[Federal Register Volume 86, Number 170 (Tuesday, September 7, 2021)]
[Notices]
[Pages 50032-50034]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-19189]


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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; 2019

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, 2019, through December 31, 2019. Interested parties are 
invited to comment on these preliminary results.

DATES: Applicable September 7, 2021.

FOR FURTHER INFORMATION CONTACT: Moses Song or Natasia Harrison, 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) 482-7885 or (202) 482-1240, 
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 4, 2020, Commerce published a notice 
of opportunity to request an administrative review of the Order.\2\ On 
August 31, 2020, Weldbend Corporation and Boltex Mfg. Co., L.P. (the 
petitioners), requested a review of 38 producers and/or exporters of 
subject merchandise.\3\ Further, between August 27, 2020, and August 
31, 2020, Norma,\4\ RNG, Bebitz Flanges Works Private Limited, Munish 
Forge Private Limited, Balkrishna Steel Forge Pvt. Ltd., Jai Auto Pvt. 
Ltd., and Aditya Forge Limited, foreign producers or exporters of 
subject merchandise, each requested a review of the Order with respect 
to themselves.\5\ On October 6, 2020, 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 20, 2020, 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, 85 FR 47167 (August 4, 2020).
    \3\ See Petitioners' Letter, ``Finished Carbon Steel Flanges 
from India: Request for Administrative Review,'' dated August 31, 
2020.
    \4\ We note that Norma requested a review of itself and its 
affiliates USK Export Private Limited; Uma Shanker Khandelwal and 
Co.; and Bansidhar Chiranjilal.
    \5\ See Norma's Letter, ``Finished Carbon Steel Flanges from 
India: Request for entry of appearance in the Countervailing Duty 
Administrative Review for Norma (India) Limited, USK Export Private 
Limited, Umashanker Khandelwal and Co. and Bansidhar Chiranjilal.,'' 
dated August 27, 2020; see also RNG's Letter, ``Finished Carbon 
Steel Flanges from India: Request for Countervailing Duty 
Administrative Review,'' August 28, 2020; Bebitz Flanges Works 
Private Limited's Letter, ``Finished Carbon Steel Flanges from 
India: Requests for Administrative Review,'' dated August 28, 2020; 
Munish Forge Private Limited's Letter, ``Finished Carbon Steel 
Flanges from India: Request for Counter Vailing Duty Administrative 
Review,'' dated August 27, 2020; Balkrishna Steel Forge Pvt. Ltd.'s 
Letter, ``Carbon Steel Flanges from India, Antidumping & 
Countervailing Duty,'' dated August 31, 2020; Jai Auto Pvt. Ltd.'s 
Letter, ``Request for review of Countervailing Duty Administrative 
Review of Finished Carbon Steel Flanges from India,'' dated August 
31, 2020; and Aditya Forge Limited's Letter, ``Request for review of 
Countervailing Duty Administrative Review of Finished Carbon steel 
Flanges from India,'' dated August 31, 2020.
    \6\ See Initiation of Antidumping and Countervailing Duty 
Administrative Reviews, 85 FR 63081, 63092-63093 (October 6, 2020).
    \7\ See Memorandum, ``Countervailing Duty Administrative Review 
of Finished Carbon Steel Flanges from India: Respondent Selection,'' 
dated November 20, 2020.
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    On April 19, 2021, Commerce extended the time period for issuing 
these preliminary results by 120 days, in accordance with section 
751(a)(3)(A) of the Tariff Act of 1930, as amended (the Act), to August 
31, 2021.\8\ For a complete description of the events that followed the 
initiation of this review,

[[Page 50033]]

see the Preliminary Decision Memorandum.\9\ 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/.
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    \8\ See Memorandum, ``Finished Carbon Steel Flanges from India: 
Extension of Deadline for Preliminary Results of Countervailing Duty 
Administrative Review; 2019,'' dated April 19, 2021.
    \9\ See Memorandum, ``Decision Memorandum for the Preliminary 
Results of the Countervailing Duty Administrative Review of Finished 
Carbon Steel Flanges from India; 2019,'' 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.

Methodology

    Commerce is conducting this review in accordance with section 
751(a)(l)(A) of 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.\10\
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    \10\ 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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    Commerce notes that, in making these findings, it relied, in part, 
on facts available and, because it finds that a respondent did not act 
to the best of its ability to respond to Commerce's requests for 
information, Commerce drew an adverse inference where appropriate in 
selecting from among the facts otherwise available.\11\ For further 
information, see ``Use of Facts Otherwise Available and Adverse 
Inferences'' in the Preliminary Decision Memorandum.
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    \11\ See sections 776(a) and (b) of the Act.
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Companies Not Selected for Individual Review

    For the companies not selected for individual review, because the 
rates calculated for Norma and RNG were above de minimis and not based 
entirely on facts available, we applied a subsidy rate based on a 
weighted-average of the subsidy rates calculated for Norma and RNG 
using publicly ranged sales data submitted by the respondents.\12\
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    \12\ See Memorandum, ``Preliminary Results Calculation of 
Subsidy Rate for Non-Selected Companies Under Review,'' dated August 
31, 2021.
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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, 
2019, through December 31, 2019, we preliminarily determine that the 
following net countervailable subsidy rates exist:
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    \13\ In the investigation, Commerce found the following 
companies to be cross-owned with Norma (India) Ltd.: USK Export 
Private Limited; Uma Shanker Khandelwal and Co.; and Bansidhar 
Chiranjilal. See Preliminary Decision Memorandum at 6; this finding 
is unchanged in these preliminary results. This rate applies to all 
cross-owned companies.

------------------------------------------------------------------------
                                                                Subsidy
                                                                 rate
                           Company                             (percent
                                                                  ad
                                                               valorem)
------------------------------------------------------------------------
Norma (India) Ltd.\13\......................................        5.25
R.N. Gupta & Co. Ltd........................................        5.51
Companies Not Selected for Individual Examination (see              5.41
 Appendix II)...............................................
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Assessment Rate

    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 
assessment instructions to CBP no earlier than 35 days after the date 
of publication of the final results of this review in the Federal 
Register. If a timely summons is filed at the U.S. Court of 
International Trade, the assessment instructions will direct CBP not to 
liquidate relevant entries until the time for parties to file a request 
for a statutory injunction has expired (i.e., within 90 days of 
publication).

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.\14\ 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 \15\ after the time limit for filing case 
briefs.\16\ 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.\17\ Note that Commerce has temporarily modified certain of 
its requirements for serving documents containing business proprietary 
information, until further notice.\18\
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    \14\ See 19 CFR 351.224(b).
    \15\ See Temporary Rule Modifying AD/CVD Service Requirements 
Due to COVID-19; Extension of Effective Period, 85 FR 41363 (July 
10, 2020) (Temporary Rule).
    \16\ See 19 CFR 351.309(c)(1)(ii) and 351.309(d)(1); see also 19 
CFR 351.303 (for general filing requirements).
    \17\ See 19 CFR 351.309(c)(2) and 351.309(d)(2).
    \18\ 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.\19\ Requests should contain: 
(1) The party's name, address, and telephone number; (2) the 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.\20\ Issues addressed during the hearing will be limited to 
those raised in the respective case and rebuttal briefs.\21\ Parties 
should confirm by telephone the date and time of the hearing two days 
before the scheduled date.
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    \19\ See 19 CFR 351.310(c).
    \20\ See 19 CFR 351.310.
    \21\ 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

[[Page 50034]]

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.

Notification to Interested Parties

    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: August 31, 2021.
James Maeder,
Deputy Assistant Secretary for Antidumping and Countervailing Duty 
Operations.

Appendix I

List of Topics Discussed in the Preliminary Decision Memorandum

I. Summary
II. Background
III. Scope of the Order
IV. Period of Review
V. Subsidies Valuation Information
VI. Benchmark Interest Rates and Discount Rates
VII. Use of Facts Otherwise Available and Application of Adverse 
Inferences
VIII. Analysis of Programs
IX. Rate for Non-Examined Companies
X. Recommendation

Appendix II

Companies Not Selected for Individual Examination

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

[FR Doc. 2021-19189 Filed 9-3-21; 8:45 am]
BILLING CODE 3510-DS-P