[Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)]
[Notices]
[Pages 66925-66927]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23575]
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DEPARTMENT OF COMMERCE
International Trade Administration
[C-533-868]
Countervailing Duty Investigation of Welded Stainless Pressure
Pipe From India: Final Affirmative Determination
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') determines that
countervailable subsidies are being provided to producers and exporters
of welded stainless pressure pipe from India. For information on the
subsidy rates, see the ``Final Determination'' section of this notice.
The period of investigation is January 1, 2014, through December 31,
2014.
DATES: Effective September 29, 2016.
FOR FURTHER INFORMATION CONTACT: Amanda Mallott at 202-482-6430, AD/CVD
Operations, Office III, Enforcement and Compliance, International Trade
Administration, U.S. Department of Commerce, 14th Street and
Constitution Avenue NW., Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
The Department published the Preliminary Determination on March 11,
2016,\1\ and issued a Post-Preliminary Memorandum on August 23,
2016.\2\ A summary of the events that occurred since the Preliminary
Determination, and a full discussion of the issues raised by parties
for this final determination, may be found in the Issues and Decision
Memorandum.\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
[[Page 66926]]
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 versions of the Issues and Decision Memorandum are
identical in content.
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\1\ See Countervailing Duty Investigation of Welded Stainless
Pressure Pipe from India: Preliminary Affirmative Determination and
Alignment of Final Determination With Final Antidumping Duty
Determination, 81 FR 12871 (March 11, 2016) (``Preliminary
Determination'').
\2\ See Memorandum from Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations, to
Paul Piquado, Assistant Secretary for Enforcement and Compliance,
``Post-Preliminary Analysis in the Countervailing Duty Investigation
of Welded Stainless Pressure Pipe from India,'' dated August 23,
2016 (``Post-Preliminary Memorandum'').
\3\ See Memorandum from Christian Marsh, Deputy Assistant
Secretary for Antidumping and Countervailing Duty Operations, to
Paul Piquado, Assistant Secretary for Enforcement and Compliance,
``Issues and Decision Memorandum for the Final Affirmative
Determination in the Countervailing Duty Investigation of Welded
Stainless Pressure Pipe from India,'' dated concurrently with, and
hereby incorporated by reference and adopted by, this notice
(``Issues and Decision Memorandum'').
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Scope of the Investigation
The merchandise covered by this investigation is circular welded
austenitic stainless pressure pipe not greater than 14 inches in
outside diameter, from India. For a complete description of the scope
of this investigation, see Appendix II. The Department did not receive
comments regarding the scope of this investigation.
Methodology
The Department is conducting this countervailing duty (``CVD'')
investigation in accordance with section 701 of the Tariff Act of 1930,
as amended (``the Act''). For each of the subsidy programs found
countervailable, we determine 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.\4\ For a full
description of the methodology underlying our conclusions, see the
Issues and Decision Memorandum.\5\
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\4\ 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.
\5\ See also Preliminary Determination and accompanying
Preliminary Decision Memorandum; and Post-Preliminary Memorandum.
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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 I.
Use of Adverse Facts Available
In making this final determination, the Department relied, in part,
on facts available with regard to specificity and financial
contribution of the electricity duty rebate provided to Steamline
Industries Limited (``Steamline''), as well as an adjustment to
Steamline's reported total sales value and total export sales value.\6\
Because neither Steamline nor the Government of India acted to the best
of their ability to respond to the Department's requests for
information, we drew an adverse inference, where appropriate, in
selecting from among the facts otherwise available.\7\ 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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\6\ See Issues and Decision Memorandum at Comments 5 and 6.
\7\ See sections 776(a) and (b) of the Act.
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Changes Since the Preliminary Determination
Based on our review and analysis of the comments received from
parties, we made certain changes to the subsidy program rate
calculations since the Preliminary Determination. For a discussion of
these changes, see the Issues and Decision Memorandum.
Final Determination
In accordance with section 705(c)(1)(B)(i)(I) of the Act, we
calculated an individual rate for each producer/exporter of the subject
merchandise individually investigated. In accordance with section
705(c)(5)(A) of the Act, for companies not individually examined, we
apply an ``all-others'' rate, which is normally calculated by weighting
the subsidy rates of the companies that the Department individually
investigated by those companies' exports of the subject merchandise to
the United States. Under section 705(c)(5)(A)(i) of the Act, the all-
others rate should exclude zero and de minimis rates or any rates based
entirely on facts otherwise available pursuant to section 776 of the
Act. Accordingly, in these final results, we have calculated the ``all-
others'' rate by weight-averaging the calculated subsidy rates of the
two individually investigated respondents, using the respondent's
publicly-ranged sales data for exports of subject merchandise to the
United States.\8\
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\8\ See Memorandum to the File, ``Countervailing Duty
Investigation of Welded Stainless Pressure Pipe from India: Final
Determination Margin Calculation for All-Others,'' dated
concurrently with this memorandum.
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Subsidy rate
Exporter/producer (percent)
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Steamline Industries Limited......................... 3.13
Sunrise Stainless Private Limited, Sun Mark Stainless 6.22
Pvt. Ltd., and Shah Foils Ltd. (collectively,
``Sunrise Group'')..................................
All-Others........................................... 4.65
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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 public announcement of our final determination, 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) of the Act, we instructed U.S. Customs and Border
Protection (``CBP'') to suspend liquidation of entries of merchandise
under consideration from India that were entered or withdrawn from
warehouse, for consumption, on or after March 11, 2016, which is the
publication date in the Federal Register of the Preliminary
Determination. 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 9, 2016 but to continue the suspension of
liquidation of all entries of subject merchandise from March 11, 2016
through July 8, 2016.
If the U.S. International Trade Commission (``ITC'') issues a final
affirmative injury determination, we will issue a CVD order and will
reinstate the suspension of liquidation under section 706(a) of the Act
and will require a cash deposit of estimated CVDs 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 as a result of the suspension of liquidation will be refunded
or canceled.
[[Page 66927]]
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 relating 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, without the written consent
of the Assistant Secretary for Enforcement and Compliance.
Notification Regarding Administrative Protective Orders
In the event the ITC issues a final negative injury determination,
this notice will serve as the only reminder to parties subject to an
administrative protective order (``APO'') of their responsibility
concerning the disposition of proprietary information disclosed under
APO in accordance with 19 CFR 351.305(a)(3). 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 violation
subject to sanction.
This determination is issued and published pursuant to sections
705(d) and 777(i) of the Act.
Dated: September 22, 2016.
Paul Piquado,
Assistant Secretary, for Enforcement and Compliance.
Appendix I
List of Topics Discussed in the Issues and Decision Memorandum
I. Summary
II. Background
III. Scope of the Investigation
IV. List of Issues
V. Subsidies Valuation
VI. Use of Facts Otherwise Available and Adverse Inferences
VII. Analysis of Programs
VIII. Calculation of the All-Others Rate
IX. Analysis of Comments
Comment 1: Whether the Advance Authorization Program (``AAP'')
Provides a Countervailable Subsidy
Comment 2: Whether the Duty Drawback (``DDB'') Program Provides
a Countervailable Subsidy
Comment 3: Whether the Export Promotion of Capital Goods Scheme
(``EPCGS'') Provides a Countervailable Subsidy and Whether the
Department Should Use a Different Denominator for the Benefit
Calculation
Comment 4: Whether the Department Should Investigate and
Countervail Marketable Certificates Purchased From Third Parties
Comment 5: Whether Steamline's Total Sales and Total Export
Sales Figures Are Overstated
Comment 6: Whether the Electricity Duty Exemption Provided by
the Uttar Gujarat Vij Company Limited Is a Countervailable Subsidy
Program
Comment 7: Whether the Department Should Countervail
Preferential Water Rates Provided by the Gujarat Industrial
Development Corporation (``GIDC'') Under the GIDC Water Supply
Regulation of 1991
Comment 8: Whether the Provision of Land for Less Than Adequate
Remuneration (``LTAR'') Provides a Countervailable Subsidy
Recommendation
Appendix II
Scope of the Investigation
The merchandise covered by this investigation is circular welded
austenitic stainless pressure pipe not greater than 14 inches in
outside diameter. References to size are in nominal inches and
include all products within tolerances allowed by pipe
specifications. This merchandise includes, but is not limited to,
the American Society for Testing and Materials (``ASTM'') A-312 or
ASTM A-778 specifications, or comparable domestic or foreign
specifications. ASTM A-358 products are only included when they are
produced to meet ASTM A-312 or ASTM A-778 specifications, or
comparable domestic or foreign specifications.
Excluded from the scope of the investigation are: (1) Welded
stainless mechanical tubing, meeting ASTM A-554 or comparable
omestic or foreign specifications; (2) boiler, heat exchanger,
superheater, refining furnace, feedwater heater, and condenser
tubing, meeting ASTM A-249, ASTM A-688 or comparable domestic or
foreign specifications; and (3) specialized tubing, meeting ASTM A-
269, ASTM A-270 or comparable domestic or foreign specifications.
The subject imports are normally classified in subheadings
7306.40.5005, 7306.40.5040, 7306.40.5062, 7306.40.5064, and
7306.40.5085 of the Harmonized Tariff Schedule of the United States
(``HTSUS''). They may also enter under HTSUS subheadings
7306.40.1010, 7306.40.1015, 7306.40.5042, 7306.40.5044,
7306.40.5080, and 7306.40.5090. The HTSUS subheadings are provided
for convenience and customs purposes only; the written description
of the scope of this investigation is dispositive.
[FR Doc. 2016-23575 Filed 9-28-16; 8:45 am]
BILLING CODE 3510-DS-P