Federal Register, Volume 85 Issue 238 (Thursday, December 10, 2020)

[Federal Register Volume 85, Number 238 (Thursday, December 10, 2020)]
[Notices]
[Pages 79466-79468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-27137]

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DEPARTMENT OF COMMERCE

International Trade Administration

[C-533-872]

Finished Carbon Steel Flanges From India: Preliminary Results of
Countervailing Duty Administrative Review and Intent To Rescind, in
Part; 2018

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

SUMMARY: The Department of Commerce (Commerce) preliminarily determines
that Norma (India) Ltd. (Norma) and R.N. Gupta & Co. Ltd (RNG) received
countervailable subsidies during the period of review (POR), January 1,
2018 through December 31, 2018. In addition, we are announcing our
intent to rescind this review with respect to two companies. Interested
parties are invited to comment on these preliminary results.

DATES: Applicable December 10, 2020.

FOR FURTHER INFORMATION CONTACT: John McGowan or Tyler Weinhold, 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) 482-3019 or (202) 482-1121,
respectively.

SUPPLEMENTARY INFORMATION:

Background

On August 24, 2017, Commerce published in the Federal Register the
countervailing duty (CVD) order on finished carbon steel flanges (steel
flanges) from India.\1\ On August 2, 2019, Commerce published a notice
of opportunity to request an administrative review of the Order.\2\ On
September 3, 2019, Weldbend Corporation and Boltex Mfg. Co., L.P., (the
petitioners), requested a review of 37 producers and/or exporters of
subject merchandise.\3\ Further, from August 29, 2019 through September
3, 2019, Norma,\4\ RNG, Jai Auto Pvt. Ltd., and Bebitz Flanges Works
Private Limited, foreign producers or exporters of subject merchandise,
each requested a review of the Order with respect to themselves.\5\ On
October 7, 2019, Commerce published a notice of initiation of an
administrative review of the Order.\6\ Based on our examination of the
Customs and Border Protection (CBP) data, on November 6, 2019, we
selected Norma and RNG, the two largest producers and/or exporters, as
mandatory respondents.\7\
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\1\ See Finished Carbon Steel Flanges from India: Countervailing
Duty Order, 82 FR 40138 (August 24, 2017) (Order).
\2\ See Antidumping or Countervailing Duty Order, Finding, or
Suspended Investigation; Opportunity to Request Administrative
Review, 84 FR 37834 (August 2, 2019).
\3\ See Petitioners' Letter, ``Finished Carbon Steel Flanges
from India: Request for Administrative Review,'' dated September 3,
2019 (Petitioners' Review Request).
\4\ We note that Norma requested a review of itself and its
affiliates USK Export Private Limited (USK); Uma Shanker Khandelwal
and Co. (UMA); and Bansidhar Chiranjilal (BCL).
\5\ See Norma's Letter, ``Finished Carbon Steel Flanges from
India: Request for an Administrative Review,'' dated August 29,
2019; see also RNG's Letter, ``Finished Carbon Steel Flanges from
India: Request for Countervailing Duty Administrative Review,''
August 30, 2019; Jai Auto Pvt. Ltd.'s Letter, ``Request for Review
of Countervailing Duty Administrative Review of Finished Carbon
Steel Flanges from India,'' dated August 30, 2019; and Bebitz
Flanges Works Private Limited's Letter, ``Finished Carbon Steel
Flanges from India: Requests for Administrative Review,'' dated
September 3, 2019.
\6\ See Initiation of Antidumping and Countervailing Duty
Administrative Reviews, 84 FR 53411, 53421-53422 (October 7, 2019).
\7\ See Memorandum, ``Countervailing Duty Administrative Review
of Finished Carbon Steel Flanges from India: Respondent Selection,''
dated November 4, 2019.
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On April 24, 2020, Commerce tolled all deadlines in administrative
reviews by 50 days, thereby extending the deadline for these
preliminary results until June 22, 2020.\8\ Further, on June 19, 2020,
Commerce extended the time period for issuing these preliminary results
by 109 days, in accordance with section 751(a)(3)(A) of the Act, to
October 8, 2020.\9\ On July 21, 2020, Commerce again tolled all
deadlines in administrative reviews by 60 days, thereby extending the
deadline for these results until December 7, 2020.\10\ For a complete
description of the events that followed the initiation of this review,
see the Preliminary Decision Memorandum.\11\ A list of topics discussed
in the Preliminary Decision Memorandum is included at Appendix I 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 http://access.trade.gov. In addition, a complete version of the Preliminary
Decision Memorandum can be accessed directly at http://enforcement.trade.gov/frn/. The signed and electronic versions of the
Preliminary Decision Memorandum are identical in content.
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\8\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Administrative Reviews in Response to
Operational Adjustments Due to COVID-19,'' dated April 24, 2020.
\9\ See Memorandum, ``Finished Carbon Steel Flanges from India:
Extension of Deadline for Preliminary Results of Countervailing Duty
Administrative Review; 1/1/2018-12/31/2018,'' dated June 19, 2020.
\10\ See Memorandum, ``Tolling of Deadlines for Antidumping and
Countervailing Duty Administrative Reviews,'' dated July 21, 2020.
\11\ See Memorandum, ``Decision Memorandum for the Preliminary
Results of the Countervailing Duty Administrative Review of Finished
Carbon Steel Flanges from India,'' dated concurrently with, and
hereby adopted by, this notice (Preliminary Decision Memorandum).
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Scope of the Order

The merchandise covered by the Order is steel flanges. For a
complete description of the scope of the Order, see the Preliminary
Decision Memorandum.

[[Page 79467]]

Methodology

Commerce is conducting this review in accordance with section
751(a)(l)(A) of the Tariff Act of 1930, as amended (the Act). For each
of the subsidy programs found countervailable, we preliminarily
determine that there is a subsidy, i.e., a government-provided
financial contribution that gives rise to a benefit to the recipient,
and that the subsidy is specific.\12\ For a full description of the
methodology underlying our conclusions, see the accompanying
Preliminary Decision Memorandum.
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\12\ See sections 771(5)(B) and (D) of the Act regarding
financial contribution; section 771(5)(E) of the Act regarding
benefit; and section 771(5A) of the Act regarding specificity.
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Companies Not Selected for Individual Review

There are 31 companies for which a review was requested and not
rescinded, and which were not selected as mandatory respondents. The
statute and Commerce's regulations do not directly address the
establishment of rates to be applied to companies not selected for
individual examination where Commerce limits its examination in an
administrative review pursuant to section 777A(e)(2) of the Act.
However, Commerce normally determines the rates for non-selected
companies in reviews in a manner that is consistent with section
705(c)(5) of the Act, which provides the basis for calculating the all-
others rate in an investigation.
Section 705(c)(5)(A)(i) of the Act instructs Commerce, as a general
rule, to calculate an all-others rate equal to the weighted average of
the countervailable subsidy rates established for exporters and/or
producers individually examined, excluding any zero, de minimis, or
rates based entirely on facts available. In this review, none of the
rates for respondents were zero, de minimis, or based entirely on facts
available. For the companies for which a review was requested that were
not selected as mandatory company respondents, and for which Commerce
did not receive a timely request for withdrawal of review, and for
which Commerce is not finding to be cross-owned with the mandatory
company respondents, Commerce based the subsidy rate on a weighted-
average of the subsidy rates calculated for the two mandatory
respondents, Norma and RNG, using their publicly-ranged sales data for
exports of subject merchandise to the United States during the POR. For
further discussion, please see the All-Others Rate Calculation
Memorandum.\13\
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\13\ See Memorandum, ``Preliminary Results Calculation for the
`All-Others' Rate,'' dated concurrently with this notice (All-Others
Rate Calculation Memorandum).
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Intent To Rescind Administrative Review, in Part

On September 21, 2020, the petitioners stated that they had
inadvertently included in their request for review Bebitz U.S.A., Inc.,
a United States importer.\14\ Additionally, information on the record
demonstrates that Silbo Industries, Inc. is a U.S. importer.\15\
Because Commerce does not conduct reviews of U.S. importers, and
because the CBP demonstrate that neither company exported subject
merchandise to the United States during the POR,\16\ we intend to
rescind this review with respect to Bebitz U.S.A., Inc. and Silbo
Industries, Inc. For further details, see the Preliminary Decision
Memorandum.
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\14\ See Memorandum, ``Administrative Review of the
Countervailing Duty Order on Finished Carbon Steel Flanges from
India: Phone Call with Counsel to the Petitioners,'' dated September
23, 2020.
\15\ See Silbo Industries, Inc.'s Letter, ``Silbo's Request to
Rescind the Review: 2nd Administrative Review of the Countervailing
Duty Order on Finished Carbon Steel Flanges from India (C-533-
872),'' dated January 16, 2020.
\16\ See Memorandum, ``Finished Carbon Steel Flanges from India:
Release of U.S. Customs and Border Protection Import Data,'' dated
October 18, 2019.
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Preliminary Results of Review

In accordance with 19 CFR 351.221(b)(4)(i), we calculated
individual subsidy rates for Norma and RNG. For the period January 1,
2018 through December 31, 2018, we preliminarily determine that the
following net countervailable subsidy rates exist:

------------------------------------------------------------------------
Subsidy rate
Company (percent ad
valorem)
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Norma (India) Ltd \17\.................................. 5.61
R.N. Gupta & Co. Ltd.................................... 5.42
Companies Not Selected for Individual Examination (see 5.51
Appendix II)...........................................
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Assessment Rate
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\17\ In the investigation, Commerce found the following
companies to be cross-owned with Norma (India) Ltd.: USK Export
Private Limited (USK); Uma Shanker Khandelwal and Co. (UMA); and
Bansidhar Chiranjilal (BCL). See Preliminary Decision Memorandum at
7; this finding is unchanged in these preliminary results. This rate
applies to all cross-owned companies.
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Consistent with section 751(a)(2)(C) of the Act, upon issuance of
the final results, Commerce shall determine, and CBP shall assess, CVDs
on all appropriate entries covered by this review. We intend to issue
instructions to CBP 15 days after publication of the final results of
this review.

Cash Deposit Rate

Pursuant to section 751(a)(1) of the Act, Commerce intends to
instruct CBP to collect cash deposits of estimated CVDs in the amount
indicated above with regard to shipments of subject merchandise
entered, or withdrawn from warehouse, for consumption on or after the
date of publication of the final results of this review. For all non-
reviewed firms, we will instruct CBP to continue to collect cash
deposits of estimated CVDs at the most recent company-specific or all-
others rate applicable to the company, as appropriate. These cash
deposit instructions, when imposed, shall remain in effect until
further notice.

Disclosure and Public Comment

We will disclose to parties to this proceeding the calculations
performed in reaching the preliminary results within five days of the
date of publication of these preliminary results.\18\ Interested
parties may submit written comments (case briefs) within 30 days of
publication of the preliminary results and rebuttal comments (rebuttal
briefs) within seven days \19\ after the time limit for filing case
briefs.\20\ Pursuant to 19 CFR 351.309(d)(2), rebuttal briefs must be
limited to issues raised in the case briefs. Parties who submit
arguments are requested to submit with the argument: (1) A statement of
the issue; (2) a brief summary of the argument; and (3) a table of
authorities.\21\ Note that Commerce has temporarily modified certain of
its requirements for serving documents containing business proprietary
information, until further notice.\22\
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\18\ See 19 CFR 351.224(b).
\19\ See Temporary Rule Modifying AD/CVD Service Requirements
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July
10, 2020) (Temporary Rule).
\20\ See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1); see also 19
CFR 351.303 (for general filing requirements).
\21\ See 19 CFR 351.309(c)(2) and 351.309(d)(2).
\22\ See Temporary Rule.
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Interested parties who wish to request a hearing must submit a
written request to the Assistant Secretary for Enforcement and
Compliance using Enforcement and Compliance's ACCESS system within 30
days of the publication of this notice.\23\ Requests should contain:
(1) The party's name, address, and telephone number; (2) the

[[Page 79468]]

number of participants, whether any participant is a foreign national;
and (3) a list of the issues to be discussed. If a request for a
hearing is made, Commerce intends to hold the hearing at a time and
date to be determined.\24\ Issues addressed during the hearing will be
limited to those raised in the briefs.\25\ Parties should confirm by
telephone the date and time of the hearing two days before the
scheduled date.
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\23\ See 19 CFR 351.310(c).
\24\ See 19 CFR 351.310.
\25\ See 19 CFR 351.310(c).
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Parties are reminded that all briefs and hearing requests must be
filed electronically using ACCESS and received successfully in their
entirety by 5 p.m. Eastern Time on the due date.
Unless the deadline is extended pursuant to section 751(a)(3)(A) of
the Act, Commerce intends to issue the final results of this
administrative review, including the results of our analysis of the
issues raised by the parties in their comments, within 120 days after
publication of these preliminary results.
This administrative review and notice are in accordance with
sections 751(a)(1) and 777(i)(1) of the Act and 19 CFR 351.213.

Dated: December 3, 2020.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Intent to Rescind, in Part
IV. Scope of the Order
V. Period of Review
VI. Subsidies Valuation Information
VII. Benchmark Interest Rates and Discount Rates
VIII. Analysis of Programs
IX. Conclusion

Appendix II

Companies Not Selected for Individual Examination

1. Adinath International
2. Allena Group
3. Alloyed Steel
4. Bebitz Flanges Works Private Limited
5. C.D. Industries
6. CHW Forge
7. CHW Forge Pvt. Ltd.
8. Citizen Metal Depot
9. Corum Flange
10. DN Forge Industries
11. Echjay Forgings Limited
12. Falcon Valves and Flanges Private Limited
13. Heubach International
14. Hindon Forge Pvt. Ltd.
15. Jai Auto Pvt. Ltd.
16. Kinnari Steel Corporation
17. Mascot Metal Manufacturers
18. M F Rings and Bearing Races Ltd.
19. OM Exports
20. Punjab Steel Works (PSW)
21. Raaj Sagar Steel
22. Ravi Ratan Metal Industries
23. R. D. Forge
24. Rolex Fittings India Pvt. Ltd.
25. Rollwell Forge Pvt. Ltd.
26. SHM (ShinHeung Machinery)
27. Siddhagiri Metal & Tubes
28. Sizer India
29. Steel Shape India
30. Sudhir Forgings Pvt. Ltd.
31. Tirupati Forge

[FR Doc. 2020-27137 Filed 12-9-20; 8:45 am]
BILLING CODE 3510-DS-P