[Federal Register Volume 83, Number 194 (Friday, October 5, 2018)]
[Notices]
[Pages 50345-50347]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21728]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-475-839]


Forged Steel Fittings From Italy: Final Determination of Sales at 
Less Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of forged steel fittings from Italy are being, or are likely to be, 
sold in the United States at less than fair value (LTFV).

DATES: Applicable October 5, 2018.

FOR FURTHER INFORMATION CONTACT: Michael Bowen at (202) 482-0768 or 
Brian Smith at (202) 482-1766, AD/CVD Operations, Office VIII, 
Enforcement and Compliance, International Trade Administration, U.S. 
Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 
20230.

SUPPLEMENTARY INFORMATION: 

Background

    On May 17, 2018, Commerce published in the Federal Register the 
Preliminary Determination and invited interested parties to comment.\1\ 
As no interested party submitted comments, we have made no changes to 
the estimated weighted-average dumping margins determined in the 
Preliminary Determination.
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    \1\ See Forged Steel Fittings from Italy: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Postponement of Final Determination and Extension of Provisional 
Measures, 83 FR 22954 (May 17, 2018) (Preliminary Determination), 
and accompanying Preliminary Decision Memorandum.
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Period of Investigation

    The period of investigation (POI) is October 1, 2016, through 
September 30, 2017.

Scope of the Investigation

    The products covered by this investigation are forged steel 
fittings from Italy. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation,'' at the Appendix 
to this notice.

Scope Comments

    During the course of this investigation and the concurrent 
investigations of forged steel fittings from the People's Republic of 
China (China) and Taiwan, Commerce received numerous scope comments 
from interested parties. Commerce issued a Preliminary Scope Decision 
Memorandum \2\ and a Second Preliminary Scope Decision Memorandum \3\ 
to address these comments. For a summary of the product coverage 
comments and rebuttals submitted to the records of this investigation 
and the concurrent investigations of forged steel fittings from China 
and Taiwan for consideration in the final determinations, and our 
accompanying discussion and analysis of them, see the Final Scope 
Decision Memorandum, issued July 23, 2018, concurrent with the final 
determination in the antidumping duty investigation of forged steel 
fittings from Taiwan.\4\
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    \2\ See Memorandum, ``Scope Comments Decision Memorandum for the 
Preliminary Determinations,'' dated March 7, 2018 (Preliminary Scope 
Decision Memorandum).
    \3\ See Memorandum, ``Second Preliminary Scope Decision 
Memorandum,'' dated May 17, 2018 (Second Preliminary Scope Decision 
Memorandum).
    \4\ See Memorandum, ``Forged Steel Fittings from China, Italy 
and Taiwan: Final Scope Determination Decision Memorandum,'' dated 
July 23, 2018 (Final Scope Decision Memorandum); see also, 
Memorandum to the File, ``Placing Carbon Steel Butt Weld Pipe 
Fitting Scope Information Ruling on the Record,'' dated September 
19, 2018.
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Verification

    As stated in the Preliminary Decision Memorandum, Officine Nicola 
Galperti

[[Page 50346]]

e Figlio S.p.A. (Galperti) and Pegasus S.R.L. (Pegasus) each claimed 
that it did not produce or export to the United States forged steel 
fittings from Italy during the POI.\5\ Pursuant to section 782(i) of 
the Tariff Act of 1930, as amended (the Act), on July 19-23, 2018, we 
conducted verification of these companies' claims using standard 
verification procedures, including an examination of relevant 
accounting records and original source documents. As a result of the 
verification, we confirmed that neither Galperti nor Pegasus produced 
or sold subject merchandise during the POI.\6\ As explained further 
below, mandatory respondents, M.E.G.A. S.p.A. (MEGA) and I.M.L. 
Industria Meccanica Ligure S.p.A. (IML), withdrew from participation in 
the investigation; therefore, we did not verify the information on the 
record with respect to either company.\7\
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    \5\ See Preliminary Decision Memorandum at 5.
    \6\ See Memorandum, ``Verification of Officine Nicola Galperti e 
Figlio S.p.A.,'' and Memorandum, ``Verification of Pegasus S.R.L.,'' 
both dated August 27, 2018.
    \7\ See Letter from MEGA, ``Forged Steel Fittings from Italy: 
Notice of M.E.G.A. S.p.A. Declining Participation in On-Site 
Verification,'' dated July 2, 2018 (MEGA's Notice of Non-
Participation); and Letter from IML, ``I.M.L. S.p.A. Italy will not 
participate,'' dated April 18, 2018 (IML's Notice of Non-
Participation).
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Use of Adverse Facts Available

    In the Preliminary Determination, we based the estimated weighted-
average dumping margins for both MEGA and IML on facts available with 
an adverse inference (AFA), pursuant to sections 776(a)(1), 
776(a)(2)(A)-(C), and 776(b) of the Act, because those respondents 
failed to cooperate to the best of their ability in responding to our 
requests for information.\8\ Specifically, MEGA failed to respond fully 
to our requests for information regarding its reported cost 
reconciliation,\9\ and IML submitted a notice of non-participation 
after failing to submit sections B, C, D, and supplemental section A 
questionnaire responses.\10\ As stated in the Preliminary 
Determination, we provided MEGA an opportunity to remedy its deficient 
cost reporting, and upon receiving a complete supplemental 
questionnaire response, we notified MEGA that we intended to verify 
MEGA's information.\11\ However, MEGA subsequently filed a letter 
declining participation in the intended on-site verification.\12\
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    \8\ See Preliminary Decision Memorandum at 5.
    \9\ Id. at 7-8.
    \10\ Id. at 8-9. See also IML's Notice of Non-Participation.
    \11\ See Preliminary Determination at 83 FR 22955.
    \12\ See MEGA's Notice of Non-Participation.
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    No parties filed comments on our Preliminary Determination with 
respect to MEGA and IML, and there is no new information on the record 
that would cause us to reverse our preliminary AFA determination. With 
respect to MEGA, in the Preliminary Determination, we relied on 
sections 776(a)(1) and 776(a)(2)(A)-(B) of the Act because MEGA had, at 
that point, failed to provide an adequate cost reconciliation in 
response to our requests for such information. After the Preliminary 
Determination, as explained above, MEGA provided adequate responses to 
our requests for information for its cost reconciliation, but then 
refused to participate in verification.\13\ In light of MEGA's refusal 
to participate in verification, we now determine that selection from 
among the facts otherwise available is warranted under section 
776(a)(2)(C) of the Act, because MEGA significantly impeded the 
proceeding by refusing to participate in verification, and section 
776(a)(2)(D) of the Act, because MEGA provided information that could 
not be verified.
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    \13\ Id.
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    Our finding with respect to IML remains the same as in the 
Preliminary Determination. No changes have been made to the record 
since the Preliminary Determination with regards to IML.
    Accordingly, we continue to find that the use of an adverse 
inference in selecting from among the facts otherwise available 
pursuant to sections 776(a) and (b) of the Act is warranted with 
respect to MEGA and IML, because MEGA and IML have failed to cooperate 
by not acting to the best of their ability to comply with our requests 
for information by withdrawing from participation in the investigation. 
In selecting an appropriate AFA rate, we continue to assign to MEGA's 
and IML's entries of subject merchandise the highest dumping margin 
alleged in the Petition, 80.20 percent,\14\ which has been corroborated 
to the extent practicable within the meaning of section 776(c) of the 
Act.\15\
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    \14\ See Petitions for the Imposition of Antidumping and 
Countervailing Duties: Forged Steel Fittings from the People's 
Republic of China, Italy, and Taiwan, Volume IV, dated October 5, 
2017 (Petition); see also Letter from the petitioners, ``Response to 
Second Supplemental Question,'' dated October 17, 2017 (Petition 
Amendment) at Exhibit IV-18; and Memorandum, ``Antidumping Duty 
Investigation Initiation Checklist: Forged Steel Fittings from 
Italy; A-475-839,'' dated October 25, 2017 (Initiation Checklist) at 
9.
    \15\ See Preliminary Decision Memorandum at 10-11.
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All-Others Rate

    As discussed in the Preliminary Determination, we assigned the 
simple average of the dumping margins alleged in the Petition, 49.43 
percent,\16\ as the ``All-Others'' rate, in accordance with section 
735(c)(5)(B) of the Act. We made no changes to the selection of this 
rate for this final determination.
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    \16\ See Petition and Petition Amendment; see also Preliminary 
Decision Memorandum at 11-12.
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Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                    Estimated weighted-
                Exporter/producer                     average dumping
                                                      margin (percent)
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M.E.G.A. S.p.A...................................                  80.20
I.M.L. Industria Meccanica Ligure S.p.A..........                  80.20
All-Others.......................................                  49.43
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Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, for this final 
determination, we will direct U.S. Customs and Border Protection (CBP) 
to continue to suspend liquidation of all entries of forged steel 
fittings from Italy, as described in the Appendix to this notice, which 
are entered, or withdrawn from warehouse, for consumption on or after 
May 17, 2018, the date of publication in the Federal Register of the 
affirmative Preliminary Determination.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), we will instruct CBP to require a cash deposit for such 
entries of merchandise equal to the estimated weighted-average dumping 
margin as follows: (1) The cash deposit rate for the respondents listed 
above will be equal to the respondent-specific estimated weighted-
average dumping margin determined in this final determination; (2) if 
the exporter is not a respondent identified above but the producer is, 
then the cash deposit rate will be equal to the respondent-specific 
estimated weighted-average dumping margin established for that producer 
of the subject merchandise; and (3) the cash deposit rate for all other 
producers and exporters will be equal to the all-others estimated 
weighted-average dumping margin.

Disclosure

    The estimated weighted-average dumping margins determined in this 
investigation are based on AFA. As these estimated weighted-average

[[Page 50347]]

dumping margins are based on the rates calculated in the Petition 
Amendment, and because we made no changes to these rates since the 
Preliminary Determination, no disclosure of calculations is necessary 
for this final determination.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
is affirmative, in accordance with section 735(b)(2) of the Act, the 
ITC will make its final determination as to whether the domestic 
industry in the United States is materially injured, or threatened with 
material injury, by reason of imports or sales (or the likelihood of 
sales) for importation of forged steel fittings, no later than 45 days 
after this final determination. If the ITC determines that such injury 
does not exist, this proceeding will be terminated and all cash 
deposits posted will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue an antidumping duty order 
directing CBP to assess, upon further instruction by Commerce, 
antidumping duties on all imports of the subject merchandise entered, 
or withdrawn from warehouse, for consumption on or after the effective 
date of the suspension of liquidation, as discussed above in the 
``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    This notice will serve as a reminder to parties subject to an 
administrative protective order (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 return or destruction of APO materials, or conversion 
to judicial protective order, is hereby requested. Failure to comply 
with the regulations and terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act and 19 CFR 351.210(c).

    Dated: October 1, 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.

[FR Doc. 2018-21728 Filed 10-4-18; 8:45 am]
 BILLING CODE 3510-DS-P