[Federal Register Volume 83, Number 194 (Friday, October 5, 2018)]
[Notices]
[Pages 50342-50344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21734]



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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-068]


Forged Steel Fittings From the People's Republic of China: Final 
Affirmative Countervailing Duty Determination

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 forged steel fittings from the People's Republic of China (China).

DATES: Applicable October 5, 2018.

FOR FURTHER INFORMATION CONTACT: Brian Smith or Janae Martin, 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) 482-1766 or (202) 
482-0238, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 14, 2018, Commerce published in the Federal Register the 
Preliminary Determination.\1\ The selected mandatory respondents in 
this investigation are Beijing Bell Plumbing Mfg., Ltd. (Beijing Bell) 
and Both-Well (Taizhou) Steel Fittings, Co., Ltd. (Both-Well). In the 
Preliminary Determination, in accordance with section 705(a)(1) of the 
Act and 19 CFR 351.210(b)(4), Commerce aligned the final CVD 
determination with the final antidumping duty (AD) determination. The 
revised deadline for the final determination of this investigation is 
now October 1, 2018. On May 25, 2018, Commerce issued its Post-
Preliminary Analysis.\2\
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    \1\ See Forged Steel Fittings from the People's Republic of 
China: Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination With Final Antidumping Duty 
Determination, 83 FR 11170 (March 14, 2018) (Preliminary 
Determination).
    \2\ See Memorandum to Gary Taverman, ``Post-Preliminary Analysis 
of Countervailing Duty Investigation: Forged Steel Fittings from the 
People's Republic of China,'' dated May 25, 2018 (Post-Preliminary 
Analysis).
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    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 
Issues and Decision Memorandum issued concurrently with this notice.\3\ 
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 http://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/frn/. The signed and electronic 
versions of the Issues and Decision Memorandum are identical in 
content.
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    \3\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
Investigation of Forged Steel Fittings from the People's Republic of 
China,'' dated concurrently with this determination and hereby 
adopted by this notice (Issues and Decision Memorandum).
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Period of Investigation

    The period of investigation (POI) is January 1, 2016, through 
December 31, 2016.

Scope of the Investigation

    The products covered by this investigation are forged steel 
fittings from China. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation'' in Appendix I.

Scope Comments

    During the course of this investigation and the concurrent 
antidumping investigations of forged steel fittings from China, Italy, 
and Taiwan, Commerce received numerous scope comments from interested 
parties. Commerce issued a Preliminary Scope Decision Memorandum \4\ 
and a Second Preliminary Scope Decision Memorandum \5\ to address these 
comments. For a summary of the product coverage comments and rebuttals 
submitted to the records of this investigation and the concurrent 
antidumping investigations of forged steel fittings from China, Italy, 
and Taiwan for consideration in the final determinations, and our 
accompanying discussion and analysis of them, see the Final Scope 
Decision Memorandum, issued on July 23, 2018, concurrent with the final 
determination in the antidumping duty investigation of forged steel 
fittings from Taiwan.\6\ See Appendix I for the final scope of the 
investigation.
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    \4\ See Memorandum to the File, ``Scope Comments Decision 
Memorandum for the Preliminary Determinations,'' dated March 7, 2018 
(Preliminary Scope Decision Memorandum).
    \5\ See Memorandum to the File, ``Second Preliminary Scope 
Decision Memorandum,'' dated May 7, 2018 (Second Preliminary Scope 
Decision Memorandum).
    \6\ 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 provided in section 782(i) of the Act, in May 2018, we conducted 
verification of the questionnaire response submitted by Both-Well, the 
information submitted by the Government of China (GOC) with respect to 
one program (Provision of Special Bar Quality Bar for Less Than 
Adequate Remuneration), and the no-shipment claim submitted by Beijing 
Bell.\7\ We used standard verification procedures, including an 
examination of relevant accounting and financial records, and original 
source documents.
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    \7\ See Commerce Memoranda, ``Verification of the Questionnaire 
Responses of the Government of the People's Republic of China: 
Countervailing Duty Investigation of Forged Steel Fittings from the 
People's Republic of China,'' dated June 25, 2018 (GOC Verification 
Report); ``Verification of Beijing Bell Plumbing Mfg., Ltd.'s Claim 
of No Sales of Subject Merchandise to the U.S. Market During the 
Period of Investigation: Countervailing Duty Investigation of Forged 
Steel Fittings from the People's Republic of China,'' dated June 28, 
2018 (Beijing Bell Verification Report); and ``Verification of the 
Questionnaire Responses of Both-Well (Taizhou) Steel Fittings, Co., 
Ltd.: Countervailing Duty Investigation of Forged Steel Fittings 
from the People's Republic of China,'' dated August 7, 2018 (Both-
Well Verification Report).
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Analysis of Subsidy Programs and Comments Received

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

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found countervailable, Commerce determines that there 
is a subsidy, i.e. , a financial contribution by an ``authority'' that 
gives rise to a benefit to the recipient, and that the subsidy is 
specific.\8\ For a full description of the methodology

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underlying our final determination, see the Issues and Decision 
Memorandum.
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    \8\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    In making this final determination, Commerce relied, in part, on 
facts available pursuant to section 776(a) of the Act. Additionally, as 
discussed in the Issues and Decision Memorandum, because the GOC did 
not act to the best of its ability in responding to our requests for 
information, we drew adverse inferences, where appropriate, in 
selecting from among the facts otherwise available, pursuant to section 
776(b) of the Act.\9\ For further information, see the section ``Use of 
Facts Otherwise Available and Adverse Inferences'' in the accompanying 
Issues and Decision Memorandum.
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    \9\ See Issues and Decision Memorandum at ``Use of Facts 
Otherwise Available and Adverse Inferences'' section.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
parties, minor corrections presented at verification, and our 
verification findings, we made certain changes to Both-Well's subsidy 
rate calculations. For a discussion of these changes, see the Issues 
and Decision Memorandum.

Final Determination

    In accordance with section 705(c)(l)(B)(i) of the Act, we 
calculated a subsidy rate for Both-Well, a producer/exporter of subject 
merchandise selected for individual examination in this investigation. 
Based on our verification findings, we determine that the other 
mandatory respondent in this investigation, Beijing Bell, did not 
export subject merchandise to the United States during the period of 
this investigation.\10\ Therefore, we did not calculate a subsidy rate 
for Beijing Bell.
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    \10\ See Beijing Bell Verification Report at 4-7.
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    Section 705(c)(5)(A) of the Act provides that in the final 
determination, Commerce shall determine an estimated all-others rate 
for companies not individually examined. This rate shall be an amount 
equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    In this investigation, Commerce calculated an individual estimated 
countervailable subsidy rate for Both-Well that is not zero, de 
minimis, or based entirely on facts otherwise available. Because Both-
Well is the only individually examined exporter/producer in this 
investigation and its calculated rate is not zero, de minimis, or based 
entirely under section 776 of the Act, the estimated weighted-average 
rate calculated for Both-Well is the rate assigned to all-other 
producers and exporters, pursuant to section 705(c)(5)(A)(i) of the 
Act.
    Commerce determines that the following estimated countervailable 
subsidy rates exist:

------------------------------------------------------------------------
                                                                Subsidy
                           Company                               rate
                                                               (percent)
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Both-Well (Taizhou) Steel Fittings, Co., Ltd................       13.41
All-Others..................................................       13.41
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Disclosure

    We intend to disclose to parties in this proceeding the 
calculations performed for this final determination within five days of 
the date of publication of this notice, 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)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of entries 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 the Preliminary Determination in the 
Federal Register. 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 July 11, 2018, but to continue the suspension of 
liquidation of all entries from March 14, 2018, through July 10, 2018.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, reinstate 
the suspension of liquidation under section 706(a) of the Act, and 
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.

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 related 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 Assistant Secretary for Enforcement and Compliance.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/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 violation which is subject to sanction.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i) 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 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

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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 Issues and Decision Memorandum

I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Provision for Land for Less Than Adequate 
Remuneration (LTAR): Appropriate Benchmark
    Comment 2: Provision for Special Bar Quality(SBQ) Bar for LTAR: 
Whether Respondent's Input Is Comparable to SBQ Bar
    Comment 3: SBQ Bar for LTAR: Market Distortion Analysis
    Comment 4: Affiliated Party Sales
    Comment 5: Removing Value-Added Tax (VAT) From Reported Freight 
Data
    Comment 6: Removing VAT From Reported Electricity Data
    Comment 7: Application of Adverse Facts Available (AFA) 
Concerning Electricity
VII. Recommendation

 [FR Doc. 2018-21734 Filed 10-4-18; 8:45 am]
 BILLING CODE 3510-DS-P