[Federal Register Volume 83, Number 159 (Thursday, August 16, 2018)]
[Notices]
[Pages 40748-40750]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17696]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-878]


Stainless Steel Flanges From India: Final Affirmative 
Countervailing Duty Determination and Final Affirmative Determination 
of Critical Circumstances

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of stainless steel flanges from India during the period of 
investigation January 1, 2016, through December 31, 2016.

DATES: Applicable August 16, 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-
1979, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 23, 2018, Commerce published the Preliminary

[[Page 40749]]

Determination in the Federal Register.\1\ A summary of the events that 
occurred since Commerce published the Preliminary Determination, as 
well as a full discussion of the issues raised by parties for this 
final determination, may be found in the accompanying Issues and 
Decision Memorandum.\2\ The Issues and 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 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 Issues and Decision Memorandum 
can be accessed directly at http://enforcement.trade.gov. The signed 
and electronic versions of the Issues and Decision Memorandum are 
identical in content.
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    \1\ See Stainless Steel Flanges from India: Preliminary 
Affirmative Countervailing Duty Determination, Preliminary 
Affirmative and Alignment of Final Determination With Final 
Antidumping Duty Determination, 83 FR 3118 (January 23, 2018) and 
accompanying Preliminary Decision Memorandum (Preliminary 
Determination).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination in the Countervailing Duty Investigation of 
Stainless Steel Flanges from India,'' dated concurrently with this 
determination and hereby adopted by this notice (Issues and Decision 
Memorandum).
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Scope Comments

    In Commerce's Preliminary Scope Decision Memorandum, we set aside a 
period of time for parties to raise issues regarding product coverage 
(i.e., scope) in scope case briefs or other written comments on scope 
issues.\3\ No interested parties submitted timely scope comments. For a 
complete description of the scope of this investigation, see Appendix 
I.
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    \3\ See Memorandum, ``Scope Comments Decision Memorandum for the 
Preliminary Determinations,'' dated November 15, 2017 (Preliminary 
Scope 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 ``Scope of the Investigation,'' in Appendix I of 
this notice.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs filed by the parties, are discussed in the 
Issues and Decision Memorandum. A list of the issues parties raised and 
to which we responded in the Issues and Decisions Memorandum, is 
attached to this notice at Appendix II.

Verification

    Commerce conducted verification of the questionnaire responses 
submitted by the Government of India and Echjay Forgings Private 
Limited (Echjay) between June 4 and June 8, 2018.

Use of Adverse Facts Available

    If necessary information is not available on the record, or an 
interested party withholds information, fails to provide requested 
information in a timely manner, significantly impedes a proceeding by 
not providing information, or information provided cannot be verified, 
the Department will apply facts available, pursuant to section 
776(a)(1) and (2) of the Tariff Act of 1930, as amended (the Act). For 
purposes of this final determination, Commerce relied, in part, on 
facts available and, because certain respondents did not cooperate by 
not acting to the best of their ability to respond to our requests for 
information, we drew an adverse inference, where appropriate, in 
selecting from among the facts otherwise available.\4\ A full 
discussion of our decision to rely on adverse facts available is 
presented in the ``Use of Facts Otherwise Available and Adverse 
Inferences'' section of the Issues and Decision Memorandum.
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    \4\ See sections 776(a) and (b) of the Act.
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received from parties and the 
minor corrections presented, as well as additional items discovered at 
verification, we made certain changes to the respondents' subsidy rate 
calculations set forth in the Preliminary Determination. For a 
discussion of these changes, see the Issues and Decision Memorandum and 
the Final Analysis Memorandum.\5\
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    \5\ See Issues and Decision Memorandum; see also Memorandum, 
``Final Analysis Memorandum for Echjay Forgings Pvt. Ltd,'' dated 
concurrently with this notice.
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Final Affirmative Determination of Critical Circumstances

    For the Preliminary Determination, Commerce found that critical 
circumstances exist with respect to imports of stainless steel flanges 
from Bebitz Flanges Works (Bebitz), Echjay, and all-other exporters/
producers covered by the ``all-others'' rate.\6\ We did not modify our 
critical circumstances for the final determination. Thus, pursuant to 
section 703(e)(1) of the Act, we continue to find that critical 
circumstances exist with respect to subject merchandise produced or 
exported by Bebitz, Echjay, and ``all-others.''
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    \6\ See Preliminary Determination, 83 FR at 3118, 3119, and 
accompanying Preliminary Decision Memorandum at 4-7.
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Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for each exporter/producer of the subject merchandise 
individually investigated, i.e., Echjay and Bebitz. In accordance with 
section 705(c)(5)(A) of the Act, for companies not individually 
investigated, we apply an ``all-others'' rate, which is normally 
calculated by weighting the subsidy rates of the individual companies 
selected as mandatory respondents by those companies' exports of the 
subject merchandise to the United States. Under section 705(c)(5)(A)(i) 
of the Act, the ``all-others'' rate excludes zero and de minimis rates 
calculated for the exporters and producers individually investigated, 
as well as rates based entirely on facts otherwise available. Where the 
rates for the individually investigated companies are all zero or de 
minimis, or determined entirely using facts otherwise available, 
section 705(c)(5)(A)(ii) of the Act instructs Commerce to establish an 
``all-others'' rate using ``any reasonable method.''
    In this investigation, Commerce assigned a rate based entirely on 
facts available to Bebitz. Therefore, the only rate that is not zero, 
de minimis or based entirely on facts otherwise available is the rate 
calculated for Echjay. Consequently, the rate calculated for Echjay is 
also assigned as the rate for all-other producers and exporters.
    The final subsidy rates are as follows:
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    \7\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Bebitz Flanges Works: Viraj Profiles Limited.
    \8\ 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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                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Bebitz Flanges Works Private Limited \7\....................      256.16
Echjay Forgings Private Limited \8\.........................        4.92
All-Others..................................................        4.92
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[[Page 40750]]

Disclosure

    We intend to disclose the calculations performed within five days 
of the date of publication of this notice to parties in this proceeding 
in accordance with 19 CFR 351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of any entries of merchandise 
under consideration from India that were entered, or withdrawn from 
warehouse, for consumption on or after October 25, 2017, which is 90 
days prior to the date of publication in the Federal Register of the 
Preliminary Determination. In accordance with section 703(d) of the 
Act, we issued instructions to CBP to discontinue the suspension of 
liquidation for CVD purposes for subject merchandise entered, or 
withdrawn from warehouse, on or after May 22, 2018, but to continue the 
suspension of liquidation on all entries from January 23, 2018, through 
May 21, 2018.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order and will require a cash deposit of estimated countervailing 
duties for such entries of subject merchandise in the amounts indicated 
above. If the ITC determines that material injury, or threat of 
material injury, does not exist, this proceeding will be terminated, 
and all estimated duties deposited or securities posted as a result of 
the suspension of liquidation will be refunded or canceled.

U.S. International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
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 (APO), without the written 
consent of the Acting Assistant Secretary for Enforcement and 
Compliance.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties such to an APO of their 
responsibility concerning the disposition of proprietary information 
disclosed under APO in accordance with 19 CFR 351.305(a)(3). Timely 
written notification of the return or destruction of APO materials or, 
alternatively, conversion to judicial protective order, is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation that is subject to sanction.

Notification to Interested Parties

    This determination is published pursuant to section 705(d) and 
777(i) of the Act and 19 CFR 351.210(c).

    Dated: August 10, 2018.
James Maeder,
Associate Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations performing the duties of Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations.

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 Final Decision Memo

I. Summary
II. Background
III. Scope of The Investigation
IV. Final Determination of Critical Circumstances
V. Subsidies Valuation Information
VI. Benchmarks and Interest Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Discussion of the Issues
    Comment 1: The Application of AFA to Bebitz
    Comment 2: SHIS Licenses Discovered at Verification
    Comment 3: Echjay's Reporting of the Provision of Stainless 
Steel, Billet, and Bar by SAIL for LTAR
    Comment 4: Whether Sufficient Information Exists to Calculate a 
Subsidy Rate for EFIPL
    Comment 5: Whether AAP, DDB, EPCGS, SHIS, and IEIS are 
Countervailable
    Comment 6: Whether the GOI Provided Sufficient Information for 
Certain Programs
X. Conclusion

[FR Doc. 2018-17696 Filed 8-15-18; 8:45 am]
BILLING CODE 3510-DS-P