40556 Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices 

1See Antidumping Duty Order and Amendment 

to the Final Determination of Sales at Less Than 

Fair Value; Certain Carbon Steel Butt-Weld Pipe 

Fittings from the People’s Republic of China, 57 FR 

29702 (July 6, 1992) (Order). 

2See Certain Carbon Steel Butt-Weld Pipe Fittings 

from the People’s Republic of China; Affirmative 

Final Determination of Circumvention of 

Antidumping Duty Order, 59 FR 15155 (March 31, 

1994) (Final Determination of Circumvention 1994). 

3 Id., at 15158, 15159. 

4See Letter from the petitioners to the Secretary 

of Commerce, ‘‘Carbon Steel Butt-Weld Pipe 

Fittings from the People’s Republic of China; 

Request for Circumvention Ruling to Section 781(b) 

of the Tariff Act of 1930,’’ dated May 22, 2017 (the 

petitioners’ Request). 

5See the petitioners’ Request at 26–30. 

6 Id., at 28–9. 

7See Letter from Pantech to the Secretary of 

Commerce, ‘‘Carbon Steel Butt-Weld Pipe Fittings 

from the People’s Republic of China: Response to 

Request for Anti-Circumvention Inquiry,’’ dated 

May 26, 2017). 

8See Letter from Solidbend, ‘‘Carbon Steel ButtWeld Pipe Fittings from the People’s Republic of 

China Anti-Circumvention Inquiry (Third-Country 

Assembly Malaysia),’’ dated June 14, 2017. 

9See Letter from the petitioners to the Secretary 

of Commerce, ‘‘Carbon Steel Butt-Weld Pipe 

Fittings from the People’s Republic of China; AntiCircumvention Inquiry (Third Country Assembly, 

Malaysia); Petitioners’ Response to Objections of 

Solidbend Fittings & Flanges,’’ dated June 22, 2017 

(the petitioners’’ Objection Comments). 

10See Letter from Arah Dagang to the Secretary 

of Commerce, ‘‘Carbon Steel Butt-Weld Pipe 

Fittings from China: Response to Request for AntiCircumvention Inquiry,’’ dated July 21, 2017. 

11See Letter from Paul Walker, Program Manager, 

to Tube Forgings of America, Mills Iron Works, Inc., 

and Hackney Ladish, Inc, ‘‘Request for Producers 

and Exporters from Malaysia: Carbon Steel ButtWeld Pipe Fittings from the People’s Republic of 

China,’’ dated August 8, 2017; and Letter from the 

petitioners to Secretary of Commerce, ‘‘Carbon Steel 

Butt-Weld Pipe Fittings from The People’s Republic 

of China; A–570–814; Anticircumvention Inquiry 

(Third Country Assembly, Malaysia); Petitioners’ 

shall remain in effect until further 

notice. 

Administrative Protective Order 

This notice also serves as a reminder 

to parties subject to administrative 

protective orders (APO) of their 

responsibility concerning the return or 

destruction of proprietary information 

disclosed under APO in accordance 

with 19 CFR 351.305(a)(3), which 

continues to govern business 

proprietary information in this segment 

of the proceeding. Timely written 

notification of the 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 

sanctionable violation. 

Disclosure 

We will disclose the calculations 

performed for these amended final 

results to interested parties within five 

business days of the date of the 

publication of this notice in accordance 

with 19 CFR 351.224(b). 

We are issuing and publishing these 

results in accordance with sections 

751(h) and 777(i)(1) of the Act, and 19 

CFR 351.224(e). 

Dated: August 21, 2017. 

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. 

[FR Doc. 2017–18045 Filed 8–24–17; 8:45 am] 

BILLING CODE 3510–DS–P 

DEPARTMENT OF COMMERCE 

International Trade Administration 

[A–570–814] 

Carbon Steel Butt-Weld Pipe Fittings 

From the People’s Republic of China: 

Initiation of Anti-Circumvention Inquiry 

on the Antidumping Duty Order 

AGENCY: Enforcement and Compliance, 

International Trade Administration, 

Department of Commerce. 

SUMMARY: In response to requests from 

Tube Forgings of America, Inc. (TFA), 

Mills Iron Works, Inc. (Mills), and 

Hackney Ladish, Inc. (Hackney), 

(collectively, the petitioners), the U.S. 

Department of Commerce (the 

Department) is initiating an anticircumvention inquiry. In this inquiry, 

the Department will determine whether 

certain imports of carbon steel butt-weld 

pipe fittings (butt-weld pipe fittings) 

into the United States, exported from 

Malaysia, which were completed in 

Malaysia using finished or unfinished 

butt-weld pipe fittings sourced from the 

People’s Republic of China (PRC), are 

circumventing the antidumping duty 

order on butt-weld pipe fittings from the 

PRC. 

DATES: Applicable August 25, 2017. 

FOR FURTHER INFORMATION CONTACT: Julia 

Hancock at (202) 482–1394, AD/CVD 

Operations, Enforcement and 

Compliance, U.S. Department of 

Commerce, 1401 Constitution Avenue 

NW., Washington, DC 20230. 

SUPPLEMENTARY INFORMATION: On July 6, 

1992, the Department issued the Order 

on imports of butt-weld pipe fittings 

from the PRC.1 Additionally, on March 

31, 1994, the Department issued the 

affirmative final determination finding 

that imports into the United States of 

pipe fittings that were finished in 

Thailand from unfinished pipe fittings 

produced in the PRC constituted 

circumvention of the Order within the 

meaning of section 781(b) of the Tariff 

Act of 1930, as amended (the Act).2 The 

Department applied this finding of 

circumvention to all imports of buttweld pipe fittings from Thailand, 

regardless of manufacturer/producer, 

unless accompanied by a certification 

stating that such pipe fittings have not 

been produced from unfinished PRC 

pipe fittings.3

On May 22, 2017, the petitioners, 

pursuant to section 781(b) of the Act 

and 19 CFR 351.225(h), submitted a 

properly filed request for the 

Department to initiate an anticircumvention inquiry to determine 

whether certain imports of butt-weld 

pipe fittings which were completed in 

Malaysia using finished or unfinished 

butt-weld pipe fittings sourced from the 

PRC are circumventing the Order.4

Specifically, the petitioners allege that 

certain imports of butt-weld pipe 

fittings sourced from unfinished or 

finished butt-weld pipe fittings from the 

PRC have undergone minor finishing 

processes, or were simply marked with 

‘‘Malaysia’’ as the country of origin, in 

Malaysia, before export to the United 

States. The petitioners request that the 

Department treat all butt-weld pipe 

fittings imported from Malaysia, 

regardless of producer or exporter, as 

subject merchandise under the scope of 

the Order and impose cash deposit 

requirements for estimated antidumping 

duties on all imports of butt-weld pipe 

fittings from Malaysia.5 In the 

alternative to an anti-circumvention 

inquiry, the petitioners requested that 

we initiate and issue a preliminary 

scope ruling that certain imports of buttweld pipe fittings which were 

completed in Malaysia using finished or 

unfinished butt-weld pipe fittings 

sourced from the PRC are covered by the 

scope of the Order, pursuant to 19 CFR 

351.225(k).6

On May 26, 2017, we received 

comments objecting to the allegations 

made by the petitioners from Pantech 

Steel Industries SDN Ph.D. (Pantech).7

Also, on June 14, 2017, we received 

comments objecting to the allegations 

made by the petitioners from Solidbend 

Fittings & Flanges Sdn. Bhd. 

(Solidbend).8 On June 22, 2017, we 

received rebuttal comments from the 

petitioners regarding Solidbend’s 

comments.9 Additionally, on July 21, 

2017, we received comments objecting 

to the allegations made by the 

petitioners from Arah Dagang Sdn Bhd 

(Arah Dagang).10

On August 8, 2017, we requested a list 

of all known producers and exporters of 

butt-weld pipe fittings in Malaysia from 

the petitioners, and on August 10, 2017, 

the petitioners submitted their 

response.11 Additionally, on August 14, 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices 40557 

Response to the Department’s August 8, 2017 

Letter,’’ dated August 10, 2017. 12See Letter from Solidbend, ‘‘Carbon Steel ButtWeld Pipe Fittings from the People’s Republic of 

China Anti-Circumvention Inquiry (Third-Country 

Assembly Malaysia),’’ dated August 14, 2017; and 

Letter from Pantech to the Secretary of Commerce, 

‘‘Carbon Steel Butt-Weld Pipe Fittings from the 

People’s Republic of China: Response to Petitioners’ 

August 10, 2017, Letter Identify,’’ dated August 16, 

2017. 

13After consideration of the comments filed by 

interested parties in opposition to the initiation of 

the petitioners’ circumvention allegation, the 

Department will address the arguments and factual 

information presented in the comments during the 

course of this anti-circumvention inquiry. 

14See Order. 

15As such, the remainder of this notice will focus 

on the statutory criteria for the initiation of an anticircumvention inquiry, as defined in section 781(b) 

of the Act. See also the Analysis section of this 

notice, below, for the full discussion of the 

Department’s determination to initiate an anticircumvention inquiry pursuant to section 781(b) of 

the Act and 19 CFR 351.225(h). 16See the petitioners’ Request at 9–10. 

17 Id., at 9. 

18 Id., at 10; Order. 

19 Id., at 10 and Attachments 1 and 2. 

20 Id., at 11, 12, and 15 and Attachments 1 and 

2. 

21 Id. 

2017, and August 18, 2017, we received 

additional comments from Solidbend 

and Pantech, respectively, opposing the 

initiation of an anti-circumvention 

inquiry based on the petitioners’ 

circumvention allegation.12 13

Scope of the Order 

The merchandise covered by the order 

consists of certain carbon steel buttweld pipe fittings, having an inside 

diameter of less than 14 inches, 

imported in either finished or 

unfinished form. These formed or forged 

pipe fittings are used to join sections in 

piping systems where conditions 

require permanent, welded connections, 

as distinguished from fittings based on 

other fastening methods (e.g., threaded, 

grooved, or bolted fittings).14 Carbon 

steel butt-weld pipe fittings are 

currently classified under subheading 

7307.93.30 of the HTSUS. The HTSUS 

subheading is provided for convenience 

and customs purposes. The written 

product description remains dispositive. 

Determination To Not Initiate a Scope 

Proceeding 

As noted above, the petitioners have 

requested the Department initiate either 

a scope proceeding to clarify whether 

the scope of the Order on butt-weld pipe 

fittings includes the merchandise in 

question pursuant to 19 CFR 351.225(k) 

or an anti-circumvention proceeding 

pursuant to section 781(b) of the Act 

and 19 CFR 351.225(h). In the instant 

case, although the petitioners have 

provided substantial record evidence 

which may support the initiation of 

either type of inquiry, the Department 

has concluded that the issues raised by 

the parties are better addressed in the 

context of an anti-circumvention 

proceeding pursuant to section 781(b) of 

the Act and 19 CFR 351.225(h).15 As a 

result of this determination, the 

Department will not initiate a scope 

proceeding pursuant to 19 CFR 

351.225(k) at this time. 

Merchandise Subject to the AntiCircumvention Inquiry 

This anti-circumvention inquiry 

covers imports of butt-weld pipe fittings 

sourced from unfinished or finished 

butt-weld pipe fittings from the PRC 

that have undergone minor finishing 

processes, or were simply marked with 

‘‘Malaysia’’ as the country of origin, in 

Malaysia, before export to the United 

States. 

Initiation of Anti-Circumvention 

Inquiry 

Section 781(b)(1) of the Act provides 

that the Department may find 

circumvention of an antidumping or 

countervailing duty order when 

merchandise of the same class or kind 

subject to the order is completed or 

assembled in a foreign country other 

than the country to which the order 

applies. In conducting an anticircumvention inquiry, under section 

781(b)(1) of the Act, the Department will 

rely on the following criteria: (A) The 

merchandise imported into the United 

States is of the same class or kind as any 

merchandise produced in a foreign 

country that is the subject of an 

antidumping or countervailing duty 

order or finding; (B) before importation 

into the United States, such imported 

merchandise is completed or assembled 

in another foreign country from 

merchandise which is subject to the 

order or merchandise which is 

produced in the foreign country that is 

subject to the order; (C) the process of 

assembly or completion in the foreign 

country referred to in section (B) is 

minor or insignificant; (D) the value of 

the merchandise produced in the 

foreign country to which the 

antidumping or countervailing duty 

order applies is a significant portion of 

the total value of the merchandise 

exported to the United States; and (E) 

the administering authority determines 

that action is appropriate to prevent 

evasion of such order or finding. As 

discussed below, the petitioners 

provided evidence with respect to these 

criteria. 

A. Merchandise of the Same Class or 

Kind 

The petitioners state that the buttweld pipe fittings exported to the 

United States from Malaysia are the 

same class or kind as the butt-weld pipe 

fittings covered by the Order.16 The 

petitioners assert that merchandise 

subject to the Order is comprised of 

butt-weld pipe fittings ‘‘{i}mported in 

either finished or unfinished form.’’ 17

According to the petitioners, the 

language of the scope establishes that, 

once the fitting has been formed, either 

in finished or unfinished form, 

regardless of any finishing process 

occurring in Malaysia, such 

merchandise is subject to the Order.18

Additionally, the petitioners also 

provided affidavits, as well as an email 

from a Malaysian manufacturer, Globefit 

Manufacturing (Globefit), indicating that 

Malaysian exporters and producers are 

exporting merchandise identical to that 

which is subject to the Order.19 Since 

the merchandise being imported into 

the United States from Malaysia is 

physically identical to the subject 

merchandise from the PRC, pursuant to 

section 781(b)(1)(A) of the Act, the 

petitioners state that the butt-weld pipe 

fittings are of the same class or kind of 

merchandise as the butt-weld pipe 

fittings subject to the Order. 

B. Completion of Merchandise in a 

Foreign Country 

Section 781(b)(1)(B)(ii) of the Act 

requires the Department to determine 

whether, ‘‘before importation into the 

United States, such imported 

merchandise is completed or assembled 

in another foreign country from 

merchandise which is produced in the 

foreign country with respect to which 

such order or finding applies.’’ The 

petitioners presented evidence 

demonstrating how butt-weld pipe 

fittings are completed in Malaysia 

through finishing or simply marking 

with ‘‘Malaysia’’ as the country-oforigin, from finished or unfinished buttweld pipe fittings manufactured and 

imported from the PRC.20 Additionally, 

the petitioners provided evidence that 

there is very little production of buttweld pipe fittings in Malaysia and that 

most Malaysian producers have 

converted their manufacturing 

operations to trading warehouses 

focusing on exports to the United States 

by sourcing butt-weld pipe fittings from 

the PRC, Taiwan, and South Korea.21

The petitioners submitted evidence that 

the capacity to produce butt-weld pipe 

fittings significantly decreased and, 

thus, the few remaining Malaysian 

manufacturers must use imported 

finished or unfinished butt-weld pipe 


sradovich on DSK3GMQ082PROD with NOTICES
40558 Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices 

22 Id. 

23 Id. 

24 Id., at 17. 

25 Id. 

26 Id., at 17 and Attachment 2. 

27 Id., at 18 and Attachment 3. 

28 Id. 29 Id. 30 Id., at 19 (citing to Carbon Steel Butt-Weld Pipe 

Fittings from Brazil, China, Japan, Taiwan, and 

Thailand, Inv. Nos. 731–TA–308–310 and 520–521, 

USITC Pub. 4628 (August 2016) (Fourth Sunset 

Review) at I–3). 31 Id. 32 Id., at 19. 33 Id. 34 Id., at 16 (citing to Fourth Sunset Review at I– 

3 and I–6). 

35 Id., at 19 and Attachment 2. 36 Id. at 20. 37 Id., at 20 and Attachment 2. 38 Id. 39 Id., at 21 and Attachment 3. 40 Id. 41 Id. 

fittings from the PRC, which then 

undergo only minor finishing or are 

simply stamped with ‘‘Malaysia’’ as the 

country-of-origin.22 As support, the 

petitioners provided an affidavit and 

email documenting that a Malaysian 

manufacturer, Globefit, had 

arrangements to purchase unfinished 

fittings with a PRC butt-weld pipe 

fitting manufacturer and finish the 

fittings, which would be stamped with 

‘‘Malaysia’’ as the country-of-origin 

along with a certificate, for export to the 

United States with the purpose of 

evading the Order.23

C. Minor or Insignificant Process 

Under section 781(b)(2) of the Act, the 

Department is required to consider five 

factors to determine whether the process 

of assembly or completion is minor or 

insignificant. The petitioners allege that 

the production of butt-weld pipe fittings 

in the PRC, which subsequently 

undergoes only minor finishing 

processes, or are simply marked with 

‘‘Malaysia’’ as the country-of-origin, 

comprises most the value associated 

with the merchandise imported from 

Malaysia into the United States, and 

that the processing occurring in 

Malaysia adds relatively little to the 

overall value of the finished butt-weld 

pipe fittings.24

(1) Level of Investment 

The petitioners do not have access to 

the actual level of investment for 

manufacturing butt-weld pipe fittings in 

Malaysia.25 Accordingly, the petitioners 

provided an affidavit indicating that 

Malaysian manufacturers of butt-weld 

pipe fittings have switched their 

operations from manufacturing to 

import/export trading and, thus, the 

level of investment to manufacture buttweld pipe fittings in Malaysia declined 

and is minimal.26 In support of their 

argument that the level of investment in 

Malaysia is minimal, the petitioners 

provided an affidavit from TFA 

asserting that the cost in equipment to 

cut, heat, and form seamless pipe into 

rough fittings is substantially higher 

than the cost in equipment necessary to 

only perform the finishing steps for the 

finished butt-weld pipe fittings, which 

comprises approximately less than 

twenty percent of the total cost.27

Moreover, the petitioners submitted 

evidence that the level of investment to 

merely stamp the butt-weld pipe fittings 

with ‘‘Malaysia’’ as the country-of-origin 

accounts for relatively little of the total 

cost of equipment needed to complete 

the full integrated production of a 

finished butt-weld pipe fitting.28 While 

the investment costs of a U.S. producer 

are not identical to those of a PRC or 

Malaysian producer, the petitioners 

argue, based on their own experience, 

that the investment costs of equipment 

for each production step would be the 

same relative to the total equipment cost 

regardless of the location of the 

producer.29

(2) Level of Research and Development 

The petitioners assert that butt-weld 

pipe fittings are a technologically 

mature product and that there has been 

no significant advancement in the 

product or its production for decades.30

As such, the level of research and 

development to produce butt-weld pipe 

fittings is minimal to non-existent.31

(3) Nature of Production Process in 

Malaysia 

According to the petitioners, the 

additional processing undertaken by 

Malaysian producers of butt-weld pipe 

fittings is minimal.32 Regardless of 

whether butt-weld pipe fittings exported 

from the PRC to Malaysia are in finished 

or unfinished forms, the production 

steps performed are minor, according to 

the petitioners.33 Conversely, the 

manufacturing process to produce buttweld pipe fittings in the PRC from the 

beginning of the production process is 

much more complex. Specifically, the 

manufacturing process for butt-weld 

pipe fittings consists of three production 

phases: (1) The seamless carbon steel 

pipe is transformed into a rough shape 

of an elbow, tee, etc., through a cold- or 

hot-forming process that produces the 

rough pipe fitting; (2) then, the rough 

pipe fitting goes through a reforming or 

sizing process to ensure that the fitting 

will match the pipe to which it is to be 

welded; and (3) the final stage that 

produces the finished butt-weld pipe 

fitting includes shot blasting or 

cleaning, machine beveling of the 

fitting, boring and tapering its interior, 

grinding, die stamping, and painting.34

In contrast, the processing of unfinished 

forms into a finished butt-weld pipe 

fitting, which is performed in Malaysia, 

only involves the third-step of the 

production process for butt-weld pipe 

fittings.35 As a consequence, because the 

production process is so minimal in 

Malaysia and unfinished fittings are of 

the same class or kind of merchandise 

as the finished butt-weld pipe fittings, 

the petitioners maintain that the 

finished butt-weld pipe fittings 

produced in Malaysia from finished or 

unfinished butt-weld pipe fittings 

exported from the PRC are subject to the 

Order. 

(4) Extent of Production in Malaysia 

The petitioners argue that production 

facilities in Malaysia are more limited 

compared to facilities in the PRC.36 This 

is because Malaysian manufacturers 

primarily have shifted their business 

model from manufacturing to trading 

and, thus, the production capacity in 

Malaysia is significantly smaller than it 

may have been in prior years, as 

identified in the petitioners’ submitted 

affidavit.37 Moreover, the petitioners 

cite information indicating that the 

production facilities in Malaysia for 

butt-weld pipe fittings are limited to 

finishing operations, and, in some 

instances, limited to only stamping buttweld pipe fittings with a ‘‘Malaysia’’ 

country-of-origin mark.38

(5) Value of Processing in Malaysia 

The petitioners assert that the 

production of butt-weld pipe fittings in 

the PRC accounts for a large percentage 

of the total value of the finished buttweld pipe fittings that are produced in 

Malaysia.39 Using information provided 

in an affidavit from TFA, the petitioners 

posit that the price of unfinished or 

finished butt-weld pipe fittings is 

between approximately 80 percent to 

100 percent of the price of finished buttweld pipe fittings.40 Thus, the valueadded in Malaysia by either just 

finishing the unfinished butt-weld pipe 

fittings or merely adding the ‘‘Malaysia’’ 

country-of-origin marking ranges from 

an estimated 15 percent to a 

considerably lesser value added. Thus, 

the petitioners maintain that the 

completion activities in Malaysia add 

very little to the finished butt-weld pipe 

fittings exported to the United States 

from butt-weld pipe fittings sourced 

from the PRC.41 This conclusion is 

comparable to the little amount of value 

added by finishing operations 


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Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices 40559 

42 Id. 

43 Id., at 22. 

44 Id. at 23. 

45 Id., at 23 and Attachment 4. The petitioners 

stated that all imports of butt-weld pipe fittings 

from the PRC into Malaysia, the PRC into the 

United States, and Malaysia into the United States 

declined in 2016, but this was due to the substantial 

decline in oil prices globally and this decline is not 

an indication that circumvention of the Order 

through Malaysia ceased, which is further 

supported by the Fourth Sunset Review. Id., at 24– 

25 at footnote 59; Carbon Steel Butt-Weld Pipe 

Fittings from Brazil, China, Japan, Taiwan, and 

Thailand, Inv. Nos. 731–TA–308–310 and 520–21, 

USITC Pub. 4628 (August 2016) (Fourth Sunset 

Review) at 6 and I–6. 46See the petitioners’ Request at 24–25 and 

Attachment 4. 47 Id. 48 Id., at 25–6 and Attachment 4. 49 Id. at 9–10. 

50 Id., at 21–2 and Attachment 3. 

51See discussion of these five factors above. 

52See the petitioners’ Request at 10–23 and 

Attachments 1, 2, and 3. 

performed in Thailand on butt-weld 

pipe fittings sourced from the PRC in 

the Final Determination of 

Circumvention 1994.42

D. Value of Merchandise Produced in 

the PRC 

The petitioners argue that the 

evidence, as noted above, in their anticircumvention request clearly supports 

their position that the value of 

unfinished and finished butt-weld pipe 

fittings produced in the PRC, and then 

finished or marked with a Malaysian 

country-origin mark, represents a 

significant portion of the total value of 

the merchandise exported to the United 

States, as measured by a percentage of 

the total cost of manufacture.43

E. Additional Factors To Consider in 

Determining Whether Inquiry in 

Warranted 

Section 781(b)(3) of the Act directs 

the Department to consider additional 

factors in determining whether to 

include merchandise assembled or 

completed in a foreign country within 

the scope of the Order, such as ‘‘(A) the 

pattern of trade, including sourcing 

patterns, (B) whether the manufacturer 

or exporter of the merchandise . . . is 

affiliated with the person who uses the 

merchandise . . . to assemble or 

complete in the foreign country the 

merchandise that is subsequently 

imported in the United States, and (C) 

whether imports into the foreign 

country of the merchandise . . . have 

increased after initiation of the 

investigation which resulted in the 

issuance of such order or finding.’’ 

(1) Pattern of Trade 

The petitioners state that the record 

evidence demonstrates that, since the 

imposition of the Order, a pattern of 

trade illustrates circumvention between 

the levels of imports for butt-weld pipe 

fittings between the PRC, Malaysia, and 

the United States.44 Publicly-available 

import data show that PRC-origin 

imports of butt-weld pipe fittings into 

Malaysia increased significantly in 

recent years, and a steady increase in 

exports from Malaysia to the United 

States since the imposition of the 

Order.45 Also, between 2010 and 2015, 

publicly-available import data show a 

marked increase of PRC-origin butt-weld 

pipe fittings into Malaysia coincides 

with a decline in volume of exports 

from the PRC to the United States.46

Additionally, the petitioners submit that 

the record evidence shows that, while 

butt-weld pipe fittings exported from 

the PRC to the United States declined 

between 2010 and 2015, butt-weld pipe 

fittings exported from Malaysia to the 

United States increased steadily at the 

same time.47 No other factual 

information on the record contradicts 

this claim. 

(2) Affiliation 

The petitioners provided no 

information regarding the affiliation 

between PRC producers of unfinished 

and finished butt-weld pipe fittings, and 

Malaysian producers of butt-weld pipe 

fittings that undergo only minor 

finishing processes, or are simply 

marked with ‘‘Malaysia’’ as the countryof-origin. 

(3) Subsequent Import Volume 

The petitioners presented evidence 

indicating that shipments of butt-weld 

pipe fittings from the PRC to Malaysia 

steadily increased since imposition of 

the Order, whereas shipments of buttweld pipe fittings from the PRC to the 

United States steadily declined.48 No 

other factual information contradicts 

this claim. 

Analysis of the Allegation 

Based on our analysis of the 

petitioners’ anti-circumvention inquiry 

allegation, the Department determines 

that the petitioners have satisfied the 

criteria under section 781(b)(1) of the 

Act to warrant the initiation of an anticircumvention inquiry of the Order on 

butt-weld pipe fittings from the PRC. 

With regard to whether the 

merchandise from Malaysia is of the 

same class or kind as the merchandise 

produced in the PRC, the petitioners 

presented information to the 

Department indicating that, pursuant to 

section 781(b)(1)(A) of the Act, the 

merchandise being produced in and/or 

exported from Malaysia may be of the 

same class or kind as butt-weld pipe 

fittings produced in the PRC, which is 

subject to the Order.49 Consequently, 

the Department finds that the 

petitioners provided sufficient 

information in their request regarding 

the class or kind of merchandise to 

support the initiation of this anticircumvention inquiry. 

With regard to completion or 

assembly of merchandise in a foreign 

country, pursuant to section 781(b)(1)(B) 

of the Act, the petitioners also presented 

information to the Department 

indicating that the butt-weld pipe 

fittings exported from Malaysia to the 

United States are produced in Malaysia 

using butt-weld pipe fittings from the 

PRC, which account for a significant 

portion of the total costs related to the 

production of butt-weld pipe fittings.50

We find that the information presented 

by the petitioners regarding this 

criterion supports their request to 

initiate this anti-circumvention inquiry. 

The Department finds that the 

petitioners sufficiently addressed the 

factors described in section 781(b)(1)(C) 

and 781(b)(2) of the Act regarding 

whether the assembly or completion of 

butt-weld pipe fittings in Malaysia is 

minor or insignificant. In particular, the 

petitioners’ submission asserts that: (1) 

The level of investment of butt-weld 

pipe fittings is minimal in Malaysia; (2) 

research and development is not taking 

place in Malaysia; (3) the production 

process involves only finishing or 

simply stamping with a Malaysian 

country-of-origin mark on butt-weld 

pipe fittings from a country subject to 

the Order; (4) the production facilities 

in Malaysia are more limited compared 

to facilities in the PRC; and (5) the value 

of the processing performed in Malaysia 

is minimal, as the production of buttweld pipe fittings in the PRC accounts 

for approximately 80 percent to 100 

percent of the value of finished buttweld pipe fittings.51

With respect to the value of the 

merchandise produced in the PRC, 

pursuant to section 78l(b)(l)(D) of the 

Act, the petitioners relied on one of 

their member’s information and 

arguments in the ‘‘minor or insignificant 

process’’ portion of their anticircumvention allegation to indicate 

that the value of the unfinished or 

finished butt-weld pipe fittings, 

produced in the PRC, may be significant 

relative to the total value of the finished 

butt-weld pipe fittings exported from 

Malaysia to the United States.52 We find 

that this information adequately meets 

the requirements of this factor, as 

discussed above, for the purposes of 


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40560 Federal Register / Vol. 82, No. 164 / Friday, August 25, 2017 / Notices 

53See the petitioners’ Request at 23–5 and 

Attachment 4. 

1See Crystalline Silicon Photovoltaic Cells, 

Whether or Not Assembled Into Modules, from the 

People’s Republic of China: Final Results of 

Antidumping Duty Administrative Review and 

Final Determination of No Shipments; 2014–2015, 

82 FR 29033 (June 27, 2017) (Final Results) and 

accompanying Issues and Decision Memorandum 

(IDM). 

2See Department Letter, re: Antidumping Duty 

Administrative Review of Crystalline Silicon 

Photovoltaic Cells, Whether or Not Assembled Into 

Modules, from the People’s Republic of China: 

Ministerial Error Comments,’’ dated June 29, 2017. 

3The Department treated the following six 

companies as a single entity: Changzhou Trina 

Solar Energy Co., Ltd./Trina Solar (Changzhou) 

initiating this anticircumvention 

inquiry. 

With respect to the additional factors 

listed under section 781(b)(3) of the Act, 

we find that the petitioners presented 

evidence indicating that shipments of 

butt-weld pipe fittings from Malaysia to 

the United States increased since the 

imposition of the Order and that 

shipments of butt-weld pipe fittings 

from the PRC to Malaysia also increased 

since the Order took effect, further 

supporting initiation of this anticircumvention inquiry.53

Accordingly, we are initiating a 

formal anti-circumvention inquiry 

concerning the Order on butt-weld pipe 

fittings from the PRC, pursuant to 

section 781(b) of the Act. 

In connection with this anticircumvention inquiry, in order to 

determine: (1) The extent to which PRCsourced unfinished or finished buttweld pipe fittings is further processed 

into butt-weld pipe fittings in Malaysia 

before shipment to the United States; (2) 

the extent to which a country-wide 

finding applicable to all exports might 

be warranted, as alleged by the 

petitioners; and (3) whether the process 

of turning PRC-sourced unfinished or 

finished butt-weld pipe fittings into 

finished butt-weld pipe fittings 

processed in Malaysia is minor or 

insignificant, the Department will issue 

questionnaires to Malaysian producers 

and exporters of butt-weld pipe fittings 

to the United States. The Department 

will issue questionnaires to solicit 

information from the Malaysian 

producers and exporters concerning 

their shipments of butt-weld pipe 

fittings to the United States and the 

origin of the imported unfinished or 

finished butt-weld pipe fittings being 

processed into butt-weld pipe fittings. 

Companies failing to respond 

completely and timely to the 

Department’s questionnaire may be 

deemed uncooperative and an adverse 

inference may be applied in 

determining whether such companies 

are circumventing the Order. See 

section 776 of the Act. 

Finally, while we believe sufficient 

factual information has been submitted 

by the petitioners supporting their 

request for an inquiry, we do not find 

that the record supports the 

simultaneous issuance of a preliminary 

ruling. Such inquiries are by their 

nature complicated and require 

additional information regarding 

production in both the country subject 

to the order and the third-country 

completing the product. As noted above, 

the Department intends to request 

additional information regarding the 

statutory criteria to determine whether 

shipments of butt-weld pipe fittings 

from Malaysia are circumventing the 

Order on butt-weld pipe fittings from 

the PRC. Thus, further development of 

the record is required before a 

preliminary ruling can be issued. 

Notification to Interested Parties 

In accordance with 19 CFR 

351.225(e), the Department finds that 

the issue of whether a product is 

included within the scope of any order 

cannot be determined based solely upon 

the application and the descriptions of 

the merchandise. Accordingly, the 

Department will notify by mail all 

parties on the Department’s scope 

service list of the initiation of anticircumvention inquiries. Additionally, 

in accordance with 19 CFR 

351.225(f)(1)(i) and (ii), in this notice of 

initiation issued under 19 CFR 

351.225(e), we included a description of 

the product that is the subject of this 

anti-circumvention inquiry (i.e., buttweld pipe fittings that contain the 

characteristics as provided in the scope 

of the Order), and an explanation of the 

reasons for the Department’s decision to 

initiate this anti-circumvention inquiry, 

as provided above. 

In accordance with 19 CFR 

351.225(1)(2), if the Department issues 

an affirmative preliminary 

determination, we will then instruct 

U.S. Customs and Border Protection to 

suspend liquidation and require cash 

deposits of estimated antidumping 

duties, at the applicable rates, for each 

unliquidated entry of the merchandise 

at issue, entered or withdrawn from 

warehouse for consumption on or after 

the date of initiation of the inquiry. The 

Department will establish a schedule for 

questionnaires and comments for this 

inquiry. In accordance with section 

781(f) of the Act and 19 CFR 

351.225(f)(5), the Department intends to 

issue its final determination within 300 

days of the date of publication of this 

notice. 

This notice is published in 

accordance with 19 CFR 351.225(f). 

Dated: August 21, 2017. 

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. 

[FR Doc. 2017–18046 Filed 8–24–17; 8:45 am] 

BILLING CODE 3510–DS–P 

DEPARTMENT OF COMMERCE 

International Trade Administration 

[A–570–979] 

Crystalline Silicon Photovoltaic Cells, 

Whether or Not Assembled Into 

Modules, from the People’s Republic 

of China: Amended Final Results of 

Antidumping Duty Administrative 

Review; 2014–2015 

AGENCY: Enforcement and Compliance, 

International Trade Administration, 

Department of Commerce. 

SUMMARY: The Department of Commerce 

(the Department) is amending its final 

results of the third administrative 

review of the antidumping duty (AD) 

order on crystalline silicon photovoltaic 

cells, whether or not assembled into 

modules (solar cells), from the People’s 

Republic of China (PRC). The period of 

review (POR) is December 1, 2014, 

through November 30, 2015. The 

amended final weighted-average 

dumping margins are listed below in the 

section entitled, ‘‘Amended Final 

Results.’’ 

DATES: Applicable August 25, 2017. 

FOR FURTHER INFORMATION CONTACT: 

Krisha Hill, AD/CVD Operations, Office 

IV, Enforcement & Compliance, 

International Trade Administration, 

Department of Commerce, 1401 

Constitution Avenue NW, Washington, 

DC 20230; telephone: (202) 482–4037. 

SUPPLEMENTARY INFORMATION: 

Background 

On June 27, 2017, the Department 

published the final results of the 2014– 

2015 administrative review of the AD 

order on solar cells from the PRC in the 

Federal Register.1 In addition, on June 

27, 2017, the Department disclosed to 

interested parties its calculations for the 

final results.2 On June 30, 2017, the 

Department received a timely filed 

ministerial error allegation from 

SolarWorld Americas, Inc. (the 

petitioner) regarding the Department’s 

calculation of the dumping margin for 

Trina,3 one of the mandatory 


sradovich on DSK3GMQ082PROD with NOTICES