[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]


-----------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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'').
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \6\ See Issues and Decision Memorandum at Comments 5 and 6.
    \7\ See sections 776(a) and (b) of the Act.
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \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.

------------------------------------------------------------------------
                                                          Subsidy rate
                  Exporter/producer                        (percent)
------------------------------------------------------------------------
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
------------------------------------------------------------------------

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