[Federal Register Volume 83, Number 15 (Tuesday, January 23, 2018)]
[Notices]
[Pages 3118-3120]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01146]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-878]


Stainless Steel Flanges From India: Preliminary Affirmative 
Countervailing Duty Determination, Preliminary Affirmative and 
Alignment of Final Determination With Final Antidumping Duty 
Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of stainless steel flanges from India. The period of 
investigation is January 1, 2016, through December 31, 2016.

DATES: Applicable January 23, 2018.

FOR FURTHER INFORMATION CONTACT: Ryan Mullen or Chelsey Simonovich, AD/
CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-5260 or (202) 
482-2000, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on September 
11, 2017.\1\ On October 27, 2017, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
January 16, 2018.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics discussed 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 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 Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Stainless Steel Flanges from India and the People's 
Republic of China: Initiation of Countervailing Duty Investigations, 
82 FR 42654 (September 11, 2017) (Initiation Notice).
    \2\ See Stainless Steel Flanges from India and the People's 
Republic of China: Postponement of Preliminary Determination of 
Countervailing Duty Investigations, 82 FR 49786 (October 27, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Stainless 
Steel Flanges from India,'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Investigation

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

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e. , scope).\5\ No interested 
party commented on the scope of the investigation as it appeared in the 
Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines 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.\6\
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    \6\ 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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    In making these findings, we relied, in part, on facts available 
and, because it finds that one or more respondents did not act to the 
best of their ability to respond to Commerce's requests for 
information, it drew an adverse inference where appropriate in 
selecting from among the facts otherwise available.\7\ For further 
information, see ``Use of Facts Otherwise Available and Adverse 
Inferences'' in the Preliminary Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Preliminary Affirmative Determination of Critical Circumstances

    In accordance with section 703(e)(1) of the Act, Commerce 
preliminarily determines that critical circumstances exist with respect 
to imports of stainless steel flanges from India for Bebitz

[[Page 3119]]

Flanges Works, Echjay Forgings Private Limited, and all other exporters 
or producers not individually examined. For a full description of the 
methodology and results of Commerce's analysis, see the Preliminary 
Decision Memorandum.

Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of stainless steel flanges from India based on 
a request made by the petitioners.\8\ Consequently, the final CVD 
determination will be issued on the same date as the final AD 
determination, which is currently scheduled to be issued no later than 
May 28, 2018, unless postponed.
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    \8\ See Letter to the Secretary from the Petitioners, re: 
Petitioners''' Request to Align the Countervailing Duty Final 
Determination with the Antidumping Duty Final Determination, dated 
December 18, 2017.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act. In this investigation, Commerce preliminarily assigned 
a rate based entirely on facts available to Bebitz Flanges Works. 
Therefore, the only rate that is not zero, de minimis or based entirely 
on facts otherwise available is the rate calculated for Echjay Forgings 
Private Limited. Consequently, the rate calculated for Echjay Forgings 
Private Limited is also assigned as the rate for all-other producers 
and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Bebitz Flanges Works \9\................................          239.61
Echjay Forgings Private Limited \10\....................            5.00
All-Others..............................................            5.00
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise 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. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.
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    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Bebitz Flanges Works: Viraj Profiles Limited.
    \10\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Echjay Forgings Private Limited: Echjay Forging Industries Private 
Limited.
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    Section 703(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. Commerce preliminarily 
finds that critical circumstances exist for imports of subject 
merchandise produced and/or exported by Bebitz Flanges Works, Echjay 
Forgings Private Limited, and all-other producers and exporters. In 
accordance with section 703(e)(2)(A) of the Act, the suspension of 
liquidation shall apply to unliquidated entries of merchandise from the 
exporters/producers identified in this paragraph that were entered, or 
withdrawn from warehouse, for consumption on or after the date which is 
90 days before the publication of this notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of its public announcement, or if there is no public 
announcement, within five days of the date of this notice in accordance 
with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    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 last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\11\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
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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    \11\ 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, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce 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, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 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.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).


[[Page 3120]]


    Dated: January 16, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The products covered by this investigation are certain forged 
stainless steel flanges, whether unfinished, semi-finished, or 
finished (certain forged stainless steel flanges). Certain forged 
stainless steel flanges are generally manufactured to, but not 
limited to, the material specification of ASTM/ASME A/SA182 or 
comparable domestic or foreign specifications. Certain forged 
stainless steel flanges are made in various grades such as, but not 
limited to, 304, 304L, 316, and 316L (or combinations thereof). The 
term ``stainless steel'' used in this scope refers to an alloy steel 
containing, by actual weight, 1.2 percent or less of carbon and 10.5 
percent or more of chromium, with or without other elements.
    Unfinished stainless steel flanges possess the approximate shape 
of finished stainless steel flanges and have not yet been machined 
to final specification after the initial forging or like operations. 
These machining processes may include, but are not limited to, 
boring, facing, spot facing, drilling, tapering, threading, 
beveling, heating, or compressing. Semi-finished stainless steel 
flanges are unfinished stainless steel flanges that have undergone 
some machining processes.
    The scope includes six general types of flanges. They are: (1) 
Weld neck, generally used in butt-weld line connection; (2) 
threaded, generally used for threaded line connections; (3) slip-on, 
generally used to slide over pipe; (4) lap joint, generally used 
with stub-ends/butt-weld line connections; (5) socket weld, 
generally used to fit pipe into a machine recession; and (6) blind, 
generally used to seal off a line. The sizes and descriptions of the 
flanges within the scope include all pressure classes of ASME B16.5 
and range from one-half inch to twenty-four inches nominal pipe 
size. Specifically excluded from the scope of this investigation are 
cast stainless steel flanges. Cast stainless steel flanges generally 
are manufactured to specification ASTM A351.
    The country of origin for certain forged stainless steel 
flanges, whether unfinished, semi-finished, or finished is the 
country where the flange was forged. Subject merchandise includes 
stainless steel flanges as defined above that have been further 
processed in a third country. The processing includes, but is not 
limited to, boring, facing, spot facing, drilling, tapering, 
threading, beveling, heating, or compressing, and/or any other 
processing that would not otherwise remove the merchandise from the 
scope of the investigation if performed in the country of 
manufacture of the stainless steel flanges.
    Merchandise subject to the investigation is typically imported 
under headings 7307.21.1000 and 7307.21.5000 of the Harmonized 
Tariff Schedule of the United States (HTS). While HTS subheadings 
and ASTM specifications are provided for 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. Alignment
IV. Scope Comments
V. Scope of the Investigation
VI. Injury Test
VII. Preliminary Determination of Critical Circumstances
VIII. Subsidies Valuation
IX. Benchmarks and Discount Rates
X. Use of Facts Otherwise Available and Adverse Inferences
XI. Analysis of Programs
XII. Calculation of the All-Others Rate
XIII. ITC Notification
XIV. Disclosure and Public Comment
XV. Verification
XVI. Conclusion

 [FR Doc. 2018-01146 Filed 1-22-18; 8:45 am]
 BILLING CODE P