Notice2024-06684

Stainless Steel Flanges From the People's Republic of China and India: Initiation and Preliminary Results of Changed Circumstances Reviews and Intent To Revoke the Antidumping and Countervailing Duty Orders, in Part

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Published
March 29, 2024

Issuing agencies

Commerce DepartmentInternational Trade Administration

Abstract

Based on a request from Anchor Fluid Power (Anchor), the U.S. Department of Commerce (Commerce) is initiating and issuing preliminary results of changed circumstances reviews (CCRs) of the antidumping duty and countervailing duty orders on stainless steel flanges from the People's Republic of China (China) and India to revoke the orders, in part, with respect to certain products. Interested parties are invited to comment on these preliminary results.

Full Text

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<title>Federal Register, Volume 89 Issue 62 (Friday, March 29, 2024)</title>
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[Federal Register Volume 89, Number 62 (Friday, March 29, 2024)]
[Notices]
[Pages 22120-22123]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-06684]


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DEPARTMENT OF COMMERCE

International Trade Administration

[A-533-877, A-570-064, C-533-878, C-570-065]


Stainless Steel Flanges From the People's Republic of China and 
India: Initiation and Preliminary Results of Changed Circumstances 
Reviews and Intent To Revoke the Antidumping and Countervailing Duty 
Orders, in Part

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

SUMMARY: Based on a request from Anchor Fluid Power (Anchor), the U.S. 
Department of Commerce (Commerce) is initiating and issuing preliminary 
results of changed circumstances reviews (CCRs) of the antidumping duty 
and countervailing duty orders on stainless steel flanges from the 
People's Republic of China (China) and India to revoke the orders, in 
part, with respect to certain products. Interested parties are invited 
to comment on these preliminary results.

DATES: Applicable March 29, 2024.

FOR FURTHER INFORMATION CONTACT: Sun Cho, 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) 482-3004.

SUPPLEMENTARY INFORMATION:

Background

    In 2018, Commerce published the antidumping and countervailing duty 
orders on stainless steel flanges from China and India.\1\ On February 
2, 2024, Anchor, an importer of stainless steel flanges, requested, 
through CCRs, that Commerce retroactively revoke the Orders, in part, 
pursuant to section 751(b)(1)(A) of the Tariff Act of 1930, as amended 
(the Act), and 19 CFR 351.216(b) with respect to certain products.\2\ 
Anchor stated that it qualifies as an importer of stainless steel 
flanges currently subject to duties and, as such, is an interested 
party pursuant to section 771(9)(A) of the Act and 19 CFR 
351.102(b)(29)(ii).\3\
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    \1\ See Stainless Steel Flanges from the People's Republic of 
China: Countervailing Duty Order, 83 FR 26006 (June 5, 2018); 
Stainless Steel Flanges from the People's Republic of China: 
Antidumping Duty Order, 83 FR 37468 (August 1, 2018); Stainless 
Steel Flanges from India: Antidumping Duty Order, 83 FR 50639 
(October 9, 2018); and Stainless Steel Flanges from India: 
Countervailing Duty Order, 83 FR 50336 (October 5, 2018) 
(collectively, Orders).
    \2\ See Anchor's Letter, ``Request for an Expedited Changed 
Circumstances Review to Amend the Scope of the Orders,'' dated 
February 2, 2024 (CCR Request).
    \3\ Id. at 2.
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    On March 1, 2024, Commerce requested that Anchor provide 
supplemental information related to its CCR Request. Anchor timely 
responded to this supplemental questionnaire on March 11, 2024.\4\ 
Within Anchor's CCR Request and CCR Supplement, Anchor provided 
statements from members of the petitioning coalition or their 
representatives, including Core Pipe Products, Inc.; Kerkau 
Manufacturing; and Ameriforge LLC, indicating that they either were not 
interested in participating in the CCRs or were not contesting Anchor's 
proposal.\5\

[[Page 22121]]

Furthermore, Anchor demonstrates that Core Pipe Products, Inc.; Kerkau 
Manufacturing; and Ameriforge LLC represent substantially all of the 
production of the domestic like product.\6\ No interested parties filed 
comments opposing the CCR Request. Further, Anchor requested that 
Commerce conduct expedited CCRs.\7\
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    \4\ See Anchor's Letter, ``Anchor Response to First Supplemental 
Questionnaire,'' dated March 11, 2024 (CCR Supplement).
    \5\ Id. at Attachment A.
    \6\ Id. at 3-4.
    \7\ See CCR Request at 6.
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Scope of the Orders

    The scope of the Orders covers 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.
    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 the Orders 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 Orders if performed in the 
country of manufacture of the stainless steel flanges.
    Merchandise subject to the Orders 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.

Proposed Partial Revocation of the Orders

    The products subject to the proposed partial revocation are certain 
stainless steel flanges produced in accordance with specification SAE 
J518. Anchor noted that SAE J518 has one and only one international 
equivalent standard, ISO 6162, and that it is not possible for flanges 
produced in accordance with SAE J518 to be certified under another 
standard other than the international equivalent standard ISO 6162.\8\ 
Anchor also noted that SAE J518 flanges cannot be dual-certified with 
standards covering other stainless steel flanges covered by the scope 
of the Orders and that the flanges produced to the specification SAE 
J518 have unique physical characteristics that distinguish them from 
other stainless steel flanges subject to the Orders such that no 
ambiguity will be created by this exclusion.\9\ Anchor specifically 
requests that the scope of the Orders be amended to include the 
following exclusion: The scope also excludes stainless steel flanges 
produced in accordance with specification SAE J518 (or its 
international equivalent, ISO 6162).
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    \8\ Id.
    \9\ Id.
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Initiation of CCRs

    Pursuant to section 751(b)(1) of the Act, Commerce will conduct a 
CCR upon receipt of a request from an interested party that shows 
changed circumstances sufficient to warrant a review of the order. In 
accordance with 19 CFR 351.216(d), Commerce determines that the 
information submitted by Anchor, along with substantially all of the 
domestic industry's support, shows changed circumstances sufficient to 
warrant a review of the Orders.
    Section 782(h)(2) of the Act and 19 CFR 351.222(g)(1)(i) provide 
that Commerce may revoke an order (in whole or in part) if it 
determines that producers accounting for substantially all of the 
production of the domestic like product have expressed a lack of 
interest in the order, in whole or in part. In its administrative 
practice, Commerce has interpreted ``substantially all'' to mean 
producers accounting for at least 85 percent of the total U.S. 
production of the domestic like product covered by the order.\10\
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    \10\ See, e.g., Certain Cased Pencils from the People's Republic 
of China: Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstances Review, and Intent to Revoke Order in Part, 77 
FR 42276 (July 18, 2012), unchanged in Certain Cased Pencils from 
the People's Republic of China: Final Results of Antidumping Duty 
Changed Circumstances Review, and Determination to Revoke Order, in 
Part, 77 FR 53176 (August 31, 2012).
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Preliminary Results of the CCRs and Intent To Revoke the Orders, in 
Part

    Section 351.221(c)(3)(ii) of Commerce's regulations permits 
Commerce to combine the notice of initiation of a CCR and the notice of 
preliminary results if Commerce concludes that expedited action is 
warranted.\11\ In this instance, because the record contains 
information necessary to make a preliminary finding, we find that 
expedited action is warranted and have combined the notice of 
initiation and the notice of preliminary results.\12\
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    \11\ See 19 CFR 351.221(c)(3)(ii); see also Certain Pasta from 
Italy: Initiation and Preliminary Results of Antidumping Duty 
Changed Circumstances Review, 80 FR 33480, 33480-41 (June 12, 2015) 
(Pasta from Italy Preliminary Results), unchanged in Certain Pasta 
from Italy: Final Results of Changed Circumstances Review, 80 FR 
48807 (August 14, 2015) (Pasta from Italy Final Results).
    \12\ See, e.g., Pasta from Italy Preliminary Results, 80 FR at 
33480-41, unchanged in Pasta from Italy Final Results, 80 FR at 
48807.
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    Pursuant to section 751(d)(1) of the Act, and 19 CFR 351.222(g), 
Commerce may revoke an antidumping or countervailing duty order, in 
whole or in part, based on a review under section 751(b) of the Act 
(i.e., a CCR). Section 751(b)(1) of the Act requires a CCR to be 
conducted upon receipt of a request which shows changed circumstances 
sufficient to warrant a review. Section 782(h)(2) of the Act gives 
Commerce the authority to revoke an order if producers accounting for 
substantially all of the production of the domestic like product have 
expressed a lack of interest in the order. Section 351.222(g) of 
Commerce's regulations provides that Commerce will conduct a CCR of an 
antidumping or countervailing duty order under 19

[[Page 22122]]

CFR 351.216, and may revoke an order (in whole or in part), if it 
concludes that: (i) producers accounting for substantially all of the 
production of the domestic like product to which the order pertains 
have expressed a lack of interest in the relief provided by the order, 
in whole or in part; or (ii) if other changed circumstances sufficient 
to warrant revocation exist. Thus, both the Act and Commerce's 
regulations require that ``substantially all'' domestic producers 
express a lack of interest in the order for Commerce to revoke the 
order, in whole or in part.\13\ In its administrative practice, 
Commerce has interpreted ``substantially all'' to represent producers 
accounting for at least 85 percent of U.S. production of the domestic 
like product.\14\
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    \13\ See section 782(h) of the Act; and 19 CFR 351.222(g).
    \14\ See, e.g., Honey from Argentina: Antidumping and 
Countervailing Duty Changed Circumstances Reviews; Preliminary 
Intent to Revoke Antidumping and Countervailing Duty Orders, 77 FR 
67790, 67791 (November 14, 2012), unchanged in Honey from Argentina: 
Final Results of Antidumping and Countervailing Duty Changed 
Circumstances Reviews; Revocation of Antidumping and Countervailing 
Duty Orders, 77 FR 77029 (December 31, 2012).
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    As explained above, domestic stainless steel flanges producers 
accounting for greater than 85 percent of the domestic industry, 
including the original petitioners and one other domestic stainless 
steel flanges producer, have expressed no interest in opposing Anchor's 
CCR Request.\15\ Substantially all of the domestic industry appears to 
have no interest in maintaining the Orders with respect to the specific 
products which are the subject of Anchor's request.\16\ The domestic 
industry has not commented on whether the proposed scope exclusion 
language should be retroactive.
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    \15\ See CCR Supplement at Attachment A-1, A-2, and A-3.
    \16\ Id.
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    In light of the domestic producers' statements of no interest in 
opposing the revocation of the Orders, in part, with respect to the 
stainless steel flanges as described by Anchor, and in the absence of 
any other interested party comments addressing the issue of domestic 
industry support, we preliminarily conclude that producers accounting 
for substantially all of the production of the domestic like product to 
which the Orders pertain lack interest in the relief provided by the 
Orders with respect to stainless steel flanges that are the subject of 
Anchor's revocation request. Thus, we preliminarily determine that 
changed circumstances warrant revocation of the Orders, in part, with 
respect to such stainless steel flanges as described by Anchor. 
Accordingly, we are notifying the public of our intent to revoke the 
Orders, in part, with respect to stainless steel flanges described in 
the ``Proposed Partial Revocation of the Orders'' section above. This 
revocation is limited solely to those flanges produced to specification 
SAE J518 (or its international equivalent, ISO 6162), and not to any 
other specification.
    Additionally, Anchor requested that Commerce find this scope 
exclusion applies retroactively; however, it did not provide a date as 
to which it believes this scope exclusion should retroactively apply. 
If we make a final determination to revoke the Orders in part, then we 
intend to apply the partial revocation to unliquidated entries of 
merchandise subject to the CCRs that were entered or withdrawn from 
warehouse, for consumption, on or after the day following the last day 
of the period covered by the most recently completed administrative 
review of each of the Orders, and are not already subject to automatic 
liquidation instructions.

Public Comment

    In accordance with 19 CFR 351.309(c)(1)(ii), interested parties may 
submit case briefs not later than 14 days after the date of publication 
of this notice.\17\ Rebuttal briefs, limited to issues raised in the 
case briefs, may be filed no later than five days after the due date 
for case briefs.\18\
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    \17\ Commerce is exercising its discretion under 19 CFR 
351.309(c)(1)(ii) to alter the time limit for the filing of case 
briefs.
    \18\ See 19 CFR 351.309(d); see also Administrative Protective 
Order, Service, and Other Procedures in Antidumping and 
Countervailing Duty Proceedings, 88 FR 67069, 67077 (September 29, 
2023) (APO and Service Final Rule).
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    As provided under 19 CFR 351.309(c)(2) and (d)(2), in prior 
proceedings we have encouraged interested parties to provide an 
executive summary of their brief that should be limited to five pages 
total, including footnotes. In these CCRs, we instead request that 
interested parties provide at the beginning of their briefs a public, 
executive summary for each issue raised in their briefs.\19\ Further, 
we request that interested parties limit their executive summary of 
each issue to no more than 450 words, not including citations. We 
intend to use the executive summaries as the basis of the comment 
summaries included in the Issues and Decision Memorandum that will 
accompany the final results in these CCRs. We request that interested 
parties include footnotes for relevant citations in the executive 
summary of each issue. Note that Commerce has amended certain of its 
requirements pertaining to the service of documents in 19 CFR 
351.303(f).\20\ An electronically filed document must be received 
successfully in its entirety by ACCESS by 5:00 p.m. Eastern Time on the 
day on which it is due.
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    \19\ We use the term ``issue'' here to describe an argument that 
Commerce would normally address in a comment of the Issues and 
Decision Memorandum.
    \20\ See APO and Service Final Rule.
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    Pursuant to 19 CFR 351.310(c), any interested party may request a 
hearing within 14 days of publication of this notice in the Federal 
Register.\21\ Hearing requests should contain the following 
information: (1) the party's name, address, and telephone number; (2) 
the number of participants; and (3) a list of the issues to be 
discussed. Oral presentations at the hearing will be limited to issues 
raised in the briefs.\22\ If a request for a hearing is made, Commerce 
intends to hold the hearing at a time and date to be determined. 
Parties should confirm the date and the time of the hearing two days 
before the scheduled date.
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    \21\ Commerce is exercising its discretion under 19 CFR 
351.310(c) to alter the time limit for requesting a hearing.
    \22\ See 19 CFR 351.310(c).
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Final Results of Reviews

    Unless extended, consistent with 19 CFR 351.216(e), Commerce 
intends to issue the final results of these CCRs no later than 270 days 
after the date on which these reviews were initiated or 45 days if all 
parties agree to the outcome of the reviews. If, in the final results 
of these reviews, Commerce continues to determine that changed 
circumstances warrant the revocation of the Orders, in part, we will 
instruct U.S. Customs and Border Protection (CBP) to liquidate without 
regard to antidumping or countervailing duties, and to refund any 
estimated antidumping and countervailing duties deposited on all 
unliquidated entries of the merchandise covered by the revocation that 
are not covered by the final results of an administrative review or an 
automatic liquidation instruction to CBP. The current requirement for 
cash deposits of estimated antidumping or countervailing duties on all 
entries of subject merchandise will continue unless they are modified 
pursuant to the final results of these changed CCRs.

Notification to Interested Parties

    This initiation notice and preliminary results are published in 
accordance with section 751(b)(1) of the Act, 19 CFR 351.216(b)(1) and 
19 CFR 351.222 (c)(3)(ii).


[[Page 22123]]


    Dated: March 22, 2024.
Ryan Majerus,
Deputy Assistant Secretary for Policy and Negotiations, performing the 
non-exclusive functions and duties of the Assistant Secretary for 
Enforcement and Compliance.
[FR Doc. 2024-06684 Filed 3-28-24; 8:45 am]
BILLING CODE 3510-DS-P


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Indexed from Federal Register on March 29, 2024.

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