[Federal Register Volume 85, Number 220 (Friday, November 13, 2020)]
[Notices]
[Pages 72627-72629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-25044]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-068]


Forged Steel Fittings From the People's Republic of China: 
Preliminary Results of Countervailing Duty Administrative Review; 2018

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) is conducting an 
administrative review of the countervailing duty (CVD) order on forged 
steel fittings from the People's Republic of China (China) for the 
period of review March 14, 2018 through December 31, 2018. Commerce 
preliminarily determines that countervailable subsidies are being 
provided to Both-Well (Taizhou) Steel Fittings, Co., Ltd. (Both-Well), 
the sole producer/exporter of forged steel fittings from China subject 
to this review.

DATES: Applicable November 13, 2020.

FOR FURTHER INFORMATION CONTACT: Katherine Johnson 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) 482-4929 or (202) 
482-0238, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 17, 2020, Commerce published the notice of initiation of 
an administrative review of the CVD order on forged steel fittings from 
China.\1\ On April 24, 2020, Commerce tolled all deadlines in 
administrative reviews by 50 days, thereby extending the deadline for 
the preliminary results of this review until July 21, 2020.\2\ On July 
21, 2020, Commerce again tolled all deadlines in administrative reviews 
by 60 days.\3\ Accordingly, the deadline for the preliminary results in 
this administrative review was postponed to November 19, 2020.\4\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 85 FR 3014 (January 17, 2020).
    \2\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Administrative Reviews in Response to 
Operational Adjustments Due to COVID-19,'' dated April 24, 2020.
    \3\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Administrative Reviews,'' dated July 21, 2020.
    \4\ Id. at 2.
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    For a complete description of the events that followed the 
initiation of this administrative review, see the Preliminary Decision 
Memorandum.\5\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as Appendix I 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, 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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    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results: Administrative Review of the Countervailing Duty Order on 
Forged Steel Fittings from the People's Republic of China; 2018,'' 
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 forged steel fittings. 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)(1)(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 financial 
contribution that gives rise to a benefit to the recipient, and that 
the subsidy is specific.\6\ For a full description of the

[[Page 72628]]

methodology underlying our preliminary conclusions, see the 
accompanying Preliminary Decision Memorandum.
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    \6\ 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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    As explained in the Preliminary Decision Memorandum, Commerce 
relied on adverse facts available because the Government of China did 
not act to the best of its ability in responding to Commerce's requests 
for information, and consequently, we have drawn an adverse inference, 
where appropriate, in selecting from among the facts otherwise 
available.\7\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Rate for Non-Selected Companies Under Review

    There are 35 companies for which a review was requested and not 
rescinded, and which were not selected as mandatory respondents or 
found to be cross-owned with a mandatory respondent. For these 
companies, because the rate calculated for Both-Well was above de 
minimis and not based entirely on facts available, we applied Both-
Well's subsidy rate to the non-selected companies. This methodology to 
establish the subsidy rate for non-selected companies is consistent 
with our practice and with section 705(c)(5)(A) of the Act, which 
governs the determination of an ``all-others'' rate in an investigation 
and which we rely on for guidance here. For a list of the non-selected 
companies, see Appendix II to this notice.

Preliminary Results of Review

    In accordance with 19 CFR 351.221(b)(4)(i), we calculated a 
countervailable subsidy rate for Both-Well, the sole mandatory 
respondent in this review. We preliminarily determine that the 
following subsidy rate exists for Both-Well and the non-selected 
companies under review:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Both-Well (Taizhou) Steel Fittings, Co., Ltd............           25.90
Non-Selected Companies Under Review \8\.................           25.90
------------------------------------------------------------------------

Assessment Rate
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    \8\ See Appendix III.
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    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts shown above for the producer/
exporters shown above. Upon completion of the administrative review, 
consistent with section 751(a)(1) of the Act and 19 CFR 351.212(b)(2), 
Commerce shall determine, and U.S. Customs and Border Protection (CBP) 
shall assess, countervailing duties on all appropriate entries covered 
by this review. We intend to issue instructions directly 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 for Both-Well 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.\9\ Interested parties 
may submit written comments (case briefs) within 30 days of publication 
of the preliminary results and rebuttal comments (rebuttal briefs) 
within seven days after the time limit for filing case briefs.\10\ 
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.\11\
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    \9\ See 19 CFR 224(b).
    \10\ See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1).
    \11\ See 19 CFR 351.309(c)(2) and 351.309(d)(2).
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    Pursuant to 19 CFR 351.310(c), 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.\12\ 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 a time and date to be determined.\13\ Issues addressed during the 
hearing will be limited to those raised in the briefs.\14\ Parties 
should confirm the date and time of the hearing two days before the 
scheduled date.
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    \12\ See 19 CFR 351.310(c).
    \13\ See 19 CFR 351.310.
    \14\ 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. Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\15\
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    \15\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements); Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19, 85 FR 17006 (March 26, 2020); and 
Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-
19; Extension of Effective Period, 85 FR 41363 (July 10, 2020).
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    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: November 5, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Diversification of China's Economy
V. Subsidies Valuation
VI. Benchmarks and Discount Rates
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Analysis of Programs
IX. Conclusion

Appendix II--List of Non-Selected Companies

1. Apco Pipe Fittings Co., Ltd.
2. Cixi Baicheng Hardware Tools, Ltd.
3. Dalian Guangming Pipe Fittings Co., Ltd.
4. Eaton Hydraulics (Luzhou) Co., Ltd.
5. Eaton Hydraulics (Ningbo) Co., Ltd.
6. Feiting Hi-Tech Piping Zhejiang Co., Ltd
7. Hebei Haiyuan Pipe Fittings Co., Ltd.
8. Hebei Xinyue High Pressure Flange And Pipe Fitting Co., Ltd.
9. Jiangsu Forged Pipe Fittings Co., Ltd.

[[Page 72629]]

10. Jiangsu Haida Pipe Fittings Group Co., Ltd.
11. Jiangyin Tianning Metal Pipe Fitting Co., Ltd.
12. Jiangyin Yangzi Fitting Co., Ltd.
13. Jinan Mech Piping Technology Co., Ltd.
14. Jining Dingguan Precision Parts Manufacturing Co., Ltd.
15. Lianfa Stainless Steel Pipes & Valves (Qingyun) Co., Ltd.
16. Luzhou City Chengrun Mechanics Co., Ltd.
17. Ningbo HongTe Industrial Co., Ltd.
18. Ningbo Long Teng Metal Manufacturing Co., Ltd.
19. Ningbo Save Technology Co., Ltd.
20. Ningbo Zhongan Forging Co., Ltd.
21. Q.C. Witness International Co., Ltd.
22. Qingdao Bestflow Industrial Co., Ltd.
23. Shanghai Lon Au Stainless Steel Materials Co., Ltd.
24. Shanghai Longnai High Pressure Pipe Fittings Co., Ltd.
25. Shanghai Tongyang Pipe Fittings Co., Ltd.
26. Shanghai Yochoic Pipefittings Co., Ltd.
27. Witness International Co., Ltd.
28. Xin Yi International Trade Co., Limited
29. Yancheng Boyue Tube Co., Ltd.
30. Yancheng Haohui Pipe Fittings Co., Ltd.
31. Yancheng Jiuwei Pipe Fittings Co., Ltd.
32. Yancheng Manda Pipe Industry Co., Ltd.
33. Yingkou Guangming Pipeline Industry Co., Ltd.
34. Yingkou Liaohe Machinery & Pipe Fittings Co., Ltd.
35. Yuyao Wanlei Pipe Fitting Manufacturing Co., Ltd.

[FR Doc. 2020-25044 Filed 11-12-20; 8:45 am]
BILLING CODE 3510-DS-P