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[Federal Register Volume 83, Number 170 (Friday, August 31, 2018)]
[Notices]
[Pages 44570-44573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19094]

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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-062]

Cast Iron Soil Pipe Fittings From the People's Republic of China: 
Amended Final Determination of Sales at Less Than Fair Value and 
Antidumping Duty Order

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

SUMMARY: The Department of Commerce (Commerce) is amending its final 
determination of sales at less than fair value (LTFV) as a result of 
ministerial errors. In addition, based on affirmative final 
determinations by Commerce and the International Trade Commission (the 
ITC), Commerce is issuing an antidumping duty order on cast iron soil 
pipe fittings (soil pipe fittings) from the People's Republic of China 
(China).

DATES: Applicable August 31, 2018.

FOR FURTHER INFORMATION CONTACT: Sergio Balbontin at (202) 482-4474 or 
Michael Bowen at (202) 482-0768, AD/CVD Operations, Enforcement and 
Compliance, U.S. Department of Commerce, 1401 Constitution Avenue NW, 
Washington, DC 20230.

SUPPLEMENTARY INFORMATION: 

Background

    On July 17, 2018, Commerce published its affirmative final 
determination in the LTFV investigation of soil pipe fittings from 
China on July 17, 2018.\1\ On July 11, 2018, Commerce received 
ministerial error allegations. See the ``Amendment to Final 
Determination'' section below for further discussion.
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    \1\ See Cast Iron Soil Pipe Fittings from the People's Republic 
of China: Final Affirmative Determination of Sales at Less Than Fair 
Value and Final Determination of Critical Circumstances, in Part, 83 
FR 33205 (July 17, 2018) (Final Determination).
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    On August 22, 2018, the ITC notified Commerce of its final 
determination, pursuant to 735(d) of the Act, that an industry in the 
United States is materially injured within the meaning of section 
735(b)(1)(A)(i) of the Act, by reason of LTFV imports of soil pipe 
fittings from China, and of its determination that critical 
circumstances do not exist with respect to imports of soil pipe 
fittings from China.\2\
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    \2\ See ITC Notification Letter to the Deputy Assistant 
Secretary for Enforcement and Compliance, referencing ITC 
Investigation Nos. 701-TA-583 and 731-TA-1381 (August 20, 2018).
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Scope of the Order

    The merchandise covered by the scope of this order 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 (other 
than drain bodies), 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.
    Excluded from the scope are all drain bodies. Drain bodies are 
normally classified in subheading 7326.90.86.88 of the Harmonized 
Tariff Schedule of the United States (HTSUS).
    The cast iron soil pipe fittings subject to the scope of this order 
are normally classified in subheading 7307.11.0045 of the 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 order is 
dispositive.

Amendment to Final Determination

    Pursuant to 19 CFR 351.224(e), Commerce is amending the Final 
Determination to correct certain ministerial errors.\3\ Based on these 
corrections, Shanxi Xuanshi Industrial Group Co., Ltd.'s (Xuanshi) 
estimated weighted-average dumping margin increases from 27.18 percent 
to 84.13

[[Page 44571]]

percent, and Wor-Biz Trading Co., Ltd. (Anhui)'s (Wor-Biz) estimated 
weighted-average dumping margin increases from 22.11 percent to 33.67 
percent. These corrections also increase the estimated weighted-average 
dumping margin for the non-examined, separate rate companies from 24.65 
percent to 58.90 percent.
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    \3\ See Memorandum, ``Less-Than-Fair-Value Investigation on Cast 
Iron Soil Pipe Fittings from the People's Republic of China: 
Ministerial Error Allegations in the Final Determination,'' dated 
August 9, 2018.
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    In addition, we are amending our instructions to U.S. Customs and 
Border Protection (CBP) with respect to the cash deposit rates in 
effect during certain periods of this LTFV investigation. Specifically, 
in the Preliminary Determination, we stated that should provisional 
measures in the companion countervailing duty (CVD) investigation 
expire, Commerce will direct CBP to collect cash deposits at a rate 
equal to the estimated weighted-average dumping margins calculated in 
the Preliminary Determination, unadjusted for passed-through domestic 
subsidies or export subsidies determined in the companion CVD 
investigation.\4\ Provisional measures in the companion CVD 
investigation expired on April 18, 2018.\5\ However, the Final 
Determination (and the cash deposit instructions we issued to CBP 
pursuant to that determination) did not properly reflect our intention 
to apply the unadjusted cash deposit rates that should have been in 
effect beginning on this date.\6\ Therefore, we will amend our 
instructions to CBP to apply the unadjusted cash deposit rates 
calculated in the Preliminary Determination for the period of April 18, 
2018, through July 16, 2018 (the date prior to the publication of the 
Final Determination).
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    \4\ See Cast Iron Soil Pipe Fittings from the People's Republic 
of China: Preliminary Affirmative Determination of Sales at Less 
Than Fair Value, Preliminary Affirmative Determination of Critical 
Circumstances, in Part, Postponement of Final Determination and 
Extension of Provisional Measures, 83 FR 7145, 7147 (February 20, 
2018) (Preliminary Determination) and accompanying Preliminary 
Decision Memorandum. See also Section 772(c)(1)(C) of the Tariff Act 
of 1930 (the Act).
    \5\ 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). See also 19 CFR 
351.210(h).
    \6\ See Final Determination at 83 FR 33207 (``Continuation of 
Suspension of Liquidation'').
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    Further, for the period of July 17, 2018, until the date of 
expiration of provisional measures in this LTFV investigation (August 
20, 2018), the correct cash deposit rates shall be equal to the 
estimated weighted-average dumping margins calculated in the Final 
Determination, unadjusted for the passed-through domestic subsidies or 
for export subsidies. See below for further discussion of the 
expiration of provisional measures in this LTFV investigation.
    For the purposes of this amended final determination and order, we 
will instruct CBP to resume collecting cash deposits equal to the 
estimated weighted-average dumping margins listed below, adjusted for 
the export subsidy rates imposed in the companion CVD investigation, 
i.e., by 0.09 percent for Xuanshi and the China-wide entity, 0.23 
percent for Wor-Biz, and 0.16 percent for the separate-rate 
companies.\7\
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    \7\ See Final Determination at 83 FR 33428. See also Cast Iron 
Soil Pipe Fittings from the People's Republic of China: Final 
Affirmative Countervailing Duty Determination, 83 FR 32075 (July 11, 
2018); and Cast Iron Soil Pipe Fittings from the People's Republic 
of China: Countervailing Duty Order, published concurrently with 
this notice.
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Antidumping Duty Order

    On August 22, 2018, in accordance with section 735(b)(1)(A)(i) and 
735(d) of the Act, the ITC notified Commerce of its final determination 
in this investigation, in which it found that imports of cast iron soil 
pipe fittings are materially injuring a U.S. industry. Therefore, in 
accordance with section 735(c)(2) and 736(a) of the Act, we are 
publishing this antidumping duty order. In its determination, the ITC 
found two domestic like products covered by the scope of the 
investigation: drain bodies and all other soil pipe fittings. The ITC 
made a negative determination with respect to drain bodies and an 
affirmative determination with respect to all other soil pipe fittings. 
Because the ITC made different injury determinations for separate 
domestic like products, Commerce will instruct CBP to assess 
antidumping duties on entries of all cast iron soil pipe fittings 
(subject merchandise) other than drain bodies (excluded merchandise).

Drain Bodies

    The ITC found that drain bodies are a separate domestic like 
product. The Final ITC Report describes typical drain bodies as having 
only one side that connects to a pipe or fitting.\8\ Further, drain 
bodies are not classified as either hubless or hub and spigot.\9\ Drain 
bodies may be painted in a different manner than other cast iron soil 
pipe fittings, which are coated in asphaltic material, black paint, or 
epoxy.\10\ Drain bodies often require assembly with attachments (cast 
iron and non-cast iron) such as stainless steel strainers, grates, and 
bolts to be a drain fixture ready for use.\11\ In addition, the purpose 
of a drain body is to collect and carry away liquid or water, including 
wastewater, while the purpose of other cast iron soil pipe fittings is 
to connect pipe and fittings.\12\
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    \8\ See Cast Iron Soil Pipe Fittings from China, Investigation 
Nos. 701-TA-583 and 731-TA-1381 (Final), Publication 4812, August 
2018 (Final ITC Report) at I-14 and I-15.
    \9\ Id.
    \10\ Id. at I-15.
    \11\ Id.
    \12\ Id.
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    Because the ITC made a negative determination of material injury 
with respect to drain bodies, Commerce will direct CBP to terminate the 
suspension of liquidation for entries of drain bodies from China 
entered, or withdrawn from warehouse, and refund any cash deposit with 
respect to these entries.

All Soil Pipe Fittings Other Than Drain Bodies

    Because the ITC determined that imports of all cast iron soil pipe 
fittings other than drain bodies from China are materially injuring a 
U.S. industry, all unliquidated entries of subject merchandise from 
China, entered or withdrawn from warehouse, are subject to the 
assessment of antidumping duties.
    As a result of the ITC's final determination, in accordance with 
section 736(a)(1) of the Act, Commerce will direct CBP to assess, upon 
further instruction by Commerce, antidumping duties equal to the amount 
by which the normal value of the merchandise exceeds the export price 
(or constructed export price) of the merchandise, for all relevant 
entries of soil pipe fittings from China. Antidumping duties will be 
assessed on unliquidated soil pipe fittings from China entered, or 
withdrawn from warehouse, for consumption on or after February 20, 
2018, the date of publication of the Preliminary Determination, but 
will not be assessed on entries occurring after the expiration of the 
provisional measures period until the date of publication of the ITC's 
notice of final determination in the Federal Register, as discussed 
further below.

Suspension of Liquidation

    In accordance with section 735(c)(1)(B) of the Act, Commerce will 
direct CBP to continue to suspend liquidation of subject merchandise 
(i.e., all soil pipe fittings other than drain bodies) from China, 
which were entered, or withdrawn from warehouse, for consumption on or 
after February 20, 2018, the date of publication of the Preliminary 
Determination. We will also instruct CBP to require cash deposits equal 
to the amounts as indicated below. These instructions suspending

[[Page 44572]]

liquidation will remain in effect until further notice.
    Accordingly, effective on the date of publication of the ITC's 
final affirmative injury determination, CBP will require, at the same 
time as importers would normally deposit estimated duties on this 
subject merchandise, a cash deposit equal to the estimated weighted-
average dumping margins listed below.\13\ The ``China-wide'' rate 
applies to all exporters of subject merchandise not specifically listed 
in the table below. For the purpose of determining cash deposit rates, 
the estimated weighted-average dumping margins for imports of subject 
merchandise from China have been adjusted, as appropriate, for export 
subsidies found in the final determination of the companion 
countervailing duty investigation of this merchandise imported from 
China.
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    \13\ See Section 736(a)(3) of the Act.
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Provisional Measures

    Section 733(d) of the Act states that instructions issued pursuant 
to an affirmative preliminary determination may not remain in effect 
for more than four months, except where exporters representing a 
significant proportion of exports of the subject merchandise request 
Commerce to extend that four-month period to no more than six months. 
At the request of exporters that account for a significant proportion 
of soil pipe fittings from China, Commerce extended the four-month 
period to six months in this proceeding.\14\ In the underlying 
investigation, Commerce published the preliminary determination on 
February 20, 2018. Therefore, the extended period, beginning on the 
date of publication of the preliminary determination, ended on August 
20, 2018. Furthermore, section 737(b) of the Act states that definitive 
duties are to begin on the date of publication of the ITC's final 
affirmative injury determination.
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    \14\ See Preliminary Determination.
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    Therefore, in accordance with section 733(d) of the Act and our 
practice,\15\ we will instruct CBP to terminate the suspension of 
liquidation and to liquidate, without regard to antidumping duties, 
unliquidated entries of soil pipe fittings from China entered, or 
withdrawn from warehouse, for consumption on or after August 20, 2018, 
until the date of publication of the ITC's final affirmative injury 
determination in the Federal Register. Suspension of liquidation and 
the collection of cash deposits will resume on the date of publication 
of the ITC's final determination in the Federal Register.
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    \15\ See, e.g., Certain Corrosion-Resistant Steel Products from 
India, Italy, the People's Republic of China, the Republic of Korea 
and Taiwan: Amended Final Affirmative Antidumping Determination for 
India and Taiwan, and Antidumping Duty Orders, 81 FR 48390 (July 25, 
2016).
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Critical Circumstances

    With regard to the ITC's negative critical circumstances 
determination on imports of soil pipe fittings from China discussed 
above, we will instruct CBP to lift suspension and to refund any cash 
deposits made to secure the payment of estimated antidumping duties 
with respect to entries of soil pipe fittings from China, entered or 
withdrawn from warehouse, for consumption on or after November 22, 2017 
(i.e., 90 days prior to the date of publication of the preliminary 
determination), but before February 20, 2018 (i.e., the date of 
publication of the preliminary determination for this investigation).

Estimated Weighted-Average Dumping Margins

    The estimated weighted-average dumping margins are as follows:

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                                                                                     Estimated     Cash deposit
                                                                                     weighted-    rate (adjusted
                   Producer                                 Exporter                  average       for subsidy
                                                                                  dumping margin     offsets)
                                                                                     (percent)       (percent)
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Shanxi Xuanshi Industrial Group Co., Ltd......  Shanxi Xuanshi Industrial Group            84.13           84.04
                                                 Co., Ltd.
Guang Zhou Premier & Pinan Foundry Co., Ltd./   Wor-Biz Trading Co., Ltd.                  33.67           33.44
 Botou Chenyuan Foundry Co., Ltd./Wuhu Best      (Anhui).
 Machines Co., Ltd.
Shijiazhuang Asia Casting Co., Ltd............  Shijiazhuang Asia Casting Co.,             58.90           58.74
                                                 Ltd.
Qinshui Shunshida Casting Co., Ltd./Xinle       Shanxi Zhongrui Tianyue Trading            58.90           58.74
 Xinye Metal Products Co., Ltd.                  Co., Ltd.
Qinshui Shunshida Casting Co., Ltd./Xinle       Dalian Lino F.T.Z. Co., Ltd.....           58.90           58.74
 Rishuo Casting Factory/Shijiazhuang
 Shunjinguangao Trade Co., Ltd./Xinle Tang
 Rong Fa Lan Pan Co., Ltd.
Xinle City Zhile Pipeline Industry Co., Ltd./   Dinggin Hardware (Dalian) Co.,             58.90           58.74
 Qinshui Shunshida Casting Co., Ltd./Foshan      Ltd.
 City Deying Metal Products Co., Ltd.
Xinle Rishuo Casting Factory/Qinshui Shunshida  Dalian Metal I/E Co., Ltd.......           58.90           58.74
 Casting Co., Ltd.
Qinshui County Xinwei Precision Co., Ltd......  Qinshui Shunshida Casting Co.,             58.90           58.74
                                                 Ltd.
Shanxi Guruiwei Casting Co., Ltd..............  Richang Qiaoshan Trade Co., Ltd.           58.90           58.74
Shijiazhuang Jingruisheng Metal Products Co.,   Hebei Metals & Engineering                 58.90           58.74
 Ltd./Qinshui Shunshida Casting Co., Ltd./       Products Trading Co., Ltd.
 Xinle City Zhile Pipe Co., Ltd.
China-Wide Entity.............................  ................................          360.39          360.30
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Notifications to Interested Parties

    This notice constitutes the antidumping duty order with respect to 
soil pipe fittings from China pursuant to section 736(a) of the Act. 
Interested parties can find a list of antidumping duty orders currently 
in effect at http://enforcement.trade.gov/stats/iastats1.html.
    This amended final determination and antidumping duty order are 
published in accordance with sections 735(e) and 736(a) of the Act and 
19 CFR 351.224(e) and 351.211(b).

[[Page 44573]]

    Dated: August 28, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2018-19094 Filed 8-30-18; 8:45 am]
 BILLING CODE 3510-DS-P
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