[Federal Register Volume 86, Number 232 (Tuesday, December 7, 2021)]
[Notices]
[Pages 69224-69225]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26464]


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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; 2019

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 January 1, 2019, through December 31, 2019. 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 December 7, 2021.

FOR FURTHER INFORMATION CONTACT: Jana[eacute] Martin or William Horn, 
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) 482-0238 
or (202) 482-4868, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On January 6, 2021, Commerce published the notice of initiation of 
an administrative review of the CVD order on forged steel fittings from 
China.\1\ On July 13, 2021, Commerce extended the time period for 
issuing the preliminary results of this review by 120 days.\2\ 
Accordingly, the deadline for the preliminary results in this 
administrative review was postponed to November 30, 2021.\3\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 86 FR 511 (January 6, 2021).
    \2\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review,'' dated July 
13, 2021.
    \3\ 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.\4\ A list of topics discussed in the Preliminary Decision 
Memorandum is included as an 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, In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
https://access.trade.gov/public/FRNoticesListLayout.aspx/.
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    \4\ 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; 2019,'' 
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.\5\ For a full description of the methodology 
underlying our preliminary 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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    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.\6\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \6\ See sections 776(a) and (b) of the Act.
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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:

------------------------------------------------------------------------
                                                               Subsidy
                          Company                                rate
                                                              (percent)
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Both-Well (Taizhou) Steel Fittings, Co., Ltd...............       13.39
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Assessment Rate

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned a subsidy rate in the amount shown above for the producer/
exporter 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. Commerce intends to issue instructions directly to CBP 
no earlier than 35 days after publication of the final results of this 
review in the Federal Register.

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

[[Page 69225]]

applicable to the company, as appropriate. These cash deposit 
instructions, when imposed, shall remain in effect until further 
notice.

Verification

    Commerce intends to verify the non-use information for the Export 
Buyer's Credit Program in making its final determination in this 
administrative review. Normally, Commerce verifies information using 
standard procedures, including an on-site examination of original 
accounting, financial, and sales documentation. However, due to current 
travel restrictions in response to the global COVID-19 pandemic, 
Commerce is unable to conduct on-site verification in this 
investigation. Accordingly, we intend to verify the information relied 
upon in making the final determination through alternative means in 
lieu of an on-site verification.

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 
will be notified of the timeline for the submission of case briefs at a 
later date. Rebuttal briefs, limited to issues raised in these case 
briefs, may be submitted no later than seven days after the deadline 
date for 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; see also 19 CFR 351.303 (for general 
filing requirements); and Temporary Rule Modifying AD/CVD Service 
Requirements Due to COVID-19, 85 FR 17006, 17007 (March 26, 2020).
    \9\ 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.\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 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 the date and time 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. Note that Commerce has 
temporarily modified certain of its requirements for serving documents 
containing business proprietary information, until further notice.\13\
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    \13\ 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 30, 2021.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the 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. 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

[FR Doc. 2021-26464 Filed 12-6-21; 8:45 am]
BILLING CODE 3510-DS-P