[Federal Register Volume 81, Number 189 (Thursday, September 29, 2016)]
[Notices]
[Pages 66921-66923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23577]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-533-867]
Welded Stainless Pressure Pipe From India: Final Determination of
Sales at Less Than Fair Value
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: The Department of Commerce (``Department'') determines that
welded stainless pressure pipe (``WSPP'') from India is being, or is
likely to be, sold in the United States at less than fair value
(``LTFV''). The period of investigation (``POI'') is July 1, 2014,
through June 30, 2015. The final estimated weighted-average dumping
margins of sales at LTFV are listed below in the ``Final
Determination'' section of this notice.
DATES: Effective September 29, 2016.
FOR FURTHER INFORMATION CONTACT: James Terpstra or Alex Rosen, 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; telephone: (202) 482-
3965, or (202) 482-7814, respectively.
SUPPLEMENTARY INFORMATION:
Background
On May 10, 2016, the Department published the Preliminary
Determination of this LTFV investigation and invited parties to
comment.\1\ As provided in section 782(i) of the Tariff Act of 1930, as
amended (``the Act''), in June and July 2016, the Department verified
the sales and cost data reported by (1) Steamline Industries Limited
(``Steamline'') and (2) Sunrise Stainless Pvt. Ltd. (``Sunrise'')
(including its affiliate Sun Mark Stainless Pvt. Ltd. (``Sun Mark'')
(``collectively, ``Sunrise Group'')), the two mandatory respondents in
this investigation. In August 2016, Petitioners,\2\ Sunrise Group and
Steamline submitted case briefs and rebuttal briefs. For a complete
discussion of the events that occurred since the Preliminary
Determination, see the Issues and Decision Memorandum.\3\
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\1\ See Welded Stainless Pressure Pipe From India: Affirmative
Preliminary Determination of Sales at Less Than Fair Value and
Postponement of Final Determination, 81 FR 28824 (May 10, 2016)
(``Preliminary Determination'').
\2\ Petitioners consist of Bristol Metals, LLC, Felker Brothers
Corporation, Outokumpu Stainless Pipe, Inc., and Marcegaglia USA
Inc. (collectively, ``Petitioners'').
\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 Determination in the
Less-Than-Fair-Value Investigation of Welded Stainless Pressure Pipe
from India,'' dated concurrently with this notice (``Issues and
Decision Memorandum'').
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Scope of the Investigation
The product covered by this investigation is circular welded
austenitic stainless pressure pipe not greater than 14 inches in
outside diameter, from India. For a full description of the scope of
this investigation, see the ``Scope of the Investigation,'' in Appendix
II to this notice. The Department did not receive comments regarding
the scope of this investigation.
Final Determination of Affiliation and Collapsing
We preliminarily determined to collapse Sunrise with its affiliate
Sun Mark and to treat these two companies as a single entity.\4\ No
party raised this issue subsequent to the Preliminary Determination or
provided comment in their case or rebuttal briefs. Accordingly, we
continue to find Sunrise and Sun Mark are affiliated pursuant to
section 771(33)(F) of the Act and should be collapsed together and
treated as a single entity, pursuant to the criteria laid out in 19 CFR
351.401(f).\5\
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\4\ See Preliminary Determination and accompanying Memorandum to
Brendan Quinn, Acting Director, Office III, ``Antidumping Duty
Investigation on Welded Stainless Pressure Pipe from India:
Preliminary Affiliation and Collapsing Memorandum for Sunrise
Stainless Private Limited,'' dated May 10, 2016.
\5\ See Preliminary Determination, and accompanying Memorandum
from Christian Marsh, Deputy Assistant Secretary for Antidumping and
Countervailing Duty Operations, to Paul Piquado, Assistant Secretary
for Enforcement and Compliance, ``Decision Memorandum for the
Preliminary Determination in the Antidumping Duty Investigation of
Welded Stainless Pressure Pipe from India,'' dated May 3, 2016, at
3.
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Analysis of Comments Received
All issues raised in the case and rebuttal briefs by parties in
this investigation are addressed in the Issues and Decision Memorandum,
which is incorporated by reference and hereby adopted by this notice. A
list of the
[[Page 66922]]
issues raised is attached to this notice as Appendix I 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 (``ACCESS'').
ACCESS is available to registered users at https://access.trade.gov,
and it is available to all parties in the Central Records Unit, Room B-
8024 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/index.html. The signed and
electronic versions of the Issues and Decision Memorandum are identical
in content.
Use of Adverse Facts Available
In making this final determination, the Department relied, in part,
on facts available with regard to sales of defective or sub-prime
merchandise in the home market by Steamline.\6\ Because Steamline
failed to act to the best of its 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 accompanying Issues and Decision
Memorandum at Comment 1.
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\6\ See Issues and Decision Memorandum at Comment 1.
\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 margin calculations for both
respondents since the Preliminary Determination, including a revision
of our comparisons of normal value (``NV'') to U.S. price on a
theoretical, instead of actual, weight basis. For a discussion of all
of these changes, see the Issues and Decision Memorandum.
All-Others Rate
Section 735(c)(5)(A) of the Act provides that the all-others rate
shall be an amount equal to the weighted average of the estimated
weighted-average dumping margins established for exporters or producers
individually examined, excluding any rates that are zero, de minimis,
or determined entirely under section 776 of the Act. Because we
calculated a de minimis weighted-average dumping margin for Sunrise
Group, we have based the all-others rate on the estimated weighted-
average dumping margin calculated for Steamline, the other mandatory
respondent in this investigation.
Final Determination
The Department determines that the final estimated weighted-average
dumping margins are as follows:
------------------------------------------------------------------------
Estimated
weighted-
Exporter or producer average Cash deposit
dumping margin rate (percent)
(percent)
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Steamline Industries Ltd................ 12.66 10.17
Sunrise Stainless Pvt. Ltd. and Sun Mark 0.00 0.00
Stainless Pvt. Ltd. (collectively,
``Sunrise Group'').....................
All Others.............................. 12.66 8.35
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Disclosure
We will disclose the calculations performed to interested parties
in this proceeding within five days of the public announcement of this
final determination 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 direct
U.S. Customs and Border Protection (``CBP'') to continue to suspend
liquidation of all appropriate entries of WSPP from India, as described
in the ``Scope of the Investigation'' section, which are entered, or
withdrawn from warehouse, for consumption on or after May 10, 2016, the
date of publication in the Federal Register of the affirmative
Preliminary Determination. Because Sunrise Group, which includes
Sunrise Stainless Pvt. Ltd. and Sun Mark Stainless Pvt. Ltd., has an
estimated weighted-average final dumping margin of zero, we are
directing CBP to terminate suspension of liquidation of entries of WSPP
produced and exported by this entity. In addition, subject merchandise
produced and exported by Sunrise Group will be excluded from the
antidumping duty order, if issued.
Pursuant to 19 CFR 351.205(d), we will instruct CBP to require a
cash deposit equal to the weighted-average amount by which the NV
exceeds the export price (``EP'') or constructed export price
(``CEP''), as indicated in the chart above. Consistent with our
longstanding practice, where the product under investigation is also
subject to a concurrent countervailing duty investigation, we instruct
CBP to require a cash deposit equal to the amount by which the NV
exceeds the U.S. price, less the amount of the countervailing duty
determined to constitute any export subsidies. Therefore, in the event
that a countervailing duty order is issued and suspension of
liquidation is resumed in the companion countervailing duty
investigation on WSPP from India, the Department will instruct CBP to
require cash deposits adjusted by the amount of export subsidies, as
appropriate. These adjustments are reflected in the final column of the
rate chart, above.\8\ Until such suspension of liquidation is resumed
in the companion countervailing duty investigation, and so long as
suspension of liquidation continues under this antidumping duty
investigation, the cash deposit rates for this antidumping duty
investigation will be the rates identified in the weighted-average
margin column in the rate chart, above.
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\8\ See Memorandum to the File, ``Calculation Memorandum for
Export Subsidy Offset to Cash Deposit Rates,'' dated concurrently
with this notice.
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International Trade Commission (``ITC'') Notification
In accordance with section 735(d) of the Act, we will notify the
ITC of the final affirmative determination of sales at LTFV. Because
the final determination in this proceeding is affirmative, in part,
section 735(b)(2) of the Act requires that the ITC make its final
determination whether the domestic industry in the United States is
materially injured, or threatened with material injury, by reason of
imports of WSPP from India no later than 45 days
[[Page 66923]]
after our final determination. If the ITC determines that such injury
does exist, the Department will issue an antidumping duty order
directing CBP to assess, upon further instruction by the Department,
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 (``APO'')
This notice serves as a reminder to parties subject to 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 the terms of an APO is a violation
subject to sanction.
Notice to Interested Parties
This determination is issued and published in accordance with
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210.
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. Changes Since the Preliminary Determination
V. List of Comments
VI. Discussion of the Issues
Comment 1: Whether Certain Home Market Sales Constitute Sub-
Prime Merchandise
Comment 2: The Use of Theoretical or Actual Weight
Comment 3: Calculation of Direct Material (Coil) Cost
Comment 4: Steamline's Home Market Sales to an Affiliated Party
Comment 5: Steamline's Data Error for One U.S. Sale
Comment 6: Steamline's Inventory Carrying Costs (``ICC'')
Comment 7: Steamline's Packing Material Usage Rate
Comment 8: Steamline's Minor Corrections to Response Presented
at Verification
Comment 9: Steamline's Arm's-Length Prices From Affiliated
Parties for Direct Materials
Comment 10: Steamline's Allocation of Conversion Costs
Comment 11: Steamline's Director's Remuneration
Comment 12: Steamline's Cost Reconciliation and Scrap
Comment 13: Conversion of Sunrise's Warranty Expenses
Comment 14: Treatment of Indirect Selling Expenses for Sunrise's
CEP Sales
Comment 15: Use of Net Quantity in the Calculation of Sunrise's
U.S. Sales
VII. 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
domestic 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. 2016-23577 Filed 9-28-16; 8:45 am]
BILLING CODE 3510-DS-P