[Federal Register Volume 83, Number 96 (Thursday, May 17, 2018)]
[Notices]
[Pages 22957-22959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-10553]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-863]


Forged Steel Fittings From Taiwan: Affirmative Preliminary 
Determination of Sales at Less Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that forged steel fittings from Taiwan are being, or are likely to be, 
sold in the United States at less than fair value (LTFV). The period of 
investigation (POI) is October 1, 2016, through September 30, 2017. 
Interested parties are invited to comment on this preliminary 
determination.

DATES: Applicable May 17, 2018.

FOR FURTHER INFORMATION CONTACT: Robert Palmer (202) 482-9068 or 
Suzanne Lam at (202) 482-0783, 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 to the file 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 to the file, ``Decision Memorandum for the 
Preliminary Determination in the Less-Than-Fair- Value Investigation 
of Forged Steel Fittings from Taiwan,'' dated concurrently with this 
notice (Preliminary Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are forged steel 
fittings from Taiwan. 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.
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    \5\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997) (Preamble).
    \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).
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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). Pursuant 
to sections 776(a) and (b) of the Act and 19 CFR 351.308, Commerce 
preliminarily relied upon facts otherwise available with an adverse 
inference (adverse facts available or AFA) to assign an estimated 
weighted-average dumping margin to the two mandatory respondents in 
Taiwan, Both Well Steel Fittings Co., Ltd. (Both Well) and Luchu Shin 
Yee Works Co. Ltd. (Luchu), because these respondents did not respond 
to Commerce's antidumping duty questionnaire and, therefore, failed to 
cooperate to the best of their ability in the investigation. See 
Preliminary Decision Memorandum for a complete explanation of the 
methodology and analysis underlying our preliminary application of 
adverse facts available. As AFA, Commerce is preliminarily assigning to 
Both Well and Luchu the highest and only margin alleged in the 
petition, 116.17 percent.\9\ The third mandatory respondent, Kopex 
Industrial Co. (Kopex), notified Commerce that it is not a producer or 
exporter of subject merchandise.\10\
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    \9\ See Letter to the Secretary of Commerce from the 
Petitioners, ``Forged Steel Fittings from People's Republic of 
China, Italy, and Taiwan--Petitions for the Imposition of 
Antidumping and Countervailing Duties'' (October 5, 2017) (the 
Petition) at Volume III. See also, AD Investigation Initiation 
Checklist: Forged Steel Fittings from Taiwan (October 25, 2017) (in 
which the Petition margin was recalculated for purposes of 
initiation).
    \10\ See Preliminary Decision Memorandum at section IV, 
Treatment of Kopex.
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All-Others Rate

    Sections 733(d)(1)(ii) and 735(c)(5)(A) of the Act provide that in 
the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    In cases where no weighted-average dumping margins other than zero, 
de minimis, or those determined entirely under section 776 of the Act 
have been

[[Page 22958]]

established for individually examined entities, in accordance with 
section 735(c)(5)(B) of the Act, Commerce may use ``any reasonable 
method to establish the estimated all-others rate for exporters and 
producers not individually investigated, including averaging the 
estimated weighted average dumping margins determined for the exporters 
and producers individually investigated.'' Our recent practice in these 
circumstances is to average the dumping margins alleged in the Petition 
\11\ and apply the result to ``all-other'' entities not individually 
examined.\12\ In this investigation, Commerce has preliminarily 
determined the estimated weighted-average dumping margin for Both Well 
and Luchu entirely under section 776 of the Act. Therefore, as the 
``all-others'' rate, we are assigning the sole margin in the Petition, 
which is 116.17 percent. For a full description of the methodology 
underlying Commerce's analysis, see the Preliminary Decision 
Memorandum.
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    \11\ See the Petition.
    \12\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value: Sodium Nitrite from the Federal Republic of 
Germany, 73 FR 21909, 21912 (April 23, 2008), unchanged in Notice of 
Final Determination of Sales at Less Than Fair Value: Sodium Nitrite 
from the Federal Republic of Germany, 73 FR 38986, 38987 (July 8, 
2008), and accompanying Issues and Decision Memorandum at Comment 2; 
see also Notice of Final Determination of Sales at Less Than Fair 
Value: Raw Flexible Magnets from Taiwan, 73 FR 39673, 39674 (July 
10, 2008); Steel Threaded Rod from Thailand: Preliminary 
Determination of Sales at Less Than Fair Value and Affirmative 
Preliminary Determination of Critical Circumstances, 78 FR 79670, 
79671 (December 31, 2013), unchanged in Steel Threaded Rod from 
Thailand: Final Determination of Sales at Less Than Fair Value and 
Affirmative Final Determination of Critical Circumstances, 79 FR 
14476, 14477 (March 14, 2014).
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Preliminary Determination

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

------------------------------------------------------------------------
                                                               Estimated
                                                               weighted-
                                                                average
                    Exporter or producer                        dumping
                                                                margin
                                                               (percent)
------------------------------------------------------------------------
Both Well Steel Fittings Co., Ltd...........................      116.17
Luchu Shin Yee Works Co. Ltd................................      116.17
All-Others..................................................      116.17
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Suspension of Liquidation

    In accordance with section 773(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.
    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 \13\ for both the 
individually examined respondents and all other producers and exporters 
equal to the 116.17 percent dumping margin preliminarily determined 
above. These suspension of liquidation instructions will remain in 
effect until further notice.
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    \13\ See Modification of Regulations Regarding the Practice of 
Accepting Bonds During the Provisional Measures Period in 
Antidumping and Countervailing Duty Investigations, 76 FR 61042, 
dated October 3, 2011.
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Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a preliminary determination within five 
days of any public announcement or, if there is no public announcement, 
within five days of the date of publication of the notice of 
preliminary determination in the Federal Register, in accordance with 
19 CFR 351.224(b). However, because Commerce preliminarily applied an 
AFA rate to the individually examined companies (Both Well and Luchu) 
in this investigation, in accordance with section 776 of the Act, and 
the applied AFA rate is based solely on the Petition, there are no 
calculations to disclose.

Verification

    Because the mandatory respondents in this investigation, Both Well 
and Luchu, did not provide the information requested and Commerce 
preliminarily determines these respondents to have been uncooperative, 
Commerce will not conduct verifications of these two companies. Kopex 
contends that it is not a producer or exporter of forged steel fittings 
from Taiwan. As provided in section 782(i)(1) of the Act, we intend to 
verify Kopex's claim that it did not produce or sell the subject 
merchandise during the POI.

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 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.\14\
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    \14\ 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. 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.

U.S. International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
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.

[[Page 22959]]

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

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. Treatment of Kopex
V. Scope Comments
VI. Scope of the Investigation
VII. Application of Facts Available and Use of Adverse Inference
VIII. All-Others Rate
IX. Conclusion

[FR Doc. 2018-10553 Filed 5-16-18; 8:45 am]
BILLING CODE 3510-DS-P