[Federal Register Volume 83, Number 34 (Tuesday, February 20, 2018)]
[Notices]
[Pages 7145-7148]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03404]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-062]


Cast Iron Soil Pipe Fittings From the People's Republic of China: 
Preliminary Affirmative Determination of Sales at Less Than Fair Value, 
Preliminary Affirmative Determination of Critical Circumstances, in 
Part, Postponement of Final Determination and Extension of Provisional 
Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that cast iron soil pipe fittings from the People's Republic of China 
(China) were sold in the United States at less than fair value (LTFV) 
during the period of investigation (POI), January 1, 2017, through June 
30, 2017.

DATES: Applicable February 20, 2018.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin or Michael Bowen, AD/
CVD Operations, Office VIII, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-6478 or (202) 
482-0768, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on August 8, 
2017.\1\ On November 27, 2017, Commerce postponed the preliminary 
determination of this investigation.\2\ Commerce exercised its 
discretion to toll all deadlines affected by the closure of the Federal 
Government from January 20 through 22, 2018. If the new deadline falls 
on a non-business day, in accordance with Commerce's practice, the 
deadline will become the next business day. The revised deadline for 
the preliminary determination of this investigation is now February 12, 
2018.\3\
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    \1\ See Cast Iron Soil Pipe Fittings from the People's Republic 
of China: Initiation of Less-Than-Fair Value Investigation, 82 FR 
37053 (August 8, 2017) (Initiation Notice).
    \2\ See Cast Iron Soil Pipe Fittings from People's Republic of 
China: Postponement of Preliminary Determination in the Less-Than-
Fair-Value Investigation, 82 FR 55989 (November 27, 2017).
    \3\ See Memorandum for the Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days.
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    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\4\ 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 accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary 
Decision Memorandum are identical in content.
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    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Cast Iron 
Soil Pipe Fittings from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).

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[[Page 7146]]

Scope of the Investigation

    The products covered by this investigation are cast iron soil pipe 
fittings from China. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\5\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (scope).\6\ The petitioner commented 
on the scope of the investigation as it appeared in the Initiation 
Notice, proposing the addition of certain Harmonized Tariff System 
(HTS) codes.\7\ We are not preliminarily modifying the scope language 
as it appeared in the Initiation Notice, but we invite parties to 
comment on whether to add the proposed HTS codes to the scope 
language.\8\
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \6\ See Initiation Notice, 82 FR at 37053.
    \7\ See Letter from the petitioner, ``Cast Iron Soil Pipe 
Fittings from the People's Republic of China: Pre-Preliminary 
Comments,'' dated January 18, 2018.
    \8\ See the Preliminary Decision Memorandum for further 
discussion.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce calculated export prices and 
constructed export prices in accordance with sections 772(a) and (b) of 
the Act, respectively. Because China is a non-market economy within the 
meaning of section 771(18) of the Act, Commerce has calculated normal 
value in accordance with section 773(c) of the Act. Furthermore, 
pursuant to section 776(a) and (b) of the Act, Commerce preliminarily 
has relied upon facts otherwise available, with adverse inferences, for 
the China-wide entity. For a full description of the methodology 
underlying Commerce's preliminary determination, see the Preliminary 
Decision Memorandum.

Preliminary Affirmative Determination of Critical Circumstances, in 
Part

    In accordance with section 733(e) of the Act and 19 CFR 351.206, 
Commerce preliminarily determines that critical circumstances exist 
with respect to imports of cast iron soil pipe fittings from China for 
mandatory respondent Sibo International Limited (Sibo), the non-
individually examined respondents found to be eligible for a separate 
rate, and the China-wide entity, but do not exist for mandatory 
respondents Shanxi Xuanshi Industrial Group Co., Ltd. (Shanxi Xuanshi) 
and Wor-Biz International Trading Co., Ltd. (Anhui) (Wor-Biz). For a 
full description of the methodology and results of Commerce's analysis, 
see the Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,\9\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\10\
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    \9\ See Initiation Notice, 82 FR at 37057.
    \10\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

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

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                                                                                                  Cash deposit
                                                                                  Estimated      rate (adjusted
                  Producer                               Exporter                 weighted-        for subsidy
                                                                               average dumping      offsets)
                                                                              margin (percent)      (percent)
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Shanxi Xuanshi Industrial Group Co., Ltd....  Shanxi Xuanshi Industrial                  68.37             68.28
                                               Group Co., Ltd.
Qinshui Shunshida Casting Co., Ltd..........  Sibo International Limited....            109.95            109.79
Guang Zhou Premier & Pinan Foundry Co., Ltd./ Wor-Biz Trading Co., Ltd.                  78.86             78.63
 Botou Chenyuan Foundry Co., Ltd./Wuhu Best    (Anhui).
 Machines Co., Ltd.
Shijiazhuang Asia Casting Co., Ltd..........  Shijiazhuang Asia Casting Co.,             88.47             88.31
                                               Ltd.
Qinshui Shunshida Casting Co., Ltd./Xinle     Shanxi Zhongrui Tianyue                    88.47             88.31
 Xinye Metal Products Co., Ltd.                Trading Co., Ltd.
Qinshui Shunshida Casting Co., Ltd./Xinle     Dalian Lino F.T.Z. Co., Ltd...             88.47             88.31
 Rishuo Casting Factory/Shijiazhuang
 Shunjinguangao Trade Co., Ltd./Xinle Tang
 Rong Fa Lan Pan Co., Ltd.
Xinle City Zhile Pipeline Industry Co., Ltd./ Dinggin Hardware (Dalian) Co.,             88.47             88.31
 Qinshui Shunshida Casting Co., Ltd./Foshan    Ltd.
 City Deying Metal Products Co., Ltd.
Xinle Rishuo Casting Factory/Qinshui          Dalian Metal I/E Co., Ltd.....             88.47             88.31
 Shunshida Casting Co., Ltd.
Qinshui County Xinwei Precision Co., Ltd....  Qinshui Shunshida Casting Co.,             88.47             88.31
                                               Ltd.
Shanxi Guruiwei Casting Co., Ltd............  Richang Qiaoshan Trade Co.,                88.47             88.31
                                               Ltd.
Shijiazhuang Jingruisheng Metal Products      Hebei Metals & Engineering                 88.47             88.31
 Co., Ltd./Qinshui Shunshida Casting Co.,      Products Trading Co., Ltd.
 Ltd./Xinle City Zhile Pipe Co., Ltd.
                                                                             -----------------------------------
    China-wide Entity.......................  ..............................            109.95            109.86
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Suspension of Liquidation

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
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, 
as discussed below. Further, pursuant to section 733(d)(1)(B) of the 
Act and 19 CFR 351.205(d), Commerce will instruct CBP to require a cash 
deposit equal to the weighted-average amount by which normal value 
exceeds U.S. price, as indicated in the chart above as follows: (1) For 
the producer/

[[Page 7147]]

exporter combinations listed in the table above, the cash deposit rate 
is equal to the estimated weighted-average dumping margin listed for 
that combination in the table; (2) for all combinations of Chinese 
producers/exporters of merchandise under consideration that have not 
established eligibility for their own separate rates, the cash deposit 
rate will be equal to the estimated weighted-average dumping margin 
established for the China-wide entity; and (3) for all third-county 
exporters of merchandise under consideration not listed in the table 
above, the cash deposit rate is the cash deposit rate applicable to the 
Chinese producer/exporter combination (or the China-wide entity) that 
supplied that third-country exporter.
    Section 733(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 cast iron soil 
pipe fittings from China from the producer/exporter Sibo International 
Limited/Qinshui Shunshida Casting Co., Ltd., the non-individually 
examined respondents found to be eligible for a separate rate, and the 
China-wide entity. In accordance with section 733(e)(2)(A) of the Act, 
the suspension of liquidation shall apply to unliquidated entries of 
merchandise entered, or withdrawn from warehouse, for consumption on or 
after the date which is 90 days before the publication of this notice.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce has made a preliminary 
affirmative determination for domestic subsidy pass-through or export 
subsidies,\11\ Commerce has offset the calculated estimated weighted-
average dumping margin by the appropriate rate(s). Any such adjusted 
rates may be found in the Preliminary Determination Section's chart of 
estimated weighted-average dumping margins above.
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    \11\ See the Preliminary Decision Memorandum for further 
discussion.
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    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting cash 
deposits at a rate equal to the estimated weighted-average dumping 
margins calculated in this preliminary determination unadjusted for the 
passed-through domestic subsidies or for export subsidies at the time 
the CVD provisional measures expire.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this preliminary determination within five 
days of its public announcement or, if there is no public announcement, 
within five days of the date of publication 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 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 final 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.\12\ 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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    \12\ 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.

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 
the petitioner. 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.
    Between January 15, 2018, and January 25, 2018, pursuant to 19 CFR 
351.210(b) and (e), Wor-Biz, Sibo, and Shanxi Xuanshi requested that 
Commerce postpone the final determination and that provisional measures 
be extended to a period not to exceed six months.\13\ In accordance 
with section 735(a)(2)(A) of the Act and 19 CFR 351.210(b)(2)(ii) and 
(e)(2), because (1) the preliminary determination is affirmative; (2) 
the requesting exporters account for a significant proportion of 
exports of the subject merchandise; and (3) no compelling reasons for 
denial exist, Commerce is postponing the final determination and 
extending the provisional measures from a four-month period to a period 
not greater than six

[[Page 7148]]

months. Accordingly, Commerce's final determination will publish no 
later than 135 days after the publication of the preliminary 
determination notice.
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    \13\ See Letters from Wor-Biz, ``Cast Iron Soil Pipe Fittings 
from the People's Republic of China: Request to Fully Extend the 
Final Results,'' dated January 18, 2018; Sibo, ``Cast Iron Soil Pipe 
Fittings from the People's Republic of China--Submission Seeking 
Extension of Final Determination and Provisional Measures,'' dated 
January 19, 2018; and Shanxi Xuanshi, ``Cast Iron Soil Pipe Fittings 
from the People's Republic of China (``Soil Pipe Fittings''); A-570-
062; Request for Extension of Final Determination and Provisional 
Measures,'' dated January 25, 2018. The petitioner does not oppose 
postponement of the final determination. See Letter from the 
petitioner, ``Cast Iron Soil Pipe Fittings from the People's 
Republic of China: Request to Extend Final Determination,'' dated 
January 16, 2018.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
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 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    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: February 12, 2018.
Christian Marsh,
Acting Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The merchandise covered by this investigation is cast iron soil 
pipe fittings, finished and unfinished, regardless of industry or 
proprietary specifications, and regardless of size. Cast iron soil 
pipe fittings are nonmalleable iron castings of various designs and 
sizes, including, but not limited to, bends, tees, wyes, traps, 
drains, and other common or special fittings, with or without side 
inlets.
    Cast iron soil pipe fittings are classified into two major 
types--hubless and hub and spigot. Hubless cast iron soil pipe 
fittings are manufactured without a hub, generally in compliance 
with Cast Iron Soil Pipe Institute (CISPI) specification 301 and/or 
American Society for Testing and Materials (ASTM) specification 
A888. Hub and spigot pipe fittings have hubs into which the spigot 
(plain end) of the pipe or fitting is inserted. Cast iron soil pipe 
fittings are generally distinguished from other types of 
nonmalleable cast iron fittings by the manner in which they are 
connected to cast iron soil pipe and other fittings.
    The subject imports are normally classified in subheading 
7307.11.0045 of the Harmonized Tariff Schedule of the United States 
(HTSUS): Cast fittings of nonmalleable cast iron for cast iron soil 
pipe. The HTSUS subheading and specifications 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. Postponement of Final Determination and Extension of Provisional 
Measures
V. Scope Comments
VI. Scope of the Investigation
VII. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Surrogate Country and Surrogate Value Comments
    C. Separate Rates
    D. Affiliation
    E. China-Wide Entity
    F. Application of Facts Available and Adverse Inferences
    G. Date of Sale
    H. Comparisons to Fair Value
    I. U.S. Price
    J. Value-Added Tax (VAT)
    K. Normal Value
    L. Factor Valuation Methodology
VIII. Currency Conversion
IX. Adjustment Under Section 777(A)(F) of the Act
X. Critical Circumstances
XI. Adjustment for Countervailable Export Subsidies
XII. Verification
XIII. Conclusion

[FR Doc. 2018-03404 Filed 2-16-18; 8:45 am]
 BILLING CODE 3510-DS-P