AD/CVD message 8241306 - Notice of preliminary determination of Malaysia-wide circumvention of antidumping duty order on carbon steel butt-weld pipe fittings from the People's Republic of China (A-570-814 and A-557-994)

8241306
Aug 29, 2018
Active

Effective Date: Aug 21, 2017

Cite as: 83 FR 35205 • Cite date: Jul 25, 2018

Category: Antidumping • Type: Preliminary Determination • Sub type: AFF-Affirmative • Cases: A-557-994 A-570-814

Re: Notice of preliminary determination of Malaysia-wide circumvention of antidumping duty order on carbon steel butt-weld pipe fittings from the People's Republic of China (A-570-814 and A-557-994)

1. On 07/25/2018, Commerce published in the Federal Register its notice of affirmative preliminary determination of Malaysia-wide circumvention of the antidumping duty (AD) order on carbon steel butt-weld pipe fittings (butt-weld pipe fittings) from the People's Republic of China (China) (83 FR 35205) (Preliminary Determination).

2. Scope of the antidumping duty order

The merchandise covered by the order consists of certain carbon steel butt-weld pipe fittings, having an inside diameter of less than 14 inches, imported in either finished or unfinished form. These formed or forged pipe fittings are used to join sections in piping systems where conditions require permanent, welded connections, as distinguished from fittings based on other fastening methods (e.g., threaded, grooved, or bolted fittings). Carbon steel butt-weld pipe fittings are currently classified under subheading 7307.93.30 of the HTSUS. The HTSUS subheading is provided for convenience and customs purposes. The written product description remains dispositive.

3. Scope of the anti-circumvention inquiry

This anti-circumvention inquiry covers butt-weld pipe fittings exported from Malaysia to the United States, which were completed in Malaysia using finished or unfinished butt-weld pipe fittings sourced from China. Butt-weld pipe fittings produced in Malaysia using finished or unfinished butt-weld pipe fittings sourced from Malaysia or third countries other than China are not covered by the scope of this anti-circumvention inquiry.

4. Suspension of Liquidation

4a. CBP shall suspend liquidation of unliquidated entries (and entries for which liquidation has not become final) of butt-weld pipe fittings produced in Malaysia using Chinese-origin finished or unfinished butt-weld pipe fittings, that were entered, or withdrawn from warehouse, for consumption on or after 08/21/2017 (date of the initiation of the anticircumvention inquiry) and shall require for such entries an AD cash deposit equal to 182.90 percent of the entered value.

4b. Case number A-557-994 has been created to accommodate entries of butt-weld pipe fittings produced in Malaysia from Chinese-origin finished or unfinished butt-weld pipe fittings that are subject to the AD order on butt-weld pipe fittings from China. Any such entries that are set for liquidation should be unset immediately.

4c. If the importer/exporter can certify to CBP that the Chinese-origin finished or unfinished butt-weld pipe fittings used in the production of butt-weld pipe fittings in Malaysia were supplied by a Chinese manufacturer with a company-specific separate rate, the importer, producer or exporter may request establishment of a third-country case number specific to the Chinese supplier for such imports. For such imports, CBP shall require an AD cash deposit equal to that Chinese manufacturer's separate rate. Such requests from an importer, producer or exporter should be filed on the record of the proceeding in E&C's electronic record system ACCESS. CBP may also request establishment of a third-country case number. Requests for establishment of company-specific third-country case numbers from CBP should be submitted through the ACE AD/CVD Portal Inquiry System.

4d. Further, if CBP determines that the certification and/or documentation requirements identified below have not been met for any unliquidated entries (and entries for which liquidation has not become final) of butt-weld pipe fittings entered, or withdrawn from warehouse, for consumption on or after 08/21/2017 and produced in Malaysia for which the importer claims that the merchandise was not produced from Chinese-origin finished or unfinished butt-weld pipe fittings, CBP shall suspend liquidation of all such unliquidated entries (and entries for which liquidation has not become final) as products of China for AD purposes, and shall require the importer to post applicable AD cash deposits. Entries suspended under either A-570-814 or A-557-994 will be liquidated pursuant to applicable administrative reviews of the AD order on butt-weld pipe fittings from China or through the automatic liquidation process.

5. Certification Requirements

5a. Eligibility for the Certification

(i) Except for the companies listed in paragraph 5a(ii), importers and exporters of butt-weld pipe fittings from Malaysia are eligible for the certification process detailed below and in the preliminary determination.

(ii) Imports of butt-weld pipe fittings from the companies listed below are currently not eligible for the certification process, accordingly, shipments of butt-weld pipe fittings produced and/or exported by these companies should enter under the all others, third-country case number A-557-994-000 and will require a cash deposit of 182.90 percent of the entered value, or, if applicable, a cash deposit at the rate of the Chinese manufacturer that supplied the finished or unfinished butt-weld pipe fittings:

Able Steel Pipes Sdn. Bhd.
Alliance Fittings Industry Sdn. Bhd.
Anggerik Laksana Sdn. Bhd.
Globefit Manufacturing Sdn. Bhd.
Hiap Teck Venture Bhd.
JAKS Steel Industries Sdn. Bhd.
Luda Malaysia, Ltd.
Pantech Steel Industries Sdn. Bhd.
Pipefab Industries Sdn. Bhd.
Southern Steel Bhd.
Wing Tiek Ductile Iron Pipe Sdn. Bhd.

5b. Certification Requirements for Importers and Exporters:

(i) For entries of butt-weld pipe fittings exported from Malaysia and entered, or withdrawn from warehouse, for consumption on or after 08/21/2017 for which the importer claims that the butt-weld pipe fittings were not produced from Chinese-origin finished or unfinished butt-weld pipe fittings, the importer and exporter are required to meet the certification and documentation requirements detailed in the certifications below in order for no cash deposit to be required on such entries.

(ii) The exporter is further required to provide the importer a copy of the exporter certification and the importer is required to maintain a copy of the exporter certification.

(iii) The importer and third-country exporter are also required to maintain sufficient documentation (as indicated in the certifications) supporting their certifications. The importer and exporter are required to maintain the certifications and supporting documentation for the later of (1) a period of five years from the date of entry or (2) a period of three years after the conclusion of any litigation in United States courts regarding such entries.

(iv) Although the importer will not be required to submit the certifications or supporting documentation to CBP as part of the entry process, the importer and the exporter will be required to present the certifications and supporting documentation to Commerce and/or CBP, as applicable, upon request by the respective agency.

(v) Agents of the importer, such as brokers, are not permitted to make this certification. Where the importer uses a broker to facilitate the entry process, it should obtain the entry number and date of entry from the broker.

(vi) The exporter certification should be completed by the party selling the merchandise manufactured in Malaysia to the United States, which is not necessarily the producer of the product.

(vii) The claims made in the importer and exporter certifications and any supporting documentation are subject to verification by Commerce and/or CBP.

5c. Certification Timing Requirements for Importers and Exporters:

(i) For subject merchandise (1) shipped and/or (2) entered, or withdrawn from warehouse, for consumption during the period 08/21/2017 through 07/25/2018, for which certifications are required, importers and exporters each have the option to complete a blanket certification covering multiple entries, individual certifications for each entry, or a combination thereof. Importer and Exporter certifications for these entries should be completed, signed, and dated no later than 09/08/2018 (within 45 days of publication of the preliminary determination).

Accordingly, the relevant bullet in the certification should be edited to reflect that the certification was completed within this time frame. For example, in the importer certification the bullet that reads: “This certification was completed by the time of filing the entry summary,” could be edited as follows: “The shipments/products referenced herein entered before the 07/25/2018 publication of the Preliminary Determination Federal Register notice. This certification was completed on mm/dd/yyyy, within 45 days of the Federal Register notice publication.”

Similarly, the bullet in the exporter certification that reads “This certification was completed by the time of shipment,” could be edited as follows: “The shipments/products referenced herein shipped before the 07/25/2018 publication of the Preliminary Determination Federal Register notice. This certification was completed on mm/dd/yyyy, within 45 days of the Federal Register notice publication.”

Additionally, the exporter must provide the importer a copy of the exporter certification within 45 days of the Preliminary Determination publication.

(ii) For subject merchandise (1) shipped and/or (2) entered, or withdrawn from warehouse, for consumption during the period 07/26/2018 through 08/31/2018, for which certifications are required:
-- importer certifications must be completed, signed and dated no later than 45 days after the date of entry
-- exporter certifications must be completed, signed, dated and provided to the importer no later than 45 days after the date of shipment.
Accordingly, the relevant bullet in the certification should be edited to reflect that the certification was completed within this time frame. For example, in the importer certification the bullet that reads: “This certification was completed by the time of filing the entry summary,” could be edited as follows: “The shipments/products referenced herein entered during the period 07/26/2018 through 08/31/2018. This certification was completed on mm/dd/yyyy, within 45 days after the date of entry.”
Similarly, the bullet in the exporter certification that reads “This certification was completed at or prior to the time of shipment,” could be edited as follows: “The shipments/products referenced herein shipped during the period 07/26/2018 through 08/31/2018. This certification was completed on mm/dd/yyyy, within 45 days after the date of shipment.”

(iii) For subject merchandise entered, or withdrawn from warehouse, for consumption on or after 09/01/2018:
-- the importer certification must be completed, signed, and dated by the time of filing of the entry summary for the relevant importation; and
-- the exporter certification must be completed, signed, dated and provided to the importer by the time of shipment of the relevant entries.

(iv) For unliquidated entries (and entries for which liquidation has not become final) of merchandise entered non-AD/CVD type entries (e.g., type 01) that were (1) shipped and/or entered, or withdrawn from warehouse, for consumption during the period 08/21/2017 through 08/31/2018, for which certifications are required, importers should file a Post Summary Correction with U.S. Customs and Border Protection (CBP) in accordance with CBP's regulations, regarding conversion of such entries to AD/CVD type (i.e., types 03, 06, 34 and 38) entries and report those AD/CVD type entries using the third country case number A-577-994. Similarly, the importer should pay cash deposits on those entries consistent with the regulations governing post summary corrections that require payment of additional duties.

6. Certifications

6a. IMPORTER CERTIFICATION

I hereby certify that:

• My name is {COMPANY OFFICIAL'S NAME} and I am an official of {IMPORTING COMPANY};
• I have direct personal knowledge of the facts regarding the importation into the Customs territory of the United States of the carbon steel butt-weld pipe fittings completed in Malaysia that entered under entry number(s) {INSERT ENTRY NUMBER(S)} and are covered by this certification. “Direct personal knowledge” refers to facts the certifying party is expected to have in its own records. For example, the importer should have “direct personal knowledge” of the importation of the product (e.g., the name of the exporter) in its records;
• I have personal knowledge of the facts regarding the production of the imported products covered by this certification. “Personal knowledge” includes facts obtained from another party, (e.g., correspondence received by the importer (or exporter) from the producer regarding the source of the finished or unfinished butt-weld pipe fittings used to produce the imported products);
• The carbon steel butt-weld pipe fittings completed in Malaysia do not contain finished or unfinished butt-weld pipe fittings manufactured in the People's Republic of China;
• I understand that {IMPORTING COMPANY} is required to maintain a copy of this certification and sufficient documentation supporting this certification (i.e., documents maintained in the normal course of business, or documents obtained by the certifying party, for example, mill certificates, productions records, invoices, etc.) for the later of (1) a period of five years from the date of entry or (2) a period of three years after the conclusion of any litigation in the United States courts regarding such entries;
• I understand that {IMPORTING COMPANY}is required to provide this certification and supporting records, upon request, to U.S. Customs and Border Protection (CBP) and/or the Department of Commerce (Commerce);
• I understand that {IMPORTING COMPANY} is required to maintain a copy of the exporter's certification, (attesting to the production and/or export of the imported merchandise identified above), for the later of (1) a period of five years from the date of entry or (2) a period of three years after the conclusion of any litigation in United States courts regarding such entries;
• I understand that {IMPORTING COMPANY}is required to maintain and provide a copy of the exporter's certification and supporting records, upon request, to CBP and/or Commerce;
• I understand that the claims made herein, and the substantiating documentation, are subject to verification by CBP and/or Commerce;
• I understand that failure to maintain the required certification and/or failure to substantiate the claims made herein will result in:
• suspension of liquidation of all unliquidated entries (and entries for which liquidation has not become final) for which these requirements were not met; and
• the requirement that the importer post applicable antidumping duty (AD) and/or countervailing duty (CVD) cash deposits (as appropriate) equal to the rates determined by Commerce;
• I understand that agents of the importer, such as brokers, are not permitted to make this certification;
• This certification was completed by the time of filing the entry summary; and
• I am aware that U.S. law (including, but not limited to, 18 U.S.C. §1001) imposes criminal sanctions on individuals who knowingly and willfully make material false statements to the U.S. government.

Signature

NAME OF COMPANY OFFICIAL

TITLE

DATE

6b. EXPORTER CERTIFICATION

I hereby certify that:

• My name is {COMPANY OFFICIAL'S NAME HERE} and I am an official of {NAME OF EXPORTING COMPANY};
• I have direct personal knowledge of the facts regarding the production and exportation of the carbon steel butt-weld pipe fittings identified below. ¬¬“Direct personal knowledge” refers to facts the certifying party is expected to have in its own books and records. For example, an exporter should have “direct personal knowledge” of the producer's identity and location;
• These carbon steel butt-weld pipe fittings completed in Malaysia do not contain finished or unfinished butt-weld pipe fittings manufactured in the People's Republic of China;
• I understand that {NAME OF EXPORTING COMPANY} is required to maintain a copy of this certification and sufficient documentation supporting this certification (i.e., documents maintained in the normal course of business, or documents obtained by the certifying party, for example, mill certificates, productions records, invoices, etc.) for the later of (1) a period of five years from the date of entry or (2) a period of three years after the conclusion of any litigation in the United States courts regarding such entries;
• I understand that {NAME OF EXPORTING COMPANY} must provide this Exporter Certification to the U.S. importer by the time of shipment. I understand that {NAME OF EXPORTING COMPANY} is required to provide a copy of this certification and supporting records, upon request, to U.S. Customs and Border Protection (CBP) and/or the Department of Commerce (Commerce);
• I understand that the claims made herein, and the substantiating documentation, are subject to verification by CBP and/or Commerce;
• I understand that failure to maintain the required certification and/or failure to substantiate the claims made herein will result in:
• suspension of all unliquidated entries (and entries for which liquidation has not become final) for which these requirements were not met; and
• the requirement that the importer post applicable antidumping duty (AD) and/or countervailing duty (CVD) cash deposits (as appropriate) equal to the rates as determined by Commerce;
• This certification was completed at or prior to the time of shipment; and
• I am aware that U.S. law (including, but not limited to, 18 U.S.C. §1001) imposes criminal sanctions on individuals who knowingly and willfully make material false statements to the U.S. government.

Signature

NAME OF COMPANY OFFICIAL

TITLE

DATE

7. If there are any questions by the importing public regarding this message, please contact the Call Center for the Office of AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, at (202) 482-0984. CBP ports should submit their inquiries through authorized CBP channels only. (This message was generated by OV:JH.)

8. There are no restrictions on the release of this information.

Alexander Amdur