[Federal Register Volume 83, Number 133 (Wednesday, July 11, 2018)]
[Notices]
[Pages 32075-32078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-14827]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-063]


Cast Iron Soil Pipe Fittings From the People's Republic of China: 
Final Affirmative Countervailing Duty Determination

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: The Department of Commerce (Commerce) determines that 
countervailable subsidies are being provided to producers and exporters 
of Cast Iron Soil Pipe Fittings (soil pipe fittings) from the People's 
Republic of China (China). The period of investigation is January 1, 
2016, through December 31, 2016.

DATES: Applicable July 11, 2018.

FOR FURTHER INFORMATION CONTACT: Dennis McClure or Jinny Ahn, 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) 482-5973 or (202) 
482-0339, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    The mandatory respondents in this investigation are Shanxi Xuanshi 
Industrial Group Co., Ltd. (Shanxi Xuanshi), Shijiazhuang Chengmei 
Import & Export Co., Ltd. (Shijiazhuang Chengmei), and Wor-Biz 
International Trading Co., Ltd. (Anhui) (Wor-Biz). On December 19, 
2017, Commerce published in the Federal Register the Preliminary 
Determination of the countervailing duty (CVD) investigation of cast 
iron soil pipes from China.\1\ In the Preliminary Determination, 
Commerce aligned the final CVD determination with the final 
determination in the companion antidumping duty (AD) investigation, in 
accordance with section 705(a)(1) of the Act and 19 CFR 351.210(b)(4).
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    \1\ See Cast Iron Soil Pipe Fittings from the People's Republic 
of China: Preliminary Affirmative Countervailing Duty Determination 
and Alignment of Final Determination With Final Antidumping Duty 
Determination, 82 FR 60178 (December 19, 2017) (Preliminary 
Determination).
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    On January 23, 2018, Commerce exercised its discretion to toll all 
deadlines affected by the closure of the Federal Government from 
January 20 through 22, 2018. In accordance with Commerce's practice, if 
the new deadline falls on a non-business day, the deadline will become 
the next

[[Page 32076]]

business day. Accordingly, the deadline for the final determination of 
this investigation was revised to July 5, 2018.\2\ On April 19, 2018, 
Commerce released its Post-Preliminary Analysis.\3\
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    \2\ See Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by 3 days.
    \3\ See Memorandum, ``Post-Preliminary Analysis of 
Countervailing Duty Investigation: Cast Iron Soil Pipe Fittings from 
the People's Republic of China,'' dated April 19, 2018 (Post-
Preliminary Analysis).
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    A summary of the events that occurred since Commerce published the 
Preliminary Determination, as well as a full discussion of the issues 
raised by interested parties for this final determination, can be found 
in the Issues and Decision Memorandum issued concurrently with this 
notice.\4\ The Issues and 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 Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov/frn/. The signed Issues and Decision 
Memorandum and the electronic version are identical in content.
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    \4\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Determination of the Countervailing Duty Investigation of Cast 
Iron Soil Pipe Fittings from the People's Republic of China'' 
(Issues and Decision Memorandum), dated concurrently with, and 
hereby adopted by, this notice.
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Scope of the Investigation

    The products covered by this investigation are cast iron soil pipe 
fittings from China. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation'' in Appendix I of 
this notice. For this final determination, Commerce has issued a scope 
memorandum addressing interested parties'' comments regarding scope 
issues presented in the case briefs and in subsequent scope 
comments.\5\ Commerce has determined to modify the scope of the 
investigation to include two additional subheadings of the U.S. 
Harmonized Tariff Schedule under which subject merchandise may enter. 
Commerce has also provided a clarification in the Final Scope 
Memorandum. For further discussion, see Commerce's Final Scope 
Memorandum. The scope in Appendix I reflects the final scope language.
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    \5\ See Memorandum, ``Countervailing Duty and Less-Than-Fair-
Value Investigations of Cast Iron Soil Pipe Fittings from the 
People's Republic of China: Final Scope Memorandum'' (Final Scope 
Memorandum), dated concurrently with, and hereby adopted by, this 
notice.
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Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation and the issues raised in 
the case and rebuttal briefs by parties in this investigation are 
discussed in the Issues and Decision Memorandum. A list of the issues 
that parties raised, and to which we responded in the Issues and 
Decision Memorandum, is attached to this notice at Appendix II.

Methodology

    Commerce conducted this investigation in accordance with section 
701 of the Tariff Act of 1930, as amended (the Act). For each of the 
subsidy programs found countervailable, Commerce determines that there 
is a subsidy, i.e. , a financial contribution by an ``authority'' that 
confers a benefit to the recipient, and that the subsidy is 
specific.\6\ For a full description of the methodology underlying our 
final determination, see the Issues and Decision Memorandum.
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    \6\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; see section 771(5)(E) of the Act regarding 
benefit; see section 771(5A) of the Act regarding specificity.
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    In making these findings, Commerce relied, in part, on facts 
otherwise 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, Commerce 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 Issues and Decision Memorandum.
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    \7\ See sections 776(a), (b), and 782(d) of the Act.
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Changes Since the Preliminary Determination

    Based on our review and analysis of the comments received from the 
interested parties, our findings at verification, and the minor 
corrections presented at verification, we made certain changes to the 
respondents'' subsidy rate calculations. For a discussion of these 
changes, see the Issues and Decision Memorandum.

Final Determination

    In accordance with section 705(c)(l)(B)(i) of the Act, we 
calculated rates for Shanxi Xuanshi and Wor-Biz, producers/exporters of 
subject merchandise selected for individual examination in this 
investigation. With regard to Shijiazhuang Chengmei, for the reasons 
described in the Preliminary Determination, Commerce assigned a rate 
based entirely on adverse facts available pursuant to section 776 of 
the Act. No interested party commented on our preliminary decision, and 
so for purposes of this final determination, we continue to assign 
Shijiazhuang Chengmei a rate based entirely on AFA.
    Section 705(c)(5)(A) of the Act provides that in the final 
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. In this investigation, we calculated individual 
estimated countervailable subsidy rates for Shanxi Xuanshi and Wor-Biz 
that are not zero, de minimis , or based entirely on facts otherwise 
available. As a result, we calculated the all-others rate based on a 
weighted average of the individual estimated subsidy rates calculated 
for the examined respondents using each company's publicly ranged 
values for the merchandise under consideration.\8\
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    \8\ See Memorandum regarding: Calculation of the All-Others Rate 
for the Final Determination, dated July 5, 2018.
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    Commerce determines that the following estimated countervailable 
subsidy rates exist:

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                                                           Subsidy rate
                         Company                             (percent)
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Shanxi Xuanshi Industrial Group Co., Ltd................           34.87
Wor-Biz International Trading Co., Ltd. (Anhui).........            7.37
Shijiazhuang Chengmei Import & Export Co., Ltd..........          133.94

[[Page 32077]]

 
All-Others..............................................           23.28
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Disclosure

    We intend to disclose the calculations performed to parties in this 
proceeding, for this final determination, within five days of the date 
of publication of our final determination, in accordance with 19 CFR 
351.224(b).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination and pursuant to 
section 703(d)(1)(B) and (d)(2) of the Act, Commerce instructed 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 the Preliminary Determination in the 
Federal Register . In accordance with section 703(d) of the Act, we 
issued instructions to CBP to discontinue the suspension of liquidation 
for CVD purposes for subject merchandise entered, or withdrawn from 
warehouse, on or after April 18, 2018, but to continue the suspension 
of liquidation of all entries from December 19, 2017, through April 17, 
2018.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a CVD order, will 
reinstate the suspension of liquidation under section 706(a) of the 
Act, and will require a cash deposit of estimated countervailing duties 
for such entries of subject merchandise in the amounts indicated above. 
If the ITC determines that material injury, or threat of material 
injury, does not exist, this proceeding will be terminated and all 
estimated duties deposited or securities posted as a result of the 
suspension of liquidation will be refunded or canceled.

International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
ITC of our determination. In addition, we are making available to the 
ITC all non-privileged and non-proprietary information related to this 
investigation. We will allow the ITC access to all privileged and 
business proprietary information in our files, provided the ITC 
confirms that it will not disclose such information, either publicly or 
under an administrative protective order (APO), without the written 
consent of the Assistant Secretary for Enforcement and Compliance.
    Because the final determination in this proceeding is affirmative, 
in accordance with section 705(b) 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 soil pipe fittings from China no later than 45 
days after our 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 a CVD order 
directing CBP to assess, upon further instruction by Commerce, 
countervailing duties on all imports of the subject merchandise 
entered, or withdrawn from warehouse, for consumption on or after the 
effective date of the suspension of liquidation, as discussed above in 
the ``Continuation of Suspension of Liquidation'' section.

Notification Regarding Administrative Protective Orders

    In the event that the ITC issues a final negative injury 
determination, this notice will serve as the only reminder to parties 
subject to an APO of their responsibility concerning the destruction of 
proprietary information disclosed under APO in accordance with 19 CFR 
351.305(a)(3). Timely written notification of the return/destruction of 
APO materials or conversion to judicial protective order is hereby 
requested. Failure to comply with the regulations and terms of an APO 
is a violation which is subject to sanction.
    This determination is issued and published pursuant to sections 
705(d) and 777(i) of the Act and 19 CFR 351.210(c).

    Dated: July 5, 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 I--Scope of the Investigation

    The merchandise covered by this investigation is cast iron soil 
pipe fittings, finished and unfinished, regardless of industry or 
proprietary specifications, and regardless of size. Cast iron soil 
pipe fittings are nonmalleable iron castings of various designs and 
sizes, including, but not limited to, bends, tees, wyes, traps, 
drains, and other common or special fittings, with or without side 
inlets.
    Cast iron soil pipe fittings are classified into two major 
types--hubless and hub and spigot. Hubless cast iron soil pipe 
fittings are 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. Hub and spigot pipe fittings have hubs into which the spigot 
(plain end) of the pipe or fitting is inserted. Cast iron soil pipe 
fittings are generally distinguished from other types of 
nonmalleable cast iron fittings by the manner in which they are 
connected to cast iron soil pipe and other fittings.
    The subject imports are normally classified in subheading 
7307.11.0045 of the Harmonized Tariff Schedule of the United States 
(HTSUS): Cast fittings of nonmalleable cast iron for cast iron soil 
pipe. They may also be entered under HTSUS 7324.29.0000 and 
7307.92.3010. The HTSUS subheadings 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 Issues and Decision 
Memorandum

I. Summary
II. Background
III. Use of Facts Otherwise Available and Adverse Inferences
IV. Subsidies Valuation
V. Analysis of Programs
VI. Analysis of Comments
    Comment 1: Whether Commerce Should Use a Tier 1 Benchmark for 
Shanxi Xuanshi's Metallurgical Coke Benefit Calculation
    Comment 2: Whether Commerce Should Use a Tier 1 Benchmark for 
Shanxi Xuanshi's Iron Ore Benefit Calculation
    Comment 3: Whether Commerce Appropriately Averaged Tier 2 Iron 
Ore Benchmark Prices and Used the Appropriate Benchmark for 
Transportation
    Comment 4: Whether Commerce Overstated the Subsidy Rate for 
Policy Loans, Purchases of Electricity, Pig Iron, and Ferrous Scrap 
for LTAR
    Comment 5: Whether Commerce Improperly Applied AFA to the 
Calculation of the Benefits Attributable to Guangzhou Premier for 
the Purchase of Pig Iron and Ferrous Scrap for LTAR
    Comment 6: Whether Commerce Should Consider Shanxi Xuanshi's 
Steel Scrap as a Subsidizable Input
    Comment 7: Whether Commerce Erred in its Policy Loan Benefits 
Calculation for Shanxi Xuanshi

[[Page 32078]]

    Comment 8: Whether Commerce Erred in Its Electricity Benefits 
Calculation for Shanxi Xuanshi
VII. Recommendation

 [FR Doc. 2018-14827 Filed 7-10-18; 8:45 am]
 BILLING CODE 3510-DS-P