[Federal Register Volume 83, Number 146 (Monday, July 30, 2018)]
[Notices]
[Pages 36519-36521]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-16194]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-583-863]


Forged Steel Fittings From Taiwan: Final Determination of Sales 
at Less Than Fair Value

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of forged steel fittings from Taiwan are being, or are likely to be, 
sold in the United States at less than fair value (LTFV). The period of 
investigation (POI) is October 1, 2016, through September 30, 2017. The 
final margins of sales at LTFV are listed below in the ``Final 
Determination'' section of this notice.

DATES: Applicable July 30, 2018.

FOR FURTHER INFORMATION CONTACT: Robert Palmer (202) 482-9068 or 
Suzanne Lam at (202) 482-0783, AD/CVD Operations, Enforcement and 
Compliance, International Trade

[[Page 36520]]

Administration, U.S. Department of Commerce, 1401 Constitution Avenue 
NW, Washington, DC 20230.

SUPPLEMENTARY INFORMATION:

Background

    On May 17, 2018, Commerce published in the Federal Register the 
Preliminary Determination of sales at LTFV of forged steel fittings 
from Taiwan and invited interested parties to comment.\1\ The only 
comment received was from Bonney Forge Corporation and United Steel, 
Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial 
and Service Workers International Union (USW) (collectively, the 
petitioners) agreeing with our affirmative preliminary determination to 
apply total adverse facts available (AFA) to the non-responsive 
companies.\2\ Accordingly, we made no changes to the Preliminary 
Determination.
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    \1\ See Forged Steel Fittings from Taiwan: Affirmative 
Preliminary Determination of Sales at Less Than Fair Value, 83 FR 
22957 (May 17, 2018) (Preliminary Determination) and accompanying 
Preliminary Decision Memorandum.
    \2\ See letter from the petitioners re: Petitioners' Case Brief, 
dated June 15, 2018.
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Scope of the Investigation

    The products covered by this investigation are forged steel 
fittings from Taiwan. For a full description of the scope of this 
investigation, see the ``Scope of the Investigation,'' at the Appendix 
to this notice.

Scope Comments

    During the course of this investigation and the concurrent 
investigations of forged steel fittings from the People's Republic of 
China (China) and Italy, Commerce received numerous scope comments from 
interested parties. Commerce issued a Preliminary Scope Decision 
Memorandum \3\ and a Second Preliminary Scope Decision Memorandum \4\ 
to address these comments. In the Second Preliminary Scope Decision 
Memorandum, Commerce preliminarily found that outlets are fittings and 
are included in the scope of the investigations and that butt weld 
outlets are butt weld fittings and are excluded from the scope of the 
investigations. Following the Preliminary Determination, Commerce 
received scope case and rebuttal briefs from the petitioners and 
M.E.G.A S.p.A. (MEGA) concerning outlets and butt weld outlets as 
specified in the scope.\5\ Based on these parties' comments and our 
analysis of them, we made no changes to the scope of the 
investigations, as it appeared in the Preliminary Determination. 
Further, we continued to find that outlets are fittings and are 
therefore covered by the scope of this investigation and the concurrent 
investigation of forged steel fittings from China and Italy, while butt 
weld outlets are butt weld fittings and are excluded from the scope of 
the investigation. For a summary of the product coverage comments and 
rebuttals submitted to the records of this investigation and the 
concurrent investigations of forged steel fittings from China and 
Italy, and our accompanying discussion and analysis of them, see the 
Final Scope Decision Memorandum.\6\
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    \3\ See Memorandum to the File, ``Scope Comments Decision 
Memorandum for the Preliminary Determinations,'' dated March 7, 2018 
(Preliminary Scope Decision Memorandum).
    \4\ See Memorandum to the File, ``Second Preliminary Scope 
Decision Memorandum,'' dated May 7, 2018 (Second Preliminary Scope 
Decision Memorandum).
    \5\ See letter from MEGA re: Brief of MEGA in Response to Scope 
Issues Raised by the Preliminary Determination Regarding the 
Expansion of the Scope of the Investigations to Include Outlets, 
dated May 29, 2018; letter from the petitioners re: Case Brief on 
Scope, dated May 29, 2018; letter from MEGA re: Rebuttal Brief of 
MEGA in Response to Scope Issues Raised by the Preliminary 
Determination Regarding the Expansion of the Scope of the 
Investigations to Include Outlets, dated June 4, 2018; and letter 
from the petitioners re: Scope Rebuttal Brief, dated June 4, 2018.
    \6\ See Memorandum to the File, ``Forged Steel Fittings from 
China, Italy and Taiwan: Final Scope Determination Decision 
Memorandum,'' dated concurrently with this notice (Final Scope 
Decision Memorandum).
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Verification

    As stated in the Preliminary Determination, Kopex Industrial Co. 
(Kopex), a mandatory respondent in this investigation, claimed that it 
did not produce or export forged steel fittings from Taiwan during the 
POI.\7\ As provided in section 782(i) of the Tariff Act of 1930, as 
amended (the Act), on May 30, 2018, we conducted verification of 
Kopex's claim using standard verification procedures, including an 
examination of relevant accounting records and original source 
documents provided by Kopex. As a result of the verification, we 
confirmed that Kopex did not produce or sell forged steel fittings from 
Taiwan during the POI.\8\ Because the other mandatory respondents, Both 
Well Steel Fittings Co., Ltd. (Bothwell) and Luchu Shin Yee Works Co., 
Ltd. (Luchu), failed to participate in the investigation, there was no 
information to verify with respect to either company.\9\
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    \7\ See Preliminary Determination Memorandum at 3-4.
    \8\ See Memorandum to the File, ``Verification of Kopex 
Industrial Co., Ltd.,'' dated June 8, 2018.
    \9\ See Preliminary Determination, 83 FR at 22958.
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Use of Adverse Facts Available

    The mandatory respondents Bothwell and Luchu failed to participate 
in this investigation.\10\ Therefore, in the Preliminary Determination, 
pursuant to sections 776(a)(1), 776(a)(2)(A)-(C), and 776(b) of the 
Act, we assigned Bothwell and Luchu a dumping rate based on AFA. No 
parties filed comments in opposition to our Preliminary Determination 
with respect to Bothwell and Luchu and there is no new information on 
the record that would cause us to revisit our preliminary AFA 
determination. Accordingly, we continue to find that the application of 
AFA pursuant to section 776(a) and (b) of the Act is warranted with 
respect to Bothwell and Luchu. In applying total AFA, we assigned to 
Bothwell's and Luchu's exports of the subject merchandise a rate of 
116.17 percent, which is the only rate calculated in the Petition 
Amendment \11\ and which has been corroborated to the extent 
practicable within the meaning of section 776(c) of the Act.\12\
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    \10\ See Preliminary Determination Memorandum at 4-8.
    \11\ See Petitions for the Imposition of Antidumping and 
Countervailing Duties: Forged Steel Fittings from the People's 
Republic of China, Italy, and Taiwan, Volume V, dated October 5, 
2017 (the Petition); see also letter from the petitioners' re: 
Response to Supplemental Questionnaire, dated October 11, 2017 at 1-
2 (Petition Amendment).
    \12\ See Preliminary Determination Memorandum at 6-8.
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All-Others Rate

    As discussed in the Preliminary Determination, Commerce based the 
``All-Others'' rate on the, as noted above, only dumping margin alleged 
in the Petition Amendment,\13\ in accordance with section 735(c)(5)(B) 
of the Act. We made no changes to the selection of this rate for this 
final determination.
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    \13\ See Petition and Petition Amendment; see also Preliminary 
Determination Memorandum at 8-9.
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Final Determination

    The final estimated weighted-average dumping margins are as 
follows:

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                  Exporter or producer                        average
                                                          dumping margin
                                                             (percent)
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Both Well Steel Fittings Co., Ltd.......................          116.17
Luchu Shin Yee Works Co., Ltd...........................          116.17
All-Others..............................................          116.17
------------------------------------------------------------------------


[[Page 36521]]

Continuation of Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, for this final 
determination, we will direct U.S. Customs and Border Protection (CBP) 
to continue to suspend liquidation of all entries of forged steel 
fittings from Taiwan, as described in the Appendix to this notice, 
which are entered, or withdrawn from warehouse, for consumption on or 
after May 17, 2018, the date of publication in the Federal Register of 
the affirmative Preliminary Determination.
    Pursuant to section 735(c)(1)(B)(ii) of the Act and 19 CFR 
351.210(d), Commerce will instruct CBP to require a cash deposit for 
such entries of merchandise equal to the estimated weighted-average 
dumping margin or the estimated all-others rate, as follows: (1) The 
cash deposit rate for the respondents listed above will be equal to the 
respondent-specific estimated weighted-average dumping margin 
determined in this final determination; (2) if the exporter is not a 
respondent identified above but the producer is, then the cash deposit 
rate will be equal to the respondent-specific estimated weighted-
average dumping margin established for that producer of the subject 
merchandise; and (3) the cash deposit rate for all other producers and 
exporters will be equal to the all-others estimated weighted-average 
dumping margin.

Disclosure

    The estimated weighted-average dumping margins assigned to the 
mandatory respondents in this investigation in the Preliminary 
Determination were based on AFA. As these margins are based on the rate 
calculated in the Petition Amendment, and because we made no changes to 
these margins since the Preliminary Determination, no disclosure of 
calculations is necessary for this final determination.

International Trade Commission Notification

    In accordance with section 735(d) of the Act, we will notify the 
International Trade Commission (ITC) of the final affirmative 
determination of sales at LTFV. Because Commerce's final determination 
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 or sales (or the likelihood of 
sales) for importation of forged steel fittings, no later than 45 days 
after this final determination. If the ITC determines that such injury 
does not exist, this proceeding will be terminated and all cash 
deposits posted 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 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

    This notice will serve as a reminder to parties subject to an 
administrative protective order (APO) of their responsibility 
concerning the disposition of propriety information disclosed under APO 
in accordance with 19 CFR 351.305(a)(3). Timely written notification of 
return or 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 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: July 23, 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 merchandise covered by this investigation is carbon and 
alloy forged steel fittings, whether unfinished (commonly known as 
blanks or rough forgings) or finished. Such fittings are made in a 
variety of shapes including, but not limited to, elbows, tees, 
crosses, laterals, couplings, reducers, caps, plugs, bushings, 
unions, and outlets. Forged steel fittings are covered regardless of 
end finish, whether threaded, socket-weld or other end connections.
    While these fittings are generally manufactured to 
specifications ASME B16.11, MSS SP-79, MSS SP-83, MSS SP-97, ASTM 
A105, ASTM A350, and ASTM A182, the scope is not limited to fittings 
made to these specifications.
    The term forged is an industry term used to describe a class of 
products included in applicable standards, and does not reference an 
exclusive manufacturing process. Forged steel fittings are not 
manufactured from casting. Pursuant to the applicable 
specifications, subject fittings may also be machined from bar stock 
or machined from seamless pipe and tube.
    All types of fittings are included in the scope regardless of 
nominal pipe size (which may or may not be expressed in inches of 
nominal pipe size), pressure rating (usually, but not necessarily 
expressed in pounds of pressure/PSI, e.g., 2,000 or 2M; 3,000 or 3M; 
6,000 or 6M; 9,000 or 9M), wall thickness, and whether or not heat 
treated.
    Excluded from this scope are all fittings entirely made of 
stainless steel. Also excluded are flanges, butt weld fittings, butt 
weld outlets, nipples, and all fittings that have a maximum pressure 
rating of 300 pounds of pressure/PSI or less.
    Also excluded are fittings certified or made to the following 
standards, so long as the fittings are not also manufactured to the 
specifications of ASME B16.11, MSS SP-79, MSS SP-83, MSS SP-97, ASTM 
A105, ASTM A350, and ASTM A182:

<bullet> American Petroleum Institute (API) API 5CT, API 5L, or API 
11B
<bullet> Society of Automotive Engineering (SAE) SAE J476, SAE J514, 
SAE J516, SAE J517, SAE J518, SAE J1026, SAE J1231, SAE J1453, SAE 
J1926, J2044 or SAE AS 35411

<bullet> Underwriter's Laboratories (UL) certified electrical 
conduit fittings
<bullet> ASTM A153, A536, A576, or A865
<bullet> Casing Conductor Connectors 16-42 inches in diameter made 
to proprietary specifications
<bullet> Military Specification (MIL) MIL-C-4109F and MIL-F-3541
<bullet> International Organization for Standardization (ISO) 
ISO6150-B

    To be excluded from the scope, products must have the 
appropriate standard or pressure markings and/or accompanied by 
documentation showing product compliance to the applicable standard 
or pressure, e.g., ``API 5CT'' mark and/or a mill certification 
report.
    Subject carbon and alloy forged steel fittings are normally 
entered under Harmonized Tariff Schedule of the United States 
(HTSUS) 7307.99.1000, 7307.99.3000, 7307.99.5045, and 7307.99.5060. 
They also may be entered under HTSUS 7307.92.3010, 7307.92.3030, 
7307.92.9000, and 7326.19.0010. The HTSUS subheadings and 
specifications are provided for convenience and customs purposes; 
the written description of the scope is dispositive.

[FR Doc. 2018-16194 Filed 7-27-18; 8:45 am]
 BILLING CODE 3510-DS-P