[Federal Register Volume 83, Number 96 (Thursday, May 17, 2018)]
[Notices]
[Pages 22948-22952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10547]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-067]


Forged Steel Fittings From the People's Republic of China: 
Affirmative Preliminary Determination of Sales at Less Than Fair Value, 
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 forged steel fittings from the People's Republic of China (China) 
are being, or are likely to be, sold in the United States at less than 
fair value (LTFV). The period of investigation (POI) is April 1, 2017, 
through September 30, 2017. Interested parties are invited to comment 
on this preliminary determination.

DATES: Applicable May 17, 2018.

FOR FURTHER INFORMATION CONTACT: Katherine Johnson at 202-482-4929 or 
Irene Gorelik at (202) 482-6905, AD/CVD Operations, Enforcement and 
Compliance, International Trade Administration, U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    Commerce initiated this investigation on October 25, 2017.\1\ On 
February 2, 2018, 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. The revised deadline for the preliminary 
determination of this investigation is now May 7, 2018.\3\
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    \1\ See Forged Steel Fittings from the People's Republic of 
China, Italy, and Taiwan: Initiation of Less-Than-Fair-Value 
Investigations, 82 FR 50614 (November 1, 2017) (Initiation Notice).
    \2\ See Forged Steel Fittings from the People's Republic of 
China, Italy, and Taiwan: Postponement of Preliminary Determinations 
in the Less-Than-Fair-Value Investigations, 83 FR 4899 (February 2, 
2018).
    \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

[[Page 22949]]

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 Forged 
Steel Fittings from the People's Republic of China,'' 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 forged steel 
fittings from China. For a complete description of the scope of this 
investigation, see the ``Scope of the Investigation,'' in 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 (i.e., scope).\6\ Certain interested 
parties commented on the scope of the investigation as it appeared in 
the Initiation Notice. On March 7, 2018, Commerce issued a Preliminary 
Scope Decision Memorandum making certain preliminary revisions to the 
scope based on the comments received.\7\ Commerce received additional 
scope comments following the issuance of the Preliminary Scope Decision 
Memorandum, and based on those comments, made certain additional 
preliminary revisions to the scope. For a summary of the additional 
comments received, and Commerce's preliminary analysis and decision 
with respect to them, see the Second Preliminary Scope Decision 
Memorandum.\8\ See also the revised scope in Appendix I to this 
notice.\9\
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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 50615.
    \7\ See Memorandum, ``Scope Comments Decision Memorandum for the 
Preliminary Determinations,'' dated March 7, 2018 (Preliminary Scope 
Decision Memorandum).
    \8\ See Memorandum, ``Second Preliminary Scope Decision 
Memorandum,'' dated concurrently with this notice (Second 
Preliminary Scope Decision Memorandum).
    \9\ The revised scope language also applies to the companion 
countervailing duty investigation of forged steel fittings from 
China.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Tariff Act of 1930, as amended (the Act). Commerce 
has calculated export prices in accordance with section 772(a) of the 
Act. Because China is a non-market economy, within the meaning of 
section 771(18) of the Act, Commerce has calculated normal value (NV) 
in accordance with section 773(c) of the Act. In addition, 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, including the single entity comprising Jiangsu Haida Pipe 
Fittings Group Company Ltd., its affiliated producer Haida Pipe Co., 
Ltd., and its affiliated reseller Yancheng L&W International Co., Ltd. 
For a full description of the methodology underlying Commerce's 
analysis, see the Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,\10\ 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.\11\
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    \10\ See Initiation Notice at 50618.
    \11\ 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 weighted-
average dumping margins exist:

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
              Exporter                       Producer           dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Both-Well (Taizhou) Steel Fittings    Both-Well (Taizhou)           7.42
 Co., Ltd.                             Steel Fittings Co.,
                                       Ltd.
Dalian Guangming Pipe Fittings Co.,   Yancheng Jiuwei Pipe          7.42
 Ltd.                                  Fittings Co., Ltd.
Dalian Guangming Pipe Fittings Co.,   Yancheng Manda Pipe           7.42
 Ltd.                                  Industry Co., Ltd.
Dalian Guangming Pipe Fittings Co.,   Yancheng Haohui Pipe          7.42
 Ltd.                                  Fittings Co., Ltd.
Dalian Guangming Pipe Fittings Co.,   Jiangsu Haida Pipe            7.42
 Ltd.                                  Fittings Group Co.,
                                       Ltd.
Eaton Hydraulics (Ningbo) Co., Ltd..  Eaton Hydraulics              7.42
                                       (Ningbo) Co., Ltd.
Eaton Hydraulics (Luzhou) Co., Ltd..  Eaton Hydraulics              7.42
                                       (Luzhou) Co., Ltd.
Eaton Hydraulics (Luzhou) Co., Ltd..  Luzhou City Chengrun          7.42
                                       Mechanics Co., Ltd.
Eaton Hydraulics (Luzhou) Co., Ltd..  Eaton Hydraulics              7.42
                                       (Ningbo) Co., Ltd.
Jiangsu Forged Pipe Fittings Co.,     Jiangsu Forged Pipe           7.42
 Ltd.                                  Fittings Co., Ltd.
Jinan Mech Piping Technology Co.,     Jinan Mech Piping             7.42
 Ltd.                                  Technology Co., Ltd.
Jining Dingguan Precision Parts       Jining Dingguan               7.42
 Manufacturing Co., Ltd.               Precision Parts
                                       Manufacturing Co.,
                                       Ltd.
Lianfa Stainless Steel Pipes &        Lianfa Stainless Steel        7.42
 Valves (Qingyun) Co., Ltd.            Pipes & Valves
                                       (Qingyun) Co., Ltd.
Ningbo Long Teng Metal Manufacturing  Ningbo Long Teng Metal        7.42
 Co., Ltd.                             Manufacturing Co.,
                                       Ltd.
Ningbo Save Technology Co., Ltd.....  Ningbo Save Technology        7.42
                                       Co., Ltd.
Q.C. Witness International Co., Ltd.  Ningbo HongTe                 7.42
                                       Industrial Co., Ltd.
Q.C. Witness International Co., Ltd.  Cixi Baicheng Hardware        7.42
                                       Tools, Ltd.
Qingdao Bestflow Industrial Co., Ltd  Yancheng Boyue Tube           7.42
                                       Co., Ltd.
Xin Yi International Trade Co.,       Yancheng Jiuwei Pipe          7.42
 Limited.                              Fittings Co., Ltd.
Xin Yi International Trade Co.,       Yancheng Manda Pipe           7.42
 Limited.                              Industry Co., Ltd.
Xin Yi International Trade Co.,       Yancheng Haohui Pipe          7.42
 Limited.                              Fittings Co., Ltd.

[[Page 22950]]

 
Xin Yi International Trade Co.,       Jiangsu Haida Pipe            7.42
 Limited.                              Fittings Group Co.,
                                       Ltd.
Xin Yi International Trade Co.,       Yingkou Guangming             7.42
 Limited.                              Pipeline Industry
                                       Co., Ltd.
Xin Yi International Trade Co.,       Shanghai Lon Au               7.42
 Limited.                              Stainless Steel
                                       Materials Co., Ltd.
Yingkou Guangming Pipeline Industry   Yingkou Guangming             7.42
 Co., Ltd.                             Pipeline Industry
                                       Co., Ltd.
Yingkou Guangming Pipeline Industry   Yancheng Jiuwei Pipe          7.42
 Co., Ltd.                             Fittings Co., Ltd.
Yingkou Guangming Pipeline Industry   Yancheng Manda Pipe           7.42
 Co., Ltd.                             Industry Co., Ltd.
Yingkou Guangming Pipeline Industry   Yancheng Haohui Pipe          7.42
 Co., Ltd.                             Fittings Co., Ltd.
Yingkou Guangming Pipeline Industry   Jiangsu Haida Pipe            7.42
 Co., Ltd.                             Fittings Group Co.,
                                       Ltd.
Yuyao Wanlei Pipe Fitting             Yuyao Wanlei Pipe             7.42
 Manufacturing Co., Ltd.               Fitting Manufacturing
                                       Co., Ltd.
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China-Wide Entity \12\......................................      142.72
------------------------------------------------------------------------

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.
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    \12\ The China-wide entity includes: (1) Beijing Better Products 
International Ltd.; (2) Dalian Newshow Pipeline Industry Co.; (3) 
G&T Industry Holding Ltd.; (4) Shanxi Baolongda Forging Company 
Ltd.; (5) Shaanxi Fenry Flanges and Fittings Co., Ltd.; (6) Shenzhen 
Front Valve Co., Ltd.; (7) Qingdao Eathu Casting and Forging Co., 
Ltd.; (8) Gaoyou Huaxing Petroleum Pipe Manufacture Co., Ltd.; and 
(9) the single entity comprising Jiangsu Haida Pipe Fittings Group 
Company Ltd., its affiliated producer Haida Pipe Co., Ltd., and its 
affiliated reseller Yancheng L&W International Co., Ltd.
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    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 
estimated weighted-average dumping margin as follows: (1) For the 
producer/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.
    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 CVD 
proceeding when CVD provisional measures are in effect. Accordingly, 
where Commerce makes a preliminary affirmative determination for 
domestic subsidy pass-through or export subsidies, Commerce offsets the 
calculated estimated weighted-average dumping margin by the appropriate 
rate(s). In this case, we have not made a preliminary affirmative 
determination for domestic subsidy pass-through or export subsidies. 
Therefore, we are not adjusting the estimated weighted-average dumping 
margin for these subsidies.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in conjunction 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 regarding non-scope issues 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, or on a date established by the Secretary, as 
appropriate. Rebuttal briefs, limited to issues raised in case briefs, 
may be submitted no later than five days after the deadline date for 
case briefs.\13\
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    \13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Additionally, case briefs regarding scope issues may be submitted 
within 10 days after the date of publication of this notice in the 
Federal Register. Rebuttal briefs regarding scope issues, limited to 
those issues which are raised in the scope case briefs, may be 
submitted no later than five days after the deadline date for scope 
case briefs. All scope case and rebuttal briefs must be filed 
identically on the records of this investigation and the concurrent AD 
and CVD investigations of forged steel fittings. Pursuant to 19 CFR 
351.309(c)(2) and (d)(2), parties who submit case briefs or rebuttal 
briefs on any issues raised 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.
    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the non-scope case and 
rebuttal briefs and/or scope case and rebuttal briefs, must submit a 
written request to the Assistant Secretary for Enforcement and 
Compliance, U.S. Department of Commerce. Any hearing request for scope 
issues must be filed identically on the records of this investigation 
and the concurrent AD and CVD investigations of forged steel fittings. 
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. 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, 
Commerce intends to hold the hearing at the U.S.

[[Page 22951]]

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 petitioners. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that a request by exporters for postponement of the 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 March 18, 2018, pursuant to 19 CFR 351.210(e), Both-Well 
(Taizhou) Steel Fittings Co., Ltd. requested that, in the event of an 
affirmative preliminary determination, Commerce postpone the final 
determination and that provisional measures be extended to a period not 
to exceed six months.\14\ On April 18, the petitioners \15\ requested, 
in the event of a negative preliminary determination in this 
investigation, that Commerce postpone the final determination up to 135 
days after the date of the publication of the preliminary 
determination.\16\ In accordance with section 735(a)(2)(A) of the Act 
and 19 CFR 351.210(b)(2)(ii), because: (1) The 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, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
Commerce will make its final determination no later than 135 days after 
the date of publication of this preliminary determination.
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    \14\ See Letter from Both-Well, ``Forged Steel Fittings from 
China: Antidumping,'' dated March 18, 2018.
    \15\ Bonney Forge Corporation and United Steel, Paper and 
Forestry, Rubber, Manufacturing, Energy, Allied Industrial and 
Service Workers International Union (USW) (collectively, the 
petitioners).
    \16\ See Letters from the petitioners, ``Request to Extend Final 
Determination,'' dated April 18, 2018; and ``Request to Extend Final 
Determination, Acknowledgement of Gap in CVD Provisional Measures,'' 
dated April 19, 2018.
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International Trade Commission Notification

    In accordance with section 733(f) of the Act, we are notifying the 
U.S. International Trade Commission (ITC) of our affirmative 
preliminary determination of sales at LTFV. 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 our 
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: May 7, 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 merchandise covered by this investigation is carbon and 
alloy forged steel fittings, whether unfinished (commonly known as 
blanks or rough forgings) or finished. Such fittings are made in a 
variety of shapes including, but not limited to, elbows, tees, 
crosses, laterals, couplings, reducers, caps, plugs, bushings, 
unions, and outlets. Forged steel fittings are covered regardless of 
end finish, whether threaded, socket-weld or other end connections.
    While these fittings are generally manufactured to 
specifications ASME B16.11, MSS SP-79, MSS SP-83, MSS SP-97, ASTM 
A105, ASTM A350, and ASTM A182, the scope is not limited to fittings 
made to these specifications.
    The term forged is an industry term used to describe a class of 
products included in applicable standards, and does not reference an 
exclusive manufacturing process. Forged steel fittings are not 
manufactured from casting. Pursuant to the applicable 
specifications, subject fittings may also be machined from bar stock 
or machined from seamless pipe and tube.
    All types of fittings are included in the scope regardless of 
nominal pipe size (which may or may not be expressed in inches of 
nominal pipe size), pressure rating (usually, but not necessarily 
expressed in pounds of pressure/PSI, e.g., 2,000 or 2M; 3,000 or 3M; 
6,000 or 6M; 9,000 or 9M), wall thickness, and whether or not heat 
treated.
    Excluded from this scope are all fittings entirely made of 
stainless steel. Also excluded are flanges, butt weld fittings, butt 
weld outlets, nipples, and all fittings that have a maximum pressure 
rating of 300 pounds of pressure/PSI or less.
    Also excluded are fittings certified or made to the following 
standards, so long as the fittings are not also manufactured to the 
specifications of ASME B16.11, MSS SP-79, MSS SP-83, MSS SP-97, ASTM 
A105, ASTM A350, and ASTM A182:

 American Petroleum Institute (API) API 5CT, API 5L, or API 
11B
 Society of Automotive Engineering (SAE) SAE J476, SAE J514, 
SAE J516, SAE J517, SAE J518, SAE J1026, SAE J1231, SAE J1453, SAE 
J1926, J2044 or SAE AS 35411
 Underwriter's Laboratories (UL) certified electrical 
conduit fittings
 ASTM A153, A536, A576, or A865
 Casing Conductor Connectors 16-42 inches in diameter made 
to proprietary specifications
 Military Specification (MIL) MIL-C-4109F and MIL-F-3541
 International Organization for Standardization (ISO) 
ISO6150-B

    To be excluded from the scope, products must have the 
appropriate standard or pressure markings and/or accompanied by 
documentation showing product compliance to the applicable standard 
or pressure, e.g., ``API 5CT'' mark and/or a mill certification 
report.
    Subject carbon and alloy forged steel fittings are normally 
entered under Harmonized Tariff Schedule of the United States 
(HTSUS) 7307.99.1000, 7307.99.3000, 7307.99.5045, and 7307.99.5060. 
They also may be entered under HTSUS 7307.92.3010, 7307.92.3030, 
7307.92.9000, and 7326.19.0010. The HTSUS subheadings and 
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. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Selection of Respondents
VII. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Surrogate Country and Surrogate Value Comments
    C. Separate Rates
    D. Combination Rates
    E. Affiliation and Single Entity
    F. China-Wide Entity
    G. Application of Facts Available and Adverse Inferences
    H. Date of Sale
    I. Fair Value Comparisons
    J. Export Price
    K. Value-Added Tax (VAT)
    L. Normal Value
    M. Factor Valuation Methodology
VIII. Currency Conversion
IX. Adjustment Under Section 777(A)(f) of the Act
X. Adjustments to Cash Deposit Rates for Export Subsidies

[[Page 22952]]

XI. Verification
XII. Conclusion

[FR Doc. 2018-10547 Filed 5-16-18; 8:45 am]
BILLING CODE 3510-DS-P