[Federal Register Volume 79, Number 231 (Tuesday, December 2, 2014)]
[Notices]
[Pages 71385-71387]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-28415]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-933]


Frontseating Service Valves From the People's Republic of China; 
Final Results of Antidumping Duty Administrative Review; 2012-2013

AGENCY: Enforcement and Compliance, International Trade Administration, 
Department of Commerce.
SUMMARY: On May 27, 2014, the Department of Commerce (``the 
Department'') published the preliminary results of the administrative 
review of the antidumping duty on frontseating service valves from the 
People's Republic of China (``PRC'').\1\ The period of review (``POR'') 
is April 1, 2012, through March 31, 2013. The review covers two 
exporters of subject merchandise, Zhejiang DunAn Hetian Metal Co., Ltd. 
(``DunAn'') and Zhejiang Sanhua Co., Ltd. (``Sanhua''). The Department 
continues to find that DunAn did not have reviewable entries during the 
POR. Additionally, we find that Sanhua made no sales in the United 
States at prices below normal value (``NV''). Based on our analysis of 
the comments received, we made changes to our margin calculations for 
Sanhua. The final weighted-average dumping margin for this review is 
listed below in the section entitled ``Final Results of the Review.''
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    \1\ See Frontseating Service Valves From the People's Republic 
of China: Preliminary Results of Antidumping Duty Administrative 
Review; Review; Preliminary Determination of No Shipments; 2012-
2013, 79 FR 30081 (May 27, 2014) (``Preliminary Results'').

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DATES: Effective Date: December 2, 2014.

FOR FURTHER INFORMATION CONTACT: Laurel LaCivita, AD/CVD Operations, 
Office III, Enforcement and Compliance, U.S. Department of Commerce, 
14th Street and Constitution Avenue NW., Washington, DC 20230; 
telephone: (202) 482-4243.

Background

    On May 27, 2014, the Department published the preliminary results 
of the subject administrative review of the order.\2\ At that time, we 
invited interested parties to comment on our preliminary results.
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    \2\ Id.
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    Subsequent to the Preliminary Results, the following events 
occurred. On June 2, 2014, Sanhua provided comments on new factual 
information contained in the Preliminary Results.\3\ On June 25, 2014, 
Sanhua requested a hearing.\4\ On June 26, 2014, Sanhua filed a case 
brief.\5\
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    \3\ See letter from Sanhua, ``Frontseating Service Valves from 
the People's Republic of China; A-570-933; Rebuttal, Clarification 
or Correction of Factual Information by Zhejiang Sanhua Co., Ltd.,'' 
dated June 2, 2014.
    \4\ See letter from Sanhua, ``Frontseating Service Valves from 
the People's Republic of China; A-570-933; Request for a Hearing by 
Zhejiang Sanhua Co., Ltd.,'' dated June 25, 2014.
    \5\ See letter from Sanhua, ``Frontseating Service Valves from 
the People's Republic of China; A-570-933; Case Brief by Zhejiang 
Sanhua Co., Ltd.,'' dated June 26, 2014.
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    On October 14, 2014, we rejected Sanhua's post-preliminary 
submissions referenced above.\6\ On the same date, the Department 
placed additional Bulgarian surrogate value (``SV'') data on the 
record, and set the briefing and hearing schedule for the case.\7\ On 
October 25, 2014, Sanhua filed its case brief.\8\ Sanhua was the only 
party to file a case or rebuttal brief in this segment of the 
proceeding. Sanhua withdrew its hearing request on October 28, 2014.\9\ 
On August 13, 2014, we extended the deadline for completing the final 
results until November 24, 2014, in accordance with section 
751(a)(3)(A) of the Tariff Act of 1930, as amended (``the Act'').\10\
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    \6\ See letter to Sanhua, ``Frontseating Service Valves from the 
People's Republic of China: Rejection of Zhejiang Sanhua Co., Ltd. 
(``Sanhua'')'s Submissions of June 2, 2014, and June 26, 2014,'' 
dated October 14, 2014.
    \7\ See Memorandum to the File, ``2012-2013 Administrative 
Review of the Antidumping Duty Order on Frontseating Service Valves 
from the People's Republic of China: Placing Additional Surrogate 
Value Information on the Record After the Preliminary Results,'' 
dated October 14, 2014.
    \8\ See letter from Sanhua, ``Frontseating Service Valves from 
the People's Republic of China; A-570-933; Case Brief of Zhejiang 
Sanhua Co., Ltd.,'' dated October 25, 2014.
    \9\ See letter from Sanhua, ``Frontseating Service Valves from 
the People's Republic of China; A-570-933; Withdrawal of Hearing 
Request,'' dated October 28, 2014.
    \10\ See Memorandum to Christian Marsh, ``Frontseating Service 
Valves from the People's Republic of China: Extension of Deadline 
for Final Results of Antidumping Duty Administrative Review,'' dated 
August 13, 2014.
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Scope of the Order

    The merchandise covered by this order is frontseating service 
valves, assembled or unassembled, complete or incomplete, and certain 
parts thereof. Frontseating service valves are classified under 
subheading 8481.80.1095, and also have been classified under subheading 
8415.90.80.85, of the

[[Page 71386]]

Harmonized Tariff Schedule of the United States (``HTSUS''). It is 
possible for frontseating service valves to be manufactured out of 
primary materials other than copper and brass, in which case they would 
be classified under HTSUS subheadings 8481.80.3040, 8481.80.3090, or 
8481.80.5090. In addition, if unassembled or incomplete frontseating 
service valves are imported, the various parts or components would be 
classified under HTSUS subheadings 8481.90.1000, 8481.90.3000, or 
8481.90.5000. The HTSUS subheadings are provided for convenience and 
customs purposes.\11\ The written description is dispositive.
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    \11\ A full written description of the scope of the order is 
contained in the memorandum from Christian Marsh, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Paul Piquado, Assistant Secretary for Enforcement and Compliance, 
``Frontseating Service Valves from the People's Republic of China: 
Issues and Decision Memorandum for the Final Results of the 2012-
2013 Administrative Review'' (``Issues and Decision Memorandum''), 
which is hereby adopted by this notice and incorporated herein by 
reference.
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Final Determination of No Reviewable Entries

    As noted in the Preliminary Results, we received a no-shipment 
certification from DunAn.\12\ The company reported that it made no 
shipments of subject merchandise to the United States during the POR. 
U.S. Customs and Border Protection (``CBP'') confirmed that it did not 
identify evidence of shipments from DunAn. Following publication of the 
Preliminary Results, we received no comments from interested parties 
regarding DunAn. As a consequence, and because the record contains no 
evidence to the contrary, we continue to find that DunAn did not make 
reviewable entries during the POR. Accordingly, consistent with the 
Department's refinement to its assessment practice in nonmarket economy 
(``NME'') cases, the Department finds that it is appropriate not to 
rescind the review in these circumstances, but rather to complete the 
review with respect to DunAn and issue appropriate instructions to CBP 
based on the final results of the review.\13\
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    \12\ See Preliminary Results, 79 FR at 30081.
    \13\ See Non-Market Economy Antidumping Proceedings: Assessment 
of Antidumping Duties, 76 FR 65694 (October 24, 2011) (``NME 
Antidumping Proceedings'').
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Analysis of Comments Received

    All issues raised in the single case brief filed in this review are 
addressed in the Issues and Decision Memorandum. A list of the issues 
that parties raised and to which we responded in the Issues and 
Decision Memorandum follows as an appendix to this notice. 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'').\14\ ACCESS is available to registered users at http://access.trade.gov and in the Central Records Unit, room 7046 of the main 
Department of Commerce building. In addition, a complete version of the 
Issues and Decision Memorandum can be accessed directly on the internet 
at http://www.trade.gov/enforcement/. The signed Issues and Decision 
Memorandum and the electronic version of the Issues and Decision 
Memorandum are identical in content.
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    \14\ ``On November 24, 2014, Enforcement and Compliance changed 
the name of Enforcement and Compliance's AD and CVD Centralized 
Electronic Service System (``IA ACCESS'') to AD and CVD Centralized 
Electronic Service System (``ACCESS''). The Web site location was 
changed from http://iaaccess.trade.gov to http://access.trade.gov. 
The Final Rule changing the references to the Regulations can be 
found at 79 FR 69046 (November 20, 2014).''
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Changes Since the Preliminary Results

    Based on an analysis of the comments received from interested 
parties and a review of the record, the Department has made the 
following changes in the margin calculation:
    <bullet> We derived the SVs for all factors of production, with the 
exception of surrogate financial ratios, using Bulgaria as the 
surrogate country.\15\ Specifically, we made the following adjustments:
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    \15\ See Memorandum to the File, ``Antidumping Duty 
Administrative Review of Frontseating Service Valves from the 
People's Republic of China: Factor Valuation for the Final Results 
of Review,'' dated concurrent with this notice.
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    [cir] We based the SVs for direct materials and packing materials 
on Bulgarian import statistics recorded in the Global Trade Atlas 
(``GTA''). We made inflation adjustments, as appropriate;
    [cir] We based the SV for electricity on data derived from the 
National Institute of Statistics (Bulgaria) Electricity Prices covering 
the POR. We valued water using the average water rates for industrial 
consumers reported by the Bulgarian State Energy Regulatory Commission 
for the POR.
    [cir] We based the SV for direct, indirect and packing labor on the 
Chapter 6A, industry-specific ILO data for Bulgaria from 2007, for Sub-
Classification 28, which is described as ``Manufacture of Fabricated 
Metal Products, except Machinery and Equipment. We made adjustments for 
inflation as appropriate.
    [cir] We valued international freight using International freight 
price quotes from the Descartes Web site covering industrial plumbing 
supplies, valves, and valve parts, brass, iron, & copper, N.O.S., and 
valves and valve parts, N.O.S., available at http://rates.descartes.com.
    [cir] We valued brokerage and handling expenses and truck freight 
using information u published in the World Bank's Doing Business 2014, 
Economy Profile: Bulgaria.
    See Comment 1 of the accompanying Issues and Decision Memorandum.
    <bullet> We revised the determination of the value-added tax 
(``VAT'') adjustment as a percentage of entered value (``ENTVALUE''). 
See Comment 5 of the accompanying Issues and Decision Memorandum.

Final Results of the Review

    As a result of this review, we determine that the following 
weighted-average dumping margin exists for the period April 1, 2012, 
through March 31, 2013:

------------------------------------------------------------------------
                                                      Weighted- Average
                      Exporter                       Margin (percentage)
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Zhejiang Sanhua Co., Ltd...........................               0.00%
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Disclosure

    We intend to disclose the calculations performed within five days 
of the date of publication of this notice to parties in this proceeding 
in accordance with 19 CFR 351.224(b).

Assessment Rates

    The Department shall determine, and CBP shall assess, antidumping 
duties on all appropriate entries covered by this review pursuant to 
section 751(a)(2)(C) of the Act and 19 CFR 351.212(b).\16\ The final 
results of this review shall be the basis for the assessment of 
antidumping duties on entries of merchandise covered by the final 
results of this review. The Department intends to issue assessment 
instructions to CBP 15 days after the date of publication of these 
final results of review.
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    \16\ See Antidumping Proceeding: Calculation of the Weighted-
Average Dumping Margin and Assessment Rate in Certain Antidumping 
Duty Proceedings; Final Modification, 77 FR 8103 (February 14, 
2012).
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    We will instruct CBP to assess antidumping duties on all 
appropriate entries covered by this review for each individual 
assessment rate calculated in the final results of this review that is 
above de minimis (i.e., at or above 0.50 percent). Pursuant to 19 CFR

[[Page 71387]]

351.106(c)(2), we will instruct CBP to liquidate without regard to 
antidumping duties any entries for which the assessment rate is de 
minimis (i.e., less than 0.50 percent).
    The Department recently announced a refinement to its assessment 
practice in NME cases. Pursuant to this refinement in practice, for 
entries that were not reported in the U.S. sales databases submitted by 
companies individually examined during this review, the Department will 
instruct CBP to liquidate such entries at the NME-wide rate. In 
addition, if the Department determines that an exporter under review 
had no shipments of subject merchandise, any suspended entries that 
entered under that exporter's case number (i.e., at that exporter's 
rate) will be liquidated at the NME-wide rate. For a full discussion of 
this practice, see NME Antidumping Proceedings.

Cash Deposit Requirements

    Because the antidumping duty order on frontseating service valves 
from the PRC has been revoked,\17\ the Department will not issue cash 
deposit instructions at the conclusion of this administrative review.
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    \17\ See Frontseating Service Valves from the People's Republic 
of China: Final Results of Sunset Review and Revocation of 
Antidumping Duty Order, 79 FR 27573 (May 14, 2014).
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Notification to Importers

    This notice also serves as a final reminder to importers of their 
responsibility under 19 CFR 351.402(f)(2) to file a certificate 
regarding the reimbursement of antidumping duties prior to liquidation 
of the relevant entries during this review period. Failure to comply 
with this requirement could result in the Secretary's presumption that 
reimbursement of the antidumping duties occurred and the subsequent 
assessment of double antidumping duties.

Notification to Interested Parties

    In accordance with 19 CFR 351.305(a)(3), this notice serves as a 
reminder to parties subject to administrative protective order 
(``APO'') of their responsibility concerning the disposition of 
proprietary information disclosed under the APO. Timely written 
notification of the 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.
    These final results of review and notice are published in 
accordance with sections 751(a)(1) and 777(i)(1) of the Act.

    Dated: November 24, 2014.
Paul Piquado,
Assistant Secretary for Enforcement and Compliance.

Appendix

List of Topics Discussed in the Issues and Decision Memorandum

1. Summary
2. Background
3. Scope of the Order
4. Discussion of the Issues
    Comment 1: The Use of SV Data from the Primary Surrogate Country
    Comment 2: The Department's Adjustments to Sanhua's Scrap Offset
    Comment 3: Removal from the Record of Rebuttal Factual 
Information Regarding the Use of Differential Pricing in the 
Preliminary Results
    Comment 4: Use of the Differential Pricing Analysis in the 
Preliminary Results
    Comment 5: Treatment of Value-Added Tax (``VAT'') for U.S. Sales
5. Recommendation

[FR Doc. 2014-28415 Filed 12-1-14; 8:45 am]
BILLING CODE 3510-DS-P