[Federal Register Volume 84, Number 225 (Thursday, November 21, 2019)]
[Notices]
[Pages 64263-64265]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25263]
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DEPARTMENT OF COMMERCE
International Trade Administration
[A-570-062, C-570-063]
Cast Iron Soil Pipe Fittings From the People's Republic of China:
Initiation and Preliminary Results of Changed Circumstances Reviews
AGENCY: Enforcement and Compliance, International Trade Administration,
Department of Commerce.
SUMMARY: In response to a request for changed circumstances reviews
(CCRs), the Department of Commerce (Commerce) is initiating CCRs of the
antidumping duty (AD) and countervailing duty (CVD) orders on cast iron
soil pipe fittings from the People's Republic of China (China). We have
preliminarily determined that Wor-Biz Industrial Product Co., Ltd.
(Anhui) (Wor-Biz Industrial) is the successor-in-interest to Wor-Biz
Trading Co., Ltd. (Anhui) (Wor-Biz Trading) (collectively, Wor-Biz),
and as a result should be accorded the same treatment previously
accorded to that company. Interested parties are invited to comment on
these preliminary results.
DATES: Applicable November 21, 2019.
FOR FURTHER INFORMATION CONTACT: Michael Bowen at (202) 482-0768 (AD)
or Dennis McClure at (202) 482-5973 (CVD), Office VIII, Enforcement and
Compliance, International Trade Administration, U.S. Department of
Commerce, 1401 Constitution Avenue NW, Washington, DC 20230.
SUPPLEMENTARY INFORMATION:
Background
On August 31, 2018, Commerce published the AD and CVD orders on
imports of cast iron soil pipe fittings from China.\1\ On June 7, 2019,
Wor-Biz requested that Commerce conduct expedited CCRs for these AD/CVD
orders to determine that Wor-Biz Industrial is the successor-in-
interest to Wor-Biz Trading.\2\ In its request, Wor-Biz addressed the
factors Commerce analyzes with respect to successor-in-interest
determinations in the AD context, and provided documentation in
support.\3\ On July 19, 2019, we issued a questionnaire requesting Wor-
Biz to state the reasons, with particularity, for which good cause
exists to initiate a CCR less than 24 months after the date of
publication of the final determinations of the AD and CVD
investigations, as required by 19 CFR 351.216(c).\4\ On August 20,
2019, Wor-Biz re-filed its request, in which it stated why good cause
to initiate these CCRs exists.\5\ On October 2, 2019, Commerce
determined that additional time was necessary to consider Wor-Biz's
request, and therefore, in accordance with 19 CFR 351.302(b), Commerce
extended the time period for determining whether to initiate the
requested CCRs by an additional 45 days, until November 18, 2019.\6\ On
October 9, 2019, we issued an additional supplemental questionnaire \7\
and we subsequently received, on October 16, 2019, additional
information relevant to successor-in-interest determinations in a CVD
context.\8\ Commerce received no comments from interested parties on
Wor-Biz's CCR request.
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\1\ See Cast Iron Soil Pipe Fittings from the People's Republic
of China: Amended Final Determination of Sales at Less Than Fair
Value and Antidumping Duty Order, 83 FR 44570 and Cast Iron Soil
Pipe Fittings from the People's Republic of China: Countervailing
Duty Order, 83 FR 44566, both dated August 31, 2018 (collectively,
the Orders).
\2\ See Wor-Biz's Letter, ``Cast Iron Soil Pipe Fittings from
the People's Republic of China: Request for an Expedited Changed
Circumstances Review,'' dated June 7, 2019.
\3\ Id.
\4\ See Commerce's Letter, ``Request for Changed Circumstances
Review of the Antidumping and Countervailing Duty Orders on Cast
Iron Soil Pipe Fittings from the People's Republic of China,'' dated
July 19, 2019.
\5\ See Wor-Biz's Letter, ``Cast Iron Soil Pipe Fittings from
the People's Republic of China: Request for an Expedited Changed
Circumstances Review,'' dated August 20, 2019 (Wor-Biz's Second CCR
Submission).
\6\ See Commerce's Letter, ``Request for Changed Circumstances
Review of the Antidumping and Countervailing Duty Orders on Cast
Iron Soil Pipe Fittings from the People's Republic of China:
Extension of Initiation Deadline,'' dated October 2, 2019.
\7\ See Commerce's Letter, ``Cast Iron Soil Pipe Fittings from
the People's Republic of China: Changed Circumstances Review
Supplemental Questionnaire,'' dated October 9, 2019.
\8\ See Wor-Biz's Letter, ``Cast Iron Soil Pipe Fittings from
the People's Republic of China: Wor-Biz's Supplemental Response,''
dated October 16, 2019 (Wor-Biz's Third CCR Submission).
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Scope of the Orders
The merchandise covered by the scope of these orders is cast iron
soil pipe fittings, finished and unfinished, regardless of industry or
proprietary specifications, and regardless of size. Cast iron soil pipe
fittings are nonmalleable iron castings of various designs and sizes,
including, but not limited to, bends, tees, wyes, traps, drains (other
than drain bodies), and other common or special fittings, with or
without side inlets.
Cast iron soil pipe fittings are classified into two major types--
hubless and hub and spigot. Hubless cast iron soil pipe fittings are
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. Hub and spigot pipe
fittings have hubs into which the spigot (plain end) of the pipe or
fitting is inserted. Cast iron soil pipe fittings are generally
distinguished from other types of nonmalleable cast iron fittings by
the manner in which they are connected to cast iron soil pipe and other
fittings.
Excluded from the scope are all drain bodies. Drain bodies are
normally classified in subheading 7326.90.86.88 of the Harmonized
Tariff Schedule of the United States (HTSUS).
The cast iron soil pipe fittings subject to the scope of these
orders are normally classified in subheading 7307.11.0045 of the HTSUS:
Cast fittings of nonmalleable cast iron for cast iron soil pipe. They
may also be entered under HTSUS 7324.29.0000 and 7307.92.3010. The
HTSUS subheadings and specifications are provided for convenience and
customs purposes only; the written description of the scope of these
orders is dispositive.
Initiation of Changed Circumstances Reviews
Pursuant to section 751(b)(1) of the Tariff Act of 1930, as amended
(the Act), and 19 CFR 351.216, Commerce will conduct a CCR upon a
request from an interested party for a review of an AD or CVD order
which shows changed circumstances sufficient to warrant a review of the
order, but will not do so less than 24 months after the date of
publication of the final determinations of the AD and CVD
investigations absent a finding of good cause.\9\ The information
submitted by Wor-Biz supporting its claim that Wor-Biz
[[Page 64264]]
Industrial is the successor-in-interest to Wor-Biz Trading,
demonstrates both good cause and changed circumstances sufficient to
initiate these reviews.\10\
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\9\ See 19 CFR 351.216(c).
\10\ See 19 CFR 351.216(d).
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Specifically, Wor-Biz states that good cause exists because a CCR
is necessary to ensure that Wor-Biz's U.S. customers can accurately
identify Wor-Biz by its new English name as the exporter of subject
merchandise, and to ensure that cash deposits are collected at Wor-
Biz's company-specific rates calculated during the AD and CVD
investigations.\11\ Commerce has previously found good cause exists to
initiate a CCR less than 24 months after the date of publication of a
final determination when a respondent has changed its name, as this
ensures that CBP is able to assess entries at the appropriate cash
deposit rate.\12\
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\11\ See Wor-Biz's Second CCR Submission.
\12\ See, e.g., Notice of Initiation and Preliminary Results of
Antidumping Duty Changed Circumstances Review: Certain Passenger
Vehicle and Light Truck Tires From the People's Republic of China,
81 FR 44588 (July 8, 2016) (``Sailun Jinyu HK demonstrated good
cause for initiating a CCR pursuant to 19 CFR 351.216(c) because it
has only changed its name and no other aspect of the company's
operations, and conducting this review ensures that the appropriate
deposit rate applies to Sailun Jinyu HK.''); and Certain Aluminum
Foil and Common Alloy Aluminum Sheet from the People's Republic of
China; Notice of Initiation and Preliminary Determination of
Antidumping and Countervailing Duty Changed Circumstances Reviews,
84 FR 48909 (September 17, 2019).
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Additionally, the information submitted by Wor-Biz regarding its
changed circumstances demonstrates that Wor-Biz's request is based
solely on a change in its English name. Specifically, effective October
31, 2019, Wor-Biz Trading legally changed the company's English name to
Wor-Biz Industrial Product Co., Ltd. (Anhui).\13\ The evidence
submitted in support of Wor-Biz's request demonstrates that Wor-Biz
Industrial is the same business entity as its predecessor and that Wor-
Biz merely changed the company's English name; the Chinese company name
remains the same.
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\13\ See Wor-Biz's Second CCR Submission.
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Therefore, in accordance with the above-referenced regulation,
Commerce is initiating CCRs to determine whether Wor-Biz Industrial is
the successor-in-interest to Wor-Biz Trading.
Preliminary Results
When it concludes that expedited action is warranted, Commerce may
publish the notice of initiation and preliminary results of a CCR
concurrently.\14\ Commerce has combined the notice of initiation and
preliminary results in successor-in-interest CCRs when sufficient
documentation has been provided supporting the request to make a
preliminary determination.\15\ In this instance, because we have on the
record information to support the request for AD and CVD preliminary
determinations, we find that expedited action is warranted, and we are
combining the notice of initiation and the notice of preliminary
results, in accordance with 19 CFR 351.221(c)(3)(ii).
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\14\ See 19 CFR 351.221(c)(3)(ii).
\15\ See, e.g., Multilayered Wood Flooring from the People's
Republic of China: Initiation and Preliminary Results of Antidumping
and Countervailing Duty Changed Circumstances Reviews, 82 FR 9561
(February 7, 2017), unchanged in Multilayered Wood Flooring from the
People's Republic of China: Final Results of Changed Circumstances
Reviews, 82 FR 14691 (March 22, 2017).
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AD Methodology
In a CCR, we generally consider a company to be the successor to
another company for AD cash deposit purposes if the operations of the
successor are not materially dissimilar from those of its
predecessor.\16\ In making an AD CCR determination, Commerce examines a
number of factors including, but not limited to, changes in: (1)
Management; (2) production; (3) suppliers; and (4) customer base.\17\
While no one or several of these factors is dispositive, Commerce will
generally consider one company to be the successor to another if its
resulting operation is essentially the same as that of its
predecessor.\18\ Thus, if the evidence demonstrates that, with respect
to the production and sale of the subject merchandise, the new company
operates as the same business entity as the prior company, Commerce
will assign the new company the cash deposit rate of its
predecessor.\19\
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\16\ Id.
\17\ See Initiation and Preliminary Results of Antidumping Duty
Changed Circumstances Review: Multilayered Wood Flooring from the
People's Republic of China, 79 FR 48117,48118 (August 15, 2014),
unchanged in Multilayered Wood Flooring from the People's Republic
of China: Final Results of Changed Circumstances Review, 79 FR 58740
(September 30, 2014).
\18\ Id.
\19\ See, e.g., Initiation and Preliminary Results of
Antidumping Duty Changed Circumstances Review: Crystalline Silicon
Photovoltaic Cells, Whether or Not Assembled Into Modules, from the
People's Republic of China, 81 FR 76561 (November 3, 2016) (Solar
Cells China 2016), unchanged in Crystalline Silicon Photovoltaic
Cells, Whether or Not Assembled Into Modules, from the People's
Republic of China: Final Results of Changed Circumstances Review, 81
FR 91909 (December 19, 2016).
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In its CCR submissions, Wor-Biz provided evidence demonstrating
that Wor-Biz Industrial's operations are not materially dissimilar from
those of Wor-Biz Trading. Specifically, Wor-Biz Industrial is managed
and operated by the same management teams as those of Wor-Biz
Trading.\20\ Further, Wor-Biz Industrial has not added, or discontinued
use of, production facilities as a result the English name change.\21\
Finally, there have been no material changes to the company's suppliers
or customer base.\22\ Based on the foregoing, we preliminarily
determine that Wor-Biz Industrial is the successor-in-interest to Wor-
Biz Trading and, as such, that it is entitled to Wor-Biz Trading's AD
cash deposit rate with respect to entries of subject merchandise.
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\20\ See Wor-Biz's Second CCR Submission at Exhibits 8-9.
\21\ Id. at 4. Wor-Biz is only a trading company and does not
produce subject merchandise.
\22\ Id. at Exhibits 4-7.
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CVD Methodology
As a general rule, in a CVD CCR, Commerce will make an affirmative
CVD successorship finding (i.e., that the respondent company is the
same subsidized entity for CVD cash deposit purposes as the predecessor
company) where there is no evidence of significant changes in the
respondent's: (1) Operations; (2) ownership; and (3) corporate and
legal structure during the relevant period (i.e., the ``look-back
window'') that could have affected the nature and extent of the
respondent's subsidy levels.\23\ Where Commerce makes an affirmative
CVD successorship finding, the successor's merchandise will be entitled
to enter under the predecessor's cash deposit rate.\24\ Here, we find
no evidence of significant changes between Wor-Biz Industrial's and
Wor-Biz Trading's operations, ownership, or its corporate or legal
structure that could have had an impact on Wor-Biz's subsidy
levels.\25\ Specifically, all record information with respect to Wor-
Biz's trading operations,\26\ shareholders,\27\ and corporate and legal
structure \28\ demonstrates that Wor-Biz Industrial is the same
subsidized entity as its
[[Page 64265]]
predecessor.\29\ Accordingly, we preliminarily determine that Wor-Biz
Industrial is the successor-in-interest to Wor-Biz Trading and, as
such, that it is entitled to Wor-Biz Trading's CVD cash deposit rate
with respect to entries of subject merchandise.
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\23\ See Certain Pasta from Turkey: Preliminary Results of
Countervailing Duty Changed Circumstances Review, 74 FR 47225
(September 15, 2009). Here, the relevant period, or ``look-back
window,'' is December 31, 2016 (end of the period of investigation)
through August 20, 2019 (date of the resubmitted CCR request).
\24\ See Multilayered Wood Flooring from the People's Republic
of China: Initiation and Preliminary Results of Antidumping and
Countervailing Duty Changed Circumstances Reviews, 82 FR 9561
(February 7, 2017).
\25\ See Wor-Biz's Second CCR Submission.
\26\ Id. at Exhibits 4-7.
\27\ Id. at Exhibit 8.
\28\ Id. at Exhibits 1-2.
\29\ See Wor-Biz's Third CCR Submission at 1 and Exhibit S-1.
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Should our final results remain the same as these preliminary
results, we will instruct U.S. Customs and Border Protection to assign
entries of subject merchandise exported by Wor-Biz Industrial the AD
and CVD cash deposit rates applicable to Wor-Biz Trading, effective the
date of publication of the final results.
Public Comment
Any interested party may request a hearing within 14 days of
publication of this notice, in accordance with 19 CFR 351.310(c).
Interested parties may submit case briefs and/or written comments no
later than 14 days after the date of publication of this notice.\30\
Rebuttal briefs and rebuttals to written comments, which must be
limited to issues raised in such briefs or comments, may be filed not
later than 7 days after the case briefs.\31\ Any hearing, if requested,
will normally be held two days after rebuttal briefs/comments are due,
in accordance with 19 CFR 351.310(d)(1). Parties who submit case briefs
or rebuttal briefs in these CCRs are requested to submit with each
argument (1) a statement of the issue, and (2) a brief summary of the
argument with an electronic version included. Consistent with 19 CFR
351.216(e), we will issue the final results of these CCRs no later than
270 days after the date on which these reviews were initiated or within
45 days of publication of these preliminary results if all parties
agree to our preliminary findings.
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\30\ Commerce is exercising its discretion under 19 CFR
351.309(c)(1)(ii) to alter the time limit for the filing of case
briefs.
\31\ Commerce is exercising its discretion under 19 CFR
351.309(d)(1) to alter the time limit for the filing of rebuttal
briefs.
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We are issuing and publishing this initiation and preliminary
results notice in accordance with sections 751(b)(1) and 777(i)(1) of
the Act and 19 CFR 351.216 and 351.221(c)(3).
Dated: November 15, 2019.
Jeffrey I. Kessler,
Assistant Secretary for Enforcement and Compliance.
[FR Doc. 2019-25263 Filed 11-20-19; 8:45 am]
BILLING CODE 3510-DS-P