[Federal Register Volume 81, Number 229 (Tuesday, November 29, 2016)]
[Notices]
[Pages 85928-85930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28704]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-872]


Finished Carbon Steel Flanges From India: Preliminary Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (the Department) preliminarily 
determines that countervailable subsidies are being provided to 
producers and exporters of finished carbon steel flanges (steel 
flanges) from India. The period of investigation (POI) is April 1, 
2015, through March 31, 2016. Interested parties are invited to comment 
on this preliminary determination.

DATES: Effective November 29, 2016.

FOR FURTHER INFORMATION CONTACT: Emily Maloof or Davina Friedmann, AD/
CVD Operations, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 14th Street and 
Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-
5649 or (202) 482-0698, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On July 28, 2016, the Department published the notice of initiation 
of this investigation.\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 Finished Carbon Steel Flanges From India: Initiation of 
Countervailing Duty Investigation, 81 FR 49625 (July 28, 2016) 
(Initiation Notice).
    \2\ See Memorandum to Paul Piquado, ``Decision Memorandum for 
the Preliminary Affirmative Determination: Countervailing Duty 
Investigation of Finished Carbon Steel Flanges from India,'' dated 
November 21, 2016 (Preliminary Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is steel flanges from 
India. For a complete description of the scope of the investigation, 
see Appendix I.

Scope Comments

    We received no comments from interested parties regarding the scope 
of the investigation as it appeared in the Initiation Notice.

Methodology

    The Department is conducting this countervailing duty (CVD 
investigation in accordance with section 701 of the Tariff Act of 1930 
(the Act). For each of the subsidy programs found countervailable, we 
preliminarily 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.\3\ For a full description 
of the methodology underlying our preliminary conclusions, see the 
Preliminary Decision Memorandum.
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    \3\ 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.
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Preliminary Determination and Suspension of Liquidation

    In accordance with section 703(d)(1)(A)(i) of the Act, we 
calculated a CVD rate for each individually-investigated producer/
exporter of the subject merchandise. We preliminarily determine that 
countervailable subsidies are being provided with respect to the 
manufacture, production, or exportation of the subject merchandise. For 
a full description of the programs which have preliminarily determined 
to be countervailable, as well as those not used during the POI, see 
the Preliminary Decision Memorandum. In accordance with sections 703(d) 
and 705(c)(5)(A) of the Act, for companies not individually examined, 
we apply an ``all-others'' rate, which is normally calculated by 
weight-averaging the individual company subsidy rates of each of the 
companies investigated.
    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. Neither 
of the mandatory respondents' rates in this preliminary determination 
were zero or de minimis or based entirely on facts otherwise available. 
Notwithstanding the language of section 705(c)(5)(A)(i) of the Act, we 
have not calculated the ``all-others'' rate by weight-averaging the 
rates of the two individually investigated respondents, because doing 
so risks disclosure of proprietary information. Instead, we have 
calculated the all-others rate using a simple average of the final 
rates for the two mandatory company respondents.\4\
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    \4\ See Preliminary Decision Memorandum at ``CALCULATION OF THE 
ALL-OTHERS RATE'' (for further explanation of the business 
propretiary information concerns); see also Memorandum to the File, 
``Countervailing Duty Investigation of Finished Carbon Steel 
Flanges: Preliminary Determination Margin Calculation for All-
Others,'' dated concurrently with this memorandum.

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[[Page 85929]]

    We preliminarily determine the countervailable subsidy rates to be:

------------------------------------------------------------------------
                                                          Subsidy rate
                       Company                             (percent)
------------------------------------------------------------------------
Norma (India) Limited, USK Exports Private Limited,                 2.76
 UMA Shanker Khandelwal & Co., and Bansidhar
 Chiranjilal.........................................
R.N. Gupta & Company Limited.........................               3.66
All-Others...........................................               3.21
------------------------------------------------------------------------

    In accordance with sections 703(d)(1)(B) and (2) of the Act, we are 
directing U.S. Customs and Border Protection (CBP) to suspend 
liquidation of all entries of steel flanges from India that are 
entered, or withdrawn from warehouse, for consumption on or after the 
date of the publication of this notice in the Federal Register, and to 
require a cash deposit for such entries of merchandise in the amounts 
indicated above.

Verification

    As provided in section 782(i)(1) of the Act, we intend to verify 
the information submitted by the respondents prior to making our final 
determination.

U.S. International Trade Commission

    In accordance with section 703(f) of the Act, we will notify the 
U.S. International Trade Commission (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.
    In accordance with section 705(b)(2) of the Act, if our final 
determination is affirmative, the ITC will make its final determination 
within 45 days after the Department makes its final determination.

Disclosure and Public Comment

    The Department intends to disclose calculations performed for this 
preliminary determination to the parties within five days of the date 
of public announcement of this determination in accordance with 19 CFR 
351.224(b). 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.\5\ A table of contents, list of 
authorities used, and an executive summary of issues should accompany 
any briefs submitted to the Department, pursuant to 19 CFR 
351.309(c)(2) and (d)(2). This summary should be limited to five pages 
total, including footnotes.
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    \5\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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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, 
filed electronically using ACCESS. An electronically-filed request must 
be received successfully, and in its entirety, by ACCESS by 5:00 p.m. 
Eastern Time, within 30 days after the date of publication of this 
notice. 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 date, 
time, and specific location to be determined. Parties will be notified 
of the date, time, and location of any hearing. Parties should confirm 
by telephone the date, time, and location of the hearing two days 
before the scheduled date.
    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: November 23, 2016.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The scope of this investigation covers finished carbon steel 
flanges. Finished carbon steel flanges differ from unfinished carbon 
steel flanges (also known as carbon steel flange forgings) in that 
they have undergone further processing after forging, including, but 
not limited to, beveling, bore threading, center or step boring, 
face machining, taper boring, machining ends or surfaces, drilling 
bolt holes, and/or deburring or shot blasting. Any one of these 
post-forging processes suffices to render the forging into a 
finished carbon steel flange for purposes of this investigation. 
However, mere heat treatment of a carbon steel flange forging 
(without any other further processing after forging) does not render 
the forging into a finished carbon steel flange for purposes of this 
investigation. While these finished carbon steel flanges are 
generally manufactured to specification ASME 816.5 or ASME 816.47 
series A or series 8, the scope is not limited to flanges produced 
under those specifications. All types of finished carbon steel 
flanges are included in the scope regardless of pipe size (which may 
or may not be expressed in inches of nominal pipe size), pressure 
class (usually, but not necessarily, expressed in pounds of 
pressure, e.g., 150, 300, 400, 600, 900, 1500, 2500, etc.), type of 
face (e.g., flat face, full face, raised face, etc.), configuration 
(e.g., weld neck, slip on, socket weld, lap joint, threaded, etc.), 
wall thickness (usually, but not necessarily, expressed in inches), 
normalization, or whether or not heat treated. These carbon steel 
flanges either meet or exceed the requirements of the ASTM A105, 
ASTM A694, ASTM A181, ASTM A350 and ASTM A707 standards (or 
comparable foreign specifications). The scope includes any flanges 
produced to the above-referenced ASTM standards as currently stated 
or as may be amended. The term ``carbon steel'' under this scope is 
steel in which: (a) Iron predominates, by weight, over each of the 
other contained elements: (b) The carbon content is 2 percent or 
less, by weight; and (c) none of the elements listed below exceeds 
the quantity, by weight, as indicated:
    (i) 0.87 percent of aluminum;
    (ii) 0.0105 percent of boron;
    (iii) 10.10 percent of chromium;
    (iv) 1.55 percent of columbium;
    (v) 3.10 percent of copper;
    (vi) 0.38 percent of lead;
    (vii) 3.04 percent of manganese;
    (viii) 2.05 percent of molybdenum;
    (ix) 20.15 percent of nickel;
    (x) 1.55 percent of niobium;
    (xi) 0.20 percent of nitrogen;
    (xii) 0.21 percent of phosphorus;
    (xiii) 3.10 percent of silicon;
    (xiv) 0.21 percent of sulfur;
    (xv) 1.05 percent of titanium;
    (xvi) 4.06 percent of tungsten;
    (xvii) 0.53 percent of vanadium; or
    (xviii) 0.015 percent of zirconium.
    Finished carbon steel flanges are currently classified under 
subheadings 7307.91.5010 and 7307.91.5050 of the Harmonized Tariff 
Schedule of the United States (HTSUS). They may also be entered 
under HTSUS subheadings 7307.91.5030 and 7307.91.5070. The HTSUS 
subheadings are provided for

[[Page 85930]]

convenience and customs purposes; the written description of the 
scope is dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Alignment
VI. Injury Test
VII. Subsidies Valuation
VIII. Loan Benchmark and Interest Rates
IX. Use of Facts Otherwise Available
X. Analysis of Programs
XI. Calculation of All-Others Rate
XII. International Trade Commission
XIII. Disclosure and Public Comment
XIV. Conclusion

[FR Doc. 2016-28704 Filed 11-28-16; 8:45 am]
 BILLING CODE 3510-DS-P