[Federal Register Volume 83, Number 112 (Monday, June 11, 2018)]
[Notices]
[Pages 26959-26962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12482]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-064]


Stainless Steel Flanges From the People's Republic of China: 
Final Affirmative Determination of Sales at Less Than Fair Value

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

SUMMARY: The U.S. Department of Commerce (Commerce) determines that 
stainless steel flanges from the People's Republic of China (China) are 
being, or are likely to be, sold in the United States at less than fair 
value (LTFV). The period of investigation (POI) is January 1, 2017, 
through June 30, 2017. The final dumping margins of sales at LTFV are 
listed below in the ``Final Determination'' section of this notice.

DATES: Applicable June 11, 2018.

FOR FURTHER INFORMATION CONTACT: Ian Hamilton or Kabir Archuletta, AD/
CVD Operations, Office V, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW, Washington, DC 20230; telephone: (202) 482-4798 or (202) 
482-2593, respectively.

SUPPLEMENTARY INFORMATION:

Background

    This final determination is made in accordance with section 735(a) 
of the Tariff Act of 1930, as amended (the Act). On March 28, 2018, 
Commerce published the preliminary affirmative determination of sales 
at LTFV in the investigation of stainless steel flanges from China.\1\ 
We invited interested parties to comment on the Preliminary 
Determination. We received no comments from interested parties.
---------------------------------------------------------------------------

    \1\ See Stainless Steel Flanges from the People's Republic of 
China: Preliminary Affirmative Determination of Sales at Less Than 
Fair Value, 83 FR 13244 (March 28, 2018) (Preliminary 
Determination), and accompanying Preliminary Decision Memorandum.

---------------------------------------------------------------------------

[[Page 26960]]

Scope of the Investigation

    The products covered by this investigation are stainless steel 
flanges from China. For a complete description of the scope of this 
investigation, see the Appendix to this notice.

Analysis of Comments Received

    As noted above, we received no comments in response to the 
Preliminary Determination. For the purposes of the final determination, 
Commerce has made no changes to the Preliminary Determination.

Use of Adverse Facts Available

    We continue to find that the mandatory respondent in this 
investigation, Shanxi Guanjiaying Flange Forging Group Co., Ltd (GJY), 
did not provide requested information, withheld requested information, 
significantly impeded this investigation, and did not cooperate to the 
best of its ability to comply with Commerce's request for information 
in failing to submit a complete and reliable sales reconciliation, as 
detailed in the Preliminary Determination and accompanying Preliminary 
Decision Memorandum.\2\ Accordingly, we continue to determine it 
appropriate to apply facts otherwise available, with an adverse 
inference, in accordance with sections 776(a)-(b) of the Act.\3\ As 
AFA, we have continued to apply the highest dumping margin contained in 
the Petition, 257.11 percent, as explained in the Preliminary 
Determination and accompanying Preliminary Decision Memorandum.\4\
---------------------------------------------------------------------------

    \2\ See Preliminary Determination, 83 FR at 13244; see also 
Preliminary Decision Memorandum at 8-10.
    \3\ Preliminary Decision Memorandum at 10-15.
    \4\ See Stainless Steel Flanges from India and the People's 
Republic of China: Initiation of Less-Than-Fair-Value 
Investigations, 82 FR 42649 (September 11, 2017); see also 
Petitioners' Letter, ``Stainless Steel Flanges from the People's 
Republic of China and India: Petitions for the Imposition of 
Antidumping and Countervailing Duties,'' dated August 16, 2017 
(Petition); Preliminary Decision Memorandum at 13-15.
---------------------------------------------------------------------------

    In accordance with the Preliminary Determination, we continue to 
grant GJY a separate rate because evidence on the record supports an 
absence of de jure and de facto government control.\5\ Hydro-Fluids 
Controls Limited (HFC), Songhai Flange Manufacturing Co., Ltd 
(Songhai), and Dongtai QB Stainless Steel Co., Ltd (Dongtai), were also 
selected as mandatory respondents, but withdrew from participation in 
this investigation and did not respond to requests for information.\6\ 
Thus, we continue to find that HFC, Songhai, and Dongtai did not 
demonstrate that they are eligible for a separate rate and are part of 
the China-wide entity. We also continue to find that, in addition to 
the mandatory respondents that did not respond to our requests for 
information, Commerce did not receive timely responses to its Quantity 
and Value (Q&V) questionnaire from numerous Chinese exporters and/or 
producers of the merchandise under consideration that were named in the 
Petition and to whom Commerce issued Q&V questionnaires.\7\ Because 
these companies, which comprise part of the China-wide entity, failed 
to submit the requested Q&V information, we determine that the China-
wide entity did not cooperate to the best of its ability. Therefore, 
for this final determination, Commerce continues to find that the 
China-wide entity failed to provide necessary information, withheld 
information requested by Commerce, failed to provide information in a 
timely manner, and significantly impeded this proceeding by not 
submitting the requested information. As a result, Commerce continues 
to find that use of facts available, with an adverse inference, is 
warranted in determining the rate of the China-wide entity, pursuant to 
sections 776(a)(1), (a)(2)(A)-(C), and 776(b) of the Act.\8\
---------------------------------------------------------------------------

    \5\ See Policy Bulletin 05.1, Separate-Rates Practice and 
Application of Combination Rates in Antidumping Investigations 
involving Non-Market Economy Countries, dated April 5, 2005, 
available at http://enforcement.trade.gov/policy/bull05-1.pdf.
    \6\ See HFC's Letter, ``Certain Stainless Steel Flanges from the 
People's Republic of China: Withdrawal from Active Participation by 
Hydro-Fluid Controls Limited,'' dated October 12, 2017; Songhai's 
Letter, ``Certain Stainless Steel Flanges from the People's Republic 
of China: Withdrawal from Active Participation by Songhai Flange 
Manufacturing Co. Ltd.,'' dated October 13, 2017; Dongtai's Letter, 
``Certain Stainless Steel Flanges from the People's Republic of 
China: Withdrawal from Active Participation by Dongtai QB Stainless 
Steel Co., Ltd,'' dated November 28, 2017.
    \7\ See Preliminary Decision Memorandum at 10; see also 
Petition; Memorandum, ``Quantity and Value Questionnaires Delivery 
Confirmation,'' dated September 20, 2017.
    \8\ See, e.g., Notice of Preliminary Determination of Sales at 
Less Than Fair Value, Affirmative Preliminary Determination of 
Critical Circumstances and Postponement of Final Determination: 
Certain Frozen Fish Fillets from the Socialist Republic of Vietnam, 
68 FR 4986, 4991-92 (January 31, 2003); unchanged in Notice of Final 
Determination of Sales at Less Than Fair Value and Affirmative 
Critical Circumstances: Certain Frozen Fish Fillets from the 
Socialist Republic of Vietnam, 68 FR 37116 (June 23, 2003).
---------------------------------------------------------------------------

China-Wide Rate

    In selecting the AFA rate for the China-wide entity, Commerce's 
practice is to select a rate that is sufficiently adverse to ensure 
that the uncooperative party does not obtain a more favorable result by 
failing to cooperate than if it had fully cooperated. Specifically, it 
is Commerce's practice to select, as an AFA rate, the higher of: (a) 
the highest dumping margin alleged in the petition; or, (b) the highest 
calculated dumping margin of any respondent in the investigation. As 
AFA, Commerce has assigned to the China-wide entity the rate of 257.11 
percent, which is the highest dumping margin alleged in the Petition.

Combination Rates

    In the Initiation Notice, Commerce stated that it would calculate 
producer/exporter combination rates for the respondents that are 
eligible for a separate rate in this investigation.\9\ Because Commerce 
continues to use facts otherwise available with an adverse inference in 
determining the rate for the only respondent that demonstrated 
eligibility for a separate rate in this investigation, GJY, Commerce 
did not calculate producer/exporter combination rates for that company.
---------------------------------------------------------------------------

    \9\ See Stainless Steel Flanges from India and the People's 
Republic of China: Initiation of Less-Than-Fair-Value 
Investigations, 82 FR 42649, 42653 (September 11, 2017) (Initiation 
Notice).
---------------------------------------------------------------------------

Final Determination

    The final weighted-average dumping margins are as follows:

------------------------------------------------------------------------
                                                             Weighted-
                                                              average
                    Exporter/producer                         dumping
                                                              margins
                                                             (percent)
------------------------------------------------------------------------
Shanxi Guanjiaying Flange Forging Group Co., Ltd........          257.11
China-wide Entity.......................................          257.11
------------------------------------------------------------------------


[[Page 26961]]

Disclosure

    Normally, Commerce discloses to interested parties the calculations 
performed in connection with a final determination within five days of 
its 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). However, because Commerce applied adverse facts 
available to the individually examined company participating in this 
investigation, in accordance with section 776 of the Act, and the 
applied adverse facts available rate is based solely on the Petition, 
there are no calculations to disclose.

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
instruct U.S. Customs and Border Protection (CBP) to continue to 
suspend liquidation of all appropriate entries of stainless steel 
flanges from China, as described in the Appendix to this notice, which 
were entered, or withdrawn from warehouse, for consumption on or after 
March 28, 2018, the date of publication in the Federal Register of the 
affirmative Preliminary Determination.
    Further, pursuant to section 735(c)(1)(B)(ii) of the Act, Commerce 
will also instruct CBP to collect a cash deposit as follows: (1) The 
rate for the exporters listed in the chart above will be the rate we 
have determined in this final determination; (2) for all Chinese 
exporters of subject merchandise which have not received their own 
rate, the cash-deposit rate will be the China-wide rate; and (3) for 
all non-Chinese exporters of subject merchandise which have not 
received their own rate, the cash-deposit rate will be the rate 
applicable to the Chinese exporter/producer combination that supplied 
that non-Chinese exporter. These suspension-of-liquidation instructions 
will remain in effect until further notice. Because there has been no 
demonstration that an adjustment for domestic subsidies is warranted, 
Commerce has not made any such adjustment to the rate assigned to GJY 
or the China-wide entity. Additionally, Commerce is making no 
adjustments for export subsidies to the antidumping cash deposit rate 
in this investigation because we have made no findings in the companion 
countervailing duty investigation that any of the programs are export 
subsidies.\10\
---------------------------------------------------------------------------

    \10\ See Countervailing Duty Investigation of Stainless Steel 
Flanges from the People's Republic of China: Final Affirmative 
Determination, 83 FR 15790 (April 12, 2018); see also, e.g., 
Circular Welded Carbon-Quality Steel Pipe from Pakistan: Affirmative 
Preliminary Determination of Sales at Less Than Fair Value and 
Postponement of Final Determination and Extension of Provisional 
Measures, 81 FR 36867 (June 8, 2016) and accompanying Preliminary 
Decision Memorandum at 13.
---------------------------------------------------------------------------

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because the final determination in this 
proceeding is affirmative, in accordance with section 735(b)(2) of the 
Act, the ITC will make its final determination as to whether the 
domestic industry in the United States is materially injured, or 
threatened with material injury, by reason of imports of stainless 
steel flanges from China no later than 45 days after this final 
determination. If the ITC determines that material injury, or threat of 
material injury, does not exist, the proceeding will be terminated and 
all cash deposits will be refunded. If the ITC determines that such 
injury does exist, Commerce will issue an antidumping duty order 
directing CBP to assess, upon further instruction by Commerce, 
antidumping duties on all imports of the merchandise under 
consideration entered, or withdrawn from warehouse, for consumption on 
or after the effective date of the suspension of liquidation.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of proprietary information disclosed under 
APO in accordance with 19 CFR 351.305(a)(3). Timely notification of the 
return or destruction of APO materials, or conversion to judicial 
protective order, is hereby requested. Failure to comply with the 
regulations and the terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 735(d) and 777(i)(1) of the Act, and 19 CFR 351.210(c).

    Dated: June 4, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix

Scope of the Investigation

    The products covered by this investigation are certain forged 
stainless steel flanges, whether unfinished, semi-finished, or 
finished (certain forged stainless steel flanges). Certain forged 
stainless steel flanges are generally manufactured to, but not 
limited to, the material specification of ASTM/ASME A/SA182 or 
comparable domestic or foreign specifications. Certain forged 
stainless steel flanges are made in various grades such as, but not 
limited to, 304, 304L, 316, and 316L (or combinations thereof). The 
term ``stainless steel'' used in this scope refers to an alloy steel 
containing, by actual weight, 1.2 percent or less of carbon and 10.5 
percent or more of chromium, with or without other elements.
    Unfinished stainless steel flanges possess the approximate shape 
of finished stainless steel flanges and have not yet been machined 
to final specification after the initial forging or like operations. 
These machining processes may include, but are not limited to, 
boring, facing, spot facing, drilling, tapering, threading, 
beveling, heating, or compressing. Semi-finished stainless steel 
flanges are unfinished stainless steel flanges that have undergone 
some machining processes.
    The scope includes six general types of flanges. They are: (1) 
Weld neck, generally used in butt-weld line connection; (2) 
threaded, generally used for threaded line connections; (3) slip-on, 
generally used to slide over pipe; (4) lap joint, generally used 
with stub-ends/butt-weld line connections; (5) socket weld, 
generally used to fit pipe into a machine recession; and (6) blind, 
generally used to seal off a line. The sizes and descriptions of the 
flanges within the scope include all pressure classes of ASME B16.5 
and range from one-half inch to twenty-four inches nominal pipe 
size. Specifically excluded from the scope of this investigation are 
cast stainless steel flanges. Cast stainless steel flanges generally 
are manufactured to specification ASTM A351.
    The country of origin for certain forged stainless steel 
flanges, whether unfinished, semi-finished, or finished is the 
country where the flange was forged. Subject merchandise includes 
stainless steel flanges as defined above that have been further 
processed in a third country. The processing includes, but is not 
limited to, boring, facing, spot facing, drilling, tapering, 
threading, beveling, heating, or compressing, and/or any other 
processing that would not otherwise remove the merchandise from the 
scope of the investigation if performed in the country of 
manufacture of the stainless steel flanges.
    Merchandise subject to the investigation is typically imported 
under headings 7307.21.1000 and 7307.21.5000 of the Harmonized 
Tariff Schedule of the United States (HTSUS). While HTSUS 
subheadings

[[Page 26962]]

and ASTM specifications are provided for convenience and customs 
purposes, the written description of the scope is dispositive.

[FR Doc. 2018-12482 Filed 6-8-18; 8:45 am]
 BILLING CODE 3510-DS-P