[Federal Register Volume 89, Number 178 (Friday, September 13, 2024)]
[Notices]
[Pages 74899-74901]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-20753]


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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 and Preliminary Intent To 
Rescind, in Part; 2022

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

SUMMARY: The U.S. Department of Commerce (Commerce) preliminarily 
determines that countervailable subsidies were provided to certain 
producers and/or exporters of finished carbon steel flanges (steel 
flanges) from India. The period of review (POR) is January 1, 2022, 
through December 31, 2022. In addition, we are notifying parties of our 
intent to rescind the review with respect to 30 companies. Interested 
parties are invited to comment on these preliminary results.

DATES: Applicable September 13, 2024.

FOR FURTHER INFORMATION CONTACT: Preston N. Cox or Amber Hodak, 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) 482-5041 or (202) 842-8034, 
respectively.

SUPPLEMENTARY INFORMATION:

Background

    On October 18, 2023, Commerce published in the Federal Register a 
notice of initiation of an administrative review of the countervailing 
duty (CVD) order on steel flanges from India.\1\ On November 28, 2023, 
Commerce selected Norma (India) Ltd. (Norma) and R.N. Gupta & Company 
Limited (RNG) as mandatory respondents in this review.\2\ On April 5, 
2024, Commerce extended the time period for issuing these preliminary 
results, in accordance with section 751(a)(3)(A) of the Tariff Act of 
1930, as amended (the Act), to August 30, 2024.\3\ On July 22, 2024, 
Commerce tolled certain deadlines in this administrative proceeding by 
seven days.\4\ The deadline for the preliminary results is now 
September 6, 2024.
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    \1\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 88 FR 71829, 71836-71837 (October 18, 2023); 
see also Finished Carbon Steel Flanges from India: Countervailing 
Duty Order, 82 FR 40138 (August 24, 2017) (Order).
    \2\ See Memorandum, ``Respondent Selection,'' dated November 28, 
2023.
    \3\ See Memorandum, ``Extension of Deadline for Preliminary 
Results of Countervailing Duty Administrative Review,'' dated April 
5, 2024.
    \4\ See Memorandum, ``Tolling of Deadlines for Antidumping and 
Countervailing Duty Proceedings,'' dated July 22, 2024.
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    For a complete description of the events that followed the 
initiation of this review, see the Preliminary Decision Memorandum.\5\ 
A list of topics discussed in the Preliminary Decision Memorandum is 
provided 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 https://access.trade.gov. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at https://access.trade.gov/public/FRNoticesListLayout.aspx.
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    \5\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Countervailing Duty Administrative Review of Finished 
Carbon Steel Flanges from India; 2022,'' dated concurrently with, 
and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Scope of the Order

    The product covered by the Order is steel flanges from India. For a 
complete description of the scope of the Order, see the Preliminary 
Decision Memorandum.

[[Page 74900]]

Preliminary Intent To Rescind Administrative Review, in Part

    It is Commerce's practice to rescind an administrative review of a 
CVD order, pursuant to 19 CFR 351.213(d)(3), when there are no 
reviewable entries of subject merchandise during the POR for which 
liquidation is suspended.\6\ Normally, upon completion of an 
administrative review, the suspended entries are liquidated at the 
countervailing duty assessment rate calculated for the review 
period.\7\ Therefore, for an administrative review of a company to be 
conducted, there must be a reviewable, suspended entry that Commerce 
can instruct U.S. Customs and Border Protection (CBP) to liquidate at 
the calculated countervailing duty assessment rate calculated for the 
review period.\8\
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    \6\ See, e.g., Lightweight Thermal Paper from the People's 
Republic of China: Notice of Rescission of Countervailing Duty 
Administrative Review; 2015, 82 FR 14349 (March 20, 2017); see also 
Circular Welded Carbon Quality Steel Pipe from the People's Republic 
of China: Rescission of Countervailing Duty Administrative Review; 
2017, 84 FR 14650 (April 11, 2019).
    \7\ See 19 CFR 351.212(b)(2).
    \8\ See 19 CFR 351.213(d)(3).
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    According to the CBP data on the record, the companies listed in 
Appendix III did not have reviewable entries of subject merchandise 
during the POR for which liquidation is suspended. Accordingly, in the 
absence of reviewable, suspended entries of subject merchandise during 
the POR, we intend to rescind this review with respect to these 
companies, in accordance with 19 CFR 351.213(d)(3). Parties are invited 
to comment on the intent to rescind for these companies.

Methodology

    Commerce is conducting this administrative review in accordance 
with section 751(a)(l)(A) of the Act. For each of the subsidy programs 
found to be countervailable, Commerce preliminarily determines that 
there is a subsidy, i.e., a financial contribution by an ``authority'' 
that give rise to a benefit to the recipient, and that the subsidy is 
specific.\9\ For a full description of the methodology underlying our 
conclusions, including our reliance, in part, on facts otherwise 
available with adverse inferences pursuant to sections 776(a) and (b) 
of the Act, see the Preliminary Decision Memorandum.
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    \9\ 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

    The Act and Commerce's regulations do not address the establishment 
of a rate to apply companies not selected for individual examination 
when 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 
instructions for calculating the all-others rate in an investigation. 
Section 777A(e)(2) of the Act provides that ``the individual 
countervailable subsidy rates determined under subparagraph (A) shall 
be used to determine the all-others rate under section 705(c)(5) {of 
the Act{time} .'' Section 705(c)(5)(A) states that for companies not 
investigated, in general, we will determine an all-others rate by 
weight averaging the countervailable subsidy rates established for each 
of the companies individually investigated, excluding zero and de 
minimis rates or any rates based solely on the facts available.
    Accordingly, to determine the rate for companies not selected for 
individual examination, Commerce's practice is to weight average the 
net subsidy rates for the selected mandatory respondents, excluding 
rates that are zero, de minimis, or based entirely on facts 
available.\10\ We preliminarily find that Norma and RNG received 
countervailable subsidies at above de minimis rates and not based 
entirely on facts available. Therefore, we preliminarily determine to 
assign to the companies not selected for individual review a weighted 
average of the subsidy rates calculated for Norma and RNG using each 
company's publicly ranged data for the value of its exports of subject 
merchandise to the United States.\11\ The companies for which a review 
was requested, which were not selected as mandatory respondents or 
found to be cross-owned with a mandatory respondent, are listed in 
Appendix II.
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    \10\ See, e.g., Certain Pasta from Italy: Final Results of the 
13th (2008) Countervailing Duty Administrative Review, 75 FR 37386, 
37387 (June 29, 2010).
    \11\ See Memorandum, ``Preliminary Results Calculation of 
Subsidy Rate for Non-Selected Companies Under Review,'' dated 
concurrently with this notice.
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Preliminary Results of Review

    As a result of this review, Commerce preliminarily determines the 
following net countervailable subsidy rates exist for the period 
January 1, 2022, through December 31, 2022:
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    \12\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found the following companies to be cross-owned with 
Norma (India) Ltd.: USK Export Private Limited; Uma Shanker 
Khandelwal and Co.; and Bansidhar Chiranjilal. This rate applies to 
all cross-owned companies.
    \13\ See Appendix II for a list of companies not selected for 
individual examination.

------------------------------------------------------------------------
                                                  Subsidy rate (percent
                    Company                            ad valorem)
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Norma (India) Ltd.\12\.........................                     2.58
R.N. Gupta & Company Limited...................                     2.28
Non-Selected Companies Under Review \13\.......                     2.38
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Disclosure

    Commerce intends to disclose its calculations and analysis 
performed in connection with the preliminary results to interested 
parties within five days of any public announcement, or if there is no 
public announcement, within five days of the date of publication of 
this notice in accordance with 19 CFR 351.224(b).

Public Comment

    Pursuant to 19 CFR 351.309(c), interested parties may submit case 
briefs to Commerce no later than 30 days after the date of publication 
of this notice. Rebuttal briefs, limited to issues raised in the case 
briefs, may be filed not later than five days after the date for filing 
case briefs.\14\ Interested parties who submit case briefs or rebuttal 
briefs in this proceeding must submit: (1) table of contents listing 
each issue; and (2) a table of authorities.\15\ All briefs must be 
filed electronically using ACCESS. An electronically filed document 
must be received successfully in its entirety in

[[Page 74901]]

ACCESS by 5:00 p.m. Eastern Time on the established deadline.
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    \14\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Procedures).
    \15\ See 19 CFR 351.309(c)(2) and 351.309(d)(2).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their briefs that should be limited to five pages 
total, including footnotes. In this review, we instead request that 
interested parties provide at the beginning of their briefs a public, 
executive summary for each issue raised in their briefs.\16\ Further, 
we request that interested parties limited their executive summary of 
each issue to no more than 450 words, not including citations. We 
intend to use the executive summaries as the basis of the comment 
summaries included in the issues and decision memorandum that will 
accompany the final results in this administrative review. We request 
that interested parties include footnotes for relevant citations in the 
public executive summary of each issue. Note that Commerce has amended 
certain of its requirements pertaining to the service of documents in 
19 CFR 351.303(f).\17\
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    \16\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \17\ See APO and Service Procedures.
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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, filed electronically via ACCESS by 5:00 
p.m. Eastern Time 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 (3) a list of 
issues to be discussed. Oral presentations at the hearing will be 
limited to issues raised in the briefs. If a request for a hearing is 
made, Commerce will inform parties of the schedule date for the 
hearing.\18\
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    \18\ See 19 CFR 351.310(d).
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Assessment Rates

    Consistent with section 751(a)(1) of the Act and 19 CFR 
351.212(b)(2), upon issuance of the final results, 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 assessment instructions to CBP no 
earlier than 35 days after the date of 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., without 
90 days of publication).

Cash Deposit Requirements

    Pursuant to section 751(a)(2)(C) of the Act, upon publication of 
the final results, Commerce intends to instruct CBP to collect cash 
deposits of estimated countervailing duties for each of the companies 
listed above on shipments of subject merchandise entered, or withdrawn 
from warehouse, for consumption on or after the date of publication of 
the final results of this administrative review, except where the rate 
calculated in the final results is zero or de minimis. For all non-
reviewed firms, we will instruct CBP to continue to collect cash 
deposits of estimated countervailing duties at the all-others rate or 
the most recent company-specific rate applicable to the company, as 
appropriate. These cash deposit instructions, when imposed, shall 
remain in effect until further notice.

Final Results

    Unless the deadline is extended pursuant to section 751(a)(3)(a) of 
the Act and 19 CFR 351.213(h)(2), Commerce intends to issue the final 
results of this administrative review, including the results of its 
analysis of issues by the parties in any written briefs, no later than 
120 days after the date of publication of these preliminary results.

Notification to Interested Parties

    We are issuing and publishing these preliminary results in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act, and 19 CFR 
351.221(b)(4).

    Dated: September 6, 2024.
Abdelali Elouaradia,
Deputy 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 India's Economy
V. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VI. Benchmarks and Interest Rates
VII. Subsidies Valuation
VIII. Analysis of Programs
IX. Recommendation

Appendix II

Companies Not Selected for Individual Examination

1. Balkrishna Steel Forge Pvt. Ltd.
2. C. D. Industries
3. Cetus Engineering Private Limited
4. Echjay Industries Pvt. Ltd.
5. Jai Auto Pvt. Ltd.
6. Jiten Steel Industries
7. Munish Forge Private Limited
8. R.D. Forge
9. Rollwell Forge Pvt. Ltd.
10. Tirupati Forge

Appendix III

Companies for Which Commerce Intends To Rescind the Review

1. Adinath International
2. Aditya Forge Limited
3. Allena Group
4. Alloyed Steel
5. Bebitz Flanges Works Private Limited
6. CHW Forge
7. CHW Forge Pvt. Ltd.
8. Citizen Metal Depot
9. Corum Flange
10. DN Forge Industries
11. Echjay Forgings Limited
12. Falcon Valves and Flanges Private Limited
13. Heubach International
14. Hindon Forge Pvt. Ltd.
15. Kinnari Steel Corporation
16. M F Rings and Bearing Races Ltd.
17. Mascot Metal Manufacturers
18. OM Exports
19. Punjab Steel Works (PSW)
20. Raaj Sagar Steel
21. Ravi Ratan Metal Industries
22. Renin Piping Products
23. Rolex Fittings India Pvt. Ltd.
24. Rollwell Forge Engineering Components and Flanges
25. SHM (ShinHeung Machinery)
26. Siddhagiri Metal & Tubes
27. Sizer India
28. Steel Shape India
29. Sudhir Forgings Pvt. Ltd.
30. Umashanker Khandelwal Forging Limited

[FR Doc. 2024-20753 Filed 9-12-24; 8:45 am]
BILLING CODE 3510-DS-P