[Federal Register Volume 83, Number 15 (Tuesday, January 23, 2018)]
[Notices]
[Pages 3124-3126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-01145]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-570-065]


Countervailing Duty Investigation of Stainless Steel Flanges From 
the People's Republic of China: Preliminary Affirmative Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that countervailable subsidies are being provided to producers/
exporters of stainless steel flanges from the People's Republic of 
China (China). The period of investigation is January 1, 2016, through 
December 31, 2016. We invite interested parties to comment on this 
preliminary determination.

DATES: Applicable January 23, 2018.

FOR FURTHER INFORMATION CONTACT: Justin Neuman or Jerry Huang, 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) 482-0486 or (202) 482-4047, 
respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
703(b) of the Tariff Act of 1930, as amended (Act). Commerce published 
the notice of initiation of this investigation on September 11, 
2017.\1\ On October 27, 2017, Commerce postponed the preliminary 
determination of this investigation to January 16, 2018.\2\ For a 
complete description of the events that followed the initiation of this 
investigation, see the Preliminary Decision Memorandum.\3\ A list of 
topics discussed in the Preliminary Decision Memorandum is included at 
Appendix II to this notice. The Preliminary 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 Preliminary Decision Memorandum 
can be accessed directly at http://enforcement.trade.gov/frn/. The 
signed and electronic versions of the Preliminary Decision Memorandum 
are identical in content.
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    \1\ See Stainless Steel Flanges from India and the People's 
Republic of China: Initiation of Countervailing Duty Investigations, 
82 FR 42654 (September 11, 2017) (Initiation Notice).
    \2\ See Stainless Steel Flanges from India and the People's 
Republic of China: Postponement of Preliminary Determinations of 
Countervailing Duty Investigations, 82 FR 49786 (October 27, 2017).
    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination of the Countervailing Duty Investigation of Stainless 
Steel Flanges from the People's Republic of China,'' dated 
concurrently with, and hereby adopted by, this notice (Preliminary 
Decision Memorandum).
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Scope of the Investigation

    The products covered by this investigation are stainless steel 
flanges from China. For a complete description of the scope of this 
investigation, see Appendix I.

Methodology

    Commerce is conducting this investigation in accordance with 
section 701 of the Act. For each of the subsidy programs found 
countervailable, Commerce preliminarily determines that there is a 
subsidy, i.e., a financial contribution by an ``authority'' that gives 
rise to a benefit to the recipient, and that the subsidy is 
specific.\4\
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    \4\ See sections 771(5)(B) and (D) of the Act regarding 
financial contribution; section 771(5)(E) of the Act regarding 
benefit; and section 771(5A) of the Act regarding specificity.
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    In making these findings, Commerce relied totally on facts 
available, because neither the GOC nor any of the selected mandatory 
respondent companies responded to the questionnaire. Further,

[[Page 3125]]

because these parties did not act to the best of their ability to 
respond to Commerce's requests for information, Commerce drew an 
adverse inference in selecting from among the facts otherwise 
available.\5\ For further information, see ``Use of Facts Otherwise 
Available and Adverse Inferences'' in the Preliminary Decision 
Memorandum.
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    \5\ See sections 776(a) and (b) of the Act.
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All-Others Rate

    Sections 703(d) and 705(c)(5)(A) of the Act provide that in the 
preliminary 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, Commerce preliminarily assigned 
a rate based entirely on facts available to mandatory respondents 
Bothwell (Jiangyan) Steel Fittings Co., Ltd., Hydro-Fluids Controls 
Limited, Jiangyin Shengda Brite Line Kasugai Flange Co., Ltd, and 
Qingdao I-Flow Co., Ltd. There is no other information on the record 
with which to determine an all-others rate. As a result, in accordance 
with section 705(c)(5)(A)(ii) of the Act, we have established the all-
others rate by applying the countervailable subsidy rate established 
for the mandatory respondents. Consequently, the rate calculated for 
the mandatory respondents is also assigned as the rate for all-other 
producers and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
countervailable subsidy rates exist:

------------------------------------------------------------------------
                                                           Subsidy rate
                         Company                             (percent)
------------------------------------------------------------------------
Bothwell (Jiangyan) Steel Fittings Co., Ltd.............          174.73
Hydro-Fluids Controls Limited...........................          174.73
Jiangyin Shengda Brite Line Kasugai Flange Co., Ltd.....          174.73
Qingdao I-Flow Co., Ltd.................................          174.73
All-Others..............................................          174.73
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Suspension of Liquidation

    In accordance with section 703(d)(1)(B) and (d)(2) of the Act, 
Commerce will direct 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 this 
notice in the Federal Register. Further, pursuant to 19 CFR 351.205(d), 
Commerce will instruct CBP to require a cash deposit equal to the rates 
indicated above.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last verification report is issued in 
this investigation. Rebuttal briefs, limited to issues raised in case 
briefs, may be submitted no later than five days after the deadline 
date for case briefs.\6\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), 
parties who submit case briefs or rebuttal briefs in this investigation 
are encouraged to submit with each argument: (1) A statement of the 
issue; (2) a brief summary of the argument; and (3) a table of 
authorities.
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    \6\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

International Trade Commission Notification

    In accordance with section 703(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its determination. If the 
final determination is affirmative, the ITC will determine before the 
later of 120 days after the date of this preliminary determination or 
45 days after the final determination.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
703(f) and 777(i) of the Act and 19 CFR 351.205(c).

    Dated: January 16, 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 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 these orders 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 investigations if performed in the country of 
manufacture of the stainless steel flanges.
    Merchandise subject to the investigation is typically imported 
under headings 7307.21.1000 and 7307.21.5000 of the Harmonized 
Tariff Schedule of the United

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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 Preliminary Decision 
Memorandum

I. Summary
II. Background
III. Scope Comments
IV. Scope of the Investigation
V. Injury Test
VI. Application of the CVD Law to Imports from China
VII. Use of Facts Otherwise Available and Adverse Inferences
VIII. Calculation of the All-Others Rate
IX. ITC Notification
X. Public Comment
XI. Conclusion

[FR Doc. 2018-01145 Filed 1-22-18; 8:45 am]
 BILLING CODE 3510-DS-P