Cast Iron Soil Pipe Fittings From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value and Final Determination of Critical Circumstances, in Part, 33205-33208 [2018-14925]

Download as PDF daltland on DSKBBV9HB2PROD with NOTICES Federal Register / Vol. 83, No. 137 / Tuesday, July 17, 2018 / Notices not limited to, rails, skid channels, skid rails, drum/coil beds, fork clearance bars, pallet supports, column and post protectors, end row and end aisle protectors, corner guards, row spacers, and wall ties). Subject steel racks and parts thereof are made of steel, including, but not limited to, cold and/or hot-formed steel, regardless of the type of steel used to produce the components and may, or may not, include locking tabs, slots, or bolted, clamped, or welded connections. Steel rack components can be assembled into structures of various dimensions and configurations by welding, bolting, clipping, or with the use of devices such as clips, end plates, and beam connectors, including, but not limited to the following configurations: (1) Racks with upright frames perpendicular to the aisles that are independently adjustable, with positive locking beams parallel to the aisle spanning the upright frames with braces; and (2) cantilever racks with vertical components parallel to the aisle and cantilever beams or arms connected to the vertical components perpendicular to the aisle. Steel racks may be referred to as pallet racks, storage racks, stacker racks, retail racks, pick modules, selective racks, or cantilever racks and may incorporate moving components and be referred to as pallet-flow racks, carton-flow racks, push-back racks, movable-shelf racks, drive-in racks, and drive-through racks. While steel racks may be made to ANSI MH16.l or ANSI MH16.3 standards, all steel racks and parts thereof meeting the description set out herein are covered by the scope of this investigation, whether or not produced according to a particular standard. The scope includes all steel racks and parts thereof meeting the description above, regardless of (1) Dimensions, weight, strength, gauge, or load rating; (2) vertical components or frame type (including structural, roll-form, or other); (3) horizontal support or beam/brace type (including but not limited to structural, rollform, slotted, unslotted, Z-beam, C-beam, L-beam, step beam, and cantilever beam); (4) number of supports; (5) number of levels; (6) surface coating, if any (including but not limited to paint, epoxy, powder coating, zinc, or other metallic coatings); (7) shape (including but not limited to rectangular, square, corner, and cantilever); (8) the method by which the vertical and horizontal supports connect (including but not limited to locking tabs or slots, bolting, clamping, and welding); and (9) whether or not the steel rack has moving components (including but not limited to rails, wheels, rollers, tracks, channels, carts, and conveyors). Subject merchandise includes merchandise matching the above description that has been finished or packaged in a third country. Finishing includes, but is not limited to, coating, painting, or assembly, including attaching the merchandise to another product, or any other finishing or assembly operation that would not remove the merchandise from the scope of the investigation if performed in the country of manufacture of the steel racks and parts VerDate Sep<11>2014 17:07 Jul 16, 2018 Jkt 244001 thereof. Packaging includes packaging the merchandise with or without another product or any other packaging operation that would not remove the merchandise from the scope of the investigation if performed in the country of manufacture of the steel racks and parts thereof. Steel racks and parts thereof are included in the scope of this investigation whether or not imported attached to, or included with, other parts or accessories such as wire decking, nuts, and bolts. If steel racks and parts thereof are imported attached to, or included with, such non-subject merchandise, only the steel racks and parts thereof are included in the scope. The scope of this investigation does not cover: (1) Decks, i.e., shelving that sits on or fits into the horizontal supports to provide the horizontal storage surface of the steel racks; (2) wire shelving units, i.e., shelves made from wire that incorporate both a wire deck and wire horizontal supports (taking the place of the horizontal beams and braces) into a single piece with tubular collars that slide over the posts and onto plastic sleeves snapped on the posts to create a finished unit; (3) pins, nuts, bolts, washers, and clips used as connecting devices; and (4) non-steel components. Specifically excluded from the scope of this investigation are any products covered by Commerce’s existing antidumping and countervailing duty orders on boltless steel shelving units prepackaged for sale from the People’s Republic of China. See Boltless Steel Shelving Units Prepackaged for Sale From the People’s Republic of China: Antidumping Duty Order, 80 FR 63,741 (October 21, 2017); Boltless Steel Shelving Units Prepackaged for Sale From the People’s Republic of China: Amended Final Affirmative Countervailing Duty Determination and Countervailing Duty Order, 80 FR 63,745 (October 21, 2017). Also excluded from the scope of this investigation are bulk-packed parts or components of boltless steel shelving units that were specifically excluded from the scope of the Boltless Steel Shelving Orders because such bulk-packed parts or components do not contain the steel vertical supports (i.e., uprights and posts) and steel horizontal supports (i.e., beams, braces) packaged together for assembly into a completed boltless steel shelving unit. Merchandise covered by this investigation is currently classified in the Harmonized Tariff Schedule of the United States (HTSUS) under the following subheadings: 7326.90.8688, 9403.20.0080, and 9403.90.8041. Subject merchandise may also enter under subheadings 7308.90.3000, 7308.90.6000, 7308.90.9590, and 9403.20.0090. The HTSUS subheadings are provided for convenience and U.S. Customs purposes only. The written description of the scope is dispositive. [FR Doc. 2018–15224 Filed 7–16–18; 8:45 am] BILLING CODE 3510–DS–P PO 00000 Frm 00014 Fmt 4703 33205 DEPARTMENT OF COMMERCE International Trade Administration [A–570–062] Cast Iron Soil Pipe Fittings From the People’s Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value and Final Determination of Critical Circumstances, in Part Enforcement and Compliance, International Trade Administration, Department of Commerce. SUMMARY: The Department of Commerce (Commerce) determines that cast iron soil pipe fittings 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 is January 1, 2017, through June 30, 2017. DATES: Applicable July 17, 2018. FOR FURTHER INFORMATION CONTACT: Sergio Balbontin or Denisa Ursu, AD/ CVD Operations, Office VIII, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482–6478 and (202) 482–2285 respectively. SUPPLEMENTARY INFORMATION: AGENCY: Background On February 20, 2018, Commerce published in the Federal Register the Preliminary Determination in the LTFV investigation of cast iron soil pipe fittings from China.1 The mandatory respondents in this investigation are Shanxi Xuanshi Industrial Group Co. Ltd. (Xuanshi), Wor-Biz International Trading Co., Ltd. (Anhui) (Wor-Biz), Sibo International Limited (Sibo), and Kingway Pipe Co., Ltd. (Kingway). Commerce exercised its discretion to toll all deadlines affected by the closure of the Federal Government from January 20 through 22, 2018. If the new deadline falls on a non-business day, in accordance with Commerce’s practice, the deadline will become the next business day. The revised deadline for the final determination of this investigation is now July 5, 2018.2 1 See Cast Iron Soil Pipe Fittings from the People’s Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, in Part, Postponement of Final Determination and Extension of Provisional Measures, 83 FR 7145 (February 20, 2018) (Preliminary Determination) and accompanying Preliminary Decision Memorandum. 2 See Memorandum for The Record from Christian Marsh, Deputy Assistant Secretary for Continued Sfmt 4703 E:\FR\FM\17JYN1.SGM 17JYN1 33206 Federal Register / Vol. 83, No. 137 / Tuesday, July 17, 2018 / Notices A summary of the events that occurred since Commerce published the Preliminary Determination, as well as a full discussion of the issues raised by interested parties for this final determination may be found in the Issues and Decision Memorandum issued concurrently with this notice.3 The Issues and Decision Memorandum is a public document and is on file electronically via Enforcement and Compliance’s Antidumping and Countervailing Duty Centralized Electronic Service System (ACCESS). ACCESS is available to registered users at https://access.trade.gov, and is available to all parties in the Central Records Unit, Room B8024 of the main Department of Commerce building. In addition, a complete version of the Issues and Decision Memorandum can be accessed directly at https:// enforcement.trade.gov/frn/. The signed Issues and Decision Memorandum and the electronic version are identical in content. Scope of the Investigation daltland on DSKBBV9HB2PROD with NOTICES The products covered by this investigation are cast iron soil pipe fittings from China. For a full description of the scope of this investigation, see the ‘‘Scope of the Investigation’’ in Appendix I of this notice. For this final determination, Commerce has issued a scope memorandum addressing interested parties’ comments regarding scope issues presented in the case briefs and in subsequent scope comments.4 Commerce has determined to modify the scope of the investigation to include two additional subheadings of the U.S. Harmonized Tariff Schedule under which subject merchandise may enter. Commerce has also provided a clarification in the Final Scope Memorandum. For further discussion, see Commerce’s Final Scope Enforcement and Compliance, performing the nonexclusive functions and duties of the Assistant Secretary for Enforcement and Compliance, ‘‘Deadlines Affected by the Shutdown of the Federal Government’’ (Tolling Memorandum), dated January 23, 2018. All deadlines in this segment of the proceeding have been extended by 3 days. 3 See Memorandum, ‘‘Issues and Decision Memorandum for the Final Affirmative Determination in the Less-Than-Fair-Value Investigation of Cast Iron Soil Pipe Fittings from the People’s Republic of China,’’ dated concurrently with, and hereby adopted by, this notice (Issues and Decision Memorandum). 4 See Memorandum, ‘‘Countervailing Duty and Less-Than-Fair-Value Investigations of Cast Iron Soil Pipe Fittings from the People’s Republic of China: Final Scope Memorandum’’ (Final Scope Memorandum), dated concurrently with, and hereby adopted by, this notice. VerDate Sep<11>2014 17:07 Jul 16, 2018 Jkt 244001 Memorandum. The scope in Appendix I reflects the final scope language. includes Sibo, Kingway, and other uncooperative respondents. Analysis of Comments Received 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.8 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.9 For the final determination and for the reasons explained in the Issues and Decision Memorandum, we are relying on the highest non-aberrational controlnumber-specific dumping margin calculated for Sibo in the Preliminary Determination to determine the rate for the China-wide entity.10 The issues raised in the case and rebuttal briefs submitted by parties in this investigation are addressed in the Issues and Decision Memorandum. A list of the issues that parties raised, and to which we responded in the Issues and Decision Memorandum is attached to this notice at Appendix II. Final Affirmative Determination of Critical Circumstances, in Part In accordance with section 733(e)(1) of the Act and 19 CFR 351.206, we preliminarily found that critical circumstances exist with respect to imports of cast iron soil pipe fittings from the China-wide entity, the nonselected separate rate respondents, and Sibo, but do not exist with respect to Xuanshi and Wor-Biz.5 Commerce received no comments regarding its preliminary critical circumstances findings. For the final determination, we continue to find that, in accordance with section 735(a)(3) of the Act and 19 CFR 351.206, critical circumstances exist with respect to imports of the subject merchandise from the Chinawide entity. Based on updated shipment and import data, we find that critical circumstances do not exist with respect to Xuanshi, Wor-Biz, and the nonselected separate rate respondents.6 As discussed below, we have determined that Sibo is no longer eligible for a separate rate, and is now considered to be part of the China-wide entity. China-Wide Entity and Use of Adverse Facts Available After the Preliminary Determination and prior to verification, Sibo notified Commerce that it was withdrawing from participation in this investigation. By withdrawing from participation in this investigation, Sibo prevented us from conducting verification of its questionnaire responses, including its claim that it is a wholly foreign-owned company. Therefore, we find that Sibo has failed to demonstrate its eligibility for a separate rate, and is considered to be part of the China-wide entity.7 For the reasons explained in the Preliminary Determination, we continue to find that the use of adverse facts available (AFA), pursuant to sections 776(a) and (b) of the Act, is warranted in determining the rate for the China-wide entity, which Preliminary Determination at 33–34. the Issues and Decision Memorandum for further details. 7 Id. PO 00000 5 See 6 See Frm 00015 Fmt 4703 Sfmt 4703 Separate Rates For the final determination, we continue to find that Xuanshi and WorBiz are eligible to separate rates, as noted below. Section 735(c)(5)(A) of the Act provides that the estimated ‘‘allothers’’ rate shall be an amount equal to the weighted average of the estimated weighted-average dumping margins established for exporters and producers individually investigated, excluding zero or de minimis margins, and any margins determined entirely under section 776 of Act. Consistent with our practice, we calculated a dumping margin for the companies determined to be eligible for separate rates, but which were not individually examined, based on the final dumping margins calculated for Xuanshi and Wor-Biz.11 With two respondents, we would normally calculate (A) a weighted-average of the dumping margins calculated for the 8 See, e.g., Notice of Preliminary Determination of Sales at Less Than Fair Value and Postponement of Final Determination: Purified Carboxymethyl cellulose from Finland, 69 FR 77216 (December 27, 2004), unchanged in Notice of Final Determination of Sales at Less Than Fair Value: Purified Carboxymethyl cellulose from Finland, 70 FR 28279 (May 17, 2005). 9 See, e.g., Certain Stilbenic Optical Brightening Agents from the People’s Republic of China: Final Determination of Sales at Less Than Fair Value, 77 FR 17436, 17438 (March 26, 2012); Final Determination of Sales at Less Than Fair Value: Certain Cold-Rolled Flat-Rolled Carbon Quality Steel Products from the People’s Republic of China, 65 FR 34660 (May 31, 2000), and accompanying IDM. 10 See Issues and Decision Memorandum at Comment 1 for a full discussion of this issue. 11 See Memorandum, ‘‘Cast Iron Soil Pipe Fittings from the People’s Republic of China: Calculation of the Final Margin for Separate Rate Companies,’’ dated concurrently with this notice. E:\FR\FM\17JYN1.SGM 17JYN1 33207 Federal Register / Vol. 83, No. 137 / Tuesday, July 17, 2018 / Notices mandatory respondents; (B) a simple average of the dumping margins calculated for the mandatory respondents; and (C) a weighted-average of the dumping margins calculated for the mandatory respondents using each company’s publicly-ranged values for the merchandise under consideration. We would compare (B) and (C) to (A) and select the rate closest to (A) as the most appropriate rate for the separate rate companies.12 In this case, as complete publicly-ranged sales data was unavailable, we based the separate rate on a simple average of the two calculated margins. Combination Rates In the Initiation Notice,13 Commerce stated that it would calculate producer/ exporter combination rates for the respondents that are eligible for a separate rate in this investigation. Accordingly, we have assigned combination rates to certain companies as provided in the ‘‘Final Determination’’ section below. Changes Since the Preliminary Determination Based on our review and analysis of the comments received from interested parties and our findings at verification, we made certain changes to the calculation of the antidumping duty margin applicable to Xuanshi and WorBiz. For a discussion of these changes, see the Issues and Decision Memorandum. Final Determination Commerce determines that cast iron soil pipe fittings from China are being, or are likely to be, sold in the United States at LTFV, and that the following dumping margins exist: Estimated weightedaverage dumping margin (percent) Cash deposit rate (adjusted for subsidy offsets) (percent) Producer Exporter Shanxi Xuanshi Industrial Group Co., Ltd .................... Guang Zhou Premier & Pinan Foundry Co., Ltd/Botou Chenyuan Foundry Co., Ltd/Wuhu Best Machines Co., Ltd. Shijiazhuang Asia Casting Co., Ltd .............................. Qinshui Shunshida Casting Co., Ltd/Xinle Xinye Metal Products Co., Ltd. Qinshui Shunshida Casting Co., Ltd/Xinle Rishuo Casting Factory/Shijiazhuang Shunjinguangao Trade Co., Ltd/Xinle Tang Rong Fa Lan Pan Co., Ltd. Xinle City Zhile Pipeline Industry Co., Ltd/Qinshui Shunshida Casting Co., Ltd/Foshan City Deying Metal Products Co., Ltd. Xinle Rishuo Casting Factory/Qinshui Shunshida Casting Co., Ltd. Qinshui County Xinwei Precision Co., Ltd ................... Shanxi Guruiwei Casting Co., Ltd ................................ Shijiazhuang Jingruisheng Metal Products Co., Ltd/ Qinshui Shunshida Casting Co., Ltd/Xinle City Zhile Pipe Co., Ltd. China-Wide Entity ......................................................... Shanxi Xuanshi Industrial Group Co., Ltd .................... Wor-Biz Trading Co., Ltd (Anhui) ................................. 27.18 22.11 27.09 21.88 Shijiazhuang Asia Casting Co., Ltd .............................. Shanxi Zhongrui Tianyue Trading Co., Ltd .................. 24.65 24.65 24.49 24.49 Dalian Lino F.T.Z. Co., Ltd ........................................... 24.65 24.49 Dinggin Hardware (Dalian) Co., Ltd ............................. 24.65 24.49 Dalian Metal I/E Co., Ltd .............................................. 24.65 24.49 Qinshui Shunshida Casting Co., Ltd ............................ Richang Qiaoshan Trade Co., Ltd ............................... Hebei Metals & Engineering Products Trading Co., Ltd. 24.65 24.65 24.65 24.49 24.49 24.49 ....................................................................................... 360.39 360.30 Disclosure Commerce intends to disclose to interested parties the calculations performed in connection with this final determination within five days of any public announcement or, if there is no public announcement, within five days of the date of publication of the notice of final determination in the Federal Register, in accordance with 19 CFR 351.224(b). daltland on DSKBBV9HB2PROD with NOTICES Continuation of Suspension of Liquidation In accordance with section 735(c)(1)(B) of the Act, we will instruct U.S. Customs and Border Protection 12 See Ball Bearings and Parts Thereof from France, Germany, Italy, Japan, and the United Kingdom: Final Results of Antidumping Duty Administrative Reviews, Final Results of Changed Circumstances Review, and Revocation of an Order in Part, 75 FR 53661, 53663 (September 1, 2010). VerDate Sep<11>2014 17:07 Jul 16, 2018 Jkt 244001 (CBP) to continue to suspend liquidation of all entries of cast iron soil pipe fittings from China, as described in the ‘‘Scope of the Investigation’’ section, exported by Xuanshi and Wor-Biz, entered or withdrawn from warehouse, for consumption on or after February 20, 2018, the date of publication of the Preliminary Determination notice in the Federal Register. Furthermore, we continue to find that critical circumstances exist pursuant to section 735(c)(4)(A) of the Act with respect to the China-wide entity. Therefore, for this entity, we will instruct CBP to continue to suspend liquidation for all appropriate entries of cast iron soil pipe fittings entered, or withdrawn from warehouse, for consumption on or after November 22, 2017, which is 90 days prior to the date of publication of the Preliminary Determination. To determine the cash deposit rate,14 Commerce normally adjusts the estimated weighted-average dumping margin by the amount of domestic subsidy pass-through and export subsidies determined in a companion countervailing duty (CVD) proceeding where appropriate. Accordingly, because Commerce has made a final affirmative determination for export subsidies, we offset the calculated 13 See Cast Iron Soil Pipe Fittings from the People’s Republic of China: Initiation of Less-ThanFair Value Investigation, 82 FR 37053, 37056 (August 8, 2017). 14 See Modification of Regulations Regarding the Practice of Accepting Bonds During the Provisional Measures Period in Antidumping and Countervailing Duty Investigations, 76 FR 61042 (October 3, 2011). PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 E:\FR\FM\17JYN1.SGM 17JYN1 33208 Federal Register / Vol. 83, No. 137 / Tuesday, July 17, 2018 / Notices estimated weighted-average dumping margins by the appropriate rates as indicated in the above chart.15 We made no adjustment for domestic subsidy pass-through in this case because we found no basis upon which to make such an adjustment.16 In addition, pursuant to section 735(c)(1)(B)(ii) of the Act, Commerce will instruct CBP to require a cash deposit equal to the weighted-average amount by which NV exceeds U.S. price as follows: (1) The cash deposit rate for the exporter/producer combination listed in the table above will be the rate identified for that combination in the table; (2) for all combinations of exporters/producers of merchandise under consideration that have not received their own separate rate above, the cash-deposit rate will be the cash deposit rate established for the Chinawide entity; and (3) for all non-Chinese exporters of the merchandise under consideration which have not received their own separate rate above, the cash deposit rate will be the cash deposit 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. daltland on DSKBBV9HB2PROD with NOTICES International Trade Commission Notification In accordance with section 735(d) of the Act, we will notify the International Trade Commission (ITC) of the final affirmative determination of sales at LTFV. As Commerce’s final determination is affirmative, in accordance with section 735(b)(2) of the Act, the ITC will determine, within 45 days, whether the domestic industry in the United States is materially injured, or threatened with material injury, by reason of imports of cast iron soil pipe fittings from China, or sales (or the likelihood of sales) for importation, of cast iron soil pipe fittings from China. If the ITC determines that such injury does not exist, this proceeding will be terminated and all securities posted will be refunded or canceled. If the ITC determines that such injury does exist, Commerce intends to issue an antidumping duty order directing CBP to assess, upon further instruction by Commerce, antidumping duties on all imports of the subject merchandise entered, or withdrawn from warehouse, for consumption on or after the effective date of the suspension of liquidation. 15 See the Issues and Decision Memorandum for further discussion. 16 Id. VerDate Sep<11>2014 17:07 Jul 16, 2018 Jkt 244001 Notification Regarding Administrative Protective Orders In the event that the ITC issues a final negative injury determination, this notice will serve as the only reminder to parties subject to an APO of their responsibility concerning the destruction of proprietary information disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely written notification of the return/ destruction of APO materials or conversion to judicial protective order is hereby requested. Failure to comply with the regulations and terms of an APO is a violation which is subject to sanction. This determination is issued and published pursuant to sections 735(d) and 777(i) of the Act and 19 CFR 351.210(c). Dated: July 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 I Scope of the Investigation The merchandise covered by this investigation is cast iron soil pipe fittings, finished and unfinished, regardless of industry or proprietary specifications, and regardless of size. Cast iron soil pipe fittings are nonmalleable iron castings of various designs and sizes, including, but not limited to, bends, tees, wyes, traps, drains, and other common or special fittings, with or without side inlets. Cast iron soil pipe fittings are classified into two major types—hubless and hub and spigot. Hubless cast iron soil pipe fittings are 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. Hub and spigot pipe fittings have hubs into which the spigot (plain end) of the pipe or fitting is inserted. Cast iron soil pipe fittings are generally distinguished from other types of nonmalleable cast iron fittings by the manner in which they are connected to cast iron soil pipe and other fittings. The subject imports are normally classified in subheading 7307.11.0045 of the Harmonized Tariff Schedule of the United States (HTSUS): Cast fittings of nonmalleable cast iron for cast iron soil pipe. They may also be entered under HTSUS 7324.29.0000 and 7307.92.3010. The HTSUS subheadings and specifications are provided for convenience and customs purposes only; the written description of the scope of this investigation is dispositive. Appendix II List of Topics Discussed in the Issues and Decision Memorandum I. Summary PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 II. Background III. Final Determination of Critical Circumstances IV. China-Wide Rate V. Separate Rates VI. Adjustments for Countervailable Export Subsidies VII. Changes Since the Preliminary Determination VIII. Discussion of the Issues General Issues Comment 1: What Rate to Assign as Adverse Facts Available (AFA) to Sibo and the China-Wide Entity Comment 2: Surrogate Country Selection Comment 3: Adjusting the Global Trade Atlas (GTA) Import Data for Movement Expenses Comment 4: Treatment of Certain Inputs as Materials or Overhead Comment 5: Reintroduced Materials Comment 6: Surrogate Value for Coated Sand Comment 7: Calculating the Margins on a Consistent Basis Comment 8: Calculation of Movement Expenses Comment 9: Non-Refundable Value Added Tax (VAT) Comment 10: Record-Keeping Deficiencies Wor-Biz Issues Comment 11: Surrogate Value for Asphalt Paint Comment 12: Surrogate Value for Paint Thinner Comment 13: Calculation of Freight Revenue Xuanshi Issues Comment 14: Surrogate Value for Pig Iron Comment 15: Surrogate Values for Iron Ore, Coal, and Coke Comment 16: Calculation of the Slag Iron By-Product Offset Comment 17: Calculation of the Packing Material Consumption Rates Comment 18: Surrogate Values for Inland and Ocean Freight IX. Recommendation [FR Doc. 2018–14925 Filed 7–13–18; 11:15 am] BILLING CODE 3510–DS–P DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration Proposed Information Collection; Comment Request; Economic Expenditure Survey of Golden Crab Fishermen in the U.S. South Atlantic Region National Oceanic and Atmospheric Administration (NOAA), Commerce. ACTION: Notice. AGENCY: The Department of Commerce, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on SUMMARY: E:\FR\FM\17JYN1.SGM 17JYN1

Agencies

[Federal Register Volume 83, Number 137 (Tuesday, July 17, 2018)]
[Notices]
[Pages 33205-33208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14925]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-062]


Cast Iron Soil Pipe Fittings From the People's Republic of China: 
Final Affirmative Determination of Sales at Less Than Fair Value and 
Final Determination of Critical Circumstances, in Part

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

SUMMARY: The Department of Commerce (Commerce) determines that cast 
iron soil pipe fittings 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 is January 1, 2017, through 
June 30, 2017.

DATES: Applicable July 17, 2018.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin or Denisa Ursu, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-6478 and (202) 
482-2285 respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On February 20, 2018, Commerce published in the Federal Register 
the Preliminary Determination in the LTFV investigation of cast iron 
soil pipe fittings from China.\1\ The mandatory respondents in this 
investigation are Shanxi Xuanshi Industrial Group Co. Ltd. (Xuanshi), 
Wor-Biz International Trading Co., Ltd. (Anhui) (Wor-Biz), Sibo 
International Limited (Sibo), and Kingway Pipe Co., Ltd. (Kingway). 
Commerce exercised its discretion to toll all deadlines affected by the 
closure of the Federal Government from January 20 through 22, 2018. If 
the new deadline falls on a non-business day, in accordance with 
Commerce's practice, the deadline will become the next business day. 
The revised deadline for the final determination of this investigation 
is now July 5, 2018.\2\
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    \1\ See Cast Iron Soil Pipe Fittings from the People's Republic 
of China: Preliminary Affirmative Determination of Sales at Less 
Than Fair Value, Preliminary Affirmative Determination of Critical 
Circumstances, in Part, Postponement of Final Determination and 
Extension of Provisional Measures, 83 FR 7145 (February 20, 2018) 
(Preliminary Determination) and accompanying Preliminary Decision 
Memorandum.
    \2\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days.

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[[Page 33206]]

    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by interested parties for this final determination may be found 
in the Issues and Decision Memorandum issued concurrently with this 
notice.\3\ The Issues and Decision Memorandum is a public document and 
is on file electronically via Enforcement and Compliance's Antidumping 
and Countervailing Duty Centralized Electronic Service System (ACCESS). 
ACCESS is available to registered users at https://access.trade.gov, and 
is available to all parties in the Central Records Unit, Room B8024 of 
the main Department of Commerce building. In addition, a complete 
version of the Issues and Decision Memorandum can be accessed directly 
at https://enforcement.trade.gov/frn/. The signed Issues and Decision 
Memorandum and the electronic version are identical in content.
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Cast Iron Soil Pipe Fittings from the People's 
Republic of China,'' dated concurrently with, and hereby adopted by, 
this notice (Issues and Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are cast iron soil pipe 
fittings from China. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation'' in Appendix I of 
this notice. For this final determination, Commerce has issued a scope 
memorandum addressing interested parties' comments regarding scope 
issues presented in the case briefs and in subsequent scope 
comments.\4\ Commerce has determined to modify the scope of the 
investigation to include two additional subheadings of the U.S. 
Harmonized Tariff Schedule under which subject merchandise may enter. 
Commerce has also provided a clarification in the Final Scope 
Memorandum. For further discussion, see Commerce's Final Scope 
Memorandum. The scope in Appendix I reflects the final scope language.
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    \4\ See Memorandum, ``Countervailing Duty and Less-Than-Fair-
Value Investigations of Cast Iron Soil Pipe Fittings from the 
People's Republic of China: Final Scope Memorandum'' (Final Scope 
Memorandum), dated concurrently with, and hereby adopted by, this 
notice.
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Analysis of Comments Received

    The issues raised in the case and rebuttal briefs submitted by 
parties in this investigation are addressed in the Issues and Decision 
Memorandum. A list of the issues that parties raised, and to which we 
responded in the Issues and Decision Memorandum is attached to this 
notice at Appendix II.

Final Affirmative Determination of Critical Circumstances, in Part

    In accordance with section 733(e)(1) of the Act and 19 CFR 351.206, 
we preliminarily found that critical circumstances exist with respect 
to imports of cast iron soil pipe fittings from the China-wide entity, 
the non-selected separate rate respondents, and Sibo, but do not exist 
with respect to Xuanshi and Wor-Biz.\5\ Commerce received no comments 
regarding its preliminary critical circumstances findings. For the 
final determination, we continue to find that, in accordance with 
section 735(a)(3) of the Act and 19 CFR 351.206, critical circumstances 
exist with respect to imports of the subject merchandise from the 
China-wide entity. Based on updated shipment and import data, we find 
that critical circumstances do not exist with respect to Xuanshi, Wor-
Biz, and the non-selected separate rate respondents.\6\ As discussed 
below, we have determined that Sibo is no longer eligible for a 
separate rate, and is now considered to be part of the China-wide 
entity.
---------------------------------------------------------------------------

    \5\ See Preliminary Determination at 33-34.
    \6\ See the Issues and Decision Memorandum for further details.
---------------------------------------------------------------------------

China-Wide Entity and Use of Adverse Facts Available

    After the Preliminary Determination and prior to verification, Sibo 
notified Commerce that it was withdrawing from participation in this 
investigation. By withdrawing from participation in this investigation, 
Sibo prevented us from conducting verification of its questionnaire 
responses, including its claim that it is a wholly foreign-owned 
company. Therefore, we find that Sibo has failed to demonstrate its 
eligibility for a separate rate, and is considered to be part of the 
China-wide entity.\7\ For the reasons explained in the Preliminary 
Determination, we continue to find that the use of adverse facts 
available (AFA), pursuant to sections 776(a) and (b) of the Act, is 
warranted in determining the rate for the China-wide entity, which 
includes Sibo, Kingway, and other uncooperative respondents.
---------------------------------------------------------------------------

    \7\ Id.
---------------------------------------------------------------------------

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.\8\ 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.\9\ 
For the final determination and for the reasons explained in the Issues 
and Decision Memorandum, we are relying on the highest non-aberrational 
control-number-specific dumping margin calculated for Sibo in the 
Preliminary Determination to determine the rate for the China-wide 
entity.\10\
---------------------------------------------------------------------------

    \8\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination: 
Purified Carboxymethyl cellulose from Finland, 69 FR 77216 (December 
27, 2004), unchanged in Notice of Final Determination of Sales at 
Less Than Fair Value: Purified Carboxymethyl cellulose from Finland, 
70 FR 28279 (May 17, 2005).
    \9\ See, e.g., Certain Stilbenic Optical Brightening Agents from 
the People's Republic of China: Final Determination of Sales at Less 
Than Fair Value, 77 FR 17436, 17438 (March 26, 2012); Final 
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled 
Flat-Rolled Carbon Quality Steel Products from the People's Republic 
of China, 65 FR 34660 (May 31, 2000), and accompanying IDM.
    \10\ See Issues and Decision Memorandum at Comment 1 for a full 
discussion of this issue.
---------------------------------------------------------------------------

Separate Rates

    For the final determination, we continue to find that Xuanshi and 
Wor-Biz are eligible to separate rates, as noted below. Section 
735(c)(5)(A) of the Act provides that the estimated ``all-others'' rate 
shall be an amount equal to the weighted average of the estimated 
weighted-average dumping margins established for exporters and 
producers individually investigated, excluding zero or de minimis 
margins, and any margins determined entirely under section 776 of Act. 
Consistent with our practice, we calculated a dumping margin for the 
companies determined to be eligible for separate rates, but which were 
not individually examined, based on the final dumping margins 
calculated for Xuanshi and Wor-Biz.\11\ With two respondents, we would 
normally calculate (A) a weighted-average of the dumping margins 
calculated for the

[[Page 33207]]

mandatory respondents; (B) a simple average of the dumping margins 
calculated for the mandatory respondents; and (C) a weighted-average of 
the dumping margins calculated for the mandatory respondents using each 
company's publicly-ranged values for the merchandise under 
consideration. We would compare (B) and (C) to (A) and select the rate 
closest to (A) as the most appropriate rate for the separate rate 
companies.\12\ In this case, as complete publicly-ranged sales data was 
unavailable, we based the separate rate on a simple average of the two 
calculated margins.
---------------------------------------------------------------------------

    \11\ See Memorandum, ``Cast Iron Soil Pipe Fittings from the 
People's Republic of China: Calculation of the Final Margin for 
Separate Rate Companies,'' dated concurrently with this notice.
    \12\ See Ball Bearings and Parts Thereof from France, Germany, 
Italy, Japan, and the United Kingdom: Final Results of Antidumping 
Duty Administrative Reviews, Final Results of Changed Circumstances 
Review, and Revocation of an Order in Part, 75 FR 53661, 53663 
(September 1, 2010).
---------------------------------------------------------------------------

Combination Rates

    In the Initiation Notice,\13\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Accordingly, we 
have assigned combination rates to certain companies as provided in the 
``Final Determination'' section below.
---------------------------------------------------------------------------

    \13\ See Cast Iron Soil Pipe Fittings from the People's Republic 
of China: Initiation of Less-Than-Fair Value Investigation, 82 FR 
37053, 37056 (August 8, 2017).
---------------------------------------------------------------------------

Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
interested parties and our findings at verification, we made certain 
changes to the calculation of the antidumping duty margin applicable to 
Xuanshi and Wor-Biz. For a discussion of these changes, see the Issues 
and Decision Memorandum.

Final Determination

    Commerce determines that cast iron soil pipe fittings from China 
are being, or are likely to be, sold in the United States at LTFV, and 
that the following dumping margins exist:

----------------------------------------------------------------------------------------------------------------
                                                                                     Estimated     Cash deposit
                                                                                     weighted-    rate (adjusted
                   Producer                                 Exporter                  average       for subsidy
                                                                                  dumping margin     offsets)
                                                                                     (percent)       (percent)
----------------------------------------------------------------------------------------------------------------
Shanxi Xuanshi Industrial Group Co., Ltd......  Shanxi Xuanshi Industrial Group            27.18           27.09
                                                 Co., Ltd.
Guang Zhou Premier & Pinan Foundry Co., Ltd/    Wor-Biz Trading Co., Ltd (Anhui)           22.11           21.88
 Botou Chenyuan Foundry Co., Ltd/Wuhu Best
 Machines Co., Ltd.
Shijiazhuang Asia Casting Co., Ltd............  Shijiazhuang Asia Casting Co.,             24.65           24.49
                                                 Ltd.
Qinshui Shunshida Casting Co., Ltd/Xinle Xinye  Shanxi Zhongrui Tianyue Trading            24.65           24.49
 Metal Products Co., Ltd.                        Co., Ltd.
Qinshui Shunshida Casting Co., Ltd/Xinle        Dalian Lino F.T.Z. Co., Ltd.....           24.65           24.49
 Rishuo Casting Factory/Shijiazhuang
 Shunjinguangao Trade Co., Ltd/Xinle Tang Rong
 Fa Lan Pan Co., Ltd.
Xinle City Zhile Pipeline Industry Co., Ltd/    Dinggin Hardware (Dalian) Co.,             24.65           24.49
 Qinshui Shunshida Casting Co., Ltd/Foshan       Ltd.
 City Deying Metal Products Co., Ltd.
Xinle Rishuo Casting Factory/Qinshui Shunshida  Dalian Metal I/E Co., Ltd.......           24.65           24.49
 Casting Co., Ltd.
Qinshui County Xinwei Precision Co., Ltd......  Qinshui Shunshida Casting Co.,             24.65           24.49
                                                 Ltd.
Shanxi Guruiwei Casting Co., Ltd..............  Richang Qiaoshan Trade Co., Ltd.           24.65           24.49
Shijiazhuang Jingruisheng Metal Products Co.,   Hebei Metals & Engineering                 24.65           24.49
 Ltd/Qinshui Shunshida Casting Co., Ltd/Xinle    Products Trading Co., Ltd.
 City Zhile Pipe Co., Ltd.
China-Wide Entity.............................  ................................          360.39          360.30
----------------------------------------------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this final determination within five days 
of any public announcement or, if there is no public announcement, 
within five days of the date of publication of the notice of final 
determination in the Federal Register, in accordance with 19 CFR 
351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of cast iron soil pipe fittings from 
China, as described in the ``Scope of the Investigation'' section, 
exported by Xuanshi and Wor-Biz, entered or withdrawn from warehouse, 
for consumption on or after February 20, 2018, the date of publication 
of the Preliminary Determination notice in the Federal Register.
    Furthermore, we continue to find that critical circumstances exist 
pursuant to section 735(c)(4)(A) of the Act with respect to the China-
wide entity. Therefore, for this entity, we will instruct CBP to 
continue to suspend liquidation for all appropriate entries of cast 
iron soil pipe fittings entered, or withdrawn from warehouse, for 
consumption on or after November 22, 2017, which is 90 days prior to 
the date of publication of the Preliminary Determination.
    To determine the cash deposit rate,\14\ Commerce normally adjusts 
the estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding where appropriate. Accordingly, 
because Commerce has made a final affirmative determination for export 
subsidies, we offset the calculated

[[Page 33208]]

estimated weighted-average dumping margins by the appropriate rates as 
indicated in the above chart.\15\ We made no adjustment for domestic 
subsidy pass-through in this case because we found no basis upon which 
to make such an adjustment.\16\
---------------------------------------------------------------------------

    \14\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042 
(October 3, 2011).
    \15\ See the Issues and Decision Memorandum for further 
discussion.
    \16\ Id.
---------------------------------------------------------------------------

    In addition, pursuant to section 735(c)(1)(B)(ii) of the Act, 
Commerce will instruct CBP to require a cash deposit equal to the 
weighted-average amount by which NV exceeds U.S. price as follows: (1) 
The cash deposit rate for the exporter/producer combination listed in 
the table above will be the rate identified for that combination in the 
table; (2) for all combinations of exporters/producers of merchandise 
under consideration that have not received their own separate rate 
above, the cash-deposit rate will be the cash deposit rate established 
for the China-wide entity; and (3) for all non-Chinese exporters of the 
merchandise under consideration which have not received their own 
separate rate above, the cash deposit rate will be the cash deposit 
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.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV.
    As Commerce's final determination is affirmative, in accordance 
with section 735(b)(2) of the Act, the ITC will determine, within 45 
days, whether the domestic industry in the United States is materially 
injured, or threatened with material injury, by reason of imports of 
cast iron soil pipe fittings from China, or sales (or the likelihood of 
sales) for importation, of cast iron soil pipe fittings from China. If 
the ITC determines that such injury does not exist, this proceeding 
will be terminated and all securities posted will be refunded or 
canceled. If the ITC determines that such injury does exist, Commerce 
intends to issue an antidumping duty order directing CBP to assess, 
upon further instruction by Commerce, antidumping duties on all imports 
of the subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the effective date of the suspension of 
liquidation.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    This determination is issued and published pursuant to sections 
735(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: July 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 I

Scope of the Investigation

    The merchandise covered by this investigation is cast iron soil 
pipe fittings, finished and unfinished, regardless of industry or 
proprietary specifications, and regardless of size. Cast iron soil 
pipe fittings are nonmalleable iron castings of various designs and 
sizes, including, but not limited to, bends, tees, wyes, traps, 
drains, and other common or special fittings, with or without side 
inlets.
    Cast iron soil pipe fittings are classified into two major 
types--hubless and hub and spigot. Hubless cast iron soil pipe 
fittings are 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. Hub and spigot pipe fittings have hubs into which the spigot 
(plain end) of the pipe or fitting is inserted. Cast iron soil pipe 
fittings are generally distinguished from other types of 
nonmalleable cast iron fittings by the manner in which they are 
connected to cast iron soil pipe and other fittings.
    The subject imports are normally classified in subheading 
7307.11.0045 of the Harmonized Tariff Schedule of the United States 
(HTSUS): Cast fittings of nonmalleable cast iron for cast iron soil 
pipe. They may also be entered under HTSUS 7324.29.0000 and 
7307.92.3010. The HTSUS subheadings and specifications are provided 
for convenience and customs purposes only; the written description 
of the scope of this investigation is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Final Determination of Critical Circumstances
IV. China-Wide Rate
V. Separate Rates
VI. Adjustments for Countervailable Export Subsidies
VII. Changes Since the Preliminary Determination
VIII. Discussion of the Issues
    General Issues
    Comment 1: What Rate to Assign as Adverse Facts Available (AFA) 
to Sibo and the China-Wide Entity
    Comment 2: Surrogate Country Selection
    Comment 3: Adjusting the Global Trade Atlas (GTA) Import Data 
for Movement Expenses
    Comment 4: Treatment of Certain Inputs as Materials or Overhead
    Comment 5: Reintroduced Materials
    Comment 6: Surrogate Value for Coated Sand
    Comment 7: Calculating the Margins on a Consistent Basis
    Comment 8: Calculation of Movement Expenses
    Comment 9: Non-Refundable Value Added Tax (VAT)
    Comment 10: Record-Keeping Deficiencies
    Wor-Biz Issues
    Comment 11: Surrogate Value for Asphalt Paint
    Comment 12: Surrogate Value for Paint Thinner
    Comment 13: Calculation of Freight Revenue
    Xuanshi Issues
    Comment 14: Surrogate Value for Pig Iron
    Comment 15: Surrogate Values for Iron Ore, Coal, and Coke
    Comment 16: Calculation of the Slag Iron By-Product Offset
    Comment 17: Calculation of the Packing Material Consumption 
Rates
    Comment 18: Surrogate Values for Inland and Ocean Freight
IX. Recommendation

[FR Doc. 2018-14925 Filed 7-13-18; 11:15 am]
 BILLING CODE 3510-DS-P
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