[Federal Register Volume 84, Number 199 (Tuesday, October 15, 2019)]
[Notices]
[Pages 55141-55142]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22430]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-872]


Finished Carbon Steel Flanges From India: Preliminary Results of 
Countervailing Duty Administrative Review, 2016-2017

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that Norma (India) Ltd. (Norma) and R.N. Gupta & Co. Ltd (RNG) received 
countervailable subsidies during the period of review (POR), November 
29, 2016 through December 31, 2017. Interested parties are invited to 
comment on these preliminary results.

DATES: Applicable October 15, 2019.

FOR FURTHER INFORMATION CONTACT: Yasmin Bordas or John McGowan, AD/CVD 
Operations, Office VI, Enforcement and Compliance, International Trade 
Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230; telephone: (202) 482-3813 and (202) 482-3019, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    On August 24, 2017, Commerce published a notice of initiation of an 
administrative review of the countervailing duty (CVD) order on 
finished carbon steel flanges (steel flanges) from India.\1\ 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.\2\ On June 5, 2019, and 
September 20, 2019, Commerce extended the deadline for issuing the 
preliminary results of this review.\3\ The revised deadline for these 
Preliminary Results is now October 9, 2019. For a complete description 
of the events that followed the initiation of this review, see the 
Preliminary Decision Memorandum.\4\ A list of topics discussed in the 
Preliminary Decision Memorandum is included at the Appendix to this 
notice. The Preliminary 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 Commerce building. In addition, a complete version of the 
Preliminary Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the 
Preliminary Decision Memorandum are identical in content.
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    \1\ See Finished Carbon Steel Flanges from India: Countervailing 
Duty Order, 82 FR 40138 (August 24, 2017) (Order).
    \2\ See Memorandum to the Record from 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, ``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.
    \3\ See Memoranda, ``Finished Carbon Steel Flanges from India: 
Extension of Deadline for Preliminary Results of Countervailing Duty 
Administrative Review; 11/29/2016-12/31/2017,'' dated June 5, 2019; 
and ``Finished Carbon Steel Flanges from India: Extension of 
Deadline for Preliminary Results of Countervailing Duty 
Administrative Review; 11/29/2016-12/31/2017,'' dated September 20, 
2019.
    \4\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Countervailing Duty Administrative Review of Finished 
Carbon Steel Flanges from India,'' dated concurrently with, and 
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Order

    The merchandise covered by the order is steel flanges. For a 
complete description of the scope of the order, see the Preliminary 
Decision Memorandum.

Methodology

    Commerce is conducting this review in accordance with section 
751(a)(l)(A) of the Tariff Act of 1930, as amended (the Act). For each 
of the subsidy programs found countervailable, we preliminarily 
determine that there is a subsidy, i.e., a government-provided 
financial contribution 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 conclusions, see the accompanying 
Preliminary 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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Companies Not Selected for Individual Review

    For the companies not selected for individual review, because the 
rates calculated for Norma and RNG were above de minimis and not based 
entirely on facts available, we applied a subsidy rate based on a 
weighted-average of the subsidy rates calculated for Norma and RNG 
using publicly-ranged sales data submitted by the respondents. This is 
consistent with the methodology that we would use in an investigation 
to establish the all-others rate, consistent with section 705(c)(5)(A) 
of the Act.

Preliminary Results of Review

    In accordance with 19 CFR 351.224(b)(4)(i), we calculated 
individual subsidy rates for Norma and RNG. For the period November 29, 
2016 through December 31, 2017, we preliminarily determine that the 
following net subsidy rates exist:
     
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    \6\ We note that cross-ownership exists between Norma (India) 
Ltd., USK Export Private Limited (USK), Uma Shanker Khandelwal and 
Co., (UMA) and Bansidhar Chiranjilal (BCL). See Preliminary Decision 
Memorandum at 8-9.

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                            (percent ad
                                                             valorem)
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Norma (India) Ltd \6\...................................            6.56
R.N. Gupta & Co. Ltd....................................            4.79
Adinath International...................................            5.63
Allena Group............................................            5.63
Alloyed Steel...........................................            5.63
Bebitz Flanges Works Private Limited....................            5.63
C.D. Industries.........................................            5.63
CHW Forge...............................................            5.63
CHW Forge Pvt. Ltd......................................            5.63
Citizen Metal Depot.....................................            5.63
Corum Flange............................................            5.63
DN Forge Industries.....................................            5.63
Echjay Forgings Limited.................................            5.63
Falcon Valves and Flanges Private Limited...............            5.63
Heubach International...................................            5.63
Hindon Forge Pvt. Ltd...................................            5.63
Jai Auto Pvt. Ltd.......................................            5.63
Kinnari Steel Corporation...............................            5.63
M F Rings and Bearing Races Ltd.........................            5.63
Mascot Metal Manufactures...............................            5.63
OM Exports..............................................            5.63
Punjab Steel Works (PSW)................................            5.63
R.D. Forge..............................................            5.63
Raaj Sagar Steel........................................            5.63
Ravi Ratan Metal Industries.............................            5.63

[[Page 55142]]

 
Rolex Fittings India Pvt. Ltd...........................            5.63
Rollwell Forge Pvt. Ltd.................................            5.63
SHM (ShinHeung Machinery)...............................            5.63
Siddhagiri Metal & Tubes................................            5.63
Sizer India.............................................            5.63
Steel Shape India.......................................            5.63
Sudhir Forgings Pvt. LTd................................            5.63
Tirupati Forge..........................................            5.63
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Assessment Rate

    Consistent with section 751(a)(2)(C) of the Act, upon issuance of 
the final results, Commerce shall determine, and Customs and Border 
Protection (CBP) shall assess, countervailing duties on all appropriate 
entries covered by this review. We intend to issue instructions to CBP 
15 days after publication of the final results of this review.

Cash Deposit Rate

    Pursuant to section 751(a)(1) of the Act, Commerce intends to 
instruct CBP to collect cash deposits of estimated countervailing 
duties in the amount indicated above with regard to shipments of 
subject merchandise entered, or withdrawn from warehouse, for 
consumption on or after the date of publication of the final results of 
this review. For all non-reviewed firms, we will instruct CBP to 
continue to collect cash deposits of estimated countervailing duties at 
the most recent company-specific or all-others rate applicable to the 
company, as appropriate. These cash deposit instructions, when imposed, 
shall remain in effect until further notice.

Disclosure and Public Comment

    We will disclose to parties to this proceeding the calculations 
performed in reaching the preliminary results within five days of the 
date of publication of these preliminary results.\7\ Interested parties 
may submit written comments (case briefs) within 30 days of publication 
of the preliminary results and rebuttal comments (rebuttal briefs) 
within five days after the time limit for filing case briefs.\8\ 
Pursuant to 19 CFR 351.309(d)(2), rebuttal briefs must be limited to 
issues raised in the case briefs. Parties who submit arguments are 
requested to submit with the argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of authorities.\9\
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    \7\ See 19 CFR 224(b).
    \8\ See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1).
    \9\ See 19 CFR 351.309(c)(2) and 351.309(d)(2).
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    Interested parties who wish to request a hearing must do so within 
30 days of publication of these preliminary results by submitting a 
written request to the Assistant Secretary for Enforcement and 
Compliance using Enforcement and Compliance's ACCESS system.\10\ 
Requests should contain the party's name, address, and telephone 
number, the number of participants, whether any participant is a 
foreign national, and a list of the issues to be discussed. If a 
request for a hearing is made, Commerce will inform parties of the 
scheduled date of the hearing which will be held at the U.S. Department 
of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a 
time and date to be determined.\11\ Issues addressed during the hearing 
will be limited to those raised in the briefs.\12\ Parties should 
confirm by telephone the date, time, and location of the hearing two 
days before the scheduled date.
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    \10\ See 19 CFR 351.310(c).
    \11\ See 19 CFR 351.310.
    \12\ See 19 CFR 351.310(c).
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    Parties are reminded that all briefs and hearing requests must be 
filed electronically using ACCESS and received successfully in their 
entirety by 5 p.m. Eastern Time on the due date.
    Unless the deadline is extended pursuant to section 751(a)(3)(A) of 
the Act, Commerce intends to issue the final results of this 
administrative review, including the results of our analysis of the 
issues raised by the parties in their comments, within 120 days after 
publication of these preliminary results.
    This administrative review and notice are in accordance with 
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213.

    Dated: October 8, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Period of Review
V. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VI. Subsidies Valuation Information
VII. Benchmark Interest Rates
VIII. Analysis of Programs
IX. Conclusion

[FR Doc. 2019-22430 Filed 10-11-19; 8:45 am]
 BILLING CODE 3510-DS-P