[Federal Register Volume 84, Number 86 (Friday, May 3, 2019)]
[Notices]
[Pages 19039-19040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-09067]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-080]


Cast Iron Soil Pipe From the People's Republic of China: 
Countervailing Duty Order

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing the countervailing duty (CVD) order on cast iron 
soil pipe from the People's Republic of China (China).

DATES: Effective May 3, 2019.

FOR FURTHER INFORMATION CONTACT: Omar Qureshi at (202) 482-5307, AD/CVD 
Operations, Office V, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    In accordance with sections 705(a), 705(d), and 777(i) of the 
Tariff Act of 1930, as amended (Act), and 19 CFR 351.210(c), on 
February 28, 2019, Commerce published its affirmative final 
determination in the countervailing duty investigation of cast iron 
soil pipe from China.\1\
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    \1\ See Cast Iron Soil Pipe from the People's Republic of China: 
Final Affirmative Countervailing Duty Determination, 84 FR 6770 
(February 28, 2019) (Final Determination) and the accompanying 
Issues and Decision Memorandum (IDM).
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    On April 8, 2019, the ITC notified Commerce of its final 
affirmative determination that an industry in the United States is 
materially injured within the meaning of section 705(b)(1)(A)(i) of the 
Act by reason of imports of subject merchandise from China.\2\
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    \2\ See Letter to Gary Taverman, Acting Assistant Secretary of 
Commerce for Enforcement and Compliance, from David S. Johanson, 
Chairman of the U.S. International Trade Commission, dated April 8, 
2019 (ITC Letter).
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Scope of the Order

    The scope of this order covers cast iron soil pipe from China. For 
a complete description of the scope, see the Appendix to this notice.

Countervailing Duty Order

    On April 8, 2019, in accordance with section 705(d) of the Act, the 
ITC notified Commerce of its final determination that an industry in 
the United States is materially injured within the meaning of section 
705(b)(1)(A)(i) of the Act by reason of imports of cast iron soil pipe 
from China.\3\ Therefore, in accordance with sections 705(c)(2) and 706 
of the Act, Commerce is issuing this countervailing duty order. Because 
the ITC determined that imports of cast iron soil pipe from China are 
materially injuring a U.S. industry, unliquidated entries of such 
merchandise from China, entered or withdrawn from warehouse for 
consumption, are subject to the assessment of countervailing duties.
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    \3\ Id.
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    As a result of the ITC's final determination, in accordance with 
section 706(a) of the Act, Commerce will direct U.S. Customs and Border 
Protection (CBP) to assess, upon further instruction by Commerce, 
countervailing duties for all relevant entries of cast iron soil pipe 
from China. Countervailing duties will be assessed on unliquidated 
entries of cast iron soil pipe from China entered, or withdrawn from 
warehouse, for consumption on or after July 2, 2018, the date of 
publication of the Preliminary Determination,\4\ but will not include 
entries occurring after the expiration of the provisional measures 
period and before publication of the ITC's final affirmative injury 
determination as further described below.
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    \4\ See Cast Iron Soil Pipe from the People's Republic of China: 
Preliminary Affirmative Countervailing Duty, 83 FR 30914 (July 2, 
2018) (Preliminary Determination) and the accompanying Preliminary 
Decision Memorandum.
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Suspension of Liquidation

    In accordance with section 706 of the Act, we will instruct CBP to 
reinstitute suspension of liquidation on all relevant entries of cast 
iron soil pipe from China, effective on the date of publication of the 
ITC's notice of final determination in the Federal Register, and to 
assess, upon further instruction by Commerce pursuant to section 
706(a)(1) of the Act,\5\ countervailing duties for each entry of the 
subject merchandise in an amount based on the net countervailable 
subsidy rate for the subject merchandise. These instructions suspending 
liquidation will remain in effect until further notice. Commerce will 
also instruct CBP to require cash deposits equal to the amounts as 
indicated below. Accordingly, effective on the date of publication of 
the ITC's final affirmative injury determination, CBP will require, at 
the same time as importers would normally deposit

[[Page 19040]]

estimated duties on this subject merchandise, a cash deposit equal to 
the subsidy rates listed below.\6\
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    \5\ See Cast Iron Soil Pipe from China, Investigation Nos. 701-
TA-597 and 731-TA-1407 (Final), USITC Publication 4879 (April 2019).
    \6\ See section 706(a)(3) of the Act.
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Provisional Measures

    Section 733(d) of the Act states that instructions issued pursuant 
to an affirmative preliminary determination may not remain in effect 
for more than four months, except where exporters representing a 
significant proportion of exports of the subject merchandise request 
Commerce to extend that four-month period to no more than six months. 
At the request of mandatory respondent, HengTong Casting Co., Ltd., 
which accounts for a significant proportion of cast iron soil pipe from 
China, Commerce extended the four-month period to six months in this 
case.\7\ Commerce published its Preliminary Determination on July 2, 
2018. Therefore, the extended period, beginning on the date of 
publication of the Preliminary Determination, ended on December 29, 
2018. Furthermore, section 737(b) of the Act states that definitive 
duties are to begin on the date of publication of the ITC's final 
injury determination.
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    \7\ See Preliminary Determination, 83 FR at 44569.
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    Therefore, in accordance with section 733(d) of the Act and our 
practice, we will instruct CBP to terminate the suspension of 
liquidation and to liquidate, without regard to countervailing duties, 
unliquidated entries of cast iron soil pipe from China entered, or 
withdrawn from warehouse, for consumption on or after December 29, 
2018, the date the provisional measures expired, through the day 
preceding the date of publication of the ITC's final injury 
determination in the Federal Register. Suspension of liquidation will 
resume on the date of publication of the ITC's final determination in 
the Federal Register.
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    \8\ 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.
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Estimated Subsidy Margins

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                                                           Subsidy rate
                    Exporter/producer                        (percent)
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Kingway Pipe Co., Ltd...................................          109.27
Yuncheng Jiangxian Economic Development Zone HengTong              14.69
 Casting Co., Ltd \8\...................................
All-Others..............................................           14.69
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Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to cast iron soil pipe from China pursuant to section 706(a) of the 
Act. Interested parties can find a list of countervailing duty orders 
currently in effect at http://enforcement.trade.gov/stats/iastats1.html.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: April 26, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Order

    The merchandise covered by this order 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 order 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 order, 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 order is 
dispositive.

[FR Doc. 2019-09067 Filed 5-2-19; 8:45 am]
 BILLING CODE 3510-DS-P