Certain Carbon Steel Butt-Weld Pipe Fittings From the People's Republic of China: Notice of Covered Merchandise Referral and Initiation of Covered Merchandise Inquiry, 58310-58311 [2022-20794]

Agencies

• DEPARTMENT OF COMMERCE
• International Trade Administration

[Federal Register Volume 87, Number 185 (Monday, September 26, 2022)]
[Notices]
[Pages 58310-58311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-20794]



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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-814]


Certain Carbon Steel Butt-Weld Pipe Fittings From the People's 
Republic of China: Notice of Covered Merchandise Referral and 
Initiation of Covered Merchandise Inquiry

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

SUMMARY: The U.S. Department of Commerce (Commerce) has received a 
covered merchandise referral from U.S. Customs and Border Protection 
(CBP) in connection with a CBP investigation concerning alleged evasion 
of the antidumping duty (AD) order on certain carbon steel butt-weld 
pipe fittings (butt-weld pipe fittings) from the People's Republic of 
China (China). Commerce is initiating a covered merchandise inquiry to 
determine whether the merchandise described in the referral is subject 
to the AD order on butt-weld pipe fittings from China. Interested 
parties are invited to comment and submit factual information 
addressing this initiation.

DATES: Applicable September 26, 2022.

FOR FURTHER INFORMATION CONTACT: Rachel Jennings or Miranda Bourdeau, 
AD/CVD Operations, Office V, Enforcement & Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-1110 or (202) 
482-2021, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    Section 517(b)(4)(A)(i) of the Tariff Act of 1930, as amended (the 
Act), provides a procedure whereby if, during the course of an Enforce 
and Protect Act (EAPA) investigation, CBP is unable to determine 
whether the merchandise at issue is covered merchandise within the 
meaning of section 517(a)(3) of the Act, it shall refer the matter to 
Commerce to make such a determination. Section 517(a)(3) of the Act 
defines covered merchandise as merchandise that is subject to an AD 
order issued under section 736 of the Act or a countervailing duty 
order issued under section 706 of the Act. Section 517(b)(4)(B) of the 
Act states that Commerce, after receiving a covered merchandise 
referral from CBP, shall determine whether the merchandise is covered 
merchandise and promptly transmit its determination to CBP. Commerce's 
regulations at 19 CFR 351.227 establish procedures for covered 
merchandise referrals that Commerce receives from CBP in connection 
with an EAPA investigation.\1\
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    \1\ See Regulations to Improve Administration and Enforcement of 
Antidumping and Countervailing Duty Laws, 86 FR 52300, 52354-62 
(September 20, 2021) (final rule promulgating the regulation 
establishing procedures for covered merchandise referrals).
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    On September 6, 2022, Commerce received a sufficient covered 
merchandise referral from CBP regarding CBP EAPA Investigation No. 
7335,\2\ which concerns the AD order on butt-weld pipe fittings from 
China.\3\ Specifically, CBP explained that an allegation was filed by 
Allied Group alleging that Norca Industrial Company, LLC (Norca) and 
International Piping & Procurement Group, LP (IPPG), imported butt-weld 
pipe fittings from China into the United States that were transshipped 
through the Socialist Republic of Vietnam (Vietnam).\4\ CBP informed 
Commerce that CBP is unable to determine whether certain merchandise is 
covered merchandise subject to the Order. Thus, CBP requested that 
Commerce issue a determination as to whether: (1) Chinese-origin rough 
fittings that only underwent the final stage of three production stages 
\5\ (i.e., finishing processes) in Vietnam are within the scope of the 
Order; and (2) whether Chinese-origin rough fittings that underwent 
both the second and third stages of production in Vietnam are within 
the scope of the Order.
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    \2\ See CBP's Letter, ``Covered Merchandise Referral Request for 
Merchandise Under EAPA Consolidated Case Number 7335 (Remand Number 
7717), Imported by Norca Industrial Company, LLC and International 
Piping & Procurement Group, LP: Antidumping Duty Order on Certain 
Carbon Steel Butt-Weld Pipe Fittings from the People's Republic of 
China,'' dated September 6, 2022 (Covered Merchandise Referral 
Request). The covered merchandise referral and any supporting 
documents will be made available on Enforcement and Compliance's 
Antidumping Duty and Countervailing Duty Centralized Electronic 
Service System (ACCESS).
    \3\ See Antidumping Duty Order and Amendment to the Final 
Determination of Sales at Less Than Fair Value; Certain Carbon Steel 
Butt-Weld Pipe Fittings from the People's Republic of China, 57 FR 
29702 (July 6, 1992) (Order).
    \4\ See Covered Merchandise Referral Request at 1-2.
    \5\ CBP's referral states that subject merchandise typically 
undergoes three production processes to convert seamless pipe into 
butt-weld pipe fittings: (1) converting seamless pipe ``into the 
rough shape of an elbow, tee, reducer, etc., through a cold- or hot-
forming (or forging) process; (2) reforming or sizing the rough 
fitting so that the fitting will match the pipe it is destined to be 
welded to; and (3) a finishing process such as ``shot blasting, or 
other cleaning, machine beveling, boring and tapering, grinding, die 
stamping, inspection, and painting.''
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Initiation of Covered Merchandise Inquiry

    Commerce is hereby notifying interested parties that it is 
initiating a covered merchandise inquiry to determine whether the 
merchandise subject to the referral is covered merchandise within the 
meaning of section 517(a)(3) of the Act. Additionally, Commerce intends 
to provide interested parties with the opportunity to participate in 
this segment of the proceeding, including through the submission of 
comments and factual information, and, if appropriate, verification.
    In accordance with 19 CFR 351.227(d)(1), within 30 days of the date 
of publication of this notice, interested parties are permitted one 
opportunity to submit comments and factual information addressing the 
initiation. Within 14 days of the filing of such comments, any 
interested party is permitted one opportunity to submit comments and 
factual information to rebut, clarify, or correct factual information 
submitted by the other interested parties.
    In accordance with 19 CFR 351.227(d)(2), following initiation of a 
covered merchandise inquiry, Commerce may also issue questionnaires and 
verify submissions received, where appropriate. Commerce may limit 
issuance of questionnaires to a reasonable number of respondents. 
Questionnaire responses are due on the date specified by Commerce. 
Within 14 days after a questionnaire response has been filed with 
Commerce, an interested party other than the original submitter is 
permitted one opportunity to submit comments and factual information to 
rebut, clarify, or correct factual information contained in the 
questionnaire response. Within seven days of the filing of such 
rebuttal, clarification, or correction, the original submitter is 
permitted one opportunity to submit comments and factual information to 
rebut, clarify, or correct factual information submitted in the 
interested party's rebuttal, clarification, or correction.
    In certain circumstances, Commerce may issue a preliminary 
determination as to whether there is a reasonable basis to believe or 
suspect that the product that is subject to the covered merchandise 
inquiry is covered by the scope of the order. Pursuant to 19 CFR 
351.227(c), Commerce intends to issue a final determination within 120 
days of the publication of this notice (this deadline may be extended 
if Commerce determines that good cause exists to warrant an extension). 
Promptly after

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publication of Commerce's final determination, Commerce will convey a 
copy of the final determination in the manner prescribed by section 
516A(a)(2)(A)(ii) of the Act to all parties to the proceeding and 
Commerce will transmit its final determination to CBP in accordance 
with section 517(b)(4)(B) of the Act.\6\
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    \6\ See 19 CFR 351.227(e)(2).
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    Pursuant to 19 CFR 351.227(d)(5), during the pendency of this 
proceeding, Commerce may rescind, in whole or in part, a covered 
merchandise inquiry. Situations in which Commerce may rescind a covered 
merchandise inquiry include if CBP withdraws its covered merchandise 
referral or if Commerce determines that it can address CBP's covered 
merchandise referral in another segment of the proceeding. In 
accordance with 19 CFR 351.227(c)(3), Commerce may align the deadlines 
of this covered merchandise inquiry with the deadlines of another 
segment of the proceeding if it determines it is appropriate to do so.
    Parties are hereby notified that this may be the only notice that 
Commerce publishes in the Federal Register concerning this covered 
merchandise referral. Except as indicated below, interested parties 
that wish to participate in this segment of the proceeding and receive 
notice of the final determination must submit their letters of 
appearance as discussed below. Further, any representative of an 
interested party desiring access to business proprietary information in 
this segment of the proceeding must file an application for access to 
business proprietary information under administrative protective order 
(APO), as discussed below.

Scope of the Order

    The merchandise covered by the Order consists of certain carbon 
steel butt-weld pipe fittings, having an inside diameter of less than 
14 inches, imported in either finished or unfinished form. These formed 
or forged pipe fittings are used to join sections in piping systems 
where conditions require permanent, welded connections, as 
distinguished from fittings based on other fastening methods (e.g., 
threaded, grooved, or bolted fittings). Carbon steel butt-weld pipe 
fittings are currently classified under subheading 7307.93.30 of the 
HTSUS. The HTSUS subheading is provided for convenience and customs 
purposes. The written product description remains dispositive.

Merchandise Subject to the Covered Merchandise Inquiry

    The covered merchandise inquiry will address whether the scope 
covers rough fittings originating in China and processed into butt-weld 
pipe fittings through two production scenarios in Vietnam.\7\ Pursuant 
to 19 CFR 351.227(m)(1), Commerce will consider, based on the available 
record evidence, whether the final determination in the covered 
merchandise inquiry should be applied on a: (i) producer-specific, 
exporter-specific, importer-specific basis, or some combination 
thereof; or (ii) on a country-wide basis, regardless of the producer, 
exporter, or importer, to all products from the same country with the 
same relevant physical characteristics as the product at issue.
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    \7\ Specifically, CBP requests that Commerce address rough 
fittings that were shipped from China to Vietnam and were either: 
(1) reformed or sized (so that the fitting will match the pipe it is 
destined to be welded to) and finished (i.e., shot blasted, or other 
cleaning, machine beveling, boring and tapering, grinding, die 
stamping, inspection, and painting) prior to shipping to the United 
States; or (2) finished prior to shipping to the United States.
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Filing Requirements

    All submissions to Commerce must be filed electronically via 
ACCESS, unless an exception applies.\8\ An electronically filed 
document must be received successfully in its entirety by the 
applicable deadline. Note that Commerce has temporarily modified 
certain of its requirements for serving documents containing business 
proprietary information, until further notice.\9\ Each submission must 
be placed on the record of the segment of the proceeding for the Order 
(A-570-814), ACCESS Covered Merchandise Inquiry segment ``CBP EAPA Inv. 
No. 7335.''
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    \8\ See Antidumping and Countervailing Duty Proceedings: 
Electronic Filing Procedures; Administrative Protective Order 
Procedures, 76 FR 39263 (July 6, 2011), as amended in Enforcement 
and Compliance; Change of Electronic Filing System Name, 79 FR 69046 
(November 20, 2014) for details of Commerce's electronic filing 
requirements, effective August 5, 2011. Information on help using 
ACCESS can be found at https://access.trade.gov/help.aspx and a 
handbook can be found at https://access.trade.gov/help/Handbook%20on%20Electronic%20Filing%20Procedures.pdf.
    \9\ See Temporary Rule Modifying AD/CVD Service Requirements Due 
to COVID19; Extension of Effective Period, 85 FR 41363 (July 10, 
2020).
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Suspension of Liquidation

    In accordance with 19 CFR 351.227(l)(1), Commerce will notify CBP 
of the initiation of the covered merchandise inquiry and direct CBP to 
continue to suspend liquidation of entries of products subject to the 
covered merchandise inquiry that were already subject to the suspension 
of liquidation, and to apply the cash deposit rate that would be 
applicable if the product were determined to be covered by the scope of 
the Order. Should Commerce issue preliminary or final covered 
merchandise determinations, Commerce will follow the suspension of 
liquidation rules under 19 CFR 351.227(l)(2)-(4). In accordance with 19 
CFR 351.227(l)(5), nothing in this section affects CBP's authority to 
take any additional action with respect to the suspension of 
liquidation or related measures.

Notification to Interested Parties

    Interested parties that wish to participate in this segment of the 
proceeding and be added to the public service list(s) for this segment 
of the proceeding must file a letter of appearance in accordance with 
19 CFR 351.103(d)(1), with one exception: the relevant parties to CBP's 
EAPA investigation publicly identified by CBP in the covered 
merchandise referral referenced above are not required to submit a 
letter of appearance, and will be added to the public service list for 
this segment of the proceeding by Commerce.
    Commerce placed an APO on the record on September 19, 2022.\10\ 
Commerce intends to place the business proprietary versions of the 
documents (if any) contained in the covered merchandise referral on the 
record of this proceeding in ACCESS.
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    \10\ See Administrative Protective Order, ``Request for 
Establishment of Administrative Protective Order: Certain Carbon 
Steel Butt-Weld Pipe Fittings from the People's Republic of China 
(A-570-814),'' dated September 19, 2022.
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    Representatives of interested parties must submit applications for 
disclosure under the APO in accordance with the procedures outlined in 
Commerce's regulations at 19 CFR 351.305. Those procedures apply to 
this segment of the proceeding, with one exception: APO applicants 
representing the parties that have been identified by CBP as an 
importer in the covered merchandise referral (referenced above) are 
exempt from the additional filing requirements for importers pursuant 
to 19 CFR 351.305(d).
    This notice is issued and published pursuant to section 517(b)(4) 
of the Act and 19 CFR 351.227(b).

    Dated: September 20, 2022.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.
[FR Doc. 2022-20794 Filed 9-23-22; 8:45 am]
BILLING CODE 3510-DS-P