[Federal Register Volume 83, Number 137 (Tuesday, July 17, 2018)]
[Notices]
[Pages 33205-33208]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14925]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-062]
Cast Iron Soil Pipe Fittings From the People's Republic of China:
Final Affirmative Determination of Sales at Less Than Fair Value and
Final Determination of Critical Circumstances, in Part
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that cast
iron soil pipe fittings from the People's Republic of China (China) are
being, or are likely to be, sold in the United States at less than fair
value (LTFV). The period of investigation is January 1, 2017, through
June 30, 2017.
DATES: Applicable July 17, 2018.
FOR FURTHER INFORMATION CONTACT: Sergio Balbontin or Denisa Ursu, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International
Trade Administration, U.S. Department of Commerce, 1401 Constitution
Avenue NW, Washington, DC 20230; telephone: (202) 482-6478 and (202)
482-2285 respectively.
SUPPLEMENTARY INFORMATION:
Background
On February 20, 2018, Commerce published in the Federal Register
the Preliminary Determination in the LTFV investigation of cast iron
soil pipe fittings from China.\1\ The mandatory respondents in this
investigation are Shanxi Xuanshi Industrial Group Co. Ltd. (Xuanshi),
Wor-Biz International Trading Co., Ltd. (Anhui) (Wor-Biz), Sibo
International Limited (Sibo), and Kingway Pipe Co., Ltd. (Kingway).
Commerce exercised its discretion to toll all deadlines affected by the
closure of the Federal Government from January 20 through 22, 2018. If
the new deadline falls on a non-business day, in accordance with
Commerce's practice, the deadline will become the next business day.
The revised deadline for the final determination of this investigation
is now July 5, 2018.\2\
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\1\ See Cast Iron Soil Pipe Fittings from the People's Republic
of China: Preliminary Affirmative Determination of Sales at Less
Than Fair Value, Preliminary Affirmative Determination of Critical
Circumstances, in Part, Postponement of Final Determination and
Extension of Provisional Measures, 83 FR 7145 (February 20, 2018)
(Preliminary Determination) and accompanying Preliminary Decision
Memorandum.
\2\ See Memorandum for The Record from Christian Marsh, Deputy
Assistant Secretary for Enforcement and Compliance, performing the
non-exclusive functions and duties of the Assistant Secretary for
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of
the Federal Government'' (Tolling Memorandum), dated January 23,
2018. All deadlines in this segment of the proceeding have been
extended by 3 days.
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[[Page 33206]]
A summary of the events that occurred since Commerce published the
Preliminary Determination, as well as a full discussion of the issues
raised by interested parties for this final determination may be found
in the Issues and Decision Memorandum issued concurrently with this
notice.\3\ The Issues and Decision Memorandum is a public document and
is on file electronically via Enforcement and Compliance's Antidumping
and Countervailing Duty Centralized Electronic Service System (ACCESS).
ACCESS is available to registered users at http://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 http://enforcement.trade.gov/frn/. The signed Issues and Decision
Memorandum and the electronic version are identical in content.
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\3\ See Memorandum, ``Issues and Decision Memorandum for the
Final Affirmative Determination in the Less-Than-Fair-Value
Investigation of Cast Iron Soil Pipe Fittings from the People's
Republic of China,'' dated concurrently with, and hereby adopted by,
this notice (Issues and Decision Memorandum).
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Scope of the Investigation
The products covered by this investigation are cast iron soil pipe
fittings from China. For a full description of the scope of this
investigation, see the ``Scope of the Investigation'' in Appendix I of
this notice. For this final determination, Commerce has issued a scope
memorandum addressing interested parties' comments regarding scope
issues presented in the case briefs and in subsequent scope
comments.\4\ Commerce has determined to modify the scope of the
investigation to include two additional subheadings of the U.S.
Harmonized Tariff Schedule under which subject merchandise may enter.
Commerce has also provided a clarification in the Final Scope
Memorandum. For further discussion, see Commerce's Final Scope
Memorandum. The scope in Appendix I reflects the final scope language.
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\4\ See Memorandum, ``Countervailing Duty and Less-Than-Fair-
Value Investigations of Cast Iron Soil Pipe Fittings from the
People's Republic of China: Final Scope Memorandum'' (Final Scope
Memorandum), dated concurrently with, and hereby adopted by, this
notice.
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Analysis of Comments Received
The issues raised in the case and rebuttal briefs submitted by
parties in this investigation are addressed in the Issues and Decision
Memorandum. A list of the issues that parties raised, and to which we
responded in the Issues and Decision Memorandum is attached to this
notice at Appendix II.
Final Affirmative Determination of Critical Circumstances, in Part
In accordance with section 733(e)(1) of the Act and 19 CFR 351.206,
we preliminarily found that critical circumstances exist with respect
to imports of cast iron soil pipe fittings from the China-wide entity,
the non-selected separate rate respondents, and Sibo, but do not exist
with respect to Xuanshi and Wor-Biz.\5\ Commerce received no comments
regarding its preliminary critical circumstances findings. For the
final determination, we continue to find that, in accordance with
section 735(a)(3) of the Act and 19 CFR 351.206, critical circumstances
exist with respect to imports of the subject merchandise from the
China-wide entity. Based on updated shipment and import data, we find
that critical circumstances do not exist with respect to Xuanshi, Wor-
Biz, and the non-selected separate rate respondents.\6\ As discussed
below, we have determined that Sibo is no longer eligible for a
separate rate, and is now considered to be part of the China-wide
entity.
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\5\ See Preliminary Determination at 33-34.
\6\ See the Issues and Decision Memorandum for further details.
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China-Wide Entity and Use of Adverse Facts Available
After the Preliminary Determination and prior to verification, Sibo
notified Commerce that it was withdrawing from participation in this
investigation. By withdrawing from participation in this investigation,
Sibo prevented us from conducting verification of its questionnaire
responses, including its claim that it is a wholly foreign-owned
company. Therefore, we find that Sibo has failed to demonstrate its
eligibility for a separate rate, and is considered to be part of the
China-wide entity.\7\ For the reasons explained in the Preliminary
Determination, we continue to find that the use of adverse facts
available (AFA), pursuant to sections 776(a) and (b) of the Act, is
warranted in determining the rate for the China-wide entity, which
includes Sibo, Kingway, and other uncooperative respondents.
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\7\ Id.
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China-Wide Rate
In selecting the AFA rate for the China-wide entity, Commerce's
practice is to select a rate that is sufficiently adverse to ensure
that the uncooperative party does not obtain a more favorable result by
failing to cooperate than if it had fully cooperated.\8\ Specifically,
it is Commerce's practice to select, as an AFA rate, the higher of: (a)
The highest dumping margin alleged in the petition; or, (b) the highest
calculated dumping margin of any respondent in the investigation.\9\
For the final determination and for the reasons explained in the Issues
and Decision Memorandum, we are relying on the highest non-aberrational
control-number-specific dumping margin calculated for Sibo in the
Preliminary Determination to determine the rate for the China-wide
entity.\10\
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\8\ See, e.g., Notice of Preliminary Determination of Sales at
Less Than Fair Value and Postponement of Final Determination:
Purified Carboxymethyl cellulose from Finland, 69 FR 77216 (December
27, 2004), unchanged in Notice of Final Determination of Sales at
Less Than Fair Value: Purified Carboxymethyl cellulose from Finland,
70 FR 28279 (May 17, 2005).
\9\ See, e.g., Certain Stilbenic Optical Brightening Agents from
the People's Republic of China: Final Determination of Sales at Less
Than Fair Value, 77 FR 17436, 17438 (March 26, 2012); Final
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled
Flat-Rolled Carbon Quality Steel Products from the People's Republic
of China, 65 FR 34660 (May 31, 2000), and accompanying IDM.
\10\ See Issues and Decision Memorandum at Comment 1 for a full
discussion of this issue.
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Separate Rates
For the final determination, we continue to find that Xuanshi and
Wor-Biz are eligible to separate rates, as noted below. Section
735(c)(5)(A) of the Act provides that the estimated ``all-others'' rate
shall be an amount equal to the weighted average of the estimated
weighted-average dumping margins established for exporters and
producers individually investigated, excluding zero or de minimis
margins, and any margins determined entirely under section 776 of Act.
Consistent with our practice, we calculated a dumping margin for the
companies determined to be eligible for separate rates, but which were
not individually examined, based on the final dumping margins
calculated for Xuanshi and Wor-Biz.\11\ With two respondents, we would
normally calculate (A) a weighted-average of the dumping margins
calculated for the
[[Page 33207]]
mandatory respondents; (B) a simple average of the dumping margins
calculated for the mandatory respondents; and (C) a weighted-average of
the dumping margins calculated for the mandatory respondents using each
company's publicly-ranged values for the merchandise under
consideration. We would compare (B) and (C) to (A) and select the rate
closest to (A) as the most appropriate rate for the separate rate
companies.\12\ In this case, as complete publicly-ranged sales data was
unavailable, we based the separate rate on a simple average of the two
calculated margins.
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\11\ See Memorandum, ``Cast Iron Soil Pipe Fittings from the
People's Republic of China: Calculation of the Final Margin for
Separate Rate Companies,'' dated concurrently with this notice.
\12\ See Ball Bearings and Parts Thereof from France, Germany,
Italy, Japan, and the United Kingdom: Final Results of Antidumping
Duty Administrative Reviews, Final Results of Changed Circumstances
Review, and Revocation of an Order in Part, 75 FR 53661, 53663
(September 1, 2010).
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Combination Rates
In the Initiation Notice,\13\ Commerce stated that it would
calculate producer/exporter combination rates for the respondents that
are eligible for a separate rate in this investigation. Accordingly, we
have assigned combination rates to certain companies as provided in the
``Final Determination'' section below.
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\13\ See Cast Iron Soil Pipe Fittings from the People's Republic
of China: Initiation of Less-Than-Fair Value Investigation, 82 FR
37053, 37056 (August 8, 2017).
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
interested parties and our findings at verification, we made certain
changes to the calculation of the antidumping duty margin applicable to
Xuanshi and Wor-Biz. For a discussion of these changes, see the Issues
and Decision Memorandum.
Final Determination
Commerce determines that cast iron soil pipe fittings from China
are being, or are likely to be, sold in the United States at LTFV, and
that the following dumping margins exist:
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Estimated Cash deposit
weighted- rate (adjusted
Producer Exporter average for subsidy
dumping margin offsets)
(percent) (percent)
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Shanxi Xuanshi Industrial Group Co., Ltd...... Shanxi Xuanshi Industrial Group 27.18 27.09
Co., Ltd.
Guang Zhou Premier & Pinan Foundry Co., Ltd/ Wor-Biz Trading Co., Ltd (Anhui) 22.11 21.88
Botou Chenyuan Foundry Co., Ltd/Wuhu Best
Machines Co., Ltd.
Shijiazhuang Asia Casting Co., Ltd............ Shijiazhuang Asia Casting Co., 24.65 24.49
Ltd.
Qinshui Shunshida Casting Co., Ltd/Xinle Xinye Shanxi Zhongrui Tianyue Trading 24.65 24.49
Metal Products Co., Ltd. Co., Ltd.
Qinshui Shunshida Casting Co., Ltd/Xinle Dalian Lino F.T.Z. Co., Ltd..... 24.65 24.49
Rishuo Casting Factory/Shijiazhuang
Shunjinguangao Trade Co., Ltd/Xinle Tang Rong
Fa Lan Pan Co., Ltd.
Xinle City Zhile Pipeline Industry Co., Ltd/ Dinggin Hardware (Dalian) Co., 24.65 24.49
Qinshui Shunshida Casting Co., Ltd/Foshan Ltd.
City Deying Metal Products Co., Ltd.
Xinle Rishuo Casting Factory/Qinshui Shunshida Dalian Metal I/E Co., Ltd....... 24.65 24.49
Casting Co., Ltd.
Qinshui County Xinwei Precision Co., Ltd...... Qinshui Shunshida Casting Co., 24.65 24.49
Ltd.
Shanxi Guruiwei Casting Co., Ltd.............. Richang Qiaoshan Trade Co., Ltd. 24.65 24.49
Shijiazhuang Jingruisheng Metal Products Co., Hebei Metals & Engineering 24.65 24.49
Ltd/Qinshui Shunshida Casting Co., Ltd/Xinle Products Trading Co., Ltd.
City Zhile Pipe Co., Ltd.
China-Wide Entity............................. ................................ 360.39 360.30
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Disclosure
Commerce intends to disclose to interested parties the calculations
performed in connection with this final determination within five days
of any public announcement or, if there is no public announcement,
within five days of the date of publication of the notice of final
determination in the Federal Register, in accordance with 19 CFR
351.224(b).
Continuation of Suspension of Liquidation
In accordance with section 735(c)(1)(B) of the Act, we will
instruct U.S. Customs and Border Protection (CBP) to continue to
suspend liquidation of all entries of cast iron soil pipe fittings from
China, as described in the ``Scope of the Investigation'' section,
exported by Xuanshi and Wor-Biz, entered or withdrawn from warehouse,
for consumption on or after February 20, 2018, the date of publication
of the Preliminary Determination notice in the Federal Register.
Furthermore, we continue to find that critical circumstances exist
pursuant to section 735(c)(4)(A) of the Act with respect to the China-
wide entity. Therefore, for this entity, we will instruct CBP to
continue to suspend liquidation for all appropriate entries of cast
iron soil pipe fittings entered, or withdrawn from warehouse, for
consumption on or after November 22, 2017, which is 90 days prior to
the date of publication of the Preliminary Determination.
To determine the cash deposit rate,\14\ Commerce normally adjusts
the estimated weighted-average dumping margin by the amount of domestic
subsidy pass-through and export subsidies determined in a companion
countervailing duty (CVD) proceeding where appropriate. Accordingly,
because Commerce has made a final affirmative determination for export
subsidies, we offset the calculated
[[Page 33208]]
estimated weighted-average dumping margins by the appropriate rates as
indicated in the above chart.\15\ We made no adjustment for domestic
subsidy pass-through in this case because we found no basis upon which
to make such an adjustment.\16\
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\14\ See Modification of Regulations Regarding the Practice of
Accepting Bonds During the Provisional Measures Period in
Antidumping and Countervailing Duty Investigations, 76 FR 61042
(October 3, 2011).
\15\ See the Issues and Decision Memorandum for further
discussion.
\16\ Id.
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In addition, pursuant to section 735(c)(1)(B)(ii) of the Act,
Commerce will instruct CBP to require a cash deposit equal to the
weighted-average amount by which NV exceeds U.S. price as follows: (1)
The cash deposit rate for the exporter/producer combination listed in
the table above will be the rate identified for that combination in the
table; (2) for all combinations of exporters/producers of merchandise
under consideration that have not received their own separate rate
above, the cash-deposit rate will be the cash deposit rate established
for the China-wide entity; and (3) for all non-Chinese exporters of the
merchandise under consideration which have not received their own
separate rate above, the cash deposit rate will be the cash deposit
rate applicable to the Chinese exporter/producer combination that
supplied that non-Chinese exporter. These suspension of liquidation
instructions will remain in effect until further notice.
International Trade Commission Notification
In accordance with section 735(d) of the Act, we will notify the
International Trade Commission (ITC) of the final affirmative
determination of sales at LTFV.
As Commerce's final determination is affirmative, in accordance
with section 735(b)(2) of the Act, the ITC will determine, within 45
days, whether the domestic industry in the United States is materially
injured, or threatened with material injury, by reason of imports of
cast iron soil pipe fittings from China, or sales (or the likelihood of
sales) for importation, of cast iron soil pipe fittings from China. If
the ITC determines that such injury does not exist, this proceeding
will be terminated and all securities posted will be refunded or
canceled. If the ITC determines that such injury does exist, Commerce
intends to issue an antidumping duty order directing CBP to assess,
upon further instruction by Commerce, antidumping duties on all imports
of the subject merchandise entered, or withdrawn from warehouse, for
consumption on or after the effective date of the suspension of
liquidation.
Notification Regarding Administrative Protective Orders
In the event that the ITC issues a final negative injury
determination, this notice will serve as the only reminder to parties
subject to an APO of their responsibility concerning the destruction of
proprietary information disclosed under APO in accordance with 19 CFR
351.305(a)(3). Timely written notification of the return/destruction of
APO materials or conversion to judicial protective order is hereby
requested. Failure to comply with the regulations and terms of an APO
is a violation which is subject to sanction.
This determination is issued and published pursuant to sections
735(d) and 777(i) of the Act and 19 CFR 351.210(c).
Dated: July 5, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty
Operations, performing the non-exclusive functions and duties of the
Assistant Secretary for Enforcement and Compliance.
Appendix I
Scope of the Investigation
The merchandise covered by this investigation is cast iron soil
pipe fittings, finished and unfinished, regardless of industry or
proprietary specifications, and regardless of size. Cast iron soil
pipe fittings are nonmalleable iron castings of various designs and
sizes, including, but not limited to, bends, tees, wyes, traps,
drains, and other common or special fittings, with or without side
inlets.
Cast iron soil pipe fittings are classified into two major
types--hubless and hub and spigot. Hubless cast iron soil pipe
fittings are manufactured without a hub, generally in compliance
with Cast Iron Soil Pipe Institute (CISPI) specification 301 and/or
American Society for Testing and Materials (ASTM) specification
A888. Hub and spigot pipe fittings have hubs into which the spigot
(plain end) of the pipe or fitting is inserted. Cast iron soil pipe
fittings are generally distinguished from other types of
nonmalleable cast iron fittings by the manner in which they are
connected to cast iron soil pipe and other fittings.
The subject imports are normally classified in subheading
7307.11.0045 of the Harmonized Tariff Schedule of the United States
(HTSUS): Cast fittings of nonmalleable cast iron for cast iron soil
pipe. They may also be entered under HTSUS 7324.29.0000 and
7307.92.3010. The HTSUS subheadings and specifications are provided
for convenience and customs purposes only; the written description
of the scope of this investigation is dispositive.
Appendix II
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Final Determination of Critical Circumstances
IV. China-Wide Rate
V. Separate Rates
VI. Adjustments for Countervailable Export Subsidies
VII. Changes Since the Preliminary Determination
VIII. Discussion of the Issues
General Issues
Comment 1: What Rate to Assign as Adverse Facts Available (AFA)
to Sibo and the China-Wide Entity
Comment 2: Surrogate Country Selection
Comment 3: Adjusting the Global Trade Atlas (GTA) Import Data
for Movement Expenses
Comment 4: Treatment of Certain Inputs as Materials or Overhead
Comment 5: Reintroduced Materials
Comment 6: Surrogate Value for Coated Sand
Comment 7: Calculating the Margins on a Consistent Basis
Comment 8: Calculation of Movement Expenses
Comment 9: Non-Refundable Value Added Tax (VAT)
Comment 10: Record-Keeping Deficiencies
Wor-Biz Issues
Comment 11: Surrogate Value for Asphalt Paint
Comment 12: Surrogate Value for Paint Thinner
Comment 13: Calculation of Freight Revenue
Xuanshi Issues
Comment 14: Surrogate Value for Pig Iron
Comment 15: Surrogate Values for Iron Ore, Coal, and Coke
Comment 16: Calculation of the Slag Iron By-Product Offset
Comment 17: Calculation of the Packing Material Consumption
Rates
Comment 18: Surrogate Values for Inland and Ocean Freight
IX. Recommendation
[FR Doc. 2018-14925 Filed 7-13-18; 11:15 am]
BILLING CODE 3510-DS-P