[Federal Register Volume 87, Number 186 (Tuesday, September 27, 2022)]
[Notices]
[Pages 58484-58485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-20979]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-068]


Forged Steel Fittings From the People's Republic of China: Notice 
of Court Decision Not in Harmony With the Results of Countervailing 
Duty Administrative Review; Notice of Amended Final Results

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

SUMMARY: On September 13, 2022, the U.S. Court of International Trade 
(CIT) issued its final judgment in Bothwell (Taizhou) Steel Fittings, 
Co., Ltd. v. United States, Consol. Court no. 21-00166, sustaining the 
U.S. Department of Commerce's (Commerce) remand results pertaining to 
the administrative review of the countervailing duty (CVD) order on 
forged steel fittings (FSF) from the People's Republic of China (China) 
covering the period March 14, 2018, through December 31, 2018. Commerce 
is notifying the public that the CIT's final judgment is not in harmony 
with Commerce's final results of the administrative review, and that 
Commerce is amending the final results with respect to the 
countervailable subsidy rate assigned to Both-Well (Taizhou) Steel 
Fittings, Co., Ltd. (Both-Well).

DATES: Applicable September 23, 2022.

FOR FURTHER INFORMATION CONTACT: William Horn and Zachariah Hall, 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) 482-4868 or (202) 
482-6261, respectively.

SUPPLEMENTARY INFORMATION:

[[Page 58485]]

Background

    On March 18, 2021, Commerce published its Final Results in the 2018 
CVD administrative review of FSF from China.\1\ In the Final Results, 
Commerce determined that the use of adverse facts available (AFA) under 
sections 776(a) and (b) of the Tariff Act of 1930, as amended (the 
Act), was warranted in determining the countervailability of the Export 
Buyer's Credit (EBC) program, because the Government of China (GOC) had 
failed to provide the necessary information Commerce required to 
analyze the program.\2\ Commerce also determined that it could not rely 
on statements of non-use provided by Both-Well and its customers 
because of the GOC's failure to provide the necessary information with 
respect to the operation of the program.\3\ Consistent with Commerce's 
CVD AFA hierarchy, Commerce selected the highest calculated rate for 
the same or similar program as the AFA rate for this program, 10.54 
percent, in accordance with section 776(d) of the Act and Commerce's 
established practice.\4\ Commerce calculated a total net subsidy rate 
of 25.90 percent for Both-Well.\5\
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    \1\ See Forged Steel Fittings from the People's Republic of 
China: Final Results of Countervailing Duty Administrative Review; 
2018, 86 FR 14722 (March 18, 2021) (Final Results), and accompanying 
Issues and Decisions Memorandum.
    \2\ Id. at Comment 1.
    \3\ Id.
    \4\ Id. at Comment 2.
    \5\ See Final Results, 86 FR at 14723.
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    Both-Well appealed Commerce's Final Results. On February 8, 2022, 
the CIT remanded the Final Results to Commerce and ordered either: (1) 
that Commerce must attempt to verify the EBC program non-use 
certifications provided by Both-Well's U.S. customers or; (2) that if, 
after attempting verification, Commerce determines verification is not 
possible without the missing information from the GOC, then Commerce 
must explain, in detail, the specific ways in which Commerce attempted 
verification of the non-use certifications.\6\
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    \6\ See Bothwell (Taizhou) Steel Fittings, Co., Ltd. v. United 
States, Consol. Court No. 21-00166 (CIT February 8, 2022), at 20-21.
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    In its final remand redetermination, issued in July 2022, Commerce 
found, after issuing supplemental questionnaires to Both-Well, that 
there was no use of the EBC program with respect to Both-Well in this 
review and removed the subsidy rate for the EBC program from Both-
Well's final CVD subsidy rate, resulting in a 15.36 percent rate for 
Both-Well.\7\ On September 13, 2022, the CIT sustained Commerce's final 
redetermination.\8\
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    \7\ See Final Results of Remand Redetermination Pursuant to 
Court Remand, Bothwell (Taizhou) Steel Fittings, Co., Ltd. v. United 
States, Consol. Court No. 21-00166, dated July 7, 2022, available at 
https://access.trade.gov/resources/remands/22-10.pdf, at 7-8.
    \8\ See Both-Well (Taizhou) Steel Fittings, Co., Ltd., v. United 
States, Court No. 21-00166, Slip Op. 22-105 (CIT September 13, 
2022).
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Timken Notice

    In its decision in Timken,\9\ as clarified by Diamond 
Sawblades,\10\ the U.S. Court of Appeals for the Federal Circuit held 
that, pursuant to section 516A(c) and (e) of the Act, Commerce must 
publish a notice of court decision that is not ``in harmony'' with a 
Commerce determination and must suspend liquidation of entries pending 
a ``conclusive'' court decision. The CIT's September 13, 2022, judgment 
constitutes a final decision of the CIT that is not in harmony with 
Commerce's Final Results. Thus, this notice is published in fulfillment 
of the publication requirements of Timken.
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    \9\ See Timken Co. v. United States, 893 F.2d 337 (Fed. Cir. 
1990) (Timken).
    \10\ See Diamond Sawblades Manufacturers Coalition v. United 
States, 626 F.3d 1374 (Fed. Cir. 2010) (Diamond Sawblades).
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Amended Final Results

    Because there is now a final court judgment, Commerce is amending 
its Final Results with respect to Both-Well as follows:

------------------------------------------------------------------------
                                                            Subsidy rate
                         Exporter                           (percent  ad
                                                              valorem)
------------------------------------------------------------------------
Both-Well (Taizhou) Steel Fittings, Co., Ltd..............        15.36
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Cash Deposit Requirements

    Because Both-Well has a superseding cash deposit rate, i.e., there 
have been final results published in a subsequent administrative 
review, we will not issue revised cash deposit instructions to U.S. 
Customs and Border Protection (CBP). This notice will not affect the 
current cash deposit rate.

Liquidation of Suspended Entries

    At this time, Commerce remains enjoined by CIT order from 
liquidating entries that were produced and/or exported by Both-Well, 
and were entered, or withdrawn from warehouse, for consumption during 
the period March 14, 2018, through December 31, 2018. These entries 
will remain enjoined pursuant to the terms of the injunction during the 
pendency of any appeals process.
    In the event the CIT's ruling is not appealed, or, if appealed, 
upheld by a final and conclusive court decision, Commerce intends to 
instruct CBP to assess countervailing duties on unliquidated entries of 
subject merchandise produced and/or exported by Both-Well in accordance 
with 19 CFR 351.212(b). We will instruct CBP to assess countervailing 
duties on all appropriate entries covered by this review when the ad 
valorem rate is not zero or de minimis. Where an ad valorem subsidy 
rate is zero or de minimis,\11\ we will instruct CBP to liquidate the 
appropriate entries without regard to countervailing duties.
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    \11\ See 19 CFR 351.106(c)(2).
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Notification to Interested Parties

    This notice is issued and published in accordance with sections 
516A(c) and (e) and 777(i)(1) of the Act.

    Dated: September 22, 2022.
Lisa W. Wang,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2022-20979 Filed 9-23-22; 11:15 am]
BILLING CODE 3510-DS-P