs
using surrogate values from Brazil.
Valuation of Raw Materials
The petitioner valued direct materials
based on publicly-available import data
for Brazil obtained from the Global
Trade Atlas (GTA) for the period July
2017 through December 2017.32 The
petitioner excluded all import data from
countries previously determined by
Commerce to maintain export subsidies
and countries previously determined by
Commerce to be NME countries.33
Valuation of Labor
The petitioner relied on June through
November 2017 data published by the
Instituto Brasilero de Geografia e
Estatistica for wage rates in
manufacturing.34
Valuation of Energy
The petitioner valued natural gas and
coke using GTA import data.35 The
petitioner valued electricity using POI
values reported in Brazil’s Ministry of
Mines and Energy Monthly Energy
Bulletin.36
Valuation of Factory Overhead, Selling,
General and Administrative Expenses,
and Profit
The petitioner calculated ratios for
overhead, selling, general, and
administrative expenses, and profit
based on the 2015 consolidated
financial statements of Tupy SA, a cast
iron products producer in Brazil.37
Fair Value Comparisons
Based on the data provided by the
petitioner, there is reason to believe that
imports of soil pipe from China are
being, or are likely to be, sold in the
United States at less-than-fair value.
Based on comparisons of EP to NV, in
accordance with section 773(c) of the
Act, the estimated dumping margin for
soil pipe from China is 93.32 percent.38
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30 Id.
at 5–6 and Exhibit II–7. See also AD
Supplemental Response at 3 and Exhibit 2.
31 Id.
32 See Volume II of the Petition at 5–6 and Exhibit
II–9.
33 Id.
34 Id. at 7 and Exhibit II–12.
35 Id. at 7 and Exhibit II–9.
36 Id. at 7 and Exhibit II–11.
37 Id. at 7–8 and Exhibit II–13.
38 See AD Supplemental Response at 7 and
Exhibit 6.
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Initiation of Less-Than-Fair Value
Investigation
Based upon the examination of the
AD Petition on soil pipe from China, we
find that the Petition meets the
requirements of section 732 of the Act.
Therefore, we are initiating an AD
investigation to determine whether
imports of soil pipe from China are
being, or are likely to be, sold in the
United States at less-than-fair value. In
accordance with section 733(b)(1)(A) of
the Act and 19 CFR 351.205(b)(1),
unless postponed, we will make our
preliminary determination no later than
140 days after the date of this initiation.
Under the Trade Preferences
Extension Act of 2015, numerous
amendments to the AD and CVD laws
were made.39 The 2015 law does not
specify dates of application for those
amendments. On August 6, 2015,
Commerce published an interpretative
rule, in which it announced the
applicability dates for each amendment
to the Act, except for amendments
contained in section 771(7) of the Act,
which relate to determinations of
material injury by the ITC.40 The
amendments to sections 771(15), 773,
776, and 782 of the Act are applicable
to all determinations made on or after
August 6, 2015, and, therefore, apply to
this AD investigation.41
Respondent Selection
The petitioner named numerous
companies as producers/exporters of
soil pipe from China.42 In accordance
with our standard practice for
respondent selection in cases involving
NME countries, we intend to issue
quantity and value (Q&V)
questionnaires to producers/exporters of
merchandise subject to this
investigation. In the event Commerce
determines that the number of
companies is large and it cannot
individually examine each company,
where appropriate, Commerce intends
to select mandatory respondents based
on the responses received.43 For this
investigation, Commerce will request
Q&V information from known exporters
and producers identified, with complete
contact information, in the Petition. In
39 See Trade Preferences Extension Act of 2015,
Public Law 114–27, 129 Stat. 362 (2015).
40 See Dates of Application of Amendments to the
Antidumping and Countervailing Duty Laws Made
by the Trade Preferences Extension Act of 2015, 80
FR 46793 (August 6, 2015).
41 Id. at 46794–95. The 2015 amendments may be
found at https://www.congress.gov/bill/114thcongress/house-bill/1295/text/pl.
42 See Volume I of the Petition at Exhibit I–6.
43 See, e.g., Carton-Closing Staples from the
People’s Republic of China: Initiation of Less-ThanFair-Value Investigation, 82 FR 19351 (April 27,
2017).
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addition, Commerce will post the Q&V
questionnaire along with filing
instructions on the Enforcement &
Compliance website at https://
www.trade.gov/enforcement/news.asp.
Exporters/producers of soil pipe from
China that do not receive Q&V
questionnaires by mail may still submit
a response to the Q&V questionnaire
and can obtain a copy from the
Enforcement & Compliance website. The
Q&V response must be submitted by all
Chinese exporters/producers no later
than February 26, 2018. All Q&V
responses must be filed electronically
via ACCESS.
Separate Rates
In order to obtain separate rate status
in an NME investigation, exporters and
producers must submit a separate-rate
application.44 The specific requirements
for submitting a separate-rate
application are outlined in detail in the
application itself, which is available on
Commerce’s website at https://
enforcement.trade.gov/nme/nme-seprate.html. The separate-rate application
will be due 30 days after publication of
this initiation notice.45 Exporters and
producers who submit a separate-rate
application and are selected as
mandatory respondents will be eligible
for consideration for separate-rate status
only if they respond to all parts of
Commerce’s AD questionnaire as
mandatory respondents. Commerce
requires that respondents submit a
response to both the Q&V questionnaire
and the separate-rate application by
their respective deadlines in order to
receive consideration for separate-rate
status.
Use of Combination Rates
Commerce will calculate combination
rates for certain respondents that are
eligible for a separate rate in an NME
investigation. The Separate Rates and
Combination Rates Bulletin states:
{w}hile continuing the practice of assigning
separate rates only to exporters, all separate
rates that the Department will now assign in
its NME Investigation will be specific to
those producers that supplied the exporter
during the period of investigation. Note,
however, that one rate is calculated for the
exporter and all of the producers which
supplied subject merchandise to it during the
44 See Policy Bulletin 05.1: Separate-Rates
Practice and Application of Combination Rates in
Antidumping Investigation involving Non-Market
Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf
(Policy Bulletin 05.1).
45 Although in past investigations this deadline
was 60 days, consistent with 19 CFR 351.301(a),
which states that ‘‘the Secretary may request any
person to submit factual information at any time
during a proceeding,’’ this deadline is now 30 days.
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Federal Register / Vol. 83, No. 37 / Friday, February 23, 2018 / Notices
period of investigation. This practice applies
both to mandatory respondents receiving an
individually calculated separate rate as well
as the pool of non-investigated firms
receiving the weighted-average of the
individually calculated rates. This practice is
referred to as the application of ‘‘combination
rates’’ because such rates apply to specific
combinations of exporters and one or more
producers. The cash-deposit rate assigned to
an exporter will apply only to merchandise
both exported by the firm in question and
produced by a firm that supplied the exporter
during the period of investigation.46
Distribution of Copies of the Petition
In accordance with section
732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version
of the Petition has been provided to the
Government of China (GOC) via
ACCESS. Because of the large number of
producers/exporters identified in the
Petition,47 Commerce considers the
service of the public version of the
Petition to the foreign producers/
exporters satisfied by delivery of the
public version to the GOC, consistent
with 19 CFR 351.203(c)(2).
ITC Notification
We will notify the ITC of our
initiation, as required by section 732(d)
of the Act.
daltland on DSKBBV9HB2PROD with NOTICES
Preliminary Determination by the ITC
The ITC will preliminarily determine,
within 45 days after the date on which
the Petition was filed, whether there is
a reasonable indication that imports of
soil pipe from China are materially
injuring, or threatening material injury
to, a U.S. industry.48 A negative ITC
determination will result in the
investigation being terminated; 49
otherwise, this investigation will
proceed according to statutory and
regulatory time limits.
Submission of Factual Information
Factual information is defined in 19
CFR 351.102(b)(21) as: (i) Evidence
submitted in response to questionnaires;
(ii) evidence submitted in support of
allegations; (iii) publicly available
information to value factors under 19
CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR
351.511(a)(2); (iv) evidence placed on
the record by Commerce; and (v)
evidence other than factual information
described in (i) through (iv). The
regulation requires any party, when
submitting factual information, to
specify under which subsection of 19
CFR 351.102(b)(21) the information is
46 See
Policy Bulletin 05.1 at 6 (emphasis added).
Volume I of the Petition at Exhibit I–4.
48 See section 733(a) of the Act.
49 Id.
47 See
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being submitted and, if the information
is submitted to rebut, clarify, or correct
factual information already on the
record, to provide an explanation
identifying the information already on
the record that the factual information
seeks to rebut, clarify, or correct. Time
limits for the submission of factual
information are addressed in 19 CFR
351.301, which provides specific time
limits based on the type of factual
information being submitted. Parties are
advised to review the regulations prior
to submitting factual information in this
investigation.
Extension of Time Limits
Parties may request an extension of
time limits before the expiration of a
time limit established under 19 CFR
351.301, or as otherwise specified by the
Secretary. In general, an extension
request will be considered untimely if it
is filed after the expiration of the time
limit established under 19 CFR 351.301.
For submissions that are due from
multiple parties simultaneously, an
extension request will be considered
untimely if it is filed after 10:00 a.m. on
the due date. Under certain
circumstances, we may elect to specify
a different time limit by which
extension requests will be considered
untimely for submissions which are due
from multiple parties simultaneously. In
such a case, we will inform parties in
the letter or memorandum setting forth
the deadline (including a specified time)
by which extension requests must be
filed to be considered timely. An
extension request must be made in a
separate, stand-alone submission; under
limited circumstances we will grant
untimely-filed requests for the extension
of time limits. Review Extension of
Time Limits; Final Rule, 78 FR 57790
(September 20, 2013), available at
https://www.gpo.gov/fdsys/pkg/FR-201309-20/html/2013-22853.htm, prior to
submitting factual information in this
investigation.
Certification Requirements
Any party submitting factual
information in an AD or CVD
proceeding must certify to the accuracy
and completeness of that information.50
Parties must use the certification
formats provided in 19 CFR
351.303(g).51 52 Commerce intends to
50 See
section 782(b) of the Act.
also Certification of Factual Information To
Import Administration During Antidumping and
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule). Answers to frequently asked
questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
52 See Certification of Factual Information To
Import Administration During Antidumping and
51 See
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Frm 00013
Fmt 4703
Sfmt 4703
8057
reject factual submissions if the
submitting party does not comply with
the applicable revised certification
requirements.
Notification to Interested Parties
Interested parties must submit
applications for disclosure under
Administrative Protective Order (APO)
in accordance with 19 CFR 351.305. On
January 22, 2008, Commerce published
Antidumping and Countervailing Duty
Proceedings: Documents Submission
Procedures; APO Procedures, 73 FR
3634 (January 22, 2008). Parties wishing
to participate in this investigation
should ensure that they meet the
requirements of these procedures (e.g.,
the filing of letters of appearance as
discussed at 19 CFR 351.103(d)).
This notice is issued and published
pursuant to sections 732(c)(2) and 777(i)
of the Act.
Dated: February 15, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement
and Compliance.
Appendix—Scope of the Investigation
The merchandise covered by this
investigation is cast iron soil pipe, whether
finished or unfinished, regardless of industry
or proprietary specifications, and regardless
of wall thickness, length, diameter, surface
finish, end finish, or stenciling. The scope of
this investigation includes, but is not limited
to, both hubless and hub and spigot cast iron
soil pipe. Cast iron soil pipe is nonmalleable
iron pipe of various designs and sizes. Cast
iron soil pipe is generally distinguished from
other types of nonmalleable cast iron pipe by
the manner in which it is connected to cast
iron soil pipe fittings.
Cast iron soil pipe is classified into two
major types—hubless and hub and spigot.
Hubless cast iron soil pipe is manufactured
without a hub, generally in compliance with
Cast Iron Soil Pipe Institute (CISPI)
specification 301 and/or American Society
for Testing and Materials (ASTM)
specification A888, including any revisions
to those specifications. Hub and spigot pipe
has one or more hubs into which the spigot
(plain end) of a fitting is inserted. All pipe
meeting the physical description set forth
above is covered by the scope of this
investigation, whether or not produced
according to a particular standard.
The subject imports are currently classified
in subheading 7303.00.0030 of the
Harmonized Tariff Schedule of the United
States (HTSUS): Cast iron soil pipe. The
HTSUS subheading and specifications are
provided for convenience and customs
Countervailing Duty Proceedings, 78 FR 42678 (July
17, 2013) (Final Rule); see also frequently asked
questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_
info_final_rule_FAQ_07172013.pdf.
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Federal Register / Vol. 83, No. 37 / Friday, February 23, 2018 / Notices
purposes only; the written description of the
scope of this investigation is dispositive.
on every party on Commerce’s service
list.
[FR Doc. 2018–03751 Filed 2–22–18; 8:45 am]
Respondent Selection
In the event Commerce limits the
number of respondents for individual
examination for administrative reviews
initiated pursuant to requests made for
the orders identified below, except for
the review of the antidumping duty
order on crystalline silicon photovoltaic
cells, whether or not assembled into
modules (‘‘solar cells and modules’’)
from the People’s Republic of China
(China), Commerce intends to select
respondents based on U.S. Customs and
Border Protection (CBP) data for U.S.
imports during the period of review. We
intend to place the CBP data on the
record within five days of publication of
the initiation notice and to make our
decision regarding respondent selection
within 30 days of publication of the
initiation Federal Register notice.
Comments regarding the CBP data and
respondent selection should be
submitted seven days after the
placement of the CBP data on the record
of this review. Parties wishing to submit
rebuttal comments should submit those
comments five days after the deadline
for the initial comments.
In the event Commerce decides it is
necessary to limit individual
examination of respondents and
conduct respondent selection under
section 777A(c)(2) of the Act:
In general, Commerce has found that
determinations concerning whether
particular companies should be
‘‘collapsed’’ (e.g., treated as a single
entity for purposes of calculating
antidumping duty rates) require a
substantial amount of detailed
information and analysis, which often
require follow-up questions and
analysis. Accordingly, Commerce will
not conduct collapsing analyses at the
respondent selection phase of this
review and will not collapse companies
at the respondent selection phase unless
there has been a determination to
collapse certain companies in a
previous segment of this antidumping
proceeding (e.g., investigation,
administrative review, new shipper
review or changed circumstances
review). For any company subject to this
review, if Commerce determined, or
continued to treat, that company as
collapsed with others, Commerce will
assume that such companies continue to
operate in the same manner and will
collapse them for respondent selection
purposes. Otherwise, Commerce will
not collapse companies for purposes of
respondent selection. Parties are
requested to (a) identify which
companies subject to review previously
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
International Trade Administration
Initiation of Antidumping and
Countervailing Duty Administrative
Reviews
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) has received requests to
conduct administrative reviews of
various antidumping and countervailing
duty orders and findings with December
anniversary dates. In accordance with
Commerce’s regulations, we are
initiating those administrative reviews.
DATES: Applicable February 23, 2018.
FOR FURTHER INFORMATION CONTACT:
Brenda E. Brown, Office of AD/CVD
Operations, Customs Liaison Unit,
Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230, telephone: (202) 482–4735.
SUPPLEMENTARY INFORMATION:
AGENCY:
daltland on DSKBBV9HB2PROD with NOTICES
Background
Commerce has received timely
requests, in accordance with 19 CFR
351.213(b), for administrative reviews of
various antidumping and countervailing
duty orders and findings with December
anniversary dates.
All deadlines for the submission of
various types of information,
certifications, or comments or actions by
Commerce discussed below refer to the
number of calendar days from the
applicable starting time.
Notice of No Sales
If a producer or exporter named in
this notice of initiation had no exports,
sales, or entries during the period of
review (POR), it must notify Commerce
within 30 days of publication of this
notice in the Federal Register. All
submissions must be filed electronically
at https://access.trade.gov in accordance
with 19 CFR 351.303.1 Such
submissions are subject to verification
in accordance with section 782(i) of the
Tariff Act of 1930, as amended (the Act).
Further, in accordance with 19 CFR
351.303(f)(1)(i), a copy must be served
1 See Antidumping and Countervailing Duty
Proceedings: Electronic Filing Procedures;
Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011).
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Fmt 4703
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were collapsed, and (b) provide a
citation to the proceeding in which they
were collapsed. Further, if companies
are requested to complete the Quantity
and Value (Q&V) Questionnaire for
purposes of respondent selection, in
general each company must report
volume and value data separately for
itself. Parties should not include data
for any other party, even if they believe
they should be treated as a single entity
with that other party. If a company was
collapsed with another company or
companies in the most recently
completed segment of this proceeding
where Commerce considered collapsing
that entity, complete Q&V data for that
collapsed entity must be submitted.
In the event the Commerce limits the
number of respondents for individual
examination in the administrative
review of the antidumping duty order
on solar cells and modules from the
PRC, the Commerce intends to select
respondents based on volume data
contained in responses to Q&V
Questionnaires. Further, Commerce
intends to limit the number of Q&V
Questionnaires issued in the review
based on CBP data for U.S. imports of
solar cells and solar modules from the
PRC. The units used to measure the
imported quantities of solar cells and
solar modules are ‘‘number’’; however,
it would not be meaningful to sum the
number of imported solar cells and the
number of imported solar modules in
attempting to determine the largest PRC
exporters of subject merchandise by
volume. Therefore, Commerce will limit
the number of Q&V Questionnaires
issued based on the import values in
CBP data which will serve as a proxy for
imported quantities. Parties subject to
the review to which Commerce does not
send a Q&V Questionnaire may file a
response to the Q&V Questionnaire by
the applicable deadline if they desire to
be included in the pool of companies
from which Commerce will select
mandatory respondents. The Q&V
Questionnaire will be available on
Commerce’s website at https://trade.gov/
enforcement/news.asp on the date of
publication of this notice in the Federal
Register. The responses to the Q&V
Questionnaire must be received by
Commerce no later than 21 days after
the signature date of this initiation
notice. Please be advised that due to the
time constraints imposed by the
statutory and regulatory deadlines for
antidumping duty administrative
reviews, Commerce does not intend to
grant any extensions for the submission
of responses to the Q&V Questionnaire.
Parties will be given the opportunity to
comment on the CBP data used by
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]]>Agencies
[Federal Register Volume 83, Number 37 (Friday, February 23, 2018)]
[Notices]
[Pages 8053-8058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03751]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-079]
Cast Iron Soil Pipe From the People's Republic of China:
Initiation of Less-Than-Fair Value Investigation
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
DATES: Applicable February 15, 2018.
FOR FURTHER INFORMATION CONTACT: Javier Barrientos at (202) 482-2243,
AD/CVD Operations, Enforcement & Compliance, International Trade
Administration, U.S. Department of Commerce, 1401 Constitution Avenue
NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
The Petition
On January 26, 2018, the Department of Commerce (Commerce) received
an antidumping duty (AD) petition concerning imports of cast iron soil
pipe (soil pipe) from the People's Republic of China (China), filed in
proper form, on behalf of the Cast Iron Soil Pipe Institute (the
petitioner).\1\ The petitioner is a trade association, whose members
are all domestic producers of soil pipe.\2\ The AD petition was
accompanied by a countervailing duty (CVD) petition for soil pipe from
China.\3\
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\1\ See Letter to the Secretary of Commerce from the petitioner
re: Cast Iron Pipe from the People's Republic of China--Petition for
the Imposition of Antidumping and Countervailing Duties, dated
January 26, 2018 (Petition).
\2\ See Volume I of the Petition at 2. The individual members of
the Cast Iron Soil Pipe Institute are AB&I Foundry, Charlotte Pipe &
Foundry, and Tyler Pipe.
\3\ See Volume III of the Petition.
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On January 31, 2018, Commerce requested additional information and
clarification of certain areas of the Petition.\4\ The petitioner filed
responses to these requests on February 2, 2018.\5\
---------------------------------------------------------------------------
\4\ See Letters from Commerce, ``Petition for the Imposition of
Antidumping Duties on Imports of Cast Iron Soil Pipe from the
People's Republic of China: Supplemental Questions,'' dated January
31, 2018, and ``Petition for the Imposition of Antidumping Duties on
Imports of Cast Iron Soil Pipe from the People's Republic of China:
General Issues Supplemental Questions,'' dated January 31, 2018.
\5\ See Letters from the petitioner, ``Cast Iron Soil Pipe from
the People's Republic of China: Response to Supplemental Questions--
General Issues,'' dated February 2, 2018 (General Issues
Supplement), and ``Cast Iron Soil Pipe from the People's Republic of
China: Response to Supplemental Questions--Antidumping Duties,''
dated February 2, 2018 (AD Supplemental Response).
---------------------------------------------------------------------------
In accordance with section 732(b) of the Tariff Act of 1930, as
amended (the Act), the petitioner alleges that imports of soil pipe
from China are being, or are likely to be, sold in the United States at
less-than-fair value within the meaning of section 731 of the Act, and
that, such imports are materially injuring, or threatening material
injury to, an industry in the United States. Also, consistent with
section 732(b)(1) of the Act, the Petition is accompanied by
information reasonably available to the petitioner supporting its
allegations.
Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry because the petitioner is an interested party as
defined in section 771(9)(E) of the Act. Commerce also finds that the
petitioner demonstrated sufficient industry support with respect to the
initiation of the AD investigation that the petitioner is
requesting.\6\
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\6\ See ``Determination of Industry Support for the Petition''
section, below.
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Period of Investigation
Because the Petition was filed on January 26, 2018, pursuant to 19
CFR 351.204(b)(1), the period of investigation (POI) is July 1, 2017,
through December 31, 2017.
Scope of the Investigation
The product covered by this investigation is soil pipe from China.
For a full description of the scope of this investigation, see the
``Scope of the Investigation,'' in the Appendix to this notice.
Comments on the Scope of the Investigation
On February 2, 2018, in response to a question from Commerce, the
petitioner filed a revision to the scope language.\7\
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\7\ See General Issues Supplement at Exhibit 1.
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[[Page 8054]]
As discussed in the preamble to Commerce's regulations,\8\ we are
setting aside a period for interested parties to raise issues regarding
product coverage (i.e., scope). Commerce will consider all comments
received from interested parties and, if necessary, will consult with
the interested parties prior to the issuance of the preliminary
determination. If scope comments include factual information,\9\ all
such factual information should be limited to public information. In
order to facilitate preparation of its questionnaire, Commerce requests
all interested parties to submit such comments by 5:00 p.m. Eastern
Time (ET) on Wednesday, March 7, 2018, which is 20 calendar days from
the signature date of this notice. Any rebuttal comments, which may
include factual information, must be filed by 5:00 p.m. ET on Monday,
March 19, 2018, which is the next business day after the tenth calendar
day from the deadline for initial comments.\10\ All such comments must
be filed on the record of each of the concurrent AD and CVD
investigations.
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\8\ See Antidumping Duties; Countervailing Duties: Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\9\ See 19 CFR 351.102(b)(21).
\10\ See 19 CFR 351.303(b).
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Commerce requests that any factual information the parties consider
relevant to the scope of the investigation be submitted during this
time period. However, if a party subsequently finds that additional
factual information pertaining to the scope of the investigation may be
relevant, the party may contact Commerce and request permission to
submit the additional information. As stated above, all such comments
must be filed on the record of the concurrent AD and CVD
investigations.
Filing Requirements
All submissions to Commerce must be filed electronically using
Enforcement & Compliance's Antidumping Duty and Countervailing Duty
Centralized Electronic Service System (ACCESS).\11\ An electronically-
filed document must be received successfully in its entirety by the
time and date it is due. Documents excepted from the electronic
submission requirements must be filed manually (i.e., in paper form)
with Enforcement & Compliance's APO/Dockets Unit, Room 18022, U.S.
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC
20230, and stamped with the date and time of receipt by the applicable
deadlines.
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\11\ See 19 CFR 351.303 (for general filing requirements); see
also Antidumping and Countervailing Duty Proceedings: Electronic
Filing Procedures; Administrative Protective Order Procedures, 76 FR
39263 (July 6, 2011), for details of Commerce's electronic filing
requirements, which went into effect on August 5, 2011. Information
on help using ACCESS can be found at https://access.trade.gov/help.aspx, and a handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filling%20Procedures.pdf.
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Comments on Product Characteristics for AD Questionnaires
Commerce requests comments from interested parties regarding the
appropriate physical characteristics of soil pipe to be reported in
response to Commerce's AD questionnaire. This information will be used
to identify the key physical characteristics of the merchandise under
consideration in order to report the relevant factors and costs of
production accurately as well as to develop appropriate product-
comparison criteria.
Interested parties will have the opportunity to provide any
information or comments that they feel are relevant to the development
of an accurate list of physical characteristics. Specifically, they may
provide comments as to which characteristics are appropriate to use as:
(1) General product characteristics; and (2) product-comparison
criteria. We note that it is not always appropriate to use all product
characteristics as product-comparison criteria. We base product-
comparison criteria on meaningful commercial differences among
products. In other words, although there may be some physical product
characteristics used by manufacturers to describe soil pipe, it may be
that only a select few product characteristics take into account
commercially-meaningful physical characteristics. In addition,
interested parties may comment on the order in which the physical
characteristics should be used in matching products. Generally,
Commerce attempts to list the most important physical characteristics
first and the least important characteristics last.
In order to consider the suggestions of interested parties in
developing and issuing the AD questionnaire, all comments must be filed
by 5:00 p.m. ET on March 7, 2018. Any rebuttal comments, which may
include factual information, must be filed by 5:00 p.m. ET on March 19,
2018. All comments and submissions to Commerce must be filed
electronically using ACCESS, as explained above, on the record of the
less-than-fair value investigation.
Determination of Industry Support for the Petition
Section 732(b)(1) of the Act requires that a petition be filed on
behalf of the domestic industry. Section 732(c)(4)(A) of the Act
provides that a petition meets this requirement if the domestic
producers or workers who support the petition account for: (i) At least
25 percent of the total production of the domestic like product; and
(ii) more than 50 percent of the production of the domestic like
product produced by that portion of the industry expressing support
for, or opposition to, the petition. Moreover, section 732(c)(4)(D) of
the Act provides that, if the petition does not establish support of
domestic producers or workers accounting for more than 50 percent of
the total production of the domestic like product, Commerce shall: (i)
Poll the industry or rely on other information in order to determine if
there is support for the petition, as required by subparagraph (A); or
(ii) determine industry support using a statistically valid sampling
method to poll the ``industry.''
Section 771(4)(A) of the Act defines the ``industry'' as the
producers as a whole of a domestic like product. Thus, to determine
whether a petition has the requisite industry support, the statute
directs Commerce to look to producers and workers who produce the
domestic like product. The International Trade Commission (ITC), which
is responsible for determining whether ``the domestic industry'' has
been injured, must also determine what constitutes a domestic like
product in order to define the industry. While both Commerce and the
ITC must apply the same statutory definition regarding the domestic
like product,\12\ they do so for different purposes and pursuant to a
separate and distinct authority. In addition, Commerce's determination
is subject to limitations of time and information. Although this may
result in different definitions of the like product, such differences
do not render the decision of either agency contrary to law.\13\
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\12\ See Section 771(10) of the Act.
\13\ See USEC, Inc. v. United States, 132 F. Supp. 2d 1, 8 (CIT
2001) (citing Algoma Steel Corp., Ltd. v. United States, 688 F.
Supp. 639, 644 (CIT 1988), aff'd 865 F.2d 240 (Fed. Cir. 1989)).
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Section 771(10) of the Act defines the domestic like product as ``a
product which is like, or in the absence of like, most similar in
characteristics and uses with, the article subject to an investigation
under this title.'' Thus, the reference point from which the domestic
like product analysis begins is ``the article subject to an
investigation'' (i.e., the class or kind of merchandise to be
investigated, which normally will be the scope as defined in a
petition).
With regard to the domestic like product, the petitioner does not
offer a definition of the domestic like product
[[Page 8055]]
distinct from the scope of the Petition. Based on our analysis of the
information submitted on the record, we have determined that soil pipe,
as defined in the scope, constitutes a single domestic like product,
and we have analyzed industry support in terms of that domestic like
product.\14\
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\14\ For a discussion of the domestic like product analysis in
this case, see Antidumping Duty Investigation Initiation Checklist:
Cast Iron Soil Pipe from the People's Republic of China (Initiation
Checklist), at Attachment II, Analysis of Industry Support for the
Antidumping and Countervailing Duty Petitions Covering Cast Iron
Soil Pipe from the People's Republic of China (Attachment II). This
checklist is dated concurrently with this notice and on file
electronically via ACCESS. Access to documents filed via ACCESS is
also available in the Central Records Unit, Room B8024 of the main
Department of Commerce building.
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In determining whether the petitioner has standing under section
732(c)(4)(A) of the Act, we considered the industry support data
contained in the Petition and the General Issues Supplement with
reference to the domestic like product as defined in the ``Scope of the
Investigation,'' in the Appendix to this notice. The petitioner
provided the 2017 production of the domestic like product by its
members.\15\ The petitioner states that its members are the only known
producers of soil pipe in the United States; therefore, the Petition is
supported by 100 percent of the U.S. industry.\16\
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\15\ See Volume I of the Petition at 4.
\16\ Id. at 3-4 and Exhibit I-1.
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Our review of the data provided in the Petition, General Issues
Supplement, and other information readily available to Commerce
indicates that the petitioner has established industry support for the
Petition.\17\ First, the Petition established support from domestic
producers (or workers) accounting for more than 50 percent of the total
production of the domestic like product and, as such, Commerce is not
required to take further action in order to evaluate industry support
(e.g., polling).\18\ Second, the domestic producers (or workers) have
met the statutory criteria for industry support under section
732(c)(4)(A)(i) of the Act because the domestic producers (or workers)
who support the Petition account for at least 25 percent of the total
production of the domestic like product.\19\ Finally, the domestic
producers (or workers) have met the statutory criteria for industry
support under section 732(c)(4)(A)(ii) of the Act because the domestic
producers (or workers) who support the Petition account for more than
50 percent of the production of the domestic like product produced by
that portion of the industry expressing support for, or opposition to,
the Petition.\20\ Accordingly, Commerce determines that the Petition
was filed on behalf of the domestic industry within the meaning of
section 732(b)(1) of the Act.
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\17\ See Initiation Checklist at Attachment II.
\18\ See section 732(c)(4)(D) of the Act; see also Initiation
Checklist at Attachment II.
\19\ See Initiation Checklist at Attachment II.
\20\ Id.
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Commerce finds that the petitioner filed the Petition on behalf of
the domestic industry because it is an interested party as defined in
section 771(9)(E) of the Act, and it has demonstrated sufficient
industry support with respect to the AD investigation that it is
requesting that Commerce initiate.\21\
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\21\ Id.
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Allegations and Evidence of Material Injury and Causation
The petitioner alleges that the U.S. industry producing the
domestic like product is being materially injured, or is threatened
with material injury, by reason of the imports of the subject
merchandise sold at less than normal value (NV). In addition, the
petitioner alleges that subject imports exceed the negligibility
threshold provided for under section 771(24)(A) of the Act.\22\ The
petitioner contends that the industry's injured condition is
illustrated by a significant and increasing volume of subject imports;
reduced market share and increasing market share of subject imports;
underselling and price depression; lost sales and revenues; and
negative impact on financial results, including total revenue, gross
profits, operating income, and net income.\23\ We have assessed the
allegations and supporting evidence regarding material injury, threat
of material injury, and causation, and we have determined that these
allegations are properly supported by adequate evidence, and meet the
statutory requirements for initiation.\24\
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\22\ See Volume I of the Petition at 13-14 and Exhibit I-7.
\23\ See Volume I of the Petition at 14-19 and Exhibits I-7, I-9
and I-10; see also General Issues Supplement at 1.
\24\ See Initiation Checklist at Attachment III, Analysis of
Allegations and Evidence of Material Injury and Causation for the
Antidumping and Countervailing Duty Petitions Covering Cast Iron
Soil Pipe from the People's Republic of China.
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Allegations of Sales at Less-Than-Fair Value
The following is a description of the allegations of sales at less-
than-fair value upon which Commerce based its decision to initiate the
AD investigation of imports of soil pipe from China. The sources of
data for the deductions and adjustments relating to U.S. price and NV
are discussed in greater detail in the Initiation Checklist.\25\
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\25\ Id. at 6-9.
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Export Price
The petitioner based the U.S. price on export price (EP) using
average unit values (AUVs) of publicly available import data.\26\ The
petitioner made deductions to U.S. price for foreign inland freight and
brokerage and handling.\27\
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\26\ See Volume II of the Petition at 3 and Exhibit II-4.
\27\ Id. at 3-4 and Exhibits II-5 and 6; see also AD
Supplemental Response at 4-6 and Exhibits 4-6.
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Normal Value
Commerce considers China to be a non-market economy (NME)
country.\28\ In accordance with section 771(18)(C)(i) of the Act, the
presumption of NME status remains in effect until revoked by Commerce.
The presumption of NME status for China has not been revoked by
Commerce and, therefore, remains in effect for purposes of the
initiation of this investigation. Accordingly, the NV of the product is
appropriately based on factors of production (FOPs) valued in a
surrogate market economy country, in accordance with section 773(c) of
the Act.
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\28\ See Antidumping Duty Investigation of Certain Aluminum Foil
from the People's Republic of China: Affirmative Preliminary
Determination of Sales at Less-Than-Fair-Value and Postponement of
Final Determination, 82 FR 50858, 50871 (November 2, 2017), and
accompanying decision memorandum, China's Status as a Non-Market
Economy; see also Volume II of the Petition at 1.
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The petitioner argues that Brazil is an appropriate surrogate
country for China because it is a market economy that is at a level of
economic development comparable to that of China, it is a significant
producer of comparable merchandise, and public information from Brazil
is available to value all FOPs.\29\ Based on the information provided
by the petitioner, we determine that it is appropriate to use Brazil as
a surrogate country for China. Interested parties will have the
opportunity to submit comments regarding surrogate country selection
and, pursuant to 19 CFR 351.301(c)(3)(i), will be provided an
opportunity to submit publicly available information to value FOPs no
later than 30 days before the scheduled date of the preliminary
determination.
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\29\ See Volume II of the Petition at 2-3.
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Factors of Production
Because information regarding the volume of inputs consumed by
Chinese producers/exporters is not reasonably available, the petitioner
based the FOPs for materials, labor, and energy on the
[[Page 8056]]
production experience of one of its member companies.\30\ The
petitioner maintains that the production process for soil pipe is
similar regardless of whether the product is produced in the United
States or in China.\31\ The petitioner valued the estimated FOPs using
surrogate values from Brazil.
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\30\ Id. at 5-6 and Exhibit II-7. See also AD Supplemental
Response at 3 and Exhibit 2.
\31\ Id.
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Valuation of Raw Materials
The petitioner valued direct materials based on publicly-available
import data for Brazil obtained from the Global Trade Atlas (GTA) for
the period July 2017 through December 2017.\32\ The petitioner excluded
all import data from countries previously determined by Commerce to
maintain export subsidies and countries previously determined by
Commerce to be NME countries.\33\
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\32\ See Volume II of the Petition at 5-6 and Exhibit II-9.
\33\ Id.
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Valuation of Labor
The petitioner relied on June through November 2017 data published
by the Instituto Brasilero de Geografia e Estatistica for wage rates in
manufacturing.\34\
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\34\ Id. at 7 and Exhibit II-12.
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Valuation of Energy
The petitioner valued natural gas and coke using GTA import
data.\35\ The petitioner valued electricity using POI values reported
in Brazil's Ministry of Mines and Energy Monthly Energy Bulletin.\36\
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\35\ Id. at 7 and Exhibit II-9.
\36\ Id. at 7 and Exhibit II-11.
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Valuation of Factory Overhead, Selling, General and Administrative
Expenses, and Profit
The petitioner calculated ratios for overhead, selling, general,
and administrative expenses, and profit based on the 2015 consolidated
financial statements of Tupy SA, a cast iron products producer in
Brazil.\37\
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\37\ Id. at 7-8 and Exhibit II-13.
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Fair Value Comparisons
Based on the data provided by the petitioner, there is reason to
believe that imports of soil pipe from China are being, or are likely
to be, sold in the United States at less-than-fair value. Based on
comparisons of EP to NV, in accordance with section 773(c) of the Act,
the estimated dumping margin for soil pipe from China is 93.32
percent.\38\
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\38\ See AD Supplemental Response at 7 and Exhibit 6.
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Initiation of Less-Than-Fair Value Investigation
Based upon the examination of the AD Petition on soil pipe from
China, we find that the Petition meets the requirements of section 732
of the Act. Therefore, we are initiating an AD investigation to
determine whether imports of soil pipe from China are being, or are
likely to be, sold in the United States at less-than-fair value. In
accordance with section 733(b)(1)(A) of the Act and 19 CFR
351.205(b)(1), unless postponed, we will make our preliminary
determination no later than 140 days after the date of this initiation.
Under the Trade Preferences Extension Act of 2015, numerous
amendments to the AD and CVD laws were made.\39\ The 2015 law does not
specify dates of application for those amendments. On August 6, 2015,
Commerce published an interpretative rule, in which it announced the
applicability dates for each amendment to the Act, except for
amendments contained in section 771(7) of the Act, which relate to
determinations of material injury by the ITC.\40\ The amendments to
sections 771(15), 773, 776, and 782 of the Act are applicable to all
determinations made on or after August 6, 2015, and, therefore, apply
to this AD investigation.\41\
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\39\ See Trade Preferences Extension Act of 2015, Public Law
114-27, 129 Stat. 362 (2015).
\40\ See Dates of Application of Amendments to the Antidumping
and Countervailing Duty Laws Made by the Trade Preferences Extension
Act of 2015, 80 FR 46793 (August 6, 2015).
\41\ Id. at 46794-95. The 2015 amendments may be found at
https://www.congress.gov/bill/114th-congress/house-bill/1295/text/pl.
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Respondent Selection
The petitioner named numerous companies as producers/exporters of
soil pipe from China.\42\ In accordance with our standard practice for
respondent selection in cases involving NME countries, we intend to
issue quantity and value (Q&V) questionnaires to producers/exporters of
merchandise subject to this investigation. In the event Commerce
determines that the number of companies is large and it cannot
individually examine each company, where appropriate, Commerce intends
to select mandatory respondents based on the responses received.\43\
For this investigation, Commerce will request Q&V information from
known exporters and producers identified, with complete contact
information, in the Petition. In addition, Commerce will post the Q&V
questionnaire along with filing instructions on the Enforcement &
Compliance website at https://www.trade.gov/enforcement/news.asp.
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\42\ See Volume I of the Petition at Exhibit I-6.
\43\ See, e.g., Carton-Closing Staples from the People's
Republic of China: Initiation of Less-Than-Fair-Value Investigation,
82 FR 19351 (April 27, 2017).
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Exporters/producers of soil pipe from China that do not receive Q&V
questionnaires by mail may still submit a response to the Q&V
questionnaire and can obtain a copy from the Enforcement & Compliance
website. The Q&V response must be submitted by all Chinese exporters/
producers no later than February 26, 2018. All Q&V responses must be
filed electronically via ACCESS.
Separate Rates
In order to obtain separate rate status in an NME investigation,
exporters and producers must submit a separate-rate application.\44\
The specific requirements for submitting a separate-rate application
are outlined in detail in the application itself, which is available on
Commerce's website at https://enforcement.trade.gov/nme/nme-sep-rate.html. The separate-rate application will be due 30 days after
publication of this initiation notice.\45\ Exporters and producers who
submit a separate-rate application and are selected as mandatory
respondents will be eligible for consideration for separate-rate status
only if they respond to all parts of Commerce's AD questionnaire as
mandatory respondents. Commerce requires that respondents submit a
response to both the Q&V questionnaire and the separate-rate
application by their respective deadlines in order to receive
consideration for separate-rate status.
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\44\ See Policy Bulletin 05.1: Separate-Rates Practice and
Application of Combination Rates in Antidumping Investigation
involving Non-Market Economy Countries (April 5, 2005), available at
https://enforcement.trade.gov/policy/bull05-1.pdf (Policy Bulletin
05.1).
\45\ Although in past investigations this deadline was 60 days,
consistent with 19 CFR 351.301(a), which states that ``the Secretary
may request any person to submit factual information at any time
during a proceeding,'' this deadline is now 30 days.
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Use of Combination Rates
Commerce will calculate combination rates for certain respondents
that are eligible for a separate rate in an NME investigation. The
Separate Rates and Combination Rates Bulletin states:
{w{time} hile continuing the practice of assigning separate rates
only to exporters, all separate rates that the Department will now
assign in its NME Investigation will be specific to those producers
that supplied the exporter during the period of investigation. Note,
however, that one rate is calculated for the exporter and all of the
producers which supplied subject merchandise to it during the
[[Page 8057]]
period of investigation. This practice applies both to mandatory
respondents receiving an individually calculated separate rate as
well as the pool of non-investigated firms receiving the weighted-
average of the individually calculated rates. This practice is
referred to as the application of ``combination rates'' because such
rates apply to specific combinations of exporters and one or more
producers. The cash-deposit rate assigned to an exporter will apply
only to merchandise both exported by the firm in question and
produced by a firm that supplied the exporter during the period of
investigation.\46\
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\46\ See Policy Bulletin 05.1 at 6 (emphasis added).
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Distribution of Copies of the Petition
In accordance with section 732(b)(3)(A) of the Act and 19 CFR
351.202(f), a copy of the public version of the Petition has been
provided to the Government of China (GOC) via ACCESS. Because of the
large number of producers/exporters identified in the Petition,\47\
Commerce considers the service of the public version of the Petition to
the foreign producers/exporters satisfied by delivery of the public
version to the GOC, consistent with 19 CFR 351.203(c)(2).
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\47\ See Volume I of the Petition at Exhibit I-4.
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ITC Notification
We will notify the ITC of our initiation, as required by section
732(d) of the Act.
Preliminary Determination by the ITC
The ITC will preliminarily determine, within 45 days after the date
on which the Petition was filed, whether there is a reasonable
indication that imports of soil pipe from China are materially
injuring, or threatening material injury to, a U.S. industry.\48\ A
negative ITC determination will result in the investigation being
terminated; \49\ otherwise, this investigation will proceed according
to statutory and regulatory time limits.
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\48\ See section 733(a) of the Act.
\49\ Id.
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Submission of Factual Information
Factual information is defined in 19 CFR 351.102(b)(21) as: (i)
Evidence submitted in response to questionnaires; (ii) evidence
submitted in support of allegations; (iii) publicly available
information to value factors under 19 CFR 351.408(c) or to measure the
adequacy of remuneration under 19 CFR 351.511(a)(2); (iv) evidence
placed on the record by Commerce; and (v) evidence other than factual
information described in (i) through (iv). The regulation requires any
party, when submitting factual information, to specify under which
subsection of 19 CFR 351.102(b)(21) the information is being submitted
and, if the information is submitted to rebut, clarify, or correct
factual information already on the record, to provide an explanation
identifying the information already on the record that the factual
information seeks to rebut, clarify, or correct. Time limits for the
submission of factual information are addressed in 19 CFR 351.301,
which provides specific time limits based on the type of factual
information being submitted. Parties are advised to review the
regulations prior to submitting factual information in this
investigation.
Extension of Time Limits
Parties may request an extension of time limits before the
expiration of a time limit established under 19 CFR 351.301, or as
otherwise specified by the Secretary. In general, an extension request
will be considered untimely if it is filed after the expiration of the
time limit established under 19 CFR 351.301. For submissions that are
due from multiple parties simultaneously, an extension request will be
considered untimely if it is filed after 10:00 a.m. on the due date.
Under certain circumstances, we may elect to specify a different time
limit by which extension requests will be considered untimely for
submissions which are due from multiple parties simultaneously. In such
a case, we will inform parties in the letter or memorandum setting
forth the deadline (including a specified time) by which extension
requests must be filed to be considered timely. An extension request
must be made in a separate, stand-alone submission; under limited
circumstances we will grant untimely-filed requests for the extension
of time limits. Review Extension of Time Limits; Final Rule, 78 FR
57790 (September 20, 2013), available at https://www.gpo.gov/fdsys/pkg/FR-2013-09-20/html/2013-22853.htm, prior to submitting factual
information in this investigation.
Certification Requirements
Any party submitting factual information in an AD or CVD proceeding
must certify to the accuracy and completeness of that information.\50\
Parties must use the certification formats provided in 19 CFR
351.303(g).\51\ \52\ Commerce intends to reject factual submissions if
the submitting party does not comply with the applicable revised
certification requirements.
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\50\ See section 782(b) of the Act.
\51\ See also Certification of Factual Information To Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule). Answers to
frequently asked questions regarding the Final Rule are available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
\52\ See Certification of Factual Information To Import
Administration During Antidumping and Countervailing Duty
Proceedings, 78 FR 42678 (July 17, 2013) (Final Rule); see also
frequently asked questions regarding the Final Rule, available at
https://enforcement.trade.gov/tlei/notices/factual_info_final_rule_FAQ_07172013.pdf.
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Notification to Interested Parties
Interested parties must submit applications for disclosure under
Administrative Protective Order (APO) in accordance with 19 CFR
351.305. On January 22, 2008, Commerce published Antidumping and
Countervailing Duty Proceedings: Documents Submission Procedures; APO
Procedures, 73 FR 3634 (January 22, 2008). Parties wishing to
participate in this investigation should ensure that they meet the
requirements of these procedures (e.g., the filing of letters of
appearance as discussed at 19 CFR 351.103(d)).
This notice is issued and published pursuant to sections 732(c)(2)
and 777(i) of the Act.
Dated: February 15, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
Appendix--Scope of the Investigation
The merchandise covered by this investigation is cast iron soil
pipe, whether finished or unfinished, regardless of industry or
proprietary specifications, and regardless of wall thickness,
length, diameter, surface finish, end finish, or stenciling. The
scope of this investigation includes, but is not limited to, both
hubless and hub and spigot cast iron soil pipe. Cast iron soil pipe
is nonmalleable iron pipe of various designs and sizes. Cast iron
soil pipe is generally distinguished from other types of
nonmalleable cast iron pipe by the manner in which it is connected
to cast iron soil pipe fittings.
Cast iron soil pipe is classified into two major types--hubless
and hub and spigot. Hubless cast iron soil pipe is manufactured
without a hub, generally in compliance with Cast Iron Soil Pipe
Institute (CISPI) specification 301 and/or American Society for
Testing and Materials (ASTM) specification A888, including any
revisions to those specifications. Hub and spigot pipe has one or
more hubs into which the spigot (plain end) of a fitting is
inserted. All pipe meeting the physical description set forth above
is covered by the scope of this investigation, whether or not
produced according to a particular standard.
The subject imports are currently classified in subheading
7303.00.0030 of the Harmonized Tariff Schedule of the United States
(HTSUS): Cast iron soil pipe. The HTSUS subheading and
specifications are provided for convenience and customs
[[Page 8058]]
purposes only; the written description of the scope of this
investigation is dispositive.
[FR Doc. 2018-03751 Filed 2-22-18; 8:45 am]
BILLING CODE 3510-DS-P
