Forged Steel Fittings From the People's Republic of China: Final Affirmative Countervailing Duty Determination, 50342-50344 [2018-21734]
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50342
Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
DEPARTMENT OF COMMERCE
International Trade Administration
[C–570–068]
Forged Steel Fittings From the
People’s Republic of China: Final
Affirmative Countervailing Duty
Determination
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce
(Commerce) determines that
countervailable subsidies are being
provided to producers and exporters of
forged steel fittings from the People’s
Republic of China (China).
DATES: Applicable October 5, 2018.
FOR FURTHER INFORMATION CONTACT:
Brian Smith or Janae Martin, 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) 482–1766 or (202) 482–0238,
respectively.
AGENCY:
SUPPLEMENTARY INFORMATION:
Background
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On March 14, 2018, Commerce
published in the Federal Register the
Preliminary Determination.1 The
selected mandatory respondents in this
investigation are Beijing Bell Plumbing
Mfg., Ltd. (Beijing Bell) and Both-Well
(Taizhou) Steel Fittings, Co., Ltd. (BothWell). In the Preliminary Determination,
in accordance with section 705(a)(1) of
the Act and 19 CFR 351.210(b)(4),
Commerce aligned the final CVD
determination with the final
antidumping duty (AD) determination.
The revised deadline for the final
determination of this investigation is
now October 1, 2018. On May 25, 2018,
Commerce issued its Post-Preliminary
Analysis.2
A summary of the events that
occurred since Commerce published the
Preliminary Determination, as well as a
full discussion of the issues raised by
parties for this final determination, may
be found in the Issues and Decision
Memorandum issued concurrently with
1 See Forged Steel Fittings from the People’s
Republic of China: Preliminary Affirmative
Countervailing Duty Determination and Alignment
of Final Determination With Final Antidumping
Duty Determination, 83 FR 11170 (March 14, 2018)
(Preliminary Determination).
2 See Memorandum to Gary Taverman, ‘‘PostPreliminary Analysis of Countervailing Duty
Investigation: Forged Steel Fittings from the
People’s Republic of China,’’ dated May 25, 2018
(Post-Preliminary Analysis).
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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
and electronic versions of the Issues and
Decision Memorandum are identical in
content.
Period of Investigation
The period of investigation (POI) is
January 1, 2016, through December 31,
2016.
Scope of the Investigation
The products covered by this
investigation are forged steel fittings
from China. For a full description of the
scope of this investigation, see the
‘‘Scope of the Investigation’’ in
Appendix I.
Scope Comments
During the course of this investigation
and the concurrent antidumping
investigations of forged steel fittings
from China, Italy, and Taiwan,
Commerce received numerous scope
comments from interested parties.
Commerce issued a Preliminary Scope
Decision Memorandum 4 and a Second
Preliminary Scope Decision
Memorandum 5 to address these
comments. For a summary of the
product coverage comments and
rebuttals submitted to the records of this
investigation and the concurrent
antidumping investigations of forged
steel fittings from China, Italy, and
Taiwan for consideration in the final
determinations, and our accompanying
discussion and analysis of them, see the
Final Scope Decision Memorandum,
issued on July 23, 2018, concurrent with
the final determination in the
antidumping duty investigation of
3 See Memorandum, ‘‘Issues and Decision
Memorandum for the Final Affirmative
Determination of the Countervailing Duty
Investigation of Forged Steel Fittings from the
People’s Republic of China,’’ dated concurrently
with this determination and hereby adopted by this
notice (Issues and Decision Memorandum).
4 See Memorandum to the File, ‘‘Scope Comments
Decision Memorandum for the Preliminary
Determinations,’’ dated March 7, 2018 (Preliminary
Scope Decision Memorandum).
5 See Memorandum to the File, ‘‘Second
Preliminary Scope Decision Memorandum,’’ dated
May 7, 2018 (Second Preliminary Scope Decision
Memorandum).
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forged steel fittings from Taiwan.6 See
Appendix I for the final scope of the
investigation.
Verification
As provided in section 782(i) of the
Act, in May 2018, we conducted
verification of the questionnaire
response submitted by Both-Well, the
information submitted by the
Government of China (GOC) with
respect to one program (Provision of
Special Bar Quality Bar for Less Than
Adequate Remuneration), and the noshipment claim submitted by Beijing
Bell.7 We used standard verification
procedures, including an examination of
relevant accounting and financial
records, and original source documents.
Analysis of Subsidy Programs and
Comments Received
The subsidy programs under
investigation and the issues raised in
the case and rebuttal briefs by parties in
this investigation are discussed 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.
Methodology
Commerce conducted this
investigation in accordance with section
701 of the Tariff Act of 1930, as
amended (the Act). For each of the
subsidy programs found
countervailable, Commerce determines
that there is a subsidy, i.e. , a financial
contribution by an ‘‘authority’’ that
gives rise to a benefit to the recipient,
and that the subsidy is specific.8 For a
full description of the methodology
6 See Memorandum, ‘‘Forged Steel Fittings from
China, Italy and Taiwan: Final Scope Determination
Decision Memorandum,’’ dated July 23, 2018 (Final
Scope Decision Memorandum); see also,
Memorandum to the File, ‘‘Placing Carbon Steel
Butt Weld Pipe Fitting Scope Information Ruling on
the Record,’’ dated September 19, 2018.
7 See Commerce Memoranda, ‘‘Verification of the
Questionnaire Responses of the Government of the
People’s Republic of China: Countervailing Duty
Investigation of Forged Steel Fittings from the
People’s Republic of China,’’ dated June 25, 2018
(GOC Verification Report); ‘‘Verification of Beijing
Bell Plumbing Mfg., Ltd.’s Claim of No Sales of
Subject Merchandise to the U.S. Market During the
Period of Investigation: Countervailing Duty
Investigation of Forged Steel Fittings from the
People’s Republic of China,’’ dated June 28, 2018
(Beijing Bell Verification Report); and ‘‘Verification
of the Questionnaire Responses of Both-Well
(Taizhou) Steel Fittings, Co., Ltd.: Countervailing
Duty Investigation of Forged Steel Fittings from the
People’s Republic of China,’’ dated August 7, 2018
(Both-Well Verification Report).
8 See sections 771(5)(B) and (D) of the Act
regarding financial contribution; section 771(5)(E)
of the Act regarding benefit; and section 771(5A) of
the Act regarding specificity.
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Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
International Trade Commission
Notification
In accordance with section 705(d) of
the Act, we will notify the ITC of our
determination. In addition, we are
making available to the ITC all nonprivileged and non-proprietary
information related to this investigation.
We will allow the ITC access to all
privileged and business proprietary
information in our files, provided the
ITC confirms that it will not disclose
such information, either publicly or
Subsidy
Company
rate
under an administrative protective order
(percent)
(APO), without the written consent of
the Assistant Secretary for Enforcement
Both-Well (Taizhou) Steel Fittings, Co., Ltd ..........................
13.41 and Compliance.
All-Others ....................................
13.41 Notification Regarding Administrative
Changes Since the Preliminary
Protective Orders
Determination
Disclosure
In the event that the ITC issues a final
Based on our review and analysis of
negative injury determination, this
We
intend
to
disclose
to
parties
in
the comments received from parties,
notice will serve as the only reminder
this proceeding the calculations
minor corrections presented at
to parties subject to an APO of their
performed
for
this
final
determination
verification, and our verification
responsibility concerning the
within five days of the date of
findings, we made certain changes to
destruction of proprietary information
publication
of
this
notice,
in
accordance
Both-Well’s subsidy rate calculations.
disclosed under APO in accordance
with 19 CFR 351.224(b).
For a discussion of these changes, see
with 19 CFR 351.305(a)(3). Timely
the Issues and Decision Memorandum.
Continuation of Suspension of
written notification of the return/
Liquidation
destruction of APO materials or
Final Determination
conversion to judicial protective order is
In accordance with section
As a result of our Preliminary
hereby requested. Failure to comply
705(c)(l)(B)(i) of the Act, we calculated
Determination and pursuant to section
with the regulations and terms of an
a subsidy rate for Both-Well, a
703(d)(1)(B) and (d)(2) of the Act, we
APO is a violation which is subject to
producer/exporter of subject
instructed U.S. Customs and Border
sanction.
merchandise selected for individual
Protection (CBP) to suspend liquidation
Notification to Interested Parties
examination in this investigation. Based of entries of subject merchandise as
on our verification findings, we
described in the scope of the
This determination is issued and
determine that the other mandatory
investigation section entered, or
published pursuant to sections 705(d)
respondent in this investigation, Beijing withdrawn from warehouse, for
and 777(i) of the Act and 19 CFR
Bell, did not export subject merchandise consumption on or after the date of
351.210(c).
to the United States during the period
publication of the Preliminary
Dated: October 1, 2018.
of this investigation.10 Therefore, we did Determination in the Federal Register.
Gary Taverman,
not calculate a subsidy rate for Beijing
In accordance with section 703(d) of the
Deputy Assistant Secretary for Antidumping
Bell.
Act, we issued instructions to CBP to
and Countervailing Duty Operations,
Section 705(c)(5)(A) of the Act
discontinue the suspension of
performing the non-exclusive functions and
provides that in the final determination, liquidation for CVD purposes for subject duties of the Assistant Secretary for
Commerce shall determine an estimated merchandise entered, or withdrawn
Enforcement and Compliance.
all-others rate for companies not
from warehouse, on or after July 11,
Appendix I
individually examined. This rate shall
2018, but to continue the suspension of
be an amount equal to the weighted
liquidation of all entries from March 14, Scope of the Investigation
average of the estimated subsidy rates
2018, through July 10, 2018.
The merchandise covered by this
established for those companies
investigation is carbon and alloy forged steel
If the U.S. International Trade
individually examined, excluding any
fittings, whether unfinished (commonly
Commission (ITC) issues a final
known as blanks or rough forgings) or
zero and de minimis rates and any rates affirmative injury determination, we
finished. Such fittings are made in a variety
based entirely under section 776 of the
will issue a CVD order, reinstate the
of shapes including, but not limited to,
Act.
suspension of liquidation under section elbows, tees, crosses, laterals, couplings,
In this investigation, Commerce
706(a) of the Act, and require a cash
reducers, caps, plugs, bushings, unions, and
calculated an individual estimated
deposit of estimated countervailing
outlets. Forged steel fittings are covered
countervailable subsidy rate for Bothregardless of end finish, whether threaded,
duties for such entries of subject
Well that is not zero, de minimis, or
socket-weld or other end connections.
merchandise in the amounts indicated
based entirely on facts otherwise
While these fittings are generally
above. If the ITC determines that
manufactured to specifications ASME
available. Because Both-Well is the only material injury, or threat of material
B16.11, MSS SP–79, MSS SP–83, MSS SP–
individually examined exporter/
injury, does not exist, this proceeding
97, ASTM A105, ASTM A350, and ASTM
will be terminated, and all estimated
A182, the scope is not limited to fittings
9 See Issues and Decision Memorandum at ‘‘Use
duties deposited or securities posted as
made to these specifications.
of Facts Otherwise Available and Adverse
a result of the suspension of liquidation
Inferences’’ section.
The term forged is an industry term used
10 See Beijing Bell Verification Report at 4–7.
will be refunded or canceled.
to describe a class of products included in
underlying our final determination, see
the Issues and Decision Memorandum.
In making this final determination,
Commerce relied, in part, on facts
available pursuant to section 776(a) of
the Act. Additionally, as discussed in
the Issues and Decision Memorandum,
because the GOC did not act to the best
of its ability in responding to our
requests for information, we drew
adverse inferences, where appropriate,
in selecting from among the facts
otherwise available, pursuant to section
776(b) of the Act.9 For further
information, see the section ‘‘Use of
Facts Otherwise Available and Adverse
Inferences’’ in the accompanying Issues
and Decision Memorandum.
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producer in this investigation and its
calculated rate is not zero, de minimis,
or based entirely under section 776 of
the Act, the estimated weighted-average
rate calculated for Both-Well is the rate
assigned to all-other producers and
exporters, pursuant to section
705(c)(5)(A)(i) of the Act.
Commerce determines that the
following estimated countervailable
subsidy rates exist:
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50344
Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Notices
applicable standards, and does not reference
an exclusive manufacturing process. Forged
steel fittings are not manufactured from
casting. Pursuant to the applicable
specifications, subject fittings may also be
machined from bar stock or machined from
seamless pipe and tube.
All types of fittings are included in the
scope regardless of nominal pipe size (which
may or may not be expressed in inches of
nominal pipe size), pressure rating (usually,
but not necessarily expressed in pounds of
pressure/PSI, e.g., 2,000 or 2M; 3,000 or 3M;
6,000 or 6M; 9,000 or 9M), wall thickness,
and whether or not heat treated.
Excluded from this scope are all fittings
entirely made of stainless steel. Also
excluded are flanges, butt weld fittings, butt
weld outlets, nipples, and all fittings that
have a maximum pressure rating of 300
pounds of pressure/PSI or less.
Also excluded are fittings certified or made
to the following standards, so long as the
fittings are not also manufactured to the
specifications of ASME B16.11, MSS SP–79,
MSS SP–83, MSS SP–97, ASTM A105,
ASTM A350, and ASTM A182:
• American Petroleum Institute (API) API
5CT, API 5L, or API 11B
• Society of Automotive Engineering (SAE)
SAE J476, SAE J514, SAE J516, SAE J517,
SAE J518, SAE J1026, SAE J1231, SAE
J1453, SAE J1926, J2044 or SAE AS 35411
• Underwriter’s Laboratories (UL) certified
electrical conduit fittings
• ASTM A153, A536, A576, or A865
• Casing Conductor Connectors 16–42 inches
in diameter made to proprietary
specifications
• Military Specification (MIL) MIL–C–4109F
and MIL–F–3541
• International Organization for
Standardization (ISO) ISO6150–B
To be excluded from the scope, products
must have the appropriate standard or
pressure markings and/or accompanied by
documentation showing product compliance
to the applicable standard or pressure, e.g. ,
‘‘API 5CT’’ mark and/or a mill certification
report.
Subject carbon and alloy forged steel
fittings are normally entered under
Harmonized Tariff Schedule of the United
States (HTSUS) 7307.99.1000, 7307.99.3000,
7307.99.5045, and 7307.99.5060. They also
may be entered under HTSUS 7307.92.3010,
7307.92.3030, 7307.92.9000, and
7326.19.0010. The HTSUS subheadings and
specifications are provided for convenience
and customs purposes; the written
description of the scope is dispositive.
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Appendix II
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and
Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Provision for Land for Less
Than Adequate Remuneration (LTAR):
Appropriate Benchmark
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Comment 2: Provision for Special Bar
Quality(SBQ) Bar for LTAR: Whether
Respondent’s Input Is Comparable to
SBQ Bar
Comment 3: SBQ Bar for LTAR: Market
Distortion Analysis
Comment 4: Affiliated Party Sales
Comment 5: Removing Value-Added Tax
(VAT) From Reported Freight Data
Comment 6: Removing VAT From
Reported Electricity Data
Comment 7: Application of Adverse Facts
Available (AFA) Concerning Electricity
VII. Recommendation
Indonesia, Latvia, Moldova, Poland, and
Ukraine, pursuant to section 751(c)(2) of
the Tariff Act of 1930, as amended (the
Act).2 On June 12, 2018, Commerce
received notices of intent to participate
from the Rebar Trade Action Coalition
(a domestic interested party) within the
deadline specified in 19 CFR
351.218(d)(1)(i).3 RTAC claimed
interested party status under section
771(9)(C) of the Act, as a domestic
producer of rebar.4
On June 12, 2018, Commerce received
[FR Doc. 2018–21734 Filed 10–4–18; 8:45 am]
complete substantive responses from the
BILLING CODE 3510–DS–P
domestic interested party within the 30day deadline specified in 19 CFR
351.218(d)(3)(i).5 We did not receive
DEPARTMENT OF COMMERCE
any responses from respondent
interested parties in these proceedings.
International Trade Administration
As a result, pursuant to 19 CFR
[A–449–804, A–455–803, A–560–811, A–570– 351.218(e)(1)(ii)(C)(2), Commerce
860, A–822–804, A–823–809, A–841–804]
conducted expedited (120-day) sunset
reviews of the Orders.
Steel Concrete Reinforcing Bars From
Belarus, the People’s Republic of
Scope of the Orders
China, Indonesia, Latvia, Moldova,
There are existing antidumping duty
Poland, and Ukraine: Final Results of
orders
on rebar from Belarus, China,
Expedited Third Sunset Reviews of the
Antidumping Duty Orders
Enforcement and Compliance,
International Trade Administration,
Department of Commerce.
SUMMARY: As a result of these sunset
reviews, the Department of Commerce
(Commerce) finds that revocation of the
antidumping duty (AD) orders on steel
concrete reinforcing bars (rebar) from
Belarus, the People’s Republic of China
(China), Indonesia, Latvia, Moldova,
Poland, and Ukraine would likely lead
to a continuation or recurrence of
dumping at the dumping margins
identified in the ‘‘Final Results of
Review’’ section of this notice.
DATES: Applicable October 5, 2018.
FOR FURTHER INFORMATION CONTACT:
Keith Haynes, AD/CVD Operations,
Office III, Enforcement and Compliance,
International Trade Administration,
U.S. Department of Commerce, 1401
Constitution Avenue NW, Washington,
DC 20230; telephone: (202) 482–5139.
SUPPLEMENTARY INFORMATION:
AGENCY:
Background
On June 1, 2018, Commerce published
the notice of initiation of the third
sunset reviews of the antidumping duty
Orders 1 on rebar from Belarus, China,
1 See Antidumping Duty Orders: Steel Concrete
Reinforcing Bars from Belarus, Indonesia, Latvia,
Moldova, People’s Republic of China, Poland,
Republic of Korea and Ukraine, 66 FR 46777
(September 7, 2001) (collectively, Orders). On
August 9, 2007, Commerce suspended the
antidumping duty investigation and signed a
suspension agreement on rebar from Korea. See
Steel Concrete Reinforcing Bars from South Korea:
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Fmt 4703
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Revocation of Antidumping Duty Order, 72 FR
44830 (August 9, 2007).
2 See Initiation of Five-Year (Sunset) Reviews, 83
FR 25436 (June 1, 2018).
3 See letters from RTAC, ‘‘Steel Concrete
Reinforcing Bars from the People’s Republic of
China: Notice of Intent to Participate,’’ dated June
12, 2018 (China NOITP); ‘‘Steel Concrete
Reinforcing Bars from Ukraine: Notice of Intent to
Participate,’’ dated June 12, 2018 (Ukraine NOITP);
‘‘Steel Concrete Reinforcing Bars from Belarus:
Notice of Intent to Participate,’’ dated June 12, 2018
(Belarus NOITP); ‘‘Steel Concrete Reinforcing Bars
from Indonesia: Notice of Intent to Participate,’’
dated June 12, 2018 (Indonesia NOITP); ‘‘Steel
Concrete Reinforcing Bars from Latvia: Notice of
Intent to Participate,’’ dated June 12, 2018 (Latvia
NOITP); ‘‘Steel Concrete Reinforcing Bars from
Moldova: Notice of Intent to Participate,’’ dated
June 12, 2018 (Moldova NOITP); ‘‘Steel Concrete
Reinforcing Bars from Poland: Notice of Intent to
Participate,’’ dated June 12, 2018 (Poland NOITP).
4 See China NOITP at 1–2; Ukraine NOITP at 1–
2; Belarus NOITP at 1–2; Indonesia NOITP at 1–2;
Latvia NOITP at 1–2; Moldova NOITP at 1–2;
Poland NOITP at 1–2.
5 See letters from RTAC, ‘‘Steel Concrete
Reinforcing Bars from the People’s Republic of
China: Substantive Response to Notice of
Initiation,’’ dated July 2, 2018 (China Substantive
Response); ‘‘Steel Concrete Reinforcing Bars from
Belarus: Substantive Response to Notice of
Initiation,’’ dated July 2, 2018 (Belarus Substantive
Response); ‘‘Steel Concrete Reinforcing Bars from
Indonesia: Substantive Response to Notice of
Initiation,’’ dated July 2, 2018 (Indonesia
Substantive Response); ‘‘Steel Concrete Reinforcing
Bars from Latvia: Substantive Response to Notice of
Initiation,’’ dated July 2, 2018 (Latvia Substantive
Response); ‘‘Steel Concrete Reinforcing Bars from
Moldova: Substantive Response to Notice of
Initiation,’’ dated July 2, 2018 (Moldova Substantive
Response); ‘‘Steel Concrete Reinforcing Bars from
Poland: Substantive Response to Notice of
Initiation,’’ dated July 2, 2018 (Poland Substantive
Response); ‘‘Steel Concrete Reinforcing Bars from
Ukraine: Substantive Response to Notice of
Initiation,’’ dated July 2, 2018 (Ukraine Substantive
Response).
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]]>Agencies
[Federal Register Volume 83, Number 194 (Friday, October 5, 2018)]
[Notices]
[Pages 50342-50344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21734]
[[Page 50342]]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-570-068]
Forged Steel Fittings From the People's Republic of China: Final
Affirmative Countervailing Duty Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that
countervailable subsidies are being provided to producers and exporters
of forged steel fittings from the People's Republic of China (China).
DATES: Applicable October 5, 2018.
FOR FURTHER INFORMATION CONTACT: Brian Smith or Janae Martin, 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) 482-1766 or (202)
482-0238, respectively.
SUPPLEMENTARY INFORMATION:
Background
On March 14, 2018, Commerce published in the Federal Register the
Preliminary Determination.\1\ The selected mandatory respondents in
this investigation are Beijing Bell Plumbing Mfg., Ltd. (Beijing Bell)
and Both-Well (Taizhou) Steel Fittings, Co., Ltd. (Both-Well). In the
Preliminary Determination, in accordance with section 705(a)(1) of the
Act and 19 CFR 351.210(b)(4), Commerce aligned the final CVD
determination with the final antidumping duty (AD) determination. The
revised deadline for the final determination of this investigation is
now October 1, 2018. On May 25, 2018, Commerce issued its Post-
Preliminary Analysis.\2\
---------------------------------------------------------------------------
\1\ See Forged Steel Fittings from the People's Republic of
China: Preliminary Affirmative Countervailing Duty Determination and
Alignment of Final Determination With Final Antidumping Duty
Determination, 83 FR 11170 (March 14, 2018) (Preliminary
Determination).
\2\ See Memorandum to Gary Taverman, ``Post-Preliminary Analysis
of Countervailing Duty Investigation: Forged Steel Fittings from the
People's Republic of China,'' dated May 25, 2018 (Post-Preliminary
Analysis).
---------------------------------------------------------------------------
A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by 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 and electronic
versions of the Issues and Decision Memorandum are identical in
content.
---------------------------------------------------------------------------
\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination of the Countervailing Duty
Investigation of Forged Steel Fittings from the People's Republic of
China,'' dated concurrently with this determination and hereby
adopted by this notice (Issues and Decision Memorandum).
---------------------------------------------------------------------------
Period of Investigation
The period of investigation (POI) is January 1, 2016, through
December 31, 2016.
Scope of the Investigation
The products covered by this investigation are forged steel
fittings from China. For a full description of the scope of this
investigation, see the ``Scope of the Investigation'' in Appendix I.
Scope Comments
During the course of this investigation and the concurrent
antidumping investigations of forged steel fittings from China, Italy,
and Taiwan, Commerce received numerous scope comments from interested
parties. Commerce issued a Preliminary Scope Decision Memorandum \4\
and a Second Preliminary Scope Decision Memorandum \5\ to address these
comments. For a summary of the product coverage comments and rebuttals
submitted to the records of this investigation and the concurrent
antidumping investigations of forged steel fittings from China, Italy,
and Taiwan for consideration in the final determinations, and our
accompanying discussion and analysis of them, see the Final Scope
Decision Memorandum, issued on July 23, 2018, concurrent with the final
determination in the antidumping duty investigation of forged steel
fittings from Taiwan.\6\ See Appendix I for the final scope of the
investigation.
---------------------------------------------------------------------------
\4\ See Memorandum to the File, ``Scope Comments Decision
Memorandum for the Preliminary Determinations,'' dated March 7, 2018
(Preliminary Scope Decision Memorandum).
\5\ See Memorandum to the File, ``Second Preliminary Scope
Decision Memorandum,'' dated May 7, 2018 (Second Preliminary Scope
Decision Memorandum).
\6\ See Memorandum, ``Forged Steel Fittings from China, Italy
and Taiwan: Final Scope Determination Decision Memorandum,'' dated
July 23, 2018 (Final Scope Decision Memorandum); see also,
Memorandum to the File, ``Placing Carbon Steel Butt Weld Pipe
Fitting Scope Information Ruling on the Record,'' dated September
19, 2018.
---------------------------------------------------------------------------
Verification
As provided in section 782(i) of the Act, in May 2018, we conducted
verification of the questionnaire response submitted by Both-Well, the
information submitted by the Government of China (GOC) with respect to
one program (Provision of Special Bar Quality Bar for Less Than
Adequate Remuneration), and the no-shipment claim submitted by Beijing
Bell.\7\ We used standard verification procedures, including an
examination of relevant accounting and financial records, and original
source documents.
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\7\ See Commerce Memoranda, ``Verification of the Questionnaire
Responses of the Government of the People's Republic of China:
Countervailing Duty Investigation of Forged Steel Fittings from the
People's Republic of China,'' dated June 25, 2018 (GOC Verification
Report); ``Verification of Beijing Bell Plumbing Mfg., Ltd.'s Claim
of No Sales of Subject Merchandise to the U.S. Market During the
Period of Investigation: Countervailing Duty Investigation of Forged
Steel Fittings from the People's Republic of China,'' dated June 28,
2018 (Beijing Bell Verification Report); and ``Verification of the
Questionnaire Responses of Both-Well (Taizhou) Steel Fittings, Co.,
Ltd.: Countervailing Duty Investigation of Forged Steel Fittings
from the People's Republic of China,'' dated August 7, 2018 (Both-
Well Verification Report).
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Analysis of Subsidy Programs and Comments Received
The subsidy programs under investigation and the issues raised in
the case and rebuttal briefs by parties in this investigation are
discussed 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.
Methodology
Commerce conducted this investigation in accordance with section
701 of the Tariff Act of 1930, as amended (the Act). For each of the
subsidy programs found countervailable, Commerce determines that there
is a subsidy, i.e. , a financial contribution by an ``authority'' that
gives rise to a benefit to the recipient, and that the subsidy is
specific.\8\ For a full description of the methodology
[[Page 50343]]
underlying our final determination, see the Issues and Decision
Memorandum.
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\8\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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In making this final determination, Commerce relied, in part, on
facts available pursuant to section 776(a) of the Act. Additionally, as
discussed in the Issues and Decision Memorandum, because the GOC did
not act to the best of its ability in responding to our requests for
information, we drew adverse inferences, where appropriate, in
selecting from among the facts otherwise available, pursuant to section
776(b) of the Act.\9\ For further information, see the section ``Use of
Facts Otherwise Available and Adverse Inferences'' in the accompanying
Issues and Decision Memorandum.
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\9\ See Issues and Decision Memorandum at ``Use of Facts
Otherwise Available and Adverse Inferences'' section.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, minor corrections presented at verification, and our
verification findings, we made certain changes to Both-Well's subsidy
rate calculations. For a discussion of these changes, see the Issues
and Decision Memorandum.
Final Determination
In accordance with section 705(c)(l)(B)(i) of the Act, we
calculated a subsidy rate for Both-Well, a producer/exporter of subject
merchandise selected for individual examination in this investigation.
Based on our verification findings, we determine that the other
mandatory respondent in this investigation, Beijing Bell, did not
export subject merchandise to the United States during the period of
this investigation.\10\ Therefore, we did not calculate a subsidy rate
for Beijing Bell.
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\10\ See Beijing Bell Verification Report at 4-7.
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Section 705(c)(5)(A) of the Act provides that in the final
determination, Commerce shall determine an estimated all-others rate
for companies not individually examined. This rate shall be an amount
equal to the weighted average of the estimated subsidy rates
established for those companies individually examined, excluding any
zero and de minimis rates and any rates based entirely under section
776 of the Act.
In this investigation, Commerce calculated an individual estimated
countervailable subsidy rate for Both-Well that is not zero, de
minimis, or based entirely on facts otherwise available. Because Both-
Well is the only individually examined exporter/producer in this
investigation and its calculated rate is not zero, de minimis, or based
entirely under section 776 of the Act, the estimated weighted-average
rate calculated for Both-Well is the rate assigned to all-other
producers and exporters, pursuant to section 705(c)(5)(A)(i) of the
Act.
Commerce determines that the following estimated countervailable
subsidy rates exist:
------------------------------------------------------------------------
Subsidy
Company rate
(percent)
------------------------------------------------------------------------
Both-Well (Taizhou) Steel Fittings, Co., Ltd................ 13.41
All-Others.................................................. 13.41
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Disclosure
We intend to disclose to parties in this proceeding the
calculations performed for this final determination within five days of
the date of publication of this notice, in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
As a result of our Preliminary Determination and pursuant to
section 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs
and Border Protection (CBP) to suspend liquidation of entries of
subject merchandise as described in the scope of the investigation
section entered, or withdrawn from warehouse, for consumption on or
after the date of publication of the Preliminary Determination in the
Federal Register. In accordance with section 703(d) of the Act, we
issued instructions to CBP to discontinue the suspension of liquidation
for CVD purposes for subject merchandise entered, or withdrawn from
warehouse, on or after July 11, 2018, but to continue the suspension of
liquidation of all entries from March 14, 2018, through July 10, 2018.
If the U.S. International Trade Commission (ITC) issues a final
affirmative injury determination, we will issue a CVD order, reinstate
the suspension of liquidation under section 706(a) of the Act, and
require a cash deposit of estimated countervailing duties for such
entries of subject merchandise in the amounts indicated above. If the
ITC determines that material injury, or threat of material injury, does
not exist, this proceeding will be terminated, and all estimated duties
deposited or securities posted as a result of the suspension of
liquidation will be refunded or canceled.
International Trade Commission Notification
In accordance with section 705(d) of the Act, we will notify the
ITC of our determination. In addition, we are making available to the
ITC all non-privileged and non-proprietary information related to this
investigation. We will allow the ITC access to all privileged and
business proprietary information in our files, provided the ITC
confirms that it will not disclose such information, either publicly or
under an administrative protective order (APO), without the written
consent of the Assistant Secretary for Enforcement and Compliance.
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.
Notification to Interested Parties
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act and 19 CFR 351.210(c).
Dated: October 1, 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 carbon and
alloy forged steel fittings, whether unfinished (commonly known as
blanks or rough forgings) or finished. Such fittings are made in a
variety of shapes including, but not limited to, elbows, tees,
crosses, laterals, couplings, reducers, caps, plugs, bushings,
unions, and outlets. Forged steel fittings are covered regardless of
end finish, whether threaded, socket-weld or other end connections.
While these fittings are generally manufactured to
specifications ASME B16.11, MSS SP-79, MSS SP-83, MSS SP-97, ASTM
A105, ASTM A350, and ASTM A182, the scope is not limited to fittings
made to these specifications.
The term forged is an industry term used to describe a class of
products included in
[[Page 50344]]
applicable standards, and does not reference an exclusive
manufacturing process. Forged steel fittings are not manufactured
from casting. Pursuant to the applicable specifications, subject
fittings may also be machined from bar stock or machined from
seamless pipe and tube.
All types of fittings are included in the scope regardless of
nominal pipe size (which may or may not be expressed in inches of
nominal pipe size), pressure rating (usually, but not necessarily
expressed in pounds of pressure/PSI, e.g., 2,000 or 2M; 3,000 or 3M;
6,000 or 6M; 9,000 or 9M), wall thickness, and whether or not heat
treated.
Excluded from this scope are all fittings entirely made of
stainless steel. Also excluded are flanges, butt weld fittings, butt
weld outlets, nipples, and all fittings that have a maximum pressure
rating of 300 pounds of pressure/PSI or less.
Also excluded are fittings certified or made to the following
standards, so long as the fittings are not also manufactured to the
specifications of ASME B16.11, MSS SP-79, MSS SP-83, MSS SP-97, ASTM
A105, ASTM A350, and ASTM A182:
American Petroleum Institute (API) API 5CT, API 5L, or API
11B
Society of Automotive Engineering (SAE) SAE J476, SAE J514,
SAE J516, SAE J517, SAE J518, SAE J1026, SAE J1231, SAE J1453, SAE
J1926, J2044 or SAE AS 35411
Underwriter's Laboratories (UL) certified electrical
conduit fittings
ASTM A153, A536, A576, or A865
Casing Conductor Connectors 16-42 inches in diameter made
to proprietary specifications
Military Specification (MIL) MIL-C-4109F and MIL-F-3541
International Organization for Standardization (ISO)
ISO6150-B
To be excluded from the scope, products must have the
appropriate standard or pressure markings and/or accompanied by
documentation showing product compliance to the applicable standard
or pressure, e.g. , ``API 5CT'' mark and/or a mill certification
report.
Subject carbon and alloy forged steel fittings are normally
entered under Harmonized Tariff Schedule of the United States
(HTSUS) 7307.99.1000, 7307.99.3000, 7307.99.5045, and 7307.99.5060.
They also may be entered under HTSUS 7307.92.3010, 7307.92.3030,
7307.92.9000, and 7326.19.0010. The HTSUS subheadings and
specifications are provided for convenience and customs purposes;
the written description of the scope is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
Comment 1: Provision for Land for Less Than Adequate
Remuneration (LTAR): Appropriate Benchmark
Comment 2: Provision for Special Bar Quality(SBQ) Bar for LTAR:
Whether Respondent's Input Is Comparable to SBQ Bar
Comment 3: SBQ Bar for LTAR: Market Distortion Analysis
Comment 4: Affiliated Party Sales
Comment 5: Removing Value-Added Tax (VAT) From Reported Freight
Data
Comment 6: Removing VAT From Reported Electricity Data
Comment 7: Application of Adverse Facts Available (AFA)
Concerning Electricity
VII. Recommendation
[FR Doc. 2018-21734 Filed 10-4-18; 8:45 am]
BILLING CODE 3510-DS-P
