Stainless Steel Flanges From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value, 26959-26962 [2018-12482]

Download as PDF Federal Register / Vol. 83, No. 112 / Monday, June 11, 2018 / Notices Assessment Rates Upon completion of the final results, Commerce shall determine and U.S. Customs and Border Protection (CBP) shall assess antidumping duties on all ¨ appropriate entries. If Yucel’s weightedaverage dumping margin is above de minimis in the final results of this review, we will calculate an importerspecific assessment rate on the basis of the ratio of the total amount of antidumping duties calculated for each importer’s examined sales and the total entered value of the sales in accordance ¨ with 19 CFR 351.212(b)(1). If Yucel’s weighted-average dumping margin is zero or de minimis in the final results of review, we will instruct CBP not to assess duties on any of its entries in accordance with the Final Modification for Reviews.7 For entries of subject merchandise ¨ during the POR produced by Yucel for which it did not know its merchandise was destined for the United States, we will instruct CBP to liquidate unreviewed entries at the all-others rate if there is no rate for the intermediate company(ies) involved in the transaction. For the companies which were not selected for individual examination, Cayirova Boru San A.S., HG Tubulars ¸ ¸ ˙ ¨ Canada Ltd., and Yucelboru Ihracat, Ithalat, we will instruct CBP to apply the rates listed above to all entries of subject merchandise produced and/or exported by these firms. We intend to issue liquidation instructions to CBP 15 days after publication of the final results of this review. daltland on DSKBBV9HB2PROD with NOTICES Cash Deposit Requirements The following deposit requirements will be effective upon publication of the notice of final results of administrative review for all shipments of OCTG from Turkey entered, or withdrawn from warehouse, for consumption on or after the date of publication as provided by section 751(a)(2) of the Act: (1) The cash deposit rate for companies subject to this review will be the rates established in the final results of the review; (2) for merchandise exported by producers or exporters not covered in this review but covered in a prior segment of the proceeding, the cash deposit rate will continue to be the company-specific rate published for the most recent period; (3) if the exporter is not a firm covered in 7 See Antidumping Proceedings: Calculation of the Weighted-Average Dumping Margin and Assessment Rate in Certain Antidumping Proceedings: Final Modification, 77 FR 8101, 8102 (February 14, 2012) (Final Modification for Reviews). VerDate Sep<11>2014 19:19 Jun 08, 2018 Jkt 244001 this review, a prior review, or the original investigation but the producer is, the cash deposit rate will be the rate established for the most recent period for the producer of the merchandise; (4) the cash deposit rate for all other producers or exporters will continue to be 35.86 percent,8 the all-others rate established in the less-than-fair-value investigation, adjusted for the exportsubsidy rate established in the companion countervailing duty investigation. These cash deposit requirements, when imposed, shall remain in effect until further notice. Notification to Importers This notice serves as a preliminary reminder to importers of their responsibility under 19 CFR 351.402(f)(2) to file a certificate regarding the reimbursement of antidumping duties prior to liquidation of the relevant entries during this review period. Failure to comply with this requirement could result in the Secretary’s presumption that reimbursement of antidumping duties occurred and the subsequent assessment of double antidumping duties. We are issuing and publishing these results in accordance with sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.221. Dated: June 5, 2018. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance. Appendix List of Topics Discussed in the Preliminary Decision Memorandum I. Summary II. Background III. Scope of the Order IV. Allegation of a Particular Market Situation V. Preliminary Finding of No Shipments VI. Rates for Respondents Not Selected for Individual Examination VII. Discussion of the Methodology Comparisons to Normal Value A. Determination of Comparison Method B. Results of Differential Pricing Analysis Product Comparisons Date of Sale Export Price Normal Value A. Home Market Viability and Comparison Market 8 See Certain Oil Country Tubular Goods from India, the Republic of Korea, Taiwan, the Republic of Turkey, and the Socialist Republic of Vietnam: Antidumping Duty Orders; and Certain Oil Country Tubular Goods from the Socialist Republic of Vietnam: Amended Final Determination of Sales at Less Than Fair Value, 79 FR 53691, 53693 (September 10, 2014). PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 26959 B. Level of Trade C. Cost of Production 1. Calculation of Cost of Production 2. Test of Comparison Market Sales Prices 3. Results of the COP Test D. Calculation of Normal Value Based on Comparison Market Prices VIII. Currency Conversion IX. Recommendation [FR Doc. 2018–12479 Filed 6–8–18; 8:45 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE International Trade Administration [A–570–064] Stainless Steel Flanges From the People’s Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce. SUMMARY: The U.S. Department of Commerce (Commerce) determines that stainless steel flanges from the People’s Republic of China (China) are being, or are likely to be, sold in the United States at less than fair value (LTFV). The period of investigation (POI) is January 1, 2017, through June 30, 2017. The final dumping margins of sales at LTFV are listed below in the ‘‘Final Determination’’ section of this notice. DATES: Applicable June 11, 2018. FOR FURTHER INFORMATION CONTACT: Ian Hamilton or Kabir Archuletta, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–4798 or (202) 482–2593, respectively. AGENCY: SUPPLEMENTARY INFORMATION: Background This final determination is made in accordance with section 735(a) of the Tariff Act of 1930, as amended (the Act). On March 28, 2018, Commerce published the preliminary affirmative determination of sales at LTFV in the investigation of stainless steel flanges from China.1 We invited interested parties to comment on the Preliminary Determination. We received no comments from interested parties. 1 See Stainless Steel Flanges from the People’s Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, 83 FR 13244 (March 28, 2018) (Preliminary Determination), and accompanying Preliminary Decision Memorandum. E:\FR\FM\11JNN1.SGM 11JNN1 26960 Federal Register / Vol. 83, No. 112 / Monday, June 11, 2018 / Notices Scope of the Investigation The products covered by this investigation are stainless steel flanges from China. For a complete description of the scope of this investigation, see the Appendix to this notice. Analysis of Comments Received As noted above, we received no comments in response to the Preliminary Determination. For the purposes of the final determination, Commerce has made no changes to the Preliminary Determination. Use of Adverse Facts Available We continue to find that the mandatory respondent in this investigation, Shanxi Guanjiaying Flange Forging Group Co., Ltd (GJY), did not provide requested information, withheld requested information, significantly impeded this investigation, and did not cooperate to the best of its ability to comply with Commerce’s request for information in failing to submit a complete and reliable sales reconciliation, as detailed in the Preliminary Determination and accompanying Preliminary Decision Memorandum.2 Accordingly, we continue to determine it appropriate to apply facts otherwise available, with an adverse inference, in accordance with sections 776(a)–(b) of the Act.3 As AFA, we have continued to apply the highest dumping margin contained in the Petition, 257.11 percent, as explained in the Preliminary Determination and accompanying Preliminary Decision Memorandum.4 In accordance with the Preliminary Determination, we continue to grant GJY a separate rate because evidence on the record supports an absence of de jure and de facto government control.5 Hydro-Fluids Controls Limited (HFC), Songhai Flange Manufacturing Co., Ltd (Songhai), and Dongtai QB Stainless Steel Co., Ltd (Dongtai), were also selected as mandatory respondents, but withdrew from participation in this investigation and did not respond to requests for information.6 Thus, we continue to find that HFC, Songhai, and Dongtai did not demonstrate that they are eligible for a separate rate and are part of the China-wide entity. We also continue to find that, in addition to the mandatory respondents that did not respond to our requests for information, Commerce did not receive timely responses to its Quantity and Value (Q&V) questionnaire from numerous Chinese exporters and/or producers of the merchandise under consideration that were named in the Petition and to whom Commerce issued Q&V questionnaires.7 Because these companies, which comprise part of the China-wide entity, failed to submit the requested Q&V information, we determine that the China-wide entity did not cooperate to the best of its ability. Therefore, for this final determination, Commerce continues to find that the China-wide entity failed to provide necessary information, withheld information requested by Commerce, failed to provide information in a timely manner, and significantly impeded this proceeding by not submitting the requested information. As a result, Commerce continues to find that use of facts available, with an adverse inference, is warranted in determining the rate of the China-wide entity, pursuant to sections 776(a)(1), (a)(2)(A)–(C), and 776(b) of the Act.8 China-Wide Rate In selecting the AFA rate for the China-wide entity, Commerce’s practice is to select a rate that is sufficiently adverse to ensure that the uncooperative party does not obtain a more favorable result by failing to cooperate than if it had fully cooperated. Specifically, it is Commerce’s practice to select, as an AFA rate, the higher of: (a) the highest dumping margin alleged in the petition; or, (b) the highest calculated dumping margin of any respondent in the investigation. As AFA, Commerce has assigned to the China-wide entity the rate of 257.11 percent, which is the highest dumping margin alleged in the Petition. Combination Rates In the Initiation Notice, Commerce stated that it would calculate producer/ exporter combination rates for the respondents that are eligible for a separate rate in this investigation.9 Because Commerce continues to use facts otherwise available with an adverse inference in determining the rate for the only respondent that demonstrated eligibility for a separate rate in this investigation, GJY, Commerce did not calculate producer/ exporter combination rates for that company. Final Determination The final weighted-average dumping margins are as follows: Weightedaverage dumping margins (percent) Exporter/producer daltland on DSKBBV9HB2PROD with NOTICES Shanxi Guanjiaying Flange Forging Group Co., Ltd ........................................................................................................................... China-wide Entity ................................................................................................................................................................................. 2 See Preliminary Determination, 83 FR at 13244; see also Preliminary Decision Memorandum at 8– 10. 3 Preliminary Decision Memorandum at 10–15. 4 See Stainless Steel Flanges from India and the People’s Republic of China: Initiation of Less-ThanFair-Value Investigations, 82 FR 42649 (September 11, 2017); see also Petitioners’ Letter, ‘‘Stainless Steel Flanges from the People’s Republic of China and India: Petitions for the Imposition of Antidumping and Countervailing Duties,’’ dated August 16, 2017 (Petition); Preliminary Decision Memorandum at 13–15. 5 See Policy Bulletin 05.1, Separate-Rates Practice and Application of Combination Rates in Antidumping Investigations involving Non-Market VerDate Sep<11>2014 19:19 Jun 08, 2018 Jkt 244001 Economy Countries, dated April 5, 2005, available at http://enforcement.trade.gov/policy/bull05-1.pdf. 6 See HFC’s Letter, ‘‘Certain Stainless Steel Flanges from the People’s Republic of China: Withdrawal from Active Participation by HydroFluid Controls Limited,’’ dated October 12, 2017; Songhai’s Letter, ‘‘Certain Stainless Steel Flanges from the People’s Republic of China: Withdrawal from Active Participation by Songhai Flange Manufacturing Co. Ltd.,’’ dated October 13, 2017; Dongtai’s Letter, ‘‘Certain Stainless Steel Flanges from the People’s Republic of China: Withdrawal from Active Participation by Dongtai QB Stainless Steel Co., Ltd,’’ dated November 28, 2017. 7 See Preliminary Decision Memorandum at 10; see also Petition; Memorandum, ‘‘Quantity and PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 257.11 257.11 Value Questionnaires Delivery Confirmation,’’ dated September 20, 2017. 8 See, e.g., Notice of Preliminary Determination of Sales at Less Than Fair Value, Affirmative Preliminary Determination of Critical Circumstances and Postponement of Final Determination: Certain Frozen Fish Fillets from the Socialist Republic of Vietnam, 68 FR 4986, 4991– 92 (January 31, 2003); unchanged in Notice of Final Determination of Sales at Less Than Fair Value and Affirmative Critical Circumstances: Certain Frozen Fish Fillets from the Socialist Republic of Vietnam, 68 FR 37116 (June 23, 2003). 9 See Stainless Steel Flanges from India and the People’s Republic of China: Initiation of Less-ThanFair-Value Investigations, 82 FR 42649, 42653 (September 11, 2017) (Initiation Notice). E:\FR\FM\11JNN1.SGM 11JNN1 Federal Register / Vol. 83, No. 112 / Monday, June 11, 2018 / Notices daltland on DSKBBV9HB2PROD with NOTICES Disclosure Normally, Commerce discloses to interested parties the calculations performed in connection with a final determination within five days of its public announcement or, if there is no public announcement, within five days of the date of publication of this notice in accordance with 19 CFR 351.224(b). However, because Commerce applied adverse facts available to the individually examined company participating in this investigation, in accordance with section 776 of the Act, and the applied adverse facts available rate is based solely on the Petition, there are no calculations to disclose. Continuation of Suspension of Liquidation In accordance with section 735(c)(1)(B) of the Act, Commerce will instruct U.S. Customs and Border Protection (CBP) to continue to suspend liquidation of all appropriate entries of stainless steel flanges from China, as described in the Appendix to this notice, which were entered, or withdrawn from warehouse, for consumption on or after March 28, 2018, the date of publication in the Federal Register of the affirmative Preliminary Determination. Further, pursuant to section 735(c)(1)(B)(ii) of the Act, Commerce will also instruct CBP to collect a cash deposit as follows: (1) The rate for the exporters listed in the chart above will be the rate we have determined in this final determination; (2) for all Chinese exporters of subject merchandise which have not received their own rate, the cash-deposit rate will be the China-wide rate; and (3) for all non-Chinese exporters of subject merchandise which have not received their own rate, the cash-deposit rate will be the rate applicable to the Chinese exporter/ producer combination that supplied that non-Chinese exporter. These suspension-of-liquidation instructions will remain in effect until further notice. Because there has been no demonstration that an adjustment for domestic subsidies is warranted, Commerce has not made any such adjustment to the rate assigned to GJY or the China-wide entity. Additionally, Commerce is making no adjustments for export subsidies to the antidumping cash deposit rate in this investigation because we have made no findings in the companion countervailing duty investigation that any of the programs are export subsidies.10 10 See Countervailing Duty Investigation of Stainless Steel Flanges from the People’s Republic of China: Final Affirmative Determination, 83 FR VerDate Sep<11>2014 19:19 Jun 08, 2018 Jkt 244001 International Trade Commission Notification In accordance with section 735(d) of the Act, we will notify the U.S. International Trade Commission (ITC) of the final affirmative determination of sales at LTFV. Because the final determination in this proceeding is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will make its final determination as to whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of stainless steel flanges from China no later than 45 days after this final determination. If the ITC determines that material injury, or threat of material injury, does not exist, the proceeding will be terminated and all cash deposits will be refunded. If the ITC determines that such injury does exist, Commerce will issue an antidumping duty order directing CBP to assess, upon further instruction by Commerce, antidumping duties on all imports of the merchandise under consideration entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation. Notification Regarding Administrative Protective Orders This notice serves as a reminder to parties subject to an administrative protective order (APO) of their responsibility concerning the disposition of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the return or destruction of APO materials, or conversion to judicial protective order, is hereby requested. Failure to comply with the regulations and the terms of an APO is a sanctionable violation. Notification to Interested Parties This determination is issued and published in accordance with sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c). 15790 (April 12, 2018); see also, e.g., Circular Welded Carbon-Quality Steel Pipe from Pakistan: Affirmative Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination and Extension of Provisional Measures, 81 FR 36867 (June 8, 2016) and accompanying Preliminary Decision Memorandum at 13. PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 26961 Dated: June 4, 2018. Gary Taverman, Deputy Assistant Secretary for Antidumping and Countervailing Duty Operations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance. Appendix Scope of the Investigation The products covered by this investigation are certain forged stainless steel flanges, whether unfinished, semi-finished, or finished (certain forged stainless steel flanges). Certain forged stainless steel flanges are generally manufactured to, but not limited to, the material specification of ASTM/ASME A/SA182 or comparable domestic or foreign specifications. Certain forged stainless steel flanges are made in various grades such as, but not limited to, 304, 304L, 316, and 316L (or combinations thereof). The term ‘‘stainless steel’’ used in this scope refers to an alloy steel containing, by actual weight, 1.2 percent or less of carbon and 10.5 percent or more of chromium, with or without other elements. Unfinished stainless steel flanges possess the approximate shape of finished stainless steel flanges and have not yet been machined to final specification after the initial forging or like operations. These machining processes may include, but are not limited to, boring, facing, spot facing, drilling, tapering, threading, beveling, heating, or compressing. Semi-finished stainless steel flanges are unfinished stainless steel flanges that have undergone some machining processes. The scope includes six general types of flanges. They are: (1) Weld neck, generally used in butt-weld line connection; (2) threaded, generally used for threaded line connections; (3) slip-on, generally used to slide over pipe; (4) lap joint, generally used with stub-ends/butt-weld line connections; (5) socket weld, generally used to fit pipe into a machine recession; and (6) blind, generally used to seal off a line. The sizes and descriptions of the flanges within the scope include all pressure classes of ASME B16.5 and range from one-half inch to twenty-four inches nominal pipe size. Specifically excluded from the scope of this investigation are cast stainless steel flanges. Cast stainless steel flanges generally are manufactured to specification ASTM A351. The country of origin for certain forged stainless steel flanges, whether unfinished, semi-finished, or finished is the country where the flange was forged. Subject merchandise includes stainless steel flanges as defined above that have been further processed in a third country. The processing includes, but is not limited to, boring, facing, spot facing, drilling, tapering, threading, beveling, heating, or compressing, and/or any other processing that would not otherwise remove the merchandise from the scope of the investigation if performed in the country of manufacture of the stainless steel flanges. Merchandise subject to the investigation is typically imported under headings 7307.21.1000 and 7307.21.5000 of the Harmonized Tariff Schedule of the United States (HTSUS). While HTSUS subheadings E:\FR\FM\11JNN1.SGM 11JNN1 26962 Federal Register / Vol. 83, No. 112 / Monday, June 11, 2018 / Notices and ASTM specifications are provided for convenience and customs purposes, the written description of the scope is dispositive. daltland on DSKBBV9HB2PROD with NOTICES mechanical tubing from China, Germany, India, Italy, Korea, and Switzerland on April 16, 2018.1 In addition, Commerce made affirmative [FR Doc. 2018–12482 Filed 6–8–18; 8:45 am] determinations of critical circumstances BILLING CODE 3510–DS–P with respect to China and Italy, in part, and with respect to Korea, pursuant to section 735(a)(3) of the Act, and 19 CFR DEPARTMENT OF COMMERCE 351.206.2 Commerce received numerous International Trade Administration ministerial error allegations and [A–570–058, A–428–845, A–533–873, A–475– comments in the various investigations. 838, A–580–892, A–441–801] A ministerial error is defined as an error in addition, subtraction, or other Certain Cold-Drawn Mechanical Tubing arithmetic function, clerical error of Carbon and Alloy Steel From the resulting from inaccurate copying, People’s Republic of China, the duplication, or the like, and any other Federal Republic of Germany, India, similar type of unintentional error Italy, the Republic of Korea, and which the Secretary considers Switzerland: Antidumping Duty ministerial.3 Orders; and Amended Final On April 17, 2018, Goodluck India Determinations of Sales at Less Than Limited (Goodluck) alleged that Fair Value for the People’s Republic of Commerce made a ministerial error in China and Switzerland the India Final.4 However, we find that the alleged error is methodological, AGENCY: Enforcement and Compliance, rather than ministerial, in nature.5 International Trade Administration, On April 23, 2018, the petitioners 6 Department of Commerce. alleged that Commerce made certain SUMMARY: Based on affirmative final determinations by the Department of 1 See Certain Cold-Drawn Mechanical Tubing of Commerce (Commerce) and the Carbon and Alloy Steel from the People’s Republic International Trade Commission (the of China: Affirmative Final Determination of Sales ITC), Commerce is issuing antidumping at Less-Than-Fair Value and Final Determination of Critical Circumstances, in Part, 83 FR 16322 (April duty orders on certain cold-drawn 16, 2018) (China Final); Certain Cold-Drawn mechanical tubing of carbon and alloy Mechanical Tubing of Carbon and Alloy Steel from the Federal Republic of Germany: Final Affirmative steel (cold-drawn mechanical tubing) Determination of Sales at Less Than Fair Value, 83 from the People’s Republic of China FR 16326 (April 16, 2018) (Germany Final); Certain (China), the Federal Republic of Cold-Drawn Mechanical Tubing of Carbon and Germany (Germany), India, Italy, the Alloy Steel from India: Final Affirmative Determination of Sales at Less than Fair Value, 83 Republic of Korea (Korea), and FR 16296 (April 16, 2018) (India Final); Certain Switzerland. In addition, Commerce is Cold-Drawn Mechanical Tubing of Carbon and amending its final determination of Alloy Steel from Italy: Final Determination of Sales sales at less than fair value (LTFV) for at Less Than Fair Value and Final Affirmative Determination of Critical Circumstances, in Part, 83 China and Switzerland as a result of FR 16289 (April 16, 2018) (Italy Final); Certain ministerial errors. Cold-Drawn Mechanical Tubing of Carbon and DATES: Applicable June 11, 2018. Alloy Steel from the Republic of Korea: Final FOR FURTHER INFORMATION CONTACT: Paul Affirmative Determination of Sales at Less Than of Stolz at (202) 482–4474 or Keith Haynes Fair Value, Final Affirmative Determination16, Critical Circumstances, 83 FR 16319 (April at (202) 482–5139 (China), Frances 2018) (Korea Final); Certain Cold-Drawn Veith at (202) 482–4295 (Germany), Mechanical Tubing of Carbon and Alloy Steel from Switzerland: Final Determination of Sales at Less Susan Pulongbarit at (202) 482–4031 or Omar Qureshi at (202) 482–5307 (India), Than Fair Value, 83 FR 16293 (April 16, 2018) (Switzerland Final). Carrie Bethea at (202) 482–1491 (Italy), 2 See China Final, 83 FR at 16322; Italy Final, 83 Annathea Cook at (202) 482–0250 FR at 16290; and Korea Final, 83 FR at 16320. 3 See section 735(e) of the Act and 19 CFR (Korea), and Laurel LaCivita at (202) 351.224(f). 482–4243 (Switzerland), AD/CVD 4 See Goodluck’s letter, ‘‘Goodluck’s Final Operations, Enforcement and Determination Ministerial Error Comments: Compliance, U.S. Department of Antidumping Duty Investigation on Certain ColdCommerce, 1401 Constitution Avenue Drawn Mechanical Tubing of Carbon and Alloy Steel from India (A–533–873),’’ dated April 17, NW, Washington, DC 20230. 2018 (Goodluck’s Allegation). SUPPLEMENTARY INFORMATION: 5 Background In accordance with sections 735(a), 735(d), and 777(i)(1) of the Tariff Act of 1930, as amended (the Act), and 19 CFR 351.210(c), Commerce published its affirmative final determinations in the LTFV investigations of cold-drawn VerDate Sep<11>2014 19:19 Jun 08, 2018 Jkt 244001 See Memorandum, ‘‘Antidumping Duty Investigation of Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from India: Ministerial Error Allegation Memorandum,’’ dated May 16, 2018. 6 ArcelorMittal Tubular Products, Michigan Seamless Tube, LLC, Plymouth Tube Co. USA, PTC Alliance Corp., Webco Industries, Inc., and Zekelman Industries, Inc. (collectively, the petitioners). PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 ministerial errors in the Germany Final with respect to Benteler Steel/Tube GmbH (Benteler), Salzgitter Mannesmann Line Pipe GmbH (Salzgitter Line Pipe) and Salzgitter Mannesmann Precision GmbH (Salzgitter Precision).7 On April 30, 2018, Benteler submitted rebuttal comments to the petitioners’ allegation.8 Neither Salzgitter Line Pipe nor Salzgitter Precision submitted rebuttal comments. However, we find that the alleged errors regarding our Final Determination with respect to Benteler’s margin calculation and our treatment of Salzgitter Line Pipe, Salzgitter Precision, or any other Salzgitter company are methodological, rather than ministerial, in nature.9 On April 23, 2018, Benteler Rothrist AG (Benteler Rothrist) alleged that Commerce made certain ministerial errors in the Switzerland Final.10 On April 30, 2018, the petitioners submitted rebuttal comments to Benteler Rothrist’s allegation.11 See the ‘‘Amendment to Switzerland Final’’ section below for further information. On April 24, 2018, the petitioners alleged that Commerce made certain ministerial errors in the China Final with respect to Zhangjiagang Huacheng Import & Export Co., Ltd. (Huacheng).12 On April 30, 2018, Huacheng submitted rebuttal comments to the petitioners’ allegation.13 See the ‘‘Amendment to 7 See the petitioners’ letter, ‘‘Cold-Drawn Mechanical Tubing from Germany—Petitioners’ Ministerial Error Allegations Regarding BENTELER Steel/Tube GmbH,’’ dated April 23, 2018 (Petitioners’ Allegation regarding Benteler); the petitioners’ letter, ‘‘Cold-Drawn Mechanical Tubing from Germany—Petitioners’ Ministerial Error Allegations Regarding Salzgitter Mannesmann Line Pipe GmbH and Salzgitter Mannesmann Precision GmbH,’’ dated April 23, 2018 (Petitioners’ Allegation regarding Salzgitter). 8 See Benteler’s letter, ‘‘Antidumping Duty Investigation of Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from Germany: Reply to Ministerial Error Comments for the Final Determination,’’ dated April 30, 2018 (Benteler’s Rebuttal Comments). 9 See Memorandum, ‘‘Less-Than-Fair-Value Investigation of Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from the Federal Republic of Germany: Ministerial Error Allegation Memorandum,’’ dated June 6, 2018. 10 See Benteler Rothrist’s letter, ‘‘Antidumping Duty Investigation of Certain Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from Switzerland: Ministerial Error Comments for the Final Determination,’’ dated April 23, 2018 (Benteler Rothrist’s Allegation). 11 See the petitioners’ letter, ‘‘Cold-Drawn Mechanical Tubing from Switzerland—Petitioners’ Response to Benteler Rothrist’s Ministerial Error Allegation,’’ dated April 30, 2018 (Petitioners’ Rebuttal Comments to Benteler Rothrist). 12 See the petitioners’ letter, ‘‘Cold-Drawn Mechanical Tubing from China—Petitioners’ Ministerial Error Allegations,’’ dated April 24, 2018 (Petitioners’ China Allegation). 13 See Huacheng’s letter, ‘‘Cold-Drawn Mechanical Tubing of Carbon and Alloy Steel from E:\FR\FM\11JNN1.SGM 11JNN1

Agencies

[Federal Register Volume 83, Number 112 (Monday, June 11, 2018)]
[Notices]
[Pages 26959-26962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12482]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-064]


Stainless Steel Flanges From the People's Republic of China: 
Final Affirmative Determination of Sales at Less Than Fair Value

AGENCY: Enforcement and Compliance, International Trade Administration, 
U.S. Department of Commerce.

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
stainless steel flanges from the People's Republic of China (China) are 
being, or are likely to be, sold in the United States at less than fair 
value (LTFV). The period of investigation (POI) is January 1, 2017, 
through June 30, 2017. The final dumping margins of sales at LTFV are 
listed below in the ``Final Determination'' section of this notice.

DATES: Applicable June 11, 2018.

FOR FURTHER INFORMATION CONTACT: Ian Hamilton or Kabir Archuletta, AD/
CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-4798 or (202) 
482-2593, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This final determination is made in accordance with section 735(a) 
of the Tariff Act of 1930, as amended (the Act). On March 28, 2018, 
Commerce published the preliminary affirmative determination of sales 
at LTFV in the investigation of stainless steel flanges from China.\1\ 
We invited interested parties to comment on the Preliminary 
Determination. We received no comments from interested parties.
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    \1\ See Stainless Steel Flanges from the People's Republic of 
China: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, 83 FR 13244 (March 28, 2018) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.

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[[Page 26960]]

Scope of the Investigation

    The products covered by this investigation are stainless steel 
flanges from China. For a complete description of the scope of this 
investigation, see the Appendix to this notice.

Analysis of Comments Received

    As noted above, we received no comments in response to the 
Preliminary Determination. For the purposes of the final determination, 
Commerce has made no changes to the Preliminary Determination.

Use of Adverse Facts Available

    We continue to find that the mandatory respondent in this 
investigation, Shanxi Guanjiaying Flange Forging Group Co., Ltd (GJY), 
did not provide requested information, withheld requested information, 
significantly impeded this investigation, and did not cooperate to the 
best of its ability to comply with Commerce's request for information 
in failing to submit a complete and reliable sales reconciliation, as 
detailed in the Preliminary Determination and accompanying Preliminary 
Decision Memorandum.\2\ Accordingly, we continue to determine it 
appropriate to apply facts otherwise available, with an adverse 
inference, in accordance with sections 776(a)-(b) of the Act.\3\ As 
AFA, we have continued to apply the highest dumping margin contained in 
the Petition, 257.11 percent, as explained in the Preliminary 
Determination and accompanying Preliminary Decision Memorandum.\4\
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    \2\ See Preliminary Determination, 83 FR at 13244; see also 
Preliminary Decision Memorandum at 8-10.
    \3\ Preliminary Decision Memorandum at 10-15.
    \4\ See Stainless Steel Flanges from India and the People's 
Republic of China: Initiation of Less-Than-Fair-Value 
Investigations, 82 FR 42649 (September 11, 2017); see also 
Petitioners' Letter, ``Stainless Steel Flanges from the People's 
Republic of China and India: Petitions for the Imposition of 
Antidumping and Countervailing Duties,'' dated August 16, 2017 
(Petition); Preliminary Decision Memorandum at 13-15.
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    In accordance with the Preliminary Determination, we continue to 
grant GJY a separate rate because evidence on the record supports an 
absence of de jure and de facto government control.\5\ Hydro-Fluids 
Controls Limited (HFC), Songhai Flange Manufacturing Co., Ltd 
(Songhai), and Dongtai QB Stainless Steel Co., Ltd (Dongtai), were also 
selected as mandatory respondents, but withdrew from participation in 
this investigation and did not respond to requests for information.\6\ 
Thus, we continue to find that HFC, Songhai, and Dongtai did not 
demonstrate that they are eligible for a separate rate and are part of 
the China-wide entity. We also continue to find that, in addition to 
the mandatory respondents that did not respond to our requests for 
information, Commerce did not receive timely responses to its Quantity 
and Value (Q&V) questionnaire from numerous Chinese exporters and/or 
producers of the merchandise under consideration that were named in the 
Petition and to whom Commerce issued Q&V questionnaires.\7\ Because 
these companies, which comprise part of the China-wide entity, failed 
to submit the requested Q&V information, we determine that the China-
wide entity did not cooperate to the best of its ability. Therefore, 
for this final determination, Commerce continues to find that the 
China-wide entity failed to provide necessary information, withheld 
information requested by Commerce, failed to provide information in a 
timely manner, and significantly impeded this proceeding by not 
submitting the requested information. As a result, Commerce continues 
to find that use of facts available, with an adverse inference, is 
warranted in determining the rate of the China-wide entity, pursuant to 
sections 776(a)(1), (a)(2)(A)-(C), and 776(b) of the Act.\8\
---------------------------------------------------------------------------

    \5\ See Policy Bulletin 05.1, Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigations 
involving Non-Market Economy Countries, dated April 5, 2005, 
available at http://enforcement.trade.gov/policy/bull05-1.pdf.
    \6\ See HFC's Letter, ``Certain Stainless Steel Flanges from the 
People's Republic of China: Withdrawal from Active Participation by 
Hydro-Fluid Controls Limited,'' dated October 12, 2017; Songhai's 
Letter, ``Certain Stainless Steel Flanges from the People's Republic 
of China: Withdrawal from Active Participation by Songhai Flange 
Manufacturing Co. Ltd.,'' dated October 13, 2017; Dongtai's Letter, 
``Certain Stainless Steel Flanges from the People's Republic of 
China: Withdrawal from Active Participation by Dongtai QB Stainless 
Steel Co., Ltd,'' dated November 28, 2017.
    \7\ See Preliminary Decision Memorandum at 10; see also 
Petition; Memorandum, ``Quantity and Value Questionnaires Delivery 
Confirmation,'' dated September 20, 2017.
    \8\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value, Affirmative Preliminary Determination of 
Critical Circumstances and Postponement of Final Determination: 
Certain Frozen Fish Fillets from the Socialist Republic of Vietnam, 
68 FR 4986, 4991-92 (January 31, 2003); unchanged in Notice of Final 
Determination of Sales at Less Than Fair Value and Affirmative 
Critical Circumstances: Certain Frozen Fish Fillets from the 
Socialist Republic of Vietnam, 68 FR 37116 (June 23, 2003).
---------------------------------------------------------------------------

China-Wide Rate

    In selecting the AFA rate for the China-wide entity, Commerce's 
practice is to select a rate that is sufficiently adverse to ensure 
that the uncooperative party does not obtain a more favorable result by 
failing to cooperate than if it had fully cooperated. Specifically, it 
is Commerce's practice to select, as an AFA rate, the higher of: (a) 
the highest dumping margin alleged in the petition; or, (b) the highest 
calculated dumping margin of any respondent in the investigation. As 
AFA, Commerce has assigned to the China-wide entity the rate of 257.11 
percent, which is the highest dumping margin alleged in the Petition.

Combination Rates

    In the Initiation Notice, Commerce stated that it would calculate 
producer/exporter combination rates for the respondents that are 
eligible for a separate rate in this investigation.\9\ Because Commerce 
continues to use facts otherwise available with an adverse inference in 
determining the rate for the only respondent that demonstrated 
eligibility for a separate rate in this investigation, GJY, Commerce 
did not calculate producer/exporter combination rates for that company.
---------------------------------------------------------------------------

    \9\ See Stainless Steel Flanges from India and the People's 
Republic of China: Initiation of Less-Than-Fair-Value 
Investigations, 82 FR 42649, 42653 (September 11, 2017) (Initiation 
Notice).
---------------------------------------------------------------------------

Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                    Exporter/producer                         dumping
                                                              margins
                                                             (percent)
------------------------------------------------------------------------
Shanxi Guanjiaying Flange Forging Group Co., Ltd........          257.11
China-wide Entity.......................................          257.11
------------------------------------------------------------------------


[[Page 26961]]

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a final determination within five days of 
its public announcement or, if there is no public announcement, within 
five days of the date of publication of this notice in accordance with 
19 CFR 351.224(b). However, because Commerce applied adverse facts 
available to the individually examined company participating in this 
investigation, in accordance with section 776 of the Act, and the 
applied adverse facts available rate is based solely on the Petition, 
there are no calculations to disclose.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of stainless steel 
flanges from China, as described in the Appendix to this notice, which 
were entered, or withdrawn from warehouse, for consumption on or after 
March 28, 2018, the date of publication in the Federal Register of the 
affirmative Preliminary Determination.
    Further, pursuant to section 735(c)(1)(B)(ii) of the Act, Commerce 
will also instruct CBP to collect a cash deposit as follows: (1) The 
rate for the exporters listed in the chart above will be the rate we 
have determined in this final determination; (2) for all Chinese 
exporters of subject merchandise which have not received their own 
rate, the cash-deposit rate will be the China-wide rate; and (3) for 
all non-Chinese exporters of subject merchandise which have not 
received their own rate, the cash-deposit rate will be the rate 
applicable to the Chinese exporter/producer combination that supplied 
that non-Chinese exporter. These suspension-of-liquidation instructions 
will remain in effect until further notice. Because there has been no 
demonstration that an adjustment for domestic subsidies is warranted, 
Commerce has not made any such adjustment to the rate assigned to GJY 
or the China-wide entity. Additionally, Commerce is making no 
adjustments for export subsidies to the antidumping cash deposit rate 
in this investigation because we have made no findings in the companion 
countervailing duty investigation that any of the programs are export 
subsidies.\10\
---------------------------------------------------------------------------

    \10\ See Countervailing Duty Investigation of Stainless Steel 
Flanges from the People's Republic of China: Final Affirmative 
Determination, 83 FR 15790 (April 12, 2018); see also, e.g., 
Circular Welded Carbon-Quality Steel Pipe from Pakistan: Affirmative 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination and Extension of Provisional 
Measures, 81 FR 36867 (June 8, 2016) and accompanying Preliminary 
Decision Memorandum at 13.
---------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of stainless 
steel flanges from China no later than 45 days after this final 
determination. If the ITC determines that material injury, or threat of 
material injury, does not exist, the proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue an antidumping duty order 
directing CBP to assess, upon further instruction by Commerce, 
antidumping duties on all imports of the merchandise under 
consideration entered, or withdrawn from warehouse, for consumption on 
or after the effective date of the suspension of liquidation.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the 
return or destruction of APO materials, or conversion to judicial 
protective order, is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).

    Dated: June 4, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The products covered by this investigation are certain forged 
stainless steel flanges, whether unfinished, semi-finished, or 
finished (certain forged stainless steel flanges). Certain forged 
stainless steel flanges are generally manufactured to, but not 
limited to, the material specification of ASTM/ASME A/SA182 or 
comparable domestic or foreign specifications. Certain forged 
stainless steel flanges are made in various grades such as, but not 
limited to, 304, 304L, 316, and 316L (or combinations thereof). The 
term ``stainless steel'' used in this scope refers to an alloy steel 
containing, by actual weight, 1.2 percent or less of carbon and 10.5 
percent or more of chromium, with or without other elements.
    Unfinished stainless steel flanges possess the approximate shape 
of finished stainless steel flanges and have not yet been machined 
to final specification after the initial forging or like operations. 
These machining processes may include, but are not limited to, 
boring, facing, spot facing, drilling, tapering, threading, 
beveling, heating, or compressing. Semi-finished stainless steel 
flanges are unfinished stainless steel flanges that have undergone 
some machining processes.
    The scope includes six general types of flanges. They are: (1) 
Weld neck, generally used in butt-weld line connection; (2) 
threaded, generally used for threaded line connections; (3) slip-on, 
generally used to slide over pipe; (4) lap joint, generally used 
with stub-ends/butt-weld line connections; (5) socket weld, 
generally used to fit pipe into a machine recession; and (6) blind, 
generally used to seal off a line. The sizes and descriptions of the 
flanges within the scope include all pressure classes of ASME B16.5 
and range from one-half inch to twenty-four inches nominal pipe 
size. Specifically excluded from the scope of this investigation are 
cast stainless steel flanges. Cast stainless steel flanges generally 
are manufactured to specification ASTM A351.
    The country of origin for certain forged stainless steel 
flanges, whether unfinished, semi-finished, or finished is the 
country where the flange was forged. Subject merchandise includes 
stainless steel flanges as defined above that have been further 
processed in a third country. The processing includes, but is not 
limited to, boring, facing, spot facing, drilling, tapering, 
threading, beveling, heating, or compressing, and/or any other 
processing that would not otherwise remove the merchandise from the 
scope of the investigation if performed in the country of 
manufacture of the stainless steel flanges.
    Merchandise subject to the investigation is typically imported 
under headings 7307.21.1000 and 7307.21.5000 of the Harmonized 
Tariff Schedule of the United States (HTSUS). While HTSUS 
subheadings

[[Page 26962]]

and ASTM specifications are provided for convenience and customs 
purposes, the written description of the scope is dispositive.

[FR Doc. 2018-12482 Filed 6-8-18; 8:45 am]
 BILLING CODE 3510-DS-P