[Federal Register Volume 83, Number 159 (Thursday, August 16, 2018)]
[Notices]
[Pages 40745-40748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17688]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-877]


Stainless Steel Flanges From India: Final Affirmative 
Determination of Sales at Less Than Fair Value and Final Affirmative 
Critical Circumstance Determination

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

SUMMARY: The Department of Commerce (Commerce) determines that imports 
of stainless steel flanges from India are being, or are likely to be, 
sold in the United States at less than fair value (LTFV) during the 
period of investigation (POI) July 1, 2016, through June 30, 2017.

DATES: Applicable August 16, 2018.

FOR FURTHER INFORMATION CONTACT: Benito Ballesteros or Christian 
Llinas, 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) 482-7425 
or (202) 482-4877, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On March 28, 2018, Commerce published in the Federal Register the 
preliminary affirmative determination of sales at LTFV in the 
antidumping duty (AD) investigation of stainless steel flanges from 
India.\1\ The Coalition of American Flange Producers and its individual 
members, Core Pipe Products, Inc. and Maass Flange Corporation 
(collectively, the petitioners), Chandan Steel Limited

[[Page 40746]]

(Chandan), Bebitz Flanges Works Pvt. Ltd. (Bebitz) and Echjay Forgings 
Pvt. Ltd. (Echjay) (collectively, the respondents) filed case and 
rebuttal briefs. A summary of the events that occurred since Commerce 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the accompanying Issues and Decision Memorandum.\2\ 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 register users at http://access.trade.gov, and 
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. The signed and electronic versions of the Issues 
and Decision Memorandum are identical in content.
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    \1\ See Stainless Steel Flanges from India: Preliminary 
Affirmative Determination of Sales at Less Than Fair Value, 
Preliminary Affirmative Determination of Critical Circumstances, 
Postponement of Final Determination, and Extension of Provisional 
Measures, 83 FR 13246 (March 28, 2018) (Preliminary Determination) 
and accompanying Preliminary Decision Memorandum (PDM).
    \2\ See Memorandum, ``Issues and Decision Memorandum for the 
Final Affirmative Determination in the Less-Than-Fair-Value 
Investigation of Stainless Steel Flanges from India,'' dated 
concurrently with this determination and hereby adopted by this 
notice (Issues and Decision Memorandum or IDM).
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Scope of the Investigation

    The product covered by this investigation is stainless steel 
flanges from India. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\3\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\4\ As no interested 
parties submitted timely comments on the scope of this investigation, 
we made no changes to the scope language as it appeared in the 
Initiation Notice.
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    \3\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \4\ See Initiation Notice.
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Period of Investigation

    The period of investigation is July 1, 2016, through June 30, 2017.

Verification

    As provided in section 782(i) of the Act, between April and May 
2018, Commerce verified the sales and cost data reported by Chandan. We 
used standard verification procedures, including an examination of 
relevant accounting and production records, and original source 
documents provided by the respondents.

Analysis of Comments Received

    All issues raised in the case and rebuttal briefs that were 
submitted by interested parties in this investigation are addressed in 
the Issues and Decision Memorandum. A list of these issues is attached 
to this notice at Appendix II.

Use of Facts Available and Adverse Facts Available

    For purposes of this final determination, Commerce determined the 
Echjay single entity's \5\ and the Bebitz/Viraj single entity's \6\ 
margin on the basis of adverse facts available, pursuant to sections 
776(a)(2)(B)-(C) and 776(b) of the Act. For further information, see 
the Issues and Decision Memorandum.
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    \5\ The Echjay single entity is comprised of Echjay Forgings Pvt 
Limited, Echjay Industries Private Limited, Echjay Forging 
Industries Private Limited, and Spire Industries Pvt. Limited.
    \6\ The Bebitz/Viraj single entity is comprised of Bebitz 
Flanges Works Private Limited, Viraj Profiles Limited (Viraj), 
Flanschen werk Bebitz GmbH (FBG), Bebitz USA, Inc. (Bebitz USA), and 
Viraj USA, Inc. (Viraj USA).
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Changes Since the Preliminary Determination

    Based on our analysis of the comments received and our finding at 
verification, we made certain changes to the margin calculations. For a 
discussion of these changes, see the Issues and Decision Memorandum.

Final Affirmative Determination of Critical Circumstances

    For the final determination, we continue to find that critical 
circumstances exist with respect to imports of stainless steel flanges 
from Chandan, the Bebitz/Viraj single entity, the Echjay single entity, 
and companies covered by the ``all others'' rate. Thus, pursuant to 
section 735(a)(3) of the Act, and 19 CFR 351.206, we find that critical 
circumstances exist with respect to subject merchandise produced or 
exported by Chandan, the Bebitz/Viraj single entity, the Echjay single 
entity, and ``all others.'' For further discussion, see the Issues and 
Decision Memorandum at ``Critical Circumstances.''

All-Others Rate

    Section 735(c)(5)(A) of the Act provides that the estimated ``all-
others'' rate shall be an amount equal to the weighted average of the 
estimated weighted-average dumping margins established for exporters 
and producers individually investigated, excluding any zero or de 
minimis margins, and any margins determined entirely under section 776 
of the Act. Because the final rate determined for the Echjay single 
entity and the Bebitz/Viraj single entity is based entirely on adverse 
facts available, we, therefore, based the ``all others'' rate on the 
rate calculated for Chandan. For a discussion of this methodology, see 
the Issues and Decision Memorandum.

Final Determination Margins

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

------------------------------------------------------------------------
                                             Estimated
                                             weighted-     Cash deposit
          Exporter or producer                average     rate (adjusted
                                          dumping margin  for offset(s))
                                             (percent)       (percent)
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Chandan.................................           19.16           14.29
Echjay single entity....................          145.25          140.38
Bebitz/Viraj single entity..............          145.25          145.25
All Others..............................           19.16           14.29
------------------------------------------------------------------------

Disclosure

    We will disclose the calculations performed with respect to 
Chandan's weighted-average dumping margin to interested parties within 
five days of the public announcement of this final determination in 
accordance with 19 CFR 351.224(b). With respect to the Echjay single 
entity and the Bebitz/Viraj single entity, because Commerce relied on 
adverse facts available to determine

[[Page 40747]]

the rate for these entities and selected the highest petition margin as 
the adverse facts available rate, there are no calculations to 
disclose.\7\
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    \7\ See Issues and Decision Memorandum at 7-8.
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Continuation of Suspension of Liquidation

    For entries made by Chandan, the Bebitz/Viraj single entity, the 
Echjay single entity, and companies covered by the ``all others'' rate, 
in accordance with section 735(c)(4)(B) of the Act, because we continue 
to find that critical circumstances exist, we will instruct CBP to 
continue to suspend liquidation of all appropriate entries of stainless 
steel flanges from India which were entered, or withdrawn from 
warehouse, for consumption on or after December 28, 2017, which is 90 
days prior to the date of publication of the preliminary determination 
of this investigation in the Federal Register.
    Commerce will instruct CBP to require a cash deposit equal to the 
estimated amount by which the normal value exceeds the U.S. price as 
shown above. Commerce normally adjusts cash deposits for estimated 
antidumping duties by the amount of export subsidies countervailed in a 
companion countervailing duty (CVD) proceeding, when CVD provisional 
measures are in effect. Any such adjusted cash deposit rate may be 
found in the ``Final Determination Margins'' section, above.
    Additionally, 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. The suspension of liquidation will remain in effect 
until further notice.

ITC Notification

    In accordance with section 735(d) of the Act, we will notify the 
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, 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 
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 serves as a reminder to parties subject to 
administrative protective order (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 return/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 violation subject to 
sanction.
    This determination and this notice are issued and published 
pursuant to sections 735(d) and 777(i)(1) of the Act.

Notification to Interested Parties

    We are issuing and publishing this determination and notice in 
accordance with sections 735(d) and 777(i) of the Act and 19 CFR 
352.210(c).

    Dated: August 10, 2018.
James Maeder,
Associate Deputy Assistant Secretary for Antidumping and Countervailing 
Duty Operations performing the duties of Deputy Assistant Secretary for 
Antidumping and Countervailing Duty Operations.

Appendix I

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

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Scope of the Investigation
IV. Final Determination of Critical Circumstances
V. Affiliation and Collapsing
VI. Changes Since the Preliminary Determination
VII. Use of Adverse Facts Available
VIII. Discussion of the Issues
    Comment 1: Application of Total AFA for Bebitz/Viraj single 
entity
    Comment 2: Collapsing of Echjay and its Affiliates, and 
Application of Total AFA to the Echjay Single Entity

[[Page 40748]]

    Comment 3: Product Characteristics used in the CONNUM 
Methodology
    Comment 4: Application of Partial AFA for Packing Costs
    Comment 5: Home Market Sales Viability
    Comment 6: Credit Expenses
    Comment 7: Clarification of the Scope of the Order
    Comment 8: Import Duties
    Comment 9: G&A Expense Ratio Calculation
    Comment 10: Antidumping Duty Cash Deposit Rate offset by the 
Countervailing Duty Export Subsidy Rate
IX. Conclusion

[FR Doc. 2018-17688 Filed 8-15-18; 8:45 am]
BILLING CODE 3510-DS-P