83 FR 44567 - Cast Iron Soil Pipe From the People's Republic of China: Preliminary Affirmative Determination of Sales at Less Than Fair Value and Postponement of Final Determination

DEPARTMENT OF COMMERCE
International Trade Administration

Federal Register Volume 83, Issue 170 (August 31, 2018)

Page Range44567-44570
FR Document2018-18968

The Department of Commerce (Commerce) preliminarily determines that cast iron soil pipe from the People's Republic of China (China) was sold to the United States at less than fair value (LTFV) during the period of investigation (POI), July 1, 2017, through December 31, 2017.

Federal Register, Volume 83 Issue 170 (Friday, August 31, 2018)
[Federal Register Volume 83, Number 170 (Friday, August 31, 2018)]
[Notices]
[Pages 44567-44570]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18968]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-570-079]


Cast Iron Soil Pipe From the People's Republic of China: 
Preliminary Affirmative Determination of Sales at Less Than Fair Value 
and Postponement of Final Determination

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines 
that cast iron soil pipe from the People's Republic of China (China) 
was sold to the United States at less than fair value (LTFV) during the 
period of investigation (POI), July 1, 2017, through December 31, 2017.

DATES: Applicable August 31, 2018.

FOR FURTHER INFORMATION CONTACT: Javier Barrientos, 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) 482-2243.

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 February 
23, 2018.\1\ On June 22,

[[Page 44568]]

2018, Commerce postponed the preliminary determination of this 
investigation and the revised deadline is now August 24, 2018.\2\
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    \1\ See Cast Iron Soil Pipe from the People's Republic of China: 
Initiation of Less-Than-Fair Value Investigation, 83 FR 8053 
(February 23, 2018) (Initiation Notice).
    \2\ See Cast Iron Soil Pipe from People's Republic of China: 
Postponement of Preliminary Determination in the Less-Than-Fair-
Value Investigation, 83 FR 29098 (June 22, 2018).
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    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.
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    \3\ See Memorandum, ``Decision Memorandum for the Preliminary 
Determination in the Less-Than-Fair-Value Investigation of Cast Iron 
Soil Pipe from the People's Republic of China,'' dated concurrently 
with, and hereby adopted by, this notice (Preliminary Decision 
Memorandum).
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Scope of the Investigation

    The product covered by this investigation is cast iron soil pipe 
from China. 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 (scope).\5\ For a summary of the 
product coverage comments and rebuttal responses submitted to the 
record for this investigation, and accompanying discussion and analysis 
of all comments timely received, see the Preliminary Scope 
Memorandum.\6\ Commerce is not preliminarily modifying the scope 
language as it appeared in the Initiation Notice. See the scope in 
Appendix I to this notice.
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    \4\ See Antidumping Duties; Countervailing Duties, Final Rule, 
62 FR 27296, 27323 (May 19, 1997).
    \5\ See Initiation Notice, 83 FR at 8054.
    \6\ See Commerce Memorandum, ``Cast Iron Soil Pipe from People's 
Republic of China: Preliminary Scope Comment Decision Memorandum,'' 
dated concurrently with this memorandum (Preliminary Scope 
Memorandum).
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Methodology

    Commerce is conducting this investigation in accordance with 
section 731 of the Act. Export price was calculated in accordance with 
sections 772(a) of the Act. Because China is a non-market economy 
within the meaning of section 771(18) of the Act, normal value was 
calculated in accordance with section 773(c) of the Act. Furthermore, 
pursuant to section 776(a) and (b) of the Act, we have preliminarily 
relied upon facts otherwise available, with adverse inferences, for 
Sibo International Ltd., and the China-wide entity. For a full 
description of the methodology underlying Commerce's preliminary 
determination, see the Preliminary Decision Memorandum.

Combination Rates

    In the Initiation Notice,\7\ Commerce stated that it would 
calculate producer/exporter combination rates for the respondents that 
are eligible for a separate rate in this investigation. Policy Bulletin 
05.1 describes this practice.\8\
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    \7\ See Initiation Notice, 83 FR at 8056-8057.
    \8\ See Enforcement and Compliance's Policy Bulletin No. 05.1, 
regarding, ``Separate-Rates Practice and Application of Combination 
Rates in Antidumping Investigations involving Non-Market Economy 
Countries,'' (April 5, 2005) (Policy Bulletin 05.1), available on 
Commerce's website at http://enforcement.trade.gov/policy/bull05-1.pdf.
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Preliminary Determination

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

------------------------------------------------------------------------
                                                             Estimated
                                                             weighted-
                                                              average
            Producer                     Exporter         dumping margin
                                                          & cash deposit
                                                          rate (percent)
                                                                \9\
------------------------------------------------------------------------
HengTong Casting...............  HengTong Casting.......          302.61
Wu'An Yongtian Casting Co., Ltd  Dalian Lino F.T.Z. Co.,          302.61
                                  Ltd.
Yangcheng County Huawang         Dalian Lino F.T.Z. Co.,          302.61
 Universal Spun Cast Pipe         Ltd.
 Foundry.
Qinshui Shunshida Casting Co.,   Dalian Metal I/E Co.,            302.61
 Ltd.                             Ltd.
Wu'an Yongtian Casting Co., Ltd  Dalian Metal I/E Co.,            302.61
                                  Ltd.
Zezhou Golden Autumn Foundry     Dalian Metal I/E Co.,            302.61
 Co., Ltd.                        Ltd.
Qinshui Shunshida Casting Co.,   Dinggin Hardware                 302.61
 Ltd.                             (Dalian) Co., Ltd.
Wu'an Kerui xin Machinery        Dinggin Hardware                 302.61
 Manufacturing Co., Ltd.          (Dalian) Co., Ltd.
Wu'an Yongtian Casting Co., Ltd  Dinggin Hardware                 302.61
                                  (Dalian) Co., Ltd.
Wuan City Feixiang Metal         Dinggin Hardware                 302.61
 Product Co., Ltd.                (Dalian) Co., Ltd.
DingXiang County YuTai Casting-  Hebei Metals &                   302.61
 Forging Co., Ltd.                Engineering Products
                                  Trading Co., Ltd.
Qinshui Shunshida Casting Co.,   Hebei Metals &                   302.61
 Ltd.                             Engineering Products
                                  Trading Co., Ltd.
Qinshui Shunshida Casting Co.,   Kingway Pipe Co., Ltd..          302.61
 Ltd.
Zezhou Golden Autumn Foundry     Kingway Pipe Co., Ltd..          302.61
 Co., Ltd.
Qinshui Shunshida Casting Co.,   Qinshui Shunshida                302.61
 Ltd.                             Casting Co., Ltd.
Qinshui Shunshida Casting Co.,   Shanxi Chen Xin Da               302.61
 Ltd.                             Castings & Forgings
                                  Co., Ltd.
Shanxi Xuanshi Industrial Group  Shanxi Xuanshi                   302.61
 Co., Ltd.                        Industrial Group Co.,
                                  Ltd.
Qinshui Shunshida Casting Co.,   Shanxi Zhongrui Tianyue          302.61
 Ltd.                             Trading Co., Ltd.
Qinshui Shunshida Casting Co.,   Terrifour (Dalian)               302.61
 Ltd.                             Trading Co., Ltd.
Shanxi Chengda Special Forging   Terrifour (Dalian)               302.61
 Co., Ltd.                        Trading Co., Ltd.
Wuan City Feixiang Metal         Wuan City Feixiang               302.61
 Product Co., Ltd.                Metal Product Co., Ltd.
Zezhou Golden Autumn Foundry     Zezhou Golden Autumn             302.61
 Co., Ltd.                        Foundry Co., Ltd.
------------------------------------------------------------------------
                    CHINA-WIDE ENTITY                             302.61
------------------------------------------------------------------------


[[Page 44569]]

Suspension of Liquidation
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    \9\ For cash deposit purposes, we normally adjust for export 
subsidies found in companion CVD proceedings. However, we 
preliminary found no export subsidies in the companion CVD 
proceeding. See PDM at X.
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    In accordance with section 733(d)(2) of the Act, Commerce will 
direct U.S. Customs and Border Protection (CBP) to suspend liquidation 
of subject merchandise as described in the scope of the investigation 
section entered, or withdrawn from warehouse, for consumption on or 
after the date of publication of this notice in the Federal Register, 
as discussed below. 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 weighted-average amount by which normal value 
exceeds U.S. price, as indicated in the chart above as follows: (1) For 
the producer/exporter combinations listed in the table above, the cash 
deposit rate is equal to the estimated weighted-average dumping margin 
listed for that combination in the table; (2) for all combinations of 
Chinese producers/exporters of merchandise under consideration that 
have not established eligibility for their own separate rates, the cash 
deposit rate will be equal to the estimated weighted-average dumping 
margin established for the China-wide entity; and (3) for all third-
county exporters of merchandise under consideration not listed in the 
table above, the cash deposit rate is the cash deposit rate applicable 
to the Chinese producer/exporter combination (or the China-wide entity) 
that supplied that third-country exporter.
    To determine the cash deposit rate, Commerce normally adjusts the 
estimated weighted-average dumping margin by the amount of domestic 
subsidy pass-through and export subsidies determined in a companion 
countervailing duty (CVD) proceeding when CVD provisional measures are 
in effect. Accordingly, where Commerce makes a preliminary affirmative 
determination for domestic subsidy pass-through or export subsidies, 
Commerce offsets the calculated estimated weighted-average dumping 
margin by the appropriate rate(s). In this case, we have not made a 
preliminary affirmative determination for domestic subsidy pass-through 
or export subsidies. Therefore, we are not adjusting the estimated 
weighted-average dumping margin for these subsidies.
    These suspension of liquidation instructions will remain in effect 
until further notice.

Disclosure

    Commerce intends to disclose to interested parties the calculations 
performed in connection with this preliminary determination within five 
days of its 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 information relied upon in making its final determination.

Public Comment

    Case briefs or other written comments may be submitted to the 
Assistant Secretary for Enforcement and Compliance no later than seven 
days after the date on which the last final verification report is 
issued in this investigation. Rebuttal briefs, limited to issues raised 
in case briefs, may be submitted no later than five days after the 
deadline date for case briefs.\10\ Pursuant to 19 CFR 351.309(c)(2) and 
(d)(2), parties who submit case briefs or rebuttal briefs in this 
investigation are encouraged to submit with each argument: (1) A 
statement of the issue; (2) a brief summary of the argument; and (3) a 
table of authorities.
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    \10\ See 19 CFR 351.309; see also 19 CFR 351.303 (for general 
filing requirements).
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    Pursuant to 19 CFR 351.310(c), interested parties who wish to 
request a hearing, limited to issues raised in the case and rebuttal 
briefs, must submit a written request to the Assistant Secretary for 
Enforcement and Compliance, U.S. Department of Commerce, within 30 days 
after the date of publication of this notice. Requests should contain 
the party's name, address, and telephone number, the number of 
participants, whether any participant is a foreign national, and a list 
of the issues to be discussed. If a request for a hearing is made, 
Commerce intends to hold the hearing at the U.S. Department of 
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230, at a time 
and date to be determined. Parties should confirm by telephone the 
date, time, and location of the hearing two days before the scheduled 
date.

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. Pursuant to 19 CFR 351.210(e)(2), Commerce requires 
that requests by respondents for postponement of a final antidumping 
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 August 2, 2018, pursuant to 19 CFR 351.210 (e), HengTong 
requested that Commerce postpone the final determination and that 
provisional measures be extended to a period not to exceed six 
months.\11\ 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 accounts 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's 
final determination will publish no later than 135 days after the 
publication of this preliminary determination notice.
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    \11\ See HengTong Letter, ``Postponement of Final Determination 
and Extension of Provisional Measures Request,'' dated August 2, 
2018.
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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 of sales at LTFV. 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 imports of the subject merchandise 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).


[[Page 44570]]


    Dated: August 24, 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 merchandise covered by this investigation is cast iron soil 
pipe, whether finished or unfinished, regardless of industry or 
proprietary specifications, and regardless of wall thickness, 
length, diameter, surface finish, end finish, or stenciling. The 
scope of this investigation includes, but is not limited to, both 
hubless and hub and spigot cast iron soil pipe. Cast iron soil pipe 
is nonmalleable iron pipe of various designs and sizes. Cast iron 
soil pipe is generally distinguished from other types of 
nonmalleable cast iron pipe by the manner in which it is connected 
to cast iron soil pipe fittings.
    Cast iron soil pipe is classified into two major types--hubless 
and hub and spigot. Hubless cast iron soil pipe is manufactured 
without a hub, generally in compliance with Cast Iron Soil Pipe 
Institute (CISPI) specification 301 and/or American Society for 
Testing and Materials (ASTM) specification A888, including any 
revisions to those specifications. Hub and spigot pipe has one or 
more hubs into which the spigot (plain end) of a fitting is 
inserted. All pipe meeting the physical description set forth above 
is covered by the scope of this investigation, whether or not 
produced according to a particular standard.
    The subject imports are currently classified in subheading 
7303.00.0030 of the Harmonized Tariff Schedule of the United States 
(HTSUS): Cast iron soil pipe. The HTSUS subheading and 
specifications are provided for convenience and customs purposes 
only; the written description of the scope of this investigation is 
dispositive.

Appendix II

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Period of Investigation
IV. Postponement of Final Determination and Extension of Provisional 
Measures
V. Scope Comments
VI. Scope of the Investigation
VII. Discussion of the Methodology
    A. Non-Market Economy Country
    B. Surrogate Country and Surrogate Value Comments
    C. Separate Rates
    D. China-Wide Entity
    E. Application of Facts Available and Adverse Inferences
    F. Date of Sale
    G. Comparisons to Fair Value
    H. Export Price
    I. Value-Added Tax (VAT)
    J. Normal Value
    K. Factor Valuation Methodology
VIII. Currency Conversion
IX. Adjustment Under Section 777(A)(F) of the Act
X. Adjustment for Countervailable Export Subsidies
XI. Verification
XII. Conclusion

[FR Doc. 2018-18968 Filed 8-30-18; 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 August 31, 2018.
ContactJavier Barrientos, 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) 482-2243.
FR Citation83 FR 44567 

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