[Federal Register Volume 81, Number 90 (Tuesday, May 10, 2016)]
[Notices]
[Pages 28824-28826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11034]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-86]


Welded Stainless Pressure Pipe From India: Affirmative 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination

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

SUMMARY: The Department of Commerce (``Department'') preliminarily 
determines that Welded Stainless Pressure Pipe from India (``WSPP'') is 
being, or is likely to be, sold in the United States at less than fair 
value (``LTFV''), as provided in section 733(b) of the Tariff Act of 
1930, as amended (``the Act''). The period of investigation (``POI'') 
is July 1, 2014, through June 30, 2015. The estimated weighted-average 
dumping margins of sales at LTFV are shown in the ``Preliminary 
Determination'' section of this notice. Interested parties are invited 
to comment on this preliminary determination.

DATES: Effective Date: May 10, 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

    The Department published the notice of initiation of this 
investigation on October 27, 2015.\1\ For a complete description of the 
events that followed the initiation of this investigation, see the 
memorandum that is dated concurrently with this determination and 
hereby adopted by this notice.\2\ 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 found at http://enforcement.trade.gov/frn/. The signed Preliminary Decision Memorandum 
and the electronic version of the Preliminary Decision Memorandum are 
identical in content.
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    \1\ See Welded Stainless Pressure Pipe from India: Initiation of 
Antidumping Duty Investigation, 80 FR 65696 (October 27, 2015) 
(``Initiation Notice'').
    \2\ See 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'' (``Preliminary Decision Memorandum''), dated 
concurrently with this notice.
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    As explained in the memorandum from the Acting Assistant Secretary 
for Enforcement and Compliance, the Department exercised its discretion 
to toll deadlines as a result of the closure of the Federal Government 
for Snowstorm Jonas.\3\ All deadlines in this segment of the proceeding 
have been extended by four business days. Furthermore, on March 3, 
2016, based upon a request from Petitioners, the Department postponed 
the time period for the preliminary determination of this investigation 
by 40 days, to May 3, 2016, in accordance with section 733(c)(1)(B) of 
the Act and 19 CFR 351.205(f)(1).\4\
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    \3\ See Memorandum to the file from Ron Lorentzen, Acting 
Assistant Secretary for Enforcement and Compliance, ``Tolling of 
Administrative Deadlines as a Result of the Government Closure 
during Snowstorm `Jonas,' '' dated January 27, 2016.
    \4\ See Welded Stainless Pressure Pipe from India: Postponement 
of Preliminary Determination of Antidumping Duty Investigation, 81 
FR 11179 (March 3, 2016).
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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 
I.

Scope Comments

    In accordance with the preamble to the Department's regulations,\5\ 
the Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., ``scope'').\6\ No party 
commented on the scope of the investigation as it appeared in the 
Initiation Notice, and the scope language is unchanged for this 
preliminary determination.
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    \5\ See Antidumping Duties; Countervailing Duties, 62 FR 27296, 
27323 (May 19, 1997).
    \6\ See Initiation Notice, 80 FR at 65696.
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Methodology

    The Department is conducting this investigation in accordance with 
section 731 of the Act. For the two mandatory respondents Steamline 
Industries Ltd (``Steamline'') and Sunrise Stainless Pvt. Ltd 
(``Sunrise''), we calculated export price (EP) and constructed export 
price (``CEP'') in accordance with section 772 of the Act, and normal 
value (``NV'') in accordance with section 773 of the Act. For a full 
description of the methodology underlying our conclusions, see the 
Preliminary Decision Memorandum.

All-Others Rate

    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 any zero or de 
minimis margins, and any margins determined entirely under section 776 
of the Act. Because we calculated a de minimis weighted-average dumping 
margin for Sunrise Stainless Pvt. Ltd. (``Sunrise''), we based the all-
others rate on the margin calculated for Steamline Industries Ltd. 
(``Steamline''), the other mandatory respondent in this investigation.

Preliminary Determination

    The Department preliminarily determines that the following 
estimated weighted-average dumping margins exist:

[[Page 28825]]



------------------------------------------------------------------------
                                                               Weighted-
                                                                average
                      Exporter/producer                         margin
                                                               (percent)
------------------------------------------------------------------------
Steamline Industries Ltd....................................       18.90
Sunrise Stainless Pvt. Ltd. and Sun Mark Stainless Pvt. Ltd.       *1.91
 (collectively, ``Sunrise'') \7\............................
All Others..................................................       18.90
------------------------------------------------------------------------
* (de minimis)

Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, we will direct 
U.S. Customs and Border Protection (CBP) to suspend liquidation of all 
entries of WSPP from India, with the exception of exports from Sunrise, 
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. 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 CEP, as indicated in 
the chart above \8\ adjusted where appropriate for export subsidies, as 
follows: the rate for Steamline, when adjusted for export subsidies, is 
16.90 percent; the rate for all others producers or exporters, when 
adjusted for export subsidies, is also 16.90 percent. These suspension 
of liquidation instructions will remain in effect until further notice.
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    \7\ We have preliminarily determined to collapse Sunrise with 
its affiliate Sun Mark Stainless Pvt, Ltd. (collectively, 
``Sunrise''). See 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 
concurrently with this notice.
    \8\ 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).
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Disclosure and Public Comment

    We will disclose the calculations performed to interested parties 
in this proceeding within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b). Interested parties are 
invited to comment on this preliminary determination. 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 final verification report is issued in this proceeding, and 
rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than five days after the deadline date for case 
briefs.\9\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in this proceeding 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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    \9\ See 19 CFR 351.309.
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing must submit a written request to the Assistant 
Secretary for Enforcement and Compliance, U.S. Department of Commerce. 
All documents must be filed electronically using ACCESS. An 
electronically-filed request must be received successfully in its 
entirety by ACCESS by 5:00 p.m. Eastern Time, within 30 days after the 
date of publication of this notice.\10\ Requests should contain the 
party's name, address, and telephone number, the number of 
participants, and a list of the issues to be discussed. If a request 
for a hearing is made, the Department intends to hold the hearing at 
the U.S. Department of Commerce, 14th Street and 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.
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    \10\ See 19 CFR 351.310(c).
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Verification

    As provided in section 782(i) of the Act, we intend to verify 
information relied upon in making our final determination.

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 
Petitioners. 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.
    On April 28, 2016, pursuant to 19 CFR 351.210(b) and (e), Sunrise 
requested that, contingent upon an affirmative preliminary 
determination of sales at LTFV, the Department postpone the final 
determination and that provisional measures be extended to a period not 
to exceed six months.\11\
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    \11\ See Letter to the Secretary of Commerce from Sunrise 
``Extension Request for Final Determination'' (April 28, 2016).
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    In accordance with section 735(a)(2)(A) of the Act and 19 CFR 
351.210(b)(2)(ii), because (1) our preliminary determination is 
affirmative; (2) the requesting exporter accounts for a significant 
proportion of exports of the subject merchandise; and (3) no compelling 
reasons for denial exist, we are postponing the final determination and 
extending the provisional measures from a four-month period to a period 
not greater than six months. Accordingly, we will make our final 
determination no later than 135 days after the date of publication of 
this preliminary determination, pursuant to section 735(a)(2) of the 
Act.\12\
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    \12\ See also 19 CFR 351.210(e).
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International Trade Commission (``ITC'') Notification

    In accordance with section 733(f) of the Act, we will notify the 
ITC of our preliminary affirmative determination of sales at LTFV. 
Because the preliminary determination in this proceeding is 
affirmative, 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 before the later of 120 days after 
the date of this preliminary determination or 45 days after our final 
determination.
    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: May 3, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

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.

[[Page 28826]]

    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.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Affiliation and Collapsing
V. Postponement of Final Determination and Extension of Provisional 
Measures
VI. Scope of the Investigation
VII. Discussion of Methodology
    A. Determination of Comparison Method
    B. Results of the Differential Pricing Analysis
VIII. Date of Sale
IX. Product Comparisons
X. Export Price and Constructed Export Price
XI. Normal Value
    A. Comparison Market Viability
    B. Affiliated-Party Transactions and Arm's-Length Test
    C. Level of Trade
    D. Cost of Production Analysis
    1. Calculation of Cost of Production
    2. Test of Comparison Market Sale Prices
    3. Results of the COP Test
    E. Calculation of NV Based on Comparison Market Prices
XII. Currency Conversion
XIII. Adjustment to Cash Deposit Rates
XIV. U.S. ITC Notification
XV. Disclosure and Public Comment
XVI. Verification
XVII. Conclusion

[FR Doc. 2016-11034 Filed 5-9-16; 8:45 am]
 BILLING CODE 3510-DS-P