83 FR 13246 - Stainless Steel Flanges From India: Preliminary Affirmative Determination of Sales at Less Than Fair Value, Preliminary Affirmative Determination of Critical Circumstances, Postponement of Final Determination, and Extension of Provisional Measures

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 60 (March 28, 2018)

Page Range13246-13249
FR Document2018-06152

The Department of Commerce (Commerce) preliminarily determines that stainless steel flanges from India are being, or are likely to be, sold in the United States at less than fair value (LTFV) during the period of investigation (POI) July 1, 2016, through June 30, 2017.

Federal Register, Volume 83 Issue 60 (Wednesday, March 28, 2018)
[Federal Register Volume 83, Number 60 (Wednesday, March 28, 2018)]
[Notices]
[Pages 13246-13249]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-06152]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-877]


Stainless Steel Flanges From India: Preliminary Affirmative 
Determination of Sales at Less Than Fair Value, Preliminary Affirmative 
Determination of Critical Circumstances, Postponement of Final 
Determination, and Extension of Provisional Measures

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that stainless steel flanges from India are being, or are likely to be, 
sold in the United States at less than fair value (LTFV) during the 
period of investigation (POI) July 1, 2016, through June 30, 2017.

DATES: Applicable March 28, 2018.

FOR FURTHER INFORMATION CONTACT: Courtney Canales, Julia Hancock, or 
Jerry Huang, AD/CVD Operations, Office V, Enforcement and Compliance, 
International Trade Administration, U.S. Department of Commerce, 1401 
Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-
4997, (202) 482-1394, or (202) 482-4047, respectively.

SUPPLEMENTARY INFORMATION: 

Background

    This preliminary determination is made in accordance with section 
733(b) of the Tariff Act of 1930, as amended (the Act). Commerce 
published the notice of initiation of this investigation on September 
11, 2017.\1\ On January 9, 2018, Commerce postponed the preliminary 
determination of this investigation and Commerce also exercised its 
discretion to toll all deadlines affected by the closure of the Federal 
Government from January 20 through 22, 2018.\2\ Because the new 
deadline falls on a non-business day (i.e., the weekend), pursuant to 
Commerce's practice, the deadline will become the next business day. 
The revised deadline is now March 19, 2018.
---------------------------------------------------------------------------

    \1\ See Stainless Steel Flanges from India and the People's 
Republic of China: Initiation of Less-Than-Fair-Value 
Investigations, 82 FR 42649 (September 11, 2017) (Initiation 
Notice).
    \2\ See Stainless Steel Flanges from India and the People's 
Republic of China: Postponement of Preliminary Determinations in the 
Less-Than-Fair-Value Investigations, 83 FR 1025 (January 9, 2018); 
see also Memorandum for The Record from Christian Marsh, Deputy 
Assistant Secretary for Enforcement and Compliance, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance, ``Deadlines Affected by the Shutdown of 
the Federal Government'' (Tolling Memorandum), dated January 23, 
2018. All deadlines in this segment of the proceeding have been 
extended by three days.
---------------------------------------------------------------------------

    For a complete description of the events that followed the 
initiation of this investigation, see the Preliminary Decision 
Memorandum.\3\ A list of topics included in the Preliminary Decision 
Memorandum is included as Appendix II to this notice. The Preliminary 
Decision Memorandum is a public document and is on file electronically 
via Enforcement and Compliance's Antidumping and Countervailing Duty 
Centralized Electronic Service System (ACCESS). ACCESS is available to 
registered users at https://access.trade.gov, and to all parties in the 
Central Records Unit, room B8024 of the main Department of Commerce 
building. In addition, a complete version of the Preliminary Decision 
Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and the electronic versions of the Preliminary 
Decision Memorandum are identical in content.
---------------------------------------------------------------------------

    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Stainless 
Steel Flanges from India'' dated concurrently with, and hereby 
adopted by, this notice (Preliminary Decision Memorandum).
---------------------------------------------------------------------------

Scope of the Investigation

    The product covered by this investigation is stainless steel 
flanges from India. For a complete description of the scope of this 
investigation, see Appendix I.

Scope Comments

    In accordance with the preamble to Commerce's regulations,\4\ the 
Initiation Notice set aside a period of time for parties to raise 
issues regarding product coverage (i.e., scope).\5\ No interested party 
submitted timely comments on the scope of the investigation as it 
appeared in the Initiation Notice. Commerce is not preliminarily 
modifying the scope language as it appeared in the Initiation Notice.
---------------------------------------------------------------------------

    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice.
---------------------------------------------------------------------------

Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Commerce has calculated export prices in 
accordance with section 772(a) of the Act. Constructed export prices 
also have been calculated in accordance with section 772(b) of the Act. 
Normal value (NV) is calculated in accordance with section 773 of the 
Act. In addition,

[[Page 13247]]

Commerce has preliminarily relied on partial adverse facts available, 
pursuant to sections 776(a) and (b) of the Act, for Chandan Steel 
Limited (Chandan). Furthermore, pursuant to section 776(a) and (b) of 
the Act, Commerce has preliminarily relied upon total adverse facts 
available for the Echjay single entity \6\ and the Bebitz/Viraj single 
entity.\7\ For a full description of the methodology underlying the 
preliminary determination, see the Preliminary Decision Memorandum.
---------------------------------------------------------------------------

    \6\ Commerce preliminarily determines, pursuant to section 
771(33)(A) and (F) of the Act, that Echjay Forgings Pvt Limited, 
Echjay Industries Private Limited, Echjay Forging Industries Private 
Limited, and Spire Industries Pvt. Limited are affiliated, and, 
pursuant to 19 CFR 351.401(f), that these companies should be 
treated as a single entity (Echjay single entity). See Preliminary 
Decision Memorandum.
    \7\ Commerce preliminarily determines, pursuant to section 
771(33)(A) and (F) of the Act, that Bebitz Flanges Works Private 
Limited, Viraj Profiles Limited (Viraj), Flanschen werk Bebitz GmbH 
(FBG), Bebitz USA, Inc. (Bebitz USA), and Viraj USA, Inc. (Viraj 
USA) are affiliated, and, pursuant to 19 CFR 351.401(f), that these 
companies should be treated as a single entity (Bebitz/Viraj single 
entity). See Preliminary Decision Memorandum.
---------------------------------------------------------------------------

Preliminary Affirmative Determination of Critical Circumstances

    In accordance with section 733(e) of the Act and 19 CFR 351.206, 
Commerce preliminarily finds that critical circumstances exist for 
Chandan Steel, the Bebitz/Viraj single entity, and the Echjay single 
entity, and all other producers and exporters. For a full description 
of the methodology and results of Commerce's critical circumstances 
analysis, see the Preliminary Decision Memorandum.

All-Others Rate

    Sections 733(d)(1)(A)(ii) and 735(c)(5)(A) of the Act provide that 
in the preliminary determination Commerce shall determine an estimated 
all-others rate for all exporters and producers not individually 
examined. This rate shall be an amount equal to the weighted average of 
the estimated weighted-average dumping margins established for 
exporters and producers individually investigated, excluding any zero 
and de minimis margins, and any margins determined entirely under 
section 776 of the Act.
    In this investigation, Commerce preliminarily assigned a rate based 
entirely on adverse facts available to the Bebitz/Viraj single entity 
and the Echjay single entity. Therefore, the only rate that is not 
zero, de minimis, or based entirely on facts otherwise available is the 
rate calculated for Chandan. Consequently, the margin calculated for 
Chandan is assigned as the rate for all other producers and exporters.

Preliminary Determination

    Commerce preliminarily determines that the following estimated 
weighted-average dumping margins exist:

------------------------------------------------------------------------
                                             Estimated     Cash deposit
                                             weighted-    rate (adjusted
            Exporter/producer                 average       for subsidy
                                          dumping margin    offset(s))
                                             (percent)       (percent)
------------------------------------------------------------------------
Chandan Steel Limited...................           18.10       \8\ 13.15
Echjay Single Entity \9\................       ** 145.25     \10\ 145.25
Bebitz/Viraj Single Entity \11\.........       ** 145.25     \12\ 145.25
All-Others..............................           18.10           13.15
------------------------------------------------------------------------
** (The AFA rate. See the Preliminary Decision Memorandum for how this
  rate was selected.)

Suspension of Liquidation
---------------------------------------------------------------------------

    \8\ See Memorandum, ``Calculations Performed for Chandan Steel 
Limited for the Preliminary Determination in the Antidumping Duty 
Investigation of Stainless Steel Flanges from India,'' dated 
concurrently with this notice (Chandan Calculation Memorandum).
    \9\ Commerce preliminarily determines that Echjay Forgings Pvt 
Limited, Echjay Industries Private Limited, Echjay Forging 
Industries Private Limited, and Spire Industries Pvt. Limited are a 
single entity. See Preliminary Decision Memorandum.
    \10\ See Chandan Calculation Memorandum.
    \11\ Commerce preliminarily determines that Bebitz Flanges Works 
Private Limited, Viraj Profiles Limited (Viraj), Flanschen werk 
Bebitz GmbH (FBG), Bebitz USA, Inc. (Bebitz USA), and Viraj USA, 
Inc. (Viraj USA) are a single entity. See Preliminary Decision 
Memorandum.
    \12\ See Chandan Calculation Memorandum.
---------------------------------------------------------------------------

    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of entries of subject merchandise, as described in Appendix I, entered, 
or withdrawn from warehouse, for consumption on or after the date of 
publication of this notice in the Federal Register. Further, pursuant 
to section 733(d)(1)(B) of the Act and 19 CFR 351.205(d), Commerce will 
instruct CBP to require a cash deposit equal to the estimated weighted-
average dumping margin or the estimated all-others rate, as follows: 
(1) The cash deposit rate for the respondents listed above will be 
equal to the company-specific estimated weighted-average dumping 
margins determined in this preliminary determination; (2) if the 
exporter is not a respondent identified above, but the producer is, 
then the cash deposit rate will be equal to the company-specific 
estimated weighted-average dumping margin established for that producer 
of the subject merchandise, except as explained below; and (3) the cash 
deposit rate for all other producers and exporters will be equal to the 
all-others estimated weighted-average dumping margin.
    Section 733(e)(2) of the Act provides that, given an affirmative 
determination of critical circumstances, any suspension of liquidation 
shall apply to unliquidated entries of subject merchandise entered, or 
withdrawn from warehouse, for consumption on or after the later of (a) 
the date which is 90 days before the date on which the suspension of 
liquidation was first ordered, or (b) the date on which notice of 
initiation of the investigation was published. As noted above, Commerce 
preliminarily finds that critical circumstances exist for imports of 
subject merchandise produced or exported by Chandan, Bebitz/Viraj 
single entity, Echjay single entity, and all-others. In accordance with 
section 733(e)(2)(A) of the Act, the suspension of liquidation shall 
apply to unliquidated entries of shipments of subject merchandise from 
the producer(s) or exporter(s) identified in this paragraph that were 
entered, or withdrawn from warehouse, for consumption on or after the 
date which is 90 days before the publication of this notice.
    Commerce normally adjusts cash deposits for estimated antidumping 
duties by the amount of export subsidies countervailed in a companion 
countervailing duty (CVD) proceeding, when CVD provisional measures are 
in effect. Accordingly, where Commerce preliminarily made an 
affirmative

[[Page 13248]]

determination for countervailable export subsidies, Commerce has offset 
the estimated weighted-average dumping margin by the appropriate CVD 
rate. Any such adjusted cash deposit rate may be found in the 
Preliminary Determination section above.
    Should provisional measures in the companion CVD investigation 
expire prior to the expiration of provisional measures in this LTFV 
investigation, Commerce will direct CBP to begin collecting estimated 
antidumping duty cash deposits unadjusted for countervailed export 
subsidies at the time that the provisional CVD measures expire.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose its calculations and analysis 
performed to interested parties in this preliminary determination 
within five days of any public announcement or, if there is no public 
announcement, within five days of the date of publication of this 
notice in accordance with 19 CFR 351.224(b).

Verification

    As provided in section 782(i)(1) of the Act, Commerce intends to 
verify the information relied upon for Chandan in making its final 
determination. However, because the Bebitz/Viraj single entity and the 
Echjay single entity did not provide information requested by Commerce, 
and Commerce preliminarily determines that these examined respondents 
to have been uncooperative within the meaing of section 776(b) of the 
Act, we will not conduct verification of the Bebitz/Viraj single entity 
and the Echjay single entity.

Public Comment

    Case briefs or other written comments on Chandan may be submitted 
to the Assistant Secretary for Enforcement and Compliance no later than 
seven days after the date on which the last verification report on 
Chandan is issued in this investigation. For issues related to the 
Bebitz/Viraj single entity and the Echjay single entity, because we are 
not verifying these companies, case briefs or other written comments 
may be submitted to the Assistant Secretary for Enforcement and 
Compliance no later than 50 days after the date of publication of the 
preliminary determination, unless Commerce alters the time limit. 
Rebuttal briefs, limited to issues raised in case briefs, may be 
submitted no later than five days after the deadline date for case 
briefs.\13\ Pursuant to 19 CFR 351.309(c)(2) and (d)(2), parties who 
submit case briefs or rebuttal briefs in this investigation are 
encouraged to submit with each argument: (1) A statement of the issue; 
(2) a brief summary of the argument; and (3) a table of authorities.
---------------------------------------------------------------------------

    \13\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
---------------------------------------------------------------------------

    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

Postponement of Final Determination and Extension of Provisional 
Measures

    Section 735(a)(2) of the Act provides that a final determination 
may be postponed until not later than 135 days after the date of the 
publication of the preliminary determination if, in the event of an 
affirmative preliminary determination, a request for such postponement 
is made by exporters who account for a significant proportion of 
exports of the subject merchandise, or in the event of a negative 
preliminary determination, a request for such postponement is made by 
the petitioner. Section 351.210(e)(2) of Commerce's regulations 
requires that a request by exporters for postponement of the final 
determination be accompanied by a request for extension of provisional 
measures from a four-month period to a period not more than six months 
in duration.
    On February 12 and 21, 2018, the Bebitz/Viraj single entity and the 
Echjay single entity requested that Commerce postpone the final 
determination and that provisional measures be extended to a period not 
to exceed six months. In accordance with section 735(a)(2)(A) of the 
Act and 19 CFR 351.210(b)(2)(ii), because: (1) The preliminary 
determination is affirmative; (2) the requesting exporter(s) account(s) 
for a significant proportion of exports of the subject merchandise; and 
(3) no compelling reasons for denial exist, Commerce is postponing the 
final determination and extending the provisional measures from a four-
month period to a period not greater than six months. Accordingly, 
Commerce will make its final determination no later than 135 days after 
the date of publication of this preliminary determination.

International Trade Commission Notification

    In accordance with section 733(f) of the Act, Commerce will notify 
the International Trade Commission (ITC) of its preliminary 
determination. If the final determination is affirmative, the ITC will 
determine before the later of 120 days after the date of this 
preliminary determination or 45 days after the final determination 
whether these imports are materially injuring, or threaten material 
injury to, the U.S. industry.

Notification to Interested Parties

    This determination is issued and published in accordance with 
sections 733(f) and 777(i)(1) of the Act and 19 CFR 351.205(c).

    Dated: March 19, 2018.
Gary Taverman,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations, performing the non-exclusive functions and duties of the 
Assistant Secretary for Enforcement and Compliance.

Appendix I

Scope of the Investigation

    The products covered by this investigation are certain forged 
stainless steel flanges, whether unfinished, semi-finished, or 
finished (certain forged stainless steel flanges). Certain forged 
stainless steel flanges are generally manufactured to, but not 
limited to, the material specification of ASTM/ASME A/SA182 or 
comparable domestic or foreign specifications. Certain forged 
stainless steel flanges are made in various grades such as, but not 
limited to, 304, 304L, 316, and 316L (or combinations thereof). The 
term ``stainless steel'' used in this scope refers to an alloy steel 
containing, by actual weight, 1.2 percent or less of carbon and 10.5 
percent or more of chromium, with or without other elements.
    Unfinished stainless steel flanges possess the approximate shape 
of finished stainless steel flanges and have not yet been machined 
to final specification after the initial forging or like operations. 
These machining processes may include, but are not limited to, 
boring, facing, spot facing, drilling, tapering, threading, 
beveling, heating, or compressing. Semi-finished stainless steel 
flanges are unfinished stainless steel flanges that have undergone 
some machining processes.

[[Page 13249]]

    The scope includes six general types of flanges. They are: (1) 
Weld neck, generally used in butt-weld line connection; (2) 
threaded, generally used for threaded line connections; (3) slip-on, 
generally used to slide over pipe; (4) lap joint, generally used 
with stub-ends/butt-weld line connections; (5) socket weld, 
generally used to fit pipe into a machine recession; and (6) blind, 
generally used to seal off a line. The sizes and descriptions of the 
flanges within the scope include all pressure classes of ASME B16.5 
and range from one-half inch to twenty-four inches nominal pipe 
size. Specifically excluded from the scope of this investigation are 
cast stainless steel flanges. Cast stainless steel flanges generally 
are manufactured to specification ASTM A351.
    The country of origin for certain forged stainless steel 
flanges, whether unfinished, semi-finished, or finished is the 
country where the flange was forged. Subject merchandise includes 
stainless steel flanges as defined above that have been further 
processed in a third country. The processing includes, but is not 
limited to, boring, facing, spot facing, drilling, tapering, 
threading, beveling, heating, or compressing, and/or any other 
processing that would not otherwise remove the merchandise from the 
scope of the investigation if performed in the country of 
manufacture of the stainless steel flanges.
    Merchandise subject to the investigation is typically imported 
under headings 7307.21.1000 and 7307.21.5000 of the Harmonized 
Tariff Schedule of the United States (HTSUS). While HTSUS 
subheadings and ASTM specifications are provided for convenience and 
customs purposes, the written description of the scope is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Scope Comments
V. Selection of Voluntary Respondent
VI. Affiliation and Collapsing
    A. Bebitz/Viraj Single Entity
    B. Echjay Single Entity
VII. Application of Facts Available and Use of Adverse Inference
    A. Application of Facts Available to Bebitz/Viraj Single Entity
    B. Application of Facts Available to Echjay Single Entity
    C. Selection and Corroboration of the AFA Rate
VIII. Discussion of the Methodology
    A. Determination of the Comparison Method
    B. Results of the Differential Pricing Analysis
IX. Date of Sale
X. Product Comparisons
XI. Export Price and Constructed Export Price
XII. Normal Value
    A. Home Market Viability
    B. Level of Trade
    C. Cost of Production (COP) Analysis
    1. Calculation of COP
    2. Test of Comparison Market Sales Prices
    3. Results of the COP Test
    D. Calculation of NV Based on Comparison Market Prices
XIII. Critical Circumstances
XIV. Currency Conversion
XV. Conclusion

[FR Doc. 2018-06152 Filed 3-27-18; 8:45 am]
 BILLING CODE 3510-DS-P


Current View
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
DatesApplicable March 28, 2018.
ContactCourtney Canales, Julia Hancock, or Jerry Huang, AD/CVD Operations, Office V, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482- 4997, (202) 482-1394, or (202) 482-4047, respectively.
FR Citation83 FR 13246 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR