[Federal Register Volume 84, Number 40 (Thursday, February 28, 2019)]
[Notices]
[Pages 6767-6770]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03531]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-079]


Cast Iron Soil Pipe From the People's Republic of China: Final 
Affirmative Determination of Sales at Less Than Fair Value

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


[[Page 6768]]


SUMMARY: The Department of Commerce (Commerce) determines that cast 
iron soil pipe from the People's Republic of China (China) is being, or 
is likely to be, sold in the United States at less than fair value 
(LTFV). The period of investigation is July 1, 2017, through December 
31, 2017.

DATES: Applicable February 28, 2019.

FOR FURTHER INFORMATION CONTACT: Javier Barrientos, 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) 482-2243.

SUPPLEMENTARY INFORMATION:

Background

    On August 31, 2018, Commerce published in the Federal Register the 
Preliminary Determination in the LTFV investigation of cast iron soil 
pipe from China.\1\ The sole participating mandatory respondent in this 
investigation is Yucheng Jiangxian Economic Development Zone HengTong 
Casting Co., Ltd. (HengTong). Commerce exercised its discretion to toll 
all deadlines affected by the closure of the Federal Government from 
December 22, 2018, through the resumption of operations on January 29, 
2019. The revised deadline for the final determination of this 
investigation is now February 22, 2019.\2\
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    \1\ See Cast Iron Soil Pipe From the People's Republic of China: 
Preliminary Affirmative Determination of Sales at Less Than Fair 
Value and Postponement of Final Determination, 83 FR 44567 (August 
31, 2018) (Preliminary Determination) and accompanying Preliminary 
Decision Memorandum.
    \2\ See Memorandum for The Record from Gary Taverman, 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 Partial 
Shutdown of the Federal Government'' (Tolling Memorandum), dated 
January 28, 2019. All deadlines in this segment of the proceeding 
have been extended by 40 days.
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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 interested 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 Issues and Decision 
Memorandum and the electronic version are identical in content.
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    \3\ See Commerce Memorandum, ``Issues and Decision Memorandum 
for the Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Cast Iron Soil Pipe from the People's Republic of 
China,'' dated concurrently with, and hereby adopted by, this notice 
(Issues and Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation is cast iron soil pipe 
from China. For a full description of the scope of this investigation, 
see the ``Scope of the Investigation'' in Appendix I of this notice. 
Commerce issued a scope memorandum addressing interested parties' 
comments regarding scope issues presented in the case briefs and in 
subsequent scope comments with the Preliminary Determination.\4\ 
Commerce's scope is unchanged from the Preliminary Determination. For 
further discussion, see Commerce's Scope Memorandum. The scope in 
Appendix I reflects the final scope language.
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    \4\ See Commerce Memorandum, ``Cast Iron Soil Pipe From People's 
Republic of China: Preliminary Scope Comment Decision Memorandum,'' 
dated August 24, 2018 (Scope Memorandum).
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Analysis of Comments Received

    The issues raised in the case and rebuttal briefs submitted by 
parties in this investigation are addressed 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.

China-Wide Entity and Use of Adverse Facts Available

    As stated in the Preliminary Determination, Sibo International 
Limited (Sibo) was selected as a mandatory respondent and, accordingly, 
we issued it our antidumping duty questionnaire.\5\ However, Sibo never 
responded to our request for information. Therefore, we found that Sibo 
failed to demonstrate its eligibility for a separate rate, and, as a 
result, considered it to be part of the China-wide entity.\6\ For the 
reasons explained in the Preliminary Determination, we continue to find 
that the use of adverse facts available (AFA), pursuant to sections 
776(a) and (b) of the Act, is warranted in determining the rate for the 
China-wide entity, which includes Sibo, and other uncooperative 
respondents.
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    \5\ See Preliminary Decision Memorandum at 2.
    \6\ Id.at 11.
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China-Wide Rate

    In selecting the AFA rate for the China-wide entity, Commerce's 
practice is to select a rate that is sufficiently adverse to ensure 
that the uncooperative party does not obtain a more favorable result by 
failing to cooperate than if it had fully cooperated.\7\ Specifically, 
it is Commerce's practice to select, as an AFA rate, the higher of: (a) 
The highest dumping margin alleged in the petition; or, (b) the highest 
calculated dumping margin of any respondent in the investigation.\8\ 
For the final determination, we assigned the China-wide entity, as AFA, 
a dumping margin of 235.93 percent. Because this rate was a calculated 
rate, based on a mandatory respondent's data in this segment of the 
proceeding, it does not constitute secondary information and, 
therefore, there is no need to corroborate it.
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    \7\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value and Postponement of Final Determination: 
Purified Carboxymethyl Cellulose from Finland, 69 FR 77216 (December 
27, 2004), unchanged in Notice of Final Determination of Sales at 
Less Than Fair Value: Purified Carboxymethyl Cellulose from Finland, 
70 FR 28279 (May 17, 2005).
    \8\ See, e.g., Certain Stilbenic Optical Brightening Agents from 
the People's Republic of China: Final Determination of Sales at Less 
Than Fair Value, 77 FR 17436, 17438 (March 26, 2012); Final 
Determination of Sales at Less Than Fair Value: Certain Cold-Rolled 
Flat-Rolled Carbon Quality Steel Products from the People's Republic 
of China, 65 FR 34660 (May 31, 2000), and accompanying Issues and 
Decision Memorandum.
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Separate Rates

    For the final determination, we continue to find that HengTong is 
eligible for a separate rate, as noted below. Section 735(c)(5)(A) of 
Tariff Act of 1930, as amended (the Act) provides that the estimated 
``all-others'' 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 zero or de 
minimis margins, and any margins determined entirely under section 776 
of Act. In this proceeding, Commerce calculated an above-de minimis 
rate that is not based entirely on facts available for the only 
responding mandatory respondent under individual examination, i.e., 
HengTong. Thus, consistent with our practice, we are assigning the sole 
mandatory respondent's rate as the rate for non-individually examined 
companies that have qualified for a

[[Page 6769]]

separate rate.\9\ This long-standing practice is also Court-
affirmed.\10\
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    \9\ See, e.g., Hydrofluorocarbon Blends and Components Thereof 
from the People's Republic of China: Final Determination of Sales at 
Less Than Fair Value and Final Affirmative Determination of Critical 
Circumstances, 81 FR 42314, 42316 (June 29, 2016) (``Under section 
735(c)(5)(A) of the Act, the rate for all other companies that have 
not been individually examined is normally 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 on the basis of facts available. In this final 
determination, {Commerce{time}  has calculated a rate for TTI that 
is not zero, de minimis, or based entirely on facts available. 
Therefore, {Commerce{time}  has assigned to the companies that have 
not been individually examined, but have demonstrated their 
eligibility for a separate rate, a margin of 101.82 percent, which 
is the rate for TTI.''); Certain Corrosion Resistant Steel Products 
from the People's Republic of China: Final Determination of Sales at 
Less Than Fair Value, and Final Affirmative Critical Circumstances 
Determination, in Part, 81 FR 35316, 35317 (June 2, 2016) (``In this 
final determination, we calculated a weighted-average dumping margin 
for Yieh Phui (the only cooperating mandatory respondent) which is 
not zero, de minimis, or based entirely on facts available. 
Accordingly, we determine to use Yieh Phui's weighted-average 
dumping margin as the margin for the separate rate companies.''); 
Narrow Woven Ribbons with Woven Selvedge from Taiwan; Preliminary 
Results of Antidumping Duty Administrative Review; 2013-2014, 80 FR 
60627, 60627 (October 7, 2015) unchanged in Narrow Woven Ribbons 
with Woven Selvedge from Taiwan; Final Results of Antidumping Duty 
Administrative Review; 2013-2014, 81 FR 22578 (April 18, 2016).
    \10\ See, e.g., Changzhou Wujin Fine Chemical Factory Co., Ltd., 
v. United States, 942 F. Supp. 2d 1333, 1339 (CIT 2013); Longkou 
Haimeng Mach. Co. v. United States, 581 F. Supp. 2d 1344, 1357-60 
(CIT 2008) (affirming Commerce's decision to assign a 4.22 percent 
dumping margin to the separate rate respondents in a segment where 
the three mandatory respondents received dumping margins of 4.22 
percent, 0.03 percent, and zero percent, respectively).
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Combination Rates

    In the Initiation Notice,\11\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Accordingly, we 
have assigned combination rates to certain companies, as provided in 
the ``Final Determination'' section below.
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    \11\ See Cast Iron Soil Pipe from the People's Republic of 
China: Initiation of Less-Than-Fair-Value Investigation, 83 FR 8053 
(February 23, 2018) (Initiation Notice).
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from 
interested parties and our findings at verification, we made certain 
changes to the calculation of the antidumping duty margin applicable to 
HengTong. For a discussion of these changes, see the Issues and 
Decision Memorandum.

Final Determination

    Commerce determines that cast iron soil pipe from China are being, 
or are likely to be, sold in the United States at LTFV, and that the 
following dumping margins exist:

------------------------------------------------------------------------
                                                       Weighted- average
           Producer                    Exporter          dumping margin
                                                           (percent)
------------------------------------------------------------------------
Yucheng Jiangxian Economic      Yucheng Jiangxian                 235.93
 Development Zone HengTong       Economic Development
 Casting Co., Ltd.               Zone HengTong
                                 Casting Co., Ltd.
Wu'An Yongtian Casting Co.,     Dalian Lino F.T.Z.                235.93
 Ltd.                            Co., Ltd.
Yangcheng County Huawang        Dalian Lino F.T.Z.                235.93
 Universal Spun Cast Pipe        Co., Ltd.
 Foundry.
Qinshui Shunshida Casting Co.,  Dalian Metal I/E Co.,             235.93
 Ltd.                            Ltd.
Wu'an Yongtian Casting Co.,     Dalian Metal I/E Co.,             235.93
 Ltd.                            Ltd.
Zezhou Golden Autumn Foundry    Dalian Metal I/E Co.,             235.93
 Co., Ltd.                       Ltd.
Qinshui Shunshida Casting Co.,  Dinggin Hardware                  235.93
 Ltd.                            (Dalian) Co., Ltd.
Wu'an Kerui xin Machinery       Dinggin Hardware                  235.93
 Manufacturing Co., Ltd.         (Dalian) Co., Ltd.
Wu'an Yongtian Casting Co.,     Dinggin Hardware                  235.93
 Ltd.                            (Dalian) Co., Ltd.
Wuan City Feixiang Metal        Dinggin Hardware                  235.93
 Product Co., Ltd.               (Dalian) Co., Ltd.
DingXiang County YuTai Casting- Hebei Metals &                    235.93
 Forging Co., Ltd.               Engineering Products
                                 Trading Co., Ltd.
Qinshui Shunshida Casting Co.,  Hebei Metals &                    235.93
 Ltd.                            Engineering Products
                                 Trading Co., Ltd.
Qinshui Shunshida Casting Co.,  Kingway Pipe Co., Ltd             235.93
 Ltd.
Zezhou Golden Autumn Foundry    Kingway Pipe Co., Ltd             235.93
 Co., Ltd.
Qinshui Shunshida Casting Co.,  Qinshui Shunshida                 235.93
 Ltd.                            Casting Co., Ltd.
Qinshui Shunshida Casting Co.,  Shanxi Chen Xin Da                235.93
 Ltd.                            Castings & Forgings
                                 Co., Ltd.
Shanxi Xuanshi Industrial       Shanxi Xuanshi                    235.93
 Group Co., Ltd.                 Industrial Group
                                 Co., Ltd.
Qinshui Shunshida Casting Co.,  Shanxi Zhongrui                   235.93
 Ltd.                            Tianyue Trading Co.,
                                 Ltd.
Qinshui Shunshida Casting Co.,  Terrifour (Dalian)                235.93
 Ltd.                            Trading Co., Ltd.
Shanxi Chengda Special Forging  Terrifour (Dalian)                235.93
 Co., Ltd.                       Trading Co., Ltd.
Wuan City Feixiang Metal        Wuan City Feixiang                235.93
 Product Co., Ltd.               Metal Product Co.,
                                 Ltd.
Zezhou Golden Autumn Foundry    Zezhou Golden Autumn              235.93
 Co., Ltd.                       Foundry Co., Ltd.
------------------------------------------------------------------------
CHINA-WIDE ENTITY....................................             235.93
------------------------------------------------------------------------

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this final 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 final 
determination in the Federal Register, in accordance with 19 CFR 
351.224(b).

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, we will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all entries of cast iron soil pipe from China, 
as described in the ``Scope of the Investigation'' section, exported by 
HengTong, entered or withdrawn from warehouse, for consumption on or 
after August 31, 2018, the date of publication of the Preliminary 
Determination notice in the Federal Register.
    To determine the cash deposit rate, Commerce normally adjusts the

[[Page 6770]]

estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce makes an 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.
    In addition, pursuant to section 735(c)(1)(B)(ii) of the Act, 
Commerce will instruct CBP to require a cash deposit equal to the 
weighted-average amount by which NV exceeds U.S. price as follows: (1) 
The cash deposit rate for the exporter/producer combination listed in 
the table above will be the rate identified for that combination in the 
table; (2) for all combinations of exporters/producers of merchandise 
under consideration that have not received their own separate rate 
above, the cash-deposit rate will be the cash deposit rate established 
for the China-wide entity; and (3) for all non-Chinese exporters of the 
merchandise under consideration which have not received their own 
separate rate above, the cash deposit rate will be the cash deposit 
rate applicable to the Chinese exporter/producer combination that 
supplied that non-Chinese exporter. These suspension of liquidation 
instructions will remain in effect until further notice.

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. As Commerce's final determination is 
affirmative, in accordance with section 735(b)(2) of the Act, the ITC 
will determine, within 45 days, whether the domestic industry in the 
United States is materially injured, or threatened with material 
injury, by reason of imports of cast iron soil pipe from China, or 
sales (or the likelihood of sales) for importation, of cast iron soil 
pipe from China. If the ITC determines that such injury does not exist, 
this proceeding will be terminated and all securities posted will be 
refunded or canceled. If the ITC determines that such injury does 
exist, Commerce intends to 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.

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

    Dated: February 22, 2019.
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 cast iron soil 
pipe, whether finished or unfinished, regardless of industry or 
proprietary specifications, and regardless of wall thickness, 
length, diameter, surface finish, end finish, or stenciling. The 
scope of this investigation includes, but is not limited to, both 
hubless and hub and spigot cast iron soil pipe. Cast iron soil pipe 
is nonmalleable iron pipe of various designs and sizes. Cast iron 
soil pipe is generally distinguished from other types of 
nonmalleable cast iron pipe by the manner in which it is connected 
to cast iron soil pipe fittings.
    Cast iron soil pipe is classified into two major types--hubless 
and hub and spigot. Hubless cast iron soil pipe is manufactured 
without a hub, generally in compliance with Cast Iron Soil Pipe 
Institute (CISPI) specification 301 and/or American Society for 
Testing and Materials (ASTM) specification A888, including any 
revisions to those specifications. Hub and spigot pipe has one or 
more hubs into which the spigot (plain end) of a fitting is 
inserted. All pipe meeting the physical description set forth above 
is covered by the scope of this investigation, whether or not 
produced according to a particular standard.
    The subject imports are currently classified in subheading 
7303.00.0030 of the Harmonized Tariff Schedule of the United States 
(HTSUS): Cast iron soil pipe. The HTSUS subheading and 
specifications are provided for convenience and customs purposes 
only; the written description of the scope of this investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. China-Wide Rate
IV. Separate Rates
V. Scope Comments
VI. Adjustments for Countervailable Export Subsidies
VII. Changes Since the Preliminary Determination
VIII. Discussion of the Issues
    Comment 1: Incorporation of Minor Corrections
    Comment 2: Surrogate Value for Pig Iron
    Comment 3: Surrogate Value for Plastic Strips
    Comment 4: Surrogate Value for Plywood Boards
    Comment 5: Ocean Freight Adjustment
    Comment 6: Surrogate Value for Asphalt Paint
    Comment 7: Aberrational Surrogate Values
    Comment 8: Non-Refundable Value-Added Tax (VAT)
IX. Recommendation

[FR Doc. 2019-03531 Filed 2-27-19; 8:45 am]
 BILLING CODE 3510-DS-P