[Federal Register Volume 83, Number 127 (Monday, July 2, 2018)]
[Notices]
[Pages 30914-30916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14180]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-080]


Cast Iron Soil Pipe From the People's Republic of China: 
Preliminary Affirmative Countervailing Duty Determination and Alignment 
of Final Determination With Final Antidumping Duty Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers and 
exporters of cast iron soil pipe (soil pipe) from the People's Republic 
of China (China). The period of investigation is January 1, 2017, 
through December 31, 2017.

DATES: Applicable July 2, 2018.

FOR FURTHER INFORMATION CONTACT: Omar Qureshi or Annathea Cook, 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) 482-5307 or (202) 482-0250, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on February 
23, 2018.\1\ On April 9, 2018, Commerce postponed the preliminary 
determination of this investigation and the revised deadline is now 
June 25, 2018.\2\ For a complete description of the events that 
followed the initiation of this investigation, see the Preliminary 
Decision Memorandum.\3\ A list of topics discussed in the Preliminary 
Decision Memorandum is included as Appendix II 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, and 
is available to all parties in the Central Records Unit, room B8024 of 
the main Department of Commerce building. In addition, a complete 
version of the Preliminary Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed and electronic 
versions of the Preliminary Decision Memorandum are identical in 
content.
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    \1\ See Cast Iron Soil Pipe from the People's Republic of China: 
Initiation of Countervailing Duty Investigation, 83 FR 8047 
(February 23, 2018) (Initiation Notice).
    \2\ See Countervailing Duty Investigation of Cast Iron Soil Pipe 
from the People's Republic of China: Postponement of Preliminary 
Determination, 83 FR 15129 (April 9, 2018).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Affirmative Determination: Countervailing Duty Investigation of Cast 
Iron Soil Pipe from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The product covered by this investigation is soil pipe from China. 
For a complete description of the scope of this investigation, see 
Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage, (i.e., scope).\5\ No interested 
party commented on the scope of the

[[Page 30915]]

investigation as it appeared in the Initiation Notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
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Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\6\
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    \6\ 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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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that one or more respondents 
did not act to the best of their ability to respond to Commerce's 
requests for information, it drew an adverse inference where 
appropriate in selecting from among the facts otherwise available.\7\ 
For further information, see ``Use of Facts Otherwise Available and 
Adverse Inferences'' in the Preliminary Decision Memorandum.
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    \7\ See sections 776(a) and (b) of the Act.
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Alignment

    As noted in the Preliminary Decision Memorandum, in accordance with 
section 705(a)(1) of the Act and 19 CFR 351.210(b)(4), Commerce is 
aligning the final countervailing duty (CVD) determination in this 
investigation with the final determination in the companion antidumping 
duty (AD) investigation of soil pipe from China based on a request made 
by the petitioner.\8\ Consequently, the final CVD determination will be 
issued on the same date as the final AD determination, which is 
currently scheduled to be issued no later than November 7, 2018, unless 
postponed.
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    \8\ See the petitioner's Letter, ``Cast Iron Soil Pipe from the 
People's Republic of China: Request to Align Preliminary 
Determinations,'' dated June 12, 2018.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary determination, Commerce shall determine an estimated all-
others rate for companies not individually examined. This rate shall be 
an amount equal to the weighted average of the estimated subsidy rates 
established for those companies individually examined, excluding any 
zero and de minimis rates and any rates based entirely under section 
776 of the Act.
    Commerce calculated an individual estimated countervailable subsidy 
rate for Yuncheng Jiangxian Economic Development Zone HengTong Casting 
Co. Ltd. (HengTong), the only individually examined exporter/producer 
in this investigation. Because the only individually calculated rate is 
not zero, de minimis, or based entirely on facts otherwise available, 
the estimated weighted-average rate calculated for HengTong is the rate 
assigned to all-other producers and exporters, pursuant to section 
705(c)(5)(A)(i) of the Act.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
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Kingway Pipe Co., Ltd...................................          111.20
Yuncheng Jiangxian Economic Development Zone HengTong              13.11
 Casting Co. Ltd \9\....................................
All-Others..............................................           13.11
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct U.S. Customs and Border Protection (CBP) to 
suspend liquidation of entries of subject merchandise as described in 
the scope of the investigation section entered, or withdrawn from 
warehouse, for consumption on or after the date of publication of this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.
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    \9\ As discussed in the Preliminary Decision Memorandum, 
Commerce has found Yuncheng Jiangxian Economic Development Zone 
HengTong Casting Co. Ltd. to be cross-owned with Quwo Hengtong 
Casting Limited Company.
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Disclosure

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

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
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; see also 19 CFR 351.303 (for general 
filing requirements).
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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 
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 intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, 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.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: June 25, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.

Appendix I--Scope of the Investigation

    The merchandise covered by this investigation is cast iron soil 
pipe, whether finished or unfinished, regardless of industry or 
proprietary specifications, and regardless of wall thickness, 
length, diameter, surface

[[Page 30916]]

finish, end finish, or stenciling. The scope of this investigation 
includes, but is not limited to, both hubless and hub and spigot 
cast iron soil pipe. Cast iron soil pipe is nonmalleable iron pipe 
of various designs and sizes. Cast iron soil pipe is generally 
distinguished from other types of nonmalleable cast iron pipe by the 
manner in which it is connected to cast iron soil pipe fittings.
    Cast iron soil pipe is classified into two major types--hubless 
and hub and spigot. Hubless cast iron soil pipe is manufactured 
without a hub, generally in compliance with Cast Iron Soil Pipe 
Institute (CISPI) specification 301 and/or American Society for 
Testing and Materials (ASTM) specification A888, including any 
revisions to those specifications. Hub and spigot pipe has one or 
more hubs into which the spigot (plain end) of a fitting is 
inserted. All pipe meeting the physical description set forth above 
is covered by the scope of this investigation, whether or not 
produced according to a particular standard.
    The subject imports are currently classified in subheading 
7303.00.0030 of the Harmonized Tariff Schedule of the United States 
(HTSUS): Cast iron soil pipe. The HTSUS subheading and 
specifications are provided for convenience and customs purposes 
only; the written description of the scope of this investigation is 
dispositive.

Appendix II--List of Topics Discussed in the Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. New Subsidy Allegations
V. Alignment
VI. Injury Test
VII. Application of the CVD Law to Imports From the China
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Subsidies Valuation
X. Benchmarks
XI. Analysis of Programs
XII. Calculation of All-Others Rate
XIII. ITC Notification
XIV. Recommendation

[FR Doc. 2018-14180 Filed 6-29-18; 8:45 am]
 BILLING CODE 3510-DS-P