[Federal Register Volume 87, Number 234 (Wednesday, December 7, 2022)]
[Notices]
[Pages 75037-75039]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26558]


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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 and Partial Rescission of Countervailing Duty 
Administrative Review; 2020

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

SUMMARY: The U.S. 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, 2020, through December 31, 2020. Commerce 
preliminarily determines that countervailable subsidies are being 
provided to producers/exporters of forged steel fittings from China 
subject to this review. We are also rescinding this review with respect 
to 21 companies. Interested parties are invited to comment on these 
preliminary results.

DATES: Applicable December 7, 2022.

FOR FURTHER INFORMATION CONTACT: Zachariah Hall or Shane Subler, 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) 482-6261 or (202) 
482-6241, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On December 28, 2021, Commerce published the notice of initiation 
of an administrative review of the CVD order on forged steel fittings 
from China.\1\ On July 8, 2022, 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, 2022.\3\
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 86 FR 73734 (December 28, 2021).
    \2\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review,'' dated July 
8, 2022.
    \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 https://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; 2020,'' 
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.

Rescission of Administrative Review, In Part

    Based on our analysis of U.S. Customs and Border Protection (CBP) 
information, we preliminarily determine that 21 companies had no 
entries of subject merchandise during the POR.\5\ On February 14, 2022, 
we notified parties that we intended to rescind this administrative 
review with respect to the 21 companies because they have no reviewable 
suspended entries.\6\ No parties commented on the notification of 
intent to rescind the review in part. Pursuant to 19 CFR 351.213(d)(3), 
we are rescinding the administrative review of these companies. We have 
included a list of these 21 companies in Appendix II of this notice. 
For additional information regarding this determination, see the 
Preliminary Decision Memorandum.\7\
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    \5\ See Appendix II.
    \6\ See Memorandum, ``Notice of Intent to Rescind Review, In 
Part,'' dated February 14, 2022.
    \7\ See Preliminary Decision Memorandum at 3-4.
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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.\8\ For a full description of the methodology 
underlying our

[[Page 75038]]

preliminary conclusions, see the Preliminary Decision Memorandum.
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    \8\ 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.\9\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \9\ See sections 776(a) and (b) of the Act.
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Preliminary Rate for Non-Selected Companies Under Review

    Reviews were requested of four companies that Commerce did not 
select for individual examination as mandatory respondents and for 
which Commerce is not rescinding the review. The statute and Commerce's 
regulations do not directly address the establishment of rates to be 
applied to companies not selected for individual examination where 
Commerce limits its examination in an administrative review pursuant to 
section 777A(e)(2) of the Act. However, Commerce normally determines 
the rates for non-selected companies in reviews in a manner that is 
consistent with section 705(c)(5) of the Act, which provides the basis 
for calculating the all-others rate in an investigation. Section 
705(c)(5)(A)(i) of the Act instructs Commerce, as a general rule, to 
calculate an all-others rate equal to the weighted average of the 
countervailable subsidy rates established for exporters and/or 
producers individually examined, excluding any rates that are zero, de 
minimis, or based entirely on facts available.
    In this review, the sole mandatory respondent, Both-Well (Taizhou) 
Steel Fittings, Co., Ltd. (Both-Well), had a rate that was not zero, de 
minimis, or based entirely on facts available. Thus, for the four 
companies listed below that were not selected as mandatory company 
respondents and for which Commerce is not rescinding the review, 
Commerce is basing the subsidy rates on the rate calculated for Both-
Well.

Preliminary Results of Review

    We preliminarily find the following net countervailable subsidy 
rates for the period January 1, 2020, through December 31, 2020:

------------------------------------------------------------------------
                                                                Subsidy
                      Producer/exporter                           rate
                                                               (percent)
------------------------------------------------------------------------
Both-Well (Taizhou) Steel Fittings, Co., Ltd.................      13.42
Review-Specific Average Rate Applicable to the Following
 Companies:
    Eaton Hydraulics (Ningbo) Co., Ltd.......................      13.42
    Jinan Mech Piping Technology Co., Ltd....................      13.42
    Qingdao Bestflow Industrial Co., Ltd.....................      13.42
    Yingkou Guangming Pipeline Industry Co., Ltd.............      13.42
------------------------------------------------------------------------

Assessment Rate

    In accordance with 19 CFR 351.221(b)(4)(i), we preliminarily 
assigned subsidy rates in the amounts for the producers/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 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. If a 
timely summons is filed at the U.S. Court of International Trade, the 
assessment instructions will direct CBP not to liquidate relevant 
entries until the time for parties to file a request for a statutory 
injunction has expired (i.e., within 90 days of publication).

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 amounts indicated for the producers/exporters listed 
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 intend to disclose to interested parties the calculations 
performed for these preliminary results within five days of the date of 
publication of this notice in accordance with 19 CFR 351.224(b). 
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\ Note that Commerce has temporarily modified certain of 
its requirements for serving documents containing business proprietary 
information, until further notice.\11\ Pursuant to 19 CFR 351.309(c)(2) 
and (d)(2), parties who submit case briefs or rebuttal briefs in this 
review are encouraged to submit with each argument: (1) a statement of 
the issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \10\ See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1); see also 
Temporary Rule Modifying AD/CVD Service Requirements Due to COVID-
19, 85 FR 17006 (March 26, 2020) (``To provide adequate time for 
release of case briefs via ACCESS, E&C intends to schedule the due 
date for all rebuttal briefs to be 7 days after case briefs are 
filed (while these modifications are in effect).'').
    \11\ See 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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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain: 
(1) the party's name, address, and telephone number; (2) the number of 
participants and whether any participant is a foreign national; and (3) 
a list of the issues to be discussed. If a request for a hearing is 
made, Commerce intends to hold the hearing at a time and date to be 
determined. Parties should confirm by telephone the date, time, and 
location of the hearing two days before the scheduled date.
    Unless the deadline is extended, we intend to issue the final 
results of this administrative review, which will include the results 
of our analysis of the issues raised in the case briefs, within 120 
days of publication of these preliminary results in the Federal 
Register, pursuant to section 751(a)(3)(A) of the Act and 19 CFR 
351.213(h).

Notification to Interested Parties

    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.


[[Page 75039]]


    Dated: November 30, 2022.
Lisa W. Wang,
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. Non-Selected Companies Under Review
VI. Partial Rescission of Review
VII. Subsidies Valuation
VIII. Benchmarks and Discount Rates
IX. Use of Facts Otherwise Available and Adverse Inferences
X. Analysis of Programs
XI. Recommendation

Appendix II

List of Companies Subject to Rescission of Review

1. Cixi Baicheng Hardware Tools, Ltd.
2. Dalian Guangming Pipe Fittings Co., Ltd.
3. Eaton Hydraulics (Luzhou) Co., Ltd.
4. Jiangsu Forged Pipe Fittings Co., Ltd.
5. Jiangsu Haida Pipe Fittings Group Co. Ltd.
6. Jining Dingguan Precision Parts Manufacturing Co., Ltd.
7. Lianfa Stainless Steel Pipes & Valves (Qingyun) Co., Ltd.
8. Luzhou City Chengrun Mechanics Co., Ltd.
9. Ningbo HongTe Industrial Co., Ltd.
10. Ningbo Long Teng Metal Manufacturing Co., Ltd.
11. Ningbo Save Technology Co., Ltd.
12. Ningbo Zhongan Forging Co., Ltd.
13. Q.C. Witness International Co., Ltd.
14. Shanghai Lon Au Stainless Steel Materials Co., Ltd.
15. Witness International Co., Ltd.
16. Xin Yi International Trade Co., Limited
17. Yancheng Boyue Tube Co., Ltd.
18. Yancheng Haohui Pipe Fittings Co., Ltd.
19. Yancheng Jiuwei Pipe Fittings Co., Ltd.
20. Yancheng Manda Pipe Industry Co., Ltd.
21. Yuyao Wanlei Pipe Fitting Manufacturing Co., Ltd.

[FR Doc. 2022-26558 Filed 12-6-22; 8:45 am]
BILLING CODE 3510-DS-P