[Federal Register Volume 78, Number 236 (Monday, December 9, 2013)]
[Notices]
[Pages 73825-73827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-29333]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-933]


Frontseating Service Valves From the People's Republic of China; 
Final Results of Antidumping Duty Administrative Review; 2011-2012

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

SUMMARY: On May 13, 2013, the Department of Commerce (``the 
Department'') published the preliminary results of the administrative 
review of the antidumping duty on frontseating service valves from the 
People's Republic of China.\1\ The period of review (``POR'') is April 
1, 2011, through March 31, 2012. The review covers two exporters of 
subject merchandise, Zhejiang DunAn Hetian Metal Co., Ltd. (``DunAn'') 
and Zhejiang Sanhua Co., Ltd. (``Sanhua''). The Department continues to 
find that DunAn did not have reviewable entries during the POR. 
Additionally, we find that Sanhua made sales in the United States at 
prices below normal value (``NV''). Based on our analysis of the 
comments received, we have made changes to our margin calculations for 
Sanhua. The final weighted-average dumping margin for this review is 
listed below in the section entitled ``Final Results of the Review.''
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    \1\ See Frontseating Service Valves From the People's Republic 
of China: Preliminary Results of Antidumping Duty Administrative 
Review; 2011-2012, 78 FR 27954 (May 13, 2013) (``Preliminary 
Results'').

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DATES: Effective Date: December 9, 2013.

FOR FURTHER INFORMATION CONTACT: Laurel LaCivita, AD/CVD Operations, 
Office III, Enforcement and Compliance, U.S. Department of Commerce, 
14th Street and Constitution Avenue NW., Washington, DC 20230; 
telephone: (202) 482-4243.

Background

    On May 13, 2013, the Department published the Preliminary Results. 
At that time, we invited interested parties to comment on our 
Preliminary Results.
    Subsequent to the Preliminary Results, we conducted a verification 
of Sanhua's questionnaire responses in Xialiquan Village, Zhejiang 
Province, People's Republic of China from August 5 through August 9, 
2013.\2\
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    \2\ See Memorandum to Melissa Skinner, ``2011-2012 
Administrative Review of the Antidumping Duty Order on Frontseating 
Service Valves (``FSVs'') from the People's Republic of China 
(``PRC''): Verification of Zhejiang Sanhua Co., Ltd.,'' dated 
September 23, 2013.
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    We received case briefs from Parker-Hannifin Corporation 
(``Petitioner'') and Sanhua on October 17, 2013,\3\ and rebuttal briefs 
from the same parties on October 23, 2013.\4\ At Sanhua's request, we 
held a hearing on October 29, 2013.\5\
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    \3\ See letter from Petitioner, ``Frontseating Service Valves 
from the People's Republic of China; A-570-933; Petitioner's Case 
Brief,'' dated October 17, 2013; see also letter from Sanhua, 
``Frontseating Service Valves from the People's Republic of China; 
A-570-933; Case Brief by Zhejiang Sanhua Co., Ltd.,'' dated October 
17, 2013.
    \4\ See letter from Petitioner, ``Frontseating Service Valves 
from the People's Republic of China; A-570-933; Petitioner's 
Rebuttal Case Brief,'' dated October 23, 2013; see also letter from 
Sanhua, ``Frontseating Service Valves from the People's Republic of 
China; A-570-933; Rebuttal Brief of Zhejiang Sanhua Co., Ltd.,'' 
dated October 23, 2013.
    \5\ See hearing transcript, ``In the Matter of the Antidumping 
Duty Order on Frontseating Service Valves (``FSVs'') from the PRC 
(A-570-933) (4/1/2011-3/31/2012),'' filed November 6, 2013; see also 
Frontseating Service Valves from the People's Republic of China; A-
570-933; Request for a Hearing by Zhejiang Sanhua Co., Ltd..
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Scope of the Order

    The merchandise covered by this order is frontseating service 
valves, assembled or unassembled, complete or incomplete, and certain 
parts thereof. Frontseating service valves are classified under 
subheading 8481.80.1095, and also have been classified under subheading 
8415.90.80.85, of the Harmonized Tariff Schedule of the United States 
(``HTSUS''). It is possible for frontseating service valves to be 
manufactured out of primary materials other than copper and brass, in 
which case they would be classified under HTSUS subheadings 
8481.80.3040, 8481.80.3090, or 8481.80.5090. In addition, if 
unassembled or incomplete frontseating service valves are imported, the 
various parts or components would be classified under HTSUS subheadings 
8481.90.1000, 8481.90.3000, or 8481.90.5000. The HTSUS subheadings are 
provided for convenience and customs purposes. A full written 
description of the scope of the order is contained in the memorandum 
from Edward C. Yang, Office Director, Office VII, Antidumping and 
Countervailing Duty Operations, to Ronald K. Lorentzen, Acting 
Assistant Secretary for Enforcement and Compliance, ``Frontseating 
Service Valves from the People's Republic of China: Issues and Decision 
Memorandum for the Final Results of the 2011-2012 Administrative 
Review'' (``Issues and Decision Memorandum''), which is hereby adopted 
by this notice and incorporated herein by reference. The written 
description is dispositive.

Final Determination of No Reviewable Entries

    As noted in the Preliminary Results, we received a no-shipment 
certification from DunAn.\6\ The company reported that it made no 
shipments of subject merchandise to the United States during the POR. 
U.S. Customs and Border Protection (``CBP'') confirmed that it did not 
identify evidence of shipments from DunAn. Following publication of the 
Preliminary Results, we received no comments from interested parties 
regarding DunAn. As a consequence, and because the record contains no 
evidence to the contrary, we continue to find that DunAn did not make 
reviewable entries during the POR. Accordingly, consistent with the 
Department's refinement to its

[[Page 73826]]

assessment practice in nonmarket economy (``NME'') cases, the 
Department finds that it is appropriate not to rescind the review in 
these circumstances, but rather to complete the review with respect to 
DunAn and issue appropriate instructions to CBP based on the final 
results of the review.\7\
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    \6\ See Preliminary Results, 78 FR at 27954.
    \7\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694 (October 24, 2011) (``NME 
Antidumping Proceedings'').
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Analysis of Comments Received

    All issues raised in the case and rebuttal briefs filed by parties 
in this review 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 follows as an appendix to this notice. 
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 (``IA 
ACCESS''). IA ACCESS is available to registered users at http://iaaccess.trade.gov and in the Central Records Unit, room 7046 of the 
main Department of Commerce building. In addition, a complete version 
of the Issues and Decision Memorandum can be accessed directly on the 
internet at http://www.trade.gov/enforcement/. The signed Issues and 
Decision Memorandum and the electronic version of the Issues and 
Decision Memorandum are identical in content.

Changes Since the Preliminary Results

    Based on an analysis of the comments received from interested 
parties and a review of the record, the Department has made the 
following changes in the margin calculation:
     We revised Sanhua's reported control number (``CONNUM'')-
specific factors of production (``FOPs''), where applicable, to include 
the FOPs of previously excluded products. See Comment 2 of the 
accompanying Issues and Decision Memorandum.
     We revised Sanhua's brass and copper scrap offsets to 
reflect the yield losses attributable only to those components produced 
using brass and copper inputs based on the products examined at 
verification. See Comment 4 of the accompanying Issues and Decision 
Memorandum.
     We based the surrogate value for brass scrap on the GTA 
data from the Philippines, as adjusted for inflation. See Comment 7 of 
the accompanying Issues and Decision Memorandum.
     We determined the surrogate financial ratios in this 
review using only the financial statements of Makati Foundry Inc. See 
Comment 8 of the accompanying Issues and Decision Memorandum.
     We based the calculation of the margin program on Sanhua's 
FOP dataset, FOP02. See Comment 10 of the accompanying Issues and 
Decision Memorandum.
     We revised the calculation of brokerage and handling to 
reflect the per-unit SV for brokerage and handling on the per-unit 
costs identified in Doing Business 2013, Economy Profile: Philippines 
without making adjustments for container size. See Comment 11 of the 
accompanying Issues and Decision Memorandum.

Final Results of the Review

    As a result of this review, we determine that the following 
weighted-average dumping margin exists for the period April 1, 2011, 
through March 31, 2012:

------------------------------------------------------------------------
                                                            Weighted-
                       Exporter                          average  margin
                                                          (percentage)
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Zhejiang Sanhua Co., Ltd..............................              3.88
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Disclosure

    We intend to disclose the calculations performed within five days 
of the date of publication of this notice to parties in this proceeding 
in accordance with 19 CFR 351.224(b).

Assessment Rates

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries covered by this review pursuant to 
section 751(a)(2)(C) of the Tariff Act of 1930, as Amended (``the 
Act'') and 19 CFR 351.212(b).\8\ The final results of this review shall 
be the basis for the assessment of antidumping duties on entries of 
merchandise covered by the final results of this review and for future 
deposits of estimated duties, where applicable. The Department intends 
to issue assessment instructions to CBP 15 days after the date of 
publication of these final results of review.
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    \8\ See Antidumping Proceeding: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Duty Proceedings; Final Modification, 77 FR 8103 (February 14, 
2012).
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    We will instruct CBP to assess antidumping duties on all 
appropriate entries covered by this review for each individual 
assessment rate calculated in the final results of this review that is 
above de minimis (i.e., at or above 0.50 percent). Pursuant to 19 CFR 
351.106(c)(2), we will instruct CBP to liquidate without regard to 
antidumping duties any entries for which the assessment rate is de 
minimis (i.e., less than 0.50 percent).
    The Department recently announced a refinement to its assessment 
practice in NME cases. Pursuant to this refinement in practice, for 
entries that were not reported in the U.S. sales databases submitted by 
companies individually examined during this review, the Department will 
instruct CBP to liquidate such entries at the NME-wide rate. In 
addition, if the Department determines that an exporter under review 
had no shipments of subject merchandise, any suspended entries that 
entered under that exporter's case number (i.e., at that exporter's 
rate) will be liquidated at the NME-wide rate. For a full discussion of 
this practice, see NME Antidumping Proceedings.

Cash Deposit Requirements

    The following cash deposit requirements will be effective for all 
shipments of the subject merchandise entered, or withdrawn from 
warehouse, for consumption on or after the publication date of the 
final results of this administrative review, as provided by section 
751(a)(2)(C) of the Act: (1) For DunAn, which claimed no shipments, the 
cash deposit rate will remain unchanged from the rate assigned to DunAn 
in the most recently-completed review of the company; (2) for Sanhua, 
the cash deposit rate will be the rate identified in ``Final Results of 
the Review,'' as listed above; (3) for previously investigated or 
reviewed PRC and non-PRC exporters that are not under review in this 
segment of the proceeding but that received a separate rate in a 
previous segment, the cash deposit rate will continue to be the 
exporter-specific rate published for the most recent period; (4) for 
all PRC exporters of subject merchandise which have not been found to 
be entitled to a separate rate, the cash deposit rate will continue to 
be the PRC-wide rate of 55.62 percent; \9\ and (5) for all non-PRC 
exporters of subject merchandise which have not received their own 
rate, the cash deposit rate will be the rate applicable to the PRC 
exporter(s) that supplied that non-PRC exporter. The cash deposit 
requirements, when

[[Page 73827]]

imposed, shall remain in effect until further notice.
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    \9\ This rate was established in the final results of the 
original less than fair value investigation. See Frontseating 
Service Valves from the People's Republic of China: Final 
Determination of Sales at Less Than Fair Value and Final Negative 
Determination of Critical Circumstances, 74 FR 10886 (March 13, 
2009).
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Notification to Importers

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of the antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    In accordance with 19 CFR 351.305(a)(3), this notice serves as a 
reminder to parties subject to administrative protective order 
(``APO'') of their responsibility concerning the disposition of 
proprietary information disclosed under the APO. Timely written 
notification of the return or destruction of APO materials, or 
conversion to judicial protective order, is hereby requested. Failure 
to comply with the regulations and terms of an APO is a sanctionable 
violation.
    These final results of review and notice are published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: November 29, 2013.
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix

Issues for the Final Results

Comment 1: Adverse Facts Available
Comment 2: Excluded Products
Comment 3: Brass and Copper Consumption
Comment 4: Brass and Copper Scrap
Comment 5: Reported FOPs and Finished FSV Weights
Comment 6: Surrogate Country
Comment 7: Surrogate Value for Brass Scrap
Comment 8: Selection of the Surrogate Financial Statements
Comment 9: Ex Parte Meetings
Comment 10: Use of the Correct Data Set
Comment 11: Brokerage and Handling Calculations

[FR Doc. 2013-29333 Filed 12-6-13; 8:45 am]
BILLING CODE P