[Federal Register Volume 83, Number 170 (Friday, August 31, 2018)]
[Notices]
[Pages 44566-44567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19095]


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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: 
Countervailing Duty Order

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

SUMMARY: Based on affirmative final determinations by the Department of 
Commerce (Commerce) and the International Trade Commission (ITC), 
Commerce is issuing a countervailing 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: 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

    On July 11, 2018, Commerce published its final determination in the 
countervailing duty investigation of soil pipe fittings from China.\1\ 
On August 22, 2018, the ITC notified Commerce of its final 
determination, pursuant to section 705(d) of the Act, that an industry 
in the United States is materially injured within the meaning of 
section 705(b)(1)(A)(i) of the Act, by reason of subsidized imports of 
soil pipe fittings from China.\2\
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    \1\ See Cast Iron Soil Pipe Fittings from the People's Republic 
of China: Final Affirmative Countervailing Duty Determination, 83 FR 
32075 (July 11, 2018) (Final Determination).
    \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, dated August 22, 
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 this 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.

Countervailing Duty Order

    On August 22, 2018, in accordance with section 705(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 705(c)(2) of the Act, we are publishing this 
countervailing 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

[[Page 44567]]

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 U.S. Customs and Border 
Protection (CBP) to assess countervailing 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.\3\ Further, drain 
bodies are not classified as either hubless or hub and spigot.\4\ 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.\5\ 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.\6\ 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.\7\
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    \3\ 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.
    \4\ Id. at I-15.
    \5\ Id.
    \6\ Id.
    \7\ 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 deposits 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 countervailing duties.
    As a result of the ITC's final determination, in accordance with 
section 706(a) of the Act, Commerce will direct CBP to assess, upon 
further instruction by Commerce, countervailing duties on unliquidated 
entries of subject merchandise from China entered, or withdrawn from 
warehouse, for consumption on or after December 19, 2017, the date on 
which Commerce published its preliminary countervailing duty 
determination in the Federal Register,\8\ and before April 18, 2018, 
the effective date on which Commerce instructed CBP to discontinue the 
suspension of liquidation in accordance with section 703(d) of the Act. 
Section 703(d) of the Act states that the suspension of liquidation 
pursuant to a preliminary determination may not remain in effect for 
more than four months. Therefore, entries of subject merchandise from 
China made on or after April 18, 2018, and prior to the date of 
publication of the ITC's final determination in the Federal Register 
are not liable for the assessment of countervailing duties due to 
Commerce's discontinuation of the suspension of liquidation.
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    \8\ 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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Suspension of Liquidation

    In accordance with section 706 of the Act, Commerce will direct CBP 
to reinstitute the suspension of liquidation of subject merchandise 
(i.e., all soil pipe fittings other than drain bodies) from China, 
effective the date of publication of the ITC's notice of final 
determination in the Federal Register, and to assess, upon further 
instruction by Commerce pursuant to section 706(a)(1) of the Act, 
countervailing duties for each entry of the subject merchandise in an 
amount based on the net countervailable subsidy rates for the subject 
merchandise. On or after the date of publication of the ITC's final 
injury determination in the Federal Register, we will instruct CBP to 
require, at the same time as importers would normally deposit estimated 
duties on this merchandise, cash deposits for each entry of subject 
merchandise equal to the rates noted below. These instructions 
suspending liquidation will remain in effect until further notice. The 
all others rate applies to all producers or exporters not specifically 
listed, as appropriate.

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                                                                Subsidy
                           Company                               rate
                                                               (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
All-Others..................................................       23.28
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Notifications to Interested Parties

    This notice constitutes the countervailing duty order with respect 
to soil pipe fittings from China pursuant to section 706(a) of the Act. 
Interested parties may visit https://enforcement.trade.gov/stats/iastats1.html or contact Commerce's Central Records Unit, Room B8024 of 
the main Commerce Building, for copies of an updated list of 
countervailing duty orders currently in effect.
    This order is issued and published in accordance with section 
706(a) of the Act and 19 CFR 351.211(b).

    Dated: August 28, 2018.
Christian Marsh,
Deputy Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2018-19095 Filed 8-30-18; 8:45 am]
 BILLING CODE 3510-DS-P