[Federal Register Volume 83, Number 34 (Tuesday, February 20, 2018)]
[Notices]
[Pages 7145-7148]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03404]
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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:
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
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that cast iron soil pipe fittings from the People's Republic of China
(China) were sold in the United States at less than fair value (LTFV)
during the period of investigation (POI), January 1, 2017, through June
30, 2017.
DATES: Applicable February 20, 2018.
FOR FURTHER INFORMATION CONTACT: Sergio Balbontin or Michael Bowen, 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 or (202)
482-0768, respectively.
SUPPLEMENTARY INFORMATION:
Background
This preliminary determination is made in accordance with section
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce
published the notice of initiation of this investigation on August 8,
2017.\1\ On November 27, 2017, Commerce postponed the preliminary
determination of this investigation.\2\ 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 preliminary determination of this investigation is now February 12,
2018.\3\
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\1\ See Cast Iron Soil Pipe Fittings from the People's Republic
of China: Initiation of Less-Than-Fair Value Investigation, 82 FR
37053 (August 8, 2017) (Initiation Notice).
\2\ See Cast Iron Soil Pipe Fittings from People's Republic of
China: Postponement of Preliminary Determination in the Less-Than-
Fair-Value Investigation, 82 FR 55989 (November 27, 2017).
\3\ 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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For a complete description of the events that followed the
initiation of this investigation, see the Preliminary Decision
Memorandum.\4\ A list of topics included in the Preliminary Decision
Memorandum is included as Appendix II to this notice. The Preliminary
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 to all parties in the
Central Records Unit, Room B8024 of the main Department of Commerce
building. In addition, a complete version of the Preliminary Decision
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary
Decision Memorandum are identical in content.
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\4\ See Memorandum, ``Decision Memorandum for the Preliminary
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 (Preliminary
Decision Memorandum).
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[[Page 7146]]
Scope of the Investigation
The products covered by this investigation are cast iron soil pipe
fittings from China. For a complete description of the scope of this
investigation, see Appendix I.
Scope Comments
In accordance with the preamble to Commerce's regulations,\5\ the
Initiation Notice set aside a period of time for parties to raise
issues regarding product coverage (scope).\6\ The petitioner commented
on the scope of the investigation as it appeared in the Initiation
Notice, proposing the addition of certain Harmonized Tariff System
(HTS) codes.\7\ We are not preliminarily modifying the scope language
as it appeared in the Initiation Notice, but we invite parties to
comment on whether to add the proposed HTS codes to the scope
language.\8\
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\5\ See Antidumping Duties; Countervailing Duties, Final Rule,
62 FR 27296, 27323 (May 19, 1997).
\6\ See Initiation Notice, 82 FR at 37053.
\7\ See Letter from the petitioner, ``Cast Iron Soil Pipe
Fittings from the People's Republic of China: Pre-Preliminary
Comments,'' dated January 18, 2018.
\8\ See the Preliminary Decision Memorandum for further
discussion.
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Methodology
Commerce is conducting this investigation in accordance with
section 731 of the Act. Commerce calculated export prices and
constructed export prices in accordance with sections 772(a) and (b) of
the Act, respectively. Because China is a non-market economy within the
meaning of section 771(18) of the Act, Commerce has calculated normal
value in accordance with section 773(c) of the Act. Furthermore,
pursuant to section 776(a) and (b) of the Act, Commerce preliminarily
has relied upon facts otherwise available, with adverse inferences, for
the China-wide entity. For a full description of the methodology
underlying Commerce's preliminary determination, see the Preliminary
Decision Memorandum.
Preliminary Affirmative Determination of Critical Circumstances, in
Part
In accordance with section 733(e) of the Act and 19 CFR 351.206,
Commerce preliminarily determines that critical circumstances exist
with respect to imports of cast iron soil pipe fittings from China for
mandatory respondent Sibo International Limited (Sibo), the non-
individually examined respondents found to be eligible for a separate
rate, and the China-wide entity, but do not exist for mandatory
respondents Shanxi Xuanshi Industrial Group Co., Ltd. (Shanxi Xuanshi)
and Wor-Biz International Trading Co., Ltd. (Anhui) (Wor-Biz). For a
full description of the methodology and results of Commerce's analysis,
see the Preliminary Decision Memorandum.
Combination Rates
In the Initiation Notice,\9\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Policy Bulletin
05.1 describes this practice.\10\
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\9\ See Initiation Notice, 82 FR at 37057.
\10\ See Enforcement and Compliance's Policy Bulletin No. 05.1,
regarding, ``Separate-Rates Practice and Application of Combination
Rates in Antidumping Investigations involving Non-Market Economy
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination
Commerce preliminarily determines that the following estimated
weighted-average dumping margins exist:
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Cash deposit
Estimated rate (adjusted
Producer Exporter weighted- for subsidy
average dumping offsets)
margin (percent) (percent)
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Shanxi Xuanshi Industrial Group Co., Ltd.... Shanxi Xuanshi Industrial 68.37 68.28
Group Co., Ltd.
Qinshui Shunshida Casting Co., Ltd.......... Sibo International Limited.... 109.95 109.79
Guang Zhou Premier & Pinan Foundry Co., Ltd./ Wor-Biz Trading Co., Ltd. 78.86 78.63
Botou Chenyuan Foundry Co., Ltd./Wuhu Best (Anhui).
Machines Co., Ltd.
Shijiazhuang Asia Casting Co., Ltd.......... Shijiazhuang Asia Casting Co., 88.47 88.31
Ltd.
Qinshui Shunshida Casting Co., Ltd./Xinle Shanxi Zhongrui Tianyue 88.47 88.31
Xinye Metal Products Co., Ltd. Trading Co., Ltd.
Qinshui Shunshida Casting Co., Ltd./Xinle Dalian Lino F.T.Z. Co., Ltd... 88.47 88.31
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., 88.47 88.31
Qinshui Shunshida Casting Co., Ltd./Foshan Ltd.
City Deying Metal Products Co., Ltd.
Xinle Rishuo Casting Factory/Qinshui Dalian Metal I/E Co., Ltd..... 88.47 88.31
Shunshida Casting Co., Ltd.
Qinshui County Xinwei Precision Co., Ltd.... Qinshui Shunshida Casting Co., 88.47 88.31
Ltd.
Shanxi Guruiwei Casting Co., Ltd............ Richang Qiaoshan Trade Co., 88.47 88.31
Ltd.
Shijiazhuang Jingruisheng Metal Products Hebei Metals & Engineering 88.47 88.31
Co., Ltd./Qinshui Shunshida Casting Co., Products Trading Co., Ltd.
Ltd./Xinle City Zhile Pipe Co., Ltd.
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China-wide Entity....................... .............................. 109.95 109.86
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Suspension of Liquidation
In accordance with section 733(d)(2) of the Act, Commerce will
direct U.S. Customs and Border Protection (CBP) to suspend liquidation
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 this notice in the Federal Register,
as discussed below. Further, pursuant to section 733(d)(1)(B) of the
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash
deposit equal to the weighted-average amount by which normal value
exceeds U.S. price, as indicated in the chart above as follows: (1) For
the producer/
[[Page 7147]]
exporter combinations listed in the table above, the cash deposit rate
is equal to the estimated weighted-average dumping margin listed for
that combination in the table; (2) for all combinations of Chinese
producers/exporters of merchandise under consideration that have not
established eligibility for their own separate rates, the cash deposit
rate will be equal to the estimated weighted-average dumping margin
established for the China-wide entity; and (3) for all third-county
exporters of merchandise under consideration not listed in the table
above, the cash deposit rate is the cash deposit rate applicable to the
Chinese producer/exporter combination (or the China-wide entity) that
supplied that third-country exporter.
Section 733(e)(2) of the Act provides that, given an affirmative
determination of critical circumstances, any suspension of liquidation
shall apply to unliquidated entries of merchandise entered, or
withdrawn from warehouse, for consumption on or after the later of (a)
the date which is 90 days before the date on which the suspension of
liquidation was first ordered, or (b) the date on which notice of
initiation of the investigation was published. Commerce preliminarily
finds that critical circumstances exist for imports of cast iron soil
pipe fittings from China from the producer/exporter Sibo International
Limited/Qinshui Shunshida Casting Co., Ltd., the non-individually
examined respondents found to be eligible for a separate rate, and the
China-wide entity. In accordance with section 733(e)(2)(A) of the Act,
the suspension of liquidation shall apply to unliquidated entries of
merchandise entered, or withdrawn from warehouse, for consumption on or
after the date which is 90 days before the publication of this notice.
To determine the cash deposit rate, 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 when CVD provisional measures are
in effect. Accordingly, where Commerce has made a preliminary
affirmative determination for domestic subsidy pass-through or export
subsidies,\11\ Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted
rates may be found in the Preliminary Determination Section's chart of
estimated weighted-average dumping margins above.
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\11\ See the Preliminary Decision Memorandum for further
discussion.
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Should provisional measures in the companion CVD investigation
expire prior to the expiration of provisional measures in this LTFV
investigation, Commerce will direct CBP to begin collecting cash
deposits at a rate equal to the estimated weighted-average dumping
margins calculated in this preliminary determination unadjusted for the
passed-through domestic subsidies or for export subsidies at the time
the CVD provisional measures expire.
These suspension of liquidation instructions will remain in effect
until further notice.
Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this preliminary determination within five
days of its public announcement or, if there is no public announcement,
within five days of the date of publication of this notice in
accordance with 19 CFR 351.224(b).
Verification
As provided in section 782(i)(1) of the Act, Commerce intends to
verify information relied upon in making its final determination.
Public Comment
Case briefs or other written comments may be submitted to the
Assistant Secretary for Enforcement and Compliance no later than seven
days after the date on which the last final verification report is
issued in this investigation. Rebuttal briefs, limited to issues raised
in case briefs, may be submitted no later than five days after the
deadline date for case briefs.\12\ Pursuant to 19 CFR 351.309(c)(2) and
(d)(2), parties who submit case briefs or rebuttal briefs in this
investigation are encouraged to submit with each argument: (1) A
statement of the issue; (2) a brief summary of the argument; and (3) a
table of authorities.
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\12\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general
filing requirements).
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Pursuant to 19 CFR 351.310(c), interested parties who wish to
request a hearing, limited to issues raised in the case and rebuttal
briefs, must submit a written request to the Assistant Secretary for
Enforcement and Compliance, U.S. Department of Commerce, within 30 days
after the date of publication of this notice. Requests should contain
the party's name, address, and telephone number, the number of
participants, whether any participant is a foreign national, and a list
of the issues to be discussed. If a request for a hearing is made,
Commerce intends to hold the hearing at the U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time
and date to be determined. Parties should confirm by telephone the
date, time, and location of the hearing two days before the scheduled
date.
Postponement of Final Determination and Extension of Provisional
Measures
Section 735(a)(2) of the Act provides that a final determination
may be postponed until not later than 135 days after the date of the
publication of the preliminary determination if, in the event of an
affirmative preliminary determination, a request for such postponement
is made by exporters who account for a significant proportion of
exports of the subject merchandise, or in the event of a negative
preliminary determination, a request for such postponement is made by
the petitioner. 19 CFR 351.210(e)(2) requires that requests by
respondents for postponement of a final antidumping determination be
accompanied by a request for extension of provisional measures from a
four-month period to a period not more than six months in duration.
Between January 15, 2018, and January 25, 2018, pursuant to 19 CFR
351.210(b) and (e), Wor-Biz, Sibo, and Shanxi Xuanshi requested that
Commerce postpone the final determination and that provisional measures
be extended to a period not to exceed six months.\13\ In accordance
with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii) and
(e)(2), because (1) the preliminary determination is affirmative; (2)
the requesting exporters account for a significant proportion of
exports of the subject merchandise; and (3) no compelling reasons for
denial exist, Commerce is postponing the final determination and
extending the provisional measures from a four-month period to a period
not greater than six
[[Page 7148]]
months. Accordingly, Commerce's final determination will publish no
later than 135 days after the publication of the preliminary
determination notice.
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\13\ See Letters from Wor-Biz, ``Cast Iron Soil Pipe Fittings
from the People's Republic of China: Request to Fully Extend the
Final Results,'' dated January 18, 2018; Sibo, ``Cast Iron Soil Pipe
Fittings from the People's Republic of China--Submission Seeking
Extension of Final Determination and Provisional Measures,'' dated
January 19, 2018; and Shanxi Xuanshi, ``Cast Iron Soil Pipe Fittings
from the People's Republic of China (``Soil Pipe Fittings''); A-570-
062; Request for Extension of Final Determination and Provisional
Measures,'' dated January 25, 2018. The petitioner does not oppose
postponement of the final determination. See Letter from the
petitioner, ``Cast Iron Soil Pipe Fittings from the People's
Republic of China: Request to Extend Final Determination,'' dated
January 16, 2018.
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International Trade Commission Notification
In accordance with section 733(f) of the Act, Commerce will notify
the International Trade Commission (ITC) of its preliminary
determination. If the final determination is affirmative, the ITC will
determine before the later of 120 days after the date of this
preliminary determination or 45 days after the final determination
whether these imports are materially injuring, or threaten material
injury to, the U.S. industry.
Notification to Interested Parties
This determination is issued and published in accordance with
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).
Dated: February 12, 2018.
Christian Marsh,
Acting 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. The HTSUS subheading 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 Preliminary Decision Memorandum
I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional
Measures
V. Scope Comments
VI. Scope of the Investigation
VII. Discussion of the Methodology
A. Non-Market Economy Country
B. Surrogate Country and Surrogate Value Comments
C. Separate Rates
D. Affiliation
E. China-Wide Entity
F. Application of Facts Available and Adverse Inferences
G. Date of Sale
H. Comparisons to Fair Value
I. U.S. Price
J. Value-Added Tax (VAT)
K. Normal Value
L. Factor Valuation Methodology
VIII. Currency Conversion
IX. Adjustment Under Section 777(A)(F) of the Act
X. Critical Circumstances
XI. Adjustment for Countervailable Export Subsidies
XII. Verification
XIII. Conclusion
[FR Doc. 2018-03404 Filed 2-16-18; 8:45 am]
BILLING CODE 3510-DS-P