[Federal Register Volume 84, Number 40 (Thursday, February 28, 2019)]
[Notices]
[Pages 6770-6772]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03538]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-080]


Cast Iron Soil Pipe 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 cast iron soil pipe (soil pipe) from the People's Republic of China 
(China). The period of investigation is January 1, 2017, through 
December 31, 2017.

DATES: Applicable February 28, 2019.

FOR FURTHER INFORMATION CONTACT: Omar Qureshi or Annathea Cook, 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) 482-5307 or (202) 482-0250, 
respectively.

SUPPLEMENTARY INFORMATION: 

[[Page 6771]]

Background

    Commerce published the Preliminary Determination on July 2, 
2018.\1\ In the Preliminary Determination, Commerce aligned the final 
CVD determination with the final determination in the companion 
antidumping duty investigation, in accordance with section 705(a)(1) of 
the Act and 19 CFR 351.210(b)(4).
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    \1\ See Cast Iron Soil Pipe from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination and 
Alignment of Final Determination with Final Antidumping Duty 
Determination, 83 FR 30914 (July 2, 2018) (Preliminary 
Determination).
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    For a complete description of the events that followed the 
Preliminary Determination, see the Issues and Decision Memorandum.\2\ A 
list of topics discussed in the Issues and Decision Memorandum is 
included as Appendix II to this notice. 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 
Decisions 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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    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination of the Countervailing Duty 
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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    Commerce exercised its discretion to toll all deadlines affected by 
the partial federal government closure from December 22, 2018, through 
the resumption of operations on January 29, 2019.\3\ If the new 
deadline falls on a non-business day, in accordance with Commerce's 
practice, the deadline will become the next business day. The revised 
deadline for the final determination is now February 22, 2019.
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    \3\ See Memorandum ``Deadlines Affected by the Partial Shutdown 
of the Federal Government,'' dated January 28, 2019. All deadlines 
in this segment of the proceeding have been extended by 40 days.
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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 Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case 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 is conducting this investigation in accordance with 
section 701 of 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.\5\ For a full 
description of the methodology underlying our final determination, see 
the Issues and Decision Memorandum.
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    \5\ 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 these findings, Commerce relied, in part, on facts 
otherwise available and, because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, Commerce drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\6\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Issues and Decision Memorandum.
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    \6\ See sections 776(a), (b), and 782(d) of the Act.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from the 
interested parties, our findings at verification, and our post-
preliminary analysis, we made certain changes to the respondents' 
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)(I) of the Act, we 
calculated a rate for HengTong, a producer/exporter of subject 
merchandise selected for individual examination in this investigation. 
With regard to Kingway Pipe Co., Ltd. (Kingway), for the reasons 
described in the Preliminary Determination, Commerce assigned a rate 
based entirely on adverse facts available pursuant to section 776 of 
the Act. No interested party commented on our preliminary decision, and 
so for purposes of this final determination, we continue to assign 
Kingway a rate based entirely on AFA.
    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. HengTong is the only respondent for which Commerce 
calculated an estimated weighted-average dumping margin that is not 
zero, de minimis, or based entirely on facts otherwise available. 
Therefore, for purposes of determining the ``all-others'' rate, and 
pursuant to section 735(c)(5)(A) of the Act, we are using the subsidy 
rate calculated for HengTong.
    Commerce determines that the following estimated countervailable 
subsidy rates exist:
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    \7\ Commerce initiated this proceeding on two respondents 
``Jiangxian Economic Development Zone Heng (Jiangxian) and Kingway 
Pipe Co Ltd (Kingway)'' based on CBP data. We have accepted 
HengTong's request to reflect its name as ``Yucheng Jiangxian 
Economic Development Zone HengTong Casting Co., Ltd. (HengTong)'' 
which is the name we have used in this proceeding.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Kingway Pipe Co., Ltd...................................          109.27
Yuncheng Jiangxian Economic Development Zone HengTong              14.69
 Casting Co., Ltd \7\...................................
All-Others..............................................           14.69
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Disclosure

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

[[Page 6772]]

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
sections 703(d)(1)(B) and (d)(2) of the Act, we instructed U.S. Customs 
and Border Protection (CBP) to suspend liquidation of any entries of 
merchandise under consideration from China that were entered, or 
withdrawn from warehouse, for consumption on or after July 2, 2018, 
which is the publication date 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 November 19, 2018, but to 
continue the suspension of liquidation of all entries from July 2, 
2018, through November 18, 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.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of countervailable subsidies are being provided to 
producers and exporters of soil pipe from China. Because Commerce's 
final determination is affirmative, in accordance with section 705(b) 
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 soil pipe from China 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 will be refunded or canceled. If the ITC determines that 
such injury does exist, Commerce will issue a countervailing duty order 
directing CBP to assess, upon further instruction by Commerce, 
countervailing 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 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: 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. Scope Comments
IV. Use of Facts Otherwise Available and Adverse Inferences
V. Subsidies Valuation
VI. Analysis of Programs
VII. Analysis of Comments
VIII. Recommendation

[FR Doc. 2019-03538 Filed 2-27-19; 8:45 am]
 BILLING CODE 3510-DS-P