82_FR_29603 82 FR 29479 - Finished Carbon Steel Flanges From India: Final Affirmative Countervailing Duty Determination

82 FR 29479 - Finished Carbon Steel Flanges From India: Final Affirmative Countervailing Duty Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 82, Issue 124 (June 29, 2017)

Page Range29479-29481
FR Document2017-13628

The Department of Commerce (Department) determines that countervailable subsidies are being provided to producers and exporters of finished carbon steel flanges (flanges) from India. The period of investigation is April 1, 2015, through March 31, 2016.

Federal Register, Volume 82 Issue 124 (Thursday, June 29, 2017)
[Federal Register Volume 82, Number 124 (Thursday, June 29, 2017)]
[Notices]
[Pages 29479-29481]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13628]


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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-872]


Finished Carbon Steel Flanges From India: Final Affirmative 
Countervailing Duty Determination

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

SUMMARY: The Department of Commerce (Department) determines that 
countervailable subsidies are being provided to producers and exporters 
of finished carbon steel flanges (flanges) from India. The period of 
investigation is April 1, 2015, through March 31, 2016.

DATES: Effective June 29, 2017.

FOR FURTHER INFORMATION CONTACT: Emily Maloof or Davina Friedmann, AD/
CVD Operations, Office VI, Enforcement and Compliance, International 
Trade Administration, U.S. Department of Commerce, 1401 Constitution 
Avenue NW., Washington, DC 20230; telephone: (202) 482-5649, or (202) 
482-0698, respectively.

SUPPLEMENTARY INFORMATION:

Background

    On November 29, 2016, the Department published the Preliminary 
Determination in the Federal Register.\1\
---------------------------------------------------------------------------

    \1\ See Finished Carbon Steel Flanges from India: Preliminary 
Affirmative Countervailing Duty Determination, 81 FR 85928 (November 
29, 2016) (Preliminary Determination) and accompanying Preliminary 
Decision Memorandum (PDM).
---------------------------------------------------------------------------

    A summary of the events that occurred since the Department 
published the Preliminary Determination, as well as a full discussion 
of the issues raised by parties for this final determination, may be 
found in the accompanying Issues and Decision Memorandum.\2\ 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). 
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 Issues and Decision Memorandum can be accessed directly 
at http://enforcement.trade.gov. The signed and electronic versions of 
the Issues and Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \2\ See Memorandum from Gary Taverman, Deputy Assistant 
Secretary for Antidumping and Countervailing Duty Operations, to 
Ronald K. Lorentzen, Acting Assistant Secretary for Enforcement and 
Compliance ``Decision Memorandum for the Preliminary Affirmative 
Determination: Countervailing Duty Investigation of Finished Carbon 
Steel Flanges from India,'' dated concurrently with this 
determination and hereby adopted by this notice (Issues and Decision 
Memorandum).
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Scope Comments

    In accordance with the Preliminary Determination, the Department 
set aside a period of time for parties to address scope issues in case 
briefs or other written comments on scope issues.\3\ In the Preliminary 
Determination, we did not modify the scope language as it appeared in 
the Initiation Notice.\4\ No interested party submitted scope comments 
in case or rebuttal briefs. However, the scope description that was 
published in the Initiation Notice and in the Preliminary Determination 
contained typographical errors, which have been corrected in the scope 
description provided in Appendix I of this notice.\5\ Other than the 
correction of typographical errors, the scope of this investigation 
remains unchanged for this final determination.
---------------------------------------------------------------------------

    \3\ See Preliminary Determination and PDM at ``Scope Comments.''
    \4\ Id.; see also, Finished Carbon Steel Flanges from India: 
Initiation of Countervailing Duty Investigation, 81 FR 49625 (July 
28, 2016) (Initiation Notice).
    \5\ Specifically, the Department incorrectly referenced the ASME 
specifications as ``ASME 816.5 or ASME 816.47 series A or series 
B.'' The corrected scope description properly references these 
specifications at ``ASME B16.5 or ASME B16.47 series A or series 
B.''
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Scope of the Investigation

    The products covered by this investigation are finished carbon 
steel flanges from India. For a complete description of the scope of 
the investigation, see ``Scope of the Investigation,'' in Appendix I of 
this notice.

Analysis of Subsidy Programs and Comments Received

    The subsidy programs under investigation, and the issues raised in 
the case and rebuttal briefs submitted by the parties, are discussed 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, is attached to this notice at Appendix II.

Verification

    The Department conducted verification of the questionnaire 
responses submitted by the Government of India, USK Group, and RNG 
between January 30, and February 10, 2017.\6\
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    \6\ See Memoranda, ``Verification Report of Norma (India) Ltd., 
Uma Shanker Khandelwal & Co., USK Exports Private Limited, and 
Bansidhar Chiranjilal,'' dated March 29, 2017 (USK Group 
Verification Report); ``Verification Report of R.N. Gupta & Co., 
Ltd.,'' dated March 29, 2017 (RNG Verification Report); and 
``Verification Report of the Government of India,'' dated March 29, 
2017 (Government of India Verification Report).
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Use of Adverse Facts Available

    If necessary information is not available on the record, or an 
interested party withholds information, fails to provide requested 
information in a timely manner, significantly impedes a proceeding by 
not providing information, or information provided cannot be verified, 
the Department will apply facts available, pursuant to section 
776(a)(1) & (2) of the Tariff Act of 1930, as amended (the Act). For 
purposes of this final determination, the Department relied, in part, 
on facts available. For USK Group Ltd. (Norma) \7\ and R.N. Gupta & Co. 
(RNG), we are basing certain countervailing duty rates on facts 
otherwise available. Further, because USK Group and RNG did not act to 
the best of their ability in this investigation by not providing 
necessary

[[Page 29480]]

information requested by the Department, we determine that an adverse 
inference in selecting from the facts available is warranted with 
respect to certain countervailable subsidy programs, pursuant to 
section 776(b) of the Act. The Department has, therefore, relied, in 
part, on adverse facts available (AFA) in calculating the subsidy rates 
for both mandatory respondents.
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    \7\ Norma (India) Limited includes its cross-owned affiliates 
USK Exports Private Limited (USK), UMA Shanker Khandelwal & Co. 
(UMA), and Bansidhar Chiranjilal (BDCL) (collectively, USK Group). 
For further discussion, see the accompanying Issues and Decision 
Memorandum.
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    Regarding USK Group, we determine that application of AFA is 
warranted with regard to one lending program for importing capital 
equipment.\8\ Concerning RNG, we determine that the application of AFA 
is warranted with regard to two programs, i.e., capital equipment 
purchases and export financing. Because the Government of India did not 
provide the requested information, as AFA, we find that each of the 
programs meet the financial contribution and specificity criteria 
outlined under sections 771(5)(D) and 771(5A) of the Act, 
respectively.\9\ As AFA, we also find that these subsidy programs 
confer a benefit under section 771(5)(E) of the Act and 19 CFR 351.519.
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    \8\ For further discussion, see USK Group's Final Calculation 
Memorandum.
    \9\ See, e.g., Supercalendered Paper from Canada: Final 
Affirmative Countervailing Duty Determination, 80 FR 63535 (October 
20, 2015), and accompanying IDM at 17-20, 153-154.
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    For further information on the Department's application of AFA, as 
summarized above, see the section titled, ``Use of Facts Otherwise 
Available and Adverse Inferences,'' in the Issues and Decision 
Memorandum.

Changes Since the Preliminary Determination

    Based on our analysis of the comments received from parties and the 
minor corrections presented, as well as additional items discovered at 
verification, we made certain changes to the respondent's subsidy rate 
calculations set forth in the Preliminary Determination. For a 
discussion of these changes, see the Issues and Decision Memorandum and 
the Final Calculation Memoranda.\10\
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    \10\ See Issues and Decision Memorandum; see also Memorandum, 
``Final Determination Calculations for Norma (India) Ltd.,'' dated 
June 23, 2017 (Norma's Final Calculation Memorandum); see also 
Memorandum, ``Final Determination Calculation Memorandum of RNG,'' 
dated June 23, 2017 (RNG's Final Calculation Memorandum).
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Final Determination

    In accordance with section 705(c)(1)(B)(i) of the Act, we 
calculated a rate for each exporter/producer of the subject merchandise 
individually investigated, i.e., Norma (India), Ltd. and R.N. Gupta & 
Co. In accordance with section 705(c)(5)(A) of the Act, for companies 
not individually investigated, we apply an ``all-others'' rate, which 
is normally calculated by weighting the subsidy rates of the individual 
companies selected as mandatory respondents by those companies' exports 
of the subject merchandise to the United States. Under section 
705(c)(5)(A)(i) of the Act, the ``all-others'' rate excludes zero and 
de minimis rates calculated for the exporters and producers 
individually investigated as well as rates based entirely on facts 
otherwise available. Where the rates for the individually investigated 
companies are all zero or de minimis, or determined entirely using 
facts otherwise available, section 705(c)(5)(A)(ii) of the Act 
instructs the Department to establish an ``all-others'' rate using 
``any reasonable method.'' Where the countervailable subsidy rates for 
all of the individually investigated respondents are zero or de minimis 
or are based on total AFA, the Department's practice, pursuant to 
705(c)(5)(A)(ii), is to calculate the all others rate based on a simple 
average of the zero or de minimis margins and the margins based on 
total AFA.
    Pursuant to section 705(c)(5)(A)(i) of the Act, we have calculated 
the ``all-others'' rate using the subsidy rates of the two individually 
investigated respondents. However, we have not calculated the ``all-
others'' rate by weight-averaging the rates because doing so risks 
disclosure of proprietary information. Therefore, consistent with the 
Department's practice,\11\ for the ``all others'' rate, we calculated a 
simple average of the two mandatory respondents' subsidy rates.
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    \11\ See e.g., Countervailing Duty Investigations of Certain 
Amorphous Silica Fabric from the People's Republic of China: Final 
Affirmative Determination, 82 FR 8405 (January 25, 2016).
---------------------------------------------------------------------------

    The final subsidy rates are as follows:
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    \12\ As discussed in the Preliminary Determination, the 
Department found the following companies to be cross-owned with 
Norma (India), Ltd.: Uma Shanker Khandelwal & Co. (UMA), USK Exports 
Private Limited (USK), and Bansidhar Chiranjilal (BDCL).

------------------------------------------------------------------------
                                                           Subsidy rate
                    Exporter/producer                        (percent)
------------------------------------------------------------------------
Norma (India), Ltd \12\.................................            5.66
R.N. Gupta & Co.........................................            9.11
All-Others..............................................            7.39
------------------------------------------------------------------------

Disclosure

    We will 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).

Continuation of Suspension of Liquidation

    As a result of our Preliminary Determination, and pursuant to 
section 703(d) of the Act, we instructed U.S. Customs and Border 
Protection (CBP) to suspend liquidation of any entries of merchandise 
under consideration from India that were entered or withdrawn from 
warehouse, for consumption, on or after November 29, 2016, which is the 
publication date in the Federal Register of the Preliminary 
Determination. Therefore, in accordance with section 703(d) of the Act, 
we issued instructions to CBP to suspend liquidation of all entries of 
steel flanges from India that are entered, or withdrawn from warehouse, 
for consumption, on or after November 29, 2017 through March 28, 2017. 
Additionally, we instructed CBP to discontinue the suspension of 
liquidation for countervailing duty purposes for subject merchandise 
entered, or withdrawn from warehouse, on or after March 29, 2017 in 
accordance with section 703(d)(3) of the Act.
    If the U.S. International Trade Commission (ITC) issues a final 
affirmative injury determination, we will issue a countervailing duty 
order, instruct CBP to reinstate suspension of liquidation under 
section 706(a) of the Act, and will require a cash deposit of estimated 
countervailing duties for such entries of subject merchandise in the 
amounts indicated above. If the ITC determines that material injury, or 
threat of material injury, does not exist, this proceeding will be 
terminated and all estimated duties deposited as a result of the 
suspension of liquidation will be refunded or canceled.

U.S. International Trade Commission Notification

    In accordance with section 705(d) of the Act, we will notify the 
U.S. International Trade Commission (ITC) of our determination. In 
addition, we are making available to the ITC all non-privileged and 
non-proprietary information related to this investigation. We will 
allow the ITC access to all privileged and business proprietary 
information in our files, provided the ITC confirms that it will not 
disclose such information, either publicly or under an administrative 
protective order (APO), without the written consent of the Acting 
Assistant Secretary for Enforcement and Compliance.

Notification Regarding Administrative Protective Orders

    This notice serves as a reminder to parties subject to an 
administrative

[[Page 29481]]

protective order (APO) of their responsibility concerning the 
disposition of proprietary information disclosed under APO in 
accordance with 19 CFR 351.305(a)(3). 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 the terms of an APO is a sanctionable violation.

Notification to Interested Parties

    This determination is issued and published pursuant to sections 
705(d) and 777(i)(1) of the Act and 19 CFR 351.210.

    Dated: June 23, 2017
Ronald K. Lorentzen,
Acting Assistant Secretary for Enforcement and Compliance .

Appendix I

Scope of the Investigation

    The scope of this investigation covers finished carbon steel 
flanges. Finished carbon steel flanges differ from unfinished carbon 
steel flanges (also known as carbon steel flange forgings) in that 
they have undergone further processing after forging, including, but 
not limited to, beveling, bore threading, center or step boring, 
face machining, taper boring, machining ends or surfaces, drilling 
bolt holes, and/or deburring or shot blasting. Any one of these 
post-forging processes suffices to render the forging into a 
finished carbon steel flange for purposes of this investigation. 
However, mere heat treatment of a carbon steel flange forging 
(without any other further processing after forging) does not render 
the forging into a finished carbon steel flange for purposes of this 
investigation.
    While these finished carbon steel flanges are generally 
manufactured to specification ASME B16.5 or ASME B16.47 series A or 
series B, the scope is not limited to flanges produced under those 
specifications. All types of finished carbon steel flanges are 
included in the scope regardless of pipe size (which may or may not 
be expressed in inches of nominal pipe size), pressure class 
(usually, but not necessarily, expressed in pounds of pressure, 
e.g., 150, 300, 400, 600, 900, 1500, 2500, etc.), type of face 
(e.g., flat face, full face, raised face, etc.), configuration 
(e.g., weld neck, slip on, socket weld, lap joint, threaded, etc.), 
wall thickness (usually, but not necessarily, expressed in inches), 
normalization, or whether or not heat treated. These carbon steel 
flanges either meet or exceed the requirements of the ASTM A105, 
ASTM A694, ASTM A181, ASTM A350 and ASTM A707 standards (or 
comparable foreign specifications). The scope includes any flanges 
produced to the above-referenced ASTM standards as currently stated 
or as may be amended. The term ``carbon steel'' under this scope is 
steel in which: (a) Iron predominates, by weight, over each of the 
other contained elements: (b) The carbon content is 2 percent or 
less, by weight; and (c) none of the elements listed below exceeds 
the quantity, by weight, as indicated:
    (i) 0.87 percent of aluminum;
    (ii) 0.0105 percent of boron;
    (iii) 10.10 percent of chromium;
    (iv) 1.55 percent of columbium;
    (v) 3.10 percent of copper;
    (vi) 0.38 percent of lead;
    (vii) 3.04 percent of manganese;
    (viii) 2.05 percent of molybdenum;
    (ix) 20.15 percent of nickel;
    (x) 1.55 percent of niobium;
    (xi) 0.20 percent of nitrogen;
    (xii) 0.21 percent of phosphorus;
    (xiii) 3.10 percent of silicon;
    (xiv) 0.21 percent of sulfur;
    (xv) 1.05 percent of titanium;
    (xvi) 4.06 percent of tungsten;
    (xvii) 0.53 percent of vanadium; or
    (xviii) 0.015 percent of zirconium.
    Finished carbon steel flanges are currently classified under 
subheadings 7307.91.5010 and 7307.91.5050 of the Harmonized Tariff 
Schedule of the United States (HTSUS). They may also be entered 
under HTSUS subheadings 7307.91.5030 and 7307.91.5070. The HTSUS 
subheadings are provided for convenience and customs purposes; the 
written description of the scope is dispositive.

Appendix II

List of Topics Discussed in the Issues and Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Scope of the Investigation
VI. Subsidies Valuation Information
VII. Benchmarks and Interest Rates
VIII. Use of Facts Otherwise Available and Adverse Inferences
IX. Analysis of Programs
    A. Programs Determined to be Countervailable
    B. Programs Determined to be Not Used
X. Discussion of the Issues
    Comment 1: Whether the Department Should Have Rejected the 
Government of India's Supplemental Questionnaire Response
    Comment 2: Whether the Duty Drawback (DDB) Program Provides a 
Countervailable Subsidy
    Comment 3: Whether R.N. Gupta & Co., Ltd. (RNG) and USK Group 
Should Report Duty Export Pass Book (DEPB) Licenses During the 
Average Useful Life (AUL) Period Prior to the Period of 
Investigation (POI)
    Comment 4: Whether USK Group and RNG Received Benefits from 
Certain Government of India Majority-Owned Banks
    Comment 5: Whether the Export Promotion of Capital Goods Scheme 
(EPCGS) Provides a Countervailable Subsidy and Whether the EPCGS 
Used the Correct Denominator for the Benefit Calculation of 
Respondents
    Comment 6: Whether to Apply Adverse Facts Available (AFA) to 
Norma's AUL Sales Data
    Comment 7: Whether to Apply AFA to RNG's Unaffiliated Indian 
Suppliers of Subject Merchandise
    Comment 8: Whether to Countervail Funds Received by RNG Under 
the Focus Product Scheme (FPS) During the POI
XI. Recommendation

[FR Doc. 2017-13628 Filed 6-28-17; 8:45 am]
 BILLING CODE 3510-DS-P



                                                                              Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Notices                                                        29479

                                                  Contact: Robert Schramm, Telephone:                   Background                                               typographical errors, the scope of this
                                                (202) 543–4455.                                           On November 29, 2016, the                              investigation remains unchanged for
                                                  Application No.: 03–3A008.                            Department published the Preliminary                     this final determination.
                                                  Date Deemed Submitted: June 15,                       Determination in the Federal Register.1                  Scope of the Investigation
                                                2017.                                                     A summary of the events that
                                                  Proposed Amendment: CPEC seeks to                     occurred since the Department                               The products covered by this
                                                amend its Certificate as follows:                       published the Preliminary                                investigation are finished carbon steel
                                                  • Remove Horizon Marketing Agency                     Determination, as well as a full                         flanges from India. For a complete
                                                in Common Cooperative Inc. as a                         discussion of the issues raised by parties               description of the scope of the
                                                Member                                                  for this final determination, may be                     investigation, see ‘‘Scope of the
                                                  • Add the following new Members:                      found in the accompanying Issues and                     Investigation,’’ in Appendix I of this
                                                  Æ Arizona Nut Company, LLC                            Decision Memorandum.2 The Issues and                     notice.
                                                (controlling entity A&P Ranch, L.P.)                    Decision Memorandum is a public                          Analysis of Subsidy Programs and
                                                  Æ Horizon Growers Cooperative, Inc.                   document, and is on file electronically                  Comments Received
                                                  CPEC’s proposed amendment of its                      via Enforcement and Compliance’s                           The subsidy programs under
                                                Certificate would result in the following               Antidumping and Countervailing Duty                      investigation, and the issues raised in
                                                Members list:                                           Centralized Electronic Service System                    the case and rebuttal briefs submitted by
                                                Arizona Nut Company, LLC                                (ACCESS). ACCESS is available to                         the parties, are discussed in the Issues
                                                ARO Pistachios, Inc.                                    registered users at http://                              and Decision Memorandum. A list of
                                                Horizon Growers Cooperative, Inc.                       access.trade.gov, and is available to all                the issues that parties raised, and to
                                                Keenan Farms, Inc.                                      parties in the Central Records Unit,                     which we responded in the Issues and
                                                Monarch Nut Company                                     room B8024 of the main Department of                     Decision Memorandum, is attached to
                                                Nichols Pistachio                                       Commerce building. In addition, a                        this notice at Appendix II.
                                                Primex Farms, LLC                                       complete version of the Issues and
                                                Setton Pistachio of Terra Bella, Inc.                   Decision Memorandum can be accessed                      Verification
                                                Zymex Industries, Inc.                                  directly at http://enforcement.trade.gov.                  The Department conducted
                                                                                                        The signed and electronic versions of                    verification of the questionnaire
                                                  Dated: June 23, 2017.
                                                                                                        the Issues and Decision Memorandum                       responses submitted by the Government
                                                Joseph E. Flynn,                                        are identical in content.                                of India, USK Group, and RNG between
                                                Director, Office of Trade and Economic
                                                Analysis, International Trade Administration,           Scope Comments                                           January 30, and February 10, 2017.6
                                                U.S. Department of Commerce.                              In accordance with the Preliminary                     Use of Adverse Facts Available
                                                [FR Doc. 2017–13577 Filed 6–28–17; 8:45 am]             Determination, the Department set aside                    If necessary information is not
                                                BILLING CODE 3510–DR–P                                  a period of time for parties to address                  available on the record, or an interested
                                                                                                        scope issues in case briefs or other                     party withholds information, fails to
                                                                                                        written comments on scope issues.3 In                    provide requested information in a
                                                DEPARTMENT OF COMMERCE                                  the Preliminary Determination, we did                    timely manner, significantly impedes a
                                                                                                        not modify the scope language as it                      proceeding by not providing
                                                International Trade Administration                      appeared in the Initiation Notice.4 No                   information, or information provided
                                                                                                        interested party submitted scope                         cannot be verified, the Department will
                                                [C–533–872]                                             comments in case or rebuttal briefs.                     apply facts available, pursuant to
                                                                                                        However, the scope description that was                  section 776(a)(1) & (2) of the Tariff Act
                                                Finished Carbon Steel Flanges From                      published in the Initiation Notice and in                of 1930, as amended (the Act). For
                                                India: Final Affirmative Countervailing                 the Preliminary Determination                            purposes of this final determination, the
                                                Duty Determination                                      contained typographical errors, which                    Department relied, in part, on facts
                                                AGENCY:  Enforcement and Compliance,                    have been corrected in the scope                         available. For USK Group Ltd. (Norma) 7
                                                International Trade Administration,                     description provided in Appendix I of                    and R.N. Gupta & Co. (RNG), we are
                                                Department of Commerce.                                 this notice.5 Other than the correction of               basing certain countervailing duty rates
                                                SUMMARY: The Department of Commerce                                                                              on facts otherwise available. Further,
                                                                                                           1 See Finished Carbon Steel Flanges from India:
                                                (Department) determines that                                                                                     because USK Group and RNG did not
                                                                                                        Preliminary Affirmative Countervailing Duty
                                                countervailable subsidies are being                     Determination, 81 FR 85928 (November 29, 2016)           act to the best of their ability in this
                                                provided to producers and exporters of                  (Preliminary Determination) and accompanying             investigation by not providing necessary
                                                                                                        Preliminary Decision Memorandum (PDM).
                                                finished carbon steel flanges (flanges)                    2 See Memorandum from Gary Taverman, Deputy
                                                                                                                                                                 816.5 or ASME 816.47 series A or series B.’’ The
                                                from India. The period of investigation                 Assistant Secretary for Antidumping and                  corrected scope description properly references
                                                is April 1, 2015, through March 31,                     Countervailing Duty Operations, to Ronald K.             these specifications at ‘‘ASME B16.5 or ASME
                                                2016.                                                   Lorentzen, Acting Assistant Secretary for                B16.47 series A or series B.’’
                                                                                                        Enforcement and Compliance ‘‘Decision                       6 See Memoranda, ‘‘Verification Report of Norma
                                                DATES:   Effective June 29, 2017.                       Memorandum for the Preliminary Affirmative               (India) Ltd., Uma Shanker Khandelwal & Co., USK
                                                                                                        Determination: Countervailing Duty Investigation of      Exports Private Limited, and Bansidhar
                                                FOR FURTHER INFORMATION CONTACT:                        Finished Carbon Steel Flanges from India,’’ dated        Chiranjilal,’’ dated March 29, 2017 (USK Group
                                                Emily Maloof or Davina Friedmann,                       concurrently with this determination and hereby          Verification Report); ‘‘Verification Report of R.N.
                                                AD/CVD Operations, Office VI,                           adopted by this notice (Issues and Decision              Gupta & Co., Ltd.,’’ dated March 29, 2017 (RNG
sradovich on DSK3GMQ082PROD with NOTICES




                                                Enforcement and Compliance,                             Memorandum).                                             Verification Report); and ‘‘Verification Report of the
                                                                                                           3 See Preliminary Determination and PDM at
                                                International Trade Administration,                                                                              Government of India,’’ dated March 29, 2017
                                                                                                        ‘‘Scope Comments.’’                                      (Government of India Verification Report).
                                                U.S. Department of Commerce, 1401                          4 Id.; see also, Finished Carbon Steel Flanges from      7 Norma (India) Limited includes its cross-owned
                                                Constitution Avenue NW., Washington,                    India: Initiation of Countervailing Duty                 affiliates USK Exports Private Limited (USK), UMA
                                                DC 20230; telephone: (202) 482–5649, or                 Investigation, 81 FR 49625 (July 28, 2016)               Shanker Khandelwal & Co. (UMA), and Bansidhar
                                                (202) 482–0698, respectively.                           (Initiation Notice).                                     Chiranjilal (BDCL) (collectively, USK Group). For
                                                                                                           5 Specifically, the Department incorrectly            further discussion, see the accompanying Issues
                                                SUPPLEMENTARY INFORMATION:                              referenced the ASME specifications as ‘‘ASME             and Decision Memorandum.



                                           VerDate Sep<11>2014   18:29 Jun 28, 2017   Jkt 241001   PO 00000   Frm 00006   Fmt 4703   Sfmt 4703   E:\FR\FM\29JNN1.SGM     29JNN1


                                                29480                         Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Notices

                                                information requested by the                            with section 705(c)(5)(A) of the Act, for                     Continuation of Suspension of
                                                Department, we determine that an                        companies not individually                                    Liquidation
                                                adverse inference in selecting from the                 investigated, we apply an ‘‘all-others’’                         As a result of our Preliminary
                                                facts available is warranted with respect               rate, which is normally calculated by                         Determination, and pursuant to section
                                                to certain countervailable subsidy                      weighting the subsidy rates of the                            703(d) of the Act, we instructed U.S.
                                                programs, pursuant to section 776(b) of                 individual companies selected as                              Customs and Border Protection (CBP) to
                                                the Act. The Department has, therefore,                 mandatory respondents by those                                suspend liquidation of any entries of
                                                relied, in part, on adverse facts available             companies’ exports of the subject                             merchandise under consideration from
                                                (AFA) in calculating the subsidy rates                  merchandise to the United States. Under                       India that were entered or withdrawn
                                                for both mandatory respondents.                         section 705(c)(5)(A)(i) of the Act, the                       from warehouse, for consumption, on or
                                                   Regarding USK Group, we determine                    ‘‘all-others’’ rate excludes zero and de                      after November 29, 2016, which is the
                                                that application of AFA is warranted                    minimis rates calculated for the                              publication date in the Federal Register
                                                with regard to one lending program for                  exporters and producers individually                          of the Preliminary Determination.
                                                importing capital equipment.8                           investigated as well as rates based                           Therefore, in accordance with section
                                                Concerning RNG, we determine that the                   entirely on facts otherwise available.                        703(d) of the Act, we issued instructions
                                                application of AFA is warranted with                    Where the rates for the individually                          to CBP to suspend liquidation of all
                                                regard to two programs, i.e., capital                   investigated companies are all zero or                        entries of steel flanges from India that
                                                equipment purchases and export                          de minimis, or determined entirely                            are entered, or withdrawn from
                                                financing. Because the Government of                    using facts otherwise available, section                      warehouse, for consumption, on or after
                                                India did not provide the requested                     705(c)(5)(A)(ii) of the Act instructs the                     November 29, 2017 through March 28,
                                                information, as AFA, we find that each                  Department to establish an ‘‘all-others’’                     2017. Additionally, we instructed CBP
                                                of the programs meet the financial                      rate using ‘‘any reasonable method.’’                         to discontinue the suspension of
                                                contribution and specificity criteria                   Where the countervailable subsidy rates                       liquidation for countervailing duty
                                                outlined under sections 771(5)(D) and                   for all of the individually investigated                      purposes for subject merchandise
                                                771(5A) of the Act, respectively.9 As                   respondents are zero or de minimis or                         entered, or withdrawn from warehouse,
                                                AFA, we also find that these subsidy                    are based on total AFA, the                                   on or after March 29, 2017 in
                                                programs confer a benefit under section                 Department’s practice, pursuant to                            accordance with section 703(d)(3) of the
                                                771(5)(E) of the Act and 19 CFR                         705(c)(5)(A)(ii), is to calculate the all                     Act.
                                                351.519.                                                others rate based on a simple average of
                                                   For further information on the                                                                                        If the U.S. International Trade
                                                                                                        the zero or de minimis margins and the                        Commission (ITC) issues a final
                                                Department’s application of AFA, as                     margins based on total AFA.
                                                summarized above, see the section                                                                                     affirmative injury determination, we
                                                                                                           Pursuant to section 705(c)(5)(A)(i) of                     will issue a countervailing duty order,
                                                titled, ‘‘Use of Facts Otherwise                        the Act, we have calculated the ‘‘all-
                                                Available and Adverse Inferences,’’ in                                                                                instruct CBP to reinstate suspension of
                                                                                                        others’’ rate using the subsidy rates of                      liquidation under section 706(a) of the
                                                the Issues and Decision Memorandum.                     the two individually investigated                             Act, and will require a cash deposit of
                                                Changes Since the Preliminary                           respondents. However, we have not                             estimated countervailing duties for such
                                                Determination                                           calculated the ‘‘all-others’’ rate by                         entries of subject merchandise in the
                                                                                                        weight-averaging the rates because                            amounts indicated above. If the ITC
                                                  Based on our analysis of the                          doing so risks disclosure of proprietary
                                                comments received from parties and the                                                                                determines that material injury, or
                                                                                                        information. Therefore, consistent with                       threat of material injury, does not exist,
                                                minor corrections presented, as well as                 the Department’s practice,11 for the ‘‘all
                                                additional items discovered at                                                                                        this proceeding will be terminated and
                                                                                                        others’’ rate, we calculated a simple                         all estimated duties deposited as a result
                                                verification, we made certain changes to                average of the two mandatory
                                                the respondent’s subsidy rate                                                                                         of the suspension of liquidation will be
                                                                                                        respondents’ subsidy rates.                                   refunded or canceled.
                                                calculations set forth in the Preliminary                  The final subsidy rates are as follows:
                                                Determination. For a discussion of these                                                                              U.S. International Trade Commission
                                                changes, see the Issues and Decision                                                                  Subsidy rate    Notification
                                                Memorandum and the Final Calculation                            Exporter/producer                      (percent)
                                                Memoranda.10                                                                                                            In accordance with section 705(d) of
                                                                                                        Norma (India), Ltd 12 .............                    5.66   the Act, we will notify the U.S.
                                                Final Determination                                     R.N. Gupta & Co ..................                     9.11   International Trade Commission (ITC) of
                                                   In accordance with section                           All-Others ..............................              7.39   our determination. In addition, we are
                                                705(c)(1)(B)(i) of the Act, we calculated                                                                             making available to the ITC all non-
                                                a rate for each exporter/producer of the                Disclosure                                                    privileged and non-proprietary
                                                subject merchandise individually                                                                                      information related to this investigation.
                                                                                                          We will disclose the calculations
                                                investigated, i.e., Norma (India), Ltd.                                                                               We will allow the ITC access to all
                                                                                                        performed within five days of the date
                                                and R.N. Gupta & Co. In accordance                                                                                    privileged and business proprietary
                                                                                                        of publication of this notice to parties in
                                                                                                                                                                      information in our files, provided the
                                                                                                        this proceeding in accordance with 19
                                                  8 For further discussion, see USK Group’s Final                                                                     ITC confirms that it will not disclose
                                                                                                        CFR 351.224(b).
                                                Calculation Memorandum.                                                                                               such information, either publicly or
                                                  9 See, e.g., Supercalendered Paper from Canada:
                                                                                                                                                                      under an administrative protective order
                                                Final Affirmative Countervailing Duty                     11 See e.g., Countervailing Duty Investigations of
sradovich on DSK3GMQ082PROD with NOTICES




                                                Determination, 80 FR 63535 (October 20, 2015), and      Certain Amorphous Silica Fabric from the People’s
                                                                                                                                                                      (APO), without the written consent of
                                                accompanying IDM at 17–20, 153–154.                     Republic of China: Final Affirmative Determination,           the Acting Assistant Secretary for
                                                  10 See Issues and Decision Memorandum; see also       82 FR 8405 (January 25, 2016).                                Enforcement and Compliance.
                                                Memorandum, ‘‘Final Determination Calculations            12 As discussed in the Preliminary Determination,

                                                for Norma (India) Ltd.,’’ dated June 23, 2017           the Department found the following companies to               Notification Regarding Administrative
                                                (Norma’s Final Calculation Memorandum); see also        be cross-owned with Norma (India), Ltd.: Uma                  Protective Orders
                                                Memorandum, ‘‘Final Determination Calculation           Shanker Khandelwal & Co. (UMA), USK Exports
                                                Memorandum of RNG,’’ dated June 23, 2017 (RNG’s         Private Limited (USK), and Bansidhar Chiranjilal                This notice serves as a reminder to
                                                Final Calculation Memorandum).                          (BDCL).                                                       parties subject to an administrative


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                                                                              Federal Register / Vol. 82, No. 124 / Thursday, June 29, 2017 / Notices                                                    29481

                                                protective order (APO) of their                           (i) 0.87 percent of aluminum;                          Comment 8: Whether to Countervail Funds
                                                responsibility concerning the                             (ii) 0.0105 percent of boron;                             Received by RNG Under the Focus
                                                disposition of proprietary information                    (iii) 10.10 percent of chromium;                          Product Scheme (FPS) During the POI
                                                disclosed under APO in accordance                         (iv) 1.55 percent of columbium;                      XI. Recommendation
                                                                                                          (v) 3.10 percent of copper;                          [FR Doc. 2017–13628 Filed 6–28–17; 8:45 am]
                                                with 19 CFR 351.305(a)(3). Timely
                                                                                                          (vi) 0.38 percent of lead;
                                                written notification of the return or                     (vii) 3.04 percent of manganese;
                                                                                                                                                               BILLING CODE 3510–DS–P
                                                destruction of APO materials, or                          (viii) 2.05 percent of molybdenum;
                                                conversion to judicial protective order,                  (ix) 20.15 percent of nickel;
                                                is hereby requested. Failure to comply                    (x) 1.55 percent of niobium;                         DEPARTMENT OF COMMERCE
                                                with the regulations and the terms of an                  (xi) 0.20 percent of nitrogen;
                                                APO is a sanctionable violation.                          (xii) 0.21 percent of phosphorus;                    International Trade Administration
                                                                                                          (xiii) 3.10 percent of silicon;                      [A–475–835]
                                                Notification to Interested Parties                        (xiv) 0.21 percent of sulfur;
                                                  This determination is issued and                        (xv) 1.05 percent of titanium;                       Finished Carbon Steel Flanges From
                                                published pursuant to sections 705(d)                     (xvi) 4.06 percent of tungsten;                      Italy: Final Determination of Sales at
                                                and 777(i)(1) of the Act and 19 CFR                       (xvii) 0.53 percent of vanadium; or                  Less Than Fair Value
                                                351.210.                                                  (xviii) 0.015 percent of zirconium.
                                                                                                          Finished carbon steel flanges are currently          AGENCY:   Enforcement and Compliance,
                                                  Dated: June 23, 2017                                  classified under subheadings 7307.91.5010              International Trade Administration,
                                                Ronald K. Lorentzen,                                    and 7307.91.5050 of the Harmonized Tariff              Department of Commerce.
                                                Acting Assistant Secretary for Enforcement              Schedule of the United States (HTSUS). They
                                                                                                        may also be entered under HTSUS                        SUMMARY: The Department of Commerce
                                                and Compliance .
                                                                                                        subheadings 7307.91.5030 and 7307.91.5070.             (Department) determines that imports of
                                                Appendix I                                              The HTSUS subheadings are provided for                 finished carbon steel flanges (flanges)
                                                Scope of the Investigation                              convenience and customs purposes; the                  from Italy are being, or are likely to be,
                                                                                                        written description of the scope is                    sold in the United States at less than fair
                                                   The scope of this investigation covers               dispositive.
                                                finished carbon steel flanges. Finished                                                                        value (LTFV). The final estimated
                                                carbon steel flanges differ from unfinished             Appendix II                                            weighted-average dumping margins of
                                                carbon steel flanges (also known as carbon                                                                     sales at LTFV are listed below in the
                                                steel flange forgings) in that they have                List of Topics Discussed in the Issues and             section entitled ‘‘Final Determination.’’
                                                undergone further processing after forging,             Decision Memorandum
                                                                                                                                                               The period of investigation is April 1,
                                                including, but not limited to, beveling, bore           I. Summary                                             2015, through March 31, 2016.
                                                threading, center or step boring, face                  II. Background
                                                machining, taper boring, machining ends or              III. Period of Investigation                           DATES: Effective June 29, 2017.
                                                surfaces, drilling bolt holes, and/or deburring         IV. Scope Comments                                     FOR FURTHER INFORMATION CONTACT:
                                                or shot blasting. Any one of these post-                V. Scope of the Investigation                          Moses Song or Edythe Artman, AD/CVD
                                                forging processes suffices to render the                VI. Subsidies Valuation Information                    Operations, Office VI, Enforcement and
                                                forging into a finished carbon steel flange for         VII. Benchmarks and Interest Rates                     Compliance, International Trade
                                                purposes of this investigation. However,                VIII. Use of Facts Otherwise Available and
                                                mere heat treatment of a carbon steel flange                                                                   Administration, U.S. Department of
                                                                                                              Adverse Inferences
                                                forging (without any other further processing                                                                  Commerce, 1401 Constitution Avenue
                                                                                                        IX. Analysis of Programs
                                                after forging) does not render the forging into            A. Programs Determined to be                        NW., Washington, DC 20230; telephone:
                                                a finished carbon steel flange for purposes of                Countervailable                                  (202) 482–5041, or (202) 482–3931,
                                                this investigation.                                        B. Programs Determined to be Not Used               respectively.
                                                   While these finished carbon steel flanges            X. Discussion of the Issues
                                                are generally manufactured to specification                                                                    SUPPLEMENTARY INFORMATION:
                                                                                                           Comment 1: Whether the Department
                                                ASME B16.5 or ASME B16.47 series A or                         Should Have Rejected the Government of           Background
                                                series B, the scope is not limited to flanges                 India’s Supplemental Questionnaire
                                                produced under those specifications. All                      Response                                           On February 8, 2017, the Department
                                                types of finished carbon steel flanges are                 Comment 2: Whether the Duty Drawback                published the Preliminary
                                                included in the scope regardless of pipe size                                                                  Determination in the Federal Register.1
                                                                                                              (DDB) Program Provides a
                                                (which may or may not be expressed in                                                                          In the Preliminary Determination, we
                                                                                                              Countervailable Subsidy
                                                inches of nominal pipe size), pressure class
                                                (usually, but not necessarily, expressed in
                                                                                                           Comment 3: Whether R.N. Gupta & Co.,                postponed the final determination until
                                                                                                              Ltd. (RNG) and USK Group Should                  no later than 135 days after the date of
                                                pounds of pressure, e.g., 150, 300, 400, 600,
                                                900, 1500, 2500, etc.), type of face (e.g., flat              Report Duty Export Pass Book (DEPB)              publication of the Preliminary
                                                face, full face, raised face, etc.), configuration            Licenses During the Average Useful Life          Determination, in accordance with
                                                (e.g., weld neck, slip on, socket weld, lap                   (AUL) Period Prior to the Period of
                                                                                                                                                               section 735(a)(2) of the Tariff Act of
                                                joint, threaded, etc.), wall thickness (usually,              Investigation (POI)
                                                                                                           Comment 4: Whether USK Group and RNG                1930, as amended (the Act).2
                                                but not necessarily, expressed in inches),                                                                       The petitioners in this investigation
                                                normalization, or whether or not heat treated.                Received Benefits from Certain
                                                These carbon steel flanges either meet or                     Government of India Majority-Owned               are Weldbend Corporation and Boltex
                                                exceed the requirements of the ASTM A105,                     Banks                                            Manufacturing Co., L.P. The two
                                                ASTM A694, ASTM A181, ASTM A350 and                        Comment 5: Whether the Export Promotion             mandatory respondents in this
                                                ASTM A707 standards (or comparable                            of Capital Goods Scheme (EPCGS)                  investigation are: (1) Metalfar Prodotti
                                                foreign specifications). The scope includes                   Provides a Countervailable Subsidy and           Industriali S.p.A. (Metalfar); and (2)
                                                                                                              Whether the EPCGS Used the Correct
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                                                any flanges produced to the above-referenced                                                                   Officine Ambrogio Melesi & C. S.r.l.
                                                ASTM standards as currently stated or as                      Denominator for the Benefit Calculation
                                                may be amended. The term ‘‘carbon steel’’                     of Respondents                                     1 See Finished Carbon Steel Flanges from Italy:
                                                under this scope is steel in which: (a) Iron               Comment 6: Whether to Apply Adverse                 Preliminary Determination of Sales at Less Than
                                                predominates, by weight, over each of the                     Facts Available (AFA) to Norma’s AUL             Fair Value and Postponement of Final
                                                other contained elements: (b) The carbon                      Sales Data                                       Determination, 82 FR 9711 (February 8, 2017)
                                                content is 2 percent or less, by weight; and               Comment 7: Whether to Apply AFA to                  (Preliminary Determination), and accompanying
                                                (c) none of the elements listed below exceeds                 RNG’s Unaffiliated Indian Suppliers of           Preliminary Decision Memorandum (PDM).
                                                the quantity, by weight, as indicated:                        Subject Merchandise                                2 See Preliminary Determination, 82 FR at 9713.




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Document Created: 2018-11-14 10:16:52
Document Modified: 2018-11-14 10:16:52
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
DatesEffective June 29, 2017.
ContactEmily Maloof or Davina Friedmann, AD/ CVD Operations, Office VI, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW., Washington, DC 20230; telephone: (202) 482-5649, or (202) 482-0698, respectively.
FR Citation82 FR 29479 

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